Allocations, Common Application, Waivers, and Alternative Requirements for Community Development Block Grant Disaster Recovery Grantees (CDBG Mitigation), 561-569 [2020-29261]

Download as PDF Federal Register / Vol. 86, No. 3 / Wednesday, January 6, 2021 / Notices DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT [Docket No. FR–6239–N–01] Allocations, Common Application, Waivers, and Alternative Requirements for Community Development Block Grant Disaster Recovery Grantees (CDBG Mitigation) Office of the Assistant Secretary for Community Planning and Development, HUD. ACTION: Notice. AGENCY: This notice allocates over $186 million in Community Development Block Grant Mitigation (CDBG–MIT) funds to grantees recovering from qualifying 2018 disasters. Funds allocated by this notice were made available by the Additional Supplemental Appropriations for Disaster Relief Act, 2019. This notice describes grant requirements and procedures, including waivers and alternative requirements, applicable to CDBG–MIT funds only. Funds allocated pursuant to this notice shall be subject only to the provisions of this notice and the applicable prior notices, unless otherwise provided herein. This notice also clarifies the applicability of certain previous waivers and alternative requirements provided for CDBG–MIT grantees. DATES: Applicability Date: January 11, 2021. FOR FURTHER INFORMATION CONTACT: Jessie Handforth Kome, Director, Office of Block Grant Assistance, Department of Housing and Urban Development, 451 7th Street SW, Room 7282, Washington, DC 20410, telephone number 202–708–3587. Persons with hearing or speech impairments may access this number via TTY by calling the Federal Information Relay Service at 800–877–8339. Facsimile inquiries may be sent to Ms. Kome at 202–708–0033. (Except for the ‘‘800’’ number, these telephone numbers are not toll-free). Email inquiries may be sent to disaster_ recovery@hud.gov. SUPPLEMENTARY INFORMATION: SUMMARY: jbell on DSKJLSW7X2PROD with NOTICES Table of Contents I. Allocations II. Use of CDBG–MIT Funds A. Action Plan, Substantial Amendments, and Amendments for Covered Projects B. Most Impacted and Distressed Areas III. Overview of Grant Process A. Action Plan Process for New CDBG–MIT Grantees Under the Appropriations Act (Pub. L. 116–20) B. Substantial Action Plan Amendment Process for Existing Grantees Under Prior Appropriations (Pub. L. 115–123) VerDate Sep<11>2014 19:08 Jan 05, 2021 Jkt 253001 IV. Applicable Rules, Statutes, Waivers, and Alternative Requirements V. Duration of Funding VI. Catalog of Federal Domestic Assistance VII. Finding of No Significant Impact I. Allocations The Additional Supplemental Appropriations for Disaster Relief Act, 2019 (Pub. L. 116–20, approved June 6, 2019) (Appropriations Act) made $2,431,000,000 in Community Development Block Grant disaster recovery (CDBG–DR) funds available for major disasters occurring in 2017, 2018, or 2019, of which $431,000,000 was for grantees that received funds in response to disasters occurring in 2017. On January 27, 2020, HUD allocated $2,153,928,000 in CDBG–DR funds in accordance with the Appropriations Act, to address unmet disaster recovery needs through activities authorized under title I of the Housing and Community Development Act of 1974 (42 U.S.C. 5301 et seq.) (HCDA) related to disaster relief, long term recovery, restoration of infrastructure and housing, economic revitalization, and mitigation in the ‘‘most impacted and distressed’’ (MID) areas resulting from a qualifying major disaster in 2018 and 2019, which included the $431,000,000 for unmet infrastructure needs for 2017 disasters. In a notice published concurrently with this notice, HUD has allocated an additional $85,291,000 of CDBG–DR funds from the Appropriations Act for remaining unmet needs for disasters occurring in 2018 and 2019. Of amounts made available for 2018 and 2019 disasters, the Appropriations Act requires that HUD first allocate funds to address unmet disaster recovery needs for 2018 and 2019 disasters. Any funds remaining after addressing unmet disaster recovery needs for 2018 and 2019 disasters must be allocated for mitigation activities in the MID areas resulting from a major disaster that occurred in 2018, in an amount proportional to the amount of funds each grantee received from all CDBG–DR allocations for 2018 disasters (including allocations of funds made available by Pub. L. 115–254). HUD has determined that its CDBG– DR allocations pursuant to the Appropriations Act are sufficient to address unmet disaster recovery needs in MID areas arising from 2018 and 2019 disasters. Therefore, this notice allocates the remaining $186,781,000 in funds made available in the Appropriations Act as CDBG–MIT funds to grantees recovering from qualifying 2018 disasters. HUD described the grant requirements and procedures, including waivers and PO 00000 Frm 00062 Fmt 4703 Sfmt 4703 561 alternative requirements applicable to CDBG–MIT funds, for CDBG–MIT grantees in the following Federal Register notices (collectively, the ‘‘Prior Notices’’): • 84 FR 45838, published August 30, 2019 (the ‘‘Main CDBG–MIT Notice’’); and • 85 FR 60821, published September 28, 2020 (the ‘‘2020 Omni Notice’’). CDBG–MIT funds allocated in the Prior Notices are made available by the Further Additional Supplemental Appropriations for Disaster Relief Requirements Act, 2018 (Pub. L. 115– 123). Pursuant to that appropriation, HUD allocated $6.875 billion in CDBG– MIT funds in the Main CDBG–MIT Notice to grantees recovering from a qualifying 2015, 2016, and 2017 disaster for mitigation activities. In the Main CDBG–MIT Notice, HUD recognized that CDBG–MIT funds are to be used for distinctly different purposes than CDBG–DR funds. In that notice, HUD defined ‘‘mitigation activities’’ to mean those activities that increase resilience to disasters and reduce or eliminate the long-term risk of loss of life, injury, damage to and loss of property, and suffering and hardship, by lessening the impact of future disasters. The nature of programs and projects that are likely to be funded require all CDBG–MIT grantees and their subrecipients to strengthen their program management capacity, financial management, and internal controls. The Main CDBG–MIT Notice also states the Department’s intent to establish special grant conditions for individual CDBG– MIT grants based upon the risks posed by the grantee, including risks related to the grantee’s capacity to carry out the specific programs and projects proposed in its action plan. These conditions are designed to provide additional assurances that oversight of CDBG–MIT funds addresses grantee-specific risks, such as the potential for waste, fraud, and abuse, or the potential failure to effectively operate and maintain mitigation projects. This notice imposes the requirements of the Prior Notices as amended by provisions in this notice or by subsequent notices, to the CDBG–MIT grants allocated by this notice.1 The requirements of the Appropriations Act apply in lieu of the requirements of Public Law 115–123, which is referenced in the Prior Notices. The amount of CDBG–MIT funding grantees must expend to mitigate risks within the HUD-identified MID areas is listed in 1 This notice is only applicable to grantees receiving a CDBG–MIT grant under Public Law 116–20 in response to a 2018 disaster. E:\FR\FM\06JAN1.SGM 06JAN1 562 Federal Register / Vol. 86, No. 3 / Wednesday, January 6, 2021 / Notices Table 1 (below). In accordance with the Appropriations Act, HUD’s allocation of CDBG–MIT funds in Table 1 is based on each grantee’s proportional share of total CDBG–DR funds allocated for all eligible disasters in 2018. Table 2 contains the total mitigation allocations for 2015 through 2018 disasters under Public Laws 115–123 and 116–20. TABLE 1—TOTAL ALLOCATION FOR MITIGATION ACTIVITIES UNDER PUBLIC LAW 116–20 Total allocation for CDBG–MIT for 2018 disasters under Public Law 116–20 Minimum amount that must be expended in the HUD-identified ‘‘most impacted and distressed’’ areas listed herein Disaster No. Grantee 4413 ................... 4357 ................... 4407; 4382 ......... 4399 ................... State of Alaska .......... American Samoa ....... State of California ..... State of Florida .......... $2,288,000 1,470,000 64,907,000 46,926,000 $1,144,000 1,470,000 32,453,500 23,463,000 4400 4366 4365 4393 ................... ................... ................... ................... State of Georgia ........ Hawaii County, HI ..... Kauai County, HI ....... State of North Carolina. 2,669,000 6,862,000 585,000 34,619,000 1,334,500 6,862,000 292,500 17,309,500 4396 & 4404 ....... 16,225,000 8,112,500 4,598,000 2,299,000 Horry and Marion Counties; 29536 (Dillion) Zip Code. 4377 ................... 4402 ................... The Commonwealth of the Northern Mariana Islands. State of South Carolina. State of Texas ........... State of Wisconsin .... Anchorage, Borough. All components of American Samoa. Butte, Lake, Los Angeles, and Shasta Counties. Bay, Calhoun, Gulf and Jackson Counties; 32321 (Liberty), 32327 (Wakulla), 32328 (Franklin), 32346 (Wakulla and Franklin), 32351 (Gadsden), and 32428 (Washington) Zip Codes. 39845 (Seminole) Zip Code. Hawaii County. 96714 (Kauai) Zip Code. Brunswick, Carteret, Columbus, Craven, Duplin, Jones, New Hanover, Onslow, Plender, and Robeson Counties; 28352 (Scotland), 28390 (Cumberland), 28433 (Bladen), and 28571 (Pamlico) Zip Codes. Saipan and Tinian Municipalities. 4,652,000 980,000 2,326,000 490,000 Hidalgo County. 53560 (Dane) Zip Code. Total ............ .................................... 186,781,000 97,556,500 4394 ................... HUD-identified ‘‘most impacted and distressed’’ areas * This table is intended to reflect 2018 CDBG–MIT awards. To view previous CDBG–MIT grantees, see Table 2. TABLE 2—TOTAL ALLOCATIONS FOR MITIGATION ACTIVITIES FOR 2015 THROUGH 2018 DISASTERS UNDER PUBLIC LAWS 115–123 AND 116–20 Disasters 2015, 2016, and 2017 disasters 2015, 2016, and 2017 disasters 2015, 2016, and 2017 disasters Appropriations Act ................................ Date of Enactment ............................... Date of Applicable Federal Register Notice. Federal Register Notice Reference Number. Public Law 115–123 ... February 09, 2018 ...... August 30, 2019 ......... Public Law 115–123 ... February 09, 2018 ...... September 10, 2019 ... Public Law 115–123 ... February 09, 2018 ...... January 27, 2020. 85 FR 45838 .............. 84 FR 47528 .............. 85 FR 4676. 2018 disasters Public Law 116–20. June 06, 2019. jbell on DSKJLSW7X2PROD with NOTICES Mitigation grantees Totals State of Alaska ..................................... American Samoa .................................. State of California ................................ State of Florida ..................................... State of Georgia ................................... Hawaii County, HI ................................ Kauai County, HI .................................. State of Louisiana ................................ State of Missouri .................................. State of North Carolina ........................ State of South Carolina ........................ Columbia, SC ....................................... Lexington County, SC (Urban County) Richland County, SC (Urban County) .. State of Texas ...................................... Houston, TX ......................................... San Marcos, TX ................................... The Commonwealth of the Northern Mariana Islands. The Commonwealth of Puerto Rico ..... State of West Virginia .......................... State of Wisconsin ............................... U.S. Virgin Islands ............................... $0 0 88,219,000 633,485,000 26,961,000 0 0 1,213,917,000 41,592,000 168,067,000 157,590,000 18,585,000 15,185,000 21,864,000 4,297,189,000 61,884,000 24,012,000 0 $0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 $0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 $2,288,000 1,470,000 64,907,000 46,926,000 2,669,000 6,862,000 585,000 0 0 34,619,000 4,598,000 0 0 0 4,652,000 0 0 16,225,000 $2,288,000 1,470,000 153,126,000 680,411,000 29,630,000 6,862,000 585,000 1,213,917,000 41,592,000 202,686,000 162,188,000 18,585,000 15,185,000 21,864,000 4,301,841,000 61,884,000 24,012,000 16,225,000 0 106,494,000 0 0 0 0 0 774,188,000 8,285,284,000 0 0 0 0 0 980,000 0 8,285,284,000 106,494,000 980,000 774,188,000 Totals ............................................ 6,875,044,000 774,188,000 8,285,284,000 186,781,000 16,121,297,000 II. Use of CDBG–MIT Funds Funds allocated under this notice are subject to the requirements of the Prior VerDate Sep<11>2014 19:08 Jan 05, 2021 Jkt 253001 Notices, as amended by this notice or subsequent notices. This notice outlines additional requirements imposed by the PO 00000 Frm 00063 Fmt 4703 Sfmt 4703 Appropriations Act that apply to funds allocated under this notice. E:\FR\FM\06JAN1.SGM 06JAN1 Federal Register / Vol. 86, No. 3 / Wednesday, January 6, 2021 / Notices jbell on DSKJLSW7X2PROD with NOTICES HUD recognizes that grantees receiving an allocation of CDBG–MIT funds of less than $5,000,000 may realize meaningful mitigation outcomes and minimize associated administrative costs by using these funds for a limited number of targeted mitigation activities and projects. HUD will provide technical assistance, when appropriate, for grantees receiving an allocation of less than $5 million in CDBG–MIT funds and who adopt this targeted approach. Like all uses of CDBG–MIT funds, use of funds for a targeted number of activities must mitigate specific current and future risks identified in the grantee’s Mitigation Needs Assessment and benefit MID areas. All grantees should also maximize the impact of available funds by encouraging leverage, private-public partnerships, and coordination with other Federal programs. II.A. Action Plan, Substantial Amendments, and Amendments for Covered Projects Action plan. Before the Secretary obligates CDBG–MIT funds to a grantee, the Appropriations Act requires the grantee to submit a plan to HUD for approval detailing the proposed use of all funds. The plan must include the required elements of the action plan described in section V.A.2. of the Main CDBG–MIT Notice. For example, the plan must include a risk-based Mitigation Needs Assessment that identifies and analyzes all significant current and future disaster risks and provide a substantive basis for the activities proposed, pursuant to this notice and section V.A.2.a.(1) of the Main CDBG–MIT Notice (84 FR 45847). The action plan must describe how funded activities satisfy the requirements of the Main CDBG–MIT Notice, including how all proposed activities meet the definition of mitigation activities as defined in section II.A. of the Main CDBG–MIT Notice. As described in section II.B. of the Main CDBG–MIT Notice, grantees must describe in their action plan how they have coordinated and will continue to coordinate with other partners who manage FEMA and USACE funds and describe the actions that they have taken to align proposed activities with other federal, state, and local mitigation projects and planning processes. Covered Projects. To allow for a more detailed review of larger projects, the Main CDBG–MIT Notice requires that infrastructure projects that also meet the definition of a Covered Project be included in an action plan or a substantial action plan amendment. The Main CDBG–MIT Notice defines a VerDate Sep<11>2014 19:08 Jan 05, 2021 Jkt 253001 Covered Project as an infrastructure project having a total project cost of $100 million or more, with at least $50 million of CDBG funds (regardless of source (CDBG–DR, CDBG-National Disaster Resilience (NDR), CDBG–MIT, or CDBG)). Covered Projects proposed by a grantee receiving funds pursuant to this notice are subject to the requirements for Covered Projects, which are primarily located in sections V.A.2.h. and V.A.13.b. of the Main CDBG–MIT Notice. Amendments. A grantee must amend its action plan to update its Mitigation Needs Assessment, modify or create new activities, or reprogram funds, as appropriate. Each amendment must be highlighted, or otherwise identified within the context of the entire action plan. The beginning of every substantial amendment must include a: (1) Section that identifies exactly what content is being added, deleted, or changed; (2) chart or table that clearly illustrates where funds are coming from and where they are moving to; (3) revised budget allocation table that reflects the entirety of all funds, as amended; and (4) a description of how the amendment is consistent with the grantee’s Mitigation Needs Assessment. A grantee must amend its action plan in accordance with section V.A.2.g. of the Main CDBG–MIT Notice, as amended by the 2020 Omni Notice, as further modified by this notice. In the 2020 Omni Notice, HUD clarified that a substantial amendment is not subject to the public hearing requirements for the initial action plan that are described in section V.A.3.a. of the Main CDBG–MIT Notice. As discussed in section III.B. of this notice, grantees that received a CDBG– MIT allocation pursuant to Public Law 115–123 must submit a substantial amendment to its approved CDBG–MIT action plan. II.B. Most Impacted and Distressed Areas The Appropriations Act made CDBG– MIT funds available for eligible activities related to the mitigation of risks within the MID areas resulting from 2018 disasters. Table 1 identifies the HUD-identified MID areas for CDBG–MIT funds under this notice only. The amount of funding grantees must expend to mitigate risks within the HUD-identified MID areas under this notice is also listed in Table 1. In some instances, HUD has identified the entire jurisdiction of a grantee as the HUDidentified MID area. For all other CDBG–MIT grantees, HUD is requiring that at least 50 percent of all CDBG–MIT funds must be used for mitigation PO 00000 Frm 00064 Fmt 4703 Sfmt 4703 563 activities that address identified risks within the HUD-identified MID areas. Note that if HUD designates a ZIP Code for 2018 disasters as a MID area for purposes of allocating funds, the grantee may expand program operations to the whole county (county is indicated in parentheses next to the ZIP Code) as a MID area. For CDBG–MIT funds under this notice only, a grantee should indicate its decision to expand eligibility to the whole county in its action plan. A grantee may use up to 5 percent of the total grant award (plus 5 percent of program income generated by the grant) for grant administration and no more than 15 percent of its total grant amount on planning costs. HUD will include 50 percent of a grantee’s expenditures for grant administration in its determination that 50 percent of the total award has been expended in the HUD-identified MID areas. Additionally, expenditures for planning activities may be counted towards a grantee’s 50 percent MID expenditure requirement, provided that the grantee describes in its action plan how those planning activities benefit the HUDidentified MID areas. HUD may approve a grantee’s request to add other areas to the HUD-identified MID areas based upon the grantee’s submission of a data-driven analysis that illustrates the basis for designating the additional area as most impacted and distressed as a result of the qualifying 2018 disaster. A grantee seeking to amend its HUD-identified MID area for purposes of its CDBG–MIT grant for 2018 disasters must also amend the HUD-identified MID area for its corresponding CDBG–DR grant(s) for 2018 disasters. Grantees proposing to add to the HUD-identified MID area for their existing CDBG–DR grant do so through a substantial amendment that includes a consideration of unmet housing recovery needs. The grantee must also undertake a substantial amendment to its CDBG–MIT action plan so that the HUD-identified MID areas are the same across both grants. The grantee may submit the substantial amendments for both grants simultaneously. Grantees may determine where to use the remaining 50 percent of the CDBG– MIT grant (i.e., the grantee-identified MID areas for 2018 disasters), but that portion of the grant must be used for mitigation activities that address identified risks within those areas that the grantee determines are most impacted and distressed resulting from the major disasters identified by the disaster numbers listed in Table 1. The grantee-identified MID areas must be E:\FR\FM\06JAN1.SGM 06JAN1 564 Federal Register / Vol. 86, No. 3 / Wednesday, January 6, 2021 / Notices determined through the use of quantifiable and verifiable data. Grantee expenditures for eligible mitigation activities outside of the HUDidentified or grantee-identified MID areas for 2018 disasters may be counted toward the MID area expenditure requirements provided that the grantee can demonstrate how the expenditure of CDBG–MIT funds outside of this area will measurably mitigate risks identified within the HUD-identified or granteeidentified MID area for 2018 disasters (e.g., upstream water retention projects to reduce downstream flooding in the HUD-identified MID area). jbell on DSKJLSW7X2PROD with NOTICES III. Overview of Grant Process III.A. Action Plan Process for New CDBG–MIT Grantees Under the Appropriations Act (Pub. L. 116–20) Grantees that have not received a previous CDBG–MIT allocation (Alaska, American Samoa, Hawaii County, Kauai County, the Commonwealth of the Northern Mariana Islands, and Wisconsin) must submit an action plan pursuant to the requirements in section V.A.2 of the Main CDBG–MIT Notice, as superseded by section IV.A.3.b. of this notice (i.e., within 270 days after the applicability date of this notice). Since March 2020, HUD has authorized extensions for action plan submissions for CDBG–DR and CDBG–MIT grants due to the coronavirus (COVID–19) pandemic. The ongoing challenges of the pandemic continue to warrant longer submission time frames for grants allocated under this notice. Therefore, the deadlines for submitting an action plan in the Main CDBG–MIT Notice are superseded by the extended submission time frame in section IV.A.3.b. of this notice. Grantees that received allocations under the January 2020 Notice for 2018 and 2019 disasters submitted information described in section VI.A.1. of the February 9, 2018 notice (as amended and updated by section IV.B.1. of the January 27, 2020 notice). These submissions supported the Secretary’s evaluation of grantee capacity and the Secretary’s certification of proficient financial controls and procurement processes and adequate procedures for proper grant management required by the Appropriations Act. Rather than resubmit the same information for allocations under this notice, grantees are required to update those submissions to reflect any material changes. This includes updates to the information required by section VI.A.1.a. of the February 9, 2018 notice (83 FR 5847), paragraphs (1)–(6), as updated and amended by section IV.B.1. VerDate Sep<11>2014 19:08 Jan 05, 2021 Jkt 253001 of the January 2020 Notice (85 FR 4686). HUD will consider these updates before granting funds allocated by this notice. The submission deadlines in the notices referenced in the previous two paragraphs are superseded by deadlines set by this notice. HUD will direct grantees to checklists for submitting information required by this paragraph. Grantees must also submit additional information that the Main CDBG–MIT Notice requires of grantees that do not apply to CDBG–DR grants. The required information must be submitted by completing the checklist on HUD’s website titled ‘‘CDBG–MIT Certification Addendum C to the Public Law 116–20 and 115–254 CDBG–DR Financial Management and Grant Compliance Certification Checklist.’’ In the checklist, a CDBG–MIT grantee must: Indicate how it will strengthen its internal audit function; specify the criteria for subrecipient selection and its plans to increase subrecipient monitoring, and establish a process for promptly identifying and addressing conflicts under the grantee’s conflict of interest policy. If the CDBG–MIT grant is to be administered by an agency that does not administer a grantee’s corresponding CDBG–DR grant, the administering agency for the CDBG–MIT grant must submit the documentation for the certification of financial controls and procurement processes, and adequate procedures for proper grant management as described in section V.A.1.a. of the Main CDBG–MIT Notice. To begin expending CDBG–MIT funds, the following steps are necessary: • Grantee develops or amends its citizen participation plan for disaster recovery per the requirements in section V.A.3 of the Main CDBG–MIT Notice. • Grantee consults with stakeholders, including required consultation with affected local governments, Indian Tribes, and public housing authorities (as required by section V.A.7 of the Main CDBG–MIT Notice). • Within 210 days of the applicability date of this notice, the grantee must submit material updates to documentation for the certification of financial controls and procurement processes, and adequate procedures for grant management and the Addendum C added to Public Law 116–20 and 115– 254 CDBG–DR Financial Management and Grant Compliance Certification Checklist, as described above. • Grantee publishes its action plan for mitigation on the grantee’s required public website for no less than 45 calendar days to solicit public comment and convenes the required number of public hearings on the proposed plan as PO 00000 Frm 00065 Fmt 4703 Sfmt 4703 required by the Main CDBG–MIT Notice. The grantee may convene virtual hearings in lieu of in-person hearings, pursuant to the authorization provided below in section IV.A.3.d. of this notice. • Within 270 days of the applicability date of this notice, the grantee responds to public comment and submits its action plan (which includes Standard Form 424 (SF–424) and certifications), its implementation plan and capacity assessment submissions in accordance with the requirements in section V.A.1.b. and V.A.2. of the Main CDBG– MIT Notice, and projection of expenditures and outcomes to HUD as described in section IV.A.3.b. and IV.A.3.c. of this notice. • Grantee requests and receives Disaster Recovery Grant Reporting (DRGR) system access and may enter activities into the DRGR system before or after submission of the action plan to HUD. Any activities that are changed as a result of HUD’s review must be updated once HUD approves the action plan. • HUD reviews (within 60 days from date of receipt) the action plan according to criteria identified for CDBG–MIT funds, and either approves or disapproves the plan as described in section IV.A.2 of this notice. • If the action plan is not approved, HUD will notify the grantee of the deficiencies. The grantee must then resubmit the action plan within 45 days of the notification. • After the action plan is approved, HUD sends an action plan approval letter. • Prior to transmittal of the grant agreement, HUD notifies grantees of its certification of the grantee’s financial controls, procurement processes and grant management procedures and its acceptance of the implementation plan and capacity assessment. • HUD sends the grant agreement to the grantee. • Grantee signs and returns the grant agreement to HUD. • HUD will sign the grant agreement and establish the grantee’s line of credit to reflect the amount of available funds. • Grantee posts the final HUD approved action plan on its official website. • Grantee enters the activities from its approved action plan into the DRGR system if it has not previously done so and submits its DRGR action plan to HUD (funds can be drawn from the line of credit only for activities that are established in the DRGR system). • The grantee must publish (on its website) policies for programs and activities implemented by the grantee with CDBG–MIT funds. E:\FR\FM\06JAN1.SGM 06JAN1 Federal Register / Vol. 86, No. 3 / Wednesday, January 6, 2021 / Notices jbell on DSKJLSW7X2PROD with NOTICES • The grantee may draw down funds from the line of credit, consistent with the applicable draw down requirements, after the Responsible Entity completes applicable environmental review(s) pursuant to 24 CFR part 58 or as authorized by the Appropriations Act and, as applicable, receives from HUD or the state the Authority to Use Grant Funds (AUGF) form and certification. • Substantial amendments are subject to a 30-day public comment period, including posting to the grantee’s website, followed by a 60-day review period for HUD. III.B. Substantial Action Plan Amendment Process for Existing Grantees Under Prior Appropriations (Pub. L. 115–123) A single CDBG–MIT action plan will be used to describe the uses of both the existing CDBG–MIT grant under Public Law 115–123 and the new CDBG–MIT grant under Public Law 116–20. While each grant remains separate, with separate purposes, financial controls, and some other distinctions, this combined administrative approach should ease grantee burden. Each grantee that previously received a CDBG–MIT allocation under the Main CDBG–MIT Notice pursuant to Public Law 115–123 (California, Florida, Georgia, North and South Carolina, and Texas) is required to submit a substantial amendment to its approved CDBG–MIT action plan. The substantial amendment must be submitted not later than 180 days after HUD’s full or partial approval of the Public Law 115–123 CDBG–MIT action plan or not later than 180 days after the applicability date of this notice, whichever is later, unless the grantee has requested, and HUD has approved an extension of this submission deadline. The substantial amendment must include the CDBG– MIT funds allocated under this notice and address the requirements of the Prior Notices and this notice. Grantees that received a CDBG–MIT allocation under the Main CDBG–MIT Notice have submitted documentation for the certification of financial controls and procurement processes, and adequate procedures for grant management in section V.A.1.a of the Main CDBG–MIT Notice entitled, ‘‘Certification of financial controls and procurement processes, and adequate procedures for proper grant management.’’ A grantee may request that HUD rely on this CDBG–MIT Financial Management and Grant Compliance Certification Checklist and supporting documentation for the purposes of this mitigation allocation, provided, however, that the grantee VerDate Sep<11>2014 19:08 Jan 05, 2021 Jkt 253001 must update its submissions as described in section V.A.1.a. (1)–(6) of the Main CDBG–MIT Notice to reflect any material changes in the submissions. Additionally, each grantee that received an allocation under the Main CDBG–MIT Notice must meet the following requirements to amend its approved CDBG–MIT action plan. These steps are only applicable to the substantial amendment process to add the CDBG–MIT funds allocated under this notice. • Grantee must consult with stakeholders, including required consultation with affected local governments, Indian Tribes, and public housing authorities to update its Mitigation Needs Assessment as required by section V.A.7. of the Main CDBG–MIT Notice. • Within 120 days of the applicability date of this notice, the grantee updates its submissions for the certification of financial controls and procurement processes, and adequate procedures for grant management described in section V.A.1.a. of the Main CDBG–MIT Notice to reflect any material changes in the submissions. • Grantee must amend its CDBG–MIT action plan to update its Mitigation Needs Assessment in accordance with the requirements described in section IV.A.3.a. of this notice. At a minimum, this must include the HUD-identified MID areas under this notice in addition to those identified in the Main CDBG– MIT Notice and to add in the new grant funds allocated by this notice. The grantee may also modify or create new activities from its existing CDBG–MIT grant. • Grantee must publish the substantial amendment to its current approved CDBG–MIT action plan on the grantee’s required public website in a manner that affords citizens, affected local governments, Indian Tribes, public housing authorities, and other interested parties a reasonable opportunity to examine the amendment’s contents and provide feedback. The manner of publication must include, at a minimum, prominent posting on the grantee’s official website for no less than 30 calendar days to solicit public comment and convene one public hearing on the proposed amendment. Each grantee must ensure that mitigation program information is available in the appropriate languages for the geographic areas to be served (see HUD’s LEP Guidance, 72 FR 2732 (2007)) and take appropriate steps to ensure effective communications with persons with disabilities under Section 504 (see, 24 CFR 8.6) and the Americans PO 00000 Frm 00066 Fmt 4703 Sfmt 4703 565 with Disabilities Act (see 28 CFR 35.106). • Grantee must respond to public comment and submit its substantial amendment to HUD (together with SF– 424 and the certifications in paragraph VI.1. of the Main CDBG–MIT Notice) no later than 180 days after the applicability date of this notice. • HUD will review the substantial amendment within 60 days from date of receipt as described in section of IV.A.2. of this notice and determine whether to approve the substantial amendment per criteria identified in this notice and the Prior Notices. • HUD will send a substantial amendment approval letter, and a new grant agreement to the grantee. If the substantial amendment is not approved, a letter will be sent identifying its deficiencies and the grantee must then re-submit the substantial amendment within 45 days of the notification letter. • Grantee may enter activities into the DRGR system before or after submission of the substantial amendment to HUD. Note that, while the action plan is consolidated, the DRGR system will maintain the necessary and appropriate separations between the two distinct CDBG–MIT grants. Any activities that are changed as a result of HUD’s review must be updated once HUD approves the substantial amendment. • Grantee must ensure that the HUDapproved substantial amendment and currently approved CDBG–MIT action plan are posted prominently on its official website. Each grantee’s current version of its entire action plan must be accessible for viewing as a single document at any given point in time, rather than the public or HUD having to view and cross-reference changes among multiple amendments. • Grantee must enter the activities from its published substantial amendment into the Disaster Recovery Grant Reporting (DRGR) system and submit the updated DRGR action plan (revised to reflect the substantial amendment) to HUD within the DRGR system. • Grantee must sign and return the grant agreement to HUD. • HUD will sign the grant agreement and will establish the grantee’s line of credit to reflect the amount of funds made available under Public Law 116– 20. • The grantee may draw down funds from the line of credit, consistent with the applicable draw down requirements, after the Responsible Entity completes applicable environmental review(s) pursuant to 24 CFR part 58 or as authorized by the Appropriations Act and, as applicable, receives from HUD E:\FR\FM\06JAN1.SGM 06JAN1 566 Federal Register / Vol. 86, No. 3 / Wednesday, January 6, 2021 / Notices or the state the Authority to Use Grant Funds (AUGF) form and certification. • Grantee must amend and submit its projection of CDBG–MIT expenditures and performance outcomes with the substantial amendment. IV. Applicable Rules, Statutes, Waivers, and Alternative Requirements This section of the notice describes rules, statutes, waivers, and alternative requirements that apply to each grantee receiving an allocation under this notice. The Secretary has determined that good cause exists to apply each waiver and alternative requirement established in the Prior Notices, as amended by this notice, to the use of funds under this notice and that such waivers and alternative requirements are not inconsistent with the overall purpose of title I of the HCDA. 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). Regulatory waiver authority is also provided by 24 CFR 5.110, 91.600, and 570.5. Grantees may request additional waivers and alternative requirements from the Department as needed to address specific needs related to their mitigation activities. Grantee requests for waivers and alternative requirements must be accompanied by relevant data to support the request and must demonstrate to the satisfaction of the Department that there is good cause for the waiver or alternative requirement. Grantees must work with the assigned CPD representative to request any additional waivers or alternative requirements from HUD headquarters. The following requirements apply only to the CDBG–MIT funds appropriated under the Appropriations Act (unless otherwise noted) and not to funds provided under the annual formula State or Entitlement CDBG programs, the Indian Community Development Block Grant program, or those provided under any other component of the CDBG program, such as the Section 108 Loan Guarantee Program, or any previous CDBG–MIT appropriations, unless otherwise noted. Pursuant to the requirements of the Appropriations Acts, waivers and alternative requirements are effective five days after they are published in the Federal Register. Except as described in this notice or the Prior Notices, statutory and regulatory provisions governing the State CDBG program shall apply to State grantees receiving a CDBG–MIT grant and statutory and regulatory provisions governing the entitlement CDBG program shall apply to any local government receiving a CDBG–MIT grant. The provisions of 24 CFR part 570, subpart F are waived to authorize American Samoa and the Commonwealth of the Northern Mariana Islands to administer its CDBG–MIT allocation in accordance with the regulatory and statutory provisions governing the State CDBG program, as modified by rules, statutes, waivers, and alternative requirements made applicable by Federal Register notices. This includes the requirement that the aggregate total for administrative and technical assistance expenditures by the Commonwealth of the Northern Mariana Islands must not exceed 5 percent of any CDBG–MIT grant made pursuant to the Appropriations Act, plus 5 percent of program income generated by the grant. The Department has determined that good cause exists for a waiver and that such waiver is not inconsistent with the overall purposes of title I of the HCDA. State and Entitlement CDBG regulations can be found at 24 CFR part 570. References to the action plan in these regulations shall refer to the action plan that covers the use of the CDBG– MIT grants allocated by this notice that is required by section V.A. of the Main CDBG–MIT Notice (as made applicable by this notice). All references in this notice pertaining to timelines and/or deadlines are in terms of calendar days unless otherwise noted. The date of this notice shall mean the applicability date of this notice unless otherwise noted. IV.A. Grant Administration and Action Plan Requirements IV.A.1. Applicability of waivers, alternative requirements, and other requirements. The Prior Notices establish the waivers and alternative requirements applicable to grantees receiving funds under this notice. For convenience, some of these rules, waivers, and alternative requirements are described below in Table 3. In addition, this notice extends the waivers and alternative requirements in the Prior Notices to Hawaii County and Kauai County, which are subject to requirements imposed in 24 CFR part 570, subpart F. However, because the Prior Notices do not include waivers and alternative requirements to the provisions in 24 CFR part 570, subpart F, this notice amends the Prior Notices by also waiving 24 CFR 570.420(c), 24 CFR 570.431(a), and 24 CFR 570.431(b). The Department has determined that good cause exists for a waiver and that such waiver is not inconsistent with the overall purposes of title I of the HCDA. TABLE 3—RULES, WAIVERS, AND ALTERNATIVE REQUIREMENTS ESTABLISHED IN THE PRIOR NOTICES Citation Rules, waivers, and alternative requirement jbell on DSKJLSW7X2PROD with NOTICES The Main CDBG–MIT Notice 84 84 84 84 FR FR FR FR 45844 45846 45852 45853 ........... ........... ........... ........... 84 84 84 84 84 84 84 84 84 84 FR FR FR FR FR FR FR FR FR FR 45854 45855 45855 45855 45855 45856 45856 45856 45856 45857 ........... ........... ........... ........... ........... ........... ........... ........... ........... ........... VerDate Sep<11>2014 Pre-award evaluation of management and oversight of funds. CDBG–MIT Action Plan waiver and alternative requirement. Citizen participation waiver and alternative requirement. HUD performance review authorities and grantee reporting requirements in the Disaster Recovery Grant Reporting (DRGR) System. Direct grant administration and means of carrying out eligible activities-applicable to State grantees only. Consolidated plan waiver. Requirement for consultation during plan preparation. Grant administration responsibilities, combined technical assistance and administration expenditures cap. Operation and maintenance waiver for CDBG–MIT program income. Planning-only activities applicable to State grantees only. Overall benefit requirement. Use of the ‘‘upper quartile’’ or ‘‘exception criteria’’ for low- and moderate-income area benefit activities. National objective waivers and alternative requirements applicable to CDBG–MIT funds. Waiver and alternative requirement for distribution to CDBG metropolitan cities and urban counties applicable to State grantees only. 19:08 Jan 05, 2021 Jkt 253001 PO 00000 Frm 00067 Fmt 4703 Sfmt 4703 E:\FR\FM\06JAN1.SGM 06JAN1 Federal Register / Vol. 86, No. 3 / Wednesday, January 6, 2021 / Notices 567 TABLE 3—RULES, WAIVERS, AND ALTERNATIVE REQUIREMENTS ESTABLISHED IN THE PRIOR NOTICES—Continued Citation 84 84 84 84 84 84 84 84 84 84 84 84 84 84 84 84 84 84 84 84 84 84 84 84 84 84 84 84 84 84 84 84 84 84 FR FR FR FR FR FR FR FR FR FR FR FR FR FR FR FR FR FR FR FR FR FR FR FR FR FR FR FR FR FR FR FR FR FR 45857 45857 45858 45858 45858 45859 45859 45859 45860 45861 45862 45862 45862 45862 45863 45863 45863 45863 45864 45864 45864 45866 45867 45867 45867 45868 45868 45868 45868 45869 45869 45869 45869 45869 Rules, waivers, and alternative requirement ........... ........... ........... ........... ........... ........... ........... ........... ........... ........... ........... ........... ........... ........... ........... ........... ........... ........... ........... ........... ........... ........... ........... ........... ........... ........... ........... ........... ........... ........... ........... ........... ........... ........... Use of subrecipients-applicable to State grantees only. Recordkeeping. Change of use of real property, applicable to State grantees only. Responsibility for review and handling of noncompliance-applicable to State grantees only. Program income alternative requirement. Limitation on reimbursement. Prohibition on forced mortgage payoff. One-for-one replacement housing, relocation, and real property acquisition Requirements. Environmental requirements. Duplication of benefits. Procurement. Timely distribution of funds. Review of continuing capacity to carry out CDBG-funded activities in a timely manner. Corrective and remedial actions. Noncompliance and grant conditions. Reduction, withdrawal, or adjustment of a grant, or other appropriate action. Federal accessibility requirements. Housing-related eligibility waivers. Housing incentives in at-risk communities. Limitation on emergency grant payments—interim mortgage assistance. Acquisition of real property; flood and other buyouts. Additional LMI national objective criteria for buyouts and housing incentives. Alternative requirement for housing rehabilitation—assistance for second homes. Flood insurance. Elevation of nonresidential structures. Requirements for flood control structure. Waiver and alternative requirement to permit certain improvements on private lands. National objective documentation for economic development activities. Public benefit for certain economic development activities. Clarifying note on Section 3 resident eligibility and documentation requirements. Waiver and modification of the job relocation clause to permit assistance to help a business return. Prioritizing small businesses. Underwriting. Limitation on use of funds for eminent domain. The 2020 Omni Notice jbell on DSKJLSW7X2PROD with NOTICES 85 FR 60822 ........... 85 FR 60825 ........... 85 FR 60827 ........... Waiver and Alternative Requirements for Use of FEMA-Approved Elevation Standards for Nonresidential Structures. Substantial Action Plan Amendment Requirements for CDBG–MIT Grants. Financial Certification Requirements under Public Laws 115–254 and 116–20. IV.A.2. Waiver of 45-day Review Period for CDBG–MIT Action Plan and Substantial Action Plan Amendments. The unique qualities and requirements of CDBG–MIT are well established in the Main CDBG–MIT Notice. CDBG– MIT funds represent an opportunity for grantees to use this assistance in areas impacted by recent disasters to carry out strategic and high-impact activities to mitigate disaster risk and reduce future losses. HUD may disapprove an action plan or substantial action plan amendment if it is incomplete. HUD works with grantees to resolve or provide additional information during the review period to avoid the need to disapprove an action plan or substantial action plan amendments. There are several issues related to the action plan or substantial action plan amendments as submitted that can be fully resolved via further discussion and revision during an extended review period, rather than through HUD disapproval of the VerDate Sep<11>2014 19:08 Jan 05, 2021 Jkt 253001 amendments which in turn would require grantees to take additional time to revise and resubmit their respective amendments. As such, the Secretary has determined that good cause exists to waive 24 CFR 91.500(a) to extend HUD’s action plan review period from 45 days to 60 days. IV.A.3. Additional requirements and modifications of requirements in the Main CDBG–MIT Notice. The following clarifications or modifications apply to all grantees receiving an allocation under this notice: IV.A.3.a. Substantial amendments for grantees receiving an allocation of funds under the Main CDBG–MIT Notice. Grantees that received a CDBG–MIT allocation under the Main CDBG–MIT Notice (California, Florida, Georgia, North and South Carolina, and Texas) must submit a substantial amendment to its CDBG–MIT action plan, including an updated Mitigation Needs Assessment, per the requirements outlined in this notice, in addition to meeting the PO 00000 Frm 00068 Fmt 4703 Sfmt 4703 requirements for substantial amendments under the Main CDBG– MIT Notice and the 2020 Omni Notice (85 FR 60825). In particular, the substantial amendment must update the risk-based Mitigation Needs Assessment to: (1) Identify and analyze the significant current and future disaster risks in the MID areas for 2018 disasters and provide a substantive basis for the activities proposed in those MID areas. HUD notes that a grantee’s action plan and Mitigation Needs Assessment in response to the Main CDBG–MIT Notice may already include MID areas for 2018 disasters (if those areas overlap with previous disasters). In that case, the grantee must update its needs assessment. Mitigation needs evolve over time and grantees are to amend the Mitigation Needs Assessment and action plan as conditions change, additional mitigation needs are identified, and additional resources become available. E:\FR\FM\06JAN1.SGM 06JAN1 jbell on DSKJLSW7X2PROD with NOTICES 568 Federal Register / Vol. 86, No. 3 / Wednesday, January 6, 2021 / Notices As a reminder, the agency administering the CDBG–MIT funds must consult with other jurisdictions, the private sector and other government agencies, as identified above in section III.A. and III.B. of this notice. For more information on the consultation requirements, a grantee should refer to section V.A.7. of the Main CDBG–MIT Notice. As required by section III.A., the grantee must update its submissions for the certification of financial controls and procurement processes, and adequate procedures for grant management as described in section V.A.1.a. of the Main CDBG–MIT Notice to reflect any material changes in the submissions within 120 days of the applicability date of this notice. IV.A.3.b. Action plans and other submission requirements for grantees receiving their first CDBG–MIT allocation under this notice. Grantees receiving their first allocation of CDBG– MIT funds (Alaska, American Samoa, Hawaii County, Kauai County, the Commonwealth of the Northern Mariana Islands, and Wisconsin) shall be subject to the deadlines for submission of implementation plans and capacity assessments, projection of expenditures and outcomes, and action plans, as established by this paragraph and paragraph IV.A.3.c. (which supersede the deadlines in the Main CDBG–MIT Notice). These grantees must submit projection of expenditures and outcomes and an action plan not later than 270 days after the applicability date of this notice. As required by section III.A. of this notice, the grantee must submit material updates to documentation for the certification of financial controls and procurement processes, and adequate procedures for grant management and the Addendum C added to Public Law 116–20 and 115– 254 CDBG–DR Financial Management and Grant Compliance Certification Checklist, within 210 days of the applicability date of this notice. IV.A.3.c. Implementation plan and capacity assessment. Grantees receiving their first allocation of CDBG–MIT funds under this notice (Alaska, American Samoa, Hawaii County, Kauai County, the Commonwealth of the Northern Mariana Islands, and Wisconsin) must submit the Implementation Plan and Capacity Assessment pursuant to section V.A.1.b., including the criteria in V.A.1.b.(1) and V.A.1.b.(2), of the Main CDBG–MIT Notice within 270 days of the applicability date of this notice. IV.A.3.d. Public Hearing Clarification. On March 20, 2020 and in response to the COVID–19 pandemic, HUD clarified VerDate Sep<11>2014 19:08 Jan 05, 2021 Jkt 253001 its requirements for public hearings as provided in the Main CDBG–MIT Notice, to include virtual public hearings (alone, or in concert with an in-person hearing) if the virtual hearings allow questions in real time, with answers coming directly from the elected representatives to all ‘‘attendees.’’ HUD is extending this flexibility to grantees receiving CDBG– MIT funds pursuant to this notice to facilitate social distancing during the public health emergency. CDBG–MIT grantees subject to this notice may hold virtual hearings in lieu of in-person public hearings to fulfill the public hearing requirements required by section V.A.3.a. of the Main CDBG–MIT Notice. Grantees that hold virtual hearings must update their citizen participation plans to describe procedures for virtual hearings, including how it shall take appropriate steps to ensure effective communication as required by 24 CFR 8.6 and provide meaningful access for individuals with limited English proficiency. For each virtual hearing, the grantee shall provide reasonable notification and access for citizens in accordance with the grantee’s certifications, timely responses to all citizen questions and issues, and public access to all questions and responses. IV.A.3.e. Consolidated Plan Waiver. The Main CDBG–MIT Notice imposes a deadline for grantees to update their consolidated plans. To allow grantees receiving allocations under Public Law 116–20 a similar extension to revise their consolidated plans for consistency with their CDBG–MIT action plans, the following language is added to the waiver and alternative requirement provided in section V.A.6. of the Main CDBG–MIT Notice to include the CDBG–MIT funds allocated under this notice: ‘‘This timeframe to update the consolidated plan shall not apply to grantees receiving CDBG–MIT funds under Public Law 116–20 for 2018 disasters. For a grantee allocated CDBG– MIT funds under Public Law 116–20, this waiver applies only until a grantee submits its next full (3–5 year) consolidated plan, or no later than its Fiscal Year 2022.’’ IV.A.3.f. Use of funds in response to Hurricane Matthew and Hurricane Florence (State of North Carolina and South Carolina only). The Appropriations Act provides that grantees that received an allocation for mitigation activities in response to Hurricane Florence may use the CDBG– MIT funds for the same activities, consistent with the requirements of the CDBG–MIT grant, in the most impacted and distressed areas related to PO 00000 Frm 00069 Fmt 4703 Sfmt 4703 Hurricane Matthew. Additionally, as explained in the Main CDBG–MIT Notice in paragraph V.A.5.b., grantees that received an allocation for mitigation funding provided by Public Law 115–123 in response to Hurricane Matthew may use the CDBG–MIT funds for the same activities, consistent with the requirements of the CDBG–MIT grant, in the most impacted and distressed areas related to Hurricane Florence. Expenditures in the HUDidentified MID areas for both Hurricanes Matthew and Florence may count toward the 50 percent expenditure requirement for HUD-identified MID areas outlined in Table 1 of this notice. In total, South Carolina and North Carolina must expend 50 percent of the combined total of both CDBG–MIT grants in HUD-identified MID areas resulting from Hurricanes Matthew and Florence. V. Duration of Funding The Appropriations Act makes funds available for obligation by HUD until expended. This notice requires each grantee to expend 50 percent of its CDBG–MIT grant for 2018 disasters on eligible activities within six years of HUD’s execution of the grant agreement and 100 percent of its CDBG–MIT grant for 2018 disasters within twelve years of HUD’s execution of the grant agreement. HUD may extend the period of performance administratively, if good cause for such an extension exists at that time, as requested by the grantee and approved by HUD. When the period of performance has ended, HUD will close out the grant and any remaining funds not expended by the grantee on appropriate programmatic purposes will be recaptured by HUD. VI. Catalog of Federal Domestic Assistance The Catalog of Federal Domestic Assistance numbers for the grants under this notice are as follows: 14.218 and 14.228. VII. 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 on HUD’s website and in-person 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 E:\FR\FM\06JAN1.SGM 06JAN1 569 Federal Register / Vol. 86, No. 3 / Wednesday, January 6, 2021 / Notices 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 Information Relay Service at 800–877–8339 (this is a tollfree number). John Gibbs, Principal Deputy Assistant Secretary for Community Planning and Development. Appendix A—Detailed Methodology Allocation of CDBG–MIT Funds to Most Impacted and Distressed Areas Due to 2018 Federally Declared Disasters According to Public Law 116–20: Provided further, That any funds made available under this heading and under the same heading in Public Law 115–254 that remain available, after the funds under such headings have been allocated for necessary expenses for activities authorized under such headings, shall be allocated to grantees, for Grantee 4357 .............. 4413 .............. 4407, 4382 .... 4399 .............. 4400 .............. 4365 .............. 4366 .............. 4396, 4404 .... 4393 .............. 4394 .............. 4377 .............. 4402 .............. American Samoa .......................................................................... State of Alaska ............................................................................. State of California ........................................................................ State of Florida ............................................................................. State of Georgia ........................................................................... Kauai County, HI .......................................................................... Hawaii County, HI ........................................................................ Commonwealth of the Northern Mariana Islands ........................ State of North Carolina ................................................................ State of South Carolina ................................................................ State of Texas .............................................................................. State of Wisconsin ....................................................................... 2018 Disasters ............................................................................. BILLING CODE 4210–67–P DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT [Docket No. FR–6182–N–02] Allocations, Common Application, Waivers, and Alternative Requirements for Disaster Community Development Block Grant Disaster Recovery Grantees; Second Allocation Office of the Assistant Secretary for Community Planning and Development, HUD. ACTION: Notice. AGENCY: This notice allocates a total of $85,291,000 in Community Development Block Grant disaster recovery (CDBG–DR) funds appropriated by the Additional Supplemental Appropriations for Disaster Relief Act, 2019 (the Act). The $85,291,000 in CDBG–DR funds allocated by this notice is for the purpose of assisting in long-term recovery from major disasters that occurred in 2018 and 2019. The SUMMARY: jbell on DSKJLSW7X2PROD with NOTICES Combined allocation for unmet needs (Pub. L. 115–254 and Pub. L. 116–20) FEMA disaster No. [FR Doc. 2020–29261 Filed 1–5–21; 8:45 am] VerDate Sep<11>2014 19:08 Jan 05, 2021 Jkt 253001 Frm 00070 Fmt 4703 Sfmt 4703 Proportional share of 2018 unmet needs (%) $23,039,000 35,856,000 1,017,399,000 735,553,000 41,837,000 9,176,000 107,561,000 254,324,000 542,644,000 72,075,000 72,913,000 15,355,000 2,927,732,000 allocations in this notice add to the funding previously allocated in the January 27, 2020 notice for these disasters. The Act requires HUD to allocate any funds not identified for long-term recovery from major disasters to be allocated for mitigation activities for 2018 disasters. Accordingly, under a separate notice, HUD will allocate the remaining $185,730,000 of funds available under the Act for mitigation activities in the most impacted and distressed areas resulting from a major disaster that occurred in 2018. This notice also contains a waiver and alternative requirement addressing the income limits applicable to the Commonwealth of Puerto Rico for its CDBG–DR and CDBG–MIT grants. Additionally, this notice also provides additional flexibility to CDBG–DR grantees as they continue their disaster recovery efforts while also responding to the Coronavirus Disease 2019 (COVID–19) pandemic. DATES: Applicability Date: January 11, 2021. FOR FURTHER INFORMATION CONTACT: Jessie Handforth Kome, Acting Director, Office of Block Grant Assistance, PO 00000 mitigation activities in the most impacted and distressed areas resulting from a major disaster that occurred in 2018: Provided further, That such allocations shall be made in the same proportion that the amount of funds each grantee received under this Act and the same heading in division I of Public Law 115–254 bears to the amount of all funds provided to all grantees that received allocations for disasters that occurred in 2018: The Table below shows the total unmet needs for each 2018 grantee as calculated by HUD, each grantee’s share of the unmet needs for all 2018 disasters, and the amounts allocated to each 2018 grantee which are proportional to the total amount each of the grantees has been allocated for unmet needs from the aggregate of Public Law 116–20 and Public Law 115–254. 2018 Mitigation grants (Pub. L. 116–20) 0.7869 1.2247 34.7504 25.1236 1.4290 0.3134 3.6739 8.6867 18.5346 2.4618 2.4904 0.5245 100.0000 $1,470,000 2,288,000 64,907,000 46,926,000 2,669,000 585,000 6,862,000 16,225,000 34,619,000 4,598,000 4,652,000 980,000 186,781,000 Department of Housing and Urban Development, 451 7th Street SW, Room 7282, Washington, DC 20410, telephone number 202–708–3587. Persons with hearing or speech impairments may access this number via TTY by calling the Federal Information Relay Service at 800–877–8339. Facsimile inquiries may be sent to Ms. Kome at 202–708–0033. (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. Allocations II. Use of Funds III. Overview of Grant Process A. Appropriations Act (Pub. L. 116–20) Action Plan Process B. Action Plan Substantial Amendment Process To Incorporate Additional Funds IV. Applicable Rules, Statutes, Waivers, and Alternative Requirements A. Grant Administration B. Waiver and Alternative Requirement Related to Adjusted Income Limits for Grants Under Public Laws 115–56, 115– 123, and 116–20 (Commonwealth of Puerto Rico only) E:\FR\FM\06JAN1.SGM 06JAN1

Agencies

[Federal Register Volume 86, Number 3 (Wednesday, January 6, 2021)]
[Notices]
[Pages 561-569]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-29261]



[[Page 561]]

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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-6239-N-01]


Allocations, Common Application, Waivers, and Alternative 
Requirements for Community Development Block Grant Disaster Recovery 
Grantees (CDBG Mitigation)

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

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: This notice allocates over $186 million in Community 
Development Block Grant Mitigation (CDBG-MIT) funds to grantees 
recovering from qualifying 2018 disasters. Funds allocated by this 
notice were made available by the Additional Supplemental 
Appropriations for Disaster Relief Act, 2019. This notice describes 
grant requirements and procedures, including waivers and alternative 
requirements, applicable to CDBG-MIT funds only. Funds allocated 
pursuant to this notice shall be subject only to the provisions of this 
notice and the applicable prior notices, unless otherwise provided 
herein. This notice also clarifies the applicability of certain 
previous waivers and alternative requirements provided for CDBG-MIT 
grantees.

DATES: Applicability Date: January 11, 2021.

FOR FURTHER INFORMATION CONTACT: Jessie Handforth Kome, Director, 
Office of Block Grant Assistance, Department of Housing and Urban 
Development, 451 7th Street SW, Room 7282, Washington, DC 20410, 
telephone number 202-708-3587. Persons with hearing or speech 
impairments may access this number via TTY by calling the Federal 
Information Relay Service at 800-877-8339. Facsimile inquiries may be 
sent to Ms. Kome at 202-708-0033. (Except for the ``800'' number, these 
telephone numbers are not toll-free). Email inquiries may be sent to 
[email protected].

SUPPLEMENTARY INFORMATION: 

Table of Contents

I. Allocations
II. Use of CDBG-MIT Funds
    A. Action Plan, Substantial Amendments, and Amendments for 
Covered Projects
    B. Most Impacted and Distressed Areas
III. Overview of Grant Process
    A. Action Plan Process for New CDBG-MIT Grantees Under the 
Appropriations Act (Pub. L. 116-20)
    B. Substantial Action Plan Amendment Process for Existing 
Grantees Under Prior Appropriations (Pub. L. 115-123)
IV. Applicable Rules, Statutes, Waivers, and Alternative 
Requirements
V. Duration of Funding
VI. Catalog of Federal Domestic Assistance
VII. Finding of No Significant Impact

I. Allocations

    The Additional Supplemental Appropriations for Disaster Relief Act, 
2019 (Pub. L. 116-20, approved June 6, 2019) (Appropriations Act) made 
$2,431,000,000 in Community Development Block Grant disaster recovery 
(CDBG-DR) funds available for major disasters occurring in 2017, 2018, 
or 2019, of which $431,000,000 was for grantees that received funds in 
response to disasters occurring in 2017. On January 27, 2020, HUD 
allocated $2,153,928,000 in CDBG-DR funds in accordance with the 
Appropriations Act, to address unmet disaster recovery needs through 
activities authorized under title I of the Housing and Community 
Development Act of 1974 (42 U.S.C. 5301 et seq.) (HCDA) related to 
disaster relief, long term recovery, restoration of infrastructure and 
housing, economic revitalization, and mitigation in the ``most impacted 
and distressed'' (MID) areas resulting from a qualifying major disaster 
in 2018 and 2019, which included the $431,000,000 for unmet 
infrastructure needs for 2017 disasters. In a notice published 
concurrently with this notice, HUD has allocated an additional 
$85,291,000 of CDBG-DR funds from the Appropriations Act for remaining 
unmet needs for disasters occurring in 2018 and 2019. Of amounts made 
available for 2018 and 2019 disasters, the Appropriations Act requires 
that HUD first allocate funds to address unmet disaster recovery needs 
for 2018 and 2019 disasters. Any funds remaining after addressing unmet 
disaster recovery needs for 2018 and 2019 disasters must be allocated 
for mitigation activities in the MID areas resulting from a major 
disaster that occurred in 2018, in an amount proportional to the amount 
of funds each grantee received from all CDBG-DR allocations for 2018 
disasters (including allocations of funds made available by Pub. L. 
115-254).
    HUD has determined that its CDBG-DR allocations pursuant to the 
Appropriations Act are sufficient to address unmet disaster recovery 
needs in MID areas arising from 2018 and 2019 disasters. Therefore, 
this notice allocates the remaining $186,781,000 in funds made 
available in the Appropriations Act as CDBG-MIT funds to grantees 
recovering from qualifying 2018 disasters.
    HUD described the grant requirements and procedures, including 
waivers and alternative requirements applicable to CDBG-MIT funds, for 
CDBG-MIT grantees in the following Federal Register notices 
(collectively, the ``Prior Notices''):
     84 FR 45838, published August 30, 2019 (the ``Main CDBG-
MIT Notice''); and
     85 FR 60821, published September 28, 2020 (the ``2020 Omni 
Notice'').
    CDBG-MIT funds allocated in the Prior Notices are made available by 
the Further Additional Supplemental Appropriations for Disaster Relief 
Requirements Act, 2018 (Pub. L. 115-123). Pursuant to that 
appropriation, HUD allocated $6.875 billion in CDBG-MIT funds in the 
Main CDBG-MIT Notice to grantees recovering from a qualifying 2015, 
2016, and 2017 disaster for mitigation activities.
    In the Main CDBG-MIT Notice, HUD recognized that CDBG-MIT funds are 
to be used for distinctly different purposes than CDBG-DR funds. In 
that notice, HUD defined ``mitigation activities'' to mean those 
activities that increase resilience to disasters and reduce or 
eliminate the long-term risk of loss of life, injury, damage to and 
loss of property, and suffering and hardship, by lessening the impact 
of future disasters.
    The nature of programs and projects that are likely to be funded 
require all CDBG-MIT grantees and their subrecipients to strengthen 
their program management capacity, financial management, and internal 
controls. The Main CDBG-MIT Notice also states the Department's intent 
to establish special grant conditions for individual CDBG-MIT grants 
based upon the risks posed by the grantee, including risks related to 
the grantee's capacity to carry out the specific programs and projects 
proposed in its action plan. These conditions are designed to provide 
additional assurances that oversight of CDBG-MIT funds addresses 
grantee-specific risks, such as the potential for waste, fraud, and 
abuse, or the potential failure to effectively operate and maintain 
mitigation projects.
    This notice imposes the requirements of the Prior Notices as 
amended by provisions in this notice or by subsequent notices, to the 
CDBG-MIT grants allocated by this notice.\1\ The requirements of the 
Appropriations Act apply in lieu of the requirements of Public Law 115-
123, which is referenced in the Prior Notices. The amount of CDBG-MIT 
funding grantees must expend to mitigate risks within the HUD-
identified MID areas is listed in

[[Page 562]]

Table 1 (below). In accordance with the Appropriations Act, HUD's 
allocation of CDBG-MIT funds in Table 1 is based on each grantee's 
proportional share of total CDBG-DR funds allocated for all eligible 
disasters in 2018. Table 2 contains the total mitigation allocations 
for 2015 through 2018 disasters under Public Laws 115-123 and 116-20.
---------------------------------------------------------------------------

    \1\ This notice is only applicable to grantees receiving a CDBG-
MIT grant under Public Law 116-20 in response to a 2018 disaster.

                   Table 1--Total Allocation for Mitigation Activities Under Public Law 116-20
----------------------------------------------------------------------------------------------------------------
                                                                   Minimum amount that
                                                Total allocation   must be expended in
                                                for CDBG-MIT for    the HUD-identified    HUD-identified ``most
      Disaster No.             Grantee           2018 disasters    ``most impacted and        impacted and
                                                under Public Law    distressed'' areas     distressed'' areas
                                                     116-20           listed herein
----------------------------------------------------------------------------------------------------------------
4413...................  State of Alaska....           $2,288,000           $1,144,000  Anchorage, Borough.
4357...................  American Samoa.....            1,470,000            1,470,000  All components of
                                                                                         American Samoa.
4407; 4382.............  State of California           64,907,000           32,453,500  Butte, Lake, Los
                                                                                         Angeles, and Shasta
                                                                                         Counties.
4399...................  State of Florida...           46,926,000           23,463,000  Bay, Calhoun, Gulf and
                                                                                         Jackson Counties; 32321
                                                                                         (Liberty), 32327
                                                                                         (Wakulla), 32328
                                                                                         (Franklin), 32346
                                                                                         (Wakulla and Franklin),
                                                                                         32351 (Gadsden), and
                                                                                         32428 (Washington) Zip
                                                                                         Codes.
4400...................  State of Georgia...            2,669,000            1,334,500  39845 (Seminole) Zip
                                                                                         Code.
4366...................  Hawaii County, HI..            6,862,000            6,862,000  Hawaii County.
4365...................  Kauai County, HI...              585,000              292,500  96714 (Kauai) Zip Code.
4393...................  State of North                34,619,000           17,309,500  Brunswick, Carteret,
                          Carolina.                                                      Columbus, Craven,
                                                                                         Duplin, Jones, New
                                                                                         Hanover, Onslow,
                                                                                         Plender, and Robeson
                                                                                         Counties; 28352
                                                                                         (Scotland), 28390
                                                                                         (Cumberland), 28433
                                                                                         (Bladen), and 28571
                                                                                         (Pamlico) Zip Codes.
4396 & 4404............  The Commonwealth of           16,225,000            8,112,500  Saipan and Tinian
                          the Northern                                                   Municipalities.
                          Mariana Islands.
4394...................  State of South                 4,598,000            2,299,000  Horry and Marion
                          Carolina.                                                      Counties; 29536
                                                                                         (Dillion) Zip Code.
4377...................  State of Texas.....            4,652,000            2,326,000  Hidalgo County.
4402...................  State of Wisconsin.              980,000              490,000  53560 (Dane) Zip Code.
                                             -------------------------------------------------------------------
    Total..............  ...................          186,781,000           97,556,500
----------------------------------------------------------------------------------------------------------------
* This table is intended to reflect 2018 CDBG-MIT awards. To view previous CDBG-MIT grantees, see Table 2.


                                    Table 2--Total Allocations for Mitigation Activities for 2015 Through 2018 Disasters Under Public Laws 115-123 and 116-20
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
             Disasters              2015, 2016, and 2017 disasters  2015, 2016, and 2017 disasters  2015, 2016, and 2017 disasters          2018 disasters
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Appropriations Act................  Public Law 115-123............  Public Law 115-123............  Public Law 115-123............  Public Law 116-20............
Date of Enactment.................  February 09, 2018.............  February 09, 2018.............  February 09, 2018.............  June 06, 2019................
Date of Applicable Federal          August 30, 2019...............  September 10, 2019............  January 27, 2020..............
 Register Notice.
Federal Register Notice Reference   85 FR 45838...................  84 FR 47528...................  85 FR 4676....................
 Number.
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------


 
        Mitigation grantees                                                                                                                                                    Totals
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
State of Alaska...................  $0............................  $0............................  $0............................  $2,288,000...................  $2,288,000
American Samoa....................  0.............................  0.............................  0.............................  1,470,000....................  1,470,000
State of California...............  88,219,000....................  0.............................  0.............................  64,907,000...................  153,126,000
State of Florida..................  633,485,000...................  0.............................  0.............................  46,926,000...................  680,411,000
State of Georgia..................  26,961,000....................  0.............................  0.............................  2,669,000....................  29,630,000
Hawaii County, HI.................  0.............................  0.............................  0.............................  6,862,000....................  6,862,000
Kauai County, HI..................  0.............................  0.............................  0.............................  585,000......................  585,000
State of Louisiana................  1,213,917,000.................  0.............................  0.............................  0............................  1,213,917,000
State of Missouri.................  41,592,000....................  0.............................  0.............................  0............................  41,592,000
State of North Carolina...........  168,067,000...................  0.............................  0.............................  34,619,000...................  202,686,000
State of South Carolina...........  157,590,000...................  0.............................  0.............................  4,598,000....................  162,188,000
Columbia, SC......................  18,585,000....................  0.............................  0.............................  0............................  18,585,000
Lexington County, SC (Urban         15,185,000....................  0.............................  0.............................  0............................  15,185,000
 County).
Richland County, SC (Urban County)  21,864,000....................  0.............................  0.............................  0............................  21,864,000
State of Texas....................  4,297,189,000.................  0.............................  0.............................  4,652,000....................  4,301,841,000
Houston, TX.......................  61,884,000....................  0.............................  0.............................  0............................  61,884,000
San Marcos, TX....................  24,012,000....................  0.............................  0.............................  0............................  24,012,000
The Commonwealth of the Northern    0.............................  0.............................  0.............................  16,225,000...................  16,225,000
 Mariana Islands.
The Commonwealth of Puerto Rico...  0.............................  0.............................  8,285,284,000.................  0............................  8,285,284,000
State of West Virginia............  106,494,000...................  0.............................  0.............................  0............................  106,494,000
State of Wisconsin................  0.............................  0.............................  0.............................  980,000......................  980,000
U.S. Virgin Islands...............  0.............................  774,188,000...................  0.............................  0............................  774,188,000
                                   -------------------------------------------------------------------------------------------------------------------------------------------------------------
    Totals........................  6,875,044,000.................  774,188,000...................  8,285,284,000.................  186,781,000..................  16,121,297,000
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

II. Use of CDBG-MIT Funds

    Funds allocated under this notice are subject to the requirements 
of the Prior Notices, as amended by this notice or subsequent notices. 
This notice outlines additional requirements imposed by the 
Appropriations Act that apply to funds allocated under this notice.

[[Page 563]]

    HUD recognizes that grantees receiving an allocation of CDBG-MIT 
funds of less than $5,000,000 may realize meaningful mitigation 
outcomes and minimize associated administrative costs by using these 
funds for a limited number of targeted mitigation activities and 
projects. HUD will provide technical assistance, when appropriate, for 
grantees receiving an allocation of less than $5 million in CDBG-MIT 
funds and who adopt this targeted approach. Like all uses of CDBG-MIT 
funds, use of funds for a targeted number of activities must mitigate 
specific current and future risks identified in the grantee's 
Mitigation Needs Assessment and benefit MID areas. All grantees should 
also maximize the impact of available funds by encouraging leverage, 
private-public partnerships, and coordination with other Federal 
programs.

II.A. Action Plan, Substantial Amendments, and Amendments for Covered 
Projects

    Action plan. Before the Secretary obligates CDBG-MIT funds to a 
grantee, the Appropriations Act requires the grantee to submit a plan 
to HUD for approval detailing the proposed use of all funds. The plan 
must include the required elements of the action plan described in 
section V.A.2. of the Main CDBG-MIT Notice. For example, the plan must 
include a risk-based Mitigation Needs Assessment that identifies and 
analyzes all significant current and future disaster risks and provide 
a substantive basis for the activities proposed, pursuant to this 
notice and section V.A.2.a.(1) of the Main CDBG-MIT Notice (84 FR 
45847). The action plan must describe how funded activities satisfy the 
requirements of the Main CDBG-MIT Notice, including how all proposed 
activities meet the definition of mitigation activities as defined in 
section II.A. of the Main CDBG-MIT Notice. As described in section 
II.B. of the Main CDBG-MIT Notice, grantees must describe in their 
action plan how they have coordinated and will continue to coordinate 
with other partners who manage FEMA and USACE funds and describe the 
actions that they have taken to align proposed activities with other 
federal, state, and local mitigation projects and planning processes.
    Covered Projects. To allow for a more detailed review of larger 
projects, the Main CDBG-MIT Notice requires that infrastructure 
projects that also meet the definition of a Covered Project be included 
in an action plan or a substantial action plan amendment. The Main 
CDBG-MIT Notice defines a Covered Project as an infrastructure project 
having a total project cost of $100 million or more, with at least $50 
million of CDBG funds (regardless of source (CDBG-DR, CDBG-National 
Disaster Resilience (NDR), CDBG-MIT, or CDBG)). Covered Projects 
proposed by a grantee receiving funds pursuant to this notice are 
subject to the requirements for Covered Projects, which are primarily 
located in sections V.A.2.h. and V.A.13.b. of the Main CDBG-MIT Notice.
    Amendments. A grantee must amend its action plan to update its 
Mitigation Needs Assessment, modify or create new activities, or 
reprogram funds, as appropriate. Each amendment must be highlighted, or 
otherwise identified within the context of the entire action plan. The 
beginning of every substantial amendment must include a: (1) Section 
that identifies exactly what content is being added, deleted, or 
changed; (2) chart or table that clearly illustrates where funds are 
coming from and where they are moving to; (3) revised budget allocation 
table that reflects the entirety of all funds, as amended; and (4) a 
description of how the amendment is consistent with the grantee's 
Mitigation Needs Assessment. A grantee must amend its action plan in 
accordance with section V.A.2.g. of the Main CDBG-MIT Notice, as 
amended by the 2020 Omni Notice, as further modified by this notice. In 
the 2020 Omni Notice, HUD clarified that a substantial amendment is not 
subject to the public hearing requirements for the initial action plan 
that are described in section V.A.3.a. of the Main CDBG-MIT Notice.
    As discussed in section III.B. of this notice, grantees that 
received a CDBG-MIT allocation pursuant to Public Law 115-123 must 
submit a substantial amendment to its approved CDBG-MIT action plan.

II.B. Most Impacted and Distressed Areas

    The Appropriations Act made CDBG-MIT funds available for eligible 
activities related to the mitigation of risks within the MID areas 
resulting from 2018 disasters. Table 1 identifies the HUD-identified 
MID areas for CDBG-MIT funds under this notice only. The amount of 
funding grantees must expend to mitigate risks within the HUD-
identified MID areas under this notice is also listed in Table 1. In 
some instances, HUD has identified the entire jurisdiction of a grantee 
as the HUD-identified MID area. For all other CDBG-MIT grantees, HUD is 
requiring that at least 50 percent of all CDBG-MIT funds must be used 
for mitigation activities that address identified risks within the HUD-
identified MID areas.
    Note that if HUD designates a ZIP Code for 2018 disasters as a MID 
area for purposes of allocating funds, the grantee may expand program 
operations to the whole county (county is indicated in parentheses next 
to the ZIP Code) as a MID area. For CDBG-MIT funds under this notice 
only, a grantee should indicate its decision to expand eligibility to 
the whole county in its action plan.
    A grantee may use up to 5 percent of the total grant award (plus 5 
percent of program income generated by the grant) for grant 
administration and no more than 15 percent of its total grant amount on 
planning costs. HUD will include 50 percent of a grantee's expenditures 
for grant administration in its determination that 50 percent of the 
total award has been expended in the HUD-identified MID areas. 
Additionally, expenditures for planning activities may be counted 
towards a grantee's 50 percent MID expenditure requirement, provided 
that the grantee describes in its action plan how those planning 
activities benefit the HUD-identified MID areas.
    HUD may approve a grantee's request to add other areas to the HUD-
identified MID areas based upon the grantee's submission of a data-
driven analysis that illustrates the basis for designating the 
additional area as most impacted and distressed as a result of the 
qualifying 2018 disaster. A grantee seeking to amend its HUD-identified 
MID area for purposes of its CDBG-MIT grant for 2018 disasters must 
also amend the HUD-identified MID area for its corresponding CDBG-DR 
grant(s) for 2018 disasters. Grantees proposing to add to the HUD-
identified MID area for their existing CDBG-DR grant do so through a 
substantial amendment that includes a consideration of unmet housing 
recovery needs. The grantee must also undertake a substantial amendment 
to its CDBG-MIT action plan so that the HUD-identified MID areas are 
the same across both grants. The grantee may submit the substantial 
amendments for both grants simultaneously.
    Grantees may determine where to use the remaining 50 percent of the 
CDBG-MIT grant (i.e., the grantee-identified MID areas for 2018 
disasters), but that portion of the grant must be used for mitigation 
activities that address identified risks within those areas that the 
grantee determines are most impacted and distressed resulting from the 
major disasters identified by the disaster numbers listed in Table 1. 
The grantee-identified MID areas must be

[[Page 564]]

determined through the use of quantifiable and verifiable data.
    Grantee expenditures for eligible mitigation activities outside of 
the HUD-identified or grantee-identified MID areas for 2018 disasters 
may be counted toward the MID area expenditure requirements provided 
that the grantee can demonstrate how the expenditure of CDBG-MIT funds 
outside of this area will measurably mitigate risks identified within 
the HUD-identified or grantee-identified MID area for 2018 disasters 
(e.g., upstream water retention projects to reduce downstream flooding 
in the HUD-identified MID area).

III. Overview of Grant Process

III.A. Action Plan Process for New CDBG-MIT Grantees Under the 
Appropriations Act (Pub. L. 116-20)

    Grantees that have not received a previous CDBG-MIT allocation 
(Alaska, American Samoa, Hawaii County, Kauai County, the Commonwealth 
of the Northern Mariana Islands, and Wisconsin) must submit an action 
plan pursuant to the requirements in section V.A.2 of the Main CDBG-MIT 
Notice, as superseded by section IV.A.3.b. of this notice (i.e., within 
270 days after the applicability date of this notice). Since March 
2020, HUD has authorized extensions for action plan submissions for 
CDBG-DR and CDBG-MIT grants due to the coronavirus (COVID-19) pandemic. 
The ongoing challenges of the pandemic continue to warrant longer 
submission time frames for grants allocated under this notice. 
Therefore, the deadlines for submitting an action plan in the Main 
CDBG-MIT Notice are superseded by the extended submission time frame in 
section IV.A.3.b. of this notice.
    Grantees that received allocations under the January 2020 Notice 
for 2018 and 2019 disasters submitted information described in section 
VI.A.1. of the February 9, 2018 notice (as amended and updated by 
section IV.B.1. of the January 27, 2020 notice). These submissions 
supported the Secretary's evaluation of grantee capacity and the 
Secretary's certification of proficient financial controls and 
procurement processes and adequate procedures for proper grant 
management required by the Appropriations Act. Rather than resubmit the 
same information for allocations under this notice, grantees are 
required to update those submissions to reflect any material changes. 
This includes updates to the information required by section VI.A.1.a. 
of the February 9, 2018 notice (83 FR 5847), paragraphs (1)-(6), as 
updated and amended by section IV.B.1. of the January 2020 Notice (85 
FR 4686). HUD will consider these updates before granting funds 
allocated by this notice. The submission deadlines in the notices 
referenced in the previous two paragraphs are superseded by deadlines 
set by this notice. HUD will direct grantees to checklists for 
submitting information required by this paragraph.
    Grantees must also submit additional information that the Main 
CDBG-MIT Notice requires of grantees that do not apply to CDBG-DR 
grants. The required information must be submitted by completing the 
checklist on HUD's website titled ``CDBG-MIT Certification Addendum C 
to the Public Law 116-20 and 115-254 CDBG-DR Financial Management and 
Grant Compliance Certification Checklist.'' In the checklist, a CDBG-
MIT grantee must: Indicate how it will strengthen its internal audit 
function; specify the criteria for subrecipient selection and its plans 
to increase subrecipient monitoring, and establish a process for 
promptly identifying and addressing conflicts under the grantee's 
conflict of interest policy.
    If the CDBG-MIT grant is to be administered by an agency that does 
not administer a grantee's corresponding CDBG-DR grant, the 
administering agency for the CDBG-MIT grant must submit the 
documentation for the certification of financial controls and 
procurement processes, and adequate procedures for proper grant 
management as described in section V.A.1.a. of the Main CDBG-MIT 
Notice.
    To begin expending CDBG-MIT funds, the following steps are 
necessary:
     Grantee develops or amends its citizen participation plan 
for disaster recovery per the requirements in section V.A.3 of the Main 
CDBG-MIT Notice.
     Grantee consults with stakeholders, including required 
consultation with affected local governments, Indian Tribes, and public 
housing authorities (as required by section V.A.7 of the Main CDBG-MIT 
Notice).
     Within 210 days of the applicability date of this notice, 
the grantee must submit material updates to documentation for the 
certification of financial controls and procurement processes, and 
adequate procedures for grant management and the Addendum C added to 
Public Law 116-20 and 115-254 CDBG-DR Financial Management and Grant 
Compliance Certification Checklist, as described above.
     Grantee publishes its action plan for mitigation on the 
grantee's required public website for no less than 45 calendar days to 
solicit public comment and convenes the required number of public 
hearings on the proposed plan as required by the Main CDBG-MIT Notice. 
The grantee may convene virtual hearings in lieu of in-person hearings, 
pursuant to the authorization provided below in section IV.A.3.d. of 
this notice.
     Within 270 days of the applicability date of this notice, 
the grantee responds to public comment and submits its action plan 
(which includes Standard Form 424 (SF-424) and certifications), its 
implementation plan and capacity assessment submissions in accordance 
with the requirements in section V.A.1.b. and V.A.2. of the Main CDBG-
MIT Notice, and projection of expenditures and outcomes to HUD as 
described in section IV.A.3.b. and IV.A.3.c. of this notice.
     Grantee requests and receives Disaster Recovery Grant 
Reporting (DRGR) system access and may enter activities into the DRGR 
system before or after submission of the action plan to HUD. Any 
activities that are changed as a result of HUD's review must be updated 
once HUD approves the action plan.
     HUD reviews (within 60 days from date of receipt) the 
action plan according to criteria identified for CDBG-MIT funds, and 
either approves or disapproves the plan as described in section IV.A.2 
of this notice.
     If the action plan is not approved, HUD will notify the 
grantee of the deficiencies. The grantee must then resubmit the action 
plan within 45 days of the notification.
     After the action plan is approved, HUD sends an action 
plan approval letter.
     Prior to transmittal of the grant agreement, HUD notifies 
grantees of its certification of the grantee's financial controls, 
procurement processes and grant management procedures and its 
acceptance of the implementation plan and capacity assessment.
     HUD sends the grant agreement to the grantee.
     Grantee signs and returns the grant agreement to HUD.
     HUD will sign the grant agreement and establish the 
grantee's line of credit to reflect the amount of available funds.
     Grantee posts the final HUD approved action plan on its 
official website.
     Grantee enters the activities from its approved action 
plan into the DRGR system if it has not previously done so and submits 
its DRGR action plan to HUD (funds can be drawn from the line of credit 
only for activities that are established in the DRGR system).
     The grantee must publish (on its website) policies for 
programs and activities implemented by the grantee with CDBG-MIT funds.

[[Page 565]]

     The grantee may draw down funds from the line of credit, 
consistent with the applicable draw down requirements, after the 
Responsible Entity completes applicable environmental review(s) 
pursuant to 24 CFR part 58 or as authorized by the Appropriations Act 
and, as applicable, receives from HUD or the state the Authority to Use 
Grant Funds (AUGF) form and certification.
     Substantial amendments are subject to a 30-day public 
comment period, including posting to the grantee's website, followed by 
a 60-day review period for HUD.

III.B. Substantial Action Plan Amendment Process for Existing Grantees 
Under Prior Appropriations (Pub. L. 115-123)

    A single CDBG-MIT action plan will be used to describe the uses of 
both the existing CDBG-MIT grant under Public Law 115-123 and the new 
CDBG-MIT grant under Public Law 116-20. While each grant remains 
separate, with separate purposes, financial controls, and some other 
distinctions, this combined administrative approach should ease grantee 
burden. Each grantee that previously received a CDBG-MIT allocation 
under the Main CDBG-MIT Notice pursuant to Public Law 115-123 
(California, Florida, Georgia, North and South Carolina, and Texas) is 
required to submit a substantial amendment to its approved CDBG-MIT 
action plan. The substantial amendment must be submitted not later than 
180 days after HUD's full or partial approval of the Public Law 115-123 
CDBG-MIT action plan or not later than 180 days after the applicability 
date of this notice, whichever is later, unless the grantee has 
requested, and HUD has approved an extension of this submission 
deadline. The substantial amendment must include the CDBG-MIT funds 
allocated under this notice and address the requirements of the Prior 
Notices and this notice.
    Grantees that received a CDBG-MIT allocation under the Main CDBG-
MIT Notice have submitted documentation for the certification of 
financial controls and procurement processes, and adequate procedures 
for grant management in section V.A.1.a of the Main CDBG-MIT Notice 
entitled, ``Certification of financial controls and procurement 
processes, and adequate procedures for proper grant management.'' A 
grantee may request that HUD rely on this CDBG-MIT Financial Management 
and Grant Compliance Certification Checklist and supporting 
documentation for the purposes of this mitigation allocation, provided, 
however, that the grantee must update its submissions as described in 
section V.A.1.a. (1)-(6) of the Main CDBG-MIT Notice to reflect any 
material changes in the submissions.
    Additionally, each grantee that received an allocation under the 
Main CDBG-MIT Notice must meet the following requirements to amend its 
approved CDBG-MIT action plan. These steps are only applicable to the 
substantial amendment process to add the CDBG-MIT funds allocated under 
this notice.
     Grantee must consult with stakeholders, including required 
consultation with affected local governments, Indian Tribes, and public 
housing authorities to update its Mitigation Needs Assessment as 
required by section V.A.7. of the Main CDBG-MIT Notice.
     Within 120 days of the applicability date of this notice, 
the grantee updates its submissions for the certification of financial 
controls and procurement processes, and adequate procedures for grant 
management described in section V.A.1.a. of the Main CDBG-MIT Notice to 
reflect any material changes in the submissions.
     Grantee must amend its CDBG-MIT action plan to update its 
Mitigation Needs Assessment in accordance with the requirements 
described in section IV.A.3.a. of this notice. At a minimum, this must 
include the HUD-identified MID areas under this notice in addition to 
those identified in the Main CDBG-MIT Notice and to add in the new 
grant funds allocated by this notice. The grantee may also modify or 
create new activities from its existing CDBG-MIT grant.
     Grantee must publish the substantial amendment to its 
current approved CDBG-MIT action plan on the grantee's required public 
website in a manner that affords citizens, affected local governments, 
Indian Tribes, public housing authorities, and other interested parties 
a reasonable opportunity to examine the amendment's contents and 
provide feedback. The manner of publication must include, at a minimum, 
prominent posting on the grantee's official website for no less than 30 
calendar days to solicit public comment and convene one public hearing 
on the proposed amendment. Each grantee must ensure that mitigation 
program information is available in the appropriate languages for the 
geographic areas to be served (see HUD's LEP Guidance, 72 FR 2732 
(2007)) and take appropriate steps to ensure effective communications 
with persons with disabilities under Section 504 (see, 24 CFR 8.6) and 
the Americans with Disabilities Act (see 28 CFR 35.106).
     Grantee must respond to public comment and submit its 
substantial amendment to HUD (together with SF-424 and the 
certifications in paragraph VI.1. of the Main CDBG-MIT Notice) no later 
than 180 days after the applicability date of this notice.
     HUD will review the substantial amendment within 60 days 
from date of receipt as described in section of IV.A.2. of this notice 
and determine whether to approve the substantial amendment per criteria 
identified in this notice and the Prior Notices.
     HUD will send a substantial amendment approval letter, and 
a new grant agreement to the grantee. If the substantial amendment is 
not approved, a letter will be sent identifying its deficiencies and 
the grantee must then re-submit the substantial amendment within 45 
days of the notification letter.
     Grantee may enter activities into the DRGR system before 
or after submission of the substantial amendment to HUD. Note that, 
while the action plan is consolidated, the DRGR system will maintain 
the necessary and appropriate separations between the two distinct 
CDBG-MIT grants. Any activities that are changed as a result of HUD's 
review must be updated once HUD approves the substantial amendment.
     Grantee must ensure that the HUD-approved substantial 
amendment and currently approved CDBG-MIT action plan are posted 
prominently on its official website. Each grantee's current version of 
its entire action plan must be accessible for viewing as a single 
document at any given point in time, rather than the public or HUD 
having to view and cross-reference changes among multiple amendments.
     Grantee must enter the activities from its published 
substantial amendment into the Disaster Recovery Grant Reporting (DRGR) 
system and submit the updated DRGR action plan (revised to reflect the 
substantial amendment) to HUD within the DRGR system.
     Grantee must sign and return the grant agreement to HUD.
     HUD will sign the grant agreement and will establish the 
grantee's line of credit to reflect the amount of funds made available 
under Public Law 116-20.
     The grantee may draw down funds from the line of credit, 
consistent with the applicable draw down requirements, after the 
Responsible Entity completes applicable environmental review(s) 
pursuant to 24 CFR part 58 or as authorized by the Appropriations Act 
and, as applicable, receives from HUD

[[Page 566]]

or the state the Authority to Use Grant Funds (AUGF) form and 
certification.
     Grantee must amend and submit its projection of CDBG-MIT 
expenditures and performance outcomes with the substantial amendment.

IV. Applicable Rules, Statutes, Waivers, and Alternative Requirements

    This section of the notice describes rules, statutes, waivers, and 
alternative requirements that apply to each grantee receiving an 
allocation under this notice. The Secretary has determined that good 
cause exists to apply each waiver and alternative requirement 
established in the Prior Notices, as amended by this notice, to the use 
of funds under this notice and that such waivers and alternative 
requirements are not inconsistent with the overall purpose of title I 
of the HCDA. 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). Regulatory waiver authority is also 
provided by 24 CFR 5.110, 91.600, and 570.5.
    Grantees may request additional waivers and alternative 
requirements from the Department as needed to address specific needs 
related to their mitigation activities. Grantee requests for waivers 
and alternative requirements must be accompanied by relevant data to 
support the request and must demonstrate to the satisfaction of the 
Department that there is good cause for the waiver or alternative 
requirement. Grantees must work with the assigned CPD representative to 
request any additional waivers or alternative requirements from HUD 
headquarters.
    The following requirements apply only to the CDBG-MIT funds 
appropriated under the Appropriations Act (unless otherwise noted) and 
not to funds provided under the annual formula State or Entitlement 
CDBG programs, the Indian Community Development Block Grant program, or 
those provided under any other component of the CDBG program, such as 
the Section 108 Loan Guarantee Program, or any previous CDBG-MIT 
appropriations, unless otherwise noted. Pursuant to the requirements of 
the Appropriations Acts, waivers and alternative requirements are 
effective five days after they are published in the Federal Register.
    Except as described in this notice or the Prior Notices, statutory 
and regulatory provisions governing the State CDBG program shall apply 
to State grantees receiving a CDBG-MIT grant and statutory and 
regulatory provisions governing the entitlement CDBG program shall 
apply to any local government receiving a CDBG-MIT grant. The 
provisions of 24 CFR part 570, subpart F are waived to authorize 
American Samoa and the Commonwealth of the Northern Mariana Islands to 
administer its CDBG-MIT allocation in accordance with the regulatory 
and statutory provisions governing the State CDBG program, as modified 
by rules, statutes, waivers, and alternative requirements made 
applicable by Federal Register notices. This includes the requirement 
that the aggregate total for administrative and technical assistance 
expenditures by the Commonwealth of the Northern Mariana Islands must 
not exceed 5 percent of any CDBG-MIT grant made pursuant to the 
Appropriations Act, plus 5 percent of program income generated by the 
grant. The Department has determined that good cause exists for a 
waiver and that such waiver is not inconsistent with the overall 
purposes of title I of the HCDA. State and Entitlement CDBG regulations 
can be found at 24 CFR part 570. References to the action plan in these 
regulations shall refer to the action plan that covers the use of the 
CDBG-MIT grants allocated by this notice that is required by section 
V.A. of the Main CDBG-MIT Notice (as made applicable by this notice). 
All references in this notice pertaining to timelines and/or deadlines 
are in terms of calendar days unless otherwise noted. The date of this 
notice shall mean the applicability date of this notice unless 
otherwise noted.

IV.A. Grant Administration and Action Plan Requirements

    IV.A.1. Applicability of waivers, alternative requirements, and 
other requirements. The Prior Notices establish the waivers and 
alternative requirements applicable to grantees receiving funds under 
this notice. For convenience, some of these rules, waivers, and 
alternative requirements are described below in Table 3. In addition, 
this notice extends the waivers and alternative requirements in the 
Prior Notices to Hawaii County and Kauai County, which are subject to 
requirements imposed in 24 CFR part 570, subpart F. However, because 
the Prior Notices do not include waivers and alternative requirements 
to the provisions in 24 CFR part 570, subpart F, this notice amends the 
Prior Notices by also waiving 24 CFR 570.420(c), 24 CFR 570.431(a), and 
24 CFR 570.431(b). The Department has determined that good cause exists 
for a waiver and that such waiver is not inconsistent with the overall 
purposes of title I of the HCDA.

Table 3--Rules, Waivers, and Alternative Requirements Established in the
                              Prior Notices
------------------------------------------------------------------------
                                       Rules, waivers, and alternative
             Citation                            requirement
------------------------------------------------------------------------
                        The Main CDBG-MIT Notice
------------------------------------------------------------------------
84 FR 45844.......................  Pre-award evaluation of management
                                     and oversight of funds.
84 FR 45846.......................  CDBG-MIT Action Plan waiver and
                                     alternative requirement.
84 FR 45852.......................  Citizen participation waiver and
                                     alternative requirement.
84 FR 45853.......................  HUD performance review authorities
                                     and grantee reporting requirements
                                     in the Disaster Recovery Grant
                                     Reporting (DRGR) System.
84 FR 45854.......................  Direct grant administration and
                                     means of carrying out eligible
                                     activities-applicable to State
                                     grantees only.
84 FR 45855.......................  Consolidated plan waiver.
84 FR 45855.......................  Requirement for consultation during
                                     plan preparation.
84 FR 45855.......................  Grant administration
                                     responsibilities, combined
                                     technical assistance and
                                     administration expenditures cap.
84 FR 45855.......................  Operation and maintenance waiver for
                                     CDBG-MIT program income.
84 FR 45856.......................  Planning-only activities applicable
                                     to State grantees only.
84 FR 45856.......................  Overall benefit requirement.
84 FR 45856.......................  Use of the ``upper quartile'' or
                                     ``exception criteria'' for low- and
                                     moderate-income area benefit
                                     activities.
84 FR 45856.......................  National objective waivers and
                                     alternative requirements applicable
                                     to CDBG-MIT funds.
84 FR 45857.......................  Waiver and alternative requirement
                                     for distribution to CDBG
                                     metropolitan cities and urban
                                     counties applicable to State
                                     grantees only.

[[Page 567]]

 
84 FR 45857.......................  Use of subrecipients-applicable to
                                     State grantees only.
84 FR 45857.......................  Recordkeeping.
84 FR 45858.......................  Change of use of real property,
                                     applicable to State grantees only.
84 FR 45858.......................  Responsibility for review and
                                     handling of noncompliance-
                                     applicable to State grantees only.
84 FR 45858.......................  Program income alternative
                                     requirement.
84 FR 45859.......................  Limitation on reimbursement.
84 FR 45859.......................  Prohibition on forced mortgage
                                     payoff.
84 FR 45859.......................  One-for-one replacement housing,
                                     relocation, and real property
                                     acquisition Requirements.
84 FR 45860.......................  Environmental requirements.
84 FR 45861.......................  Duplication of benefits.
84 FR 45862.......................  Procurement.
84 FR 45862.......................  Timely distribution of funds.
84 FR 45862.......................  Review of continuing capacity to
                                     carry out CDBG-funded activities in
                                     a timely manner.
84 FR 45862.......................  Corrective and remedial actions.
84 FR 45863.......................  Noncompliance and grant conditions.
84 FR 45863.......................  Reduction, withdrawal, or adjustment
                                     of a grant, or other appropriate
                                     action.
84 FR 45863.......................  Federal accessibility requirements.
84 FR 45863.......................  Housing-related eligibility waivers.
84 FR 45864.......................  Housing incentives in at-risk
                                     communities.
84 FR 45864.......................  Limitation on emergency grant
                                     payments--interim mortgage
                                     assistance.
84 FR 45864.......................  Acquisition of real property; flood
                                     and other buyouts.
84 FR 45866.......................  Additional LMI national objective
                                     criteria for buyouts and housing
                                     incentives.
84 FR 45867.......................  Alternative requirement for housing
                                     rehabilitation--assistance for
                                     second homes.
84 FR 45867.......................  Flood insurance.
84 FR 45867.......................  Elevation of nonresidential
                                     structures.
84 FR 45868.......................  Requirements for flood control
                                     structure.
84 FR 45868.......................  Waiver and alternative requirement
                                     to permit certain improvements on
                                     private lands.
84 FR 45868.......................  National objective documentation for
                                     economic development activities.
84 FR 45868.......................  Public benefit for certain economic
                                     development activities.
84 FR 45869.......................  Clarifying note on Section 3
                                     resident eligibility and
                                     documentation requirements.
84 FR 45869.......................  Waiver and modification of the job
                                     relocation clause to permit
                                     assistance to help a business
                                     return.
84 FR 45869.......................  Prioritizing small businesses.
84 FR 45869.......................  Underwriting.
84 FR 45869.......................  Limitation on use of funds for
                                     eminent domain.
------------------------------------------------------------------------
                          The 2020 Omni Notice
------------------------------------------------------------------------
85 FR 60822.......................  Waiver and Alternative Requirements
                                     for Use of FEMA-Approved Elevation
                                     Standards for Nonresidential
                                     Structures.
85 FR 60825.......................  Substantial Action Plan Amendment
                                     Requirements for CDBG-MIT Grants.
85 FR 60827.......................  Financial Certification Requirements
                                     under Public Laws 115-254 and 116-
                                     20.
------------------------------------------------------------------------

    IV.A.2. Waiver of 45-day Review Period for CDBG-MIT Action Plan and 
Substantial Action Plan Amendments. The unique qualities and 
requirements of CDBG-MIT are well established in the Main CDBG-MIT 
Notice. CDBG-MIT funds represent an opportunity for grantees to use 
this assistance in areas impacted by recent disasters to carry out 
strategic and high-impact activities to mitigate disaster risk and 
reduce future losses.
    HUD may disapprove an action plan or substantial action plan 
amendment if it is incomplete. HUD works with grantees to resolve or 
provide additional information during the review period to avoid the 
need to disapprove an action plan or substantial action plan 
amendments. There are several issues related to the action plan or 
substantial action plan amendments as submitted that can be fully 
resolved via further discussion and revision during an extended review 
period, rather than through HUD disapproval of the amendments which in 
turn would require grantees to take additional time to revise and 
resubmit their respective amendments. As such, the Secretary has 
determined that good cause exists to waive 24 CFR 91.500(a) to extend 
HUD's action plan review period from 45 days to 60 days.
    IV.A.3. Additional requirements and modifications of requirements 
in the Main CDBG-MIT Notice. The following clarifications or 
modifications apply to all grantees receiving an allocation under this 
notice:
    IV.A.3.a. Substantial amendments for grantees receiving an 
allocation of funds under the Main CDBG-MIT Notice. Grantees that 
received a CDBG-MIT allocation under the Main CDBG-MIT Notice 
(California, Florida, Georgia, North and South Carolina, and Texas) 
must submit a substantial amendment to its CDBG-MIT action plan, 
including an updated Mitigation Needs Assessment, per the requirements 
outlined in this notice, in addition to meeting the requirements for 
substantial amendments under the Main CDBG-MIT Notice and the 2020 Omni 
Notice (85 FR 60825). In particular, the substantial amendment must 
update the risk-based Mitigation Needs Assessment to:
    (1) Identify and analyze the significant current and future 
disaster risks in the MID areas for 2018 disasters and provide a 
substantive basis for the activities proposed in those MID areas. HUD 
notes that a grantee's action plan and Mitigation Needs Assessment in 
response to the Main CDBG-MIT Notice may already include MID areas for 
2018 disasters (if those areas overlap with previous disasters). In 
that case, the grantee must update its needs assessment. Mitigation 
needs evolve over time and grantees are to amend the Mitigation Needs 
Assessment and action plan as conditions change, additional mitigation 
needs are identified, and additional resources become available.

[[Page 568]]

    As a reminder, the agency administering the CDBG-MIT funds must 
consult with other jurisdictions, the private sector and other 
government agencies, as identified above in section III.A. and III.B. 
of this notice. For more information on the consultation requirements, 
a grantee should refer to section V.A.7. of the Main CDBG-MIT Notice.
    As required by section III.A., the grantee must update its 
submissions for the certification of financial controls and procurement 
processes, and adequate procedures for grant management as described in 
section V.A.1.a. of the Main CDBG-MIT Notice to reflect any material 
changes in the submissions within 120 days of the applicability date of 
this notice.
    IV.A.3.b. Action plans and other submission requirements for 
grantees receiving their first CDBG-MIT allocation under this notice. 
Grantees receiving their first allocation of CDBG-MIT funds (Alaska, 
American Samoa, Hawaii County, Kauai County, the Commonwealth of the 
Northern Mariana Islands, and Wisconsin) shall be subject to the 
deadlines for submission of implementation plans and capacity 
assessments, projection of expenditures and outcomes, and action plans, 
as established by this paragraph and paragraph IV.A.3.c. (which 
supersede the deadlines in the Main CDBG-MIT Notice). These grantees 
must submit projection of expenditures and outcomes and an action plan 
not later than 270 days after the applicability date of this notice. As 
required by section III.A. of this notice, the grantee must submit 
material updates to documentation for the certification of financial 
controls and procurement processes, and adequate procedures for grant 
management and the Addendum C added to Public Law 116-20 and 115-254 
CDBG-DR Financial Management and Grant Compliance Certification 
Checklist, within 210 days of the applicability date of this notice.
    IV.A.3.c. Implementation plan and capacity assessment. Grantees 
receiving their first allocation of CDBG-MIT funds under this notice 
(Alaska, American Samoa, Hawaii County, Kauai County, the Commonwealth 
of the Northern Mariana Islands, and Wisconsin) must submit the 
Implementation Plan and Capacity Assessment pursuant to section 
V.A.1.b., including the criteria in V.A.1.b.(1) and V.A.1.b.(2), of the 
Main CDBG-MIT Notice within 270 days of the applicability date of this 
notice.
    IV.A.3.d. Public Hearing Clarification. On March 20, 2020 and in 
response to the COVID-19 pandemic, HUD clarified its requirements for 
public hearings as provided in the Main CDBG-MIT Notice, to include 
virtual public hearings (alone, or in concert with an in-person 
hearing) if the virtual hearings allow questions in real time, with 
answers coming directly from the elected representatives to all 
``attendees.'' HUD is extending this flexibility to grantees receiving 
CDBG-MIT funds pursuant to this notice to facilitate social distancing 
during the public health emergency. CDBG-MIT grantees subject to this 
notice may hold virtual hearings in lieu of in-person public hearings 
to fulfill the public hearing requirements required by section V.A.3.a. 
of the Main CDBG-MIT Notice. Grantees that hold virtual hearings must 
update their citizen participation plans to describe procedures for 
virtual hearings, including how it shall take appropriate steps to 
ensure effective communication as required by 24 CFR 8.6 and provide 
meaningful access for individuals with limited English proficiency.
    For each virtual hearing, the grantee shall provide reasonable 
notification and access for citizens in accordance with the grantee's 
certifications, timely responses to all citizen questions and issues, 
and public access to all questions and responses.
    IV.A.3.e. Consolidated Plan Waiver. The Main CDBG-MIT Notice 
imposes a deadline for grantees to update their consolidated plans. To 
allow grantees receiving allocations under Public Law 116-20 a similar 
extension to revise their consolidated plans for consistency with their 
CDBG-MIT action plans, the following language is added to the waiver 
and alternative requirement provided in section V.A.6. of the Main 
CDBG-MIT Notice to include the CDBG-MIT funds allocated under this 
notice: ``This timeframe to update the consolidated plan shall not 
apply to grantees receiving CDBG-MIT funds under Public Law 116-20 for 
2018 disasters. For a grantee allocated CDBG-MIT funds under Public Law 
116-20, this waiver applies only until a grantee submits its next full 
(3-5 year) consolidated plan, or no later than its Fiscal Year 2022.''
    IV.A.3.f. Use of funds in response to Hurricane Matthew and 
Hurricane Florence (State of North Carolina and South Carolina only). 
The Appropriations Act provides that grantees that received an 
allocation for mitigation activities in response to Hurricane Florence 
may use the CDBG-MIT funds for the same activities, consistent with the 
requirements of the CDBG-MIT grant, in the most impacted and distressed 
areas related to Hurricane Matthew. Additionally, as explained in the 
Main CDBG-MIT Notice in paragraph V.A.5.b., grantees that received an 
allocation for mitigation funding provided by Public Law 115-123 in 
response to Hurricane Matthew may use the CDBG-MIT funds for the same 
activities, consistent with the requirements of the CDBG-MIT grant, in 
the most impacted and distressed areas related to Hurricane Florence. 
Expenditures in the HUD-identified MID areas for both Hurricanes 
Matthew and Florence may count toward the 50 percent expenditure 
requirement for HUD-identified MID areas outlined in Table 1 of this 
notice. In total, South Carolina and North Carolina must expend 50 
percent of the combined total of both CDBG-MIT grants in HUD-identified 
MID areas resulting from Hurricanes Matthew and Florence.

V. Duration of Funding

    The Appropriations Act makes funds available for obligation by HUD 
until expended. This notice requires each grantee to expend 50 percent 
of its CDBG-MIT grant for 2018 disasters on eligible activities within 
six years of HUD's execution of the grant agreement and 100 percent of 
its CDBG-MIT grant for 2018 disasters within twelve years of HUD's 
execution of the grant agreement. HUD may extend the period of 
performance administratively, if good cause for such an extension 
exists at that time, as requested by the grantee and approved by HUD. 
When the period of performance has ended, HUD will close out the grant 
and any remaining funds not expended by the grantee on appropriate 
programmatic purposes will be recaptured by HUD.

VI. Catalog of Federal Domestic Assistance

    The Catalog of Federal Domestic Assistance numbers for the grants 
under this notice are as follows: 14.218 and 14.228.

VII. 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 on HUD's website and in-person 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

[[Page 569]]

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 Information Relay Service at 800-877-8339 
(this is a toll-free number).

John Gibbs,
Principal Deputy Assistant Secretary for Community Planning and 
Development.

Appendix A--Detailed Methodology

Allocation of CDBG-MIT Funds to Most Impacted and Distressed Areas Due 
to 2018 Federally Declared Disasters

    According to Public Law 116-20:
    Provided further, That any funds made available under this 
heading and under the same heading in Public Law 115-254 that remain 
available, after the funds under such headings have been allocated 
for necessary expenses for activities authorized under such 
headings, shall be allocated to grantees, for mitigation activities 
in the most impacted and distressed areas resulting from a major 
disaster that occurred in 2018: Provided further, That such 
allocations shall be made in the same proportion that the amount of 
funds each grantee received under this Act and the same heading in 
division I of Public Law 115-254 bears to the amount of all funds 
provided to all grantees that received allocations for disasters 
that occurred in 2018:
    The Table below shows the total unmet needs for each 2018 
grantee as calculated by HUD, each grantee's share of the unmet 
needs for all 2018 disasters, and the amounts allocated to each 2018 
grantee which are proportional to the total amount each of the 
grantees has been allocated for unmet needs from the aggregate of 
Public Law 116-20 and Public Law 115-254.

----------------------------------------------------------------------------------------------------------------
                                                         Combined allocation   Proportional
                                                           for unmet needs     share of 2018    2018 Mitigation
     FEMA disaster No.                Grantee           (Pub. L. 115-254 and    unmet needs     grants (Pub. L.
                                                           Pub. L. 116-20)          (%)             116-20)
----------------------------------------------------------------------------------------------------------------
4357.......................  American Samoa...........           $23,039,000          0.7869          $1,470,000
4413.......................  State of Alaska..........            35,856,000          1.2247           2,288,000
4407, 4382.................  State of California......         1,017,399,000         34.7504          64,907,000
4399.......................  State of Florida.........           735,553,000         25.1236          46,926,000
4400.......................  State of Georgia.........            41,837,000          1.4290           2,669,000
4365.......................  Kauai County, HI.........             9,176,000          0.3134             585,000
4366.......................  Hawaii County, HI........           107,561,000          3.6739           6,862,000
4396, 4404.................  Commonwealth of the                 254,324,000          8.6867          16,225,000
                              Northern Mariana Islands.
4393.......................  State of North Carolina..           542,644,000         18.5346          34,619,000
4394.......................  State of South Carolina..            72,075,000          2.4618           4,598,000
4377.......................  State of Texas...........            72,913,000          2.4904           4,652,000
4402.......................  State of Wisconsin.......            15,355,000          0.5245             980,000
                             2018 Disasters...........         2,927,732,000        100.0000         186,781,000
----------------------------------------------------------------------------------------------------------------

[FR Doc. 2020-29261 Filed 1-5-21; 8:45 am]
BILLING CODE 4210-67-P