Additional Clarifying Guidance, Waivers, and Alternative Requirements for Grantees in Receipt of Community Development Block Grant Disaster Recovery Funds Under the Disaster Relief Appropriations Act, 2013, 40133-40137 [2014-16316]

Download as PDF Federal Register / Vol. 79, No. 133 / Friday, July 11, 2014 / Notices B. Solicitation of Public Comment This notice is soliciting comments from members of the public and affected parties concerning the collection of information described in Section A on the following: (1) Whether the proposed collection of information is necessary for the proper performance of the functions of the agency, including whether the information will have practical utility; (2) The accuracy of the agency’s estimate of the burden of the proposed collection of information; (3) Ways to enhance the quality, utility, and clarity of the information to be collected; and (4) Ways to minimize the burden of the collection of information on those who are to respond; including through the use of appropriate automated collection techniques or other forms of information technology, e.g., permitting electronic submission of responses. HUD encourages interested parties to submit comment in response to these questions. Authority: Section 3507 of the Paperwork Reduction Act of 1995, 44 U.S.C. Chapter 35. Dated: July 7, 2014. Laura M. Marin, Associate General Deputy Assistant Secretary for Housing-Associate Deputy Federal Housing Commissioner. [FR Doc. 2014–16314 Filed 7–10–14; 8:45 am] BILLING CODE 4210–67–P DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT [Docket No. FR–5696–N–10] Additional Clarifying Guidance, Waivers, and Alternative Requirements for Grantees in Receipt of Community Development Block Grant Disaster Recovery FundsUnder the Disaster Relief Appropriations Act, 2013 Office of the Assistant Secretary for Community Planning and Development, HUD. ACTION: Notice. AGENCY: This Notice provides additional clarifying guidance, waivers, and alternative requirements for all Community Development Block Grant (CDBG) disaster recovery grantees in receipt of funds under the Disaster Relief Appropriations Act, 2013 (Pub. L. 113–2).1 To date, the Department has tkelley on DSK3SPTVN1PROD with NOTICES SUMMARY: 1 Luzerne, PA initially received disaster assistance under Public Law 112–55 and was provided with additional assistance through Pub. L. 113–2. The waiver in this Notice specific to Luzerne, PA applies to both its 112–55 funds and 113–2 funds as described herein. VerDate Mar<15>2010 20:23 Jul 10, 2014 Jkt 232001 allocated $14.1 billion under the Act to assist recovery in the most impacted and distressed areas identified in major disaster declarations due to Hurricane Sandy and other eligible events in calendar years 2011, 2012, and 2013. DATES: Effective Date: July 16, 2014. FOR FURTHER INFORMATION CONTACT: Stan Gimont, Director, Office of Block Grant Assistance, Department of Housing and Urban Development, 451 7th Street SW., Room 7286, Washington, DC 20410, telephone number 202–708–3587. Persons with hearing or speech impairments may access this number via TTY by calling the Federal Relay Service at 800–877–8339. Facsimile inquiries may be sent to Mr. Gimont at 202–401–2044. (Except for the ‘‘800’’ number, these telephone numbers are not toll-free.) Email inquiries may be sent to disaster_recovery@hud.gov. SUPPLEMENTARY INFORMATION: Table of Contents I. Background II. Applicable Rules, Statutes, Waivers, and Alternative Requirements III. Catalog of Federal Domestic Assistance IV. Finding of No Significant Impact I. Background The Disaster Relief Appropriations Act, 2013 (Pub. L. 113–2, approved January 29, 2013) (Appropriations Act) made available $16 billion in Community Development Block Grant (CDBG) funds for necessary expenses related to disaster relief, long-term recovery, restoration of infrastructure and housing, and economic revitalization in the most impacted and distressed areas resulting from a major disaster declared pursuant to the Robert T. Stafford Disaster Relief and Emergency Assistance Act of 1974 (42 U.S.C. 5121 et seq.) (Stafford Act), due to Hurricane Sandy and other eligible events in calendar years 2011, 2012, and 2013. As the Appropriations Act requires funds to be awarded directly to a State, or unit of general local government (hereinafter, local government), at the discretion of the Secretary, the term ‘‘grantee’’ refers to any jurisdiction that has received a direct award from HUD under the Appropriations Act. On March 1, 2013, the President issued a sequestration order pursuant to section 251A of the Balanced Budget and Emergency Deficit Control Act, as amended (2 U.S.C. 901a), and reduced funding for CDBG–DR grants under the Appropriations Act to $15.18 billion. To date, $14.1 billion has been allocated for the areas most impacted by Hurricane Sandy and other disasters occurring in 2011, 2012, and 2013. To describe these PO 00000 Frm 00076 Fmt 4703 Sfmt 4703 40133 allocations and the accompanying requirements, the Department published multiple Federal Register notices: March 5, 2013 (78 FR 14329), April 19, 2013 (78 FR 23578), May 29, 2013 (78 FR 32262), August 2, 2013 (78 FR 46999), November 18, 2013 (78 FR 69104), March 27, 2014 (78 FR 17173), and June 3, 2014 (79 FR 31964), referred to collectively in this Notice as the ‘‘Prior Notices’’). The requirements of the Prior Notices continue to apply, except as modified by this Notice.2 II. Applicable Rules, Statutes, Waivers, and Alternative Requirements The Appropriations Act authorizes the Secretary to waive, or specify alternative requirements for, any provision of any statute or regulation that the Secretary administers in connection with HUD’s obligation or use by the recipient of these funds (except for requirements related to fair housing, nondiscrimination, labor standards, and the environment). Waivers and alternative requirements are based upon a determination by the Secretary that good cause exists and that the waiver or alternative requirement is not inconsistent with the overall purposes of title I of the HCD Act. Regulatory waiver authority is also provided by 24 CFR 5.110, 91.600, and 570.5. This Notice clarifies or modifies requirements of the Prior Notices. Except as noted, the waivers and alternative requirements in this Notice apply to all grants under the Appropriations Act. For each waiver and alternative requirement described in this Notice, the Secretary has determined that good cause exists and the action is not inconsistent with the overall purpose of the HCD Act. Grantees may request additional waivers and alternative requirements from the Department as needed to address specific needs related to their recovery activities. Under the requirements of the Appropriations Act, waivers must be published in the Federal Register no later than five days before the effective date of such waiver. 1. Reporting of contracts. Public Law 113–2 requires grantees ‘‘to maintain on a public Web site information accounting for how all grant funds are 2 Links to the Prior Notices, the text of the Appropriations Act, and additional guidance prepared by the Department for CDBG–DR grants, are available on HUD’s Web site under the Office of Community Planning and Development, Disaster Recovery Assistance: https://portal.hud.gov/ hudportal/HUD?src=/program_offices/comm_ planning/communitydevelopment/programs/drsi. The same information is also available on HUD’s OneCPD Web site: https://www.onecpd.info/cdbgdr/. E:\FR\FM\11JYN1.SGM 11JYN1 tkelley on DSK3SPTVN1PROD with NOTICES 40134 Federal Register / Vol. 79, No. 133 / Friday, July 11, 2014 / Notices used, including details of all contracts and ongoing procurement processes.’’ To streamline the reporting requirements for grantees by eliminating duplicative reporting efforts, and to provide greater transparency regarding procured contracts, HUD is removing the requirement that grantees identify contracts above $25,000 in HUD’s Disaster Recovery Reporting System (DRGR) because grantees are already reporting this information in the Federal Subaward Reporting System (FSRS) through USA Spending [usaspending.gov]. Grantees are still required to post contract information as described below. HUD is amending requirements described in the March 5, 2013 Notice as follows: a. Paragraph 2.b. at 78 FR 14337 is amended to exclude the requirement for grantees ‘‘to identify in the DRGR system any contract over $25,000,’’ and now reads as follows: ‘‘DRGR Action Plan. Each grantee must enter its Action Plan for Disaster Recovery, including performance measures, into HUD’s DRGR system. As more detailed information about uses of funds is identified by the grantee, it must be entered into the DRGR system at a level of detail that is sufficient to serve as the basis for acceptable performance reports, and permits HUD review of compliance requirements. The Action Plan must also be entered into the DRGR system so that the grantee is able to draw its CDBG–DR funds. The grantee may enter activities into DRGR before or after submission of the Action Plan to HUD. To enter an activity into the DRGR system, the grantee must know the activity type, national objective, and the organization that will be responsible for the activity. In addition, a Data Universal Numbering System (DUNS) number must be entered into the system for any entity carrying out a CDBG–DR funded activity, including the grantee, recipient(s) and subrecipient(s), contractor(s) and developers carrying out a CDBG–DR activity. Each activity entered into the DRGR system must also be categorized under a ‘‘project’’. Typically, projects are based on groups of activities that accomplish a similar, broad purpose (e.g., Housing, Infrastructure, or Economic Development) or are based on an area of service (e.g., Community A). If a grantee submits a partial Action Plan or amendment to describe just one program (e.g., Single Family Rehabilitation), that program is entered as a project in DRGR. Further, the budget of the program would be identified as the project’s budget. If a State grantee has only identified the VerDate Mar<15>2010 20:23 Jul 10, 2014 Jkt 232001 Method of Distribution (MOD) upon HUD’s approval of the published Action Plan, the MOD itself typically serves as the projects in the DRGR system, rather than the activities. As funds are distributed to subgrantees and subrecipients, who decide which specific activities to fund, those activity fields are then populated. b. Paragraph 23 at 78 FR 14344 is amended to exclude the requirement for grantees to ‘‘enter information on contracts in the DRGR system activity profiles (for all contracts valued over $25,000)’’ and now reads as follows: ‘‘Public Web site. The Appropriations Act requires grantees to maintain a public Web site which provides information accounting for how all grant funds are used, and managed/ administered, including details of all contracts and ongoing procurement policies. To meet this requirement, each grantee must make the following items available on its Web site: The Action Plan (including all amendments); each QPR (as created using the DRGR system); procurement policies and procedures; status of services or goods currently being procured by the grantee—e.g., phase of the procurement, requirements for proposals, etc.; a copy of contracts the grantee has procured directly; and a summary of all procured contracts, including those procured by the grantee, recipients, or subrecipients. Grantees should post only those contracts subject to 24 CFR 85.36 or in accordance with the State’s procurement policies. To assist grantees prepare this summary, HUD has developed a template. The template can be accessed at: https:// www.onecpd.info/cdbg-dr/. Grantees are required to use this template, and attach an updated version to DRGR each quarter as part of their QPR submissions. Updated summaries must also be posted quarterly on each grantee’s Web site.’’ 2. Incorporation of clarifications and requirements for grantees in receipt of grant awards made by HUD in response to disasters occurring in 2011 or 2012. Grantees in receipt of funds under the Appropriations Act for disasters occurring in 2011 or 2012 (see the Notice published in the Federal Register May 29, 2013, at 78 FR 32262) are advised that the following paragraphs in section VI. (Applicable Rules, Statutes, Waivers, and Alternative Requirements) of the Notice published November 18, 2013 apply to grant funds provided pursuant to Public Law 113–2: 3.b. (Liquid Fuel Supply Chain Assistance); 5. (Reimbursement of disaster recovery expenses); 6. (Duplication of benefits); 7. (Eligibility PO 00000 Frm 00077 Fmt 4703 Sfmt 4703 of needs assessment and risk analysis costs); 8. (Eligibility of mold remediation); 9. (Eligibility of public services and assistance to impacted households); 10. (Modification of the alternative requirement related to small business assistance); and 11. (Eligibility of Local Disaster Recovery Manager costs) (see 78 FR 69108 through 69110). These paragraphs impose or clarify general requirements or provide additional flexibility in program design and implementation to support resilient recovery following the 2011 and 2012 disasters, while also ensuring that statutory requirements unique to the Appropriations Act are met. Any new requirements established by this paragraph are applicable to all programs initiated in an Action Plan Amendment subsequent to the date of this Notice. 3. Tenant-based rental assistance (State of New Jersey, only). The State of New Jersey has requested a waiver of 42 U.S.C. 5305(a) in order to provide tenant-based rental assistance to households impacted by disasters eligible under the Appropriations Act. Eligible assistance includes rental assistance and utility payments and may also include rental costs (i.e., security deposits and utility deposits) when the grantee determines that such payments are necessary to help prevent a household from being homeless. While existing CDBG regulations allow payments for these purposes, those regulations limit assistance to a period not to exceed three months. The State’s tenant-based rental assistance will be funded through its Supportive Services program, will be limited to the beneficiaries of that program as described in the State’s approved Action Plan, and will not be tied to HUD’s Section 8 program assistance. As a result of Hurricane Sandy, thousands of households in New Jersey were displaced and need housing at a time when the State’s housing stock had been substantially reduced. The decrease in the housing supply placed upward pressure on housing costs, making housing less affordable for households already strained by hurricane-related expenses. To date, the State has invested more than $320 million to support the rehabilitation or construction of new affordable rental housing (to create approximately 7,000 units); however, the most vulnerable of Sandy-displaced households—including very low-income persons—continue to need immediate rental assistance until construction of affordable rental units is completed and those units become available. The goal of this waiver is to minimize the time households are homeless by E:\FR\FM\11JYN1.SGM 11JYN1 tkelley on DSK3SPTVN1PROD with NOTICES Federal Register / Vol. 79, No. 133 / Friday, July 11, 2014 / Notices providing re-housing and rental assistance, and by linking the person or family with services that can help them become stable and self-sufficient. Throughout the rental period, assisted households will receive referrals to available long-term units, as well as housing counseling. Further, the State plans to establish a referral process that will enable the targeted households to apply to live in the affordable housing units created under other CDBG–DR funded programs. The State’s use of CDBG–DR funds for this purpose advances the Department’s priority to support forward-thinking solutions to help communities that are struggling to house and serve persons and families that are homeless or at risk of homelessness. In addition, HUD has previously granted the States of Louisiana and New York, as well as New York City, similar waivers in response to Hurricanes Katrina, Rita, and Sandy. After reviewing the State’s request, HUD is waiving 42 U.S.C. 5305(a), to the extent necessary, to make eligible up to $17 million in rental assistance and utility payments paid for up to 2 years on behalf of homeless and at-risk low- and moderate-income households displaced by Hurricane Sandy, when such assistance or payments are part of a homeless prevention or rapid re-housing program or activity. The Department is approving the State’s request for a waiver to allow for the payment of tenant-based rental assistance. This waiver is in effect from January 1, 2014 to January 1, 2016. 4. Documentation of Low- and Moderate-Income National Objective for Multi-Unit Housing Projects (State of New Jersey, only). Per the HCD Act and the Prior Notices, Hurricane Sandy CDBG–DR grantees may fund the rehabilitation, reconstruction, and new construction of housing. To further address its housing needs, the State of New Jersey has requested to measure the benefit to low- and moderate-income households, in multiunit residential projects, in a manner more supportive of mixed income housing. In general, the applicable regulation, 24 CFR 570.208(a)(3), requires at least 51 percent of the units in an assisted multiunit structure to be occupied by residents that are income eligible. This method of calculating the benefit to lowand moderate-income households is often referred to as the structure basis. HUD has reviewed other housing assistance programs that measure benefit differently—only those units in a multi-unit structure occupied by income eligible residents are used to calculate the benefit to low- and moderate-income households. Under VerDate Mar<15>2010 20:23 Jul 10, 2014 Jkt 232001 this ‘‘unit’’ approach, when units are alike, the proportion of CDBG funds contributed to the project may be no more than the proportion of units in the project that will be occupied by incomeeligible households. For this reason, this approach is sometimes called the proportional units approach. 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 unit approach, the amount of assistance provided is equal to the cost of units occupied by low- and moderate-income households. Based on HUD experience, the unit approach can be more compatible with large-scale development of mixedincome housing. For example, in response to the widespread devastation caused by Hurricanes Katrina and Rita, HUD allowed the states of Louisiana and Mississippi to use this approach under their respective CDBG–DR programs. Additionally—(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, (2) in the HOME Investment Partnerships program, HUD’s primary housing production program, HUD grantees use funds to pay for the cost of affordable units, and (3) the Neighborhood Stabilization Program permitted grantees to use a unit basis approach to meet the CDBG low- and moderate-income benefit requirement. After review of the State of New Jersey’s Action Plan for Disaster Recovery, and discussions with the State regarding its intent to encourage mixed-income housing development, HUD has determined that it is consistent with the overall purposes of the HCD Act to provide the State the requested additional flexibility in measuring program benefit. Therefore, the waiver and alternative requirements allow the State to measure benefit within a housing development project: (1) According to the existing CDBG requirements or (2) according to the unit approach described above for multi-unit housing projects involving rehabilitation and/or reconstruction. However, the second option may only be used if the units are generally comparable in size and finishes. The State must select and use 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. The State is reminded that per 2 CFR part 225, CDBG–DR costs must be necessary and reasonable. To meet this requirement, the State must develop PO 00000 Frm 00078 Fmt 4703 Sfmt 4703 40135 policies and procedures to document its costs for housing investments are necessary and reasonable. The State must also meet all civil rights and fair housing requirements and comply with any applicable civil rights or fair housing related voluntary compliance agreements, settlement agreements, or consent decrees. 5. Limited purpose modification of overall benefit requirement (Luzerne County, Pennsylvania, only). The primary objective of the Housing and Community Development Act is the ‘‘development of viable urban communities, by providing decent housing and a suitable living environment and expanding economic opportunities, principally for persons of low- and moderate-income’’ (42 U.S.C. 5301 et seq.). To carry out this objective, the statute requires that 70 percent of the aggregate of the grantee’s CDBG program’s funds be used to support activities benefitting low- and moderateincome persons. This target can be difficult, if not impossible, for many CDBG–DR grantees to reach as a disaster impacts entire communities—regardless of income. Further, it may prevent grantees from providing assistance to the most damaged areas of need. Therefore, as described by the Prior Notices, Luzerne County, in addition to the other grantees under the Appropriations Act, received a waiver and alternative requirement— only 50 percent of funds must be used for activities that benefit low- and moderate-income persons. Additional flexibility was provided in the March 5, 2013 Notice (78 FR 14329) and the May 29, 2013 Notice (FR 32262), which is applicable to Luzerne County. It allows a grantee to request a further reduction of its overall benefit requirement by submitting a justification that, at a minimum: (a) Identifies the planned activities that meet the needs of its lowand moderate-income population; (b) describes proposed activity(ies) and/or program(s) that will be affected by the alternative requirement, including their proposed location(s) and role(s) in the grantee’s long-term disaster recovery plan; (c) describes how the activities/ programs identified in (b) prevent the grantee from meeting the 50 percent requirement; and (d) demonstrates that the needs of non-low and moderateincome persons or areas are disproportionately greater, and that the jurisdiction lacks other resources to serve them. After review of grantee requests, under the Appropriations Act, HUD can grant such a waiver request only if the Secretary finds a compelling need to reduce the overall benefit below 50 percent. E:\FR\FM\11JYN1.SGM 11JYN1 tkelley on DSK3SPTVN1PROD with NOTICES 40136 Federal Register / Vol. 79, No. 133 / Friday, July 11, 2014 / Notices In response to the above, Luzerne County submitted justification addressing the required criteria. As described in the correspondence, the county has received two awards of CDBG–DR funds (appropriated under two separate laws and totaling more than $25.5 million) in response to disasters that occurred in 2011 (Hurricane Irene and Tropical Storm Lee). The county’s first allocation was for $15,738,806 under Section 239 of the Department of Housing and Urban Development Appropriations Act, 2012 (Pub. L. 112–55, approved November 18, 2011). The second allocation to the county for $9,763,000 was made under Public Law 113–2. Initially, the county’s first award allocated funds to acquisition/buyouts, housing rehabilitation and mitigation, and infrastructure. The county anticipated that buyouts would be primarily paid for using FEMA funds under the FEMA’s Hazard Mitigation Grant Program; CDBG–DR funds would provide the local match (25 percent). However, following approval of the county’s CDBG–DR Action Plan, FEMA announced that requests for acquisition far exceeded available funds. Thus, citizens and local elected officials requested that CDBG–DR address this unmet need. In response, the county participated in public meetings to gauge the scope of unmet need. It was determined that approximately 100 residential properties (across 14 jurisdictions) could not be funded by FEMA, but those property owners wished to participate in a voluntary buyout program. Additionally, while other citizens were no longer interested in a buyout (they were either back in their homes or would be soon), they were in need of assistance to elevate or otherwise mitigate their disasterimpacted homes. As a result, the county amended its Action Plan to pay 100 percent of the costs associated with acquiring properties, and demolishing any structures, in order to assist participating households’ recovery in a safer area, and reduce future flood hazards and prevent the loss of life. In counties such as Luzerne with a history of flooding, the need for a buyout program is particularly compelling. The county’s buyout activities ($11,951,625 for residential properties and $1 million for commercial properties) will use the majority of its first CDBG–DR allocation. The remainder of funds are programmed to infrastructure ($1.2 million) and administration and planning ($1.6 million). While the Action Plan includes housing rehabilitation as an eligible activity, this will only be VerDate Mar<15>2010 20:23 Jul 10, 2014 Jkt 232001 funded if all buyout needs have been addressed and CDBG–DR funds are available. Of note, Luzerne County’s residential buyout program is prioritizing low- and moderate-income property owners. To date, of the 100 properties estimated to participate in the program, 68 property owners have submitted preapplications. An initial review shows that only 30 of the 68 owners are lowand moderate-income households (44 percent). Approximately 44 percent of the households will be of low- and moderate-income, and the county estimates that of the total amount budgeted for residential buyouts, $3,940,715 will benefit low- and moderate-income households. In addition, the county has plans to address the needs of low- and moderate income households it moves out of harm’s way, through a down payment assistance to assist households who require assistance in buying a replacement home. As applications with the greatest need under the infrastructure program and the commercial buyout programs are not in areas with significant low-and moderate- income populations, these programs will not help the county meet its overall benefit requirement. The county anticipates an overall low- and moderate-income benefit of 27.82 percent for its first CDBG–DR allocation. In regards to the county’s second award of CDBG–DR funds, the primary activity to be funded is infrastructure ($8,786,700). The remaining funds, $976,300, are for administration and planning. As the census tracts and block groups most impacted by the 2011 disasters and in need of assistance are not predominately low- and moderateincome, and as infrastructure activities generally only meet the low- and moderate-income national objective on an area basis, the county has requested a reduction of the overall benefit requirement for this grant as well. (The county is prioritizing infrastructure activities with this grant due to the significant unmet needs demonstrated. Further, market studies indicate little demand in the county for new housing stock and the county’s business assistance program received no applications). Based on infrastructure applications received to date, the county anticipates that three projects, totaling $3,268,000, will benefit low- and moderate-income households on an area basis. Thus, the overall low- and moderate-income benefit for the second grant award is projected to be 37.19 percent. To enable the county to undertake the activities it has deemed most critical for PO 00000 Frm 00079 Fmt 4703 Sfmt 4703 its recovery, and to ensure that low- and moderate-income households are adequately served and/or assisted, HUD is granting a limited waiver and alternative requirement to reduce the overall benefit from 50 percent to not less than 27 percent for the county’s first allocation of CDBG–DR funds, and to not less than 37 percent for the county’s second allocation of CDBG–DR funds. Based on the county’s justification, the Secretary has found a compelling need for this reduction due to the unique circumstances related to Luzerne County’s request. In particular, HUD notes that the county prioritized the needs of low- and moderate-income populations with its first allocation; the county has identified getting people out of harm’s way as a top priority and this waiver will allow low- and moderateincome families to take advantage of Luzerne’s program for this purpose; and finally, the waiver will enable the county to undertake critical infrastructure activities necessary to its recovery. This is a limited waiver modifying 42 U.S.C. 5301(c), 42 U.S.C. 5304(b)(3)(A), 24 CFR 570.484, and 570.200(a)(3) only to the extent necessary to permit the county to use funds appropriated by Public Law 112– 55 for its residential buyout program, to use funds appropriated by Public Law 113–2 for its infrastructure program, as described by the county’s Action Plans. III. Catalog of Federal Domestic Assistance The Catalog of Federal Domestic Assistance number for the disaster recovery grants under this Notice is as follows: 14.269. IV. 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(2)(C)). The FONSI is available for public inspection between 8 a.m. and 5 p.m. weekdays in the Regulations Division, Office of General Counsel, Department of Housing and Urban Development, 451 7th Street SW., Room 10276, Washington, DC 20410–0500. Due to security measures at the HUD Headquarters building, an advance appointment to review the docket file must be scheduled by calling the Regulations Division at 202–708–3055 (this is not a toll-free number). Hearing or speech-impaired individuals may access this number through TTY by calling the toll-free Federal Relay Service at 800–877–8339. E:\FR\FM\11JYN1.SGM 11JYN1 Federal Register / Vol. 79, No. 133 / Friday, July 11, 2014 / Notices Dated: July 7, 2014. Clifford Taffet, General Deputy Assistant Secretary for Community Planning and Development. [FR Doc. 2014–16316 Filed 7–10–14; 8:45 am] BILLING CODE 4210–67–P DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT [Docket No. FR–5750–N–28] Federal Property Suitable as Facilities To Assist the Homeless Office of the Assistant Secretary for Community Planning and Development, HUD. ACTION: Notice. AGENCY: This Notice identifies unutilized, underutilized, excess, and surplus Federal property reviewed by HUD for suitability for use to assist the homeless. FOR FURTHER INFORMATION CONTACT: Juanita Perry, Department of Housing and Urban Development, 451 Seventh Street SW., Room 7266, Washington, DC 20410; telephone (202) 402–3970; TTY number for the hearing- and speechimpaired (202) 708–2565 (these telephone numbers are not toll-free), or call the toll-free Title V information line at 800–927–7588. SUPPLEMENTARY INFORMATION: In accordance with 24 CFR part 581 and section 501 of the Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 11411), as amended, HUD is publishing this Notice to identify Federal buildings and other real property that HUD has reviewed for suitability for use to assist the homeless. The properties were reviewed using information provided to HUD by Federal landholding agencies regarding unutilized and underutilized buildings and real property controlled by such agencies or by GSA regarding its inventory of excess or surplus Federal property. This Notice is also published in order to comply with the December 12, 1988 Court Order in National Coalition for the Homeless v. Veterans Administration, No. 88–2503– OG (D.D.C.). Properties reviewed are listed in this Notice according to the following categories: Suitable/available, suitable/ unavailable, and suitable/to be excess, and unsuitable. The properties listed in the three suitable categories have been reviewed by the landholding agencies, and each agency has transmitted to HUD: (1) Its intention to make the property available for use to assist the homeless, (2) its intention to declare the property excess to the agency’s needs, or tkelley on DSK3SPTVN1PROD with NOTICES SUMMARY: VerDate Mar<15>2010 20:23 Jul 10, 2014 Jkt 232001 (3) a statement of the reasons that the property cannot be declared excess or made available for use as facilities to assist the homeless. Properties listed as suitable/available will be available exclusively for homeless use for a period of 60 days from the date of this Notice. Where property is described as for ‘‘off-site use only’’ recipients of the property will be required to relocate the building to their own site at their own expense. Homeless assistance providers interested in any such property should send a written expression of interest to HHS, addressed to Theresa Ritta, Ms. Theresa M. Ritta, Chief Real Property Branch, the Department of Health and Human Services, Room 5B–17, Parklawn Building, 5600 Fishers Lane, Rockville, MD 20857, (301) 443–2265 (This is not a toll-free number.) HHS will mail to the interested provider an application packet, which will include instructions for completing the application. In order to maximize the opportunity to utilize a suitable property, providers should submit their written expressions of interest as soon as possible. For complete details concerning the processing of applications, the reader is encouraged to refer to the interim rule governing this program, 24 CFR part 581. For properties listed as suitable/to be excess, that property may, if subsequently accepted as excess by GSA, be made available for use by the homeless in accordance with applicable law, subject to screening for other Federal use. At the appropriate time, HUD will publish the property in a Notice showing it as either suitable/ available or suitable/unavailable. For properties listed as suitable/ unavailable, the landholding agency has decided that the property cannot be declared excess or made available for use to assist the homeless, and the property will not be available. Properties listed as unsuitable will not be made available for any other purpose for 20 days from the date of this Notice. Homeless assistance providers interested in a review by HUD of the determination of unsuitability should call the toll free information line at 1– 800–927–7588 for detailed instructions or write a letter to Ann Marie Oliva at the address listed at the beginning of this Notice. Included in the request for review should be the property address (including zip code), the date of publication in the Federal Register, the landholding agency, and the property number. For more information regarding particular properties identified in this Notice (i.e., acreage, floor plan, existing PO 00000 Frm 00080 Fmt 4703 Sfmt 4703 40137 sanitary facilities, exact street address), providers should contact the appropriate landholding agencies at the following addresses: AGRICULTURE: Ms. Debra Kerr, Department of Agriculture, Reporters Building, 300 7th Street SW., Room 300, Washington, DC 20024, (202) 720–8873; AIR FORCE: Ms. Connie Lotfi, Air Force Real Property Agency, 143 Billy Mitchell Blvd., San Antonio, TX 78226, (210) 925–3047; COE: Mr. Scott Whiteford, Army Corps of Engineers, Real Estate, CEMP–CR, 441 G Street NW., Washington, DC 20314; (202) 761–5542; ENERGY: Mr. David Steinau, Department of Energy, Office of Property Management, 1000 Independence Ave. SW., Washington, DC 20585 (202) 287–1503; GSA: Mr. Flavio Peres, General Services Administration, Office of Real Property Utilization and Disposal, 1800 F Street NW., Room 7040, Washington, DC 20405, (202) 501–0084; INTERIOR: Mr. Michael Wright, Acquisition & Property Management, Department of the Interior, 3960 N. 56th Ave. #104, Hollywood, FL 33021; (443) 223–4639; NAVY: Mr. Steve Matteo, Department of the Navy, Asset Management Division, Naval Facilities Engineering Command, Washington Navy Yard, 1330 Patterson Ave. SW., Suite 1000, Washington, DC 20374; (202) 685–9426 (These are not toll-free number). Dated: July 3, 2014. Brian P. Fitzmauricem Director, Division of Community Assistance, Office of Special Needs Assistance Programs. TITLE V, FEDERAL SURPLUS PROPERTY PROGRAMFEDERAL REGISTER REPORT FOR 07/11/2014 Suitable/Available Properties Building Colorado Turley House Reclamation Grand Junction CO 81503 Landholding Agency: Interior Property Number: 61201420004 Status: Unutilized Directions: House; Garage/Carport; Shop/ Shed Comments: off-site removal only; no future service need; 3,603 total sq. ft.; structural delicacies; contact interior for more information. Georgia Records Holding 661246B024, RPUD 03 54976 934 College Station Road Athens GA 30605 Landholding Agency: Agriculture Property Number: 15201420021 Status: Excess Comments: off-site removal only; 196 sq. ft.; storage; good conditions; secured area; contact Agriculture for more information. E:\FR\FM\11JYN1.SGM 11JYN1

Agencies

[Federal Register Volume 79, Number 133 (Friday, July 11, 2014)]
[Notices]
[Pages 40133-40137]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-16316]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5696-N-10]


Additional Clarifying Guidance, Waivers, and Alternative 
Requirements for Grantees in Receipt of Community Development Block 
Grant Disaster Recovery FundsUnder the Disaster Relief Appropriations 
Act, 2013

AGENCY: Office of the Assistant Secretary for Community Planning and 
Development, HUD.

ACTION:  Notice.

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SUMMARY: This Notice provides additional clarifying guidance, waivers, 
and alternative requirements for all Community Development Block Grant 
(CDBG) disaster recovery grantees in receipt of funds under the 
Disaster Relief Appropriations Act, 2013 (Pub. L. 113-2).\1\ To date, 
the Department has allocated $14.1 billion under the Act to assist 
recovery in the most impacted and distressed areas identified in major 
disaster declarations due to Hurricane Sandy and other eligible events 
in calendar years 2011, 2012, and 2013.
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    \1\ Luzerne, PA initially received disaster assistance under 
Public Law 112-55 and was provided with additional assistance 
through Pub. L. 113-2. The waiver in this Notice specific to 
Luzerne, PA applies to both its 112-55 funds and 113-2 funds as 
described herein.

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DATES: Effective Date: July 16, 2014.

FOR FURTHER INFORMATION CONTACT: Stan Gimont, Director, Office of Block 
Grant Assistance, Department of Housing and Urban Development, 451 7th 
Street SW., Room 7286, Washington, DC 20410, telephone number 202-708-
3587. Persons with hearing or speech impairments may access this number 
via TTY by calling the Federal Relay Service at 800-877-8339. Facsimile 
inquiries may be sent to Mr. Gimont at 202-401-2044. (Except for the 
``800'' number, these telephone numbers are not toll-free.) Email 
inquiries may be sent to disaster_recovery@hud.gov.

SUPPLEMENTARY INFORMATION: 

Table of Contents

I. Background
II. Applicable Rules, Statutes, Waivers, and Alternative 
Requirements
III. Catalog of Federal Domestic Assistance
IV. Finding of No Significant Impact

I. Background

    The Disaster Relief Appropriations Act, 2013 (Pub. L. 113-2, 
approved January 29, 2013) (Appropriations Act) made available $16 
billion in Community Development Block Grant (CDBG) funds for necessary 
expenses related to disaster relief, long-term recovery, restoration of 
infrastructure and housing, and economic revitalization in the most 
impacted and distressed areas resulting from a major disaster declared 
pursuant to the Robert T. Stafford Disaster Relief and Emergency 
Assistance Act of 1974 (42 U.S.C. 5121 et seq.) (Stafford Act), due to 
Hurricane Sandy and other eligible events in calendar years 2011, 2012, 
and 2013. As the Appropriations Act requires funds to be awarded 
directly to a State, or unit of general local government (hereinafter, 
local government), at the discretion of the Secretary, the term 
``grantee'' refers to any jurisdiction that has received a direct award 
from HUD under the Appropriations Act.
    On March 1, 2013, the President issued a sequestration order 
pursuant to section 251A of the Balanced Budget and Emergency Deficit 
Control Act, as amended (2 U.S.C. 901a), and reduced funding for CDBG-
DR grants under the Appropriations Act to $15.18 billion. To date, 
$14.1 billion has been allocated for the areas most impacted by 
Hurricane Sandy and other disasters occurring in 2011, 2012, and 2013. 
To describe these allocations and the accompanying requirements, the 
Department published multiple Federal Register notices: March 5, 2013 
(78 FR 14329), April 19, 2013 (78 FR 23578), May 29, 2013 (78 FR 
32262), August 2, 2013 (78 FR 46999), November 18, 2013 (78 FR 69104), 
March 27, 2014 (78 FR 17173), and June 3, 2014 (79 FR 31964), referred 
to collectively in this Notice as the ``Prior Notices''). The 
requirements of the Prior Notices continue to apply, except as modified 
by this Notice.\2\
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    \2\ Links to the Prior Notices, the text of the Appropriations 
Act, and additional guidance prepared by the Department for CDBG-DR 
grants, are available on HUD's Web site under the Office of 
Community Planning and Development, Disaster Recovery Assistance: 
https://portal.hud.gov/hudportal/HUD?src=/program_offices/comm_planning/communitydevelopment/programs/drsi. The same information is 
also available on HUD's OneCPD Web site: https://www.onecpd.info/cdbg-dr/.
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II. Applicable Rules, Statutes, Waivers, and Alternative Requirements

    The Appropriations Act authorizes the Secretary to waive, or 
specify alternative requirements for, any provision of any statute or 
regulation that the Secretary administers in connection with HUD's 
obligation or use by the recipient of these funds (except for 
requirements related to fair housing, nondiscrimination, labor 
standards, and the environment). Waivers and alternative requirements 
are based upon a determination by the Secretary that good cause exists 
and that the waiver or alternative requirement is not inconsistent with 
the overall purposes of title I of the HCD Act. Regulatory waiver 
authority is also provided by 24 CFR 5.110, 91.600, and 570.5.
    This Notice clarifies or modifies requirements of the Prior 
Notices. Except as noted, the waivers and alternative requirements in 
this Notice apply to all grants under the Appropriations Act. For each 
waiver and alternative requirement described in this Notice, the 
Secretary has determined that good cause exists and the action is not 
inconsistent with the overall purpose of the HCD Act. Grantees may 
request additional waivers and alternative requirements from the 
Department as needed to address specific needs related to their 
recovery activities. Under the requirements of the Appropriations Act, 
waivers must be published in the Federal Register no later than five 
days before the effective date of such waiver.
    1. Reporting of contracts. Public Law 113-2 requires grantees ``to 
maintain on a public Web site information accounting for how all grant 
funds are

[[Page 40134]]

used, including details of all contracts and ongoing procurement 
processes.'' To streamline the reporting requirements for grantees by 
eliminating duplicative reporting efforts, and to provide greater 
transparency regarding procured contracts, HUD is removing the 
requirement that grantees identify contracts above $25,000 in HUD's 
Disaster Recovery Reporting System (DRGR) because grantees are already 
reporting this information in the Federal Subaward Reporting System 
(FSRS) through USA Spending [usaspending.gov]. Grantees are still 
required to post contract information as described below. HUD is 
amending requirements described in the March 5, 2013 Notice as follows:
    a. Paragraph 2.b. at 78 FR 14337 is amended to exclude the 
requirement for grantees ``to identify in the DRGR system any contract 
over $25,000,'' and now reads as follows: ``DRGR Action Plan. Each 
grantee must enter its Action Plan for Disaster Recovery, including 
performance measures, into HUD's DRGR system. As more detailed 
information about uses of funds is identified by the grantee, it must 
be entered into the DRGR system at a level of detail that is sufficient 
to serve as the basis for acceptable performance reports, and permits 
HUD review of compliance requirements.
    The Action Plan must also be entered into the DRGR system so that 
the grantee is able to draw its CDBG-DR funds. The grantee may enter 
activities into DRGR before or after submission of the Action Plan to 
HUD. To enter an activity into the DRGR system, the grantee must know 
the activity type, national objective, and the organization that will 
be responsible for the activity. In addition, a Data Universal 
Numbering System (DUNS) number must be entered into the system for any 
entity carrying out a CDBG-DR funded activity, including the grantee, 
recipient(s) and subrecipient(s), contractor(s) and developers carrying 
out a CDBG-DR activity.
    Each activity entered into the DRGR system must also be categorized 
under a ``project''. Typically, projects are based on groups of 
activities that accomplish a similar, broad purpose (e.g., Housing, 
Infrastructure, or Economic Development) or are based on an area of 
service (e.g., Community A). If a grantee submits a partial Action Plan 
or amendment to describe just one program (e.g., Single Family 
Rehabilitation), that program is entered as a project in DRGR. Further, 
the budget of the program would be identified as the project's budget. 
If a State grantee has only identified the Method of Distribution (MOD) 
upon HUD's approval of the published Action Plan, the MOD itself 
typically serves as the projects in the DRGR system, rather than the 
activities. As funds are distributed to subgrantees and subrecipients, 
who decide which specific activities to fund, those activity fields are 
then populated.
    b. Paragraph 23 at 78 FR 14344 is amended to exclude the 
requirement for grantees to ``enter information on contracts in the 
DRGR system activity profiles (for all contracts valued over $25,000)'' 
and now reads as follows: ``Public Web site. The Appropriations Act 
requires grantees to maintain a public Web site which provides 
information accounting for how all grant funds are used, and managed/
administered, including details of all contracts and ongoing 
procurement policies. To meet this requirement, each grantee must make 
the following items available on its Web site: The Action Plan 
(including all amendments); each QPR (as created using the DRGR 
system); procurement policies and procedures; status of services or 
goods currently being procured by the grantee--e.g., phase of the 
procurement, requirements for proposals, etc.; a copy of contracts the 
grantee has procured directly; and a summary of all procured contracts, 
including those procured by the grantee, recipients, or subrecipients. 
Grantees should post only those contracts subject to 24 CFR 85.36 or in 
accordance with the State's procurement policies. To assist grantees 
prepare this summary, HUD has developed a template. The template can be 
accessed at: https://www.onecpd.info/cdbg-dr/. Grantees are required to 
use this template, and attach an updated version to DRGR each quarter 
as part of their QPR submissions. Updated summaries must also be posted 
quarterly on each grantee's Web site.''
    2. Incorporation of clarifications and requirements for grantees in 
receipt of grant awards made by HUD in response to disasters occurring 
in 2011 or 2012. Grantees in receipt of funds under the Appropriations 
Act for disasters occurring in 2011 or 2012 (see the Notice published 
in the Federal Register May 29, 2013, at 78 FR 32262) are advised that 
the following paragraphs in section VI. (Applicable Rules, Statutes, 
Waivers, and Alternative Requirements) of the Notice published November 
18, 2013 apply to grant funds provided pursuant to Public Law 113-2: 
3.b. (Liquid Fuel Supply Chain Assistance); 5. (Reimbursement of 
disaster recovery expenses); 6. (Duplication of benefits); 7. 
(Eligibility of needs assessment and risk analysis costs); 8. 
(Eligibility of mold remediation); 9. (Eligibility of public services 
and assistance to impacted households); 10. (Modification of the 
alternative requirement related to small business assistance); and 11. 
(Eligibility of Local Disaster Recovery Manager costs) (see 78 FR 69108 
through 69110). These paragraphs impose or clarify general requirements 
or provide additional flexibility in program design and implementation 
to support resilient recovery following the 2011 and 2012 disasters, 
while also ensuring that statutory requirements unique to the 
Appropriations Act are met. Any new requirements established by this 
paragraph are applicable to all programs initiated in an Action Plan 
Amendment subsequent to the date of this Notice.
    3. Tenant-based rental assistance (State of New Jersey, only). The 
State of New Jersey has requested a waiver of 42 U.S.C. 5305(a) in 
order to provide tenant-based rental assistance to households impacted 
by disasters eligible under the Appropriations Act. Eligible assistance 
includes rental assistance and utility payments and may also include 
rental costs (i.e., security deposits and utility deposits) when the 
grantee determines that such payments are necessary to help prevent a 
household from being homeless. While existing CDBG regulations allow 
payments for these purposes, those regulations limit assistance to a 
period not to exceed three months. The State's tenant-based rental 
assistance will be funded through its Supportive Services program, will 
be limited to the beneficiaries of that program as described in the 
State's approved Action Plan, and will not be tied to HUD's Section 8 
program assistance.
    As a result of Hurricane Sandy, thousands of households in New 
Jersey were displaced and need housing at a time when the State's 
housing stock had been substantially reduced. The decrease in the 
housing supply placed upward pressure on housing costs, making housing 
less affordable for households already strained by hurricane-related 
expenses. To date, the State has invested more than $320 million to 
support the rehabilitation or construction of new affordable rental 
housing (to create approximately 7,000 units); however, the most 
vulnerable of Sandy-displaced households--including very low-income 
persons--continue to need immediate rental assistance until 
construction of affordable rental units is completed and those units 
become available.
    The goal of this waiver is to minimize the time households are 
homeless by

[[Page 40135]]

providing re-housing and rental assistance, and by linking the person 
or family with services that can help them become stable and self-
sufficient. Throughout the rental period, assisted households will 
receive referrals to available long-term units, as well as housing 
counseling. Further, the State plans to establish a referral process 
that will enable the targeted households to apply to live in the 
affordable housing units created under other CDBG-DR funded programs.
    The State's use of CDBG-DR funds for this purpose advances the 
Department's priority to support forward-thinking solutions to help 
communities that are struggling to house and serve persons and families 
that are homeless or at risk of homelessness. In addition, HUD has 
previously granted the States of Louisiana and New York, as well as New 
York City, similar waivers in response to Hurricanes Katrina, Rita, and 
Sandy. After reviewing the State's request, HUD is waiving 42 U.S.C. 
5305(a), to the extent necessary, to make eligible up to $17 million in 
rental assistance and utility payments paid for up to 2 years on behalf 
of homeless and at-risk low- and moderate-income households displaced 
by Hurricane Sandy, when such assistance or payments are part of a 
homeless prevention or rapid re-housing program or activity. The 
Department is approving the State's request for a waiver to allow for 
the payment of tenant-based rental assistance. This waiver is in effect 
from January 1, 2014 to January 1, 2016.
    4. Documentation of Low- and Moderate-Income National Objective for 
Multi-Unit Housing Projects (State of New Jersey, only). Per the HCD 
Act and the Prior Notices, Hurricane Sandy CDBG-DR grantees may fund 
the rehabilitation, reconstruction, and new construction of housing. To 
further address its housing needs, the State of New Jersey has 
requested to measure the benefit to low- and moderate-income 
households, in multiunit residential projects, in a manner more 
supportive of mixed income housing. In general, the applicable 
regulation, 24 CFR 570.208(a)(3), requires at least 51 percent of the 
units in an assisted multi-unit structure to be occupied by residents 
that are income eligible. This method of calculating the benefit to 
low- and moderate-income households is often referred to as the 
structure basis.
    HUD has reviewed other housing assistance programs that measure 
benefit differently--only those units in a multi-unit structure 
occupied by income eligible residents are used to calculate the benefit 
to low- and moderate-income households. Under this ``unit'' approach, 
when units are alike, the proportion of CDBG funds contributed to the 
project may be no more than the proportion of units in the project that 
will be occupied by income-eligible households. For this reason, this 
approach is sometimes called the proportional units approach. 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 unit approach, the amount of assistance 
provided is equal to the cost of units occupied by low- and moderate-
income households.
    Based on HUD experience, the unit approach can be more compatible 
with large-scale development of mixed-income housing. For example, in 
response to the widespread devastation caused by Hurricanes Katrina and 
Rita, HUD allowed the states of Louisiana and Mississippi to use this 
approach under their respective CDBG-DR programs. Additionally--(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, (2) 
in the HOME Investment Partnerships program, HUD's primary housing 
production program, HUD grantees use funds to pay for the cost of 
affordable units, and (3) the Neighborhood Stabilization Program 
permitted grantees to use a unit basis approach to meet the CDBG low- 
and moderate-income benefit requirement.
    After review of the State of New Jersey's Action Plan for Disaster 
Recovery, and discussions with the State regarding its intent to 
encourage mixed-income housing development, HUD has determined that it 
is consistent with the overall purposes of the HCD Act to provide the 
State the requested additional flexibility in measuring program 
benefit. Therefore, the waiver and alternative requirements allow the 
State to measure benefit within a housing development project: (1) 
According to the existing CDBG requirements or (2) according to the 
unit approach described above for multi-unit housing projects involving 
rehabilitation and/or reconstruction. However, the second option may 
only be used if the units are generally comparable in size and 
finishes. The State must select and use 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. The State is reminded that per 2 
CFR part 225, CDBG-DR costs must be necessary and reasonable. To meet 
this requirement, the State must develop policies and procedures to 
document its costs for housing investments are necessary and 
reasonable. The State must also meet all civil rights and fair housing 
requirements and comply with any applicable civil rights or fair 
housing related voluntary compliance agreements, settlement agreements, 
or consent decrees.
    5. Limited purpose modification of overall benefit requirement 
(Luzerne County, Pennsylvania, only). The primary objective of the 
Housing and Community Development Act is the ``development of viable 
urban communities, by providing decent housing and a suitable living 
environment and expanding economic opportunities, principally for 
persons of low- and moderate-income'' (42 U.S.C. 5301 et seq.). To 
carry out this objective, the statute requires that 70 percent of the 
aggregate of the grantee's CDBG program's funds be used to support 
activities benefitting low- and moderate-income persons.
    This target can be difficult, if not impossible, for many CDBG-DR 
grantees to reach as a disaster impacts entire communities--regardless 
of income. Further, it may prevent grantees from providing assistance 
to the most damaged areas of need. Therefore, as described by the Prior 
Notices, Luzerne County, in addition to the other grantees under the 
Appropriations Act, received a waiver and alternative requirement--only 
50 percent of funds must be used for activities that benefit low- and 
moderate-income persons. Additional flexibility was provided in the 
March 5, 2013 Notice (78 FR 14329) and the May 29, 2013 Notice (FR 
32262), which is applicable to Luzerne County. It allows a grantee to 
request a further reduction of its overall benefit requirement by 
submitting a justification that, at a minimum: (a) Identifies the 
planned activities that meet the needs of its low- and moderate-income 
population; (b) describes proposed activity(ies) and/or program(s) that 
will be affected by the alternative requirement, including their 
proposed location(s) and role(s) in the grantee's long-term disaster 
recovery plan; (c) describes how the activities/programs identified in 
(b) prevent the grantee from meeting the 50 percent requirement; and 
(d) demonstrates that the needs of non-low and moderate-income persons 
or areas are disproportionately greater, and that the jurisdiction 
lacks other resources to serve them. After review of grantee requests, 
under the Appropriations Act, HUD can grant such a waiver request only 
if the Secretary finds a compelling need to reduce the overall benefit 
below 50 percent.

[[Page 40136]]

    In response to the above, Luzerne County submitted justification 
addressing the required criteria. As described in the correspondence, 
the county has received two awards of CDBG-DR funds (appropriated under 
two separate laws and totaling more than $25.5 million) in response to 
disasters that occurred in 2011 (Hurricane Irene and Tropical Storm 
Lee). The county's first allocation was for $15,738,806 under Section 
239 of the Department of Housing and Urban Development Appropriations 
Act, 2012 (Pub. L. 112-55, approved November 18, 2011). The second 
allocation to the county for $9,763,000 was made under Public Law 113-
2.
    Initially, the county's first award allocated funds to acquisition/
buyouts, housing rehabilitation and mitigation, and infrastructure. The 
county anticipated that buyouts would be primarily paid for using FEMA 
funds under the FEMA's Hazard Mitigation Grant Program; CDBG-DR funds 
would provide the local match (25 percent). However, following approval 
of the county's CDBG-DR Action Plan, FEMA announced that requests for 
acquisition far exceeded available funds. Thus, citizens and local 
elected officials requested that CDBG-DR address this unmet need. In 
response, the county participated in public meetings to gauge the scope 
of unmet need. It was determined that approximately 100 residential 
properties (across 14 jurisdictions) could not be funded by FEMA, but 
those property owners wished to participate in a voluntary buyout 
program. Additionally, while other citizens were no longer interested 
in a buyout (they were either back in their homes or would be soon), 
they were in need of assistance to elevate or otherwise mitigate their 
disaster-impacted homes. As a result, the county amended its Action 
Plan to pay 100 percent of the costs associated with acquiring 
properties, and demolishing any structures, in order to assist 
participating households' recovery in a safer area, and reduce future 
flood hazards and prevent the loss of life. In counties such as Luzerne 
with a history of flooding, the need for a buyout program is 
particularly compelling. The county's buyout activities ($11,951,625 
for residential properties and $1 million for commercial properties) 
will use the majority of its first CDBG-DR allocation. The remainder of 
funds are programmed to infrastructure ($1.2 million) and 
administration and planning ($1.6 million). While the Action Plan 
includes housing rehabilitation as an eligible activity, this will only 
be funded if all buyout needs have been addressed and CDBG-DR funds are 
available.
    Of note, Luzerne County's residential buyout program is 
prioritizing low- and moderate-income property owners. To date, of the 
100 properties estimated to participate in the program, 68 property 
owners have submitted pre-applications. An initial review shows that 
only 30 of the 68 owners are low- and moderate-income households (44 
percent). Approximately 44 percent of the households will be of low- 
and moderate-income, and the county estimates that of the total amount 
budgeted for residential buyouts, $3,940,715 will benefit low- and 
moderate-income households. In addition, the county has plans to 
address the needs of low- and moderate income households it moves out 
of harm's way, through a down payment assistance to assist households 
who require assistance in buying a replacement home. As applications 
with the greatest need under the infrastructure program and the 
commercial buyout programs are not in areas with significant low-and 
moderate- income populations, these programs will not help the county 
meet its overall benefit requirement. The county anticipates an overall 
low- and moderate-income benefit of 27.82 percent for its first CDBG-DR 
allocation.
    In regards to the county's second award of CDBG-DR funds, the 
primary activity to be funded is infrastructure ($8,786,700). The 
remaining funds, $976,300, are for administration and planning. As the 
census tracts and block groups most impacted by the 2011 disasters and 
in need of assistance are not predominately low- and moderate-income, 
and as infrastructure activities generally only meet the low- and 
moderate-income national objective on an area basis, the county has 
requested a reduction of the overall benefit requirement for this grant 
as well. (The county is prioritizing infrastructure activities with 
this grant due to the significant unmet needs demonstrated. Further, 
market studies indicate little demand in the county for new housing 
stock and the county's business assistance program received no 
applications). Based on infrastructure applications received to date, 
the county anticipates that three projects, totaling $3,268,000, will 
benefit low- and moderate-income households on an area basis. Thus, the 
overall low- and moderate-income benefit for the second grant award is 
projected to be 37.19 percent.
    To enable the county to undertake the activities it has deemed most 
critical for its recovery, and to ensure that low- and moderate-income 
households are adequately served and/or assisted, HUD is granting a 
limited waiver and alternative requirement to reduce the overall 
benefit from 50 percent to not less than 27 percent for the county's 
first allocation of CDBG-DR funds, and to not less than 37 percent for 
the county's second allocation of CDBG-DR funds. Based on the county's 
justification, the Secretary has found a compelling need for this 
reduction due to the unique circumstances related to Luzerne County's 
request. In particular, HUD notes that the county prioritized the needs 
of low- and moderate-income populations with its first allocation; the 
county has identified getting people out of harm's way as a top 
priority and this waiver will allow low- and moderate-income families 
to take advantage of Luzerne's program for this purpose; and finally, 
the waiver will enable the county to undertake critical infrastructure 
activities necessary to its recovery. This is a limited waiver 
modifying 42 U.S.C. 5301(c), 42 U.S.C. 5304(b)(3)(A), 24 CFR 570.484, 
and 570.200(a)(3) only to the extent necessary to permit the county to 
use funds appropriated by Public Law 112-55 for its residential buyout 
program, to use funds appropriated by Public Law 113-2 for its 
infrastructure program, as described by the county's Action Plans.

III. Catalog of Federal Domestic Assistance

    The Catalog of Federal Domestic Assistance number for the disaster 
recovery grants under this Notice is as follows: 14.269.

IV. 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(2)(C)). The FONSI is 
available for public inspection between 8 a.m. and 5 p.m. weekdays in 
the Regulations Division, Office of General Counsel, Department of 
Housing and Urban Development, 451 7th Street SW., Room 10276, 
Washington, DC 20410-0500. Due to security measures at the HUD 
Headquarters building, an advance appointment to review the docket file 
must be scheduled by calling the Regulations Division at 202-708-3055 
(this is not a toll-free number). Hearing or speech-impaired 
individuals may access this number through TTY by calling the toll-free 
Federal Relay Service at 800-877-8339.


[[Page 40137]]


    Dated: July 7, 2014.
Clifford Taffet,
General Deputy Assistant Secretary for Community Planning and 
Development.
[FR Doc. 2014-16316 Filed 7-10-14; 8:45 am]
BILLING CODE 4210-67-P
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