House committee substitute makes the following changes to the 2nd edition. Deletes the contents of the previous edition and replaces it with the following.

Provides that if S257 (Appropriations act of 2017) of the 2017 Regular Session becomes law, then $100 million reserved as Supplemental Disaster Recover Funds will be allocated as follows: (1) $25 million to specified agencies and entities in specified amounts for housing related matters; (2) $30 million to Golden L.E.A.F. to provide grants to local governments and nonprofits for assistance and relief from Hurricane Matthew, the western wildfires, and Tropical Storms Julia and Hermine, requiring that the funds be used for specified infrastructure purposes; (3) $20 million to the Department of Agriculture and Consumer Services, Divisions of Soil and Water Conservation for stream debris removal and nonfield farm road repairs and for supplemental funding of the Agricultural Water Resources Assistance Program to support disaster-related farm pond and dam repairs; these funds apply to 20 counties in western North Carolina that have been declared a federal disaster due to prolonged drought; (4) $2.7 million to the Community College System Office for 2017-18, to be transferred into a budget stabilization reserve to be used to offset the impact of community college enrollment declines related to Hurricane Matthew; and (5) $22.3 million to the State Emergency Response and Disaster Relief Fund to provide the State match for federal disaster assistance programs. These funds remain available to implement the provisions of this act until the General Assembly directs the reversion of any unexpended and unencumbered funds. Exempts these funds from GS 143C‑6‑23(f1)(1) (which requires a grantee or subgrantee to return to the State all affected grant funds and interest earned on those funds if the funds are in the possession or control of a grantee and are not expended, made subject to an encumbrance, or disbursed to a subgrantee by August 31 immediately following the fiscal year in which the funds are appropriated by the General Assembly, or a different period set forth in the terms of the applicable appropriation or federal grant).

Specifies that the act applies to counties in the State that were: (1) declared a major disaster by the President of the United States under the Stafford Act (P.L. 93‑288) as a result of Hurricane Matthew, wildfires in the western part of the State, Tropical Storm Julia, or Tropical Storm Hermine or (2) part of the emergency area set forth in any of the following gubernatorial executive orders: Executive Order No. 97 (September 1, 2016), Executive Order No. 103 (September 22, 2016), Executive Order No. 107 (October 3, 2016), Executive Order No. 115 (November 16, 2016), or Executive Order No. 116.

Specifies the following actions and policies that are to be taken to implement the act. Allows the Governor to establish personnel positions to implement this act as well as advisory councils to advise relevant State agencies on hurricane relief and recovery efforts and to ensure input from representatives of affected communities and groups. Provides that if a person's home is relocated or purchased with funds from the Hazard Mitigation Grant Program or the State Acquisition and Relocation Fund, the State Emergency Response and Disaster Relief Fund is subrogated to the person's rights under any insurance coverage for the damage to the home and any monies received from the insurance coverage must be paid to the State Emergency Response and Disaster Relief Fund. States the General Assembly's intent to continue to review the funds appropriated by Congress and to consider actions needed to address any remaining unmet needs and to review the adequacy of the measures funded in this act and SL 2016‑124. Prohibits expending State funds appropriated in this act for the construction of any new residence within the 100‑year floodplain unless the construction is in an area regulated by a unit of local government pursuant to a floodplain management ordinance and the construction complies with the ordinance. Requires homeowners in the 100‑year floodplain who receive homeowner's housing assistance pursuant to this act to have federal flood insurance, if available, as a precondition to receipt of State homeowner's housing assistance for losses resulting from future flooding.

Prohibits the Governor from using the funds described in this act to make budget adjustments under GS 143C‑6‑4 (budget adjustments authorized) or to make reallocations under GS 166A‑19.40(c) (which allows the Governor to reallocate other funds as may reasonably be available within the appropriations of the various departments when the specified emergency-related conditions are satisfied). Requires the Governor to ensure that funds allocated in this act are expended in a manner that does not adversely affect any person's or entity's eligibility for federal funds that are made available, or that are anticipated to be made available, as a result of Hurricane Matthew, the western North Carolina wildfires, or Tropical Storms Julia and Hermine. Requires the Governor, to the extent practicable, to avoid using State funds to cover costs that will be, or likely will be, covered by federal funds.

Requires the Office of State Budget and Management to report monthly to the chairs of the House of Representatives and Senate Appropriations Committees and to the Fiscal Research Division of the General Assembly on the implementation and provide any additional reports or information requested by the Fiscal Research Division. Specifies what is to be included in each report.

Makes conforming changes to the act's short and long titles.