Third Allocation, Waivers, and Alternative Requirements for Grantees Receiving Community Development Block Grant Disaster Recovery (CDBG-DR) Funds in Response to Disasters Occurring in 2013, 1039-1043 [2015-00109]
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Federal Register / Vol. 80, No. 5 / Thursday, January 8, 2015 / Notices
Information collection
Number of
respondents
Total .............................
Frequency of
response
1,000
1
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: December 23, 2014.
Michael Dennis,
Director, Office of Housing Voucher
Programs.
[FR Doc. 2015–00107 Filed 1–7–15; 8:45 am]
BILLING CODE 4210–67–P
DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT
[Docket No. FR–5696–N–13]
Third Allocation, Waivers, and
Alternative Requirements for Grantees
Receiving Community Development
Block Grant Disaster Recovery
(CDBG–DR) Funds in Response to
Disasters Occurring in 2013
Office of the Assistant
Secretary for Community Planning and
Development, HUD.
ACTION: Notice.
AGENCY:
This Notice advises the public
of a third allocation of Community
Development Block Grant disaster
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SUMMARY:
Responses
per annum
Burden hour
per response
1
Annual burden
hours
5.5
recovery (CDBG–DR) funds for the
purpose of assisting recovery in the
most impacted and distressed areas
identified in major disaster declarations
in calendar year 2013. This is the
seventh allocation of CDBG–DR funds
under the Disaster Relief Appropriations
Act, 2013 (Pub. L. 113–2). In addition to
an initial allocation for disasters
occurring in 2013, prior allocations
addressed the areas most impacted by
Hurricane Sandy, as well as the areas
most impacted by disasters occurring in
2011 or 2012. In prior Federal Register
notices, the Department described the
allocations, relevant statutory
provisions, the grant award process,
criteria for Action Plan approval,
eligible disaster recovery activities, and
applicable waivers and alternative
requirements. This Notice builds upon
the requirements of those notices, and
specifies that funds allocated through
this notice are subject to all
requirements in the notice published on
June 3, 2014 (79 FR 31964).
DATES: Effective Date: January 13, 2015.
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 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. Allocation
II. Use of Funds
III. Grant Amendment Process
IV. Catalog of Federal Domestic Assistance
V. Finding of No Significant Impact
Appendix A: Allocation Methodology
I. Allocation
The Disaster Relief Appropriations
Act, 2013 (Pub. L. 113–2, approved
January 29, 2013) (Appropriations Act)
made available $16 billion in
5,500
Hourly cost
per response
$110.00
Annual cost
$110,000
Community Development Block Grant
disaster recovery (CDBG–DR) 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.
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, a total of $15.1 billion has been
allocated or set aside: $13 billion in
response to Hurricane Sandy, $514
million in response to disasters
occurring in 2011 or 2012, $565 million
in response to 2013 disasters, and $1
billion set aside for the National
Disaster Resilience Competition. This
Notice advises the public of a third
allocation for 2013 disasters—$89.8
million is provided for the purpose of
assisting recovery in the most impacted
and distressed areas in Colorado, the
city of Chicago, Illinois, Cook County,
Illinois, and Du Page County, Illinois.
As the Appropriations Act requires
funds to be awarded directly to a state
or unit of general local government
(hereinafter, local government), the term
‘‘grantee’’ refers to any jurisdiction
receiving a direct award from HUD
under this Notice.
To comply with statutory direction
that funds be used for disaster-related
expenses in the most impacted and
distressed areas, HUD computes
allocations based on the best available
data that cover all the eligible affected
areas. Based on further review of the
impacts from Presidentially-declared
disasters that occurred in 2013, and
estimates of remaining unmet need, this
Notice provides the following awards:
TABLE 1—ALLOCATIONS FOR DISASTERS OCCURRING IN 2013
Grantee
This allocation
State of Colorado .....................................................................
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$58,246,000
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Second allocation
First allocation
$199,300,000
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$62,800,000
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Total
$320,346,000
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Federal Register / Vol. 80, No. 5 / Thursday, January 8, 2015 / Notices
TABLE 1—ALLOCATIONS FOR DISASTERS OCCURRING IN 2013—Continued
Grantee
This allocation
State of Illinois .........................................................................
City of Chicago, IL ...................................................................
Cook County, IL .......................................................................
Du Page County, IL .................................................................
State of Oklahoma ...................................................................
City of Moore, OK ....................................................................
..............................
11,075,000
14,816,000
5,626,000
..............................
..............................
6,800,000
47,700,000
54,900,000
18,900,000
83,100,000
25,900,000
3,600,000
4,300,000
13,900,000
7,000,000
10,600,000
26,300,000
10,400,000
63,075,000
83,616,000
31,526,000
93,700,000
52,200,000
Total ..................................................................................
89,763,000
436,600,000
128,500,000
654,863,000
As outlined in Table 2, to ensure
funds provided under this Notice
address unmet needs within the ‘‘most
impacted and distressed’’ counties, each
local government receiving a direct
award under this Notice must expend
its entire CDBG–DR award within its
jurisdiction (e.g., Cook County must
expend all funds within Cook County,
excluding the city of Chicago; the city
of Chicago must expend all funds in the
city of Chicago, including the portions
of Cook and Du Page counties located
Second allocation
within the city’s jurisdiction). The State
of Colorado must expend at least 80
percent of its funds in the most
impacted counties of Boulder, Weld,
and Larimer but may expend 20 percent
(approximately $64 million from the
combined first, second, and third
allocations) in other State-identified
most impacted and distressed area
within counties having a declared major
disaster in 2011, 2012 or 2013. The
following link provides access to maps
showing declared disasters in each state,
First allocation
Total
by year: https://www.fema.gov/disasters/
grid/state-tribal-government. The
opportunity for certain grantees to
expend a portion of their allocations
outside the most impacted and
distressed counties identified by HUD
enables those grantees to respond to
highly localized distress identified via
their own data. A detailed explanation
of HUD’s allocation methodology is
provided at Appendix A.
TABLE 2—MOST IMPACTED AND DISTRESSED COUNTIES WITHIN WHICH FUNDS MAY BE EXPENDED
Grantee
Most impacted and distressed
counties
State of Colorado .......................................................................
City of Chicago ...........................................................................
Cook County ...............................................................................
Du Page County .........................................................................
Boulder, Weld and Larimer ........................................................
City of Chicago; portions of the city in Cook and Du Page .......
Cook ...........................................................................................
Du Page .....................................................................................
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II. Use of Funds
This Notice builds upon the
requirements of the Federal Register
Notices published by the Department on
March 5, 2013 (78 FR 14329), April 19,
2013 (78 FR 23578), December 16, 2013
(76 FR 76154), June 3, 2014 (79 FR
31964), and July 11, 2014 (79 FR40133)
referred to collectively in this Notice as
the ‘‘Prior Notices’’. The Prior Notices
can be accessed through the HUD
Exchange Web site at https://
www.hudexchange.info/cdbg-dr/cdbgdr-laws-regulations-and-federal-registernotices/. In addition, the following links
provide direct access to the Prior
Notices: https://www.gpo.gov/fdsys/pkg/
FR-2013-03-05/pdf/2013-05170.pdf,
https://www.gpo.gov/fdsys/pkg/FR-201304-19/pdf/2013-09228.pdf, https://
www.gpo.gov/fdsys/pkg/FR-2013-12-16/
pdf/2013-29834.pdf, https://
www.gpo.gov/fdsys/pkg/FR-2014-06-03/
pdf/2014-12709.pdf, and https://
www.gpo.gov/fdsys/pkg/FR-2014-07-11/
pdf/2014-16316.pdf.
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The requirements of this Notice
parallel those established for other
grantees receiving funds under the
Appropriations Act in a Federal
Register Notice published by the
Department on November 18, 2013 (78
FR 69104) and located at: https://
www.gpo.gov/fdsys/pkg/FR-2013-11-18/
pdf/2013-27506.pdf. Additionally, the
funds allocated in this Notice are bound
by all of the same requirements as those
found in the Federal Register Notice
published by the Department on June 3,
2014 (79 FR 31964), including the two
year expenditure deadline located at:
https://www.gpo.gov/fdsys/pkg/FR-201406-03/pdf/2014-12709.pdf.
As a reminder, the Appropriations
Act requires funds to be used only for
specific disaster-recovery related
purposes. This allocation provides
additional funds to areas impacted by
disasters in 2013 for recovery, including
mitigation and resilience as part of the
recovery effort and directs grantees to
undertake comprehensive planning to
promote resilience as part of that effort.
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Minimum
percentage
that must be
expended in
most impacted
and distressed
counties
80
100
100
100
The law also requires that prior to the
obligation of CDBG–DR funds, a grantee
shall submit a plan detailing the
proposed use of funds, including
criteria for eligibility and how the use
of these funds will address disaster
relief, long-term recovery, restoration of
infrastructure and housing, and
economic revitalization in the most
impacted and distressed areas. To
access funds provided by the prior
allocations, HUD approved an Action
Plan and Action Plan amendments for
each of the grantees identified as
receiving funds under this Notice.
Grantees are now directed to submit a
substantial Action Plan Amendment in
order to access funds provided in this
Notice. For more guidance on
requirements for substantial Action Plan
Amendments, please see section III of
this Notice.
Note that, as provided by the HCD
Act, funds may be used as a matching
requirement, share, or contribution for
any other federal program when used to
carry out an eligible CDBG–DR activity.
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However, pursuant to the requirements
of the Appropriations Act, CDBG–DR
funds may not be used for expenses
reimbursable by, or for which funds are
made available by FEMA or the United
States Army Corps of Engineers
(USACE).
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IV. Grant Amendment Process
To access funds allocated by this
Notice grantees must submit a
substantial Action Plan Amendment to
their approved Action Plan. Any
substantial Action Plan Amendment
submitted after the effective date of this
Notice is subject to the following
requirements:
• Grantee consults with affected
citizens, stakeholders, local
governments and public housing
authorities to determine updates to its
needs assessment; in addition, grantee
prepares a comprehensive risk analysis
(see section V.3.d. of the June 3, 2014
Notice);
• Grantee amends its citizen
participation plan to reflect the
requirements of the June 3, 2014 Notice
(e.g., new requirement for a public
hearing);
• Grantee publishes a substantial
amendment to its previously approved
Action Plan for Disaster Recovery on the
grantee’s official Web site for no less
than 30 calendar days and holds at least
one public hearing to solicit public
comment;
• Grantee responds to public
comment and submits its substantial
Action Plan Amendment to HUD (with
any additional certifications required by
this Notice or Prior Notices) no later
than 120 days after the effective date of
this Notice;
• HUD reviews the substantial Action
Plan Amendment within 60 days from
date of receipt and approves the
Amendment according to criteria
identified in the Prior Notices;
• HUD sends an Action Plan
Amendment approval letter, revised
grant conditions (may not be applicable
to all grantees), and an amended
unsigned grant agreement to the grantee.
If the substantial Amendment is not
approved, a letter will be sent
identifying its deficiencies; the grantee
must then re-submit the Amendment
within 45 days of the notification letter;
• Grantee ensures that the HUDapproved substantial Action Plan
Amendment (and updated Action Plan)
is posted on its official Web site;
• Grantee signs and returns the grant
agreement;
• HUD signs the grant agreement and
revises the grantee’s line of credit
amount;
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• If it has not already done so, grantee
enters the activities from its published
Action Plan Amendment into the
Disaster Recovery Grant Reporting
(DRGR) system and submits it to HUD
within the system;
• The grantee may draw down funds
from the line of credit after the
Responsible Entity completes applicable
environmental review(s) pursuant to 24
CFR part 58 (or paragraph A.20 under
section VI of the March 5, 2013 Notice)
and, as applicable, receives from HUD
or the state an approved Request for
Release of Funds and certification;
• Grantee amends its published
Action Plan to include its projection of
expenditures and outcomes within 90
days of the Action Plan Amendment
approval as provided for in paragraph
4.f. of section V of the June 3, 2014
Notice; and
• If not already completed, grantee
updates its full consolidated plan to
reflect disaster-related needs no later
than its Fiscal Year 2015 consolidated
plan update.
VIII. 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.
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: December 31, 2014.
Clifford Taffett,
General Deputy Assistant Secretary for
Community Planning and Development.
CDBG–DR Allocation Methodology—
2013 Disasters Third Tranche
HUD calculates the cost to rebuild the
most impacted and distressed homes,
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businesses, and infrastructure back to
pre-disaster conditions. From this base
calculation, HUD calculates both the
amount not covered by insurance and
other federal sources to rebuild back to
pre-disaster conditions as well as a
‘‘resiliency’’ amount which is calculated
at 30 percent of the total basic cost to
rebuild back the most distressed flooded
homes, businesses, and infrastructure to
pre-disaster conditions; 10 percent for
other disaster types (ie. tornadoes,
severe storms, fires). The estimated cost
to repair unmet needs are combined
with the resiliency needs to calculate
the total severe unmet needs estimated
to achieve long-term recovery. This
calculation of housing, business, and
infrastructure needs is used to
determine the relative share of funding
among eligible disasters.
Statutory Language for the Allocation
Public Law 113–2 (January 29, 2013)
provides the following language on how
the Secretary shall allocate the funds:
‘‘For an additional amount for
‘‘Community Development Fund’’,
$16,000,000,000,1 to remain available
until September 30, 2017, for necessary
expenses related to disaster relief, longterm 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 (42
U.S.C. 5121 et seq.) due to Hurricane
Sandy and other eligible events in
calendar years 2011, 2012, and 2013, for
activities authorized under title I of the
Housing and Community Development
Act of 1974 (42 U.S.C. 5301 et seq.):
Provided, That funds shall be awarded
directly to the State or unit of general
local government as a grantee at the
discretion of the Secretary of Housing
and Urban Development: Provided
further, That the Secretary shall allocate
to grantees not less than 33 percent of
the funds provided under this heading
within 60 days after the enactment of
this division based on the best available
data:’’
Available Data
The ‘‘best available’’ data HUD staff
have identified as being available to
calculate unmet needs at this time for
all disasters in 2011, 2012, and 2013
meeting HUD’s Most Impacted and
Distressed threshold comes from the
following data sources:
• FEMA Individual Assistance
program data on housing unit damage;
1 $15.2
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billion after sequestration.
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• SBA for management of its disaster
assistance loan program for housing
repair and replacement;
• SBA for management of its disaster
assistance loan program for business
real estate repair and replacement as
well as content loss; and
• FEMA Public Assistance,
Department of Transportation Federal
Transit Administration and Federal
Highway Administration, Corps of
Engineers, and US Department of
Agriculture Emergency Watershed
Restoration data on infrastructure.
These funds are only allocated toward
disasters in 2011, 2012, and 2013
determined by HUD to be most
impacted and distressed disasters.2
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Calculating Unmet Housing Needs
The core data on housing damage for
both the unmet housing needs
calculation and the concentrated
damage are based on home inspection
data for FEMA’s Individual Assistance
program (extracted January 2014). For
unmet housing needs, the FEMA data
are supplemented by Small Business
Administration data from its Disaster
Loan Program (extracted January 2014).
HUD calculates ‘‘unmet housing needs’’
as the number of housing units with
unmet needs times the estimated cost to
repair those units less repair funds
already provided by FEMA, where:
• Each of the FEMA inspected owner
units are categorized by HUD into one
of five categories:
Æ Minor-Low: Less than $3,000 of
FEMA inspected real property damage.
Æ Minor-High: $3,000 to $7,999 of
FEMA inspected real property damage.
Æ Major-Low: $8,000 to $14,999 of
FEMA inspected real property damage
(if basement flooding only, damage
categorization is capped at major-low).
Æ Major-High: $15,000 to $28,800 of
FEMA inspected real property damage
and/or 4 to 6 feet of flooding on the first
floor.
Æ Severe: Greater than $28,800 of
FEMA inspected real property damage
or determined destroyed and/or 6 or
more feet of flooding on the first floor.
To meet the statutory requirement of
‘‘most impacted and distressed’’ in this
legislative language, homes are
determined to have a high level of
damage if they have damage of ‘‘majorlow’’ or higher. That is, they have a real
property FEMA inspected damage of
$8,000 or flooding over 4 foot.
2 A Most Impacted disaster for non-Sandy
disasters is a disaster where the severe housing and
business unmet needs (excluding resiliency) exceed
$25 million from counties with greater than $10
million in unmet housing and business severe
needs (excluding resiliency and area construction
cost adjustment).
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Furthermore, a homeowner is
determined to have unmet needs if they
have received a FEMA grant to make
home repairs. For homeowners with a
FEMA grant and insurance for the
covered event, HUD assumes that the
unmet need ‘‘gap’’ is 20 percent of the
difference between total damage and the
FEMA grant.
• FEMA does not inspect rental units
for real property damage so personal
property damage is used as a proxy for
unit damage. Each of the FEMA
inspected renter units are categorized by
HUD into one of five categories:
Æ Minor-Low: Less than $1,000 of
FEMA inspected personal property
damage.
Æ Minor-High: $1,000 to $1,999 of
FEMA inspected personal property
damage.
Æ Major-Low: $2,000 to $3,499 of
FEMA inspected personal property
damage (if basement flooding only,
damage categorization is capped at
major-low).
Æ Major-High: $3,500 to $7,499 of
FEMA inspected personal property
damage or 4 to 6 feet of flooding on the
first floor.
Æ Severe: Greater than $7,500 of
FEMA inspected personal property
damage or determined destroyed and/or
6 or more feet of flooding on the first
floor.
For rental properties, to meet the
statutory requirement of ‘‘most
impacted and distressed’’ in this
legislative language, homes are
determined to have a high level of
damage if they have damage of ‘‘majorlow’’ or higher. That is, they have a
FEMA personal property damage
assessment of $2,000 or greater or
flooding over 4 foot. Furthermore,
landlords are presumed to have
adequate insurance coverage unless the
unit is occupied by a renter with income
of $30,000 or less. Units are occupied by
a tenant with income less than $30,000
are used to calculate likely unmet needs
for affordable rental housing. For those
units occupied by tenants with incomes
under $30,000, HUD estimates unmet
needs as 75 percent of the estimated
repair cost.
• The median cost to fully repair a
home for a specific disaster to code
within each of the damage categories
noted above is calculated using the
average real property damage repair
costs determined by the Small Business
Administration for its disaster loan
program for the subset of homes
inspected by both SBA and FEMA.
Because SBA is inspecting for full repair
costs, it is presumed to reflect the full
cost to repair the home, which is
generally more than the FEMA estimates
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on the cost to make the home habitable.
If fewer than 100 SBA inspections are
made for homes within a FEMA damage
category, the estimated damage amount
in the category for that disaster has a
cap applied at the 75th percentile of all
damaged units for that category for all
disasters and has a floor applied at the
25th percentile.
Calculating Unmet Infrastructure Needs
• To proxy unmet infrastructure
needs, HUD uses data from FEMA’s
Public Assistance program on the state
match requirement (extracted January
2014). This allocation uses only a subset
of the Public Assistance damage
estimates reflecting the categories of
activities most likely to require CDBG–
DR funding above the Public Assistance
and state match requirement. Those
activities are categories: C—Roads and
Bridges; D—Water Control Facilities;
E—Public Buildings; F—Public Utilities;
and G—Recreational-Other. Categories
A (Debris Removal) and B (Protective
Measures) are largely expended
immediately after a disaster and reflect
interim recovery measures rather than
the long-term recovery measures for
which CDBG–DR funds are generally
used.
For the third round of CDBG–DR
funding for Sandy recovery, HUD also
includes data from the USDA
Emergency Watershed Repair Program
(extracted May 2014). For most
impacted disasters in 2011, 2012, and
2013 that have not received
supplemental funding to address
watershed repairs, HUD includes the
estimated unmet repair costs calculated
by USDA in the unmet repair needs
calculation.
Calculating Economic Revitalization
(Small Business) Needs
• Based on SBA disaster loans to
businesses (extracted January 2014),
HUD used the sum of real property and
real content loss of small businesses not
receiving an SBA disaster loan. This is
adjusted upward by the proportion of
applications that were received for a
disaster that content and real property
loss were not calculated because the
applicant had inadequate credit or
income. For example, if a state had 160
applications for assistance, 150 had
calculated needs and 10 were denied in
the pre-processing stage for not enough
income or poor credit, the estimated
unmet need calculation would be
increased as (1 + 10/160) * calculated
unmet real content loss.
• Because applications denied for
poor credit or income are the most
likely measure of needs requiring the
type of assistance available with CDBG–
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DR funds, the calculated unmet
business needs for each state are
adjusted upwards by the proportion of
total applications that were denied at
the pre-process stage because of poor
credit or inability to show repayment
ability. Similar to housing, estimated
damage is used to determine what
unmet needs will be counted as severe
unmet needs. Only properties with total
real estate and content loss in excess of
$30,000 are considered severe damage
for purposes of identifying the most
impacted and distressed areas.
Æ Category 1: real estate + content
loss = below $12,000
Æ Category 2: real estate + content
loss = $12,000 to $30,000
Æ Category 3: real estate + content
loss = $30,000 to $65,000
Æ Category 4: real estate + content
loss = $65,000 to $150,000
Æ Category 5: real estate + content
loss = above $150,000
To obtain unmet business needs, the
amount for approved SBA loans is
subtracted out of the total estimated
damage.
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Resiliency Needs
CDBG DR funds are often used to not
only support rebuilding to pre-storm
conditions, but also to build back much
stronger. For the disasters covered by
this Notice, HUD has required that
grantees use their funds in a way that
results in rebuilding back stronger so
that future disasters do less damage and
recovery can happen faster. To calculate
these resiliency costs, HUD multiplied
its estimates of total repair costs for
seriously damaged homes, small
businesses, and infrastructure by 30
percent for flooding disasters and 10
percent for other disasters.3 Total repair
costs are the repair costs including costs
covered by insurance, SBA, FEMA, and
other federal agencies. The resiliency
estimate is intended to reflect some of
the unmet needs associated with
building to higher standards such as
elevating homes, voluntary buyouts,
hardening, and other costs in excess of
normal repair costs.
Housing and Small Business
Construction Cost Adjustment
For grantees with housing
construction costs above the national
average, HUD increases their estimated
housing and business construction costs
using the same Marshall & Swift
regional cost adjustment multipliers as
used for HUD’s annual calculation of
3 The 30 percent multiplier for flooding disasters
is the approximate additional cost to elevate a
newly constructed home; the 10 percent multiplier
is the approximate additional cost to add a safe
room.
VerDate Sep<11>2014
17:07 Jan 07, 2015
Jkt 235001
Total Development Costs developed for
HUD’s public housing repair programs.
No estimate of damage is reduced by the
multiplier (ie. if the Marshall & Swift
adjustment is less than 1, the
adjustment is set at 1).
[FR Doc. 2015–00109 Filed 1–7–15; 8:45 am]
BILLING CODE 4210–67–P
1043
Officer, 4400 Masthead Street NE.,
Albuquerque, New Mexico, 87109; or
emailing comments to veronica _
herkshan@ost.doi.gov.
FOR FURTHER INFORMATION CONTACT:
Chief of Staff, Office of the Special
Trustee for American Indians, 1849 C
Street NW., Room 3254, Washington,
DC 20240, or by telephone at 202–208–
4866.
DEPARTMENT OF THE INTERIOR
SUPPLEMENTARY INFORMATION
Office of the Secretary
I. Background
[DT20400000 DST000000.T7AC00
15XD0120AF]
Privacy Act of 1974, as Amended;
Notice To Amend an Existing System
of Records
Office of the Special Trustee for
American Indians, Interior.
ACTION: Notice of amendment to an
existing system of records.
AGENCY:
Pursuant to the provisions of
the Privacy Act of 1974, as amended,
the Department of the Interior is issuing
a public notice of its intent to amend the
Office of the Special Trustee for
American Indians Privacy Act system of
records, ‘‘Individual Indian Money (IIM)
Trust Funds–Interior, OS–02,’’ to
combine the existing system of records
with the OST Privacy Act system of
records, ‘‘Accounting Reconciliation
Tool (ART)—Interior, OS–11’’ into one
system of records for efficiency
purposes and to promote the overall
streamlining and management of
Department of the Interior Privacy Act
systems of records. This amendment
will also update the system location,
categories of individuals covered by the
system, categories of records in the
system, authority for maintenance of the
system, storage, safeguards, retention
and disposal, system manager and
address, notification procedures,
records access and contesting
procedures, records source categories,
and the routine uses to include
activities related to land consolidation
of fractionated lands.
DATES: Comments must be received by
February 17, 2015. The amendments to
the system will be effective February 17,
2015.
ADDRESSES: Any person interested in
commenting on this notice may do so
by: submitting comments in writing to
Veronica Herkshan, Office of the Special
Trustee for American Indians Privacy
Act Officer, 4400 Masthead Street NE.,
Albuquerque, New Mexico 87109; handdelivering comments to Veronica
Herkshan, Office of the Special Trustee
for American Indians Privacy Act
SUMMARY:
PO 00000
Frm 00030
Fmt 4703
Sfmt 4703
The Department of the Interior (DOI),
Office of the Special Trustee for
American Indians (OST), maintains the
‘‘Individual Indian Money (IIM) Trust
Funds—Interior, OS–02,’’ system of
records. Due to a recent reorganization
of OST and the Office of Historical
Accounting, DOI is proposing to
combine the OST Privacy Act system of
records, ‘‘Individual Indian Money (IIM)
Trust Funds—Interior, OS–02,’’ with the
OST Privacy Act system of records,
‘‘Accounting Reconciliation Tool
(ART)—Interior, OS–11,’’ for efficiency
purposes and to promote the overall
streamlining and management of DOI
Privacy Act systems of records. The two
systems have the same authorities and
purpose, to manage the collection,
distribution, and disbursement of Indian
Trust land income; are managed by the
same system manager within OST; and
have the same or similar categories of
records, categories of individuals, and
routine uses.
The IIM system will assist OST in
meeting the fiduciary responsibilities
set forth in the American Indian Trust
Fund Management Reform Act of 1994
including management of the receipt,
investment, disbursement and
administration of money held in trust
for individual Indians and Alaskan
Natives (or their heirs), and Indian
Tribes; and ensure timely, accurate, and
consistent responses to beneficiary
inquiries. The system also assists the
OST in providing litigation support in
analyzing and reconciling the historical
collection, distribution, and
disbursement of income from IIM
accounts, Indian trust land, and other
revenue sources. The amendments to
this system includes updating the
system locations, categories of
individuals covered by the system,
categories of records in the system,
authority for maintenance of the system,
storage, safeguards, retention and
disposal, system manager and address,
notification procedures, records access
and contesting procedures, records
source categories, and updating the
routine uses to include activities related
to land consolidation of fractionated
E:\FR\FM\08JAN1.SGM
08JAN1
]]>Agencies
[Federal Register Volume 80, Number 5 (Thursday, January 8, 2015)]
[Notices]
[Pages 1039-1043]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2015-00109]
-----------------------------------------------------------------------
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-5696-N-13]
Third Allocation, Waivers, and Alternative Requirements for
Grantees Receiving Community Development Block Grant Disaster Recovery
(CDBG-DR) Funds in Response to Disasters Occurring in 2013
AGENCY: Office of the Assistant Secretary for Community Planning and
Development, HUD.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: This Notice advises the public of a third allocation of
Community Development Block Grant disaster recovery (CDBG-DR) funds for
the purpose of assisting recovery in the most impacted and distressed
areas identified in major disaster declarations in calendar year 2013.
This is the seventh allocation of CDBG-DR funds under the Disaster
Relief Appropriations Act, 2013 (Pub. L. 113-2). In addition to an
initial allocation for disasters occurring in 2013, prior allocations
addressed the areas most impacted by Hurricane Sandy, as well as the
areas most impacted by disasters occurring in 2011 or 2012. In prior
Federal Register notices, the Department described the allocations,
relevant statutory provisions, the grant award process, criteria for
Action Plan approval, eligible disaster recovery activities, and
applicable waivers and alternative requirements. This Notice builds
upon the requirements of those notices, and specifies that funds
allocated through this notice are subject to all requirements in the
notice published on June 3, 2014 (79 FR 31964).
DATES: Effective Date: January 13, 2015.
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 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. Allocation
II. Use of Funds
III. Grant Amendment Process
IV. Catalog of Federal Domestic Assistance
V. Finding of No Significant Impact
Appendix A: Allocation Methodology
I. Allocation
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 disaster recovery (CDBG-
DR) 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.
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, a
total of $15.1 billion has been allocated or set aside: $13 billion in
response to Hurricane Sandy, $514 million in response to disasters
occurring in 2011 or 2012, $565 million in response to 2013 disasters,
and $1 billion set aside for the National Disaster Resilience
Competition. This Notice advises the public of a third allocation for
2013 disasters--$89.8 million is provided for the purpose of assisting
recovery in the most impacted and distressed areas in Colorado, the
city of Chicago, Illinois, Cook County, Illinois, and Du Page County,
Illinois. As the Appropriations Act requires funds to be awarded
directly to a state or unit of general local government (hereinafter,
local government), the term ``grantee'' refers to any jurisdiction
receiving a direct award from HUD under this Notice.
To comply with statutory direction that funds be used for disaster-
related expenses in the most impacted and distressed areas, HUD
computes allocations based on the best available data that cover all
the eligible affected areas. Based on further review of the impacts
from Presidentially-declared disasters that occurred in 2013, and
estimates of remaining unmet need, this Notice provides the following
awards:
Table 1--Allocations for Disasters Occurring in 2013
----------------------------------------------------------------------------------------------------------------
Grantee This allocation Second allocation First allocation Total
----------------------------------------------------------------------------------------------------------------
State of Colorado................... $58,246,000 $199,300,000 $62,800,000 $320,346,000
[[Page 1040]]
State of Illinois................... ................. 6,800,000 3,600,000 10,400,000
City of Chicago, IL................. 11,075,000 47,700,000 4,300,000 63,075,000
Cook County, IL..................... 14,816,000 54,900,000 13,900,000 83,616,000
Du Page County, IL.................. 5,626,000 18,900,000 7,000,000 31,526,000
State of Oklahoma................... ................. 83,100,000 10,600,000 93,700,000
City of Moore, OK................... ................. 25,900,000 26,300,000 52,200,000
---------------------------------------------------------------------------
Total........................... 89,763,000 436,600,000 128,500,000 654,863,000
----------------------------------------------------------------------------------------------------------------
As outlined in Table 2, to ensure funds provided under this Notice
address unmet needs within the ``most impacted and distressed''
counties, each local government receiving a direct award under this
Notice must expend its entire CDBG-DR award within its jurisdiction
(e.g., Cook County must expend all funds within Cook County, excluding
the city of Chicago; the city of Chicago must expend all funds in the
city of Chicago, including the portions of Cook and Du Page counties
located within the city's jurisdiction). The State of Colorado must
expend at least 80 percent of its funds in the most impacted counties
of Boulder, Weld, and Larimer but may expend 20 percent (approximately
$64 million from the combined first, second, and third allocations) in
other State-identified most impacted and distressed area within
counties having a declared major disaster in 2011, 2012 or 2013. The
following link provides access to maps showing declared disasters in
each state, by year: https://www.fema.gov/disasters/grid/state-tribal-government. The opportunity for certain grantees to expend a portion of
their allocations outside the most impacted and distressed counties
identified by HUD enables those grantees to respond to highly localized
distress identified via their own data. A detailed explanation of HUD's
allocation methodology is provided at Appendix A.
Table 2--Most Impacted and Distressed Counties Within Which Funds May be
Expended
------------------------------------------------------------------------
Minimum
percentage
that must be
Grantee Most impacted and expended in
distressed counties most impacted
and distressed
counties
------------------------------------------------------------------------
State of Colorado................. Boulder, Weld and 80
Larimer.
City of Chicago................... City of Chicago; 100
portions of the
city in Cook and Du
Page.
Cook County....................... Cook................ 100
Du Page County.................... Du Page............. 100
------------------------------------------------------------------------
II. Use of Funds
This Notice builds upon the requirements of the Federal Register
Notices published by the Department on March 5, 2013 (78 FR 14329),
April 19, 2013 (78 FR 23578), December 16, 2013 (76 FR 76154), June 3,
2014 (79 FR 31964), and July 11, 2014 (79 FR40133) referred to
collectively in this Notice as the ``Prior Notices''. The Prior Notices
can be accessed through the HUD Exchange Web site at https://www.hudexchange.info/cdbg-dr/cdbg-dr-laws-regulations-and-federal-register-notices/. In addition, the following links provide direct
access to the Prior Notices: https://www.gpo.gov/fdsys/pkg/FR-2013-03-05/pdf/2013-05170.pdf, https://www.gpo.gov/fdsys/pkg/FR-2013-04-19/pdf/2013-09228.pdf, https://www.gpo.gov/fdsys/pkg/FR-2013-12-16/pdf/2013-29834.pdf, https://www.gpo.gov/fdsys/pkg/FR-2014-06-03/pdf/2014-12709.pdf, and https://www.gpo.gov/fdsys/pkg/FR-2014-07-11/pdf/2014-16316.pdf.
The requirements of this Notice parallel those established for
other grantees receiving funds under the Appropriations Act in a
Federal Register Notice published by the Department on November 18,
2013 (78 FR 69104) and located at: https://www.gpo.gov/fdsys/pkg/FR-2013-11-18/pdf/2013-27506.pdf. Additionally, the funds allocated in
this Notice are bound by all of the same requirements as those found in
the Federal Register Notice published by the Department on June 3, 2014
(79 FR 31964), including the two year expenditure deadline located at:
https://www.gpo.gov/fdsys/pkg/FR-2014-06-03/pdf/2014-12709.pdf.
As a reminder, the Appropriations Act requires funds to be used
only for specific disaster-recovery related purposes. This allocation
provides additional funds to areas impacted by disasters in 2013 for
recovery, including mitigation and resilience as part of the recovery
effort and directs grantees to undertake comprehensive planning to
promote resilience as part of that effort. The law also requires that
prior to the obligation of CDBG-DR funds, a grantee shall submit a plan
detailing the proposed use of funds, including criteria for eligibility
and how the use of these funds will address disaster relief, long-term
recovery, restoration of infrastructure and housing, and economic
revitalization in the most impacted and distressed areas. To access
funds provided by the prior allocations, HUD approved an Action Plan
and Action Plan amendments for each of the grantees identified as
receiving funds under this Notice. Grantees are now directed to submit
a substantial Action Plan Amendment in order to access funds provided
in this Notice. For more guidance on requirements for substantial
Action Plan Amendments, please see section III of this Notice.
Note that, as provided by the HCD Act, funds may be used as a
matching requirement, share, or contribution for any other federal
program when used to carry out an eligible CDBG-DR activity.
[[Page 1041]]
However, pursuant to the requirements of the Appropriations Act, CDBG-
DR funds may not be used for expenses reimbursable by, or for which
funds are made available by FEMA or the United States Army Corps of
Engineers (USACE).
IV. Grant Amendment Process
To access funds allocated by this Notice grantees must submit a
substantial Action Plan Amendment to their approved Action Plan. Any
substantial Action Plan Amendment submitted after the effective date of
this Notice is subject to the following requirements:
Grantee consults with affected citizens, stakeholders,
local governments and public housing authorities to determine updates
to its needs assessment; in addition, grantee prepares a comprehensive
risk analysis (see section V.3.d. of the June 3, 2014 Notice);
Grantee amends its citizen participation plan to reflect
the requirements of the June 3, 2014 Notice (e.g., new requirement for
a public hearing);
Grantee publishes a substantial amendment to its
previously approved Action Plan for Disaster Recovery on the grantee's
official Web site for no less than 30 calendar days and holds at least
one public hearing to solicit public comment;
Grantee responds to public comment and submits its
substantial Action Plan Amendment to HUD (with any additional
certifications required by this Notice or Prior Notices) no later than
120 days after the effective date of this Notice;
HUD reviews the substantial Action Plan Amendment within
60 days from date of receipt and approves the Amendment according to
criteria identified in the Prior Notices;
HUD sends an Action Plan Amendment approval letter,
revised grant conditions (may not be applicable to all grantees), and
an amended unsigned grant agreement to the grantee. If the substantial
Amendment is not approved, a letter will be sent identifying its
deficiencies; the grantee must then re-submit the Amendment within 45
days of the notification letter;
Grantee ensures that the HUD-approved substantial Action
Plan Amendment (and updated Action Plan) is posted on its official Web
site;
Grantee signs and returns the grant agreement;
HUD signs the grant agreement and revises the grantee's
line of credit amount;
If it has not already done so, grantee enters the
activities from its published Action Plan Amendment into the Disaster
Recovery Grant Reporting (DRGR) system and submits it to HUD within the
system;
The grantee may draw down funds from the line of credit
after the Responsible Entity completes applicable environmental
review(s) pursuant to 24 CFR part 58 (or paragraph A.20 under section
VI of the March 5, 2013 Notice) and, as applicable, receives from HUD
or the state an approved Request for Release of Funds and
certification;
Grantee amends its published Action Plan to include its
projection of expenditures and outcomes within 90 days of the Action
Plan Amendment approval as provided for in paragraph 4.f. of section V
of the June 3, 2014 Notice; and
If not already completed, grantee updates its full
consolidated plan to reflect disaster-related needs no later than its
Fiscal Year 2015 consolidated plan update.
VIII. 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.
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: December 31, 2014.
Clifford Taffett,
General Deputy Assistant Secretary for Community Planning and
Development.
CDBG-DR Allocation Methodology--2013 Disasters Third Tranche
HUD calculates the cost to rebuild the most impacted and distressed
homes, businesses, and infrastructure back to pre-disaster conditions.
From this base calculation, HUD calculates both the amount not covered
by insurance and other federal sources to rebuild back to pre-disaster
conditions as well as a ``resiliency'' amount which is calculated at 30
percent of the total basic cost to rebuild back the most distressed
flooded homes, businesses, and infrastructure to pre-disaster
conditions; 10 percent for other disaster types (ie. tornadoes, severe
storms, fires). The estimated cost to repair unmet needs are combined
with the resiliency needs to calculate the total severe unmet needs
estimated to achieve long-term recovery. This calculation of housing,
business, and infrastructure needs is used to determine the relative
share of funding among eligible disasters.
Statutory Language for the Allocation
Public Law 113-2 (January 29, 2013) provides the following language
on how the Secretary shall allocate the funds: ``For an additional
amount for ``Community Development Fund'', $16,000,000,000,\1\ to
remain available until September 30, 2017, 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 (42 U.S.C. 5121 et seq.) due to Hurricane Sandy and
other eligible events in calendar years 2011, 2012, and 2013, for
activities authorized under title I of the Housing and Community
Development Act of 1974 (42 U.S.C. 5301 et seq.): Provided, That funds
shall be awarded directly to the State or unit of general local
government as a grantee at the discretion of the Secretary of Housing
and Urban Development: Provided further, That the Secretary shall
allocate to grantees not less than 33 percent of the funds provided
under this heading within 60 days after the enactment of this division
based on the best available data:''
---------------------------------------------------------------------------
\1\ $15.2 billion after sequestration.
---------------------------------------------------------------------------
Available Data
The ``best available'' data HUD staff have identified as being
available to calculate unmet needs at this time for all disasters in
2011, 2012, and 2013 meeting HUD's Most Impacted and Distressed
threshold comes from the following data sources:
FEMA Individual Assistance program data on housing unit
damage;
[[Page 1042]]
SBA for management of its disaster assistance loan program
for housing repair and replacement;
SBA for management of its disaster assistance loan program
for business real estate repair and replacement as well as content
loss; and
FEMA Public Assistance, Department of Transportation
Federal Transit Administration and Federal Highway Administration,
Corps of Engineers, and US Department of Agriculture Emergency
Watershed Restoration data on infrastructure.
These funds are only allocated toward disasters in 2011, 2012, and
2013 determined by HUD to be most impacted and distressed disasters.\2\
---------------------------------------------------------------------------
\2\ A Most Impacted disaster for non-Sandy disasters is a
disaster where the severe housing and business unmet needs
(excluding resiliency) exceed $25 million from counties with greater
than $10 million in unmet housing and business severe needs
(excluding resiliency and area construction cost adjustment).
---------------------------------------------------------------------------
Calculating Unmet Housing Needs
The core data on housing damage for both the unmet housing needs
calculation and the concentrated damage are based on home inspection
data for FEMA's Individual Assistance program (extracted January 2014).
For unmet housing needs, the FEMA data are supplemented by Small
Business Administration data from its Disaster Loan Program (extracted
January 2014). HUD calculates ``unmet housing needs'' as the number of
housing units with unmet needs times the estimated cost to repair those
units less repair funds already provided by FEMA, where:
Each of the FEMA inspected owner units are categorized by
HUD into one of five categories:
[cir] Minor-Low: Less than $3,000 of FEMA inspected real property
damage.
[cir] Minor-High: $3,000 to $7,999 of FEMA inspected real property
damage.
[cir] Major-Low: $8,000 to $14,999 of FEMA inspected real property
damage (if basement flooding only, damage categorization is capped at
major-low).
[cir] Major-High: $15,000 to $28,800 of FEMA inspected real
property damage and/or 4 to 6 feet of flooding on the first floor.
[cir] Severe: Greater than $28,800 of FEMA inspected real property
damage or determined destroyed and/or 6 or more feet of flooding on the
first floor.
To meet the statutory requirement of ``most impacted and
distressed'' in this legislative language, homes are determined to have
a high level of damage if they have damage of ``major-low'' or higher.
That is, they have a real property FEMA inspected damage of $8,000 or
flooding over 4 foot. Furthermore, a homeowner is determined to have
unmet needs if they have received a FEMA grant to make home repairs.
For homeowners with a FEMA grant and insurance for the covered event,
HUD assumes that the unmet need ``gap'' is 20 percent of the difference
between total damage and the FEMA grant.
FEMA does not inspect rental units for real property
damage so personal property damage is used as a proxy for unit damage.
Each of the FEMA inspected renter units are categorized by HUD into one
of five categories:
[cir] Minor-Low: Less than $1,000 of FEMA inspected personal
property damage.
[cir] Minor-High: $1,000 to $1,999 of FEMA inspected personal
property damage.
[cir] Major-Low: $2,000 to $3,499 of FEMA inspected personal
property damage (if basement flooding only, damage categorization is
capped at major-low).
[cir] Major-High: $3,500 to $7,499 of FEMA inspected personal
property damage or 4 to 6 feet of flooding on the first floor.
[cir] Severe: Greater than $7,500 of FEMA inspected personal
property damage or determined destroyed and/or 6 or more feet of
flooding on the first floor.
For rental properties, to meet the statutory requirement of ``most
impacted and distressed'' in this legislative language, homes are
determined to have a high level of damage if they have damage of
``major-low'' or higher. That is, they have a FEMA personal property
damage assessment of $2,000 or greater or flooding over 4 foot.
Furthermore, landlords are presumed to have adequate insurance coverage
unless the unit is occupied by a renter with income of $30,000 or less.
Units are occupied by a tenant with income less than $30,000 are used
to calculate likely unmet needs for affordable rental housing. For
those units occupied by tenants with incomes under $30,000, HUD
estimates unmet needs as 75 percent of the estimated repair cost.
The median cost to fully repair a home for a specific
disaster to code within each of the damage categories noted above is
calculated using the average real property damage repair costs
determined by the Small Business Administration for its disaster loan
program for the subset of homes inspected by both SBA and FEMA. Because
SBA is inspecting for full repair costs, it is presumed to reflect the
full cost to repair the home, which is generally more than the FEMA
estimates on the cost to make the home habitable. If fewer than 100 SBA
inspections are made for homes within a FEMA damage category, the
estimated damage amount in the category for that disaster has a cap
applied at the 75th percentile of all damaged units for that category
for all disasters and has a floor applied at the 25th percentile.
Calculating Unmet Infrastructure Needs
To proxy unmet infrastructure needs, HUD uses data from
FEMA's Public Assistance program on the state match requirement
(extracted January 2014). This allocation uses only a subset of the
Public Assistance damage estimates reflecting the categories of
activities most likely to require CDBG-DR funding above the Public
Assistance and state match requirement. Those activities are
categories: C--Roads and Bridges; D--Water Control Facilities; E--
Public Buildings; F--Public Utilities; and G--Recreational-Other.
Categories A (Debris Removal) and B (Protective Measures) are largely
expended immediately after a disaster and reflect interim recovery
measures rather than the long-term recovery measures for which CDBG-DR
funds are generally used.
For the third round of CDBG-DR funding for Sandy recovery, HUD also
includes data from the USDA Emergency Watershed Repair Program
(extracted May 2014). For most impacted disasters in 2011, 2012, and
2013 that have not received supplemental funding to address watershed
repairs, HUD includes the estimated unmet repair costs calculated by
USDA in the unmet repair needs calculation.
Calculating Economic Revitalization (Small Business) Needs
Based on SBA disaster loans to businesses (extracted
January 2014), HUD used the sum of real property and real content loss
of small businesses not receiving an SBA disaster loan. This is
adjusted upward by the proportion of applications that were received
for a disaster that content and real property loss were not calculated
because the applicant had inadequate credit or income. For example, if
a state had 160 applications for assistance, 150 had calculated needs
and 10 were denied in the pre-processing stage for not enough income or
poor credit, the estimated unmet need calculation would be increased as
(1 + 10/160) * calculated unmet real content loss.
Because applications denied for poor credit or income are
the most likely measure of needs requiring the type of assistance
available with CDBG-
[[Page 1043]]
DR funds, the calculated unmet business needs for each state are
adjusted upwards by the proportion of total applications that were
denied at the pre-process stage because of poor credit or inability to
show repayment ability. Similar to housing, estimated damage is used to
determine what unmet needs will be counted as severe unmet needs. Only
properties with total real estate and content loss in excess of $30,000
are considered severe damage for purposes of identifying the most
impacted and distressed areas.
[cir] Category 1: real estate + content loss = below $12,000
[cir] Category 2: real estate + content loss = $12,000 to $30,000
[cir] Category 3: real estate + content loss = $30,000 to $65,000
[cir] Category 4: real estate + content loss = $65,000 to $150,000
[cir] Category 5: real estate + content loss = above $150,000
To obtain unmet business needs, the amount for approved SBA loans
is subtracted out of the total estimated damage.
Resiliency Needs
CDBG DR funds are often used to not only support rebuilding to pre-
storm conditions, but also to build back much stronger. For the
disasters covered by this Notice, HUD has required that grantees use
their funds in a way that results in rebuilding back stronger so that
future disasters do less damage and recovery can happen faster. To
calculate these resiliency costs, HUD multiplied its estimates of total
repair costs for seriously damaged homes, small businesses, and
infrastructure by 30 percent for flooding disasters and 10 percent for
other disasters.\3\ Total repair costs are the repair costs including
costs covered by insurance, SBA, FEMA, and other federal agencies. The
resiliency estimate is intended to reflect some of the unmet needs
associated with building to higher standards such as elevating homes,
voluntary buyouts, hardening, and other costs in excess of normal
repair costs.
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\3\ The 30 percent multiplier for flooding disasters is the
approximate additional cost to elevate a newly constructed home; the
10 percent multiplier is the approximate additional cost to add a
safe room.
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Housing and Small Business Construction Cost Adjustment
For grantees with housing construction costs above the national
average, HUD increases their estimated housing and business
construction costs using the same Marshall & Swift regional cost
adjustment multipliers as used for HUD's annual calculation of Total
Development Costs developed for HUD's public housing repair programs.
No estimate of damage is reduced by the multiplier (ie. if the Marshall
& Swift adjustment is less than 1, the adjustment is set at 1).
[FR Doc. 2015-00109 Filed 1-7-15; 8:45 am]
BILLING CODE 4210-67-P
