Additional Waivers Granted to and Alternative Requirements for the State of Louisiana Under Public Laws 109-148 and 109-234, 10014-10018 [E7-3830]
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Federal Register / Vol. 72, No. 43 / Tuesday, March 6, 2007 / Notices
Authority To Grant Waivers
specify alternative requirements for, any
provision of any statute or regulation
that the Secretary administers in
connection with the obligation by the
Secretary or use by the recipient of these
funds and guarantees, except for
requirements related to fair housing,
nondiscrimination, labor standards, and
the environment, upon a request by the
State and a finding by the Secretary that
such a waiver would not be inconsistent
with the overall purpose of the statute.
The following waivers and alternative
requirements for funds provided under
either 2006 Act are in response to
requests from the State of Louisiana. A
waiver or alternative requirement will
apply to assistance provided under
either Act unless otherwise specified in
this Notice.
The Secretary finds that the following
waivers and alternative requirements, as
described below, are not inconsistent
with the overall purpose of Title I of the
Housing and Community Development
Act of 1974, as amended, or the
Cranston-Gonzalez National Affordable
Housing Act, as amended.
Under the requirements of the
Department of Housing and Urban
Development Act, as amended (42
U.S.C. 3535(q)), regulatory waivers must
be published in the Federal Register.
Except as described in this and other
notices applicable to this grant,
statutory and regulatory provisions
governing the Community Development
Block Grant program for states,
including those at 24 CFR part 570,
shall apply to the use of these funds. In
accordance with the appropriations acts,
HUD will reconsider every waiver in
this Notice on the two-year anniversary
of the day this Notice is published.
The first federal fiscal year 2006
supplemental appropriation for the
Community Development Block Grant
(CDBG) program was the Department of
Defense, Emergency Supplemental
Appropriations to Address Hurricanes
in the Gulf of Mexico, and Pandemic
Influenza Act, 2006 (Pub. L. 109–148,
approved December 30, 2005). The
second 2006 supplemental
appropriation was Chapter 9 of Title II
of the Emergency Supplemental
Appropriations Act for Defense, the
Global War on Terror, and Hurricane
Recovery, 2006 (Pub. L. 109–234,
approved June 15, 2006) which
appropriates $5.2 billion in Community
Development Block Grant funds for
necessary expenses related to disaster
relief, long-term recovery, and
restoration of infrastructure directly
related to the consequences of the
covered disasters. The 2006 Acts
authorize the Secretary to waive, or
Waiver Justification
In general, waivers already granted to
the state of Louisiana and alternative
requirements already specified for
CDBG disaster recovery grant funds
provided under Public Law 109–148
and Public Law 109–234 apply. The
notices in which these prior waivers
and alternative requirements applicable
to Louisiana appear are 71 FR 7666,
published February 13, 2006; 71 FR
34451, published June 14, 2006; and 71
FR 63337, published October 30, 2006.
The provisions of this Notice do not
apply to funds provided under the
regular CDBG program. The provisions
provide additional flexibility in program
design and implementation and
implement statutory requirements
unique to these appropriations.
Eligibility—buildings for the general
conduct of government. The state
requested additional flexibility in the
previously granted alternative
DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT
[Docket No. FR–5089–N–03]
Additional Waivers Granted to and
Alternative Requirements for the State
of Louisiana Under Public Laws 109–
148 and 109–234
Office of the Secretary, HUD.
Notice of waivers and
alternative requirements.
AGENCY:
ACTION:
SUMMARY: As described in the
SUPPLEMENTARY INFORMATION section
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of
this Notice, HUD is authorized by
statute to waive statutory and regulatory
requirements and specify alternative
requirements for this grant, upon the
request of the state grantee. This Notice
describes the additional waivers for the
disaster recovery grants made to the
state of Louisiana under the subject
appropriations acts.
DATES: Effective Date: March 12, 2007.
FOR FURTHER INFORMATION CONTACT:
Clifford Taffet, Acting Director, Disaster
Recovery and Special Issues Division,
Office of Block Grant Assistance,
Department of Housing and Urban
Development, Room 7286, 451 Seventh
Street, SW., Washington, DC 20410,
telephone number (202) 708–2684.
Persons with hearing or speech
impairments may access this number
via TTY by calling the Federal
Information Relay Service at (800) 877–
8339. FAX inquiries may be sent to Mr.
Taffet at (202) 708–1744. (Except for the
‘‘800’’ number, these telephone numbers
are not toll-free.)
SUPPLEMENTARY INFORMATION:
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requirement that permitted funding the
cost share for the FEMA Public
Assistance or Hazard Mitigation Grant
Program when disaster recovery CDBG
funds assist buildings for the general
conduct of government. The requested
change will allow the state to fund more
than just the amount of the FEMA cost
share for a project in this activity
category. The change will also permit
use of grant funds for allowable
rehabilitation, construction, or
reconstruction costs in otherwise FEMA
eligible projects when these costs are
ineligible for FEMA assistance, such as
the costs to assist rehabilitation or
reconstruction of qualifying buildings
that were underinsured or uninsured,
and to allow funding to bring a selected
building up to code or to allow it to
receive a certificate of occupancy and be
put into service. HUD considered the
state’s request and agreed that it is
consistent with the overall purposes of
the 1974 Act for the state to be allowed
to use the grant funds under this notice
to fund critical projects involving repair
of buildings for the general conduct of
government that the state has selected in
accordance with the method described
in its HUD-approved Action Plan for
Disaster Recovery and that the state has
determined have substantial value in
promoting disaster recovery, even if the
funding provided under this notice
assists some costs that do not qualify as
cost share for the FEMA Public
Assistance or Mitigation programs.
Eligibility—Research
Commercialization and Educational
Enhancement. According to the state’s
proposed Action Plan amendment, the
Research Commercialization and
Educational Enhancement (RCCE)
Program is ‘‘intended to restore the
economic impact of scientific and
technology research facilities within
higher education institutions in the
most severely affected areas.’’ Activities
under this program may include, but are
not limited to, stipends for students,
related training, purchase of critical
equipment, stipends for research
professionals, and development of a
master strategic plan for meeting the
program’s intent.
Normally, HUD provides funds to a
research institution or a university
either to increase its capacity to carry
out a CDBG activity such as
rehabilitation of housing, to carry out
specific research, or to provide training.
By contrast, the RCEE program is
directed at stabilizing and increasing
research and education sector
employment and functions themselves.
The state has stated that this sector was
a significant regional job generator
before the covered disasters, that
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Hurricane Katrina and its aftermath
critically damaged many aspects of the
research sector, and that the RCEE
program is a critical component of the
state’s long-term economic recovery.
To accomplish its stated intention, the
State is funding strategic planning
followed by a pilot assistance program
for research institutions located in the
most impacted areas. At HUD’s request,
the state has agreed that this planning
process will identify critical
performance measures for this program
so that all parties involved can assess
the usefulness of the RCEE model as
part of overall disaster recovery.
The RCEE program design does not
break down neatly into CDBG eligibility
categories. Portions of the RCEE
program are eligible CDBG activities,
such as training (public services) and
strategic planning. Other portions,
especially the stipends and other direct
support for retaining key faculty
researchers, are outside the usual CDBG
realm, although modeled on other
government research and endowment
grant programs. Program staff will be
coordinating the various types of
assistance into a coherent whole,
moving between supporting eligible and
currently ineligible activities.
To avoid bureaucratic hair-splitting
that does not advance long-term disaster
recovery or protect against fraud, waste,
or abuse of funds, HUD is providing a
waiver and alternative requirement to
create the eligible activity called
Louisiana Research Commercialization
and Educational Enhancement to
include all activities carried out in
accordance with the RCEE program
described in the HUD-approved Action
Plan, beginning with the amendment
introducing this program, approved
January 3, 2007. (The allowable cost
provisions of applicable OMB Circulars
still apply, as do statutory prohibitions
on duplications of benefit with other
forms of assistance, such as Federal
programs.)
Documentation of low- and moderateincome household benefit for multi-unit
housing projects. Rehabilitation and
reconstruction of housing is an eligible
CDBG activity. HUD has already granted
the state an eligibility waiver to allow
new construction of housing. Now the
state has requested a related waiver to
allow it to fund multi-unit projects and
to measure benefit to low- and
moderate-income households in such
projects in a manner more supportive of
mixed income housing than the
structure basis required by 24 CFR
570.483(b)(3). (Under the cited
regulation, the general rule is that at
least 51 percent of the residents of an
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assisted structure must be income
eligible.)
HUD has reviewed other housing
assistance programs that measure
benefit differently: By the housing unit.
Under the unit approach, one or more
of the units in a structure must house
income-eligible families, but the
remainder of the units may be market
rate, so long as the proportion of
assistance provided compared to the
overall project budget is no more than
the proportion of units that will be
occupied by income-eligible households
compared to the number of units in the
overall project. In other words, the rule
under the structure approach is that a
dollar of CDBG assistance to a structure
means that 51 percent of the units must
meet income requirements. Under the
proportional units approach, the
number of income-eligible units is
proportional to the amount of assistance
provided. Based on HUD experience,
the second approach is generally more
compatible with large-scale
development of mixed-income housing.
There is HUD precedent for using the
proportional unit basis in two programs
familiar to the state: (1) The CDBG
program rule has a built-in exception
that allows limited use of the unit basis
for multi-unit non-elderly new
construction structures with between 20
and 50 percent low- and moderateincome occupancy, and (2) the HOME
Investment Partnerships program,
HUD’s primary housing production
program, successfully uses its own
variation on the proportional unit
approach. After review of the state’s
Action Plan for Disaster Recovery and
learning more about the state’s intention
to encourage mixed-income housing
development, HUD has determined that
it is consistent with the overall purposes
of the 1974 Act to provide the state the
requested additional flexibility in
measuring program benefit.
Therefore, the waiver and alternative
requirements allow the state a choice.
The state may measure benefit within a
housing development project (1)
according to the existing CDBG
requirements, (2) according to the
HOME program requirements at 24 CFR
92.205(d) or (3) according to the
modified CDBG alternative
requirements specified in this notice,
which extend the CDBG exception
noted above. The state must select and
use just one method for each project.
For these purposes, the term ‘‘project’’
will have the same meaning as in the
HOME program at 24 CFR 92.2. Unlike
the HOME program, the CDBG program
does not regulate the maximum amount
of assistance per unit, require unit and
income reviews in the years following
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initial occupancy, require a specific
form of subsidy layering review, or
define affordability. The state is
reminded, however, that CDBG does
require that costs be necessary and
reasonable and that the state must
develop procedures and documentation
to ensure that its housing investments
meet this requirement. The state must
also meet all civil rights and fair
housing requirements.
Eligibility—Operating Subsidy for
Affordable Rental Housing. The State
requested a waiver to allow a ProjectBased Rental Subsidy (PBRA) and
assistance to establish operating
reserves to encourage developers to
rebuild rental and mixed-income
housing in the areas that suffered the
greatest disaster impact. The subsidy
funding, which is ‘‘Piggyback’’ funding
generally designed to be linked to the
use of housing tax credits or funding
under another of the rental programs
delineated in the State’s HUD approved
Action Plan for Disaster Recovery,
targets housing for low-income and
very-low-income families and is limited
in amount to the difference between the
rents that a project is projected to need
to sustain itself, and a specified lower
level that can be reasonably afforded by
the tenants. With its affordable rental
programs, the State proposes to address
specific barriers unique to the affordable
rental programs outlined by the State’s
Action Plan (see The Road Home
Housing Programs described in the
State’s Action Plan for Disaster
Recovery) such as the lack of
affordability in the most heavily
damaged areas, the lack of permanent
financing for mixed-income rentals, and
the need for more risk-tolerant predevelopment capital.
In its Road Home programs, the State
has set a high priority on deep
affordability for some rental units and
on placing these units within mixedincome communities wherever feasible.
The state has included new scoring
factors in the Piggyback tax credit
selection process that reflect these
priorities and that emphasize long-term
viability and reduce operating costs.
According to the state, the biggest
remaining challenge in providing rental
units affordable to very low-income
households is the difference between
what tenants can afford to pay and the
projected cost of operating the units.
The state has researched existing
housing models, and concluded that the
Piggyback model and the small rental
and homeless programs described in the
Road Home are needed to ensure
production of affordable units. The state
believes it has a critical need for
income-targeted rental housing
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production programs. Although the state
has made financing available for rental
housing construction, it believes that it
will need also to provide operating
subsidy options for some projects to
ensure they are affordable to very lowincome households.
HUD agrees that keeping housing
affordable to very low-income
households over time may require
additional operating subsidy after
construction is complete. To allow the
state flexible options, HUD will allow
CDBG assistance for subsidizing
operating costs using PBRA and funding
initial operating reserves in the context
of the Road Home rental programs as
described in the Action Plan. The
Department encourages the State to
avoid using CDBG for operating
subsidies if other financing is available
or if the project can reasonably be
structured to achieve and maintain its
target affordability without the
operating subsidy.
HUD recommends that the State
establish written requirements for
income eligibility, maximum rents,
utility allowances, structure quality, and
affirmative marketing of projects. HUD
also recommends that inflation
adjustments set by the State generally
not exceed the Section 8 allowable
adjustments.
HUD recommends that, in
implementing PBRA funding, the State
acquire and maintain the expertise
equivalent to the role of a tax credit
administrator whose responsibilities
will include, but not be limited to,
making PBRA payments to procured
developers and compliance control of
eligibility determinations. Due to the
distinctive and potentially high-risk
nature of this eligibility waiver, HUD
recommends that such expertise be
maintained throughout the life of the
program to ensure the prevention of
fraud, abuse of funds, and duplication
of benefits. HUD reminds the state of the
regulatory requirement for annual
financial audits of its programs, and of
the Federal Register Notice 71 FR 7666
and 71 FR 73337 requirements that its
entire program be under the purview of
an internal auditor.
Eligibility—Homeless Prevention and
Rapid Rehousing. The State has
requested an eligibility waiver to allow
it to implement a Homeless Prevention
and Rapid Rehousing Program using
funds designated for homeless activities
in its Action Plan. The principle of this
program model is to minimize the time
a family is homeless by providing rehousing assistance, rental assistance,
and linking the family to services
designed to help it become stable and
self-sufficient. The State’s request notes
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that it has modeled its program on the
rapid rehousing program approach that
the National Alliance to End
Homelessness has endorsed as a
national best practice. The State also
notes that as a consequence of
Hurricanes Katrina and Rita:
‘‘Thousands of families today are
doubled up with family and friends,
facing eviction, in temporary housing
conditions affordable only with time
limited FEMA rental assistance, or
living in FEMA trailer villages—unsure
what they are going to do when
assistance runs out.’’
The State needs an eligibility waiver
for the rental assistance and utility
payments that are paid for up to two
years on behalf of homeless and at-risk
households. The proposed program also
includes rental and utility deposits and
back payments for housing when the
State determines that such payments are
necessary to help prevent a family from
becoming homeless. To the extent the
existing CDBG program rules explicitly
allow payments for these purposes, the
program establishes a shorter time
limitation (three months) and generally
discourages or disallows back payments.
The State’s proposed program will
measurably advance the Department’s
priority on supporting forward-thinking
solutions to help communities that are
struggling to house and serve persons
and families that are homeless or at risk
of homelessness because of the effects of
Hurricanes Katrina and Rita. Therefore,
this Notice grants the eligibility waiver
as requested.
Documentation of low- and moderateincome benefit and public benefit for
certain economic development
activities. For some of its economic
development programs, the state has
requested one waiver to allow it to
provide alternate documentation of lowand moderate-income benefit, and
another waiver to extend the public
benefit standard waiver granted in
Federal Register Notice 71 FR 7666 for
the Bridge Loan Program to the
economic development activities from
Action Plan Amendments 2 and 8 and
to FEMA public assistance cost share
infrastructure projects carried out for
the purpose of creating or retaining jobs.
For the national objective
documentation for the business
assistance activities, the state has asked
to be able to apply individual salaries or
wages per job and the income limits for
a household of one, rather than the
usual CDBG standard of total household
income and the limits by total
household size. The state asserts that its
proposed documentation will be
simpler and quicker for its participating
lenders to administer, easier to verify,
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and will not misrepresent the amount of
low- and moderate-income benefit
provided.
Further, for the Bridge Loan Program
and for infrastructure projects carried
out to create or retain jobs or businesses,
the state argues for this approach
because it considers these critical
recovery activities that need the most
streamlined approach to documentation
that is consistent with prudent
management. On review and following
several discussions with state staff, HUD
accepts the state’s arguments for the
activities and programs cited above, and
is granting the waiver as requested.
HUD is granting this waiver because
of the magnitude of the disaster.
However, because the validity of this
approach has not been verified
systematically, HUD may not grant
similar waivers in the future.
The public benefit provisions set
standards for individual economic
development activities (such as a single
loan to a business) and for economic
development activities in the annual
aggregate. Currently, public benefit
standards limit the amount of CDBG
assistance per job retained or created, or
the amount of CDBG assistance per lowand moderate-income person to which
goods or services are provided by the
activity. Essentially, the public benefit
standards are a proxy for all the other
possible public benefits provided by an
assisted activity. These dollar
thresholds were set more than a decade
ago and under disaster recovery
conditions (which often require a larger
investment to achieve a given result),
can be too low and thus impede
recovery by limiting the amount of
assistance the grantee may provide to a
critical activity. The State has made
public in its Action Plan the disaster
recovery needs each activity is
addressing and the public benefits
expected.
After consideration, this Notice
waives the public benefit standards for
the cited activities, except that the State
shall report and maintain
documentation on the creation and
retention of (a) total jobs, (b) number of
jobs within certain salary ranges, (c) the
average amount of assistance per job
and activity or program, and (c) the
types of jobs. As a conforming change
for the same activities or programs, HUD
is also waiving paragraph (g) of 24 CFR
570.482 to the extent its provisions are
related to public benefit.
Voluntary acquisition under the
Piggyback Program. In connection with
the State’s Low Income Housing Tax
Credit Piggyback Program, various
developers obtained options for the
acquisition of specific properties to
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create mixed income rental housing and
workforce housing projects to replace
rental housing lost during the
hurricanes. The options were obtained
on a voluntary basis by developers
without the use or threat of eminent
domain and prior to the availability of
federal funding. However, since these
projects will now be receiving CDBG
disaster funding assistance, the
requirements of the Uniform Relocation
Assistance and Real Property
Acquisition Policies Act of 1970, as
amended, (42 U.S.C. 4601 et seq.) (the
URA) will apply where the property
acquisition has not been completed. The
state has requested a waiver related to
acquisition requirements under the URA
for specific projects with existing
options. The state has asked that HUD
permit the waivers to help complete the
acquisition of property and promote the
replacement of housing in a timely and
efficient manner. The state believes that
these waivers will have little impact on
those persons who voluntarily entered
into these option agreements prior to the
availability of federal funding.
CDBG funds are federal financial
assistance so their use in projects that
involve acquisition of property for a
federally assisted project, or that involve
acquisition, demolition, or
rehabilitation that force a person to
move permanently, are subject to the
URA and the government-wide
implementing regulations found at 49
CFR part 24. The URA provides
assistance and protections to
individuals and businesses affected by
federal or federally assisted projects.
HUD is waiving the following URA
requirements to help promote
accessibility to suitable decent, safe, and
sanitary housing for victims of
Hurricanes Katrina and Rita:
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The acquisition requirements of the URA
and implementing regulations so that they do
not apply to an arm’s length voluntary
purchase carried out by a person that does
not have the power of eminent domain, in
connection with the purchase of properties
for the projects listed in the waiver below.
According to the state, the failure to suspend
these requirements would impede disaster
recovery. This waiver would not affect any
lawful occupants of the affected projects, in
terms of relocation assistance and payments,
and would only waive certain transactionrelated requirements vis a vis the project
owners.
Applicable Rules, Statutes, Waivers,
and Alternative Requirements
1. General note. Except as described
in this Notice, the statutory, regulatory,
and notice provisions that shall apply to
the use of these funds are:
a. those governing the funds
appropriated under Public Law 109–148
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and Public Law 109–234 and already
published in the Federal Register,
including those in Notices 71 FR 7666,
published February 13, 2006; 71 FR
34451, published June14, 2006; and 71
FR 63337, published October 30, 2006.
b. those governing the Community
Development Block Grant program for
states, including those at 42 U.S.C. 5301
et seq. and 24 CFR part 570.
2. Buildings for the general conduct of
government. Waiver 11 of notice 71 FR
34451 is replaced with the following: 42
U.S.C. 5305(a) and 24 CFR 507.207(a)(1)
are waived to the extent necessary to
allow the state to use the grant funds
under this notice to fund the
rehabilitation or reconstruction of
public buildings that are otherwise
ineligible and that the state selects in
accordance with its approved Action
Plan for Disaster Recovery and that the
State has determined have substantial
value in promoting disaster recovery.
3. Eligibility—Louisiana Research
Commercialization and Educational
Enhancement program (RCEE).
Activities carried out in accordance
with the HUD approved Action Plan for
the RCEE program approved January 3,
2007, are eligible.
4. Documentation of low- and
moderate-income benefit for multi-unit
housing projects. HUD will consider
assistance for a multi-unit housing
project involving new construction,
acquisition, reconstruction, or
rehabilitation to benefit low- and
moderate-income households in the
following circumstances:
(a)(i) The CDBG assistance defrays the
development costs of a housing project
providing eligible permanent residential
units that, upon completion, will be
occupied by low- and moderate-income
households; and
(ii) if the project is rental, the units
occupied by low and moderate income
households will be leased at affordable
rents. The grantee or unit of general
local government shall adopt and make
public its standards for determining
‘‘affordable rents’’ for this purpose; and
(iii) The proportion of the total cost of
developing the project to be borne by
CDBG funds is no greater than the
proportion of units in the project that
will be occupied by low- and moderateincome households; or
(b) When CDBG funds defray the
development costs of eligible permanent
residential units, such funds shall be
considered to benefit low and moderate
income persons if the grantee follows
the provisions of 24 CFR 92.205(d); or
(c) The requirements of 24 CFR
570.483(b)(3) are met.
(d) The state must select and use just
one method for each project.
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(e) The term ‘‘project’’ will be defined
as in the HOME program at 24 CFR 92.2.
(f) If the state applies option (a) or (b)
above to a housing project, 24 CFR
570.483(b)(3) is waived for that project.
5. Waiver to permit operating
subsidies for affordable rental housing.
42 U.S.C. 5305(a) is waived to the extent
necessary to make eligible the Road
Home project-based rental assistance
program included in the state’s HUDapproved Action Plan for Disaster
Recovery provided that the assisted
activities are designed to ensure that
CDBG funds will be invested only to the
extent of reasonably anticipated need.
Also in conjunction with the Road
Home rental program, the grantee may
provide assistance to establish an initial
operating reserve account for a project
receiving other Road Home assistance.
6. National objective documentation
for certain economic development
activities. 24 CFR 570.483(b)(4)(i) is
waived to allow the grantee to establish
low- and moderate-income jobs benefit
by documenting for each person
employed the name of the business,
type of job, and the annual wages or
salary of the job. HUD will consider the
person income-qualified if the annual
wages or salary of the job is at or under
the HUD-established income limit for a
one-person family.
7. Eligibility of certain activities to
support homeless prevention and rapid
rehousing programs. 42 U.S.C. 5305(a)
is waived to the extent necessary to
make eligible rental assistance and
utility payments paid for up to two
years on behalf of homeless and at-risk
households when such assistance or
payments are part of a homeless
prevention or rapid rehousing program.
Eligible assistance in these programs
may also include rental and utility
deposits and back payments for housing
when the State determines that such
payments are necessary to help prevent
a family from being homeless.
8. Public benefit standards for
economic development activities. For
economic development activities
designed to create or retain jobs or
businesses (including but not limited to
BRIDGE, Short term, Long term,
infrastructure projects), the public
benefit standards at 42 U.S.C. 5305(e)(3)
and 24 CFR 570.482(f)(1), (2), (3), (4)(i),
(5), and (6) are waived, except that the
grantee shall report and maintain
documentation on the creation and
retention of (a) total jobs, (b) number of
jobs within certain salary ranges, (c)
average amount of assistance provided
per job by activity or program, and (c)
types of jobs. Paragraph (g) of 24 CFR
570.482 is also waived to the extent its
provisions are related to public benefit.
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9. Voluntary acquisition under the
Piggyback program. The requirements at
49 CFR 24.101(b)(2)(i)–(ii) are waived to
the extent that they apply to an existing
option for the arm’s length voluntary
purchase carried out by a person that
does not have the power of eminent
domain, in connection with the
purchase of property for the projects
listed below, so long as the initial
option pre-dates December 22, 2006.
LHFA project ID
Project name
Parish
0708FA37 ..............
0708FA43 ..............
0708FA44 ..............
0708FA48 ..............
0708FA52 ..............
0708FA01 ..............
0708FA22 ..............
0708FA28 ..............
08FA49 ..................
0708FA30 ..............
0708FA26 ..............
0708FA24 ..............
0708FA25 ..............
0708FA42 ..............
0708FA57 ..............
0708FA47 ..............
0708FA08 ..............
0708FA11 ..............
0708FA41 ..............
0708FA13 ..............
0708FA10 ..............
0708FA38 ..............
0708FA36 ..............
0708FA40 ..............
0708FA09 ..............
0708FA61 ..............
0708FA64 ..............
0708FA27 ..............
0708FA29 ..............
0708FA23 ..............
0708FA63 ..............
0708FA07 ..............
0708FA06 ..............
The Meadows .............................................................................................................
Renoir Acres Estates II ...............................................................................................
Monet Acres Estates II ...............................................................................................
Sulphur Retirement Community .................................................................................
Grand Lake Elderly .....................................................................................................
Timberlane Apartments ..............................................................................................
Beechgrove Homes ....................................................................................................
Wellswood Manor .......................................................................................................
Oak Villa .....................................................................................................................
Lafitte Redevelopment ................................................................................................
St Bernard I ................................................................................................................
BW Cooper I ...............................................................................................................
CJ Peete III .................................................................................................................
Rivergarden CSII ........................................................................................................
Canterbury House Apts-New Orleans East ................................................................
The Marquis Apartments ............................................................................................
The Villas at Lake Forest ...........................................................................................
The Crescent Club ......................................................................................................
Walnut Square Apartments ........................................................................................
200 Carondelet ...........................................................................................................
The Preserve ..............................................................................................................
Crescent Garden Homes ............................................................................................
Levey Gardens ...........................................................................................................
Nine 27 .......................................................................................................................
Jefferson Davis Apartments .......................................................................................
Indiana Homes ............................................................................................................
Orleans Place .............................................................................................................
Classic Construction of New Orleans Venture II ........................................................
Constance Lofts ..........................................................................................................
Delta Oaks Homes .....................................................................................................
Old Morrison Homes ...................................................................................................
Lakeside Apartments ..................................................................................................
Tiffany Apartments ......................................................................................................
Calcasieu ...............
Calcasieu ...............
Calcasieu ...............
Calcasieu ...............
Cameron ................
Jefferson ................
Jefferson ................
Jefferson ................
Jefferson ................
Orleans ..................
Orleans ..................
Orleans ..................
Orleans ..................
Orleans ..................
Orleans ..................
Orleans ..................
Orleans ..................
Orleans ..................
Orleans ..................
Orleans ..................
Orleans ..................
Orleans ..................
Orleans ..................
Orleans ..................
Orleans ..................
Orleans ..................
Orleans ..................
Orleans ..................
Orleans ..................
Orleans ..................
Orleans ..................
St. Tammany .........
Vermilion ................
180
60
60
60
30
164
100
84
80
568
465
410
410
310
276
250
230
226
209
190
183
143
100
76
72
60
60
56
47
40
38
250
250
Totals ..............
.....................................................................................................................................
................................
5737
cprice-sewell on PROD1PC67 with NOTICES2
10. Information collection approval
note. HUD has approval for information
collection requirements in accordance
with the Paperwork Reduction Act of
1995 (44 U.S.C. 3501–3520) under OMB
control number 2506–0165, which
expires August 31, 2007. In accordance
with the Paperwork Reduction Act,
HUD may not conduct or sponsor, nor
is a person required to respond to, a
collection of information unless the
collection displays a valid control
number.
VerDate Aug<31>2005
15:39 Mar 05, 2007
Jkt 211001
Catalog of Federal Domestic Assistance
The Catalog of Federal Domestic
Assistance numbers for the disaster
recovery grants under this Notice are as
follows: 14.219; 14.228.
Finding of No Significant Impact
A Finding of No Significant Impact
(FONSI) with respect to the
environment has been made in
accordance with HUD regulations at 24
CFR part 50, which implement section
102(2)(C) of the National Environmental
Policy Act of 1969 (42 U.S.C. 4332). The
PO 00000
Frm 00006
Fmt 4701
Sfmt 4703
Est. total units
FONSI is available for public inspection
between 8 a.m. and 5 p.m. weekdays in
the Office of the Rules Docket Clerk,
Office of General Counsel, Department
of Housing and Urban Development,
Room 10276, 451 Seventh Street, SW.,
Washington, DC 20410–0500.
Dated: February 27, 2007.
Pamela H. Patenaude,
Assistant Secretary for Community Planning
and Development.
[FR Doc. E7–3830 Filed 3–5–07; 8:45 am]
BILLING CODE 4210–67–P
E:\FR\FM\06MRN2.SGM
06MRN2
Agencies
[Federal Register Volume 72, Number 43 (Tuesday, March 6, 2007)]
[Notices]
[Pages 10014-10018]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-3830]
[[Page 10013]]
-----------------------------------------------------------------------
Part III
Department of Housing and Urban Development
-----------------------------------------------------------------------
Additional Waivers Granted to and Alternative Requirements for the
State of Louisiana Under Public Laws 109-148 and 109-234; Notice
Federal Register / Vol. 72, No. 43 / Tuesday, March 6, 2007 /
Notices
[[Page 10014]]
-----------------------------------------------------------------------
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-5089-N-03]
Additional Waivers Granted to and Alternative Requirements for
the State of Louisiana Under Public Laws 109-148 and 109-234
AGENCY: Office of the Secretary, HUD.
ACTION: Notice of waivers and alternative requirements.
-----------------------------------------------------------------------
SUMMARY: As described in the Supplementary Information section of this
Notice, HUD is authorized by statute to waive statutory and regulatory
requirements and specify alternative requirements for this grant, upon
the request of the state grantee. This Notice describes the additional
waivers for the disaster recovery grants made to the state of Louisiana
under the subject appropriations acts.
DATES: Effective Date: March 12, 2007.
FOR FURTHER INFORMATION CONTACT: Clifford Taffet, Acting Director,
Disaster Recovery and Special Issues Division, Office of Block Grant
Assistance, Department of Housing and Urban Development, Room 7286, 451
Seventh Street, SW., Washington, DC 20410, telephone number (202) 708-
2684. Persons with hearing or speech impairments may access this number
via TTY by calling the Federal Information Relay Service at (800) 877-
8339. FAX inquiries may be sent to Mr. Taffet at (202) 708-1744.
(Except for the ``800'' number, these telephone numbers are not toll-
free.)
SUPPLEMENTARY INFORMATION:
Authority To Grant Waivers
The first federal fiscal year 2006 supplemental appropriation for
the Community Development Block Grant (CDBG) program was the Department
of Defense, Emergency Supplemental Appropriations to Address Hurricanes
in the Gulf of Mexico, and Pandemic Influenza Act, 2006 (Pub. L. 109-
148, approved December 30, 2005). The second 2006 supplemental
appropriation was Chapter 9 of Title II of the Emergency Supplemental
Appropriations Act for Defense, the Global War on Terror, and Hurricane
Recovery, 2006 (Pub. L. 109-234, approved June 15, 2006) which
appropriates $5.2 billion in Community Development Block Grant funds
for necessary expenses related to disaster relief, long-term recovery,
and restoration of infrastructure directly related to the consequences
of the covered disasters. The 2006 Acts authorize the Secretary to
waive, or specify alternative requirements for, any provision of any
statute or regulation that the Secretary administers in connection with
the obligation by the Secretary or use by the recipient of these funds
and guarantees, except for requirements related to fair housing,
nondiscrimination, labor standards, and the environment, upon a request
by the State and a finding by the Secretary that such a waiver would
not be inconsistent with the overall purpose of the statute. The
following waivers and alternative requirements for funds provided under
either 2006 Act are in response to requests from the State of
Louisiana. A waiver or alternative requirement will apply to assistance
provided under either Act unless otherwise specified in this Notice.
The Secretary finds that the following waivers and alternative
requirements, as described below, are not inconsistent with the overall
purpose of Title I of the Housing and Community Development Act of
1974, as amended, or the Cranston-Gonzalez National Affordable Housing
Act, as amended.
Under the requirements of the Department of Housing and Urban
Development Act, as amended (42 U.S.C. 3535(q)), regulatory waivers
must be published in the Federal Register.
Except as described in this and other notices applicable to this
grant, statutory and regulatory provisions governing the Community
Development Block Grant program for states, including those at 24 CFR
part 570, shall apply to the use of these funds. In accordance with the
appropriations acts, HUD will reconsider every waiver in this Notice on
the two-year anniversary of the day this Notice is published.
Waiver Justification
In general, waivers already granted to the state of Louisiana and
alternative requirements already specified for CDBG disaster recovery
grant funds provided under Public Law 109-148 and Public Law 109-234
apply. The notices in which these prior waivers and alternative
requirements applicable to Louisiana appear are 71 FR 7666, published
February 13, 2006; 71 FR 34451, published June 14, 2006; and 71 FR
63337, published October 30, 2006.
The provisions of this Notice do not apply to funds provided under
the regular CDBG program. The provisions provide additional flexibility
in program design and implementation and implement statutory
requirements unique to these appropriations.
Eligibility--buildings for the general conduct of government. The
state requested additional flexibility in the previously granted
alternative requirement that permitted funding the cost share for the
FEMA Public Assistance or Hazard Mitigation Grant Program when disaster
recovery CDBG funds assist buildings for the general conduct of
government. The requested change will allow the state to fund more than
just the amount of the FEMA cost share for a project in this activity
category. The change will also permit use of grant funds for allowable
rehabilitation, construction, or reconstruction costs in otherwise FEMA
eligible projects when these costs are ineligible for FEMA assistance,
such as the costs to assist rehabilitation or reconstruction of
qualifying buildings that were underinsured or uninsured, and to allow
funding to bring a selected building up to code or to allow it to
receive a certificate of occupancy and be put into service. HUD
considered the state's request and agreed that it is consistent with
the overall purposes of the 1974 Act for the state to be allowed to use
the grant funds under this notice to fund critical projects involving
repair of buildings for the general conduct of government that the
state has selected in accordance with the method described in its HUD-
approved Action Plan for Disaster Recovery and that the state has
determined have substantial value in promoting disaster recovery, even
if the funding provided under this notice assists some costs that do
not qualify as cost share for the FEMA Public Assistance or Mitigation
programs.
Eligibility--Research Commercialization and Educational
Enhancement. According to the state's proposed Action Plan amendment,
the Research Commercialization and Educational Enhancement (RCCE)
Program is ``intended to restore the economic impact of scientific and
technology research facilities within higher education institutions in
the most severely affected areas.'' Activities under this program may
include, but are not limited to, stipends for students, related
training, purchase of critical equipment, stipends for research
professionals, and development of a master strategic plan for meeting
the program's intent.
Normally, HUD provides funds to a research institution or a
university either to increase its capacity to carry out a CDBG activity
such as rehabilitation of housing, to carry out specific research, or
to provide training. By contrast, the RCEE program is directed at
stabilizing and increasing research and education sector employment and
functions themselves. The state has stated that this sector was a
significant regional job generator before the covered disasters, that
[[Page 10015]]
Hurricane Katrina and its aftermath critically damaged many aspects of
the research sector, and that the RCEE program is a critical component
of the state's long-term economic recovery.
To accomplish its stated intention, the State is funding strategic
planning followed by a pilot assistance program for research
institutions located in the most impacted areas. At HUD's request, the
state has agreed that this planning process will identify critical
performance measures for this program so that all parties involved can
assess the usefulness of the RCEE model as part of overall disaster
recovery.
The RCEE program design does not break down neatly into CDBG
eligibility categories. Portions of the RCEE program are eligible CDBG
activities, such as training (public services) and strategic planning.
Other portions, especially the stipends and other direct support for
retaining key faculty researchers, are outside the usual CDBG realm,
although modeled on other government research and endowment grant
programs. Program staff will be coordinating the various types of
assistance into a coherent whole, moving between supporting eligible
and currently ineligible activities.
To avoid bureaucratic hair-splitting that does not advance long-
term disaster recovery or protect against fraud, waste, or abuse of
funds, HUD is providing a waiver and alternative requirement to create
the eligible activity called Louisiana Research Commercialization and
Educational Enhancement to include all activities carried out in
accordance with the RCEE program described in the HUD-approved Action
Plan, beginning with the amendment introducing this program, approved
January 3, 2007. (The allowable cost provisions of applicable OMB
Circulars still apply, as do statutory prohibitions on duplications of
benefit with other forms of assistance, such as Federal programs.)
Documentation of low- and moderate-income household benefit for
multi-unit housing projects. Rehabilitation and reconstruction of
housing is an eligible CDBG activity. HUD has already granted the state
an eligibility waiver to allow new construction of housing. Now the
state has requested a related waiver to allow it to fund multi-unit
projects and to measure benefit to low- and moderate-income households
in such projects in a manner more supportive of mixed income housing
than the structure basis required by 24 CFR 570.483(b)(3). (Under the
cited regulation, the general rule is that at least 51 percent of the
residents of an assisted structure must be income eligible.)
HUD has reviewed other housing assistance programs that measure
benefit differently: By the housing unit. Under the unit approach, one
or more of the units in a structure must house income-eligible
families, but the remainder of the units may be market rate, so long as
the proportion of assistance provided compared to the overall project
budget is no more than the proportion of units that will be occupied by
income-eligible households compared to the number of units in the
overall project. In other words, the rule under the structure approach
is that a dollar of CDBG assistance to a structure means that 51
percent of the units must meet income requirements. Under the
proportional units approach, the number of income-eligible units is
proportional to the amount of assistance provided. Based on HUD
experience, the second approach is generally more compatible with
large-scale development of mixed-income housing.
There is HUD precedent for using the proportional unit basis in two
programs familiar to the state: (1) The CDBG program rule has a built-
in exception that allows limited use of the unit basis for multi-unit
non-elderly new construction structures with between 20 and 50 percent
low- and moderate- income occupancy, and (2) the HOME Investment
Partnerships program, HUD's primary housing production program,
successfully uses its own variation on the proportional unit approach.
After review of the state's Action Plan for Disaster Recovery and
learning more about the state's intention to encourage mixed-income
housing development, HUD has determined that it is consistent with the
overall purposes of the 1974 Act to provide the state the requested
additional flexibility in measuring program benefit.
Therefore, the waiver and alternative requirements allow the state
a choice. The state may measure benefit within a housing development
project (1) according to the existing CDBG requirements, (2) according
to the HOME program requirements at 24 CFR 92.205(d) or (3) according
to the modified CDBG alternative requirements specified in this notice,
which extend the CDBG exception noted above. The state must select and
use just one method for each project.
For these purposes, the term ``project'' will have the same meaning
as in the HOME program at 24 CFR 92.2. Unlike the HOME program, the
CDBG program does not regulate the maximum amount of assistance per
unit, require unit and income reviews in the years following initial
occupancy, require a specific form of subsidy layering review, or
define affordability. The state is reminded, however, that CDBG does
require that costs be necessary and reasonable and that the state must
develop procedures and documentation to ensure that its housing
investments meet this requirement. The state must also meet all civil
rights and fair housing requirements.
Eligibility--Operating Subsidy for Affordable Rental Housing. The
State requested a waiver to allow a Project-Based Rental Subsidy (PBRA)
and assistance to establish operating reserves to encourage developers
to rebuild rental and mixed-income housing in the areas that suffered
the greatest disaster impact. The subsidy funding, which is
``Piggyback'' funding generally designed to be linked to the use of
housing tax credits or funding under another of the rental programs
delineated in the State's HUD approved Action Plan for Disaster
Recovery, targets housing for low-income and very-low-income families
and is limited in amount to the difference between the rents that a
project is projected to need to sustain itself, and a specified lower
level that can be reasonably afforded by the tenants. With its
affordable rental programs, the State proposes to address specific
barriers unique to the affordable rental programs outlined by the
State's Action Plan (see The Road Home Housing Programs described in
the State's Action Plan for Disaster Recovery) such as the lack of
affordability in the most heavily damaged areas, the lack of permanent
financing for mixed-income rentals, and the need for more risk-tolerant
pre-development capital.
In its Road Home programs, the State has set a high priority on
deep affordability for some rental units and on placing these units
within mixed-income communities wherever feasible. The state has
included new scoring factors in the Piggyback tax credit selection
process that reflect these priorities and that emphasize long-term
viability and reduce operating costs. According to the state, the
biggest remaining challenge in providing rental units affordable to
very low-income households is the difference between what tenants can
afford to pay and the projected cost of operating the units.
The state has researched existing housing models, and concluded
that the Piggyback model and the small rental and homeless programs
described in the Road Home are needed to ensure production of
affordable units. The state believes it has a critical need for income-
targeted rental housing
[[Page 10016]]
production programs. Although the state has made financing available
for rental housing construction, it believes that it will need also to
provide operating subsidy options for some projects to ensure they are
affordable to very low-income households.
HUD agrees that keeping housing affordable to very low-income
households over time may require additional operating subsidy after
construction is complete. To allow the state flexible options, HUD will
allow CDBG assistance for subsidizing operating costs using PBRA and
funding initial operating reserves in the context of the Road Home
rental programs as described in the Action Plan. The Department
encourages the State to avoid using CDBG for operating subsidies if
other financing is available or if the project can reasonably be
structured to achieve and maintain its target affordability without the
operating subsidy.
HUD recommends that the State establish written requirements for
income eligibility, maximum rents, utility allowances, structure
quality, and affirmative marketing of projects. HUD also recommends
that inflation adjustments set by the State generally not exceed the
Section 8 allowable adjustments.
HUD recommends that, in implementing PBRA funding, the State
acquire and maintain the expertise equivalent to the role of a tax
credit administrator whose responsibilities will include, but not be
limited to, making PBRA payments to procured developers and compliance
control of eligibility determinations. Due to the distinctive and
potentially high-risk nature of this eligibility waiver, HUD recommends
that such expertise be maintained throughout the life of the program to
ensure the prevention of fraud, abuse of funds, and duplication of
benefits. HUD reminds the state of the regulatory requirement for
annual financial audits of its programs, and of the Federal Register
Notice 71 FR 7666 and 71 FR 73337 requirements that its entire program
be under the purview of an internal auditor.
Eligibility--Homeless Prevention and Rapid Rehousing. The State has
requested an eligibility waiver to allow it to implement a Homeless
Prevention and Rapid Rehousing Program using funds designated for
homeless activities in its Action Plan. The principle of this program
model is to minimize the time a family is homeless by providing re-
housing assistance, rental assistance, and linking the family to
services designed to help it become stable and self-sufficient. The
State's request notes that it has modeled its program on the rapid
rehousing program approach that the National Alliance to End
Homelessness has endorsed as a national best practice. The State also
notes that as a consequence of Hurricanes Katrina and Rita: ``Thousands
of families today are doubled up with family and friends, facing
eviction, in temporary housing conditions affordable only with time
limited FEMA rental assistance, or living in FEMA trailer villages--
unsure what they are going to do when assistance runs out.''
The State needs an eligibility waiver for the rental assistance and
utility payments that are paid for up to two years on behalf of
homeless and at-risk households. The proposed program also includes
rental and utility deposits and back payments for housing when the
State determines that such payments are necessary to help prevent a
family from becoming homeless. To the extent the existing CDBG program
rules explicitly allow payments for these purposes, the program
establishes a shorter time limitation (three months) and generally
discourages or disallows back payments.
The State's proposed program will measurably advance the
Department's priority on supporting forward-thinking solutions to help
communities that are struggling to house and serve persons and families
that are homeless or at risk of homelessness because of the effects of
Hurricanes Katrina and Rita. Therefore, this Notice grants the
eligibility waiver as requested.
Documentation of low- and moderate-income benefit and public
benefit for certain economic development activities. For some of its
economic development programs, the state has requested one waiver to
allow it to provide alternate documentation of low- and moderate-income
benefit, and another waiver to extend the public benefit standard
waiver granted in Federal Register Notice 71 FR 7666 for the Bridge
Loan Program to the economic development activities from Action Plan
Amendments 2 and 8 and to FEMA public assistance cost share
infrastructure projects carried out for the purpose of creating or
retaining jobs.
For the national objective documentation for the business
assistance activities, the state has asked to be able to apply
individual salaries or wages per job and the income limits for a
household of one, rather than the usual CDBG standard of total
household income and the limits by total household size. The state
asserts that its proposed documentation will be simpler and quicker for
its participating lenders to administer, easier to verify, and will not
misrepresent the amount of low- and moderate-income benefit provided.
Further, for the Bridge Loan Program and for infrastructure
projects carried out to create or retain jobs or businesses, the state
argues for this approach because it considers these critical recovery
activities that need the most streamlined approach to documentation
that is consistent with prudent management. On review and following
several discussions with state staff, HUD accepts the state's arguments
for the activities and programs cited above, and is granting the waiver
as requested.
HUD is granting this waiver because of the magnitude of the
disaster. However, because the validity of this approach has not been
verified systematically, HUD may not grant similar waivers in the
future.
The public benefit provisions set standards for individual economic
development activities (such as a single loan to a business) and for
economic development activities in the annual aggregate. Currently,
public benefit standards limit the amount of CDBG assistance per job
retained or created, or the amount of CDBG assistance per low- and
moderate-income person to which goods or services are provided by the
activity. Essentially, the public benefit standards are a proxy for all
the other possible public benefits provided by an assisted activity.
These dollar thresholds were set more than a decade ago and under
disaster recovery conditions (which often require a larger investment
to achieve a given result), can be too low and thus impede recovery by
limiting the amount of assistance the grantee may provide to a critical
activity. The State has made public in its Action Plan the disaster
recovery needs each activity is addressing and the public benefits
expected.
After consideration, this Notice waives the public benefit
standards for the cited activities, except that the State shall report
and maintain documentation on the creation and retention of (a) total
jobs, (b) number of jobs within certain salary ranges, (c) the average
amount of assistance per job and activity or program, and (c) the types
of jobs. As a conforming change for the same activities or programs,
HUD is also waiving paragraph (g) of 24 CFR 570.482 to the extent its
provisions are related to public benefit.
Voluntary acquisition under the Piggyback Program. In connection
with the State's Low Income Housing Tax Credit Piggyback Program,
various developers obtained options for the acquisition of specific
properties to
[[Page 10017]]
create mixed income rental housing and workforce housing projects to
replace rental housing lost during the hurricanes. The options were
obtained on a voluntary basis by developers without the use or threat
of eminent domain and prior to the availability of federal funding.
However, since these projects will now be receiving CDBG disaster
funding assistance, the requirements of the Uniform Relocation
Assistance and Real Property Acquisition Policies Act of 1970, as
amended, (42 U.S.C. 4601 et seq.) (the URA) will apply where the
property acquisition has not been completed. The state has requested a
waiver related to acquisition requirements under the URA for specific
projects with existing options. The state has asked that HUD permit the
waivers to help complete the acquisition of property and promote the
replacement of housing in a timely and efficient manner. The state
believes that these waivers will have little impact on those persons
who voluntarily entered into these option agreements prior to the
availability of federal funding.
CDBG funds are federal financial assistance so their use in
projects that involve acquisition of property for a federally assisted
project, or that involve acquisition, demolition, or rehabilitation
that force a person to move permanently, are subject to the URA and the
government-wide implementing regulations found at 49 CFR part 24. The
URA provides assistance and protections to individuals and businesses
affected by federal or federally assisted projects. HUD is waiving the
following URA requirements to help promote accessibility to suitable
decent, safe, and sanitary housing for victims of Hurricanes Katrina
and Rita:
The acquisition requirements of the URA and implementing
regulations so that they do not apply to an arm's length voluntary
purchase carried out by a person that does not have the power of
eminent domain, in connection with the purchase of properties for
the projects listed in the waiver below. According to the state, the
failure to suspend these requirements would impede disaster
recovery. This waiver would not affect any lawful occupants of the
affected projects, in terms of relocation assistance and payments,
and would only waive certain transaction-related requirements vis a
vis the project owners.
Applicable Rules, Statutes, Waivers, and Alternative Requirements
1. General note. Except as described in this Notice, the statutory,
regulatory, and notice provisions that shall apply to the use of these
funds are:
a. those governing the funds appropriated under Public Law 109-148
and Public Law 109-234 and already published in the Federal Register,
including those in Notices 71 FR 7666, published February 13, 2006; 71
FR 34451, published June14, 2006; and 71 FR 63337, published October
30, 2006.
b. those governing the Community Development Block Grant program
for states, including those at 42 U.S.C. 5301 et seq. and 24 CFR part
570.
2. Buildings for the general conduct of government. Waiver 11 of
notice 71 FR 34451 is replaced with the following: 42 U.S.C. 5305(a)
and 24 CFR 507.207(a)(1) are waived to the extent necessary to allow
the state to use the grant funds under this notice to fund the
rehabilitation or reconstruction of public buildings that are otherwise
ineligible and that the state selects in accordance with its approved
Action Plan for Disaster Recovery and that the State has determined
have substantial value in promoting disaster recovery.
3. Eligibility--Louisiana Research Commercialization and
Educational Enhancement program (RCEE). Activities carried out in
accordance with the HUD approved Action Plan for the RCEE program
approved January 3, 2007, are eligible.
4. Documentation of low- and moderate-income benefit for multi-unit
housing projects. HUD will consider assistance for a multi-unit housing
project involving new construction, acquisition, reconstruction, or
rehabilitation to benefit low- and moderate-income households in the
following circumstances:
(a)(i) The CDBG assistance defrays the development costs of a
housing project providing eligible permanent residential units that,
upon completion, will be occupied by low- and moderate-income
households; and
(ii) if the project is rental, the units occupied by low and
moderate income households will be leased at affordable rents. The
grantee or unit of general local government shall adopt and make public
its standards for determining ``affordable rents'' for this purpose;
and
(iii) The proportion of the total cost of developing the project to
be borne by CDBG funds is no greater than the proportion of units in
the project that will be occupied by low- and moderate-income
households; or
(b) When CDBG funds defray the development costs of eligible
permanent residential units, such funds shall be considered to benefit
low and moderate income persons if the grantee follows the provisions
of 24 CFR 92.205(d); or
(c) The requirements of 24 CFR 570.483(b)(3) are met.
(d) The state must select and use just one method for each project.
(e) The term ``project'' will be defined as in the HOME program at
24 CFR 92.2.
(f) If the state applies option (a) or (b) above to a housing
project, 24 CFR 570.483(b)(3) is waived for that project.
5. Waiver to permit operating subsidies for affordable rental
housing. 42 U.S.C. 5305(a) is waived to the extent necessary to make
eligible the Road Home project-based rental assistance program included
in the state's HUD-approved Action Plan for Disaster Recovery provided
that the assisted activities are designed to ensure that CDBG funds
will be invested only to the extent of reasonably anticipated need.
Also in conjunction with the Road Home rental program, the grantee may
provide assistance to establish an initial operating reserve account
for a project receiving other Road Home assistance.
6. National objective documentation for certain economic
development activities. 24 CFR 570.483(b)(4)(i) is waived to allow the
grantee to establish low- and moderate-income jobs benefit by
documenting for each person employed the name of the business, type of
job, and the annual wages or salary of the job. HUD will consider the
person income-qualified if the annual wages or salary of the job is at
or under the HUD-established income limit for a one-person family.
7. Eligibility of certain activities to support homeless prevention
and rapid rehousing programs. 42 U.S.C. 5305(a) is waived to the extent
necessary to make eligible rental assistance and utility payments paid
for up to two years on behalf of homeless and at-risk households when
such assistance or payments are part of a homeless prevention or rapid
rehousing program. Eligible assistance in these programs may also
include rental and utility deposits and back payments for housing when
the State determines that such payments are necessary to help prevent a
family from being homeless.
8. Public benefit standards for economic development activities.
For economic development activities designed to create or retain jobs
or businesses (including but not limited to BRIDGE, Short term, Long
term, infrastructure projects), the public benefit standards at 42
U.S.C. 5305(e)(3) and 24 CFR 570.482(f)(1), (2), (3), (4)(i), (5), and
(6) are waived, except that the grantee shall report and maintain
documentation on the creation and retention of (a) total jobs, (b)
number of jobs within certain salary ranges, (c) average amount of
assistance provided per job by activity or program, and (c) types of
jobs. Paragraph (g) of 24 CFR 570.482 is also waived to the extent its
provisions are related to public benefit.
[[Page 10018]]
9. Voluntary acquisition under the Piggyback program. The
requirements at 49 CFR 24.101(b)(2)(i)-(ii) are waived to the extent
that they apply to an existing option for the arm's length voluntary
purchase carried out by a person that does not have the power of
eminent domain, in connection with the purchase of property for the
projects listed below, so long as the initial option pre-dates December
22, 2006.
----------------------------------------------------------------------------------------------------------------
Est. total
LHFA project ID Project name Parish units
----------------------------------------------------------------------------------------------------------------
0708FA37.......................... The Meadows.............. Calcasieu........................ 180
0708FA43.......................... Renoir Acres Estates II.. Calcasieu........................ 60
0708FA44.......................... Monet Acres Estates II... Calcasieu........................ 60
0708FA48.......................... Sulphur Retirement Calcasieu........................ 60
Community.
0708FA52.......................... Grand Lake Elderly....... Cameron.......................... 30
0708FA01.......................... Timberlane Apartments.... Jefferson........................ 164
0708FA22.......................... Beechgrove Homes......... Jefferson........................ 100
0708FA28.......................... Wellswood Manor.......... Jefferson........................ 84
08FA49............................ Oak Villa................ Jefferson........................ 80
0708FA30.......................... Lafitte Redevelopment.... Orleans.......................... 568
0708FA26.......................... St Bernard I............. Orleans.......................... 465
0708FA24.......................... BW Cooper I.............. Orleans.......................... 410
0708FA25.......................... CJ Peete III............. Orleans.......................... 410
0708FA42.......................... Rivergarden CSII......... Orleans.......................... 310
0708FA57.......................... Canterbury House Apts-New Orleans.......................... 276
Orleans East.
0708FA47.......................... The Marquis Apartments... Orleans.......................... 250
0708FA08.......................... The Villas at Lake Forest Orleans.......................... 230
0708FA11.......................... The Crescent Club........ Orleans.......................... 226
0708FA41.......................... Walnut Square Apartments. Orleans.......................... 209
0708FA13.......................... 200 Carondelet........... Orleans.......................... 190
0708FA10.......................... The Preserve............. Orleans.......................... 183
0708FA38.......................... Crescent Garden Homes.... Orleans.......................... 143
0708FA36.......................... Levey Gardens............ Orleans.......................... 100
0708FA40.......................... Nine 27.................. Orleans.......................... 76
0708FA09.......................... Jefferson Davis Orleans.......................... 72
Apartments.
0708FA61.......................... Indiana Homes............ Orleans.......................... 60
0708FA64.......................... Orleans Place............ Orleans.......................... 60
0708FA27.......................... Classic Construction of Orleans.......................... 56
New Orleans Venture II.
0708FA29.......................... Constance Lofts.......... Orleans.......................... 47
0708FA23.......................... Delta Oaks Homes......... Orleans.......................... 40
0708FA63.......................... Old Morrison Homes....... Orleans.......................... 38
0708FA07.......................... Lakeside Apartments...... St. Tammany...................... 250
0708FA06.......................... Tiffany Apartments....... Vermilion........................ 250
---------------
Totals........................ ......................... ................................. 5737
----------------------------------------------------------------------------------------------------------------
10. Information collection approval note. HUD has approval for
information collection requirements in accordance with the Paperwork
Reduction Act of 1995 (44 U.S.C. 3501-3520) under OMB control number
2506-0165, which expires August 31, 2007. In accordance with the
Paperwork Reduction Act, HUD may not conduct or sponsor, nor is a
person required to respond to, a collection of information unless the
collection displays a valid control number.
Catalog of Federal Domestic Assistance
The Catalog of Federal Domestic Assistance numbers for the disaster
recovery grants under this Notice are as follows: 14.219; 14.228.
Finding of No Significant Impact
A Finding of No Significant Impact (FONSI) with respect to the
environment has been made in accordance with HUD regulations at 24 CFR
part 50, which implement section 102(2)(C) of the National
Environmental Policy Act of 1969 (42 U.S.C. 4332). The FONSI is
available for public inspection between 8 a.m. and 5 p.m. weekdays in
the Office of the Rules Docket Clerk, Office of General Counsel,
Department of Housing and Urban Development, Room 10276, 451 Seventh
Street, SW., Washington, DC 20410-0500.
Dated: February 27, 2007.
Pamela H. Patenaude,
Assistant Secretary for Community Planning and Development.
[FR Doc. E7-3830 Filed 3-5-07; 8:45 am]
BILLING CODE 4210-67-P