83254 Federal Register / Vol. 81, No. 224 / Monday, November 21, 2016 / Notices

C. Authority DATES: Effective Date: November 28, disaster relief, long-term recovery, Section 3507 of the Paperwork 2016. restoration of infrastructure and Reduction Act of 1995, 44 U.S.C. FOR FURTHER INFORMATION CONTACT: housing, and economic revitalization in Chapter 35. Jessie Handforth Kome, Acting Director, the most impacted and distressed areas resulting from a major disaster declared Dated: November 10, 2016. Office of Block Grant Assistance, in 2016 and occurring prior to Colette Pollard, Department of Housing and Urban Development, 451 7th Street SW., Room enactment of the Appropriations Act, Department Reports Management Officer, pursuant to the Robert T. Stafford Office of the Chief Information Officer. 7286, Washington, DC 20410, telephone number 202–708–3587. Persons with Disaster Relief and Emergency [FR Doc. 2016–27909 Filed 11–18–16; 8:45 am] hearing or speech impairments may Assistance Act of 1974 (42 U.S.C. 5121 BILLING CODE 4210–67–P access this number via TTY by calling et seq.) (Stafford Act). Given the extent the Federal Relay Service at 800–877– of damage to housing in the largest DEPARTMENT OF HOUSING AND 8339. Facsimile inquiries may be sent to eligible disaster and the very limited URBAN DEVELOPMENT Ms. Kome at 202–401–2044. (Except for data at present on unmet infrastructure the’’800’’ number, these telephone and economic revitalization needs, HUD [Docket No. FR–5989–N–01] numbers are not toll-free.). Email is requiring each grantee to primarily inquiries may be sent to disaster_ consider and address its unmet housing Allocations, Common Application, [email protected]. recovery needs. This notice allows Waivers, and Alternative Requirements SUPPLEMENTARY INFORMATION: grantees to allocate funds to address for Community Development Block unmet economic revitalization and Grant Disaster Recovery Grantees Table of Contents infrastructure needs, but in doing so, the AGENCY: Office of the Assistant I. Allocations grantee must identify how unmet Secretary for Community Planning and II. Use of Funds housing needs will be addressed or how Development, HUD. III. Management and Oversight of Funds its economic revitalization or IV. Authority To Grant Waivers ACTION: Notice. V. Overview of Grant Process infrastructure activities will contribute VI. Applicable Rules, Statutes, Waivers, and to the long-term recovery and SUMMARY: This notice allocates $500 Alternative Requirements restoration of housing in the most million in Community Development A. Grant Administration impacted and distressed areas. The law Block Grant disaster recovery (CDBG– B. Housing and Related Floodplain Issues provides that grants shall be awarded DR) funds appropriated by the C. Infrastructure directly to a State or unit of general D. Economic Revitalization Continuing Appropriations Act, 2017 local government at the discretion of the for the purpose of assisting long-term E. Certifications and Collection of Secretary. The Secretary has elected to recovery in Louisiana, Texas and West Information award funds only to States in this Virginia. This notice describes VII. Duration of Funding VIII. Catalog of Federal Domestic Assistance allocation. Unless noted otherwise, the applicable waivers and alternative IX. Finding of No Significant Impact term ‘‘grantee’’ refers to the State requirements, relevant statutory Appendix A: Allocation Methodology receiving a direct award from HUD provisions for grants provided under this notice, the grant award process, I. Allocations under this notice. To comply with criteria for plan approval, and eligible Section 145 of the Continuing statutory direction that funds be used disaster recovery activities. Given the Appropriations Act, 2017 (Pub. L. 114– for disaster-related expenses in the most extent of damage to housing in the 223, approved September 29, 2016) impacted and distressed areas, HUD largest eligible disaster and the very (Appropriations Act) makes available allocates funds using the best available limited data at present on unmet $500 million in Community data that cover all of the eligible affected infrastructure and economic Development Block Grant (CDBG) funds areas. revitalization needs, this notice requires for necessary expenses for activities Based on a review of the impacts from each grantee to primarily consider and authorized under title I of the Housing these disasters, and estimates of unmet address its unmet housing recovery and Community Development Act of need, HUD is making the following needs. 1974 (42 U.S.C. 5301 et seq.) related to allocations:

TABLE 1—ALLOCATIONS UNDER PUBLIC LAW 114–223

Minimum amount that must be expended for re- Disaster No. State Grantee Allocation covery in the HUD-identified ‘‘most impacted’’ areas

4277, 4263, 4272 ...... Louisiana ...... State of Louisiana ...... $437,800,000 ($350,240,000) East Baton Rouge, Livingston, As- cension, Tangipahoa, Ouachita, Lafayette (Par- ishes). 4269, 4266 ...... Texas ...... State of Texas ...... 45,200,000 ($36,160,000) Harris, Newton, Montgomery (Coun- ties). 4273 ...... West Virginia .. State of West Virginia .... 17,000,000 ($13,600,000) Kanawha, Greenbrier (Counties).

Total ...... 500,000,000

Table 1 also shows the HUD- award. At least 80 percent of the total impacted and distressed’’ areas, as identified ‘‘most impacted and funds provided within each State under identified in the last column in Table 1. distressed’’ areas impacted by the this notice must address unmet needs Grantees may determine where the disasters that did not receive a direct within the HUD-identified ‘‘most remaining 20 percent may be spent by

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identifying areas it determines to be controls and procurement processes and DRGR system reporting requirements, ‘‘most impacted and distressed.’’ A has established adequate procedures to see paragraph A.3 under section VI of detailed explanation of HUD’s prevent any duplication of benefits as this notice. More information on the allocation methodology is provided at defined by section 312 of the Stafford timely expenditure of funds is included Appendix A. Act, ensure timely expenditure of funds, in paragraphs A.24 of section VI of this Each grantee receiving an allocation maintain comprehensive Web sites notice. Other reporting, procedural, and under this notice must submit an action regarding all disaster recovery activities monitoring requirements are discussed plan for disaster recovery, or ‘‘action assisted with these funds, and detect under ‘‘Grant Administration’’ in plan,’’ no later than 90 days after the and prevent waste, fraud, and abuse of section VI of this notice. effective date of this notice. HUD will funds. To provide a basis for the The grant terms and specific only approve action plans that meet the certification, each grantee must submit conditions of the award will reflect specific requirements identified in this documentation to the Department HUD’s risk assessment of the grantee notice under section VI, ‘‘Applicable demonstrating its compliance with the and will require the grantee to adhere to Rules, Statutes, Waivers, and above requirements. For a complete list the description of its implementation Alternative Requirements.’’ of the required certification plan submitted in its certification and II. Use of Funds documentation, see paragraph A.1.a. risk analysis documentation. HUD will under section VI of this notice. The also institute an annual risk analysis as The Appropriations Act requires that certification documentation must be well as on-site monitoring of grantee prior to the obligation of CDBG–DR submitted within 60 days of the management to further guide oversight funds a grantee shall submit a plan effective date of this notice, or with the of these funds. detailing the proposed use of all funds, grantee’s submission of its action plan, IV. Authority To Grant Waivers including criteria for eligibility, and whichever is earlier. how the use of these funds will address In advance of signing a grant The Appropriations Act authorizes long-term recovery and restoration of agreement and consistent with 2 CFR the Secretary to waive or specify infrastructure and housing and 200.205 of the Uniform Administrative alternative requirements for any economic revitalization in the most Requirements, Cost Principles, and provision of any statute or regulation impacted and distressed areas. This Audit Requirements for Federal Awards that the Secretary administers in action plan for disaster recovery must (Uniform Requirements), HUD will connection with the obligation by the describe uses and activities that: (1) Are evaluate each grantee’s capacity to Secretary, or use by the recipient, of authorized under title I of the Housing effectively manage the funds and the these funds, except for requirements and Community Development Act of associated risks they pose through a related to fair housing, 1974 (HCD Act) or allowed by a waiver review of supplemental risk analysis nondiscrimination, labor standards, and or alternative requirement published in documentation. This notice requires the environment. Waivers and this notice; and (2) respond to disaster- each grantee to submit risk analysis alternative requirements are based upon related impact to infrastructure, documentation demonstrating that it a determination by the Secretary that housing, and economic revitalization in can effectively manage the funds, ensure good cause exists and that the waiver or the most impacted and distressed areas. timely communication of application alternative requirement is not To inform the plan, grantees must status to applicants for disaster recovery inconsistent with the overall purposes conduct an assessment of community assistance, and that it has adequate of title I of the HCD Act. HUD also has impacts and unmet needs to guide the capacity to manage the funds and regulatory waiver authority under 24 development and prioritization of address any capacity needs. For a CFR 5.110, 91.600, and 570.5. Grantees planned recovery activities, pursuant to complete listing of the required risk may request waivers as described in paragraph A.2.a. in section VI below. analysis documentation, see paragraph section VI of this notice. In accordance with the HCD Act, A.1.b. under section VI of this notice. funds may be used to meet a matching, Documentation applicable to the risk V. Overview of Grant Process share, or contribution requirement for analysis must be submitted within 60 To begin expenditure of CDBG–DR any other Federal program when used to days of the effective date of this notice, funds, the following expedited steps are carry out an eligible CDBG–DR activity. or with the grantee’s submission of its necessary: This includes programs or activities action plan, whichever is earlier. • Grantee follows citizen administered by the Federal Emergency Additionally, this notice requires participation plan for disaster recovery Management Agency (FEMA) and the grantees to submit to the Department for in accordance with the requirements in U.S. Army Corps of Engineers (USACE), approval a projection of expenditures paragraph A.4 of section VI of this among other Federal sources. CDBG–DR and outcomes as part of its action plan. notice. funds, however, may not be used for Any subsequent changes, updates or • Grantee consults with stakeholders, activities reimbursable by or for which revision of the projections will require including required consultation with funds are made available by FEMA or the grantee to amend its action plan to affected local governments and public USACE. reflect the new projections. This will housing authorities (as identified in This notice also requires each grantee enable HUD, the public, and the grantee section VI of this notice). to expend 100 percent of its allocation to track planned versus actual • Within 60 days of the effective date of CDBG–DR funds on eligible activities performance. of this notice (or when the grantee within 6 years of HUD’s execution of the Grantees must also enter expected submits its action plan, whichever is grant agreement. completion dates for each activity in earlier), the grantee submits certification HUD’s Disaster Recovery Grant documentation providing a basis for the III. Management and Oversight of Reporting (DRGR) system. When target Secretary’s certification that the grantee Funds dates are not met or are extended, a has in place proficient financial controls The Appropriations Act requires the grantee is required to explain the reason and procurement processes and has Secretary to certify, in advance of for the delay in the Quarterly established adequate procedures to signing a grant agreement, that the Performance Report (QPR) activity prevent any duplication of benefits as grantee has in place proficient financial narrative. For additional guidance on defined by section 312 of the Stafford

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Act, ensure timely expenditure of funds, VI. Applicable Rules, Statutes, Waivers, prevent any duplication of benefits as maintain comprehensive Web sites and Alternative Requirements defined by section 312 of the Stafford regarding all disaster recovery activities This section of the notice describes Act, ensure timely expenditure of funds, assisted with these funds, and detect requirements imposed by the maintain comprehensive Web sites and prevent waste, fraud, and abuse of Appropriations Act, as well as regarding all disaster recovery activities funds; applicable waivers and alternative assisted with these funds, and detect • Within 60 days of the effective date requirements. For each waiver and and prevent waste, fraud, and abuse of funds. To enable the Secretary to make of this notice (or when the grantee alternative requirement, the Secretary this certification, each grantee must submits its action plan, whichever is has determined that good cause exists submit to HUD the certification earlier) the grantee submits its risk and is consistent with the overall documentation listed below. This analysis documentation allowing HUD purpose of the HCD Act. The waivers information must be submitted within to evaluate the grantee’s risk and and alternative requirements provide 60 days of the effective date of this capacity to effectively manage the additional flexibility in program design notice, or with the grantee’s submission funds. and implementation to support full and of its action plan, whichever date is • swift recovery following the disasters, Grantee publishes its action plan for earlier. Grant agreements will not be while also ensuring that statutory disaster recovery on the grantee’s executed until HUD has issued a required disaster recovery Web site for requirements are met. The following certification in response to the grantee’s no less than 14 calendar days to solicit requirements apply only to the CDBG– submission. For each of the items (1) public comment. DR funds appropriated in the through (6) below, the grantee must also • Grantee responds to public Appropriations Act, and not to funds provide a table that clearly indicates comment and submits its action plan provided under the annual formula which unit and personnel are (which includes Standard Form 424 State or Entitlement CDBG programs, or responsible for each task along with (SF–424) and certifications) to HUD no those provided under any other contact information. The grantee must later than 90 days after the date of this component of the CDBG program, such certify to the accuracy of its certification notice. as the Section 108 Loan Guarantee documentation as required by paragraph Program, or any prior CDBG–DR • HUD expedites review (allotted 60 E.47 of section VI of this notice. appropriation. (1) Financial Controls. A grantee has days from date of receipt) and approves Grantees may request additional the action plan according to criteria proficient financial controls if each of waivers and alternative requirements the following criteria is satisfied: identified in this notice. from the Department as needed to a. The grantee’s most recent single • HUD sends an action plan approval address specific needs related to their audit and consolidated annual financial letter, grant terms and conditions, and recovery activities. Except where noted, report (CAFR) indicates that the grantee grant agreement to the grantee. If the waivers and alternative requirements has no material weaknesses, action plan is not approved, a letter will described below apply to all grantees deficiencies, or concerns that HUD be sent identifying its deficiencies; the under this notice. Under the considers to be relevant to the financial grantee must then resubmit the action requirements of the Appropriations Act, management of the CDBG program. If plan within 45 days of the notification waivers and alternative requirements the single audit or CAFR identified letter. are effective five days after they are weaknesses or deficiencies, the grantee • Grantee signs and returns the grant published in the Federal Register. must provide documentation showing agreement. Except as described in this notice, how those weaknesses have been statutory and regulatory provisions • Grantee ensures that the final HUD- removed or are being addressed; and governing the State CDBG program shall b. The grantee has assessed its approved action plan is posted on its apply to grantees receiving an allocation financial standards and has completed official Web site. under this notice. Applicable statutory the HUD monitoring guide for financial • HUD establishes the grantee’s line provisions can be found at 42 U.S.C. standards (FY2017 Guide for Review of of credit. 5301 et seq. Applicable State CDBG Financial Management (the Financial • Grantee requests and receives DRGR regulations can be found at 24 CFR part Management Guide), available on the system access (if the grantee does not 570. References to the action plan in HUD Exchange Web site at https:// already have DRGR access). these regulations shall refer to the action www.hudexchange.info/cdbg-dr/cdbg- • Grantee enters the activities from its plan required by this notice. All dr-laws-regulations-and-federal-register- published action plan into the DRGR references in this notice pertaining to notices/). The grantee’s standards must system and submits its DRGR action timelines and/or deadlines are in terms conform to the requirements of the plan to HUD (funds can be drawn from of calendar days unless otherwise noted. Financial Management Guide. The the line of credit only for activities that The date of this notice shall mean the grantee must identify which sections of are established in the DRGR system). effective date of this notice unless its financial standards address each of • otherwise noted. the questions in the guide. The grantee may draw down funds (2) Procurement. A grantee has in from the line of credit after the A. Grant Administration. place a proficient procurement process Responsible Entity completes applicable 1. Preaward Evaluation of if it has either: (a) Adopted 2 CFR environmental review(s) pursuant to 24 Management and Oversight of Funds. 200.318 through 200.326 (subject to 2 CFR part 58 or as authorized by the a. Certification of proficient controls, CFR 200.110, as applicable); or (b) the Appropriations Act and, as applicable, processes and procedures. The effect of the grantee’s procurement receives from HUD or the State an Appropriations Act requires that the process/standards are equivalent to the approved Request for Release of Funds Secretary certify, in advance of signing effect of procurements under 2 CFR and certification. a grant agreement, that the grantee has 200.318 through 200.326, meaning that • The grantee must begin to draw in place proficient financial controls the process/standards, while not down funds no later than 180 days after and procurement processes and has identical, operate in a manner that the effective date of this notice. established adequate procedures to provides for full and open competition.

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The grantee must provide its frequency of Web site updates. At b. Staffing. The plan shows that the procurement process/standards for HUD minimum, grantees must update their grantee has assessed staff capacity and review so HUD may evaluate the overall Web site quarterly. identified personnel for the purpose of effect of the grantee’s procurement/ (6) Procedures to detect fraud, waste case management in proportion to the process standards. The grantee’s and abuse. A grantee has adequate applicant population; program managers provided procurement process/ procedures to detect fraud, waste and who will be assigned responsibility for standards must comply with the abuse if its procedures indicate how the each primary recovery area (i.e., procurement requirements at 24 CFR grantee will verify the accuracy of housing, economic revitalization, and 570.489(g), as provided in paragraph information provided by applicants; if it infrastructure, as applicable); and staff A.22 of Section VI of this notice. provides a monitoring policy indicating responsible for procurement/contract (3) Duplication of benefits. A grantee how and why monitoring is conducted, management, environmental has adequate procedures to prevent the the frequency of monitoring, and which compliance, as well as staff responsible duplication of benefits where the items are monitored; and if it for monitoring and quality assurance, grantee identifies its uniform processes demonstrates that it has an internal and financial management. An adequate for each of the following: (a) Verifying auditor and includes a document signed plan will also provide for an internal all sources of disaster assistance by the internal auditor that describes his audit function with responsible audit received by the grantee or applicant, as or her role in detecting fraud, waste, and staff reporting independently to the applicable; (b) determining an abuse. chief elected or executive officer or applicant’s unmet need(s) before b. Evaluation of Risk and board of the governing body of any awarding assistance; and (c) ensuring Management Capacity. Before signing a designated administering entity. beneficiaries agree to repay the grant agreement, HUD is requiring each c. Internal and Interagency assistance if they later receive other grantee to demonstrate that it has Coordination. The grantee’s plan disaster assistance for the same purpose. sufficient capacity to manage these describes how it will ensure effective Grantee procedures shall provide that funds and the associated risks. communication between different prior to the award of assistance, the Evidence of grantee management departments and divisions within the grantee will use the best, most recent capacity will be provided through the grantee’s organizational structure that available data from FEMA, the Small grantee’s risk analysis documentation are involved in CDBG–DR–funded Business Administration (SBA), which must be submitted within 60 recovery efforts; between its lead agency insurers, and other sources of funding to days of the effective date of this notice and subrecipients responsible for prevent the duplication of benefits. or with the grantee’s submission of its implementing the grantee’s action plan; Departmental guidance to assist in action plan, whichever date is earlier. and with other local and regional preventing a duplication of benefits is The grantee must certify to the accuracy planning efforts to ensure consistency. provided in a notice published in the of its risk analysis documentation d. Technical Assistance. The grantee’s Federal Register at 76 FR 71060 submissions as required by paragraph implementation plan describes how it (November 16, 2011), in HUD Guidance E.47 in section VI of this notice. A will procure and provide technical on Duplication of Benefits Requirements grantee has sufficient management assistance for any personnel that the and Provision of CDBG Disaster capacity if each of the following criteria grantee does not employ at the time of Recovery (DR) Assistance, as amended, action plan submission, and to fill gaps (https://www.hudexchange.info/ is satisfied: in knowledge or technical expertise resource/3137/cdbg-dr-duplication-of- (1) Timely information on application benefit-requirements-and-provision-of- status. A grantee has adequate required for successful and timely assistance-with-sba-funds/) and in procedures to inform applicants of the recovery implementation where paragraph A.21 of section VI of this status of their applications for recovery identified in the capacity assessment. notice. assistance, at all phases, if its e. Accountability. The grantee’s plan (4) Timely expenditures. A grantee procedures indicate methods for identifies the principal lead agency has adequate procedures to determine communication (i.e., Web site, responsible for implementation of the timely expenditures if it indicates to telephone, case managers, letters, etc.), State’s CDBG–DR award and indicates HUD how the grantee will track ensure the accessibility and privacy of that the head of that agency will report expenditures each month, how it will individualized information for all directly to the Governor of the State. monitor expenditures of its recipients applicants, indicate the frequency of 2. Action Plan for Disaster Recovery and subrecipients, how it will applicant status updates and identify waiver and alternative requirement. reprogram funds in a timely manner for which personnel or unit is responsible. Requirements for CDBG actions plans, activities that are stalled, and how it (2) Preaward Implementation Plan. To located at 42 U.S.C. 12705(a)(2), 42 will project expenditures to provide for enable HUD to assess risk as described U.S.C. 5304(a)(1), 42 U.S.C. 5304(m), 42 the expenditure of all CDBG–DR funds in 2 CFR 200.205(c), the grantee will U.S.C. 5306(d)(2)(C)(iii), and 24 CFR within the period provided for in submit an implementation plan to the 91.320, are waived for these disaster paragraph A.24 of section VI of this Department. The plan must describe the recovery grants. Instead, grantees must notice. grantee’s capacity to carry out the submit to HUD an action plan for (5) Comprehensive disaster recovery recovery and how it will address any disaster recovery which will describe Web site. A grantee has adequate capacity gaps. HUD will determine a disaster recovery programs that conform procedures to maintain a plan is adequate to reduce risk if, at a to applicable requirements as specified comprehensive Web site regarding all minimum it addresses: in this notice. During the course of the disaster recovery activities if its a. Capacity Assessment. The grantee grant, HUD will monitor the grantee’s procedures indicate that the grantee will has conducted an assessment of its actions and use of funds for consistency have a separate page dedicated to its capacity to carry out recovery efforts, with the plan, as well as meeting the disaster recovery that includes the and has developed a timeline with performance and timeliness objectives information described at paragraph A.23 milestones describing when and how therein. The Secretary may disapprove of section VI of this notice. The the grantee will address all capacity an action plan as substantially procedures should also indicate the gaps that are identified. incomplete if it is determined that the

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plan does not satisfy all of the required CDBG–DR funds may be used to homelessness; (b) the prevention of low- elements identified in this notice. reimburse costs for developing the income individuals and families with a. Action Plan. The action plan must action plan, including the needs children (especially those with incomes identify the proposed use of all funds, assessment, environmental review, and below 30 percent of the area median) including criteria for eligibility, and citizen participation requirements. HUD from becoming homeless; and (c) the how the uses address long-term has developed a Disaster Impact and special needs of persons who are not recovery needs. Funds dedicated for Unmet Needs Assessment Kit to guide homeless but require supportive uses not described in accordance with CDBG–DR grantees through a process housing (e.g., elderly, persons with paragraphs b. or c. under this section for identifying and prioritizing critical disabilities, persons with alcohol or will not be obligated until the grantee unmet needs for long-term community other drug addiction, persons with HIV/ submits, and HUD approves, an action recovery, and it is available on the HUD AIDS and their families, and public plan amendment programming the use Exchange Web site at https://www.hud housing residents, as identified in 24 of those funds, at the necessary level of exchange.info/resources/documents/ CFR 91.315(e)). Grantees are reminded detail. Disaster_Recovery_Disaster_Impact_ that the use of recovery funds must meet The action plan must contain: Needs_Assessment_Kit.pdf. accessibility standards, provide 1. An impact and unmet needs Disaster recovery needs evolve over reasonable accommodations to persons assessment. Each grantee must develop time and the needs assessment and with disabilities, and take into a needs assessment to understand the action plan are expected to be amended consideration the functional needs of type and location of community needs as conditions change and additional persons with disabilities in the and to target limited resources to those needs are identified. relocation process. A checklist of areas with the greatest need. Grantees 2. A description of the connection relocation considerations for persons receiving an award under this notice between identified unmet needs and the with disabilities may be found in must conduct a needs assessment to allocation of CDBG–DR resources. Chapter 3 of HUD’s Relocation inform the allocation of CDBG–DR Grantees must propose an allocation of Handbook 1378.0. Grantees must also resources. At a minimum, the needs CDBG–DR funds that primarily assess how planning decisions may assessment must: considers and addresses unmet housing affect racial, ethnic, and low-income • Evaluate all aspects of recovery needs. Grantees may also allocate funds concentrations, and ways to promote the including housing (interim and for economic revitalization and availability of affordable housing in permanent, owner and rental, single- infrastructure activities, but in doing so, low-poverty, nonminority areas where family and multifamily, affordable and must identify how any remaining unmet appropriate and in response to natural market rate, and housing to meet the housing needs will be addressed or how hazard-related impacts. needs of persons who were homeless its economic revitalization and 5. A description of how the grantee pre-disaster), infrastructure, and infrastructure activities will contribute plans to minimize displacement of economic revitalization; to the long-term recovery and persons or entities, and assist any • Account for the various forms of restoration of housing in the most persons or entities displaced. assistance available to, or likely to be impacted and distressed areas. Grantee 6. A description of the maximum available to, affected communities (e.g., action plans may provide for the amount of assistance available to a projected FEMA funds) and individuals allocation of funds for administration beneficiary under each of the grantee’s (e.g., estimated insurance) to ensure and planning activities and for public disaster recovery programs. A grantee CDBG–DR funds meet needs that are not service activities, subject to the caps on may find it necessary to provide likely to be addressed by other sources such activities as described below. exceptions on a case-by-case basis to the of funds; 3. Each grantee must include a maximum amount of assistance and • Assess whether public services description of how it will identify and must describe the process it will use to (e.g., housing counseling, legal address the rehabilitation (as defined at make such exceptions in its action plan. counseling, job training, mental health, 24 CFR 570.202), reconstruction, At minimum, each grantee must adopt and general health services) are replacement, and new construction of policies and procedures that necessary to complement activities housing and shelters in the areas communicate how it will analyze the intended to address housing, affected by the disaster. This includes circumstances under which an infrastructure and economic any rental housing that is affordable to exception is needed and how it will revitalization; low or moderate income households (as demonstrate that the amount of • Use the most recent available data defined by the grantee as provided in assistance is necessary and reasonable. (cite data sources) to inform the action B.31 of section VI of this notice); public 7. A description of how the grantee plan, particularly with regard to housing (including administrative plans to: (a) Adhere to the advanced estimating the portion of need likely to offices); emergency shelters and housing elevation requirements established in be addressed by insurance proceeds, for the homeless; private market units paragraph B.28 of section VI of this other Federal assistance, or any other receiving project-based assistance or notice; (b) promote sound, sustainable funding sources (thus producing an with tenants that participate in the long-term recovery planning informed estimate of unmet need); Section 8 Housing Choice Voucher by a post-disaster evaluation of hazard • Describe impacts geographically by Program; and any other housing that is risk, especially land-use decisions that type at the lowest level practicable (e.g., assisted under a HUD program. reflect responsible flood plain county level or lower if available for 4. A description of how the grantee’s management and take into account States, and neighborhood or census tract programs will promote housing for continued sea level rise, if applicable; level for cities); and vulnerable populations, including a and (c) coordinate with other local and • Take into account the costs of description of activities it plans to regional planning efforts to ensure incorporating mitigation and resilience address: (a) The transitional housing, consistency. This information should be measures to protect against future permanent supportive housing, and based on the history of FEMA flood hazards, including the anticipated permanent housing needs of individuals mitigation efforts, and take into account effects of climate change on those and families (including subpopulations) projected increase in sea level (if hazards. that are homeless and at-risk of applicable) and frequency and intensity

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of precipitation events, which are not disasters. Whenever feasible, grantees 4. For each proposed program and/or considered in current FEMA maps and should follow best practices such as activity carried out directly, its National Flood Insurance Program those provided by the U.S. Department respective CDBG activity eligibility premiums. of Energy’s Guidelines for Home Energy category (or categories) as well as Additionally, a grantee proposing an Professionals—Professional national objective(s). allocation of grant funds for Certifications and Standard Work 5. How the method of distribution to infrastructure must include a Specifications. HUD also encourages local governments or programs/ description of how the proposed grantees to implement green activities carried out directly will result infrastructure activities will advance infrastructure policies to the extent in long-term recovery from specific long-term resilience to natural hazards practicable. Additional tools for green impacts of the disaster. and how the grantee intends to align infrastructure are available at the 6. When funds are allocated to these investments with other planned Environmental Protection Agency’s Web UGLGs, all criteria used to distribute state or local capital improvements. site https://www.epa.gov/green- funds to local governments including Grantees should describe how infrastructure; the Indoor AirPlus Web the relative importance of each preparedness and mitigation measures site https://www.epa.gov/indoorairplus; criterion. will be integrated into rebuilding the Healthy Indoor Environment 7. When applications are solicited for activities and how the grantee will Protocols for Home Energy Upgrades programs carried out directly, all criteria promote community-level and/or Web site https://www.epa.gov/sites/ used to select applications for funding, regional (e.g. multiple local production/files/2014-12/documents/ including the relative importance of jurisdictions) post-disaster recovery and epa_retrofit_protocols.pdf; and the each criterion. mitigation planning. ENERGY STAR Web site www.epa.gov/ c. Clarification of disaster-related The action plan must provide for the greenbuilding. activities. All CDBG–DR funded use of CDBG–DR funds to develop a 10. A description of the standards to activities must clearly address an disaster recovery and response plan that be established for construction impact of the disaster for which funding addresses long-term recovery and pre- contractors performing work in the was allocated. Given standard CDBG and post-disaster hazard mitigation, if jurisdiction and a mechanism for requirements, this means each activity one does not currently exist. homeowners and small business owners must: (1) Be a CDBG-eligible activity (or 8. A description of how the grantee to appeal rehabilitation contractor work. be eligible under a waiver or alternative will leverage CDBG–DR funds with HUD strongly encourages the grantee to requirement in this notice); (2) meet a funding provided by other Federal, require a warranty period post- national objective; and (3) address a State, local, private, and nonprofit construction, with formal notification to direct or indirect impact from the sources to generate a more effective and homeowners on a periodic basis (e.g., 6 disaster in a Presidentially-declared comprehensive recovery. Examples of months and one month prior to county. A disaster-related impact can be other Federal sources are those provided expiration date of the warranty). addressed through any eligible CDBG– by HUD, FEMA (specifically the Public 11. A description of how the grantee DR activity. Additional details on Assistance Program, Individual will manage program income, and the disaster-related activities are provided Assistance Program, and Hazard purpose(s) for which it may be used. under section VI, parts B through D. Mitigation Grant Program), SBA Waivers and alternative requirements Additionally, HUD has developed a (specifically the Disaster Loans related to program income can be found series of CDBG–DR toolkits that guide program), Economic Development in this notice at paragraph A.17 of grantees through specific grant Administration, USACE, and the U.S. section VI. implementation activities. These can be Department of Agriculture. The grantee 12. A description of monitoring found on the HUD Exchange Web site at should seek to maximize the number of standards and procedures that are https://www.hudexchange.info/ activities and the degree to which CDBG sufficient to ensure program programs/cdbg-dr/toolkits/. funds are leveraged. Grantees shall requirements, including an analysis for 1. Housing. Typical housing activities identify leveraged funds for each duplication of benefits, are met and that include new construction and activity, as applicable, in the DRGR provide for continual quality assurance rehabilitation of single-family or system. and adequate program oversight. multifamily units. Most often, grantees 9. A description of how the grantee b. Method of Distribution. The action use CDBG–DR funds to rehabilitate will: (a) Design and implement plan shall describe the method of damaged homes and rental units. programs or activities with the goal of distribution of funds to units of general However, grantees may also fund new protecting people and property from local government (UGLG) and/or construction (see paragraph B.28 of harm; (b) emphasize high quality, descriptions of specific programs or section VI of this notice) or rehabilitate durability, energy efficiency, activities the State will carry out units not damaged by the disaster if the sustainability, and mold resistance; (c) directly. The description must include: activity clearly addresses a disaster- support adoption and enforcement of 1. How the needs assessment related impact and is located in a modern building codes and mitigation informed allocation determinations, disaster-affected area. This impact can of hazard risk, including possible sea including the rationale behind the be demonstrated by the disaster’s level rise, high winds, storm surge, and decision(s) to provide funds to State- overall effect on the quality, quantity, flooding, where appropriate; and (d) identified ‘‘most impacted and and affordability of the housing stock implement and ensure compliance with distressed’’ areas that were not defined and the resulting inability of that stock the Green Building standards required by HUD as being ‘‘most impacted and to meet post-disaster needs and in paragraph B.28 of section VI of this distressed,’’ if applicable. population demands. notice. All rehabilitation, 2. The threshold factors and grant size a. Prohibition on forced mortgage reconstruction, and new construction limits that are to be applied. payoff. In some instances, homeowners should be designed to incorporate 3. The projected uses for the CDBG– with an outstanding mortgage balance principles of sustainability, including DR funds, by responsible entity, are required, under the terms of their water and energy efficiency, resilience, activity, and geographic area, when the loan agreement, to repay the balance of and mitigating the impact of future State carries out an activity directly. the mortgage loan prior to using

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assistance to rehabilitate or reconstruct lines. In proposing an allocation of document the relationship between the their homes. CDBG–DR funds, however, CDBG–DR funds under this notice for loss and the disaster. may not be used for a forced mortgage infrastructure, a grantee must identify d. Clarity of Action Plan. All grantees payoff. The ineligibility of a forced how any remaining unmet housing must include sufficient information so mortgage payoff with CDBG–DR funds needs will be addressed or how its that all interested parties will be able to does not affect HUD’s longstanding infrastructure activities will contribute understand and comment on the action guidance that when other non-CDBG to the long-term recovery and plan and, if applicable, be able to disaster assistance is taken by lenders restoration of housing in the most prepare responsive applications to the for a forced mortgage payoff, those impacted and distressed areas. grantee. The action plan (and funds are not considered to be available Grantees that use CDBG–DR funds to subsequent amendments) must include to the homeowner and do not constitute assist flood control structures (i.e., dams a single chart or table that illustrates, at a duplication of benefits for the purpose and levees) are prohibited from using the most practical level, how all funds of housing rehabilitation or CDBG–DR funds to enlarge a dam or are budgeted (e.g., by program, reconstruction. levee beyond the original footprint of subrecipient, grantee-administered b. Housing Counseling Services. the structure that existed prior to the activity, or other category). Grantees are encouraged to coordinate disaster event. Grantees that use CDBG– e. Review and Approval of Action with HUD-approved housing counseling DR funds for levees and dams are Plan. For funds provided under the services to ensure that information and required to: (1) Register and maintain Appropriations Act, the action plan services are made available to both entries regarding such structures with must be submitted to HUD (including renters and homeowners. Additional the U.S. Army Corps of Engineers SF–424 and certifications) within 90 information is available for Louisiana at: National Levee Database or National days of the date of the effective date this http://www.hud.gov/offices/hsg/sfh/ Inventory of Dams; (2) ensure that the notice. HUD will review each action hcc/hcs.cfm?&webListAction=search structure is admitted in the U.S. Army plan within 60 days from the date of &searchstate=LA, for Texas at: http:// Corps of Engineers PL 84–99 Program receipt. The Secretary may disapprove an action plan as substantially www.hud.gov/offices/hsg/sfh/hcc/ (Levee Rehabilitation and Improvement incomplete if it is determined that the hcs.cfm?webListAction=search&search Program); (3) ensure the structure is action plan does not meet the state=TX, and for West Virginia at: accredited under the FEMA National requirements of this notice. http://www.hud.gov/offices/hsg/sfh/ Flood Insurance Program; (4) upload hcc/hcs.cfm?webListAction=search f. Obligation and expenditure of into DRGR the exact location of the funds. Once HUD approves the action &searchstate=WV. structure and the area served and 2. Economic Revitalization. For plan, it will then issue a grant protected by the structure; and (5) CDBG–DR purposes, economic agreement obligating all funds to the maintain file documentation revitalization may include any CDBG– grantee. In addition, HUD will establish demonstrating that the grantee has both DR eligible activity that demonstrably the line of credit and the grantee will conducted a risk assessment prior to restores and improves some aspect of receive DRGR system access (if it does the local economy. The activity may funding the flood control structure and not already have DRGR system access). address job losses, or negative impacts that the investment includes risk The grantee must also enter its action to tax revenues or businesses. Examples reduction measures. plan activities into the DRGR system in of eligible activities include providing 4. Preparedness and Mitigation. The order to draw funds for those activities. loans and grants to businesses, funding Appropriations Act states that funds Each activity must meet the applicable job training, making improvements to shall be used for recovering from a environmental requirements prior to the commercial/retail districts, and Presidentially declared major disaster use of funds. After the Responsible financing other efforts that attract/retain and all assisted activities must respond Entity (usually the grantee) completes workers in devastated communities. to the impacts of the declared disaster. environmental review(s) pursuant to 24 All economic revitalization activities HUD encourages grantees to incorporate CFR part 58 (as applicable) or as must address an economic impact(s) preparedness and mitigation measures authorized by the Appropriations Act caused by the disaster (e.g., loss of jobs, into the aforementioned rebuilding and receives from HUD or the State an loss of public revenue). Through its activities, to rebuild communities that approved Request for Release of Funds needs assessment and action plan, the are more resilient to future disasters. and certification (as applicable), the grantee must clearly identify the Mitigation measures that are not grantee may draw down funds from the economic loss or need resulting from incorporated into those rebuilding line of credit for an activity. The the disaster, and how the proposed activities must be a necessary expense disbursement of grant funds must begin activities will address that loss or need. related to disaster relief or long-term no later than 180 days after the effective In proposing an allocation of CDBG–DR recovery that responds to the eligible date of this notice. funds for economic revitalization under disaster. Furthermore, the costs g. Amending the Action Plan. The this notice, a grantee must identify how associated with these measures may not grantee must amend its action plan to any remaining unmet housing needs prevent the grantee from meeting unmet update its needs assessment, modify or will be addressed or how its economic needs. create new activities, or reprogram revitalization activities will contribute 5. Connection to the Disaster. funds, as necessary. Each amendment to the long-term recovery and Grantees must maintain records about must be highlighted, or otherwise restoration of housing in the most each activity funded, as described in identified, within the context of the impacted and distressed areas. paragraph A.14 of section VI of this entire action plan. The beginning of 3. Infrastructure. Typical notice. In regard to physical losses, every action plan amendment must infrastructure activities include the damage or rebuilding estimates are often include a: (1) Section that identifies repair, replacement, or relocation of the most effective tools for exactly what content is being added, damaged public facilities and demonstrating the connection to the deleted, or changed; (2) chart or table improvements including, but not disaster. For housing market, economic, that clearly illustrates where funds are limited to, bridges, water treatment and/or nonphysical losses, post-disaster coming from and where they are moving facilities, roads, and sewer and water analyses or assessments may best to; and (3) revised budget allocation

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table that reflects the entirety of all must be entered into the DRGR system of benefits; (2) reconcile budgets, funds, as amended. A grantee’s current at a level of detail that is sufficient to obligations, funding draws, and version of its entire action plan must be serve as the basis for acceptable expenditures; (3) calculate expenditures accessible for viewing as a single performance reports and permit HUD to determine compliance with document at any given point in time, review of compliance requirements. administrative and public service caps rather than the public or HUD having to The action plan must also be entered and the overall percentage of funds that view and cross-reference changes among into the DRGR system so that the benefit low- and moderate-income multiple amendments. grantee is able to draw its CDBG–DR persons; and (4) analyze the risk of h. Projection of expenditures and funds. The grantee may enter activities grantee programs to determine priorities outcomes. Each grantee must amend its into the DRGR system before or after for the Department’s monitoring. No published action plan to project submission of the action plan to HUD. personally identifiable information shall expenditures and outcomes within 90 To enter an activity into the DRGR be reported in DRGR. days of action plan approval. The system, the grantee must know the d. Tracking program income in the projections must be based on each activity type, national objective, and the DRGR system. Grantees must use the quarter’s expected performance— organization that will be responsible for DRGR system to draw grant funds for beginning with the quarter funds are the activity. each activity. Grantees must also use the available to the grantee and continuing All funds programmed or budgeted at DRGR system to track program income each quarter until all funds are a general level in the DRGR system will receipts, disbursements, revolving loan expended. The projections will enable be restricted from access on the funds, and leveraged funds (if HUD, the public, and the grantee to grantee’s line of credit. Grantees must applicable). If a grantee permits local track proposed versus actual describe activities in DRGR at the governments or subrecipients to retain performance. The published action plan necessary level of detail in order for program income, the grantee must must be amended for any subsequent HUD to release funds and make them establish program income accounts in changes, updates or revision of the available for use by the grantee. the DRGR system. The DRGR system projections. Guidance on the Each activity entered into the DRGR requires grantees to use program income preparation of projection is available on system must also be categorized under before drawing additional grant funds, the HUD Web site. a ‘‘project.’’ Typically, projects are and ensures that program income 3. HUD performance review based on groups of activities that retained by one organization will not authorities and grantee reporting accomplish a similar, broad purpose affect grant draw requests for other requirements in the Disaster Recovery (e.g., housing, infrastructure, or organizations. Grant Reporting (DRGR) System. economic revitalization) or are based on e. DRGR system Quarterly a. Performance review authorities. 42 an area of service (e.g., Community A). Performance Report (QPR). Each grantee U.S.C. 5304(e) requires that the If a grantee describes just one program must submit a QPR through the DRGR Secretary shall, at least on an annual within a broader category (e.g., single system no later than 30 days following basis, make such reviews and audits as family rehabilitation), that program is the end of each calendar quarter. Within may be necessary or appropriate to entered as a project in the DRGR system. 3 days of submission to HUD, each QPR determine whether the grantee has Further, the budget of the program must be posted on the grantee’s official carried out its activities in a timely would be identified as the project’s Web site. In the event the QPR is manner, whether the grantee’s activities budget. If a State grantee has only rejected by HUD, the grantee must post and certifications are carried out in identified the Method of Distribution the revised version, as approved by accordance with the requirements and (MOD) upon HUD’s approval of the HUD, within 3 days of HUD approval. the primary objectives of the HCD Act published action plan, the MOD itself The grantee’s first QPR is due after the and other applicable laws, and whether typically serves as the projects in the first full calendar year quarter after HUD the grantee has the continuing capacity DRGR system, rather than activity enters the grant award into the DRGR to carry out those activities in a timely groupings. Activities are added to MOD system. For example, a grant award manner. projects as subrecipients decide which made in April requires a QPR to be This notice waives the requirements specific CDBG–DR programs and submitted by October 30. QPRs must be for submission of a performance report projects will be funded. submitted on a quarterly basis until all pursuant to 42 U.S.C. 12708 and 24 CFR c. Tracking oversight activities in the funds have been expended and all 91.520. Alternatively, HUD is requiring DRGR system; use of DRGR data for expenditures and accomplishments that grantees enter information in the HUD review and dissemination. Each have been reported. If a satisfactory DRGR system in sufficient detail to grantee must also enter into the DRGR report is not submitted in a timely permit the Department’s review of system summary information on manner, HUD may suspend access to grantee performance on a quarterly basis monitoring visits and reports, audits, CDBG–DR funds until a satisfactory through the Quarterly Performance and technical assistance it conducts as report is submitted, or may withdraw Report (QPR) and to enable remote part of its oversight of its disaster and reallocate funding if HUD review of grantee data to allow HUD to recovery programs. The grantee’s QPR determines, after notice and opportunity assess compliance and risk. HUD-issued will include a summary indicating the for a hearing, that the jurisdiction did general and appropriation-specific number of grantee oversight visits and not submit a satisfactory report. guidance for DRGR reporting reports (see subparagraph e for more Each QPR will include information requirements can be found on the HUD information on the QPR). HUD will use about the uses of funds in activities exchange at https://www.hud data entered into the DRGR action plan identified in the DRGR action plan exchange.info/programs/drgr/. and the QPR, transactional data from the during the applicable quarter. This b. DRGR Action Plan. Each grantee DRGR system, and other information includes, but is not limited to, the must enter its action plan for disaster provided by the grantee, to provide project name, activity, location, and recovery, including performance reports to Congress and the public, as national objective; funds budgeted, measures, into HUD’s DRGR system. As well as to: (1) Monitor for anomalies or obligated, drawn down, and expended; more detailed information about uses of performance problems that suggest the funding source and total amount of funds is identified by the grantee, it fraud, abuse of funds, and duplication any non–CDBG–DR funds to be

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expended on each activity; beginning contacts with neighborhood comments or views, and the grantee’s and actual completion dates of organizations. response to each must be submitted to completed activities; achieved Grantees are responsible for ensuring HUD with the action plan or substantial performance outcomes, such as number that all citizens have equal access to amendment. of housing units completed or number information about the programs, d. Availability and accessibility of the of low- and moderate-income persons including persons with disabilities and Action Plan. The grantee must make the served; and the race and ethnicity of limited English proficiency (LEP). Each action plan, any substantial persons assisted under direct-benefit grantee must ensure that program amendments, and all performance activities. For all housing and economic information is available in the reports available to the public on its development activities, the address of appropriate languages for the geographic Web site and on request. In addition, the each CDBG–DR assisted property must areas to be served. Since State grantees grantee must make these documents be recorded in the QPR. Grantees must under this notice may make grants available in a form accessible to persons not include such addresses in its public throughout the State, including to with disabilities and those with limited QPR; when entering addresses in the entitlement communities, States should English proficiency. During the term of QPR, grantees must select ‘‘Not Visible carefully evaluate the needs of disabled the grant, the grantee will provide on PDF’’ to exclude them from the persons and those with limited English citizens, affected local governments, and report required to be posted on its Web proficiency. For assistance in ensuring other interested parties with reasonable site. The DRGR system will that this information is available to LEP and timely access to information and automatically display the amount of populations, recipients should consult records relating to the action plan and program income receipted, the amount the Final Guidance to Federal Financial to the grantee’s use of grant funds. of program income reported as Assistance Recipients Regarding Title e. Public Web site. HUD is requiring disbursed, and the amount of grant VI, Prohibition Against National Origin grantees to maintain a public Web site funds disbursed. Grantees must include Discrimination Affecting Limited that provides information accounting for a description of actions taken in that English Proficient Persons, published on how all grant funds are used and quarter to affirmatively further fair January 22, 2007, in the Federal managed/administered, including links housing, within the section titled Register (72 FR 2732). to all action plans, action plan ‘‘Overall Progress Narrative’’ in the Subsequent to publication of the amendments, performance reports, DRGR system. action plan, the grantee must provide a citizen participation requirements, and 4. Citizen participation waiver and reasonable time frame (again, no less activity/program information for alternative requirement. To permit a than 14 days) and method(s) (including activities described in the action plan, more streamlined process, and ensure electronic submission) for receiving including details of all contracts and disaster recovery grants are awarded in comments on the plan or substantial ongoing procurement policies. To meet a timely manner, provisions of 42 U.S.C. amendment. In its action plan, each this requirement, each grantee must 5304(a)(2) and (3), 42 U.S.C. 12707, 24 grantee must specify criteria for have a separate page dedicated to its CFR 570.486, and 24 CFR 91.115(b) and determining what changes in the disaster recovery that includes the (c), with respect to citizen participation grantee’s plan constitute a substantial information described at paragraph A.23 requirements, are waived and replaced amendment to the plan. At a minimum, of section VI of this notice. by the requirements below. The the following modifications will f. Application status. HUD is streamlined requirements do not constitute a substantial amendment: A requiring grantees to provide multiple mandate public hearings but do require change in program benefit or eligibility methods of communication, such as providing a reasonable opportunity (at criteria; the addition or deletion of an Web sites, toll-free numbers, or other least 14 days) for citizen comment and activity; or the allocation or reallocation means that provide applicants for ongoing citizen access to information of a monetary threshold specified by the recovery assistance with timely about the use of grant funds. The grantee in their action plan. The grantee information on the status of their streamlined citizen participation may substantially amend the action plan application, as provided for in requirements for a grant under this if it follows the same procedures paragraph A.1.b(2) in section VI of this notice are: required in this notice for the notice. a. Publication of the action plan, preparation and submission of an action g. Citizen complaints. The grantee opportunity for public comment, and plan for disaster recovery. will provide a timely written response substantial amendment criteria. Before b. Nonsubstantial amendment. The to every citizen complaint. The response the grantee adopts the action plan for grantee must notify HUD, but is not will be provided within 15 working this grant or any substantial amendment required to undertake public comment, days of the receipt of the complaint. to the action plan, the grantee will when it makes any plan amendment 5. Direct grant administration and publish the proposed plan or that is not substantial. HUD must be means of carrying out eligible activities. amendment. The manner of publication notified at least 5 business days before Requirements at 42 U.S.C. 5306 are must include prominent posting on the the amendment becomes effective. waived to the extent necessary to allow grantee’s official Web site and must However, every amendment to the a State to use its disaster recovery grant afford citizens, affected local action plan (substantial and allocation directly to carry out State- governments, and other interested nonsubstantial) must be numbered administered activities eligible under parties a reasonable opportunity to sequentially and posted on the grantee’s this notice, rather than distribute all examine the plan or amendment’s Web site. The Department will funds to local governments. Pursuant to contents. The topic of disaster recovery acknowledge receipt of the notification this waiver, the standard at 24 CFR should be navigable by citizens from the of nonsubstantial amendments via email 570.480(c) and the provisions at 42 grantee (or relevant agency) homepage. within 5 business days. U.S.C. 5304(e)(2) will also include Grantees are also encouraged to notify c. Consideration of public comments. activities that the State carries out affected citizens through electronic The grantee must consider all directly. Activities eligible under this mailings, press releases, statements by comments, received orally or in writing, notice may be carried out, subject to public officials, media advertisements, on the action plan or any substantial State law, by the State through its public service announcements, and/or amendment. A summary of these employees, through procurement

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contracts, or through assistance CFR 5.160 and incorporate fair housing determination by HUD of compelling provided under agreements with strategies and actions consistent with need for the reduction. subrecipients or recipients. State the AFH into the Consolidated Plan. A grantee may seek to reduce the grantees continue to be responsible for 7. Requirement for consultation overall benefit requirement below 70 civil rights, labor standards, and during plan preparation. Currently, the percent of the total grant, but must environmental protection requirements, HCD Act and regulations require States submit a justification that, at a for compliance with 24 CFR 570.489 to consult with affected local minimum: (a) Identifies the planned relating to conflicts of interest and for governments in nonentitlement areas of activities that meet the needs of its low- compliance with 24 CFR 570.489(m) the State in determining the State’s and moderate-income population; (b) relating to monitoring and management proposed method of distribution. HUD describes proposed activity(ies) and/or of subrecipients. is waiving 42 U.S.C. 5306(d)(2)(C)(iv), program(s) that will be affected by the For activities carried out by entities 42 U.S.C. 5306(d)(2)(D), 24 CFR alternative requirement, including their eligible under section 105(a)(15) of the 91.325(b), and 24 CFR 91.110, with the proposed location(s) and role(s) in the HCD Act, such entity will be subject to alternative requirement that States grantee’s long-term disaster recovery the definition of a nonprofit under that receiving an allocation under this notice plan; (c) describes how the activities/ section rather than the definition consult with all disaster-affected local programs identified in (b) prevent the located in 24 CFR 570.204, even in cases governments (including any CDBG- grantee from meeting the 70 percent where the entity is receiving assistance entitlement communities and any local requirement; and (d) demonstrates that through a local government that is an public housing authorities) in low- and moderate-income persons’ Entitlement jurisdiction. determining the use of funds. This disaster-related needs have been 6. Consolidated Plan waiver. HUD is ensures that State grantees sufficiently sufficiently met and that the needs of temporarily waiving the requirement for assess the recovery needs of all areas non–low- and moderate-income persons consistency with the consolidated plan affected by the disaster. Additional or areas are disproportionately greater, (requirements at 42 U.S.C. 12706, 24 guidance on consultation with local and that the jurisdiction lacks other CFR 91.325(a)(5) and 24 CFR stakeholders can be found in the resources to serve them. 91.325(b)(2)), because the effects of a National Disaster Recovery Framework 9. Use of the ‘‘upper quartile’’ or major disaster alter a grantee’s priorities and its discussion of pre- and post- ‘‘exception criteria’’ for low- and for meeting housing, employment, and disaster planning, at: https:// moderate-income area benefit activities. infrastructure needs. In conjunction, 42 www.fema.gov/national-disaster- Section 101(c) of the HCD Act requires U.S.C. 5304(e), to the extent that it recovery-framework. each funded activity to meet a national would require HUD to annually review Consistent with the approach objective of the CDBG program, grantee performance under the encouraged through the National including the national objective of consistency criteria, is also waived. Disaster Recovery Framework and benefiting low- and moderate-income However, this waiver applies only until National Preparedness Goal, all grantees persons. Grantees may meet this the grantee submits its next full (3–5 must consult with States, tribes, local national objective on an area basis, year) consolidated plan, or for 24 governments, Federal partners, through an activity which is available to months after the effective date of this nongovernmental organizations, the benefit all of the residents of an area notice, whichever is less. If the grantee private sector, and other stakeholders where at least 51 percent of the is not scheduled to submit a new 3–5 and affected parties in the surrounding residents are low- and moderate income. year consolidated plan within the next geographic area to ensure consistency of In some cases, HUD permits an 2 years, HUD expects each grantee to the action plan with applicable regional exception to the low- and moderate- update its existing 3–5 year redevelopment plans. Grantees are income area benefit requirement that an consolidated plan to reflect disaster- encouraged to establish a recovery task area contain at least 51 percent low- and related needs no later than 24 months force with representative members of moderate-income residents. This after the effective date of this notice. each sector to advise the grantee on how exception applies to entitlement Additionally, grantees are encouraged to its recovery activities can best communities that have few, if any, areas incorporate disaster-recovery needs into contribute towards the goals of regional within their jurisdiction that have 51 their consolidated plan updates as soon redevelopment plans. percent or more low- and moderate- as practicable, but any unmet disaster- 8. Overall benefit requirement. The income residents. These communities related needs and associated priorities primary objective of the HCD Act is the are allowed to use a percentage less than must be incorporated into the grantee’s ‘‘development of viable urban 51 percent to qualify activities under the next consolidated plan update no later communities, by providing decent low- and moderate-income area benefit than its Fiscal Year 2019 update. HUD housing and a suitable living category. This exception is referred to as has issued guidance for incorporating environment and expanding economic the ‘‘exception criteria’’ or the ‘‘upper CDBG–DR funds into consolidated plans opportunities, principally for persons of quartile.’’ A grantee qualifies for this via HUD’s eCon Planning Suite. This low and moderate income’’ (42 U.S.C. exception when less than one quarter of guidance is on the HUD Exchange at: 5301(c)). To carry out this objective, the the populated-block groups in its https://www.hudexchange.info/ statute requires that 70 percent of the jurisdictions contain 51 percent or more resource/4400/updating-the- aggregate of CDBG program funds be low- and moderate-income persons. In consolidated-plan-to-reflect-disaster- used to support activities benefitting such communities, activities must serve recovery-needs-and-associated- low- and moderate-income persons. To an area that contains a percentage of priorities/. This waiver does not affect ensure that maximum assistance is low- and moderate-income residents the requirements of HUD’s July 16, provided initially to low- and moderate- that is within the upper quartile of all 2015, final rule on Affirmatively income persons, the 70 percent overall census-block groups within its Furthering Fair Housing (80 FR 42272), benefit requirement shall remain in jurisdiction in terms of the degree of which requires grantees, among other effect for this allocation, subject to a concentration of low- and moderate- requirements, to complete an waiver request by an individual grantee income residents. HUD assesses each Assessment of Fair Housing in to authorize a lower overall benefit for grantee’s census-block groups to accordance with the requirements of 24 its CDBG–DR grant based on a determine whether a grantee qualifies to

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use this exception and identifies the these planning grants are typically used prepared by the National Institute of alternative percentage the grantee may for individual project plans. By contrast, Standards and Technology (NIST); 4 or use instead of 51 percent for the planning activities carried out by (2) other climate risk related data purpose of qualifying activities under entitlement communities are more published by the Federal Government, the low- and moderate-income area likely to include non-project-specific or other State or local government benefit. HUD determines the lowest plans such as functional land-use plans, climate risk related data, including proportion a grantee may use to qualify master plans, historic preservation FEMA-approved hazard mitigation an area for this purpose and advises the plans, comprehensive plans, community plans that incorporate climate change; grantee, accordingly. Disaster recovery recovery plans, development of housing and (3) other climate risk data identified grantees are required to use the most codes, zoning ordinances, and by the jurisdiction. For additional recent data available in implementing neighborhood plans. These plans may guidance also see: The Coastal Hazards the exception criteria. The ‘‘exception guide long-term community Center’s State Disaster Recovery criteria’’ apply to disaster recovery development efforts comprising Planning Guide 5 and FEMA’s Guide on activities funded pursuant to this notice multiple activities funded by multiple Effective Coordination of Recovery in jurisdictions covered by such criteria, sources. In the CDBG Entitlement Resources for State, Tribal, Territorial including jurisdictions that receive program, these more general planning and Local Incidents.6 disaster recovery funds from a State. activities are presumed to meet a 12. Use of the urgent need national 10. Grant administration national objective under the objective. The CDBG certification responsibilities and general requirements at 24 CFR 570.208(d)(4). requirements for documentation of administration cap. The Department notes that almost all urgent need, located at 24 CFR a. Grantee responsibilities. Each effective recoveries in the past have 570.483(d), are waived for the grants grantee shall administer its award in relied on some form of area-wide or under this notice and replaced with the compliance with all applicable laws and comprehensive planning activity to following alternative requirement. In the regulations and shall be financially guide overall redevelopment context of disaster recovery, the accountable for the use of all funds independent of the ultimate source of standard urgent need certification provided in this notice. implementation funds. To assist requirements may impede recovery. b. General administration cap. For all grantees, the Department is waiving the Since the Department only provides grantees under this notice, the annual requirements at 24 CFR 570.483(b)(5) or CDBG–DR awards to grantees with CDBG program administration (c)(3), which limit the circumstances documented disaster-related impacts requirements must be modified to be under which the planning activity can and each grantee is limited to spending consistent with the Appropriations Act, meet a low- and moderate-income or funds only in the most impacted and which allows up to 5 percent of the slum-and-blight national objective. distressed areas, the following grant (plus program income) to be used Instead, States must comply with 24 streamlined alternative requirement for administrative costs, by the grantee, CFR 570.208(d)(4) when funding recognizes the urgency in addressing UGLGs or by subrecipients. Thus, the disaster recovery-assisted, planning- serious threats to community welfare total of all costs classified as only grants, or directly administering following a major disaster. administrative must be less than or planning activities that guide recovery Grantees need not issue formal equal to the 5 percent cap. certification statements to qualify an in accordance with the Appropriations (1) Combined technical assistance activity as meeting the urgent need Act. In addition, the types of planning and administrative expenditures cap. national objective. Instead, grantees activities that States may fund or The provisions of 42 U.S.C. 5306(d) and must document how each program and/ undertake are expanded to be consistent 24 CFR 570.489(a)(1)(i) and (iii) will not or activity funded under the urgent need with those of entitlement communities apply to the extent that they cap national objective responds to a identified at 24 CFR 570.205. administration and technical assistance disaster-related impact. For each As provided in paragraph A.2 of expenditures, limit a State’s ability to activity that will meet an urgent need section VI of this notice, grantees are charge a nominal application fee for national objective, grantees must required to use their planning funds to grant applications for activities the State reference in their action plan needs develop a disaster recovery and carries out directly, and require a dollar- assessment the type, scale, and location response plan that addresses long-term for-dollar match of State funds for of the disaster-related impacts that each recovery and pre- and post-disaster administrative costs exceeding program and/or activity is addressing hazard mitigation. $100,000. 42 U.S.C. 5306(d)(5) and (6) within 24-months of its first obligation Plans should include an assessment of are waived and replaced with the of grant funds. Following this 24-month natural hazard risks, including risks alternative requirement that the period, no new program or activity expected to increase due to climate aggregate total for administrative and intended to meet the urgent need change, to low- and moderate-income technical assistance expenditures must national objective may be introduced residents based on an analysis of data not exceed 5 percent of the grant plus and allocated funds without a waiver and findings in (1) the National Climate program income. A State remains from HUD. Grantees are advised to use Assessment (NCA),1 the U.S. Climate limited to spending a maximum of 20 2 the low- and moderate-income benefit percent of its total grant amount on a Resilience Toolkit, The Impact of national objective for all activities that combination of planning and program Climate Change and Population Growth qualify under the criteria for that on the National Flood Insurance administration costs. Planning costs 3 national objective. At least 70 percent of subject to the 20 percent cap are those Program Through 2100, or the the entire CDBG–DR grant award must defined in 42 U.S.C. 5305(a)(12). Community Resilience Planning Guide 11. Planning-only activities. The for Buildings and Infrastructure Systems 4 See http://nvlpubs.nist.gov/nistpubs/Special annual State CDBG program requires Publications/NIST.SP.1197.pdf. 1 that local government grant recipients See http://nca2014.globalchange.gov/high 5 http://coastalhazardscenter.org/dev/wp-content/ lights#submenu-highlights-overview. uploads/2012/05/State-Disaster-Recovery-Planning- for planning-only grants must document 2 See https://toolkit.climate.gov. Guide_2012.pdf. that the use of funds meets a national 3 See http://www.acclimatise.uk.com/login/ 6 https://www.fema.gov/media-library/assets/ objective. In the State CDBG program, uploaded/resources/FEMA_NFIP_report.pdf. documents/101940.

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be used for activities that benefit low- and prevent a recurrence. The State owned and occupied by households not and moderate-income persons. shall establish remedies for of low- and moderate-income, where the 13. Waiver and alternative noncompliance by any designated special assessments are used to recover requirement for distribution to CDBG subrecipients, public agencies, or all or part of the CDBG–DR portion of metropolitan cities and urban counties. UGLGs. a public improvement. 42 U.S.C 5302(a)(7) (definition of 17. Program income alternative (j) Gross income paid to a State, local ‘‘nonentitlement area’’) and provisions requirement. The Department is waiving government, or tribe, or paid to a of 24 CFR part 570, including 24 CFR applicable program income rules at 42 subrecipient thereof, from the 570.480, are waived to permit a State to U.S.C. 5304(j) and 570.489(e) to the ownership interest in a for-profit entity distribute CDBG–DR funds to units of extent necessary to provide additional in which the income is in return for the local government and tribes. flexibility as described under this provision of CDBG–DR assistance. 14. Recordkeeping. When a State notice. The alternative requirements (2) ‘‘Program income’’ does not carries out activities directly, 24 CFR provide guidance regarding the use of include the following: 570.490(b) is waived and the following program income received before and (a) The total amount of funds that is alternative provision shall apply: The after grant close out and address less than $35,000 received in a single State shall establish and maintain such revolving loan funds. year and retained by a State, local records as may be necessary to facilitate a. Definition of program income. government, tribe, or retained by a review and audit by HUD of the State’s (1) For purposes of this subpart, subrecipient thereof. administration of CDBG–DR funds, ‘‘program income’’ is defined as gross (b) Amounts generated by activities under 24 CFR 570.493. Consistent with income generated from the use of eligible under section 105(a)(15) of the applicable statutes, regulations, waivers CDBG–DR funds, except as provided in HCD Act and carried out by an entity and alternative requirements, and other subparagraph (d) of this paragraph, and under the authority of section 105(a)(15) Federal requirements, the content of received by a State, local government, of the HCD Act. records maintained by the State shall be tribe or a subrecipient of a State, local b. Retention of program income. State sufficient to: (1) Enable HUD to make government, or tribe. When income is grantees may permit a local government the applicable determinations described generated by an activity that is only or tribe that receives or will receive at 24 CFR 570.493; (2) make compliance partially assisted with CDBG–DR funds, program income to retain the program determinations for activities carried out the income shall be prorated to reflect income, but are not required to do so. directly by the State; and (3) show how the percentage of CDBG–DR funds used c. Program income—use, close out, activities funded are consistent with the (e.g., a single loan supported by CDBG– descriptions of activities proposed for and transfer. DR funds and other funds; a single (1) Program income received (and funding in the action plan and/or DRGR parcel of land purchased with CDBG system. For fair housing and equal retained, if applicable) before or after funds and other funds). Program income close out of the grant that generated the opportunity purposes, and as includes, but is not limited to, the applicable, such records shall include program income, and used to continue following: disaster recovery activities, is treated as data on the racial, ethnic, and gender (a) Proceeds from the disposition by characteristics of persons who are additional disaster recovery CDBG sale or long-term lease of real property funds subject to the requirements of this applicants for, participants in, or purchased or improved with CDBG–DR beneficiaries of the program. notice and must be used in accordance funds. with the grantee’s action plan for 15. Change of use of real property. (b) Proceeds from the disposition of disaster recovery. To the maximum This waiver conforms to the change of equipment purchased with CDBG–DR extent feasible, program income shall be use of real property rule to the waiver funds. allowing a State to carry out activities (c) Gross income from the use or used or distributed before additional directly. For purposes of this program, rental of real or personal property withdrawals from the U.S. Treasury are all references to ‘‘unit of general local acquired by a State, UGLG, or tribe or made, except as provided in government’’ in 24 CFR 570.489(j), shall subrecipient of a State, local subparagraph D of this paragraph. be read as ‘‘unit of general local government, or tribe with CDBG–DR (2) In addition to the regulations government (UGLG) or State.’’ funds, less costs incidental to generation dealing with program income found at 16. Responsibility for review and of the income (i.e., net income). 24 CFR 570.489(e) and 570.504, the handling of noncompliance. This (d) Net income from the use or rental following rules apply: A grantee may change is in conformance with the of real property owned by a State, local transfer program income before close waiver allowing the State to carry out government, or tribe or subrecipient of out of the grant that generated the activities directly. 24 CFR 570.492 is a State, local government, or tribe, that program income to its annual CDBG waived and the following alternative was constructed or improved with program. In addition, State grantees may requirement applies for any State CDBG–DR funds. transfer program income before close receiving a direct award under this (e) Payments of principal and interest out to any annual CDBG-funded notice: The State shall make reviews on loans made using CDBG–DR funds. activities carried out by a local and audits, including on-site reviews of (f) Proceeds from the sale of loans government or tribe within the State. any subrecipients, designated public made with CDBG–DR funds. Program income received by a grantee, agencies, and UGLGs, as may be (g) Proceeds from the sale of or received and retained by a necessary or appropriate to meet the obligations secured by loans made with subrecipient, after close out of the grant requirements of section 104(e)(2) of the CDBG–DR funds. that generated the program income, may HCD Act, as amended, as modified by (h) Interest earned on program income also be transferred to a grantee’s annual this notice. In the case of pending disposition of the income, CDBG award. In all cases, any program noncompliance with these including interest earned on funds held income received that is not used to requirements, the State shall take such in a revolving fund account. continue the disaster recovery activity actions as may be appropriate to prevent (i) Funds collected through special will not be subject to the waivers and a continuance of the deficiency, mitigate assessments made against alternative requirements of this notice. any adverse effects or consequences, nonresidential properties and properties Rather, those funds will be subject to

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the grantee’s regular CDBG program to consult with the State Historic would result from replacing all such rules. Preservation Officer, Fish and Wildlife units. Disaster-damaged housing d. Revolving loan funds. State Service and National Marine Fisheries structures that are not suitable for grantees, and local governments or Service, to obtain formal agreements for rehabilitation can pose a threat to public tribes (provided assistance by a State compliance with section 106 of the health and safety and to economic grantee) may establish revolving funds National Historic Preservation Act (54 revitalization. Grantees should reassess to carry out specific, identified U.S.C. 306108) and section 7 of the post-disaster population and housing activities. A revolving fund, for this Endangered Species Act (16 U.S.C. needs to determine the appropriate type purpose, is a separate fund (with a set 1536) when designing a reimbursement and amount of lower-income dwelling of accounts that are independent of program. Grantees may also not use units to rehabilitate and/or rebuild. other program accounts) established to CDBG–DR funds to provide Grantees should note, however, that the carry out specific activities. These compensation to beneficiaries. demolition and/or disposition of PHA- activities generate payments, which will 19. One-for-One Replacement owned public housing units is covered be used to support similar activities Housing, Relocation, and Real Property by section 18 of the United States going forward. These payments to the Acquisition Requirements. Activities Housing Act of 1937, as amended, and revolving fund are program income and and projects assisted by CDBG–DR are 24 CFR part 970. must be substantially disbursed from subject to the Uniform Relocation b. Relocation assistance. The the revolving fund before additional Assistance and Real Property relocation assistance requirements at grant funds are drawn from the U.S. Acquisition Policies Act of 1970, as section 104(d)(2)(A) of the HCD Act and Treasury for payments that could be amended, (42 U.S.C. 4601 et seq.) 24 CFR 42.350 are waived to the extent funded from the revolving fund. Such (‘‘URA’’) and section 104(d) of the HCD that they differ from the requirements of program income is not required to be Act (42 U.S.C. 5304(d)) (Section 104(d)). the URA and implementing regulations disbursed for nonrevolving fund The implementing regulations for the at 49 CFR part 24, as modified by this activities. URA are at 49 CFR part 24. The notice, for activities related to disaster State grantees may also establish a regulations for Section 104(d) are at 24 recovery. Without this waiver, revolving fund to distribute funds to CFR part 42, subpart C. For the purpose disparities exist in relocation assistance local governments or tribes to carry out of promoting the availability of decent, associated with activities typically specific, identified activities. The same safe, and sanitary housing, HUD is funded by HUD and FEMA (e.g., requirements, outlined above, apply to waiving the following URA and Section buyouts and relocation). Both FEMA this type of revolving loan fund. Note 104(d) requirements for grantees under and CDBG funds are subject to the that no revolving fund established per this notice: requirements of the URA; however, this notice shall be directly funded or a. One-for-one replacement. One-for- CDBG funds are subject to Section capitalized with CDBG–DR grant funds, one replacement requirements at section 104(d), while FEMA funds are not. The pursuant to 24 CFR 570.489(f)(3). 104(d)(2)(A)(i) and (ii) and (d)(3) and 24 URA provides that a displaced person is 18. Reimbursement of disaster CFR 42.375 are waived in connection eligible to receive a rental assistance recovery expenses. The provisions of 24 with funds allocated under this notice payment that covers a period of 42 CFR 570.489(b) are applied to permit a for lower-income dwelling units that are months. By contrast, Section 104(d) State to charge to the grant otherwise damaged by the disaster and not allows a lower-income displaced person allowable costs incurred by itself, its suitable for rehabilitation. The section to choose between the URA rental recipients or subrecipients (including 104(d) one-for-one replacement assistance payment and a rental public housing authorities (PHAs)) on or requirements generally apply to assistance payment calculated over a after the incident date of the covered demolished or converted occupied and period of 60 months. This waiver of the disaster. The Department expects State vacant occupiable lower-income Section 104(d) requirements assures grantees to include all preagreement dwelling units. This waiver exempts uniform and equitable treatment by activities in their action plans. disaster-damaged units that meet the setting the URA and its implementing Additionally, grantees are permitted to grantee’s definition of ‘‘not suitable for regulations as the sole standard for charge to grants the preaward and rehabilitation’’ from the one-for-one relocation assistance under this notice. preapplication costs of homeowners, replacement requirements. Before c. Arm’s length voluntary purchase. businesses, and other qualifying entities carrying out a program or activity that The requirements at 49 CFR for eligible costs they have incurred in may be subject to the one-for-one 24.101(b)(2)(i) and (ii) are waived to the response to an eligible disaster covered replacement requirements, the grantee extent that they apply to an arm’s length under this notice. However, a grantee must define ‘‘not suitable for voluntary purchase carried out by a may not charge such preaward or rehabilitation’’ in its action plan or in person who uses funds allocated under preapplication costs to grants if the policies/procedures governing these this notice and does not have the power preaward or preapplication action programs and activities. Grantees with of eminent domain, in connection with results in an adverse impact to the questions about the one-for-one the purchase and occupancy of a environment. Grantees receiving an replacement requirements are principal residence by that person. allocation under this notice are also encouraged to contact the HUD regional Given the often large-scale acquisition subject to HUD’s guidance on preaward relocation specialist responsible for needs of grantees, this waiver is expenses published in CPD Notice their State. necessary to reduce burdensome 2015–07, ‘‘Guidance for Charging Pre- HUD is waiving the one-for-one administrative requirements following a Application Costs of Homeowners, replacement requirements because they disaster. Grantees are reminded that Businesses, and Other Qualifying do not account for the large, sudden tenants occupying real property Entities to CDBG Disaster Recovery changes that a major disaster may cause acquired through voluntary purchase Grants,’’ as amended (https://www.hud to the local housing stock, population, may be eligible for relocation assistance. exchange.info/resource/4777/notice-cpd or economy. Further, the requirement d. Rental assistance to a displaced -1507-guidance-for-charging- may discourage grantees from person. The requirements at sections preapplication-costs-to-cdbg-disaster- converting or demolishing disaster- 204(a) and 206 of the URA, 49 CFR recovery-grants/). Grantees are required damaged housing when excessive costs 24.2(a)(6)(viii), 24.402(b)(2), and 24.404

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are waived to the extent that they requirement, disaster recovery may be ‘‘establish an expedited and unified require the grantee to use 30 percent of impeded by requiring grantees to offer interagency review process (UFR) to a low-income, displaced person’s allowances that do not reflect current ensure compliance with environmental household income in computing a rental local labor and transportation costs. and historic requirements under Federal assistance payment if the person had Persons displaced from a dwelling law relating to disaster recovery been paying rent in excess of 30 percent remain entitled to choose a payment for projects, in order to expedite the of household income without actual reasonable moving and related recovery process, consistent with ‘‘demonstrable hardship’’ before the expenses if they find that approach applicable law.’’ The process aims to project. Thus, if a tenant has been preferable to the locally established coordinate environmental and historic paying rent in excess of 30 percent of ‘‘moving expense and dislocation preservation reviews to expedite household income without allowance.’’ planning and decision-making for demonstrable hardship, using 30 g. Optional relocation policies. The disaster recovery projects. This can percent of household income to regulation at 24 CFR 570.606(d) is improve the Federal Government’s calculate the rental assistance would not waived to the extent that it requires assistance to States, local, and tribal be required. Before carrying out a optional relocation policies to be governments; communities; families; program or activity in which the grantee established at the grantee level. Unlike and individual citizens as they recover provides rental assistance payments to the regular CDBG program, States may from future presidentially declared displaced persons, the grantee must carry out disaster recovery activities disasters. Grantees receiving and define ‘‘demonstrable hardship’’ in its directly or through subrecipients but 24 allocation of funds under this notice are action plan or in the policies and CFR 570.606(d) does not account for encouraged to in this process as one procedures governing these programs this distinction. This waiver makes clear means of expediting recovery. Tools for and activities. The grantee’s definition grantees, including subrecipients, the UFR process can be found at here: of demonstrable hardship applies when receiving CDBG disaster funds may http://www.fema.gov/unified-federal- implementing these alternative establish separate optional relocation environmental-and-historic- requirements. policies. This waiver is intended to preservation-review-presidentially- e. Tenant-based rental assistance. The provide States with maximum flexibility declared-disasters. requirements of sections 204 and 205 of in developing optional relocation d. Release of funds. In accordance the URA, and 49 CFR 24.2(a)(6)(vii), policies with CDBG–DR funds. with the Appropriations Act, and 24.2(a)(6)(ix), and 24.402(b) are waived 20. Environmental requirements. notwithstanding 42 U.S.C. 5304(g)(2), to the extent necessary to permit a a. Clarifying note on the process for the Secretary may, upon receipt of a grantee to meet all or a portion of a environmental release of funds when a Request for Release of Funds and grantee’s replacement housing financial State carries out activities directly. Certification, immediately approve the assistance obligation to a displaced Usually, a State distributes CDBG funds release of funds for an activity or project tenant by offering rental housing to local governments and takes on assisted with allocations under this through a tenant-based rental assistance HUD’s role in receiving environmental notice if the recipient has adopted an (TBRA) housing program subsidy (e.g., certifications from the grant recipients environmental review, approval, or Section 8 rental voucher or certificate), and approving releases of funds. For permit under subparagraph b above, or provided that the tenant is provided this grant, HUD will allow a State the activity or project is categorically referrals to comparable replacement grantee to also carry out activities excluded from review under the dwellings in accordance with 49 CFR directly, in addition to distributing National Environmental Policy Act of 24.204(a) where the owner is willing to funds to subrecipients. Thus, per 24 1969 (42 U.S.C. 4321 et seq.). participate in the TBRA program, and CFR 58.4, when a State carries out e. Historic preservation reviews. the period of authorized assistance is at activities directly, the State must submit To facilitate expedited historic least 42 months. Failure to grant this the Certification and Request for Release preservation reviews under section 106 waiver would impede disaster recovery of Funds to HUD for approval. of the National Historic Preservation Act whenever TBRA program subsidies are b. Adoption of another agency’s of 1966 (54 U.S.C. Section 306108), available but funds for cash relocation environmental review. In accordance HUD strongly encourages grantees to assistance are limited. with the Appropriations Act, recipients allocate general administration funds to f. Moving expenses. The requirements of Federal funds that use such funds to retain a qualified historic preservation at section 202(b) of the URA and 49 CFR supplement Federal assistance provided professional, and support the capacity 24.302, which require that a grantee under sections 402, 403, 404, 406, 407, of the State Historic Preservation offer a displaced person the option to or 502 of the Stafford Act may adopt, Officer/Tribal Historic Preservation receive a fixed moving-cost payment without review or public comment, any Officer to review CDBG–DR projects. based on the Federal Highway environmental review, approval, or For more information on qualified Administration’s Fixed Residential permit performed by a Federal agency, historic preservation professional Moving Cost Schedule instead of and such adoption shall satisfy the standards see https://www.nps.gov/ receiving payment for actual moving responsibilities of the recipient with history/local-law/arch_stnds_9.htm. and related expenses, are waived. As an respect to such environmental review, 21. Duplication of benefits. Section alternative, the grantee must establish approval, or permit that is required by 312 of the Stafford Act, as amended, and offer the person a ‘‘moving expense the HCD Act. The grantee must notify generally prohibits any person, business and dislocation allowance’’ under a HUD in writing of its decision to adopt concern, or other entity from receiving schedule of allowances that is another agency’s environmental review. financial assistance with respect to any reasonable for the jurisdiction and that The grantee must retain a copy of the part of a loss resulting from a major takes into account the number of rooms review in the grantee’s environmental disaster for which such person, business in the displacement dwelling, whether records. concern, or other entity has received the person owns and must move the c. Unified Federal Review. The Sandy financial assistance under any other furniture, and, at a minimum, the kinds Recovery Improvement Act was signed program or from insurance or any other of expenses described in 49 CFR 24.301. into law on January 29, 2013, and source. To comply with Section 312 and Without this waiver and alternative directed the Administration to the limitation on the use of CDBG–DR

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funds under the Appropriations Act for b. Grantees must incorporate 24. Timely distribution of funds. The necessary expenses, each grantee must performance requirements and provisions at 24 CFR 570.494 and 24 ensure that each activity provides liquidated damages into each procured CFR 570.902 regarding timely assistance to a person or entity only to contract or agreement. Contracts that distribution of funds are waived and the extent that the person or entity has describe work performed by general replaced with alternative requirements a disaster recovery need that has not management consulting services need under this notice. Each grantee must been fully met. Grantees are subject to not adhere to this requirement; and expend 100 percent of its allocation of the requirements of a separate notice c. Grantees may contract for CDBG–DR funds on eligible activities explaining the duplication of benefit administrative support but may not within 6 years of HUD’s execution of the requirements (76 FR 71060, published delegate or contract to any other party grant agreement. November 16, 2011). As a reminder, and any inherently governmental 25. Review of continuing capacity to as noted in the November 16, 2011, responsibilities related to management carry out CDBG-funded activities in a notice, in paragraph B of section VI, of the funds, such as oversight, policy timely manner. If HUD determines that CDBG–DR funds may not be used to pay development, and financial the grantee has not carried out its CDBG an SBA home or business loan. management. Technical assistance activities and certifications in Additionally, this notice does not resources for procurement are available accordance with the requirements in require households and businesses to to grantees either through HUD staff or this notice, HUD will undertake a apply for SBA assistance prior to through technical assistance providers further review to determine whether or applying for CDBG–DR assistance. engaged by HUD or the grantee. not the grantee has the continuing However, CDBG–DR grantees may 23. Public Web site. HUD is requiring capacity to carry out its activities in a institute such a requirement in order to grantees to maintain a public Web site timely manner. In making the target assistance to households and that provides information accounting for determination, the Department will businesses with the greatest need. In how all grant funds are used and consider the nature and extent of the addition to the requirements described managed/administered, including links recipient’s performance deficiencies, here and in the November 16, 2011 to all action plans, action plan types of corrective actions the recipient notice, grantees must comply with amendments, performance reports, has undertaken, and the success or HUD’s guidance published on July 25, citizen participation requirements, and likely success of such actions, and apply 2013, ‘‘HUD Guidance on Duplication of activity/program information for the corrective and remedial actions Benefits and CDBG Disaster Recovery activities described in the action plan, specified in paragraph A.26 of section (DR) Assistance,’’ as amended, in including details of all contracts and VI of this notice. regards to declined SBA loans (https:// ongoing procurement policies. The 26. Corrective and remedial actions. creation and maintenance of the public To ensure compliance with the www.hudexchange.info/resource/3137/ Web site is one component of the requirements of the Appropriations Act cdbg-dr-duplication-of-benefit- Department’s certification of a grantee’s and to effectively administer the CDBG– requirements-and-provision-of- proficient financial controls and DR program in a manner that facilitates assistance-with-sba-funds/). procurement processes as provided in recovery, particularly the alternative 22. Procurement. States must comply paragraph A.1.a. of section VI of this requirements permitting States to act with the procurement requirements at notice. To meet this requirement, each directly to carry out eligible activities, 24 CFR 570.489(g). grantee must make the following items HUD is waiving 42 U.S.C. 5304(e) to the Additionally, if a State grantee available on its Web site: The action extent necessary to establish the chooses to provide funding to another plan (including all amendments); each following alternative requirement: HUD State agency, the State may specify in its QPR (as created using the DRGR may undertake corrective and remedial procurement policies and procedures system); procurement policies and actions for States in accordance with the whether that State agency must follow procedures; description of services or authorities applicable to entitlement the procurement policies and goods currently being procured by the grantees in subpart O (including procedures that the State is subject to, grantee; a copy of contracts the grantee corrective and remedial actions in 24 or whether the State agency must follow has procured directly; and a summary of CFR 570.910, 570.911, and 570.913) or the same policies and procedures to all procured contracts, including those under subpart I of the CDBG regulations which all other subrecipients are procured by the grantee, recipients, or at 24 CFR part 570. This may include subject. subrecipients (e.g., a summary list of the termination, reduction or limitation HUD may request periodic updates procurements, the phase of the of payments to State grantees receiving from grantees that employ contractors. procurement, requirements for funds under this notice. A contractor is a third-party firm that proposals, and any liquidation of 27. Reduction, withdrawal, or the grantee acquires through a damages associated with a contractor’s adjustment of a grant, or other procurement process to perform specific failure or inability to implement the appropriate action. functions, consistent with the contract, etc.). Grantees should post Prior to a reduction, withdrawal, or procurement requirements in the CDBG only contracts as defined in 2 CFR adjustment of a CDBG–DR grant, or program regulations. For contractors 200.22. To assist grantees in preparing other actions taken pursuant to this employed to provide discrete services or this summary, HUD has developed a section, the recipient shall be notified of deliverables only, HUD is establishing template. The template can be accessed the proposed action and be given an an additional alternative requirement to at: https://www.hudexchange.info/cdbg- opportunity for an informal expand on existing provisions of 2 CFR dr/cdbg-dr-laws-regulations-and- consultation. 200.317 through 200.326 and 24 CFR federal-register-notices/. Grantees are Consistent with the procedures 570.489(g) as follows: required to use this template, and attach described in this notice, the Department a. Grantees are also required to ensure an updated version to the DRGR system may adjust, reduce, or withdraw the all contracts and agreements (with each quarter as part of their QPR CDBG–DR grant or take other actions as subrecipients, recipients, and submissions. Updated summaries must appropriate, except for funds that have contractors) clearly state the period of also be posted quarterly on each been expended for eligible approved performance or date of completion; grantee’s Web site. activities.

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B. Housing and Related Floodplain ICC–700 National Green Building of substantial damage, or substantial Issues Standard, (v) EPA Indoor AirPlus improvement, as defined at 24 CFR 28. Housing-related eligibility waivers. (ENERGY STAR a prerequisite), or (vi) 55.2(b)(10), must be elevated with the The broadening of eligible activities any other equivalent comprehensive lowest floor, including the basement, at under the HCD Act is necessary green building program acceptable to least two feet above the 1 percent following major disasters in which large HUD. annual floodplain elevation. Residential c. Standards for rehabilitation of numbers of affordable housing units structures with no dwelling units and nonsubstantially damaged residential have been damaged or destroyed, as is no residents below two feet above the 1 buildings. For rehabilitation other than the case of the disasters eligible under percent annual floodplain, must be that described in subparagraph (a), elevated or floodproofed, in accordance this notice. above, grantees must follow the Therefore, 42 U.S.C. 5305(a)(24) is with FEMA floodproofing standards at guidelines specified in the HUD CPD waived to the extent necessary to allow: 44 CFR 60.3(c)(3)(ii) or successor Green Building Retrofit Checklist, (1) Homeownership assistance for standard, up to at least two feet above available at https:// the 1 percent annual floodplain. households with up to 120 percent of www.hudexchange.info/resource/3684/ All Critical Actions, as defined at 24 the area median income; and (2) down guidance-on-the-cpd-green-building- CFR 55.2(b)(3), within the 0.2 percent payment assistance for up to 100 checklist/. Grantees must apply these annual floodplain (or 500-year) percent of the down payment (42 U.S.C. guidelines to the extent applicable to floodplain must be elevated or 5305(a)(24)(D)). While homeownership the rehabilitation work undertaken, floodproofed (in accordance with the assistance may be provided to including the use of mold resistant FEMA standards) to the higher of the 0.2 households with up to 120 percent of products when replacing surfaces such percent annual floodplain flood the area median income, only those as drywall. When older or obsolete elevation or three feet above the 1 funds used to serve households with up products are replaced as part of the percent annual floodplain. If the 0.2 to 80 percent of the area median income rehabilitation work, rehabilitation is percent annual floodplain or elevation may qualify as meeting the low- and required to use ENERGY STAR-labeled, is unavailable for Critical Actions, and moderate-income person benefit WaterSense-labeled, or Federal Energy the structure is in the 1 percent annual national objective. Management Program (FEMP)- floodplain, then the structure must be In addition, 42 U.S.C. 5305(a) is designated products and appliances. For elevated or floodproofed at least three waived and alternative requirements example, if the furnace, air conditioner, feet above the 1 percent annual adopted to the extent necessary to windows, and appliances are replaced, floodplain level. Applicable State, local, permit new housing construction, and the replacements must be ENERGY and tribal codes and standards for to require the following construction STAR-labeled or FEMP-designated floodplain management that exceed standards on structures constructed or products; WaterSense-labeled products these requirements, including elevation, rehabilitated with CDBG–DR funds as (e.g., faucets, toilets, showerheads) must setbacks, and cumulative substantial part of activities eligible under 42 U.S.C. be used when water products are damage requirements, will be followed. 5305(a). All references to ‘‘substantial replaced. Rehabilitated housing may f. Broadband infrastructure in damage’’ and ‘‘substantial also implement measures recommended housing. Any new construction or improvement’’ shall be as defined in 44 in a Physical Condition Assessment substantial rehabilitation, as defined by CFR 59.1 unless otherwise noted: (PCA) or Green Physical Needs 24 CFR 5.100, of a building with more a. Green Building Standard for Assessment (GPNA). than four rental units must include Replacement and New Construction of d. Implementation of green building installation of broadband infrastructure, Residential Housing. Grantees must standards. (i) For construction projects except where the grantee documents meet the Green Building Standard in completed, under construction, or under that: (a) The location of the new this subparagraph for: (i) All new contract prior to the date that assistance construction or substantial construction of residential buildings is approved for the project, the grantee rehabilitation makes installation of and (ii) all replacement of substantially is encouraged to apply the applicable broadband infrastructure infeasible; (b) damaged residential buildings. standards to the extent feasible, but the the cost of installing broadband Replacement of residential buildings Green Building Standard is not infrastructure would result in a may include reconstruction (i.e., required; (ii) for specific required fundamental alteration in the nature of demolishing and rebuilding a housing equipment or materials for which an its program or activity or in an undue unit on the same lot in substantially the ENERGY STAR- or WaterSense-labeled financial burden; or (c) the structure of same manner) and may include changes or FEMP-designated product does not the housing to be substantially to structural elements such as flooring exist, the requirement to use such rehabilitated makes installation of systems, columns, or load bearing products does not apply. broadband infrastructure infeasible. interior or exterior walls. e. Elevation standards for new g. Resilient Home Construction b. Meaning of Green Building construction, repair of substantial Standard. Grantees are strongly Standard. For purposes of this notice, damage, or substantial improvement. encouraged to incorporate a Resilient the Green Building Standard means the The following elevation standards apply Home Construction Standard, meaning grantee will require that all construction to new construction, repair of that all construction covered by covered by subparagraph a, above, meet substantial damage, or substantial subparagraph (a) meet an industry- an industry-recognized standard that improvement of structures located in an recognized standard such as those set by has achieved certification under at least area delineated as a flood hazard area or the FORTIFIED HomeTM Gold level for one of the following programs: (i) equivalent in FEMA’s data source new construction of single-family, ENERGY STAR (Certified Homes or identified in 24 CFR 55.2(b)(1). All detached homes; and FORTIFIED Multifamily High-Rise), (ii) Enterprise structures, defined at 44 CFR 59.1, HomeTM Silver level for reconstruction Green Communities; (iii) LEED (New designed principally for residential use of the roof, windows and doors; or Construction, Homes, Midrise, Existing and located in the 1 percent annual (or FORTIFIED HomeTM Bronze level for Buildings Operations and Maintenance, 100-year) floodplain that receive repair or reconstruction of the roof; or or Neighborhood Development), (iv) assistance for new construction, repair any other equivalent comprehensive

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resilient or disaster resistant building requirement to give primary of high-risk areas, the grantee should program. Further, grantees are strongly consideration to unmet housing needs, consider how it can protect and sustain encouraged to meet the FORTIFIED the grantee must identify how it will the impacted community and its assets. HomeTM Bronze level standard for roof address the rehabilitation, Grantees must also weigh the benefits repair or reconstruction, for all reconstruction, replacement, and new and costs, including anticipated construction covered under construction of rental housing that is insurance costs, of redeveloping high- subparagraph c. FORTIFIED HomeTM is affordable to low or moderate income risk areas that were impacted by a a risk-reduction program providing households in the most impacted and disaster. Accordingly, grantees are construction standards for new homes distressed areas and identify funding to prohibited from offering incentives to and retrofit standards for existing specifically address the unmet needs return households to disaster-impacted homes, which will increase a home’s identified in its action plan pursuant to floodplains, unless the grantee can resilience to natural hazards, including paragraph A.2.a.3 of section VI of this demonstrate to HUD how it will resettle high wind, hail, and tropical storms. notice. In order to meet the low- such areas in a way that mitigates the Insurers can provide discounts for moderate housing national objective, risks of future disasters and increasing homeowner’s insurance for properties affordable rental housing funded under insurance costs resulting from certified as FORTIFIED. Grantees should this notice must be rented to a low and continued occupation of high-risk areas, advise property owners to contact their moderate income person at affordable through mechanisms that can reduce insurance agent for current information rents. The period that the rental housing risks and insurance costs, such as new on what discounts may be available. is affordable must be reasonably related land use development plans, building More information is also available at to the amount of CDBG–DR funding codes or construction requirements, https://disastersafety.org/fortified/ used for the rental housing. The grantee protective infrastructure development, fortified-home/. should impose the minimum period of or through restrictions on future disaster 29. Primary Consideration of Unmet affordability through recorded use assistance to such properties. Housing Needs. Grantees must propose restrictions or other mechanisms to 33. Limitation on emergency grant an allocation of CDBG–DR funds that ensure that rental housing remains payments—interim mortgage assistance. gives primary consideration to affordable for a stated period of time. 42 U.S.C. 5305(a)(8) is modified to addressing unmet housing needs. The action plan must, at a minimum, extend interim mortgage assistance to Grantees may also allocate funds for provide (1) a definition of ‘‘affordable qualified individuals from 3 months to infrastructure or economic rents’’; (2) the income limits for tenants up to 20 months. Interim mortgage revitalization, but in doing so grantees of rental housing; (3) and a minimum assistance is typically used in must identify how any remaining unmet period of affordability. Grantees may conjunction with a buyout program, or housing needs will be addressed or how adopt the HOME program standards at the rehabilitation or reconstruction of the economic revitalization or 24 CFR 92.252(a), (c), (e), and (f) to single-family housing, during which infrastructure activities will contribute comply with this requirement. mortgage payments may be due but the to the long-term recovery and 32. Housing incentives in disaster- home is uninhabitable. The time restoration of housing in the most affected communities. Incentive required for a household to complete impacted and distressed areas. payments are generally offered in the rebuilding process may often extend 30. Addressing Unmet Public Housing addition to other programs or funding beyond 3 months, during which Needs. The grantee must identify how it (such as insurance), to encourage mortgage payments may be due but the will address the rehabilitation, households to relocate in a suitable home is inhabitable. Thus, this interim mitigation, and new construction needs housing development or an area assistance will be critical for many of each disaster-impacted PHA within promoted by the community’s households facing financial hardship its jurisdiction, if applicable. The comprehensive recovery plan. For during this period. Grantees may use grantee must work directly with example, a grantee may offer an interim housing rehabilitation payments impacted PHAs in identifying necessary incentive payment (possibly in addition to expedite recovery assistance to and reasonable costs and ensure that to a buyout payment) for households homeowners, but must establish adequate funding from all available that volunteer to relocate outside of performance milestones for the sources is dedicated to addressing the floodplain or to a lower-risk area. rehabilitation that are to be met by the unmet needs of damaged public housing Therefore, 42 U.S.C. 5305(a) and homeowner in order to receive such (e.g., FEMA, insurance, and funds associated regulations are waived to the payments. A grantee using this available from HUD’s Office of Public extent necessary to allow the provision alternative requirement must document, and Indian Housing. In the of housing incentives. These grantees in its policies and procedures, how it rehabilitation, reconstruction and must maintain documentation, at least will determine the amount of assistance replacement of public housing provided at a programmatic level, describing how to be provided is necessary and for in the action plan pursuant to the amount of assistance was reasonable. paragraph A.2.a.3 of section VI of this determined to be necessary and 34. Rental assistance to displaced notice, each grantee must identify reasonable, and the incentives must be homeowners. The requirement of 42 funding to specifically address the in accordance with the grantee’s U.S.C. 5305(a)(8) are modified to unmet needs described in this approved action plan and published authorize grantees to extend rental subparagraph. Grantees are reminded program design(s). This waiver does not assistance payments on behalf of that public housing is eligible for FEMA permit a compensation program. If the qualified homeowners for up to 24 Public Assistance and must ensure that grantee requires the incentives to be months. After a disaster, many there is no duplication of benefits when used for a particular purpose by the homeowners encounter unanticipated using CDBG–DR funds to assist public household receiving the assistance, then delays and scarcity of available housing. Information on the PHAs the eligible use for that activity will be construction and/or elevation impacted by the disaster is available on that required use, not an incentive. contractors in their area. While the Department’s Web site. In undertaking a larger scale undergoing rehabilitation of their 31. Addressing Unmet Affordable migration or relocation recovery effort homes, most of these homeowners are Rental Housing Needs. As part of the that is intended to move households out forced to pay not only a mortgage, but

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a rental payment as well since their compensation at an amount greater than that is compatible with open space, homes are not inhabitable. In other the post-disaster FMV. When the recreational, or floodplain and wetlands cases, homeowners who have paid off purchase price exceeds the current management practices. their mortgages must accommodate this FMV, any CDBG–DR funds in excess of 2. No new structure will be erected on additional rental expense into their the FMV are considered assistance to property acquired, accepted, or from budgets. In order to provide temporary the seller, thus making the seller a which a structure was removed under financial assistance to these families, beneficiary of CDBG–DR assistance. If the acquisition or relocation program many of whom are low- or moderate- the seller receives assistance as part of other than: (a) A public facility that is income households, HUD is modifying the purchase price, this may have open on all sides and functionally the requirements at 42 U.S.C. 5305(a)(8) implications for duplication of benefits related to a designated open space (e.g., to the extent necessary to allow grantees calculations or for demonstrating a park, campground, or outdoor to provide up to 24 months of national objective criteria, as discussed recreation area); (b) a rest room; or (c) homeowner rental assistance to eligible below. However, a program that a flood control structure, provided that applicants within the grantee’s single- provides post-disaster FMV to buyout structure does not reduce valley storage, family rehabilitation/reconstruction applicants merely provides the actual increase erosive velocities, or increase programs. In the case of rehabilitation value of the property; thus, the seller is flood heights on the opposite bank, programs in which the homeowner is not considered a beneficiary of CDBG– upstream, or downstream and that the responsible for construction oversight, DR assistance. local floodplain manager approves, in the grantee must establish performance Regardless of purchase price, all writing, before the commencement of milestones for the rehabilitation that are buyout activities are a type of the construction of the structure. to be met by the homeowner in order to acquisition of real property (as 3. After receipt of the assistance, with receive such payments. A grantee using permitted by 42 U.S.C. 5305(a)(1)). respect to any property acquired, this alternative requirement must However, only acquisitions that meet accepted, or from which a structure was document, in its policies and the definition of a ‘‘buyout’’ are subject removed under the acquisition or procedures, how it will determine the to the post-acquisition land use relocation program, no subsequent amount of assistance to be provided is restrictions imposed by the applicable application for additional disaster necessary and reasonable. Homeowners prior notices. The key factor in assistance for any purpose or to repair receiving interim mortgage assistance determining whether the acquisition is damage or make improvements of any are not eligible for rental assistance. a buyout is whether the intent of the sort will be made by the recipient to any 35. Acquisition of real property; flood purchase is to reduce risk from future Federal entity in perpetuity. and other buyouts. Grantees under this flooding or to reduce the risk from the The entity acquiring the property may notice are able to carry out property hazard that lead to the property’s lease it to adjacent property owners or acquisition for a variety of purposes. Disaster Risk Reduction Area other parties for compatible uses in However, the term ‘‘buyouts’’ as designation. To conduct a buyout in a return for a maintenance agreement. referenced in this notice refers to Disaster Risk Reduction Area, the Although Federal policy encourages acquisition of properties located in a grantee must establish criteria in its leasing rather than selling such floodway or floodplain that is intended policies and procedures to designate the property, the property may also be sold. to reduce risk from future flooding or area subject to the buyout, pursuant to In all cases, a deed restriction or the acquisition of properties in Disaster the following requirements: (1) The covenant running with the property Risk Reduction Areas as designated by hazard must have been caused or must require that the buyout property be the grantee and defined below. HUD is exacerbated by the Presidentially dedicated and maintained for providing alternative requirements for declared disaster for which the grantee compatible uses in perpetuity. consistency with the application of received its CDBG–DR allocation; (2) the 4. Grantees have the discretion to other Federal resources commonly used hazard must be a predictable determine an appropriate valuation for this type of activity. environmental threat to the safety and method (including the use of pre-flood Grantees are encouraged to use well-being of program beneficiaries, as value or post-flood value as a basis for buyouts strategically, as a means of evidenced by the best available data and property value). However, in using acquiring contiguous parcels of land for science; and (3) the Disaster Risk CDBG–DR funds for buyouts, the uses compatible with open space, Reduction Area must be clearly grantee must uniformly apply recreational, natural floodplain delineated so that HUD and the public whichever valuation method it chooses. functions, other ecosystem restoration, may easily determine which properties 5. All buyout activities must be or wetlands management practices. To are located within the designated area. classified using the ‘‘buyout’’ activity the maximum extent practicable, The distinction between buyouts and type in the DRGR system. grantees should avoid circumstances in other types of acquisitions is important, 6. Any State grantee implementing a which parcels that could not be because grantees may only redevelop an buyout program or activity must consult acquired through a buyout remain acquired property if the property is not with affected UGLGs. alongside parcels that have been acquired through a buyout program (i.e., 7. When undertaking buyout acquired through the grantee’s buyout the purpose of acquisition was activities, in order to demonstrate that a program. something other than risk reduction). buyout meets the low- and moderate- a. Clarification of ‘‘Buyout’’ and ‘‘Real When acquisitions are not acquired income housing national objective, Property Acquisition’’ activities. through a buyout program, the purchase grantees must meet all requirements of Grantees that choose to undertake a price must be consistent with applicable the HCD Act and applicable regulatory buyout program have the discretion to uniform cost principles (and the pre- criteria described below. Grantees are determine the appropriate valuation disaster FMV may not be used). encouraged to consult with HUD prior method, including paying either pre- b. Buyout requirements: to undertaking a buyout program with disaster or post-disaster fair market 1. Any property acquired, accepted, or the intent of using the low- and value (FMV). In most cases, a program from which a structure will be removed moderate-income housing (LMH) that provides pre-disaster FMV to pursuant to the project will be dedicated national objective. 42 U.S.C. 5305(c)(3) buyout applicants provides and maintained in perpetuity for a use provides that any assisted activity under

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this chapter that involves the c. Redevelopment of acquired of the Flood Disaster Protection Act of acquisition or rehabilitation of property properties. 1973 (42 U.S.C. 4012a) mandates the to provide housing shall be considered 1. Properties purchased through a purchase of flood insurance protection to benefit persons of low- and moderate- buyout program may not typically be for any HUD-assisted property within a income only to the extent such housing redeveloped, with a few exceptions. (see Special Flood Hazard Area. HUD also will, upon completion, be occupied by subparagraph a.2 above). recommends the purchase of flood such persons. In addition, the State 2. Grantees may redevelop an insurance outside of a Special Flood CDBG regulations at 24 CFR acquired property if the property is not Hazard Area for properties that have 570.483(b)(3) and entitlement CDBG acquired through a buyout program and been damaged by a flood, to better regulations at 24 CFR 570.208(a)(3) the purchase price is based on the protect property owners from the apply the LMH national objective to an property’s post-disaster value, economic risks of future floods and eligible activity carried out for the consistent with applicable cost reduce dependence on Federal disaster purpose of providing or improving principles (the pre-disaster value may assistance in the future, but this is not permanent residential structures that, not be used). In addition to the purchase a requirement. upon completion, will be occupied by price, grantees may opt to provide b. Future Federal assistance to owners low- and moderate-income households. relocation assistance to the owner of a remaining in a floodplain. Therefore, a buyout program that merely property that will be redeveloped if the 1. Section 582 of the National Flood pays homeowners to leave their existing property is purchased by the grantee or Insurance Reform Act of 1994, as homes does not result in a low- and subrecipient through voluntary amended, (42 U.S.C. 5154a) prohibits moderate-income household occupying acquisition, and the owner’s need for flood disaster assistance in certain a residential structure and, thus, cannot additional assistance is documented. circumstances. In general, it provides meet the requirements of the LMH 3. In carrying out acquisition that no Federal disaster relief assistance national objective. Buyout programs that activities, grantees must ensure they are made available in a flood disaster area assist low- and moderate-income in compliance with their long-term may be used to make a payment redevelopment plans. persons can be structured in one of the (including any loan assistance payment) 36. Alternative requirement for following ways: to a person for repair, replacement, or housing rehabilitation—assistance for restoration for damage to any personal, (a) The buyout program combines the second homes. The Department is residential, or commercial property if acquisition of properties with another instituting an alternative requirement to that person at any time has received direct benefit—Low- and Moderate- the rehabilitation provisions at 42 Federal flood disaster assistance that Income housing activity, such as down U.S.C. 5305(a) as follows: Properties was conditioned on the person first payment assistance—that results in that served as second homes at the time having obtained flood insurance under occupancy and otherwise meets the of the disaster, or following the disaster, applicable Federal law and the person applicable LMH national objective are not eligible for rehabilitation has subsequently failed to obtain and criteria in 24 CFR part 570 (e.g., if the assistance, residential incentives, or to maintain flood insurance as required structure contains more than two participate in a CDBG–DR buyout under applicable Federal law on such dwelling units, at least 51 percent of the program (as defined by this notice). property. This means that a grantee may units must be occupied by low- and ‘‘Second homes’’ are defined in Internal not provide disaster assistance for the moderate-income households; Revenue Service (IRS) Publication 936 repair, replacement, or restoration to a (b) The program meets the low- and (Mortgage Interest Deductions). person who has failed to meet this moderate income area benefit criteria to 37. Flood insurance. Grantees, requirement and must implement a demonstrate national objective recipients, and subrecipients must process to check and monitor for compliance, provided that the grantee implement procedures and mechanisms compliance. can document that the properties to ensure that assisted property owners 2. Section 582 also imposes a acquired through buyouts will be used comply with all flood insurance responsibility on a grantee that receives in a way that benefits all of the residents requirements, including the purchase CDBG–DR funds or that designates in a particular area where at least 51 and notification requirements described annually appropriated CDBG funds for percent of the residents are low- and below, prior to providing assistance. For disaster recovery. That responsibility is moderate-income persons. When using additional information, please consult to inform property owners receiving the area benefit approach, grantees must with the field environmental officer in disaster assistance that triggers the flood define the service area based on the end the local HUD field office or review the insurance purchase requirement that use of the buyout properties; or guidance on flood insurance they have a statutory responsibility to (c) The program meets the criteria for requirements on HUD’s Web site. notify any transferee of the requirement the low- and moderate-income limited a. Flood insurance purchase to obtain and maintain flood insurance, clientele national objective, including requirements. HUD does not prohibit and that the transferring owner may be the prohibition on the use of the limited the use of CDBG–DR funds for existing liable if he or she fails to do so. These clientele national objective when an residential buildings in a Special Flood requirements are enumerated at http:// activity’s benefits are available to all Hazard Area (or 100-year floodplain). uscode.house.gov/view.xhtml?req= residents of the area. A buyout program However, Federal, State, local, and granuleid:U.S.C.-prelim-title42-section could meet the national objective tribal laws and regulations related to 5154a&num=0&edition=prelim. criteria for the limited clientele national both flood insurance and floodplain objective if it restricts buyout program management must be followed, as C. Infrastructure (Public Facilities, eligibility to exclusively low- and applicable. With respect to flood Public Improvements, Public Buildings) moderate-income persons, and the insurance, a HUD-assisted homeowner 38. Buildings for the general conduct buyout provides an actual benefit to the for a property located in a Special Flood of government. 42 U.S.C. 5305(a) is low- and moderate income sellers by Hazard Area must obtain and maintain waived to the extent necessary to allow providing pre-disaster valuation flood insurance in the amount and grantees to fund the rehabilitation or uniformly to those who participate in duration prescribed by FEMA’s National reconstruction of public buildings that the program. Flood Insurance Program. Section 102(a) are otherwise ineligible. HUD believes

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this waiver is consistent with the overall requirement—in which grantees must 44. Waiver and modification of the job purposes of the HCD Act, and is review the annual wages or salary of a relocation clause to permit assistance to necessary for many grantees to job in comparison to the person’s total help a business return. CDBG adequately address critical household income and size (i.e., the requirements prevent program infrastructure needs created by the number of persons). Thus, it streamlines participants from providing assistance disaster. the documentation process because it to a business to relocate from one labor 39. Elevation of Nonresidential allows the collection of wage data for market area to another if the relocation Structures. Nonresidential structures each position created or retained from is likely to result in a significant loss of must be elevated or floodproofed, in the assisted businesses, rather than from jobs in the labor market from which the accordance with FEMA floodproofing each individual household. business moved. This prohibition can be standards at 44 CFR 60.3(c)(3)(ii) or 42. Public benefit for certain a critical barrier to reestablishing and successor standard, up to at least two Economic Revitalization activities. The rebuilding a displaced employment base feet above the 1 percent annual public benefit provisions set standards after a major disaster. Therefore, 42 floodplain. All Critical Actions, as for individual economic revitalization U.S.C. 5305(h), 24 CFR 570.210, and 24 defined at 24 CFR 55.2(b)(3), within the activities (such as a single loan to a CFR 570.482 are waived to allow a 0.2 percent annual floodplain (or 500- business) and for economic grantee to provide assistance to any year) floodplain must be elevated or revitalization activities in the aggregate. business that was operating in the floodproofed (in accordance with the Currently, public benefit standards limit disaster-declared labor market area FEMA standards) to the higher of the 0.2 the amount of CDBG assistance per job before the incident date of the percent annual floodplain flood retained or created, or the amount of applicable disaster and has since elevation or three feet above the 1 CDBG assistance per low- and moderate- moved, in whole or in part, from the percent annual floodplain. If the 0.2 income person to which goods or affected area to another State or to a percent annual floodplain or elevation services are provided by the activity. labor market area within the same State is unavailable for Critical Actions, and These dollar thresholds were set two to continue business. the structure is in the 1 percent annual decades ago and can impede recovery 45. Prioritizing small businesses. To floodplain, then the structure must be by limiting the amount of assistance the target assistance to small businesses, the elevated or floodproofed at least three grantee may provide to a critical Department is instituting an alternative feet above the 1 percent annual activity. requirement to the provisions at 42 floodplain level. Applicable State, local, This notice waives the public benefit U.S.C. 5305(a) to require grantees to and tribal codes and standards for standards at 42 U.S.C. 5305(e)(3), 24 prioritize assisting businesses that meet floodplain management that exceed CFR 570.482(f)(1), (f)(2), (f)(3), (f)(4)(i), the definition of a small business as these requirements, including elevation, (f)(5), and (f)(6) for economic defined by SBA at 13 CFR part 121 or, setbacks, and cumulative substantial revitalization activities designed to for businesses engaged in ‘‘farming damage requirements, will be followed. create or retain jobs or businesses operations’’ as defined at 7 CFR 1400.3, 40. Use of CDBG as Match. (including, but not limited to, long-term, and that meet the United States Additionally, as provided by the HCD short-term, and infrastructure projects). Department of Agriculture Farm Service Act, funds may be used to meet a However, grantees shall report and Agency (FSA), criteria that are described matching, share, or contribution maintain documentation on the creation at 7 CFR 1400.500, which are used by requirement for any other Federal and retention of total jobs; the number the FSA to determine eligibility for program when used to carry out an of jobs within certain salary ranges; the certain assistance programs. eligible CDBG–DR activity. This average amount of assistance provided 46. Prohibiting assistance to private includes programs or activities per job, by activity or program; and the utilities. Funds made available under administered by the Federal Emergency types of jobs. Paragraph (g) of 24 CFR this notice may not be used to assist a Management Agency (FEMA) or the U.S. 570.482 is also waived to the extent privately owned utility for any purpose. Army Corps of Engineers (USACE). By these provisions are related to public law, the amount of CDBG–DR funds that benefit. E. Certifications and Collection of may be contributed to a USACE project 43. Clarifying note on Section 3 Information is $250,000 or less. Note that the resident eligibility and documentation 47. Certifications waiver and Appropriations Act prohibits the use of requirements. The definition of ‘‘low- alternative requirement. 24 CFR 91.325 CDBG–DR funds for any activity income persons’’ in 12 U.S.C. 1701u and is waived. Each State receiving a direct reimbursable by, or for which funds are 24 CFR 135.5 is the basis for eligibility allocation under this notice must make also made available by FEMA or as a section 3 resident. This notice the following certifications with its USACE. authorizes grantees to determine that an action plan: individual is eligible to be considered a a. The grantee certifies that it has in D. Economic Revitalization. section 3 resident if the annual wages or effect and is following a residential anti- 41. National Objective Documentation salary of the person are at, or under, the displacement and relocation assistance for Economic Revitalization Activities. HUD-established income limit for a one- plan in connection with any activity 24 CFR 570.483(b)(4)(i) is waived to person family for the jurisdiction. This assisted with funding under the CDBG allow the grantees under this notice to authority does not impact other section program. identify the low- and moderate-income 3 resident eligibility requirements in 24 b. The grantee certifies its compliance jobs benefit by documenting, for each CFR 135.5. All direct recipients of with restrictions on lobbying required person employed, the name of the CDBG–DR funding must submit form by 24 CFR part 87, together with business, type of job, and the annual HUD–60002 annually through the disclosure forms, if required by part 87. wages or salary of the job. HUD will Section 3 Performance Evaluation and c. The grantee certifies that the action consider the person income-qualified if Registry System (SPEARS) which can be plan for disaster recovery is authorized the annual wages or salary of the job is found on HUD’s Web site: http://portal. under State and local law (as applicable) at or under the HUD-established income hud.gov/hudportal/HUD?src=/program_ and that the grantee, and any entity or limit for a one-person family. This offices/fair_housing_equal_opp/ entities designated by the grantee, and method replaces the standard CDBG section3/section3/spears. any contractor, subrecipient, or

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designated public agency carrying out Federal Register notice) of the grant Act applicable to funds allocated by this an activity with CDBG–DR funds, amount is expended for activities that notice, and certifies to the accuracy of possess(es) the legal authority to carry benefit such persons. its certification documentation out the program for which it is seeking 4. The grantee will not attempt to referenced at A.1.a. under section VI funding, in accordance with applicable recover any capital costs of public and its risk analysis document HUD regulations and this notice. The improvements assisted with CDBG–DR referenced at A.1.b. under section VI. grantee certifies that activities to be grant funds, by assessing any amount m. The grantee certifies that it will not undertaken with funds under this notice against properties owned and occupied use CDBG–DR funds for any activity in are consistent with its action plan. by persons of low- and moderate- an area identified as flood prone for d. The grantee certifies that it will income, including any fee charged or land use or hazard mitigation planning comply with the acquisition and assessment made as a condition of purposes by the State, local, or tribal relocation requirements of the URA, as obtaining access to such public government or delineated as a Special amended, and implementing regulations improvements, unless: (a) Disaster Flood Hazard Area in FEMA’s most at 49 CFR part 24, except where waivers recovery grant funds are used to pay the current flood advisory maps, unless it or alternative requirements are provided proportion of such fee or assessment also ensures that the action is designed for in this notice. that relates to the capital costs of such or modified to minimize harm to or e. The grantee certifies that it will public improvements that are financed within the floodplain, in accordance comply with section 3 of the Housing from revenue sources other than under with Executive Order 11988 and 24 CFR and Urban Development Act of 1968 (12 this title; or (b) for purposes of assessing part 55. The relevant data source for this U.S.C. 1701u), and implementing any amount against properties owned provision is the State, local, and tribal regulations at 24 CFR part 135. and occupied by persons of moderate government land use regulations and f. The grantee certifies that it is income, the grantee certifies to the hazard mitigation plans and the latest- following a detailed citizen Secretary that it lacks sufficient CDBG issued FEMA data or guidance, which participation plan that satisfies the funds (in any form) to comply with the includes advisory data (such as requirements of 24 CFR 91.115 (except requirements of clause (a). Advisory Base Flood Elevations) or as provided for in notices providing i. The grantee certifies that the grant preliminary and final Flood Insurance waivers and alternative requirements for will be conducted and administered in Rate Maps. this grant). Also, each UGLG receiving conformity with title VI of the Civil n. The grantee certifies that its assistance from a State grantee must Rights Act of 1964 (42 U.S.C. 2000d). activities concerning lead-based paint follow a detailed citizen participation j. The grantee certifies that the grant will comply with the requirements of 24 plan that satisfies the requirements of 24 will be conducted and administered in CFR part 35, subparts A, B, J, K, and R. CFR 570.486 (except as provided for in conformity with the Fair Housing Act o. The grantee certifies that it will notices providing waivers and (42 U.S.C. 3601–3619) and comply with environmental alternative requirements for this grant). implementing regulations, and that it requirements at 24 CFR part 58. g. The grantee certifies that it has will affirmatively further fair housing, p. The grantee certifies that it will consulted with affected UGLGs in which means that it will take comply with applicable laws. counties designated in covered major meaningful actions to further the goals disaster declarations in the non- identified in an AFH conducted in VII. Duration of Funding entitlement, entitlement, and tribal accordance with the requirements of 24 The Appropriations Act directs that areas of the State in determining the CFR 5.150 through 5.180, and that it these funds be available until expended. uses of funds, including the method of will take no action that is materially However, in accordance with 31 U.S.C. distribution of funding, or activities inconsistent with its obligation to 1555, HUD shall close the appropriation carried out directly by the State. affirmatively further fair housing. account and cancel any remaining h. The grantee certifies that it is k. The grantee certifies that it has obligated or unobligated balance if the complying with each of the following adopted and is enforcing the following Secretary or the President determines criteria: policies, and, in addition, States that the purposes for which the 1. Funds will be used solely for receiving a direct award must certify appropriation has been made have been necessary expenses related to disaster that they will require UGLGs that carried out and no disbursements have relief, long-term recovery, restoration of receive grant funds to certify that they been made against the appropriation for infrastructure and housing and have adopted and are enforcing: two consecutive fiscal years. In such economic revitalization in the most 1. A policy prohibiting the use of case, the funds shall not be available for impacted and distressed areas for which excessive force by law enforcement obligation or expenditure for any the President declared a major disaster agencies within its jurisdiction against purpose after the account is closed. in 2016 pursuant to the Robert T. any individuals engaged in nonviolent Stafford Disaster Relief and Emergency civil rights demonstrations; and VIII. Catalog of Federal Domestic Assistance Act of 1974 (42 U.S.C. 5121 2. A policy of enforcing applicable Assistance et seq.) but prior to September 29, 2016. State and local laws against physically The Catalog of Federal Domestic 2. With respect to activities expected barring entrance to or exit from a facility Assistance numbers for the disaster to be assisted with CDBG–DR funds, the or location that is the subject of such recovery grants under this notice are as action plan has been developed so as to nonviolent civil rights demonstrations follows: 14.218; 14.228. give the maximum feasible priority to within its jurisdiction. activities that will benefit low- and l. The grantee certifies that it (and any IX. Finding of No Significant Impact moderate-income families. subrecipient or administering entity) A Finding of No Significant Impact 3. The aggregate use of CDBG–DR currently has or will develop and (FONSI) with respect to the funds shall principally benefit low- and maintain the capacity to carry out environment has been made in moderate-income families in a manner disaster recovery activities in a timely accordance with HUD regulations at 24 that ensures that at least 70 percent (or manner and that the grantee has CFR part 50, which implement section another percentage permitted by HUD in reviewed the requirements of this notice 102(2)(C) of the National Environmental a waiver published in an applicable and requirements of the Appropriations Policy Act of 1969 (42 U.S.C.

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4332(2)(C)). The FONSI is available for housing needs’’ as the number of housing For each household determined to have public inspection between 8 a.m. and 5 units with unmet needs times the estimated unmet housing needs (as described above), p.m. weekdays in the Regulations cost to repair those units less repair funds their estimated average unmet housing need Division, Office of General Counsel, already provided by FEMA, where: less assumed assistance from FEMA, SBA, Each of the FEMA inspected owner units and Insurance was calculated at $27,455 for Department of Housing and Urban are categorized by HUD into one of five major damage (low); $45,688 for major Development, 451 7th Street SW., Room categories: damage (high); and $59,493 for severe 10276, Washington, DC 20410–0500. Æ Minor-Low: Less than $3,000 of FEMA damage. Due to security measures at the HUD inspected real property damage. Most Impacted and Distressed Designation. Headquarters building, an advance Æ Minor-High: $3,000 to $7,999 of FEMA President Obama signed the Continuing appointment to review the docket file inspected real property damage. Resolution into law on September 29, 2016 Æ must be scheduled by calling the Major-Low: $8,000 to $14,999 of FEMA and 33 disasters had received major Regulations Division at 202–708–3055 inspected real property damage. declarations in calendar year 2016 by that Æ Major-High: $15,000 to $28,800 of FEMA date. To meet the statutory requirement that (this is not a toll-free number). Hearing- inspected real property damage and/or 4 to the funds be targeted to ‘‘the most impacted or speech-impaired individuals may 6 feet of flooding on the first floor. or distressed areas,’’ this allocation: access this number through TTY by Æ Severe: Greater than $28,800 of FEMA (1) Limits allocations to those disasters calling the Federal Relay Service at 800– inspected real property damage or where FEMA had determined the damage 877–8339 (this is a toll-free number). determined destroyed and/or 6 or more feet was sufficient to declare the disaster as of flooding on the first floor. eligible to receive Individual and Households Dated: November 15, 2016. To meet the statutory requirement of ‘‘most Program (IHP) funding. Only 11 of 33 Nani A. Coloretti, impacted’’ in this legislative language, homes disasters that were declared in 2016 have an Deputy Secretary. are determined to have a high level of IHP designation. damage if they have damage of ‘‘major-low’’ (2) Limits the allocations to data from Appendix A—Allocation of CDBG–DR or higher. That is, they have a real property counties with high levels of damage. For this Funds to Most Impacted and Distressed FEMA inspected damage of $8,000 or allocation, HUD is using the amount of Areas Due to 2016 Federally Declared flooding over 1 foot. Furthermore, a serious unmet housing need as its measure of Disasters Thru September 29, 2016 homeowner is determined to have unmet concentrated damage and limits the data needs if they reported damage and no used for the allocation only to counties This section describes the methods behind insurance to cover that damage. exceeding a ‘‘natural break’’ in the data for HUD’s allocation of $500 million in the 2016 FEMA does not inspect rental units for real their total amount of serious unmet housing CDBG–DR Funds. Section 145(a) of Division property damage so personal property needs. For the 2016 events, the serious unmet C of the Continuing Appropriations Act, damage is used as a proxy for unit damage. housing needs break at the county level Public Law 114–223, enacted on September Each of the FEMA inspected renter units are occurs at $25 million. 29, 2016, appropriates $500 million through categorized by HUD into one of five (3) Among disasters with data meeting the the Community Development Block Grant categories: first two thresholds, HUD limits the (CDBG) program for necessary expenses for Æ allocation to jurisdictions that have authorized activities related to disaster relief, Minor-Low: Less than $1,000 of FEMA inspected personal property damage. substantially higher unmet needs than other long-term recovery, restoration of Æ jurisdictions. Louisiana, Texas, and West infrastructure and housing, and economic Minor-High: $1,000 to $1,999 of FEMA inspected personal property damage. Virginia have far greater unmet needs than revitalization in the most impacted and Æ other jurisdictions affected by major disasters distressed areas resulting from a major Major-Low: $2,000 to $3,499 of FEMA inspected personal property damage. declared since January 1, 2016. disaster declared in 2016 and occurring prior Æ to September 29, 2016. Major-High: $3,500 to $7,499 of FEMA [FR Doc. 2016–27969 Filed 11–18–16; 8:45 am] This section requires that funds be inspected personal property damage or 4 to BILLING CODE 4210–67–P 6 feet of flooding on the first floor. awarded directly to the State or unit of Æ general local government at the discretion of Severe: Greater than $7,500 of FEMA the Secretary. The key underlying metric inspected personal property damage or DEPARTMENT OF HOUSING AND determined destroyed and/or 6 or more feet used in the allocation process is the unmet URBAN DEVELOPMENT need that remains to be addressed from of flooding on the first floor. qualifying disasters. Although funds may be For rental properties, to meet the statutory [Docket No. FR- 5849–N–10] used to address infrastructure and economic requirement of ‘‘most impacted’’ in this revitalization needs in addition to housing, legislative language, homes are determined to Notice of a Federal Advisory this allocation only uses unmet needs related have a high level of damage if they have Committee; Manufactured Housing to housing to determine the most impacted damage of ‘‘major-low’’ or higher. That is, Consensus Committee; they have a FEMA personal property damage and distressed areas that are eligible for Teleconference grants and then to determine the amount of assessment of $2,000 or greater or flooding funding to be made available to each grantee. over 1 foot. Furthermore, landlords are AGENCY: Office of the Assistant HUD only uses unmet housing needs for two presumed to have adequate insurance Secretary for Housing—Federal Housing reasons: (1) There is very limited data on coverage unless the unit is occupied by a Commissioner, Department of Housing renter with income of $20,000 or less. Units infrastructure and economic revitalization and Urban Development (HUD). unmet needs for the largest of the eligible that are occupied by a tenant with income disasters, and (2) the total funding provided less than $20,000 are used to calculate likely ACTION: Notice of a Federal Advisory through this allocation is limited relative to unmet needs for affordable rental housing. Committee Meeting: Manufactured need. The average cost to fully repair a home for Housing Consensus Committee (MHCC). Methods for estimating unmet housing a specific disaster to code within each of the needs. The data HUD staff have identified as damage categories noted above is calculated SUMMARY: This notice sets forth the being available to calculate unmet needs for using the average real property damage repair schedule and proposed agenda for a qualifying disasters come from the FEMA costs determined by the Small Business teleconference meeting of the MHCC. Individual Assistance program data on Administration for its disaster loan program The teleconference meeting is open to housing-unit damage as of September 28, for the subset of homes inspected by both the public. The agenda provides an 2016. SBA and FEMA for 2011 to 2013 disasters. opportunity for citizens to comment on The core data on housing damage for both Because SBA is inspecting for full repair the unmet housing needs calculation and the costs, it is presumed to reflect the full cost the business before the MHCC. concentrated damage are based on home to repair the home, which is generally more DATES: The teleconference meeting will inspection data for FEMA’s Individual than the FEMA estimates on the cost to make be held on December 12, 2016, 1:00 p.m. Assistance program. HUD calculates ‘‘unmet the home habitable. to 4:00 p.m. Eastern Standard Time

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