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