Additional Waivers and Alternative Requirements for Grantees in Receipt of Community Development Block Grant Disaster Recovery Funds Under the Disaster Relief Appropriations Act, 2013, 60490-60492 [2014-23967]
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60490
Federal Register / Vol. 79, No. 194 / Tuesday, October 7, 2014 / Notices
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[FR Doc. 2014–23872 Filed 10–6–14; 8:45 am]
BILLING CODE 9111–97–P
DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT
[Docket No. FR–5696–N–12]
Additional Waivers and Alternative
Requirements for Grantees in Receipt
of Community Development Block
Grant Disaster Recovery Funds Under
the Disaster Relief Appropriations Act,
2013
Office of the Assistant
Secretary for Community Planning and
Development, HUD.
ACTION: Notice.
AGENCY:
This Notice provides an
additional waiver and alternative
requirements for Minot, North Dakota, a
Community Development Block Grant
(CDBG) disaster recovery grantee in
receipt of funds under Section 239 of
the Department of Housing and Urban
Development Appropriations Act, 2012
(Pub. L. 112–55) and the Disaster Relief
Appropriations Act, 2013 (Pub. L. 113–
2). Minot, ND initially received disaster
assistance under Public Law 112–55 and
was provided with additional assistance
through Public Law 113–2 (together, the
supplemental Acts). The waiver in this
Notice specific to Minot, ND applies to
both its 112–55 funds and 113–2 funds
as described herein. To date, the
Department has allocated nearly $15.5
billion under the supplemental Acts to
assist recovery in the most impacted
and distressed areas identified in major
disaster declarations in calendar years
2011, 2012 and 2013.
DATES: Effective Date: October 14, 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.
asabaliauskas on DSK5VPTVN1PROD with NOTICES
SUMMARY:
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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
Section 239 of the Department of
Housing and Urban Development
Appropriations Act, 2012 (Pub. L. 112–
55, approved November 18, 2011) makes
available up to $400 million, to remain
available until expended, in 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) in 2011.
Additionally, the Disaster Relief
Appropriations Act, 2013 (Public Law
113–2, approved January 29, 2013)
made available $16 billion (reduced to
$15.18 billion after sequestration) 1 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
Stafford Act, due to Hurricane Sandy
and other eligible events in calendar
years 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), June 3, 2014 (79 FR 31964), and
July 11, 2014 (79 FR 40133). For Minot,
North Dakota, allocations and
requirements under Public Law 112–55
1 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 Public Law
113–2 to $15.18 billion.
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can be found in the Notice published
April 16, 2012 (77 FR 22583). These are
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
As the supplemental Acts require
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 supplemental Acts.
II. Applicable Rules, Statutes, Waivers,
and Alternative Requirements
The supplemental 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 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 modifies requirements of
the Prior Notices. The waivers and
alternative requirements in this Notice
apply to Minot, North Dakota, as
identified herein. For the waiver and
alternative requirements described in
this Notice, the Secretary has
determined that good cause exists and
the action is not inconsistent with the
overall purpose of Title I 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 supplemental Acts,
waivers must be published in the
Federal Register no later than five days
before the effective date of such waiver.
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 those
governing the funds appropriated under
2 Links to the Prior Notices, the text of the
supplemental Acts, 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/.
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asabaliauskas on DSK5VPTVN1PROD with NOTICES
Federal Register / Vol. 79, No. 194 / Tuesday, October 7, 2014 / Notices
Public Law 112–55 and Public Law
113–2 and already published in the
Federal Register.
2. Waiver of Section 414 of the
Stafford Act and Alternative
Requirements. (City of Minot, North
Dakota, only).
Section 414 of the Stafford Act
provides that that no person otherwise
eligible for a replacement housing
payment under the Uniform Relocation
Assistance and Real Property
Acquisition Policies Act of 1970, as
amended (URA), may be denied
eligibility for that payment as a result of
being unable because of a major disaster
as determined by the President to meet
the occupancy requirements set by the
URA. Accordingly, residential
occupants displaced from their homes
as a result of the 2011 floods in Minot,
North Dakota, would be eligible for
relocation assistance upon
implementation of a rehabilitation
program affecting homes that had been
previously vacated.
The city of Minot has requested a
waiver of section 414 of the Stafford
Act, as amended, for its Small Rental
Rehabilitation and Reconstruction
Program (SRRRP). This Notice grants the
city’s request and provides alternative
requirements consistent with the
purpose of the supplemental Acts.
Section 414 of the Stafford Act
(including its implementing regulation
at 49 CFR 24.403(d), which is found
among the regulations implementing the
URA), is waived to the extent that it
would apply to the CDBG disaster
recovery-funded program SRRRP
initiated by the city of Minot under
approved Action Plans for Disaster
Recovery for its grants under Public Law
113–2 and Public Law 112–55 provided
that the program or affiliated projects
were not planned, approved, or
otherwise underway prior to the
disaster.
The Department has surveyed other
federal agencies’ administration of
Section 414 and found varying strategies
for long-term, post-disaster projects
involving the acquisition, rehabilitation,
or demolition of disaster-damaged
housing. Under the supplemental Acts,
HUD has the authority to waive Section
414 and impose alternative
requirements. The Department has, in
specific circumstances, previously
granted a waiver and provided
alternative requirements of Section 414
to CDBG–DR grantees, including the
Gulf States impacted by disasters in
2005 and 2008 (see 72 FR 48804).
The severe flood of 2011 substantially
damaged Minot’s affordable rental
housing stock resulting in increased
housing burden among the city’s
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17:15 Oct 06, 2014
Jkt 235001
renters. According to the city,
approximately one quarter of the city’s
rental units were damaged by the flood.
Nearly half of Minot’s rental households
are now cost- burdened for housing, a
portion that has increased in part
because of disaster-related damage to
available affordable housing. The city
hopes to restore rental housing units by
using CDBG–DR funds to rehabilitate
those units that were damaged by the
flood. The SRRRP will commence more
than three years after the flood, and
many of the residential occupants
occupying the housing units at the time
of the disaster have since obtained
permanent housing elsewhere. The
Department has determined that
without a statutory waiver and the
establishment of alternative
requirements for the application of
Section 414, the city’s SRRRP is
unlikely to achieve its goals of
contributing to the restoration of the
city’s affordable housing stock because
former residential occupants that left
the properties long ago could be eligible
to receive replacement housing
payments under the URA because of
Section 414, reducing amounts that
would otherwise be directed toward
SRRRP activities.
Due to the specific circumstances of
Minot’s recovery process, the
Department is providing a statutory
waiver and establishing alternative
requirements in the application of
Section 414 of the Stafford Act. For the
program covered by this waiver
(SRRRP), the city must adhere to the
requirements specified in this Notice. In
addition to the following requirements,
the Department strongly encourages the
city to offer low and moderate income
former residential occupants preferred
status in the residential application
process once rehabilitation is complete.
1. For residential occupants that have
vacated housing units damaged by the
flood, prior to provision of funds for
SRRRP activities, the city of Minot
must:
a. Establish a publicly available rehousing plan for the program and
ensure that it is provided in accessible
formats, as necessary, to ensure effective
communication with persons with
disabilities and those who are limited
English proficient. This plan must
include, at minimum, the following:
i. A regularly updated registry of the
units and/or complexes to be
rehabilitated with CDBG–DR funds and
those persons eligible for residence so
that displaced households and other
interested residential occupants may
apply to live in these units;
ii. Contact information and a
description of any applicable
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60491
application process, including any
deadlines;
iii. A description of other services to
be made available, including, at
minimum, outreach efforts to eligible
persons, housing counseling providing
information about available housing
resources, and placement services for
former and prospective residential
occupants;
iv. Operating procedures requiring the
city to collect from property owners the
contact information of former
residential occupants to inform them of
the availability of units rehabilitated
under the program.
b. In order to contact residential
occupants that were displaced from
their homes due to the flood, the city
must require owners to meet with the
city to fill out the site occupant record
which will provide information on the
residential occupants that occupied the
structure at the time of the flood. This
information is to be in the agreement to
provide assistance to property owners
participating in the SRRRP. The city
must ask the owner for the residential
occupants’ latest contact information,
and the city must make a good faith
effort to contact the residential
occupants. The city should also make
utilize newspaper and other public
media advertisements to locate
displaced households.
c. The city must, where necessary,
refer former residential occupants to
housing counseling programs.
2. In its request, the city has
committed to ensure that all units
restored with CDBG–DR funds meet the
affordability requirements defined by
HUD’s HOME Program Rents for a
period of five years, as described in the
SRRRP’s published program
information.
Justification for Waiver
The Department’s basis for this waiver
and alternative requirements are unique
to the city of Minot as documented in
its request to the Department. The
Department has considered the city’s
request and determined that good cause
exists and that the waiver and
alternative requirements are not
inconsistent with the overall purposes
of Title I of the HCD Act.
1. The 2011 flood caused
unprecedented destruction in the city of
Minot. Twenty to 30 percent of the
rental housing stock was damaged,
which was concentrated in an area of
the city that had the highest percentage
of affordable housing. The destruction
has contributed to an increase in
housing cost burden for nearly half of
all rental households. Based on
information from the city’s 2012
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Federal Register / Vol. 79, No. 194 / Tuesday, October 7, 2014 / Notices
asabaliauskas on DSK5VPTVN1PROD with NOTICES
Assessment, there are 837 fewer
affordable homes in Minot today then
there were in 2010, a shortage
contributing to the widespread lack of
affordable housing in the city.
2. The SRRRP will commence three
years after the units in question were
rendered uninhabitable. According to
the city, 2,328 households were
displaced as a result of the flood, 2,062
were provided with temporary housing,
but only 20 households continue to
reside in temporary housing units
which are assisted through other
programs with other forms of assistance.
3. In the absence of this waiver, any
assistance provided to former
residential occupants under the URA
might duplicate insurance proceeds and
federal, state, or local housing assistance
that has already been disbursed.
4. The waiver will simplify the
administration of a disaster recovery
program (SRRRP) initiated years
following the disaster and expedite
recovery in a location where
rehabilitation activities are restricted to
a very short building season due to the
region’s climate. This waiver does not
apply to persons in physical occupancy
of real property who are displaced by
the SRRRP or other HUD-funded
disaster recovery programs or projects.
Such persons will continue to be
eligible for relocation assistance and
payments under the URA. Additionally,
persons displaced by the effects of the
disaster may continue to apply for
assistance under the city’s approved
disaster recovery programs. This waiver
does not address programs or projects
receiving other HUD funding or funding
from other federal sources. The city or
the State of North Dakota may already
be performing some elements of a rehousing plan, such as providing a
public rental registry or undertaking
outreach and placement services to
those former residents still receiving
FEMA housing assistance. The city will
provide a description in the re-housing
plan of how those existing efforts will
be available for the SRRRP to satisfy the
requirements of this Notice.
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; 14.218; 14.228.
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
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17:15 Oct 06, 2014
Jkt 235001
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.
Dated: October 1, 2014.
Clifford Taffet,
General Deputy Assistant Secretary for
Community Planning and Development.
[FR Doc. 2014–23967 Filed 10–6–14; 8:45 am]
BILLING CODE 4210–67–P
DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT
[Docket No. FR–5811–N–01]
Section 184 Indian Housing Loan
Guarantee Program New Annual
Premium
Office of the Assistant
Secretary for Public and Indian
Housing, HUD.
ACTION: Notice.
AGENCY:
The Section 184 Indian
Housing Loan Guarantee program
(Section 184 program) provides access
to sources of private financing for
Indian families, Indian housing
authorities, and Indian tribes that
otherwise could not acquire housing
financing because of the unique legal
status of Indian land, by guaranteeing
loans to eligible persons and entities.
Over the last 5 years, the Section 184
program has doubled the number of
loans and eligible families being
assisted by the program. For HUD to
continue to meet the increasing demand
for participation in this program, HUD
is exercising its new statutory authority
to implement an annual premium to the
borrower in the amount of 0.15 percent
of the remaining loan balance until the
unpaid principal balance, excluding the
upfront loan guarantee fee, reaches 78
percent of the lower of the initial sales
price or appraised value based on the
initial amortization schedule. Effective
November 15, 2014 the new annual
premium of 0.15 percent of the
remaining loan balance will apply to all
new loan guarantees, including
SUMMARY:
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refinances. This notice also provides
guidance on the cancellation of the
annual premium when the loan reaches
the 78 percent loan-to-value ratio.
DATES: Effective Date: November 15,
2014.
FOR FURTHER INFORMATION CONTACT:
Rodger J. Boyd, Deputy Assistant
Secretary for Native American
Programs, Office of Public and Indian
Housing, Department of Housing and
Urban Development, 451 7th Street SW.,
Room 4126, Washington, DC 20410;
telephone number 202–401–7914 (this
is not a toll-free number). Persons with
hearing or speech disabilities may
access this number through TTY by
calling the toll-free Federal Relay
Service at 800–877–8339.
SUPPLEMENTARY INFORMATION:
I. Background
Section 184 of the Housing and
Community Development Act of 1992
(Public Law 102–550, approved October
28, 1992), as amended by the Native
American Housing Assistance and SelfDetermination Act of 1996 (Pub. L. 104–
330, approved October 26, 1996),
established the Section 184 program to
provide access to sources of private
financing to Indian families, Indian
housing authorities, and Indian tribes
that otherwise could not acquire
housing financing because of the unique
legal status of Indian land. Because title
to trust or restricted land is inalienable,
title cannot be conveyed to eligible
Section 184 program borrowers. As a
consequence, financial institutions
cannot utilize the land as security in
mortgage lending transactions. The
Section 184 program addresses obstacles
to mortgage financing on trust land and
in other Indian and Alaska Native areas
by giving HUD the authority to
guarantee loans to eligible persons and
entities to construct, acquire, refinance,
or rehabilitate one-to-four family
dwellings in these areas.
The Section 184 Loan Guarantee Fund
(the Fund) receives annual
appropriations to cover the cost of the
program. Guarantee fees and any other
amounts, claims, notes, mortgages,
contracts, and property acquired by the
Secretary under the Section 184
program reduce the amount of
appropriations needed to support the
program, and together with
appropriations are used to fulfill
obligations of the Secretary with respect
to the loans guaranteed under this
section.
In recent years, rapidly growing
demand has increased the need for
subsidy appropriations to support new
loan guarantees. HUD issued loan
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Agencies
[Federal Register Volume 79, Number 194 (Tuesday, October 7, 2014)]
[Notices]
[Pages 60490-60492]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-23967]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-5696-N-12]
Additional Waivers and Alternative Requirements for Grantees in
Receipt of Community Development Block Grant Disaster Recovery Funds
Under the Disaster Relief Appropriations Act, 2013
AGENCY: Office of the Assistant Secretary for Community Planning and
Development, HUD.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: This Notice provides an additional waiver and alternative
requirements for Minot, North Dakota, a Community Development Block
Grant (CDBG) disaster recovery grantee in receipt of funds under
Section 239 of the Department of Housing and Urban Development
Appropriations Act, 2012 (Pub. L. 112-55) and the Disaster Relief
Appropriations Act, 2013 (Pub. L. 113-2). Minot, ND initially received
disaster assistance under Public Law 112-55 and was provided with
additional assistance through Public Law 113-2 (together, the
supplemental Acts). The waiver in this Notice specific to Minot, ND
applies to both its 112-55 funds and 113-2 funds as described herein.
To date, the Department has allocated nearly $15.5 billion under the
supplemental Acts to assist recovery in the most impacted and
distressed areas identified in major disaster declarations in calendar
years 2011, 2012 and 2013.
DATES: Effective Date: October 14, 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
Section 239 of the Department of Housing and Urban Development
Appropriations Act, 2012 (Pub. L. 112-55, approved November 18, 2011)
makes available up to $400 million, to remain available until expended,
in 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) in 2011.
Additionally, the Disaster Relief Appropriations Act, 2013 (Public
Law 113-2, approved January 29, 2013) made available $16 billion
(reduced to $15.18 billion after sequestration) \1\ 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 Stafford Act, due to Hurricane Sandy and other eligible events in
calendar years 2011, 2012, and 2013.
---------------------------------------------------------------------------
\1\ 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 Public Law 113-2 to $15.18 billion.
---------------------------------------------------------------------------
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), June 3, 2014 (79 FR 31964), and July 11,
2014 (79 FR 40133). For Minot, North Dakota, allocations and
requirements under Public Law 112-55 can be found in the Notice
published April 16, 2012 (77 FR 22583). These are 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\
---------------------------------------------------------------------------
\2\ Links to the Prior Notices, the text of the supplemental
Acts, 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/.
---------------------------------------------------------------------------
As the supplemental Acts require 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 supplemental Acts.
II. Applicable Rules, Statutes, Waivers, and Alternative Requirements
The supplemental 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 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 modifies requirements of the Prior Notices. The waivers
and alternative requirements in this Notice apply to Minot, North
Dakota, as identified herein. For the waiver and alternative
requirements described in this Notice, the Secretary has determined
that good cause exists and the action is not inconsistent with the
overall purpose of Title I 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 supplemental Acts, waivers must be
published in the Federal Register no later than five days before the
effective date of such waiver.
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 those governing the funds appropriated under
[[Page 60491]]
Public Law 112-55 and Public Law 113-2 and already published in the
Federal Register.
2. Waiver of Section 414 of the Stafford Act and Alternative
Requirements. (City of Minot, North Dakota, only).
Section 414 of the Stafford Act provides that that no person
otherwise eligible for a replacement housing payment under the Uniform
Relocation Assistance and Real Property Acquisition Policies Act of
1970, as amended (URA), may be denied eligibility for that payment as a
result of being unable because of a major disaster as determined by the
President to meet the occupancy requirements set by the URA.
Accordingly, residential occupants displaced from their homes as a
result of the 2011 floods in Minot, North Dakota, would be eligible for
relocation assistance upon implementation of a rehabilitation program
affecting homes that had been previously vacated.
The city of Minot has requested a waiver of section 414 of the
Stafford Act, as amended, for its Small Rental Rehabilitation and
Reconstruction Program (SRRRP). This Notice grants the city's request
and provides alternative requirements consistent with the purpose of
the supplemental Acts.
Section 414 of the Stafford Act (including its implementing
regulation at 49 CFR 24.403(d), which is found among the regulations
implementing the URA), is waived to the extent that it would apply to
the CDBG disaster recovery-funded program SRRRP initiated by the city
of Minot under approved Action Plans for Disaster Recovery for its
grants under Public Law 113-2 and Public Law 112-55 provided that the
program or affiliated projects were not planned, approved, or otherwise
underway prior to the disaster.
The Department has surveyed other federal agencies' administration
of Section 414 and found varying strategies for long-term, post-
disaster projects involving the acquisition, rehabilitation, or
demolition of disaster-damaged housing. Under the supplemental Acts,
HUD has the authority to waive Section 414 and impose alternative
requirements. The Department has, in specific circumstances, previously
granted a waiver and provided alternative requirements of Section 414
to CDBG-DR grantees, including the Gulf States impacted by disasters in
2005 and 2008 (see 72 FR 48804).
The severe flood of 2011 substantially damaged Minot's affordable
rental housing stock resulting in increased housing burden among the
city's renters. According to the city, approximately one quarter of the
city's rental units were damaged by the flood. Nearly half of Minot's
rental households are now cost- burdened for housing, a portion that
has increased in part because of disaster-related damage to available
affordable housing. The city hopes to restore rental housing units by
using CDBG-DR funds to rehabilitate those units that were damaged by
the flood. The SRRRP will commence more than three years after the
flood, and many of the residential occupants occupying the housing
units at the time of the disaster have since obtained permanent housing
elsewhere. The Department has determined that without a statutory
waiver and the establishment of alternative requirements for the
application of Section 414, the city's SRRRP is unlikely to achieve its
goals of contributing to the restoration of the city's affordable
housing stock because former residential occupants that left the
properties long ago could be eligible to receive replacement housing
payments under the URA because of Section 414, reducing amounts that
would otherwise be directed toward SRRRP activities.
Due to the specific circumstances of Minot's recovery process, the
Department is providing a statutory waiver and establishing alternative
requirements in the application of Section 414 of the Stafford Act. For
the program covered by this waiver (SRRRP), the city must adhere to the
requirements specified in this Notice. In addition to the following
requirements, the Department strongly encourages the city to offer low
and moderate income former residential occupants preferred status in
the residential application process once rehabilitation is complete.
1. For residential occupants that have vacated housing units
damaged by the flood, prior to provision of funds for SRRRP activities,
the city of Minot must:
a. Establish a publicly available re-housing plan for the program
and ensure that it is provided in accessible formats, as necessary, to
ensure effective communication with persons with disabilities and those
who are limited English proficient. This plan must include, at minimum,
the following:
i. A regularly updated registry of the units and/or complexes to be
rehabilitated with CDBG-DR funds and those persons eligible for
residence so that displaced households and other interested residential
occupants may apply to live in these units;
ii. Contact information and a description of any applicable
application process, including any deadlines;
iii. A description of other services to be made available,
including, at minimum, outreach efforts to eligible persons, housing
counseling providing information about available housing resources, and
placement services for former and prospective residential occupants;
iv. Operating procedures requiring the city to collect from
property owners the contact information of former residential occupants
to inform them of the availability of units rehabilitated under the
program.
b. In order to contact residential occupants that were displaced
from their homes due to the flood, the city must require owners to meet
with the city to fill out the site occupant record which will provide
information on the residential occupants that occupied the structure at
the time of the flood. This information is to be in the agreement to
provide assistance to property owners participating in the SRRRP. The
city must ask the owner for the residential occupants' latest contact
information, and the city must make a good faith effort to contact the
residential occupants. The city should also make utilize newspaper and
other public media advertisements to locate displaced households.
c. The city must, where necessary, refer former residential
occupants to housing counseling programs.
2. In its request, the city has committed to ensure that all units
restored with CDBG-DR funds meet the affordability requirements defined
by HUD's HOME Program Rents for a period of five years, as described in
the SRRRP's published program information.
Justification for Waiver
The Department's basis for this waiver and alternative requirements
are unique to the city of Minot as documented in its request to the
Department. The Department has considered the city's request and
determined that good cause exists and that the waiver and alternative
requirements are not inconsistent with the overall purposes of Title I
of the HCD Act.
1. The 2011 flood caused unprecedented destruction in the city of
Minot. Twenty to 30 percent of the rental housing stock was damaged,
which was concentrated in an area of the city that had the highest
percentage of affordable housing. The destruction has contributed to an
increase in housing cost burden for nearly half of all rental
households. Based on information from the city's 2012
[[Page 60492]]
Assessment, there are 837 fewer affordable homes in Minot today then
there were in 2010, a shortage contributing to the widespread lack of
affordable housing in the city.
2. The SRRRP will commence three years after the units in question
were rendered uninhabitable. According to the city, 2,328 households
were displaced as a result of the flood, 2,062 were provided with
temporary housing, but only 20 households continue to reside in
temporary housing units which are assisted through other programs with
other forms of assistance.
3. In the absence of this waiver, any assistance provided to former
residential occupants under the URA might duplicate insurance proceeds
and federal, state, or local housing assistance that has already been
disbursed.
4. The waiver will simplify the administration of a disaster
recovery program (SRRRP) initiated years following the disaster and
expedite recovery in a location where rehabilitation activities are
restricted to a very short building season due to the region's climate.
This waiver does not apply to persons in physical occupancy of real
property who are displaced by the SRRRP or other HUD-funded disaster
recovery programs or projects. Such persons will continue to be
eligible for relocation assistance and payments under the URA.
Additionally, persons displaced by the effects of the disaster may
continue to apply for assistance under the city's approved disaster
recovery programs. This waiver does not address programs or projects
receiving other HUD funding or funding from other federal sources. The
city or the State of North Dakota may already be performing some
elements of a re-housing plan, such as providing a public rental
registry or undertaking outreach and placement services to those former
residents still receiving FEMA housing assistance. The city will
provide a description in the re-housing plan of how those existing
efforts will be available for the SRRRP to satisfy the requirements of
this Notice.
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; 14.218;
14.228.
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.
Dated: October 1, 2014.
Clifford Taffet,
General Deputy Assistant Secretary for Community Planning and
Development.
[FR Doc. 2014-23967 Filed 10-6-14; 8:45 am]
BILLING CODE 4210-67-P