Additional Clarifying Guidance, Waivers, and Alternative Requirements for Grantees in Receipt of Community Development Block Grant Disaster Recovery Funds Under the Disaster Relief Appropriations Act, 2013, 51589-51593 [2015-21065]
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Federal Register / Vol. 80, No. 164 / Tuesday, August 25, 2015 / Notices
Status of the proposed information
collection: This is an extension of a
currently approved collection.
Authority: The Paperwork Reduction Act
of 1995, 44 U.S.C., Chapter 35, as amended.
Dated: August 13, 2015.
Janet M. Golrick,
Associate General Deputy Assistant Secretary
for Housing-Associate Deputy Federal
Housing Commissioner.
[FR Doc. 2015–20925 Filed 8–24–15; 8:45 am]
BILLING CODE 4210–67–P
DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT
[Docket No. FR–5696–N–16]
Additional Clarifying Guidance,
Waivers, and Alternative Requirements
for Grantees in Receipt of Community
Development Block Grant Disaster
Recovery Funds Under the Disaster
Relief Appropriations Act, 2013
Office of the Assistant
Secretary for Community Planning and
Development, HUD.
ACTION: Notice.
AGENCY:
This notice provides
clarifying guidance, waivers, and
alternative requirements for Community
Development Block Grant Disaster
Recovery grantees in receipt of funds
under the Disaster Relief Appropriations
Act, 2013 (the Appropriations Act). This
notice modifies requirements for
infrastructure projects funded by
grantees receiving an allocation for
Hurricane Sandy. This notice also
provides waivers and alternative
requirements for the State of New
Jersey’s Energy Resilience Bank and LMI
Homeowner Rebuilding Program, and
for New York City’s infrastructure
projects and the Breezy Point Flood
Mitigation System.
DATES: Effective Date: August 31, 2015.
FOR FURTHER INFORMATION CONTACT:
Stanley 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:
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SUMMARY:
Table of Contents
I. Background
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II. Applicable Rules, Statutes, Waivers, and
Alternative Requirements
III. Catalog of Federal Domestic Assistance
IV. Finding of No Significant Impact
I. Background
The Appropriations Act (Pub. L. 113–
2, approved January 29, 2013) 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 the amount of
funding for CDBG–DR grants under the
Appropriations Act to $15.18 billion. To
date, a total of $15.18 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, $655 million
in response to 2013 disasters, and $1
billion set aside for the National
Disaster Resilience Competition.
This notice specifies a waiver and
alternative requirements and modifies
requirements for Hurricane Sandy
grantees in receipt of allocations under
the Appropriations Act, which are
described within the Federal Register
notices published by the Department on
March 5, 2013 (78 FR 14329), April 19,
2013 (78 FR 23578), August 2, 2013 (78
FR 46999), November 18, 2013 (78 FR
69104), March 27, 2014 (79 FR 17173),
July 11, 2014 (79 FR 40133), October 16,
2014 (79 FR 62182), April 2, 2015 (80
FR 17772), and May 11, 2015 (80 FR
26942), 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.1
II. Applicable Rules, Statutes, Waivers,
and Alternative Requirements
The Appropriations Act authorizes
the Secretary to waive, or specify
alternative requirements for, any
1 Links to the prior notices, the text of the
Appropriations Act, and additional guidance
prepared by the Department for CDBG–DR grants,
are available on the HUD Exchange Web site:
https://www.hudexchange.info/cdbg-dr/cdbg-drlaws-regulations-and-federal-register-notices/.
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51589
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 Housing and
Community Development Act of 1974
(42 U.S.C. 5301 et seq.) (HCD Act).
Regulatory waiver authority is also
provided by 24 CFR 5.110, 91.600, and
570.5.
For the waivers and alternative
requirements described in this notice,
the Secretary has determined that good
cause exists and that the waivers and
alternative requirements are not
inconsistent with the overall purpose of
the HCD Act. Grantees may request
waivers and alternative requirements
from the Department as needed to
address specific needs related to their
recovery activities. Under the
requirements of the Appropriations Act,
waivers must be published in the
Federal Register no later than 5 days
before the effective date of such waiver.
1. Exemptions from Infrastructure
Program and Project Requirements—
Obligated Assistance from Federal
Grant Program Projects and Completed
Projects—(Hurricane Sandy Grantees
only). The March 27, 2014, Federal
Register notice, at paragraph II.1.b.,
Obligated Public Assistance Grant
Program Projects (78 FR 17174),
provides an exemption from certain
infrastructure requirements described in
paragraph 2 of the Federal Register
notice published November 18, 2013, at
78 FR 69107, for those projects to which
the Federal Emergency Management
Agency (FEMA) had obligated Public
Assistance (PA) funds on or before
November 25, 2013. After consideration
of the factors discussed below, HUD is
now modifying this exemption. As of
the effective date of this notice, the
infrastructure requirements described in
paragraph 2 at 78 FR 69107 will not
apply to an infrastructure project carried
out by a Hurricane Sandy CDBG–DR
grantee if FEMA or any other Federal
agency has obligated funds to that
infrastructure project on or before
January 15, 2014, or if the infrastructure
project was completed on or before
January 15, 2014.
Oftentimes CDBG–DR grantees are
awarded Federal recovery funds for
which CDBG–DR can be used as the
source for the required non-Federal
local match of funds. These Federal
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sources may include, but are not limited
to, the Environmental Protection
Agency, the Federal Highway
Administration, the Federal
Transportation Administration, the
Army Corps of Engineers, and the
FEMA Public Assistance and Hazard
Mitigation grant programs. Such grant
assistance can be used for a variety of
activities and often requires grantees to
contribute a non-Federal share of funds
to a project. If the project is an eligible
CDBG–DR activity, CDBG–DR funds
may be used for the payment of the nonFederal share required in connection
with a Federal grant-in-aid program if
permitted by the Federal awarding
agency that required the match (see 24
CFR 570.201(g) and 42 U.S.C.
5305(a)(9)) .
Prior to HUD’s November 18, 2013,
notice, many grantees had coordinated
with Federal agencies to secure funding
for critical infrastructure projects, but
only upon establishment of the Sandy
Recovery Office and the launch of the
Regional Coordination Working Group
(now known as the Sandy Regional
Infrastructure Resilience Coordination
Group or SRIRC Group), in January
2014, would grantees have been able to
comply with Federal coordination
requirements outlined in the November
18, 2013 notice. In addition, grantees
may have completed infrastructure
projects before the establishment of the
requirements described in that notice at
paragraph 2 at 78 FR 69107.
Accordingly, the clarification
described in the March 27, 2014, notice
at paragraph II.1.b. is amended to read,
‘‘Infrastructure requirements described
in paragraph 2 at 78 FR 69107 do not
apply to any infrastructure project
where funds have been obligated by a
Federal agency under any federal grantin-aid program on or before January 15,
2014, or where a project funded through
any means was completed on or before
January 15, 2014.’’
2. Waiver of requirement for
assistance to businesses, including
privately-owned utilities for Energy
Resilience Bank activities (State of New
Jersey only)—The Federal Register
notice published on March 5, 2013,
instituted an alternative requirement to
various provisions at 42 U.S.C. 5305(a)
and restricts the assistance provided to
for-profit businesses to only those
businesses that meet the definition of a
small business as described by the
Small Business Administration (SBA) at
13 CFR part 121. That notice also
prohibited CDBG–DR grantees in receipt
of funds under the Appropriations Act
from providing funds to privatelyowned
utilities (paragraph VI.D.41., Alternative
requirement for assistance to
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businesses, including privately-owned
utilities, at 78 FR 14347). The State of
New Jersey has requested a waiver of
the prohibition on assistance to
businesses that do not meet the SBA
definition of a small business and the
prohibition on assistance to privatelyowned utilities for its planned $200
million CDBG–DR investment in the
New Jersey Energy Resilience Bank
(ERB).
The Department approved the ERB in
the State’s disaster recovery Action Plan
for the second allocation of CDBG–DR
funds under the Appropriations Act on
May 30, 2014.2 The State has committed
to using the ERB to harden critical
facilities to ensure they remain
operational during storm events through
the use of distributed energy generation,
such as combined heat and power, fuel
cells, and off-grid solar inverters with
battery storage. Eligible technologies
must be constructed to operate
independently from the electric utility
grid and be able to start up without a
direct connection to the electric grid
when the grid is down due to extreme
weather events. The ERB will focus on
funding critical facilities in sectors that
were impacted by Hurricane Sandy,
including water and wastewater
treatment plants, hospitals and longterm care facilities, colleges and
universities, state and county
correctional facilities, HUD-assisted
multifamily housing units, community
shelters, and transportation and transit
infrastructure.
The ERB aligns with the Hurricane
Sandy Rebuilding Strategy’s (the
Strategy) goal of ‘‘Ensuring a Regionally
Coordinated, Resilient Approach to
Infrastructure Investment,’’ and the
Strategy specifically references the ERB
as a program developed by the State
with assistance from the Hurricane
Sandy Rebuilding Task Force. The
Strategy notes ‘‘most energy
infrastructure is privately-owned and
operated, which means that resilience
investment will come about only
through close cooperation between the
Federal and State governments and the
private sector.’’
Many of the facilities expected to
receive funding through the State’s ERB
provide critical public services but are
owned by a mix of public and for-profit
entities, or are solely privately owned,
and cannot be assisted under the current
prohibitions imposed by the March 5,
2013, notice. At least 20 of the 108
potentially eligible hospital facilities are
operated as for-profit entities and do not
meet the small business criteria.
2 https://www.renewjerseystronger.org/planspolicies-reports/#cdbg.
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Moreover, 438 of the State’s 617 longterm care facilities and 95 of 170
institutions of higher learning are
operated as for-profit entities and do not
meet the small business criteria. The
State also anticipates funding private
utilities, such as private water districts,
which serve the needs of their regional
populations in the same manner as
public utilities.
These facilities often serve
communities most impacted by
Hurricane Sandy, having high
concentrations of low- and moderateincome (LMI) persons, and they provide
essential services to vulnerable
populations that are comparable to their
public and non-profit counterparts.
Without a waiver of the restrictions on
assistance to certain types of businesses,
many of these critical facilities would be
ineligible for funding, leaving large gaps
in the State’s regional distributed energy
networks and excluding significant
populations (including LMI persons)
from benefiting from the State’s
resiliency measures.
While not every critical facility will
serve predominantly LMI populations,
vulnerable residents typically rely more
on community-based facilities and
services, especially in disaster
scenarios. To the extent that the ERB
will be funding such facilities and
services, LMI populations would benefit
especially from the increased resiliency
of critical infrastructure during the next
storm event. Accordingly, as a condition
of providing this waiver, HUD is
requiring the State to develop a scoring
methodology for the selection of ERB
projects that provides preferential
treatment to LMI areas and populations.
The LMI benefit scoring methodology is
to be designed to ensure continued
progress by the State in meeting its
overall CDBG–DR grant LMI benefit
requirement and to ensure that, in
financing ERB projects, the State places
a significant priority on serving LMI
areas and populations.
In its request to the Department, the
State acknowledged that the ERB is not
a substitute for private investment, but
is instead designed to leverage
additional private investment in
resilient energy systems. The State has
developed ERB financial products using
substantial market research and analysis
to ensure that products are attractive to
consumers in the market, while also
generating proceeds for the ERB. The
State is also developing assistance
packages that consist of variable
contributions of loans, forgivable loans,
and grants, with each product requiring
varying levels of equity investments.
Market research and analysis specific to
each business sector and uniform
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underwriting standards will drive the
precise financing terms and equity
contributions of participating businesses
to ensure that assistance is based on
actual identified need. For example, the
water/wastewater product that the ERB
will offer requires for-profit applicants
to provide an equity contribution of 10
percent of total project cost, while there
is no equity contribution for public or
non-profit facilities. Accordingly, HUD
is requiring the State to establish
policies and procedures to ensure that
the CDBG–DR funds invested in ERB
projects reflect the actual identified
financing needs of the assisted
businesses, while also ensuring a robust
return to the ERB to finance future
investments.
Based on the critical role that the ERB
will fulfill in ensuring long-term
resiliency within Sandy-impacted New
Jersey communities and for only those
activities funded by the ERB as
described in the State’s approved
disaster recovery Action Plan
Amendment, the Department is waiving
the alternative requirement in the March
5, 2013, notice and subsequent notices
that prohibit funding businesses that do
not meet the SBA definition of small
business and funding of private utilities,
subject to the following alternative
requirements. As a condition of this
waiver the State must:
• Provide preferential treatment to
LMI areas and populations in its ERB
scoring methodology;
• Require an equity contribution for
for-profit critical facilities, the amount
of which is to be based on uniform
underwriting standards developed by
the State and uniformly applied to all
such facilities, to ensure that the level
of assistance provided to these facilities
addresses only the actual identified
needs of the project; and
• Establish a mix of financing terms
(loan, forgivable loan, and/or grant) for
each assisted for-profit facility, based on
the business’s financial capacity, in
order to ensure that assistance is based
on actual identified need, in order to
achieve a targeted use of funds and to
safeguard against the potential oversubsidization of for-profit facilities.
This waiver allows the State to add
new potential beneficiaries to the
activity described within its amended
Action Plan for disaster recovery. This
change will constitute a substantial
amendment as described in the March 5,
2013, notice (78 FR 14329) at paragraph
VI.A.3.a. Accordingly, the State must
submit a Substantial Action Plan
Amendment revising its description of
the ERB to include affected entities, and
this amendment will be subject to the
citizen participation requirements of the
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March 5, 2013, notice at VI.A.3, which
requires no less than 7 calendar days to
solicit public comment.
3. Extension of Urgent Need
Certification Waiver for ERB activities
(State of New Jersey only)—The March
5, 2013, Federal Register notice waives
the certification requirements for
classifying activities as meeting the
CDBG urgent need national objective
until ‘‘two years after the date HUD
obligates funds to a grantee for the
activity’’ (paragraph VI.A.1.f, Use of the
urgent need national objective, at 78 FR
14336) and establishes an alternative
requirement for grantees. That
requirement provides that during the 2year period, grantees must document
how all programs and/or activities
funded under the urgent need national
objective category respond to a disasterrelated impact. In its implementation of
the Appropriations Act, HUD
established the 2-year limit on the use
of this alternative certification
requirement in response to grantees’
historical use of this urgent need
alternative certification requirement in
previous disasters. The State of New
Jersey has requested an extension of the
urgent need national objective
alternative certification requirement for
the program income generated from its
CDBG–DR grant and used to fund
activities through its ERB program.
HUD must obligate all funds under
the Appropriations Act by September
30, 2017. Because grantees are required
to expend program funds within 2-years
following HUD’s obligation of the funds,
CDBG–DR funds used to finance ERB
projects will automatically qualify
under the 2-year alternative urgent need
certification requirement. The State,
however, intends to apply program
income generated through ERB projects
to additional ERB projects and may also
apply program income from its other
CDBG–DR programs to the ERB, beyond
the 2-year period of the alternative
urgent need certification requirement.
The State has requested authority to use
the alternative urgent need certification
requirement; for the life of the CDBG–
DR grant, for program income applied to
the ERB. Without this extension, funds
critical to the performance of the ERB
could not be classified as meeting the
urgent need national objective and
program participants may be unable to
raise necessary private capital for
critical energy resilience projects.
Providing this flexibility for ERBfinanced projects will allow the projects
to be implemented following the
obligation of all CDBG–DR funds to the
ERB and until the State has closed out
its CDBG–DR Sandy recovery grant.
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Therefore, until grant closeout and for
only program income used to fund ERB
activities, HUD is permitting the State of
New Jersey, when the use of the urgent
need national objective is warranted, to
document the use of the urgent need
national objective by applying the
waiver and alternative requirement
regarding urgent need at paragraph
VI.A.1.f. of the March 5, 2013, notice (78
FR 14336). The program income
requirements described in paragraphs
A.2 and A.17 of section VI of the March
5, 2013, notice (78 FR 14336) will
continue to apply.
4. Extension of 1-year time limitation
on reimbursable pre-award expenses
(State of New Jersey only)—Grantees in
receipt of funds under the
Appropriations Act are subject to the
limitations on the reimbursement of preaward disaster recovery expenses as
provided for in CPD Notice 2014–017
(‘‘Guidance for Charging Pre-Award
Costs of Homeowners, Businesses, and
Other Qualifying Entities to CDBG
Disaster Recovery Grants’’) (the CPD
Notice),3 as may be amended, and the
November 18, 2014, notice at section VI,
paragraph 5, which requires grantees to
comply with the provisions of the CPD
Notice. The CPD Notice states that
grantees may ‘‘charge to CDBG–DR
grants the eligible pre-award and preapplication costs of individuals and
private entities related to single- and
multi-family residential structures and
nonresidential structures, only if the
person or private entity incurred the
expenses within 1-year after the date of
the disaster and before the date on
which the person or entity applies for
CDBG–DR assistance.’’ The State of New
Jersey has requested an extension of this
1-year limitation for applicants to its
LMI Homeowners Rebuilding Program
in order to provide reimbursement for
rehabilitation and reconstruction
expenses incurred by LMI homeowners
who incurred such expenses after this
time limit and before applying to the
program for Federal assistance.
The State of New Jersey implemented
the LMI Homeowners Rebuilding
Program pursuant to a VCA with the
Department, which was executed on
May 30, 2014. The VCA was established
in response to a complaint filed by civil
rights and fair housing organizations
regarding the State’s administration of
its CDBG–DR funded recovery
programs. The VCA required the State to
implement the LMI Homeowners
Rebuilding Program more than 1-year
after the 1-year, post-disaster time
3 https://www.hudexchange.info/resource/4139/
notice-cpd14017-guidance-for-charging-preawardcosts—to-cdbg-disaster-recovery-grants.
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limitation established in the CPD
Notice. As a result, any rehabilitation
expenses incurred by applicants to the
program after the 1-year date would be
ineligible for reimbursement. Without
an extension of the 1-year limitation, the
State would be limited in its ability to
comply with the requirements of the
VCA and to provide necessary housing
assistance to LMI homeowners.
Accordingly, based on the critical role
of the LMI Homeowner Rebuilding
Program in providing housing recovery
assistance to LMI residents and for only
those applicants assisted through the
State’s LMI Homeowners Rebuilding
Program, the Department is extending
the date by which grantees may
reimburse expenses incurred by
applicants to the date of application to
the LMI Homeowners Rebuilding
Program, provided such expenses would
otherwise be eligible expenses.
5. Waiver of Major Infrastructure
Project (Covered Project) requirements
for projects in multiple counties (New
York City only)—The Federal Register
notice published November 18, 2013,
describes additional infrastructure
requirements, including requirements
placed on Covered Projects (paragraph
VI.2.g., Additional Requirements for
Major Infrastructure Projects, at 78 FR
69107). HUD approval is required for
each major infrastructure project with
such projects defined as having a total
cost of $50 million or more (including
at least $10 million of CDBG–DR funds),
or projects that benefit multiple
counties. The Federal Register notice
published on March 27, 2014, clarified
that ‘‘benefits multiple counties’’ means
that the project is physically located in
more than one county (paragraph II.1.a.,
Definition of ‘‘Benefits Multiple
Counties,’’ at 78 FR 17174). New York
City has requested exemption from the
major infrastructure requirements for
projects located in multiple counties
and exclusively within the city, where
they otherwise would not meet the
definition of a major infrastructure
project.
New York City is composed of five
counties (which are coterminous with
its five boroughs) that are subordinate to
the municipal government, and the
city’s authority precludes the need for
due consideration of the counties’
response. Requiring the city to adhere to
the Department’s requirements for major
infrastructure projects in such cases
would impose additional and
unnecessary standards for relatively
small projects that do not warrant the
level of scrutiny triggered by the
requirements. Accordingly, for purposes
of identifying major infrastructure
projects that are held to the
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requirements of the notice published
November 18, 2013, and any subsequent
notice that includes provisions for major
infrastructure projects, HUD is
providing New York City a waiver of the
major infrastructure identification
criteria to exclude projects located in
multiple counties that are located
exclusively within the city, only where
the project would not otherwise meet
the definition of a major infrastructure
project by exceeding the total cost
thresholds described above.
6. Waiver of requirements for housing
rehabilitation activities for Breezy Point
Flood Mitigation System (New York City
only)—New York City has requested a
waiver of 24 CFR 570.202(a)(1) to the
extent necessary to permit new
construction of a flood mitigation
system at Breezy Point, a privately held
cooperative in Queens, by classifying
the entire system as an improvement for
residential purposes.
Under the CDBG Entitlement Program
regulations, which are applicable to
units of local government, New York
City may use CDBG–DR funds to finance
the rehabilitation of privately owned
buildings and improvements for
residential purposes, including grounds
improvements that are incidental to and
necessary for housing rehabilitation.
This housing rehabilitation provision
does not permit the city to construct a
new flood mitigation system that
improves the grounds of a privately held
cooperative that benefits an entire
community. The community’s unique
status as a cooperative on a single
property lot also precludes the city from
funding the activity as an eligible public
facility and improvement under the
CDBG regulations at 24 CFR 570.201(c).
The flood mitigation system proposed
for Breezy Point will provide critical
protection to CDBG–DR home
rehabilitation investments as well as
investments from other Federal
partners, and it will improve
waterfronts damaged by Hurricane
Sandy. The city has determined that the
system is necessary to permit long-term
disaster recovery from Hurricane Sandy
for the Breezy Point community. Thus,
the city has requested the ability to
construct the project as part of its
CDBG–DR housing rehabilitation and
reconstruction efforts in the community.
The city is seeking $58.2 million to
construct this system from FEMA’s
Hazard Mitigation Grant Program
(HMGP), which requires a 25-percent,
local match or $14.55 million that may
potentially be sourced from the city’s
CDBG–DR grant. The community
provides year-round residency to 4,300
people and consists of 2,400 homes,
nearly all of which were damaged
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during Hurricane Sandy. The city and
community, with State and Federal
partners, has worked to rehabilitate
homes and reconstruct the community.
Federal investments in housing
rehabilitation total approximately $450
million, including National Flood
Insurance Program policy payments,
SBA loans, FEMA Individual Assistance
grants, the city’s Rapid Repair grants,
and CDBG–DR grants through the city’s
NYC Build it Back Program. The NYC
Build it Back Program alone is projected
to provide $200 million in housing
rehabilitation assistance to households
in the area, including $80 million in
assistance to approximately 400 low- or
moderate-income households. Without a
provision to allow this flood mitigation
improvement, Federal investments as
well as numerous private and public
interests would be exposed to flooding
during major flood events and if sea
levels rise. A Benefit-Cost Analysis
conducted by the city identified a
reduction in expected annual flood
damages to the community of between
50 percent and 98 percent as a result of
this project. In addition, according to
the city, the protection that this project
will provide has the potential to lower
flood insurance premiums for structures
in the neighborhood in the event of the
revision of FEMA’s area Flood
Insurance Study (FIS) and the effective
Base Flood Elevation.
Therefore, for the city’s Breezy Point
Flood Mitigation System only, the
Department is waiving 24 CFR
570.202(a)(1) to the extent necessary to
allow for the city’s Breezy Point Flood
Mitigation System to be classified as an
eligible housing rehabilitation and
preservation activity. Further, the
Department is waiving section 105(a)4
of the HCD Act to the extent necessary
to allow for the new construction
associated with this activity that would
otherwise be prohibited.
III. Catalog of Federal Domestic
Assistance
The Catalog of Federal Domestic
Assistance number for the disaster
recovery grants under this notice is
4.269.
IV. Finding of No Significant Impact
A Finding of No Significant Impact
(FONSI) with respect to the
environment has been made in
accordance with HUD regulations at 24
CFR part 50, which implement section
102(2)(C) of the National Environmental
Policy Act of 1969 (42 U.S.C.
4332(2)(C)). The FONSI is available for
public inspection between 8 a.m. and 5
p.m., weekdays, in the Regulations
Division, Office of General Counsel,
E:\FR\FM\25AUN1.SGM
25AUN1
Federal Register / Vol. 80, No. 164 / Tuesday, August 25, 2015 / Notices
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). Hearingor speech-impaired individuals may
access this number through TTY by
calling the Federal Relay Service at 800–
877–8339 (this is a toll-free number).
Dated: August 19, 2015.
Laura H. Hogshead,
Chief Operating Officer for Office of the
Secretary.
[FR Doc. 2015–21065 Filed 8–24–15; 8:45 am]
BILLING CODE 4210–67–P
DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT
[Docket No. FR–5831–N–41]
30-Day Notice of Proposed Information
Collection: Insurance Termination
Request for Multifamily Mortgage
Office of the Chief Information
Officer, HUD.
ACTION: Notice.
AGENCY:
HUD has submitted the
proposed information collection
requirement described below to the
Office of Management and Budget
(OMB) for review, in accordance with
the Paperwork Reduction Act. The
purpose of this notice is to allow for an
additional 30 days of public comment.
DATES: Comments Due Date: September
24, 2015.
ADDRESSES: Interested persons are
invited to submit comments regarding
this proposal. Comments should refer to
the proposal by name and/or OMB
Control Number and should be sent to:
HUD Desk Officer, Office of
Management and Budget, New
Executive Office Building, Washington,
DC 20503; fax: 202–395–5806. Email:
OIRA_Submission@omb.eop.gov.
FOR FURTHER INFORMATION CONTACT:
Colette Pollard, Reports Management
Officer, QDAM, Department of Housing
and Urban Development, 451 7th Street
SW., Washington, DC 20410; email
Colette Pollard at Colette Pollard@hud
or telephone 202–402–3400. This is not
a toll-free number. Persons with hearing
or speech impairments may access this
number through TTY by calling the tollfree Federal Relay Service at (800) 877–
8339.
Copies of available documents
submitted to OMB may be obtained
from Ms. Pollard.
asabaliauskas on DSK5VPTVN1PROD with NOTICES
SUMMARY:
VerDate Sep<11>2014
17:10 Aug 24, 2015
Jkt 235001
51593
This
notice informs the public that HUD is
seeking approval from OMB for the
information collection described in
Section A.
The Federal Register notice that
solicited public comment on the
information collection for a period of 60
days was published on June 30, 2015 at
80 FR 37282.
Dated: August 19, 2015.
Colette Pollard,
Department Reports Management Officer,
Office of the Chief Information Officer.
A. Overview of Information Collection
[Docket No. FR–5831–N–40]
SUPPLEMENTARY INFORMATION:
Title of Information Collection:
Insurance Termination Request for
Multifamily Mortgage.
OMB Approval Number: 2502–0416.
Type of Request: Revision of currently
approved collection.
Form Numbers: HUD–9807.
Description of the need for the
information and proposed use: The
information collection is used to notify
HUD that the mortgagor and mortgagee
mutually agree to terminate the HUD
multifamily mortgage insurance.
Respondents: Business or other forprofit.
Estimated Number of Respondents:
1891.
Estimated Number of Responses:
1891.
Frequency of Response: 1.
Average Hours per Response: 25.
Total Estimated Burdens: 473 hours.
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.
PO 00000
Frm 00063
Fmt 4703
Sfmt 4703
[FR Doc. 2015–20923 Filed 8–24–15; 8:45 am]
BILLING CODE 4210–67–P
DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT
30-Day Notice of Proposed Information
Collection: Section 3 Summary Report
for Economic Opportunities for Low
and Very Low Income Persons (Form
HUD 60002) and Section 3 Complaint
Register (Form HUD 958)
Office of the Chief Information
Officer, HUD.
ACTION: Notice.
AGENCY:
HUD has submitted the
proposed information collection
requirement described below to the
Office of Management and Budget
(OMB) for review, in accordance with
the Paperwork Reduction Act. The
purpose of this notice is to allow for an
additional 30 days of public comment.
DATES: Comments Due Date: September
24, 2015.
ADDRESSES: Interested persons are
invited to submit comments regarding
this proposal. Comments should refer to
the proposal by name and/or OMB
Control Number and should be sent to:
HUD Desk Officer, Office of
Management and Budget, New
Executive Office Building, Washington,
DC 20503; fax: 202–395–5806. Email:
OIRA_Submission@omb.eop.gov.
FOR FURTHER INFORMATION CONTACT:
Colette Pollard, Reports Management
Officer, QDAM, Department of Housing
and Urban Development, 451 7th Street
SW., Washington, DC 20410; email
Colette Pollard at Colette.Pollard@
hud.gov or telephone 202–402–3400.
This is not a toll-free number. Persons
with hearing or speech impairments
may access this number through TTY by
calling the toll-free Federal Relay
Service at (800) 877–8339. Copies of
available documents submitted to OMB
may be obtained from Ms. Pollard.
SUPPLEMENTARY INFORMATION: This
notice informs the public that HUD is
seeking approval from OMB for the
information collection described in
Section A.
The Federal Register notice that
solicited public comment on the
information collection for a period of 60
days was published on June 17, 2015 at
80 FR 34687.
SUMMARY:
E:\FR\FM\25AUN1.SGM
25AUN1
Agencies
[Federal Register Volume 80, Number 164 (Tuesday, August 25, 2015)]
[Notices]
[Pages 51589-51593]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-21065]
-----------------------------------------------------------------------
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-5696-N-16]
Additional Clarifying Guidance, Waivers, and Alternative
Requirements for Grantees in Receipt of Community Development Block
Grant Disaster Recovery Funds Under the Disaster Relief Appropriations
Act, 2013
AGENCY: Office of the Assistant Secretary for Community Planning and
Development, HUD.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: This notice provides clarifying guidance, waivers, and
alternative requirements for Community Development Block Grant Disaster
Recovery grantees in receipt of funds under the Disaster Relief
Appropriations Act, 2013 (the Appropriations Act). This notice modifies
requirements for infrastructure projects funded by grantees receiving
an allocation for Hurricane Sandy. This notice also provides waivers
and alternative requirements for the State of New Jersey's Energy
Resilience Bank and LMI Homeowner Rebuilding Program, and for New York
City's infrastructure projects and the Breezy Point Flood Mitigation
System.
DATES: Effective Date: August 31, 2015.
FOR FURTHER INFORMATION CONTACT: Stanley Gimont, Director, Office of
Block Grant Assistance, Department of Housing and Urban Development,
451 7th Street SW., Room 7286, Washington, DC 20410, telephone number
202-708-3587. Persons with hearing or speech impairments may access
this number via TTY by calling the Federal Relay Service at 800-877-
8339. Facsimile inquiries may be sent to Mr. Gimont at 202-401-2044.
(Except for the ``800'' number, these telephone numbers are not toll-
free.) Email inquiries may be sent to disaster_recovery@hud.gov.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Background
II. Applicable Rules, Statutes, Waivers, and Alternative
Requirements
III. Catalog of Federal Domestic Assistance
IV. Finding of No Significant Impact
I. Background
The Appropriations Act (Pub. L. 113-2, approved January 29, 2013)
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 the amount of funding for CDBG-
DR grants under the Appropriations Act to $15.18 billion. To date, a
total of $15.18 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, $655 million in response to 2013 disasters,
and $1 billion set aside for the National Disaster Resilience
Competition.
This notice specifies a waiver and alternative requirements and
modifies requirements for Hurricane Sandy grantees in receipt of
allocations under the Appropriations Act, which are described within
the Federal Register notices published by the Department on March 5,
2013 (78 FR 14329), April 19, 2013 (78 FR 23578), August 2, 2013 (78 FR
46999), November 18, 2013 (78 FR 69104), March 27, 2014 (79 FR 17173),
July 11, 2014 (79 FR 40133), October 16, 2014 (79 FR 62182), April 2,
2015 (80 FR 17772), and May 11, 2015 (80 FR 26942), 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.\1\
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\1\ Links to the prior notices, the text of the Appropriations
Act, and additional guidance prepared by the Department for CDBG-DR
grants, are available on the HUD Exchange Web site: https://www.hudexchange.info/cdbg-dr/cdbg-dr-laws-regulations-and-federal-register-notices/.
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II. Applicable Rules, Statutes, Waivers, and Alternative Requirements
The Appropriations Act authorizes the Secretary to waive, or
specify alternative requirements for, any provision of any statute or
regulation that the Secretary administers in connection with HUD's
obligation or use by the recipient of these funds (except for
requirements related to fair housing, nondiscrimination, labor
standards, and the environment). Waivers and alternative requirements
are based upon a determination by the Secretary that good cause exists
and that the waiver or alternative requirement is not inconsistent with
the overall purposes of Title I of the Housing and Community
Development Act of 1974 (42 U.S.C. 5301 et seq.) (HCD Act). Regulatory
waiver authority is also provided by 24 CFR 5.110, 91.600, and 570.5.
For the waivers and alternative requirements described in this
notice, the Secretary has determined that good cause exists and that
the waivers and alternative requirements are not inconsistent with the
overall purpose of the HCD Act. Grantees may request waivers and
alternative requirements from the Department as needed to address
specific needs related to their recovery activities. Under the
requirements of the Appropriations Act, waivers must be published in
the Federal Register no later than 5 days before the effective date of
such waiver.
1. Exemptions from Infrastructure Program and Project
Requirements--Obligated Assistance from Federal Grant Program Projects
and Completed Projects--(Hurricane Sandy Grantees only). The March 27,
2014, Federal Register notice, at paragraph II.1.b., Obligated Public
Assistance Grant Program Projects (78 FR 17174), provides an exemption
from certain infrastructure requirements described in paragraph 2 of
the Federal Register notice published November 18, 2013, at 78 FR
69107, for those projects to which the Federal Emergency Management
Agency (FEMA) had obligated Public Assistance (PA) funds on or before
November 25, 2013. After consideration of the factors discussed below,
HUD is now modifying this exemption. As of the effective date of this
notice, the infrastructure requirements described in paragraph 2 at 78
FR 69107 will not apply to an infrastructure project carried out by a
Hurricane Sandy CDBG-DR grantee if FEMA or any other Federal agency has
obligated funds to that infrastructure project on or before January 15,
2014, or if the infrastructure project was completed on or before
January 15, 2014.
Oftentimes CDBG-DR grantees are awarded Federal recovery funds for
which CDBG-DR can be used as the source for the required non-Federal
local match of funds. These Federal
[[Page 51590]]
sources may include, but are not limited to, the Environmental
Protection Agency, the Federal Highway Administration, the Federal
Transportation Administration, the Army Corps of Engineers, and the
FEMA Public Assistance and Hazard Mitigation grant programs. Such grant
assistance can be used for a variety of activities and often requires
grantees to contribute a non-Federal share of funds to a project. If
the project is an eligible CDBG-DR activity, CDBG-DR funds may be used
for the payment of the non-Federal share required in connection with a
Federal grant-in-aid program if permitted by the Federal awarding
agency that required the match (see 24 CFR 570.201(g) and 42 U.S.C.
5305(a)(9)) .
Prior to HUD's November 18, 2013, notice, many grantees had
coordinated with Federal agencies to secure funding for critical
infrastructure projects, but only upon establishment of the Sandy
Recovery Office and the launch of the Regional Coordination Working
Group (now known as the Sandy Regional Infrastructure Resilience
Coordination Group or SRIRC Group), in January 2014, would grantees
have been able to comply with Federal coordination requirements
outlined in the November 18, 2013 notice. In addition, grantees may
have completed infrastructure projects before the establishment of the
requirements described in that notice at paragraph 2 at 78 FR 69107.
Accordingly, the clarification described in the March 27, 2014,
notice at paragraph II.1.b. is amended to read, ``Infrastructure
requirements described in paragraph 2 at 78 FR 69107 do not apply to
any infrastructure project where funds have been obligated by a Federal
agency under any federal grant-in-aid program on or before January 15,
2014, or where a project funded through any means was completed on or
before January 15, 2014.''
2. Waiver of requirement for assistance to businesses, including
privately-owned utilities for Energy Resilience Bank activities (State
of New Jersey only)--The Federal Register notice published on March 5,
2013, instituted an alternative requirement to various provisions at 42
U.S.C. 5305(a) and restricts the assistance provided to for-profit
businesses to only those businesses that meet the definition of a small
business as described by the Small Business Administration (SBA) at 13
CFR part 121. That notice also prohibited CDBG-DR grantees in receipt
of funds under the Appropriations Act from providing funds to
privatelyowned utilities (paragraph VI.D.41., Alternative requirement
for assistance to businesses, including privately-owned utilities, at
78 FR 14347). The State of New Jersey has requested a waiver of the
prohibition on assistance to businesses that do not meet the SBA
definition of a small business and the prohibition on assistance to
privately-owned utilities for its planned $200 million CDBG-DR
investment in the New Jersey Energy Resilience Bank (ERB).
The Department approved the ERB in the State's disaster recovery
Action Plan for the second allocation of CDBG-DR funds under the
Appropriations Act on May 30, 2014.\2\ The State has committed to using
the ERB to harden critical facilities to ensure they remain operational
during storm events through the use of distributed energy generation,
such as combined heat and power, fuel cells, and off-grid solar
inverters with battery storage. Eligible technologies must be
constructed to operate independently from the electric utility grid and
be able to start up without a direct connection to the electric grid
when the grid is down due to extreme weather events. The ERB will focus
on funding critical facilities in sectors that were impacted by
Hurricane Sandy, including water and wastewater treatment plants,
hospitals and long-term care facilities, colleges and universities,
state and county correctional facilities, HUD-assisted multifamily
housing units, community shelters, and transportation and transit
infrastructure.
---------------------------------------------------------------------------
\2\ https://www.renewjerseystronger.org/plans-policies-reports/#cdbg.
---------------------------------------------------------------------------
The ERB aligns with the Hurricane Sandy Rebuilding Strategy's (the
Strategy) goal of ``Ensuring a Regionally Coordinated, Resilient
Approach to Infrastructure Investment,'' and the Strategy specifically
references the ERB as a program developed by the State with assistance
from the Hurricane Sandy Rebuilding Task Force. The Strategy notes
``most energy infrastructure is privately-owned and operated, which
means that resilience investment will come about only through close
cooperation between the Federal and State governments and the private
sector.''
Many of the facilities expected to receive funding through the
State's ERB provide critical public services but are owned by a mix of
public and for-profit entities, or are solely privately owned, and
cannot be assisted under the current prohibitions imposed by the March
5, 2013, notice. At least 20 of the 108 potentially eligible hospital
facilities are operated as for-profit entities and do not meet the
small business criteria. Moreover, 438 of the State's 617 long-term
care facilities and 95 of 170 institutions of higher learning are
operated as for-profit entities and do not meet the small business
criteria. The State also anticipates funding private utilities, such as
private water districts, which serve the needs of their regional
populations in the same manner as public utilities.
These facilities often serve communities most impacted by Hurricane
Sandy, having high concentrations of low- and moderate-income (LMI)
persons, and they provide essential services to vulnerable populations
that are comparable to their public and non-profit counterparts.
Without a waiver of the restrictions on assistance to certain types of
businesses, many of these critical facilities would be ineligible for
funding, leaving large gaps in the State's regional distributed energy
networks and excluding significant populations (including LMI persons)
from benefiting from the State's resiliency measures.
While not every critical facility will serve predominantly LMI
populations, vulnerable residents typically rely more on community-
based facilities and services, especially in disaster scenarios. To the
extent that the ERB will be funding such facilities and services, LMI
populations would benefit especially from the increased resiliency of
critical infrastructure during the next storm event. Accordingly, as a
condition of providing this waiver, HUD is requiring the State to
develop a scoring methodology for the selection of ERB projects that
provides preferential treatment to LMI areas and populations. The LMI
benefit scoring methodology is to be designed to ensure continued
progress by the State in meeting its overall CDBG-DR grant LMI benefit
requirement and to ensure that, in financing ERB projects, the State
places a significant priority on serving LMI areas and populations.
In its request to the Department, the State acknowledged that the
ERB is not a substitute for private investment, but is instead designed
to leverage additional private investment in resilient energy systems.
The State has developed ERB financial products using substantial market
research and analysis to ensure that products are attractive to
consumers in the market, while also generating proceeds for the ERB.
The State is also developing assistance packages that consist of
variable contributions of loans, forgivable loans, and grants, with
each product requiring varying levels of equity investments. Market
research and analysis specific to each business sector and uniform
[[Page 51591]]
underwriting standards will drive the precise financing terms and
equity contributions of participating businesses to ensure that
assistance is based on actual identified need. For example, the water/
wastewater product that the ERB will offer requires for-profit
applicants to provide an equity contribution of 10 percent of total
project cost, while there is no equity contribution for public or non-
profit facilities. Accordingly, HUD is requiring the State to establish
policies and procedures to ensure that the CDBG-DR funds invested in
ERB projects reflect the actual identified financing needs of the
assisted businesses, while also ensuring a robust return to the ERB to
finance future investments.
Based on the critical role that the ERB will fulfill in ensuring
long-term resiliency within Sandy-impacted New Jersey communities and
for only those activities funded by the ERB as described in the State's
approved disaster recovery Action Plan Amendment, the Department is
waiving the alternative requirement in the March 5, 2013, notice and
subsequent notices that prohibit funding businesses that do not meet
the SBA definition of small business and funding of private utilities,
subject to the following alternative requirements. As a condition of
this waiver the State must:
Provide preferential treatment to LMI areas and
populations in its ERB scoring methodology;
Require an equity contribution for for-profit critical
facilities, the amount of which is to be based on uniform underwriting
standards developed by the State and uniformly applied to all such
facilities, to ensure that the level of assistance provided to these
facilities addresses only the actual identified needs of the project;
and
Establish a mix of financing terms (loan, forgivable loan,
and/or grant) for each assisted for-profit facility, based on the
business's financial capacity, in order to ensure that assistance is
based on actual identified need, in order to achieve a targeted use of
funds and to safeguard against the potential over-subsidization of for-
profit facilities.
This waiver allows the State to add new potential beneficiaries to
the activity described within its amended Action Plan for disaster
recovery. This change will constitute a substantial amendment as
described in the March 5, 2013, notice (78 FR 14329) at paragraph
VI.A.3.a. Accordingly, the State must submit a Substantial Action Plan
Amendment revising its description of the ERB to include affected
entities, and this amendment will be subject to the citizen
participation requirements of the March 5, 2013, notice at VI.A.3,
which requires no less than 7 calendar days to solicit public comment.
3. Extension of Urgent Need Certification Waiver for ERB activities
(State of New Jersey only)--The March 5, 2013, Federal Register notice
waives the certification requirements for classifying activities as
meeting the CDBG urgent need national objective until ``two years after
the date HUD obligates funds to a grantee for the activity'' (paragraph
VI.A.1.f, Use of the urgent need national objective, at 78 FR 14336)
and establishes an alternative requirement for grantees. That
requirement provides that during the 2-year period, grantees must
document how all programs and/or activities funded under the urgent
need national objective category respond to a disaster-related impact.
In its implementation of the Appropriations Act, HUD established the 2-
year limit on the use of this alternative certification requirement in
response to grantees' historical use of this urgent need alternative
certification requirement in previous disasters. The State of New
Jersey has requested an extension of the urgent need national objective
alternative certification requirement for the program income generated
from its CDBG-DR grant and used to fund activities through its ERB
program.
HUD must obligate all funds under the Appropriations Act by
September 30, 2017. Because grantees are required to expend program
funds within 2-years following HUD's obligation of the funds, CDBG-DR
funds used to finance ERB projects will automatically qualify under the
2-year alternative urgent need certification requirement. The State,
however, intends to apply program income generated through ERB projects
to additional ERB projects and may also apply program income from its
other CDBG-DR programs to the ERB, beyond the 2-year period of the
alternative urgent need certification requirement. The State has
requested authority to use the alternative urgent need certification
requirement; for the life of the CDBG-DR grant, for program income
applied to the ERB. Without this extension, funds critical to the
performance of the ERB could not be classified as meeting the urgent
need national objective and program participants may be unable to raise
necessary private capital for critical energy resilience projects.
Providing this flexibility for ERB-financed projects will allow the
projects to be implemented following the obligation of all CDBG-DR
funds to the ERB and until the State has closed out its CDBG-DR Sandy
recovery grant.
Therefore, until grant closeout and for only program income used to
fund ERB activities, HUD is permitting the State of New Jersey, when
the use of the urgent need national objective is warranted, to document
the use of the urgent need national objective by applying the waiver
and alternative requirement regarding urgent need at paragraph
VI.A.1.f. of the March 5, 2013, notice (78 FR 14336). The program
income requirements described in paragraphs A.2 and A.17 of section VI
of the March 5, 2013, notice (78 FR 14336) will continue to apply.
4. Extension of 1-year time limitation on reimbursable pre-award
expenses (State of New Jersey only)--Grantees in receipt of funds under
the Appropriations Act are subject to the limitations on the
reimbursement of pre-award disaster recovery expenses as provided for
in CPD Notice 2014-017 (``Guidance for Charging Pre-Award Costs of
Homeowners, Businesses, and Other Qualifying Entities to CDBG Disaster
Recovery Grants'') (the CPD Notice),\3\ as may be amended, and the
November 18, 2014, notice at section VI, paragraph 5, which requires
grantees to comply with the provisions of the CPD Notice. The CPD
Notice states that grantees may ``charge to CDBG-DR grants the eligible
pre-award and pre-application costs of individuals and private entities
related to single- and multi-family residential structures and
nonresidential structures, only if the person or private entity
incurred the expenses within 1-year after the date of the disaster and
before the date on which the person or entity applies for CDBG-DR
assistance.'' The State of New Jersey has requested an extension of
this 1-year limitation for applicants to its LMI Homeowners Rebuilding
Program in order to provide reimbursement for rehabilitation and
reconstruction expenses incurred by LMI homeowners who incurred such
expenses after this time limit and before applying to the program for
Federal assistance.
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\3\ https://www.hudexchange.info/resource/4139/notice-cpd14017-
guidance-for-charging-preaward-costs--to-cdbg-disaster-recovery-
grants.
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The State of New Jersey implemented the LMI Homeowners Rebuilding
Program pursuant to a VCA with the Department, which was executed on
May 30, 2014. The VCA was established in response to a complaint filed
by civil rights and fair housing organizations regarding the State's
administration of its CDBG-DR funded recovery programs. The VCA
required the State to implement the LMI Homeowners Rebuilding Program
more than 1-year after the 1-year, post-disaster time
[[Page 51592]]
limitation established in the CPD Notice. As a result, any
rehabilitation expenses incurred by applicants to the program after the
1-year date would be ineligible for reimbursement. Without an extension
of the 1-year limitation, the State would be limited in its ability to
comply with the requirements of the VCA and to provide necessary
housing assistance to LMI homeowners.
Accordingly, based on the critical role of the LMI Homeowner
Rebuilding Program in providing housing recovery assistance to LMI
residents and for only those applicants assisted through the State's
LMI Homeowners Rebuilding Program, the Department is extending the date
by which grantees may reimburse expenses incurred by applicants to the
date of application to the LMI Homeowners Rebuilding Program, provided
such expenses would otherwise be eligible expenses.
5. Waiver of Major Infrastructure Project (Covered Project)
requirements for projects in multiple counties (New York City only)--
The Federal Register notice published November 18, 2013, describes
additional infrastructure requirements, including requirements placed
on Covered Projects (paragraph VI.2.g., Additional Requirements for
Major Infrastructure Projects, at 78 FR 69107). HUD approval is
required for each major infrastructure project with such projects
defined as having a total cost of $50 million or more (including at
least $10 million of CDBG-DR funds), or projects that benefit multiple
counties. The Federal Register notice published on March 27, 2014,
clarified that ``benefits multiple counties'' means that the project is
physically located in more than one county (paragraph II.1.a.,
Definition of ``Benefits Multiple Counties,'' at 78 FR 17174). New York
City has requested exemption from the major infrastructure requirements
for projects located in multiple counties and exclusively within the
city, where they otherwise would not meet the definition of a major
infrastructure project.
New York City is composed of five counties (which are coterminous
with its five boroughs) that are subordinate to the municipal
government, and the city's authority precludes the need for due
consideration of the counties' response. Requiring the city to adhere
to the Department's requirements for major infrastructure projects in
such cases would impose additional and unnecessary standards for
relatively small projects that do not warrant the level of scrutiny
triggered by the requirements. Accordingly, for purposes of identifying
major infrastructure projects that are held to the requirements of the
notice published November 18, 2013, and any subsequent notice that
includes provisions for major infrastructure projects, HUD is providing
New York City a waiver of the major infrastructure identification
criteria to exclude projects located in multiple counties that are
located exclusively within the city, only where the project would not
otherwise meet the definition of a major infrastructure project by
exceeding the total cost thresholds described above.
6. Waiver of requirements for housing rehabilitation activities for
Breezy Point Flood Mitigation System (New York City only)--New York
City has requested a waiver of 24 CFR 570.202(a)(1) to the extent
necessary to permit new construction of a flood mitigation system at
Breezy Point, a privately held cooperative in Queens, by classifying
the entire system as an improvement for residential purposes.
Under the CDBG Entitlement Program regulations, which are
applicable to units of local government, New York City may use CDBG-DR
funds to finance the rehabilitation of privately owned buildings and
improvements for residential purposes, including grounds improvements
that are incidental to and necessary for housing rehabilitation. This
housing rehabilitation provision does not permit the city to construct
a new flood mitigation system that improves the grounds of a privately
held cooperative that benefits an entire community. The community's
unique status as a cooperative on a single property lot also precludes
the city from funding the activity as an eligible public facility and
improvement under the CDBG regulations at 24 CFR 570.201(c).
The flood mitigation system proposed for Breezy Point will provide
critical protection to CDBG-DR home rehabilitation investments as well
as investments from other Federal partners, and it will improve
waterfronts damaged by Hurricane Sandy. The city has determined that
the system is necessary to permit long-term disaster recovery from
Hurricane Sandy for the Breezy Point community. Thus, the city has
requested the ability to construct the project as part of its CDBG-DR
housing rehabilitation and reconstruction efforts in the community.
The city is seeking $58.2 million to construct this system from
FEMA's Hazard Mitigation Grant Program (HMGP), which requires a 25-
percent, local match or $14.55 million that may potentially be sourced
from the city's CDBG-DR grant. The community provides year-round
residency to 4,300 people and consists of 2,400 homes, nearly all of
which were damaged during Hurricane Sandy. The city and community, with
State and Federal partners, has worked to rehabilitate homes and
reconstruct the community. Federal investments in housing
rehabilitation total approximately $450 million, including National
Flood Insurance Program policy payments, SBA loans, FEMA Individual
Assistance grants, the city's Rapid Repair grants, and CDBG-DR grants
through the city's NYC Build it Back Program. The NYC Build it Back
Program alone is projected to provide $200 million in housing
rehabilitation assistance to households in the area, including $80
million in assistance to approximately 400 low- or moderate-income
households. Without a provision to allow this flood mitigation
improvement, Federal investments as well as numerous private and public
interests would be exposed to flooding during major flood events and if
sea levels rise. A Benefit-Cost Analysis conducted by the city
identified a reduction in expected annual flood damages to the
community of between 50 percent and 98 percent as a result of this
project. In addition, according to the city, the protection that this
project will provide has the potential to lower flood insurance
premiums for structures in the neighborhood in the event of the
revision of FEMA's area Flood Insurance Study (FIS) and the effective
Base Flood Elevation.
Therefore, for the city's Breezy Point Flood Mitigation System
only, the Department is waiving 24 CFR 570.202(a)(1) to the extent
necessary to allow for the city's Breezy Point Flood Mitigation System
to be classified as an eligible housing rehabilitation and preservation
activity. Further, the Department is waiving section 105(a)4 of the HCD
Act to the extent necessary to allow for the new construction
associated with this activity that would otherwise be prohibited.
III. Catalog of Federal Domestic Assistance
The Catalog of Federal Domestic Assistance number for the disaster
recovery grants under this notice is 4.269.
IV. Finding of No Significant Impact
A Finding of No Significant Impact (FONSI) with respect to the
environment has been made in accordance with HUD regulations at 24 CFR
part 50, which implement section 102(2)(C) of the National
Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)). The FONSI is
available for public inspection between 8 a.m. and 5 p.m., weekdays, in
the Regulations Division, Office of General Counsel,
[[Page 51593]]
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 Federal
Relay Service at 800-877-8339 (this is a toll-free number).
Dated: August 19, 2015.
Laura H. Hogshead,
Chief Operating Officer for Office of the Secretary.
[FR Doc. 2015-21065 Filed 8-24-15; 8:45 am]
BILLING CODE 4210-67-P