@DavidB @cjd >Creating money for that purpose would not be inflationary in this case.
In the modern post Keynesian view, it would not, but actual reality it would. It's worth noting that even without borrowing or any sort of interjection from government or other relief groups, natural market forces would drive demand/price up for necessary construction goods and services. If the lumber yards sell out and need wood and supplies ASAP, they'll pay extra for shipping and cut to the front of the line for $ (long before they sell out, of course). The increased cost in the short term will lead to increased intermediate term housing costs, and wages may increase if there's a labor demand in construction services. It doesn't take too long to figure out how that ripples through the local and regional economy. Elasticity exists, but enough wealth transference likely took place to potentially control at least some areas of the market economy directly impacted and force some longer term inflation.