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provided are based on the 2011 QC ACTION: Notice. recovery, restoration of infrastructure survey. The proposed surveys will and housing, and economic SUMMARY: This Notice advises the public continue to make use of Computer revitalization in the most impacted and of a second allocation of Community Assisted Interviewing (CAI) distressed areas resulting from a major Development Block Grant disaster questionnaires and equipment, which disaster declared pursuant to the Robert are being used in part because they recovery (CDBG–DR) funds appropriated by the Disaster Relief T. Stafford Disaster Relief and reduce interview times. The software Emergency Assistance Act of 1974 (42 also provides for consistency check and Appropriations Act, 2013 (Pub. L. 113– 2) for the purpose of assisting recovery U.S.C. 5121 et seq.) (Stafford Act), due ensures that all needed data have been to Hurricane Sandy and other eligible collected, thereby reducing the need for in the most impacted and distressed events in calendar years 2011, 2012, and the follow-up contacts. areas identified in major disaster declarations due to Hurricane Sandy 2013. The law provides that funds shall B. Solicitation of Public Comment and other eligible events in calendar be awarded directly to a State or unit of This notice is soliciting comments years 2011, 2012 and 2013. This general local government (UGLG) from members of the public and affected allocation provides $5.1 billion (hereafter local government) at the parties concerning the collection of primarily to assist Hurricane Sandy discretion of the Secretary. Unless noted information described in Section A on recovery as well as recovery from otherwise, the term ‘‘grantee’’ refers to the following: Hurricane Irene and Tropical Storm Lee. any jurisdiction receiving a direct award (1) Whether the proposed collection The Notice also establishes from HUD under this Notice. of information is necessary for the requirements governing the use of these On 1, 2013, the President proper performance of the functions of funds. issued a sequestration order pursuant to the agency, including whether the DATES: Effective Date: , section 251A of the Balanced Budget information will have practical utility; 2013. (2) The accuracy of the agency’s and Emergency Deficit Control Act, as FOR FURTHER INFORMATION CONTACT: Stan estimate of the burden of the proposed amended (2 U.S.C. 901a), and reduced collection of information; (3) Ways to Gimont, Director, Office of Block Grant funding for CDBG–DR grants under the enhance the quality, utility, and clarity Assistance, Department of Housing and Appropriations Act to $15.18 billion. of the information to be collected; and Urban Development, 451 7th Street SW., Through a Federal Register Notice (4) Ways to minimize the burden of the Room 7286, Washington, DC 20410, published , 2013, the collection of information on those who telephone number 202–708–3587. Department allocated $5.4 billion for the are to respond; including through the Persons with hearing or speech areas most impacted by Hurricane use of appropriate automated collection impairments access this number Sandy (78 FR 14329). Subsequent techniques or other forms of information via TTY by calling the Federal Relay notices allocated funds for major Service at 800–877–8339. Facsimile technology, e.g., permitting electronic disasters occurring in 2011 and 2012 inquiries may be sent to Mr. Gimont at submission of responses. HUD (excluding Hurricane Sandy) and a 202–401–2044. (Except for the ‘‘800’’ encourages interested parties to submit future notice will address funding for comment in response to these questions. number, these telephone numbers are not toll-free.) Email inquiries may be qualifying major disasters occurring in Authority: Section 3507 of the Paperwork sent to [email protected]. 2013. Reduction Act of 1995, 44 U.S.C. Chapters To comply with statutory direction 35. SUPPLEMENTARY INFORMATION: that funds be used for disaster-related Dated: , 2013. Table of Contents expenses in the most impacted and Colette Pollard, I. Allocation and Related Information distressed areas, HUD computes Department Reports Management Officer, II. Use of Funds allocations based on the best available Office of the Chief Information Officer. III. Timely Expenditure data that cover all the eligible affected [FR Doc. 2013–27504 Filed 11–15–13; 8:45 am] IV. Grant Amendment Process V. Authority To Grant Waivers areas. The initial allocation to Hurricane BILLING CODE 4210–67–P VI. Applicable Rules, Statutes, Waivers, and Sandy grantees was based on unmet Alternative Requirements housing and economic revitalization VII. Mitigation and Resilience Methods, DEPARTMENT OF HOUSING AND needs. The data used to calculate the Policies, and Procedures allocation did not include unmet URBAN DEVELOPMENT VIII. Catalog of Federal Domestic Assistance infrastructure restoration needs as [Docket No. FR–5696–N–06] IX. Finding of No Significant Impact Appendix A: Allocation Methodology damage estimates were preliminary at that time. As more data regarding unmet Second Allocation, Waivers, and I. Allocation and Related Information Alternative Requirements for Grantees infrastructure needs are now available, Receiving Community Development The Disaster Relief Appropriations this Notice provides the following Block Grant (CDBG) Disaster Recovery Act, 2013 (Pub. L. 113–2, approved Round 2 awards totaling $5.1 billion: Funds in Response to Hurricane Sandy 29, 2013) (Appropriations Act) made available $16 billion in AGENCY: Office of the Assistant Community Development Block Grant Secretary for Community Planning and (CDBG) funds for necessary expenses Development, HUD. related to disaster relief, long-term

TABLE 1—HURRICANE SANDY ALLOCATIONS

Grantee Second allocation First allocation Total

New York City ...... $1,447,000,000 $1,772,820,000 $3,219,820,000 New Jersey ...... 1,463,000,000 1,829,520,000 3,292,520,000 New York State ...... 2,097,000,000 1,713,960,000 3,810,960,000

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TABLE 1—HURRICANE SANDY ALLOCATIONS—Continued

Grantee Second allocation First allocation Total

Connecticut ...... 66,000,000 71,820,000 137,820,000 ...... 20,000,000 8,640,000 28,640,000 Rhode Island ...... 16,000,000 3,240,000 19,240,000

Total ...... 5,109,000,000 5,400,000,000 10,509,000,000

To ensure funds provided under this New York City). State grantees may affected Most Impacted and Distressed Notice address unmet needs within the expend funds in any county that counties. The opportunity for certain ‘‘most impacted and distressed’’ received a Presidential disaster grantees to expend 20 percent of their counties, each local government declaration in 2011, 2012, or 2013 allocations outside the most impacted receiving a direct award under this subject to the limitations described in and distressed counties identified by Notice must expend its entire CDBG–DR Table 2. HUD enables those grantees to respond award within its jurisdiction (e.g., New Table 2 identifies a minimum to highly localized distress identified York City must expend all funds within percentage that must be spent in the via their own data. HUD-identified Hurricane Sandy

TABLE 2—MOST IMPACTED AND DISTRESSED COUNTIES WITHIN WHICH FUNDS MAY BE EXPENDED

Minimum percentage Counties from the following major that must be expended Grantee declared disasters are eligible for Hurricane Sandy most impacted and distressed counties in Hurricane Sandy most CDBG–DR funds impacted and distressed (FEMA declaration No.) counties

New York City All Counties ...... All Counties ...... 100 New York...... 1957, 1993, 4020, 4031, 4085, Nassau, Rockland, Suffolk, Westchester, and all Counties in 80 4111, 4129. New York City (Bronx, Kings, New York, Queens, Rich- mond). New Jersey..... 1954, 4021, 4033, 4039, 4048, Atlantic, Bergen, Cape May, Essex, Hudson, Middlesex, 80 4070, 4086. Monmouth, Ocean, Union. Connecticut ..... 1958, 4023, 4046, 4087, 4106 ...... Fairfield, New Haven ...... 80 Rhode Island ... 4027, 4089, 4107 ...... Washington ...... 80 Maryland ...... 4034, 4038, 4075, 4091 ...... Somerset ...... 80

This Notice builds upon the Rebuilding Strategy released by the Task planning to promote regional resilience requirements of the Federal Register Force on 19, 2013 and Rebuild as part of the recovery effort. Notices published by the Department on by Design (RBD), an initiative of the The Appropriations Act requires that March 5, 2013 (78 FR 14329), 19, Hurricane Sandy Rebuilding Task Force prior to the obligation of CDBG–DR 2013 (78 FR 23578) and , 2013 and HUD. RBD is aimed at addressing funds, a grantee shall submit a plan (78 FR 46999), referred to collectively in structural and environmental detailing the proposed use of funds, this Notice as the ‘‘Prior Notices.’’ The vulnerabilities that Hurricane Sandy including criteria for eligibility and how Prior Notices are available at: exposed in communities throughout the the use of these funds will address http://www.gpo.gov/fdsys/pkg/FR-2013- region and developing fundable disaster relief, long-term recovery, 03-05/pdf/2013-05170.pdf solutions to better protect residents from restoration of infrastructure and housing http://www.gpo.gov/fdsys/pkg/FR-2013- future disasters. The Rebuilding and economic revitalization in the most 04-19/pdf/2013-09228.pdf Strategy and information about RBD can impacted and distressed areas. In an http://www.gpo.gov/fdsys/pkg/FR-2013- be found, respectively, at: Action Plan for Disaster Recovery 08-02/pdf/2013-18643.pdf http://portal.hud.gov/hudportal/ (Action Plan), grantees must describe Executive Order 13632, published at documents/huddoc?id=HSRebuilding uses and activities that: (1) Are 77 FR 74341, established the Hurricane Strategy.pdf authorized under title I of the Housing Sandy Rebuilding Task Force, to ensure http://www.rebuildbydesign.org/what-is- and Community Development Act of government-wide and region-wide rebuild-by-design/ 1974 (42 U.S.C. 5301 et seq.) (HCD Act) or allowed by a waiver or alternative coordination to help communities as II. Use of Funds they are making decisions about long- requirement published in this Notice term rebuilding and to develop a The Appropriations Act requires and the prior Notices; and (2) respond comprehensive rebuilding strategy. funds to be used only for specific to a disaster-related impact. HUD has Section 5(b) of Executive Order 13632 disaster recovery related purposes. previously approved an Action Plan for requires that HUD, ‘‘as appropriate and Consistent with the Rebuilding Strategy, each grantee receiving an allocation of to the extent permitted by law, align it is essential to build back stronger and funds in this Notice. Grantees are now [the Department’s] relevant programs more resilient. This allocation provides directed to submit a substantial Action and authorities’’ with the Hurricane additional funds to Sandy-impacted Plan Amendment in order to access Sandy Rebuilding Strategy (the grantees to support investments in funds provided in this Notice. For more Rebuilding Strategy). Accordingly, this mitigation and resilience and directs guidance on requirements for Notice is further informed by both the grantees to undertake comprehensive substantial Action Plan Amendments,

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please see Sections IV and VI of this Treasury, or if before 30, • The grantee may draw down funds Notice. 2017, will be recaptured by HUD. from the line of credit after the Responsible Entity completes applicable As provided by the HCD Act, funds IV. Grant Amendment Process may be used as a matching requirement, environmental review(s) pursuant to 24 share, or contribution for any other To access funds allocated by this CFR part 58 (or paragraph A.20 under federal program when used to carry out Notice grantees must submit a section VI of the March 5, 2013 Notice) an eligible CDBG–DR activity. However, substantial Action Plan Amendment to and, as applicable, receives from HUD pursuant to the requirements of the their approved Action Plan. Any or the state an approved Request for Appropriations Act, CDBG–DR funds substantial Action Plan Amendment Release of Funds and certification; • may not be used for expenses submitted after the effective date of this Grantee amends its published reimbursable by, or for which funds are Notice is subject to the following Action Plan to include its projection of requirements: expenditures and outcomes within 90 made available by FEMA or the United • States Army Corps of Engineers Grantee consults with affected days of the Action Plan Amendment (USACE). citizens, stakeholders, local approval as provided for in paragraph Consistent with the allocation governments and public housing (3)(g) of Section VI of this Notice; and • Grantee updates its full methodology in Appendix A of the authorities to determine updates to its consolidated plan to reflect disaster- Notice, the State of New York must needs assessment; in addition, grantee related needs no later than its Fiscal either ensure that: (1) A portion of its prepares a comprehensive risk analysis Year 2015 consolidated plan update. allocation is used to address resiliency (see section VI(2)(d) of this Notice); • Grantee amends its citizen and local cost share requirements for V. Authority To Grant Waivers participation plan to reflect the damage to both the Metropolitan requirements of this Notice (e.g., new The Appropriations Act authorizes Transportation Authority infrastructure requirement for a public hearing); the Secretary to waive, or specify in New York City and the Port Authority • Grantee publishes a substantial alternative requirements for, any of New York and New Jersey; or (2) amendment to its previously approved provision of any statute or regulation must demonstrate that such resiliency Action Plan for Disaster Recovery on the that the Secretary administers in needs and local cost share has otherwise grantee’s official Web site for no less connection with HUD’s obligation or been met. The State of New Jersey must than 30 calendar days and holds at least use by the recipient of these funds undertake one of the same actions with one public hearing to solicit public (except for requirements related to fair regard to the Port Authority. New York comment; housing, nondiscrimination, labor City must review the methodology to • Grantee responds to public standards, and the environment). inform an analysis to address the comment and submits its substantial Waivers and alternative requirements recovery and resilience needs of the Action Plan Amendment to HUD (with are based upon a determination by the New York City Housing Authority any additional certifications required by Secretary that good cause exists and that (NYCHA). this Notice) no later than 120 days after the waiver or alternative requirement is III. Timely Expenditure of Funds the effective date of this Notice; not inconsistent with the overall • HUD reviews the substantial Action purposes of title I of the HCD Act. The Appropriations Act requires that Plan Amendment within 60 days from Regulatory waiver authority is also funds be expended within two years of date of receipt and approves the provided by 24 CFR 5.110, 91.600, and the date HUD obligates funds to a Amendment according to criteria 570.5. grantee and funds are obligated to a identified in the Prior Notices and this VI. Applicable Rules, Statutes, Waivers, grantee upon HUD’s signing of a Notice; grantee’s CDBG–DR grant agreement. In • HUD sends an Action Plan and Alternative Requirements its Action Plan, a grantee must Amendment approval letter, revised This section of the Notice describes demonstrate how funds will be fully grant conditions (may not be applicable requirements imposed by the expended within two years of obligation to all grantees), and an amended Appropriations Act, as well as and HUD must obligate all funds not unsigned grant agreement to the grantee. applicable waivers and alternative later than , 2017. For any If the substantial Amendment is not requirements. For each waiver and funds that the grantee believes will not approved, a letter will be sent alternative requirement described in be expended by the deadline and that it identifying its deficiencies; the grantee this Notice, the Secretary has desires to retain, the grantee must must then re-submit the Amendment determined that good cause exists and submit a letter to HUD not less than 30 within 45 days of the notification letter; the action is not inconsistent with the days in advance justifying why it is • Grantee ensures that the HUD- overall purpose of the HCD Act. The necessary to extend the deadline for a approved substantial Action Plan following requirements apply only to specific portion of funds. The letter Amendment (and updated Action Plan) the CDBG–DR funds appropriated in the must detail the compelling legal, policy, is posted on its official Web site; Appropriations Act. or operational challenges for any such • Grantee signs and returns the grant Grantees may request additional waiver, and must also identify the date agreement; waivers and alternative requirements to by when the specified portion of funds • HUD signs the grant agreement and address specific needs related to their will be expended. The Office of revises the grantee’s line of credit recovery activities. Except where noted, Management and Budget has provided amount (this triggers the two year waivers and alternative requirements HUD with authority to act on grantee expenditure deadline for any funds described below apply to all grantees waiver requests but grantees are obligated by this grant agreement); under this Notice. Under the cautioned that such waivers may not be • If it has not already done so, grantee requirements of the Appropriations Act, approved. Approved waivers will be enters the activities from its published regulatory waivers are effective five published in the Federal Register. Action Plan Amendment into the days after publication in the Federal Funds remaining in the grantee’s line of Disaster Recovery Grant Reporting Register. credit at the time of its expenditure (DRGR) system and submits it to HUD 1. Incorporation of general deadline will be returned to the U.S. within the system; requirements, waivers, alternative

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requirements, and statutory changes Environmental Policy Act (NEPA) at 40 surrounding communities; and impacts previously described. Grantees are CFR part 1508 and 24 CFR Part 58. on and from other infrastructure advised that general requirements, Further, consistent with HUD’s NEPA systems. The analyses should, wherever waivers and alternative requirements implementing requirements at 24 CFR possible, include both quantitative and provided for and subsequently clarified 58.32(a), in responding to the qualitative measures and recognize the or modified in the Prior Notices, apply requirements of this Notice, a grantee inherent uncertainty in predictive to all funds under this Notice, except as must group together and evaluate as a analysis. Grantees should work with modified herein. These waivers and single infrastructure project all other grantees to undertake regional risk alternative requirements provide individual activities which are related baseline analyses, to improve additional flexibility in program design to one another, either on a geographical consistency and cost-effectiveness. and implementation to support resilient or functional basis, or are logical parts The description of the comprehensive recovery following Hurricane Sandy, of a composite of contemplated risk analysis must be sufficient for HUD while also ensuring that statutory infrastructure-related actions. to determine if the analysis meets the requirements unique to the (2) Related Infrastructure Project: requirements of this Notice. Appropriations Act are met. Waivers or Consistent with 40 CFR part 1508, e. Resilience Performance Standards. alternative requirements previously infrastructure projects are ‘‘related’’ if Using the guidelines in the Rebuilding issued pursuant to specific grantee they automatically trigger other projects Strategy, grantees are required to requests remain in effect under their or actions, cannot or will not proceed identify and implement resilience initial terms. unless other projects or actions are performance standards that can be 2. Action Plan for Disaster Recovery taken previously or simultaneously, or applied to each infrastructure project. waiver and alternative requirement— are interdependent parts of a larger The grantee must describe its plans for Infrastructure Programs and Projects. action and depend on the larger action the development and application of Grantees are advised that HUD will for their justification. resilience performance standards in any assess the adequacy of a grantee’s c. Impact and Unmet Needs Action Plan Amendment submitted response to each of the elements Assessment. The March 5, 2013 Notice pursuant to this Notice. outlined in this subsection as a basis for required grantees to consult with f. Green Infrastructure Projects or the approval of a substantial Action affected citizens, stakeholders, local Activities. In any Action Plan Plan Amendment that includes governments and public housing Amendment submitted pursuant to this infrastructure programs and projects. authorities to determine the impact of Notice, each grantee must describe its However, grantees need not resubmit Hurricane Sandy and any unmet process for the selection and design of responses to elements approved by HUD disaster recovery needs. Grantees are green infrastructure projects or unless warranted by changing required to update their impact and activities, and/or how selected projects conditions or if project-specific analysis unmet needs assessments to address or activities will incorporate green is required. infrastructure projects, or any other infrastructure components. For the Section VI(A)(1) of the March 5, 2013 projects or activities not previously purposes of this Notice, green Notice (‘‘Action Plan for Disaster considered, but for which an unmet infrastructure is defined as the Recovery waiver and alternative need has become apparent. integration of natural systems and requirement’’), as amended by the April d. Comprehensive Risk Analysis. Each processes, or engineered systems that 19, 2013 Notice, is modified to require: grantee must describe the science-based mimic natural systems and processes, a. Applicability. The following risk analysis it has or will employ to into investments in resilient guidance and criteria are applicable to select, prioritize, implement, and infrastructure. Green infrastructure all infrastructure programs and projects maintain infrastructure projects or takes advantage of the services and in an Action Plan Amendment activities. At a minimum, the grantee’s natural defenses provided by land and submitted to HUD after the effective analysis must consider a broad range of water systems such as wetlands, natural date of this Notice. Infrastructure information and best available data, areas, vegetation, sand dunes, and programs and projects funded pursuant including forward-looking analyses of forests, while contributing to the health to the Prior Notices and submitted in an risks to infrastructure sectors from and quality of life of those in recovering Action Plan Amendment after the climate change and other hazards, such communities. effective date of this Notice are also as the Northeast United States Regional In addition, the HCD Act authorizes subject to these requirements. The Climate Trends and Scenarios from the public facilities activities that may following guidance and criteria are U.S. National Climate Assessment, the include green infrastructure approaches based on recommendations of the Sea Level Rise Tool for Sandy Recovery, that restore degraded or lost natural Rebuilding Strategy. or comparable peer-reviewed systems (e.g., wetlands and sand dunes b. Definition of an Infrastructure information, as well as the regional ecosystems) and other shoreline areas to Project and Related Infrastructure analysis developed in Phase 2 of the enhance storm protection and reap the Projects. Rebuild by Design competition. The many benefits that are provided by these (1) Infrastructure Project: For grantee should also consider costs and systems. Protecting, retaining, and purposes of this Notice, an benefits of alternative investment enhancing natural defenses should be infrastructure project is defined as an strategies, including green infrastructure considered as part of any coastal activity, or a group of related activities, options. In addition, the grantee should resilience strategy. designed by the grantee to accomplish, include, to the extent feasible and g. Additional Requirements for Major in whole or in part, a specific objective appropriate, public health and safety Infrastructure Projects. Action Plan related to critical infrastructure sectors impacts; direct and indirect economic Amendments that propose a major such as energy, communications, water impacts; social impacts; environmental infrastructure project will not be and wastewater systems, and impacts; cascading impacts and approved unless the project meets the transportation, as well as other support interdependencies within and across criteria of this Notice. HUD approval is measures such as flood control. This communities and infrastructure sectors; required for each major infrastructure definition is rooted in the implementing changes to climate and development project with such projects defined as regulations of the National patterns that could affect the project or having a total cost of $50 million or

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more (including at least $10 million of Covered Projects, including how it will describe how they will address the CDBG–DR funds), or benefits multiple reflect changing environmental rehabilitation, mitigation and new counties. Additionally, two or more conditions (such as sea level rise or construction needs of other assisted related infrastructure projects that have development patterns) with risk multifamily housing developments a combined total cost of $50 million or management tools, and/or alter funding impacted by the disaster, including more (including at least $10 million of sources if necessary. HUD-assisted multifamily housing, low CDBG–DR funds) must be designated as (5) Environmentally Sustainable and income housing tax credit (LIHTC) major infrastructure projects. Projects Innovative Investments. A description of financed developments and other encompassed by this paragraph are how the Covered Project(s) will align subsidized and tax credit-assisted herein referred to as ‘‘Covered Projects.’’ with the commitment expressed in the affordable housing. For CDBG DR Prior to funding a Covered Project, the President’s Climate Action Plan to purposes, HUD-assisted multifamily grantee must incorporate each of the ‘‘identify and evaluate additional housing continues to be defined by following elements into its Action Plan approaches to improve our natural paragraph VI.A.1.a. (1) of the March 5, (i.e., via a substantial Action Plan defenses against extreme weather, 2013 Notice at 78 FR 14332. Grantees Amendment): protect biodiversity, and conserve should focus on protecting vulnerable (1) Identification/Description. A natural resources in the face of a residents and should consider measures description of the Covered Project, changing climate . . .’’ to protect vital infrastructure (e.g., including: Total project cost (illustrating h. HUD Review of Covered Projects. HVAC and electrical equipment) from both the CDBG–DR award as well as HUD may disapprove any Action Plan flooding. Grantees are strongly other federal resources for the project, Amendment that proposes a Covered encouraged to provide assistance to such as funding provided by the Project that does not meet the above PHAs and other assisted and subsidized Department of Transportation or criteria. In the course of reviewing an multifamily housing to help them FEMA), CDBG eligibility (i.e., a citation Action Plan Amendment, HUD will elevate critical infrastructure and to the HCD Act, applicable Federal advise grantees of the deficiency of a rebuild to model resilient building Register notice, or a CDBG regulation), Covered Project, and grantees must standards. Examples of such standards how it will meet a national objective, revise their plans accordingly to secure include the I-Codes developed by the and the project’s connection to HUD approval. In making its decision, International Code Council (ICC), the Hurricane Sandy or other disasters cited HUD will consider input from other Insurance Institute for Business and in this Notice. relevant federal agencies. Each grantee Home Safety (IBHS) FORTIFIED home (2) Use of Impact and Unmet Needs is encouraged to consult with the programs, and standards under Assessment, the Comprehensive Risk Regional Coordination Working Group development by the American National Analysis and the Rebuild by Design prior to the inclusion of a Covered Standards Institute (ANSI) and the Collaborative Risk Analysis. A Project in its Action Plan. HUD will also American Society of Civil Engineers description of how the Covered Project submit any Covered Project(s) identified (ASCE). is supported by the grantee’s updated in an Action Plan to the Regional b. Liquid Fuel Supply Chain impact and unmet needs assessment, as Coordination Working Group for Assistance. The March 5, 2013 Notice, well as the grantee’s comprehensive risk comment, and will consider the group’s paragraph (d)(3) at 78 FR 14335, and analysis. views prior to approval or disapproval paragraph 41 at 78 FR 14347, are The grantee must describe how of the project(s). Consistent with the amended, as necessary, to require the Covered Projects address the risks, gaps, Rebuilding Strategy Infrastructure following: If a grantee provides CDBG– and vulnerabilities in the region as Resilience Guidelines, the goal of this DR assistance to a small business in the identified by the comprehensive risk coordination effort is to promote a liquid fuel supply chain, the award analysis. Grantees must also describe regional and cross-jurisdictional agreement must require the adoption of how the collaborative risk analysis approach to resilience in which measures to mitigate impacts to the developed through the Rebuild by neighboring communities and states liquid fuel supply chain during future Design initiative has been or will be come together to: identify disasters. Risk mitigation measures used for the evaluation of Covered interdependencies among and across should include processes or methods to Projects. geography and infrastructure systems; ensure that fueling stations along (3) Transparent and Inclusive compound individual investments critical evacuation routes remain Decision Processes. A description of the towards shared goals; foster leadership; functional, or quickly restore transparent and inclusive processes that build capacity; and share information functionality, during power outages. have been or will be used in the and best practices on infrastructure This requirement applies to any small selection of a Covered Project(s), resilience. business in the liquid fuel supply chain including accessible public hearings 3. Action Plan for Disaster Recovery that applies for CDBG–DR assistance and other processes to advance the waiver and alternative requirement— after the effective date of this Notice. engagement of vulnerable populations. Housing, Business Assistance, and Grantees are reminded that pursuant to Grantees should demonstrate the General Requirements. The Prior the March 5, 2013 Notice, grantees are sharing of decision criteria, the method Notices are modified as follows: prohibited from assisting businesses, of evaluating a project(s), and how all a. Public and assisted multifamily including private utilities, that do not project stakeholders and interested housing. In the March 5, 2013 Notice, meet the definition of a small business parties were or are to be included to paragraph 1(a)(6) at 78 FR 14334, as defined by SBA at 13 CFR part 121 ensure transparency including, as grantees were required to describe how and as further modified by this Notice. appropriate, stakeholders and parties funds would be used to address the Please review the modified definition of with an interest in environmental rehabilitation, mitigation and new a small business in paragraph 10 of this justice or accessibility. construction needs of each impacted section of the Notice, particularly with (4) Long-Term Efficacy and Fiscal Public Housing Authority (PHA) within regard to businesses covered by this Sustainability. A description of how the its jurisdiction. In addition to this section. grantee plans to monitor and evaluate continuing requirement for PHAs, c. Certification of proficient controls, the efficacy and sustainability of grantees under this Notice must now processes and procedures. The

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Appropriations Act requires the f. HUD Review/Approval. Consistent the submission of written comments Secretary to certify, in advance of with the requirements of section 105(c) concerning the Action Plan signing a grant agreement, that the of the Cranston-Gonzalez National Amendment. grantee has in place proficient financial Affordable Housing Act, HUD will The grantee must continue to make controls and procurement processes and review each grantee’s substantial Action the Action Plan, any amendments, and has established adequate procedures to Plan Amendment within 60 days from all performance reports available to the prevent any duplication of benefits as the date of receipt. This timeframe public on its Web site and on request defined by section 312 of the Stafford allows HUD’s federal partners to view and the grantee must make these Act, ensure timely expenditure of funds, the Amendment and provide feedback. documents available in a form maintain comprehensive Web sites The Secretary may disapprove an accessible to persons with disabilities regarding all disaster recovery activities Amendment if it is determined that it and persons of limited English assisted with these funds, and detect does not meet the requirements of the proficiency, in accordance with the and prevent waste, fraud, and abuse of Prior Notices, as amended by this requirements of the March 5, 2013 funds. Grantees submitted this Notice. Once an Amendment is Notice. Grantees are also encouraged to certification pursuant to paragraph approved, HUD will issue a revised outreach to local nonprofit and civic VI.E.42(q) of the March 5, 2013 Notice. grant agreement to the grantee. organizations to disseminate substantial In any Action Plan Amendment g. Projection of expenditures and Action Plan Amendments submitted submitted after the effective date of this outcomes. Paragraph 1(l) at 78 FR 14337 after the effective date of this Notice. Notice, grantees are required to identify of the March 5, 2013 Notice is amended, During the term of the grant, the grantee any material changes in its processes or as necessary, to require each grantee to must provide citizens, affected local procedures that could potentially amend its Action Plan to update its governments, and other interested impact the Secretary’s or the grantee’s projection of expenditures and parties with reasonable and timely prior certification. Grantees are advised outcomes within 90 days of its Action access to information and records that HUD may revisit any prior Plan Amendment approval. The relating to the Action Plan and to the certification based on a review of an projections must be based on each grantee’s use of grant funds. This Action Plan Amendment submitted for quarter’s expected performance— objective should be achieved through this allocation of funds, as well as beginning the quarter funds are effective use of the grantee’s monitoring reports, audits by HUD’s available to the grantee and continuing comprehensive Web site mandated by Office of the Inspector General, citizen each quarter until all funds are the Appropriations Act. expended. Projections should include complaints or other sources of 5. Reimbursement of disaster recovery the entire amount allocated by this information. As a result of HUD’s expenses. In addition to pre-award Notice. Amending the Action Plan to review, the grantee may be required to requirements described in the March 5, accommodate these changes is not submit additional documentation or 2013 Notice, grantees are subject to considered a substantial amendment. take appropriate actions to sustain the HUD’s guidance issued 30, 2013— Guidance on preparing the projections certification. ‘‘Guidance for Charging Pre-Award is available on HUD’s Web site at: d. Certification of Resilience Costs of Homeowners, Businesses, and http://portal.hud.gov/hudportal/ Standards. Paragraph 42 at 78 FR 14347 Other Qualifying Entities to CDBG HUD?src=/program_offices/comm_ Disaster Recovery Grants’’ (CPD Notice of the March 5, 2013 Notice is amended planning/communitydevelopment/ to additionally require the grantee to programs/drsi/afwa. 2013–05). The CPD Notice is available certify that it will apply the resilience 4. Citizen participation waiver and on the CPD Disaster Recovery Web site standards required in section VI (2)(e) of at: http://portal.hud.gov/hudportal/ alternative requirement. Paragraph 3 at _ _ this Notice. 78 FR 14338 of the March 5, 2013 documents/huddoc?id=cdbg preaward e. Amending the Action Plan. Notice is modified to require grantees to notice.pdf. Paragraph 1(k) at 78 FR 14337 of the publish substantial Action Plan 6. Duplication of benefits. In addition March 5, 2013 Notice is amended, as Amendments for comment for 30 days to the requirements described in the necessary, to require each grantee to prior to submission to HUD. Grantees March 5, 2013 Notice and the Federal submit a substantial Action Plan are reminded of both the citizen Register Notice published , Amendment to HUD within 120 days of participation requirements of that 2011 (76 FR 71060), grantees receiving the effective date of this Notice. All Notice and that HUD will monitor an allocation under this Notice are Action Plan Amendments submitted grantee compliance with those subject to HUD’s guidance issued July after the effective date of this Notice requirements and the alternative 25, 2013—‘‘Guidance on Duplication of must be prepared in accordance with requirements of this Notice. In addition, Benefit Requirements and Provision of the Prior Notices, as modified by this this Notice establishes the requirement CDBG–DR Assistance’’. This guidance is Notice. In addition, they must budget that at least one public hearing must available on the CPD Disaster Recovery all, or a portion, of the funds allocated held regarding any substantial Action Web site at: http://portal.hud.gov/ under this Notice. Grantees are Plan Amendment submitted after the hudportal/HUD?src=/program offices/ reminded that an Action Plan may be effective date of this Notice, including administration/hudclips/notices/cpd amended one or more times until it any subsequent substantial amendment 7. Eligibility of needs assessment and describes uses for 100 percent of the proposing or amending a Covered comprehensive risk analysis costs. grantee’s CDBG–DR award. The last date Project. Citizens and other stakeholders Grantees may use CDBG–DR funds to that grantees may submit an Action Plan must have reasonable and timely access update their impact and unmet needs Amendment is 1, 2017 given that to these public hearings. Grantees are assessments and to develop the HUD must obligate all CDBG–DR funds encouraged to conduct outreach to comprehensive risk analysis for not later than September 30, 2017. The community groups, including those that infrastructure projects required by this requirement to expend funds within two serve minority populations, persons Notice, consistent with the overall 20 years of the date of obligation will be with limited English proficiency, and percent limitation on the use of funds enforced relative to the activities funded persons with disabilities, to encourage for planning, management and under each obligation, as applicable. public attendance at the hearings and administrative costs.

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8. Eligibility of mold remediation management) of multiple small requirements set forth elsewhere in this costs. Mold remediation is an eligible businesses that each have separate Notice related to the selection of CDBG–DR rehabilitation activity (see employer identification numbers (EIN), infrastructure projects and assistance to the HCD Act, e.g., 42 U.S.C. 5305(a)(4)). file separate tax returns, or even operate public and assisted multifamily housing Like other eligible activities, however, in different industries. Thus, HUD is reflect recommendations in the the activity encompassing mold modifying its definition of a small Rebuilding Strategy. To further address remediation must address a direct or business: Businesses must continue to these recommendations, each grantee is indirect impact caused by the disaster. meet the SBA requirements at 13 CFR strongly encouraged to incorporate the 9. Eligibility of public services and part 121 to be eligible for CDBG–DR following components into its long term assistance to impacted households. assistance, except that the size strategy for recovery from Hurricane Grantees are reminded that households standards will only apply to each EIN. Sandy, and to reflect the incorporation impacted by Hurricane Sandy and other Businesses that share common of these components, to the extent qualifying events in 2011, 2012 and ownership or management may be appropriate, in Action Plan 2013, may be assisted as part of an eligible for CDBG–DR assistance, as long Amendments. eligible public service activity, subject as each business with a unique EIN 1. Regional environmental review and to applicable CDBG regulations. Public meets the applicable SBA size permitting; opportunities to expedite service activities often address needs standards. environmental review. To expedite such as employment and training, child 11. Eligibility of Local Disaster environmental review and permitting care, health, etc. Income payments, Recovery Manager costs. Consistent for critical infrastructure projects in the defined as a series of subsistence-type with the recommendation of the Sandy-affected region, and ensure that grant payments are made to an Rebuilding Strategy, grantees may use the most complex projects are delivered individual or family for items such as CDBG–DR funds to fill Local Disaster as efficiently as possible, the Rebuilding food, clothing, housing, or utilities, are Recovery Manager (LDRM) positions, Strategy recommended and federal generally ineligible for CDBG–DR which are recommended by the agencies have created the Sandy assistance. However, per the CDBG National Disaster Recovery Framework. Regional Infrastructure Permitting and regulations, grantees may make Additional information about the Review Team. This interagency body emergency grant payments for up to National Disaster Recovery Framework will help to ensure that projects or three consecutive months, to the can be found at http://www.fema.gov/ activities funded by the Appropriations provider of such items or services on long-term-recovery. A LDRM may Act, including CDBG–DR funds, will behalf of an individual or family. coordinate and manage the overall long- incorporate best practices and align Additionally, as provided by the HCD term recovery and redevelopment of a federal and state processes where Act, funds for public services activities community, which includes the local appropriate. It is expected that this may be used as a matching requirement, administration and leveraging of coordination will lead to considerable share, or contribution for any other multiple federally-funded projects and savings in time and cost. Where federal program when used to carry out programs. A LDRM may also ensure that appropriate, grantees should identify an eligible CDBG–DR activity. However, federal funds are used properly, and can opportunities to expedite and improve the activity must still meet a national help local governments address the other types of review processes, objective and address all applicable need for long-term recovery including historic review and other CDBG cross-cutting requirements. coordination. For additional guidance, environmental analyses, through 10. Small business assistance— grantees should consult the CPD Notice programmatic agreements or Modification of the alternative ‘‘Allocating Staff Costs between Program consultation, and through participation requirement to allow use of the Administration Costs vs. Activity in the Regional Coordination Working Employer Identification Number (EIN). Delivery Costs in the Community group referenced in Section VI (2) of In the March 5, 2013 Notice, the Development Block Grant (CDBG) this Notice. HUD will be providing Department instituted an alternative Program for Entitlement Grantees, additional guidance on the operation of requirement to the provisions at 42 Insular Areas, Non-Entitlement Counties both the Permitting and Review Team U.S.C. 5305(a) prohibiting grantees from in Hawaii, and Disaster Recovery and the Regional Coordination Working assisting businesses, including privately Grants,’’ at: http://portal.hud.gov/ Group. owned utilities, that do not meet the huddoc/13-07cpdn.pdf. 2. Small business assistance. To definition of a small business as defined support small business recovery, by Small Business Administration VII. Mitigation and Resilience Methods, grantees are encouraged to work with, (SBA) at 13 CFR part 121 in order to Policies, and Procedures and/or fund, small business assistance target assistance to the businesses most Executive Order 13632 established the organizations that provide direct and responsible for driving local and Hurricane Sandy Rebuilding Task Force. consistent communication about regional economies. To determine The Task Force was charged with disaster recovery resources to affected whether an entity is a small business identifying and working to remove businesses. Selected organizations under the SBA definition, the grantee obstacles to resilient rebuilding while should have close relationships with must take into account all of its taking into account existing and future local businesses and knowledge of their affiliations. Typically, companies that risks and promoting the long-term communities’ needs and assets. In have common ownership or sustainability of communities and addition, grantees may support outreach management are considered affiliated. ecosystems in the Sandy-affected region. efforts by a Community Development Per the SBA regulations, if businesses The Task Force was further tasked with Finance Institution (CDFI) to small are affiliated, the number of jobs and the development of a rebuilding businesses in vulnerable communities. revenue for those businesses must be strategy, which was released on . Energy Infrastructure. Where aggregated. However, this could 19, 2013. The Executive Order directs necessary for recovery, CDBG–DR funds preclude a number of small businesses HUD and other federal agencies, to the may be used to support programs, from receiving assistance—particularly extent permitted by law, to align its projects and activities to enhance the in cases where one or more persons relevant programs and authorities with resiliency of energy infrastructure. have control (i.e., ownership or the Rebuilding Strategy. The Energy infrastructure includes

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electricity transmission and distribution Agreements (PLAs) on large-scale compounds or plastic sheeting on walls systems, including customer-owned construction projects in areas to keep water out. generation where a significant portion of responding to disasters. Public housing Grantees are reminded of the the generation is provided to the grid; authorities receiving CDBG–DR funds mandatory mitigation requirements and liquid and gaseous fuel distribution are governed by PLA requirements described in the , 2013 Notice. systems, both fixed and mobile. CDBG– established by the Department’s Office That is, reconstruction and substantial DR recipients may use funds from this of Public and Indian Housing. Executive improvement projects located in a allocation for recovery investments that Order 13502 can be found at: http:// floodplain, according to the best enhance the resiliency of energy www.whitehouse.gov/the-press-office/ available data as defined above, must be infrastructure so as to limit potential executive-order-use-project-labor- designed using the base flood elevation damages and future disturbance and agreementsfederal-construction- plus one foot as the baseline standard thus reduce the need for any future projects. for lowest floor elevation. If higher federal assistance under such an event. 6. Mitigating future risk. Grantees elevations are required by locally CDBG–DR funds may be used to support should include programs to implement adopted code or standards, those higher public-private partnerships to enhance voluntary buyout programs or elevate or standards apply. the resiliency of privately-owned energy otherwise flood-proof all structures that In addition to the mandatory infrastructure, if the CDBG–DR assisted were impacted by the disaster (whether requirements of the April 19, 2013 activities meet a national objective and they are homes, businesses or utilities) Notice, grantees may also engage in can be demonstrated to relate to to mitigate flood or sea level rise risk as voluntary risk mitigation measures. For recovery from the direct or indirect indicated by relevant data sources. example, instead of elevating non- effects of Hurricane Sandy or other Reducing risk is essential to the residential structures that are not eligible disasters under this Notice. economic well-being of communities critical actions, as defined at 24 CFR Such projects may include microgrids or and business and is therefore an 55.2(b)(2), grantees may design and energy banks that may provide funds to essential part of any disaster recovery. construct the project such that below entities consistent with all applicable Elevating at least one foot higher than the flood level, the structure is flood requirements. Grantees should review the latest FEMA-issued base flood proofed to the level of the best available DOE’s report, ‘‘U.S. Energy Sector elevation or best available data (which base flood data plus one foot. Flood Vulnerabilities to Climate Change and includes advisory base flood elevation proofing requires structures to be water Extreme Weather,’’ available at: http:// data), as required by the April 19, 2013 tight with walls substantially energy.gov/sites/prod/files/2013/07/f2/ Notice has the added benefit of making impermeable to the passage of water and 20130716-Energy%20Sector%20 flood insurance more affordable, with structural components having the Vulnerabilities%20Report.pdf. This particularly for economically capability of resisting hydrostatic loads, report assesses vulnerabilities and disadvantaged home and business hydrodynamic loads, the effects of provides guidance on developing a new owners. The relevant data source and buoyancy, or higher standards required approach for electric grid operations. In best available data under Executive by the FEMA National Flood Insurance developing this component of its long Order 11988 is the latest FEMA data or Program as well as state and locally term recovery plan, grantees are guidance, which includes advisory data adopted codes. reminded that pursuant to the March 5, (such as Advisory Base Flood In undertaking mitigation activities, 2013 Notice, grantees are prohibited Elevations) or preliminary and final grantees are also encouraged to include from assisting businesses that do not Flood Insurance Rate Maps. Thus, in projects identified that are ultimately meet the definition of a small business addition to the elevation requirements identified through the Rebuild by as defined by SBA at 13 CFR part 121 of the April 19, 2013 Notice, the Design initiative referenced in Section I and as further modified by this Notice. Department strongly encourages of this Notice. The March 5, 2013 Notice also prohibits 7. Leveraging funds and evidence- grantees to elevate all structures assistance to private utilities. based strategies. Grantees are impacted by the disaster (including 4. Providing jobs to local workforce. In encouraged, where appropriate, to housing), even those requiring repairs of complying with Section 3 of the leverage grant funds with public and low or moderate damage, in addition to Housing and Urban Development Act of private funding sources—including those requiring substantial 1968, grantees are encouraged to through infrastructure banks, rehabilitation in response to Hurricane continue efforts, through specialized Community Development Finance Sandy. FEMA maps are available here: skills training programs and other Institutions, and other intermediaries— https://msc.fema.gov/webapp/wcs/ initiatives, to: (a) Employ very-low and and to make use of evidence-based stores/servlet/FemaWelcomeView?store low-income individuals; and (2) award strategies, including social impact Id=10001&catalogId=10001&langId=-1. contracts to local businesses, for bonds and other pay-for-success Additional Hurricane Sandy-specific Hurricane Sandy rebuilding and strategies. rebuilding from other eligible disasters information can be found here: http:// under this Notice (e.g., mold www.region2coastal.com/sandy/table. VIII. Catalog of Federal Domestic remediation and construction (including In addition, all rehabilitation projects Assistance elevation), ecosystem and habitat should apply appropriate construction The Catalog of Federal Domestic restoration, green infrastructure and standards to mitigate risk, which may Assistance number for the disaster coastal engineering). include: (a) Raising utilities or other recovery grants under this Notice is as 5. Project labor agreements. Executive mechanical devices above expected follows: 14.269. Order 13502 (Use of Project Labor flood level; (b) wet flood proofing in a Agreements for Federal Construction basement or other areas below ABFE/ Finding of No Significant Impact Projects) governs the use of project labor best available data + 1 foot; (c) using A Finding of No Significant Impact agreements for large-scale construction water resistant paints or other materials; (FONSI) with respect to the projects procured by the federal or (d) dry flood proofing non-residential environment has been made in government. Similarly, grantees are structures by strengthening walls, accordance with HUD regulations at 24 encouraged to make use of Project Labor sealing openings, or using waterproof CFR part 50, which implement section

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102(2)(C) of the National Environmental • FEMA, Department of Transportation, have a high level of damage if they have Policy Act of 1969 (42 U.S.C. and Corps of Engineers data on damage of ‘‘major-low’’ or higher. That is, infrastructure; and they have a FEMA personal property damage 4332(2)(C)). The FONSI is available for • public inspection between 8 a.m. and 5 Action Plans and supplemental data assessment of $2,000 or greater or flooding submitted by Sandy CDBG Grantees. over 1 foot. Furthermore, landlords are p.m. weekdays in the Regulations presumed to have adequate insurance Division, Office of General Counsel, Calculating Unmet Housing Needs coverage unless the unit is occupied by a Department of Housing and Urban The core data on housing damage for both renter with income of $30,000 or less. Units Development, 451 7th Street SW., Room the unmet housing needs calculation and the are occupied by a tenant with income less 10276, Washington, DC 20410–0500. concentrated damage are based on home than $30,000 are used to calculate likely Due to security measures at the HUD inspection data for FEMA’s Individual unmet needs for affordable rental housing. Headquarters building, an advance Assistance program. For unmet housing For those units occupied by tenants with appointment to review the docket file needs, the FEMA data are supplemented by incomes under $30,000, HUD estimates Small Business Administration data from its must be scheduled by calling the unmet needs as 75 percent of the estimated Disaster Loan Program. HUD calculates repair cost. Regulations Division at 202–708–3055 ‘‘unmet housing needs’’ as the number of • The median cost to fully repair a home (this is not a toll-free number). Hearing housing units with unmet needs times the for a specific disaster to code within each of or speech-impaired individuals may estimated cost to repair those units less the damage categories noted above is access this number through TTY by repair funds already provided by FEMA, calculated using the average real property calling the toll-free Federal Relay where: damage repair costs determined by the Small Service at 800–877–8339. • Each of the FEMA inspected owner units Business Administration for its disaster loan are categorized by HUD into one of five program for the subset of homes inspected by Dated: , 2013. categories: both SBA and FEMA. Because SBA is Mark Johnston, Æ Minor-Low: Less than $3,000 of FEMA inspecting for full repair costs, it is presumed Deputy Assistant Secretary for Special Needs inspected real property damage. to reflect the full cost to repair the home, Programs. Æ Minor-High: $3,000 to $7,999 of FEMA which is generally more than the FEMA inspected real property damage. Appendix A—Allocation Methodology estimates on the cost to make the home Æ Major-Low: $8,000 to $14,999 of FEMA habitable. If fewer than 100 SBA inspections The first allocation of $5.4 billion for inspected real property damage (if basement are made for homes within a FEMA damage Disaster Recovery needs associated with flooding only, damage categorization is category, the estimated damage amount in Sandy was based on preliminary data capped at major-low). the category for that disaster has a cap associated with unmet housing and business Æ Major-High: $15,000 to $28,800 of FEMA applied at the 75th percentile of all damaged needs. The second allocation of $5.1 billion inspected real property damage and/or 4 to units for that category for all disasters and reflects updated housing and business unmet 6 feet of flooding on the first floor. has a floor applied at the 25th percentile. needs that have more complete information Æ Severe: Greater than $28,800 of FEMA on insurance coverage, infrastructure data inspected real property damage or Calculating Unmet Infrastructure Needs from FEMA, the Department of determined destroyed and/or 6 or more feet • To proxy unmet infrastructure needs, Transportation, and the Corps of Engineers. of flooding on the first floor. HUD uses data from FEMA’s Public This allocation is calculated is based on To meet the statutory requirement of ‘‘most Assistance program on the state match relative share of needs HUD has estimated impacted’’ in this legislative language, homes requirement. This allocation uses only a are required to rebuild to a higher standard are determined to have a high level of subset of the Public Assistance damage consistent with CDBG program requirements damage if they have damage of ‘‘major-low’’ estimates reflecting the categories of and the goals set forth in the Hurricane or higher. That is, they have a real property activities most likely to require CDBG Sandy Rebuilding Strategy. FEMA inspected damage of $8,000 or funding above the Public Assistance and HUD calculates the cost to rebuild the most flooding over 4 foot. Furthermore, a state match requirement. Those activities are impacted and distressed homes, businesses, homeowner is determined to have unmet categories: C-Roads and Bridges; D-Water and infrastructure back to pre-disaster needs if they have received a FEMA grant to Control Facilities; E-Public Buildings; F- conditions. From this base calculation, HUD make home repairs. For homeowners with a Public Utilities; and G-Recreational-Other. calculates both the amount not covered by FEMA grant and insurance for the covered Categories A (Debris Removal) and B insurance and other federal sources to event, HUD assumes that the unmet need (Protective Measures) are largely expended rebuild back to pre-disaster conditions as ‘‘gap’’ is 20 percent of the difference between immediately after a disaster and reflect well as a ‘‘resiliency’’ amount which is total damage and the FEMA grant. interim recovery measures rather than the calculated at 30 percent of the total basic cost • FEMA does not inspect rental units for long-term recovery measures for which CDBG to rebuild back the most distressed homes, real property damage so personal property funds are generally used. Because Public businesses, and infrastructure to pre-storm damage is used as a proxy for unit damage. Assistance damage estimates are available conditions. The repair unmet needs are Each of the FEMA inspected renter units are only statewide (and not county), CDBG combined with the resiliency needs to categorized by HUD into one of five funding allocated by the estimate of unmet calculate the total severe unmet needs categories: infrastructure needs are sub-allocated to New estimated to achieve long-term recovery. The Æ Minor-Low: Less than $1,000 of FEMA York City from the New York State total formula allocation is made proportional to inspected personal property damage. based on the distribution of initial project- those calculated severe unmet needs. Æ Minor-High: $1,000 to $1,999 of FEMA level estimates obtained from FEMA. Available Data inspected personal property damage. For the second round of CDBG–DR funding Æ The ‘‘best available’’ data HUD staff have Major-Low: $2,000 to $3,499 of FEMA for Sandy recovery, HUD included three identified as being available to calculate inspected personal property damage (if additional sources of information: unmet needs at this time for the targeted basement flooding only, damage 1. US Army Corps of Engineers (USACE) disasters come from the following data categorization is capped at major-low). Infrastructure Resilience Coordination. Many sources: Æ Major-High: $3,500 to $7,499 of FEMA USACE Sandy projects require very high • FEMA Individual Assistance program inspected personal property damage or 4 to local cost shares. However, Federal data on housing unit damage; 6 feet of flooding on the first floor. requirements only allow grantees to no more • SBA for management of its disaster Æ Severe: Greater than $7,500 of FEMA than $250,000 of CDBG–DR funding towards assistance loan program for housing repair inspected personal property damage or local match requirements for these projects. and replacement; determined destroyed and/or 6 or more feet As such, this calculation only includes • SBA for management of its disaster of flooding on the first floor. $250,000 per USACE project where local assistance loan program for business real For rental properties, to meet the statutory match is higher than that amount. estate repair and replacement as well as requirement of ‘‘most impacted’’ in this 2. DOT, Federal Highway Administration content loss; legislative language, homes are determined to (FHWA) Sandy Recovery Grants—Emergency

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Relief (ER). We include an estimate of the homes, small businesses, and infrastructure Service, 1111 Constitution Avenue NW., local cost share from this program. To by 30 percent. Total repair costs are the Washington, DC 20224; telephone calculate this estimate, we only include 20% repair costs including costs covered by number 202–622–3040, fax number of non-quick release Sandy ER project insurance, SBA, FEMA, and other federal 202–622–4753. For questions about the estimates as of July 2013. agencies. The resiliency estimate at 30 3. DOT, Federal Transit Administration percent of damage is intended to reflect some ‘‘HUB Zones’’ program, contact Mariana (FTA) Transit Emergency Relief (ER). We of the unmet needs associated with building Pardo, Assistant Administrator for include the 10% local cost share for these to higher standards such as elevating homes, Procurement Policy, Office of transit projects. Note, since much of the New voluntary buyouts, hardening, and other Government Contracting, U.S. Small York City transit damage is owned by a state costs in excess of normal repair costs. Data Business Administration, at 409 Third organization, the Metropolitan on damage to public housing for purpose of Street SW., Suite 8800, Washington, DC Transportation Authority, New York State calculating resiliency need was based on 20416; telephone number 202–205– receives the vast majority of need from this damage estimates from both FEMA and 8885, fax number 202–205–7167, or grant. Also note that the State of New Jersey HUD’s Office of Public and Indian Housing. send an email to [email protected]. A receives 66% of the local match requirement [FR Doc. 2013–27506 Filed 11–15–13; 8:45 am] from the Port Authority’s match requirement; text telephone is available for persons New York State receives 34% of the BILLING CODE 4210–67–P with hearing or speech impairments, at Authority’s match requirement. 202–708–8339. (The previous are not toll-free telephone numbers.) Additional Calculating Economic Revitalization Needs DEPARTMENT OF HOUSING AND copies of this notice are available • Based on SBA disaster loans to URBAN DEVELOPMENT through HUD User at 800–245–2691 businesses, HUD used the sum of real [Docket No. FR–5738–N–01] (this is a toll-free number) for a small fee property and real content loss of small to cover duplication and mailing costs. businesses not receiving an SBA disaster Copies Available Electronically: This loan. This is adjusted upward by the Statutorily Mandated Designation of proportion of applications that were received Difficult Development Areas for 2014 notice and additional information about for a disaster that content and real property DDAs and QCTs are available on the AGENCY: Office of the Secretary, HUD. loss were not calculated because the Internet at: http://www.huduser.org/ applicant had inadequate credit or income. ACTION: Notice. datasets/qct.html. For example, if a state had 160 applications SUPPLEMENTARY INFORMATION: This for assistance, 150 had calculated needs and SUMMARY: This notice designates ‘‘Difficult Development Areas’’ (DDAs) notice designates DDAs for each of the 10 were denied in the pre-processing stage 50 states, the District of Columbia, for not enough income or poor credit, the for purposes of the Low-Income estimated unmet need calculation would be Housing Tax Credit (LIHTC) under , American Samoa, Guam, increased as (1 + 10/160) * calculated unmet Section 42 of the Internal Revenue Code the Northern Mariana Islands, and the real content loss. of 1986 (IRC). The United States U.S. Virgin Islands. The designations of • Because applications denied for poor Department of Housing and Urban DDAs in this notice are based on final credit or income are the most likely measure Development (HUD) makes new DDA Fiscal Year (FY) 2013 Fair Market Rents of needs requiring the type of assistance (FMRs), FY2013 income limits, and available with CDBG–DR funds, the designations annually. In addition to announcing the 2014 DDA designations, 2010 Census population counts. calculated unmet business needs for each This notice also announces the this notice announces a change in the state are adjusted upwards by the proportion adoption of a revised methodology, of total applications that were denied at the designation methodology for beginning with the 2016 metropolitan pre-process stage because of poor credit or metropolitan DDAs, beginning with the DDA designations, which will be the inability to show repayment ability. Similar 2016 designations. The revised to housing, estimated damage is used to first to rely on the use of Small Area methodology will use Small Area Fair FMRs, estimated at the ZIP-code level determine what unmet needs will be counted Market Rents (SAFMRs), rather than as severe unmet needs. Only properties with and based on the relationship of ZIP- total real estate and content loss in excess of metropolitan-area Fair Market Rents code rents to metropolitan-area rents, as $30,000 are considered severe damage for (FMRs), for designating metropolitan the housing cost component of the DDA purposes of identifying the most impacted DDAs and was originally described in a formula, rather than metropolitan-area areas. notice published in the Federal Register FMRs. This revised methodology was Æ Category 1: real estate + content loss = on Thursday, 27, 2011. first described in a Federal Register below 12,000 The designations of ‘‘Qualified Æ notice published on , 2011 Category 2: real estate + content loss = Census Tracts’’ (QCTs) under IRC (76 FR 66741), entitled ‘‘Statutorily 12,000¥30,000 Section 42, published on , 2012, Mandated Designation of Difficult Æ Category 3: real estate + content loss = remain in effect. 30,000¥65,000 Development Areas and Qualified FOR FURTHER INFORMATION CONTACT: Æ Category 4: real estate + content loss = For Census Tracts for 2012.’’ ¥ questions on how areas are designated 65,000 150,000 2010 Census, 2000 Census, and Æ Category 5: real estate + content loss = and on geographic definitions, contact above 150,000 Michael K. Hollar, Senior Economist, Metropolitan Area Definitions • To obtain unmet business needs, the Economic Development and Public Data from the 2010 Census on total amount for approved SBA loans is subtracted Finance Division, Office of Policy population of metropolitan areas and out of the total estimated damage Resiliency Development and Research, U.S. nonmetropolitan areas are used in the Needs. Department of Housing and Urban designation of DDAs. The Office of CDBG Disaster Recovery Funds are often Development, at 451 Seventh Street Management and Budget (OMB) first used to not only support rebuilding to pre- SW., Room 8234, Washington, DC published new metropolitan area storm conditions, but also to build back 20410–6000; telephone number 202– definitions incorporating 2000 Census much stronger. For Sandy, HUD has required 402–5878 or email address data in OMB Bulletin No. 03–04 on June that grantees use their funds in a way that results in rebuilding back stronger so that [email protected]. For specific 6, 2003, and updated them periodically future storms do less damage and recovery legal questions pertaining to Section 42, through OMB Bulletin No. 10–02 on can happen faster. To calculate these contact Branch 5, Office of the Associate 1, 2009. FY2013 FMRs and resiliency costs, HUD multiplied it estimates Chief Counsel, Passthroughs and FY2013 income limits used to designate of total repair costs for seriously damaged Special Industries, Internal Revenue DDAs are based on these Metropolitan

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