Allocation Formula, Applicable Requirements, and Waivers and Suspension of Requirements for Rapid Unsheltered Survivor Housing (RUSH), 58392-58398 [2024-15852]

Agencies

• DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Federal Register Volume 89, Number 138 (Thursday, July 18, 2024)]
[Notices]
[Pages 58392-58398]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-15852]



[[Page 58392]]

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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-6315-N-01]


Allocation Formula, Applicable Requirements, and Waivers and 
Suspension of Requirements for Rapid Unsheltered Survivor Housing 
(RUSH)

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

ACTION: Notice.

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SUMMARY: When the President makes a major disaster declaration under 
the Robert T. Stafford Disaster Relief and Emergency Assistance Act 
(Stafford Act), the affected areas may receive various forms of 
disaster relief. Under the Emergency Solutions Grants (ESG) program, 
HUD typically provides relief through regulatory waivers to affected 
areas. This Notice describes a new form of relief that HUD can provide 
under the ESG program--special ESG grants that HUD designates as Rapid 
Unsheltered Survivor Housing (RUSH) grants for areas that are 
identified as eligible for FEMA Individual Assistance when a ``major 
disaster'' is declared under the Stafford Act (declared disaster 
areas). As authorized by section 231 of the Department of Housing and 
Urban Development Appropriations Act of 2020, HUD may make these grants 
to States or local governments to address the needs of individuals and 
families who are experiencing homelessness or at risk of homelessness 
in declared disaster areas and have needs not otherwise served or fully 
met by existing Federal disaster relief programs. This Notice explains 
HUD's plan for allocating and administering these RUSH grants including 
the funding methodology and applicable requirements for awards. As 
further explained in this Notice, RUSH grants will be made to States or 
local governments for the purpose of assisting individuals and families 
who are experiencing homelessness or at risk of homelessness, have been 
residing in a declared disaster area, and have needs that are not 
otherwise served or fully met by existing Federal disaster relief 
programs. HUD plans to begin making allocations as described in this 
Notice as of the date authorized by the HUD Appropriations Act of 2020. 
HUD welcomes public comments on all aspects of this Notice, 
particularly comments that respond to the questions included in Section 
VIII of this Notice.

DATES: Comment Due Date: September 16, 2024.

ADDRESSES: Interested persons are invited to submit comments regarding 
this Notice. There are two methods for submitting public comments, 
listed below. All submissions must refer to the above-referenced docket 
number (FR-6315-N-01) and title of this Notice.
    Electronic Submission of Comments. Interested persons may submit 
comments electronically through the Federal eRulemaking Portal at 
www.regulations.gov. HUD strongly encourages commenters to submit 
comments electronically. Electronic submission of comments allows the 
commenter maximum time to prepare and submit a comment, ensures timely 
receipt, and enables HUD to make them immediately available to the 
public. Comments submitted electronically through the 
www.regulations.gov website can be viewed by other commenters and 
interested members of the public. Commenters should follow the 
instructions provided on that site to submit comments electronically.
    Submission of Comments by Mail. Comments may be submitted by mail 
to the Regulations Division, Office of General Counsel, Department of 
Housing and Urban Development, 451 7th Street SW, Room 10276, 
Washington, DC 20410-0500.
    Note: To receive consideration as public comments, comments must be 
submitted through one of the two methods specified above. All 
submissions must refer to the docket number and title of this Notice.
    No Facsimile Comments. Facsimile (FAX) comments are not acceptable.
    Public Inspection of Public Comments. All properly submitted 
comments and communications submitted to HUD will be available for 
public inspection and copying between 8 a.m. and 5 p.m., weekdays, at 
the above address. Due to security measures at the HUD Headquarters 
building, an appointment to review the public comments must be 
scheduled in advance by calling the Regulations Division at 202-708-
3055 (this is not a toll-free number). HUD welcomes and is prepared to 
receive calls from individuals who are deaf or hard of hearing, as well 
as individuals with speech or communication disabilities. To learn more 
about how to make an accessible telephone call, please visit https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs. 
Copies of all comments submitted are available for inspection and 
downloading at www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: Norm Suchar, Director, Office of 
Special Needs Assistance, Department of Housing and Urban Development, 
451 7th Street SW, Room 7262, Washington, DC 20410-0500; telephone 
number 202-402-5015 (this is not a toll-free number) or [email protected]. 
HUD welcomes and is prepared to receive calls from individuals who are 
deaf or hard of hearing, as well as individuals with speech or 
communication disabilities. To learn more about how to make an 
accessible telephone call, please visit https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs.

SUPPLEMENTARY INFORMATION:

I. Statutory Authority

    For major disasters declared under the Stafford Act on or after 
December 20, 2019, section 231 of the Department of Housing and Urban 
Development Appropriations Act, 2020, (Section 231) \1\ authorizes HUD 
to use funds recaptured from HUD's homeless assistance grants (e.g., 
Continuum of Care (CoC) Program and Emergency Solutions Grants Program 
(ESG) grants) to make RUSH grants \2\ to States or local governments to 
address the needs of individuals and families who are experiencing 
homelessness or at risk of homelessness in a declared disaster area \3\ 
and whose needs are not otherwise served or fully met by existing 
Federal disaster relief programs. For purposes of RUSH funding, HUD 
understands ``existing Federal disaster relief programs'' to mean the 
Federal and non-Federal cost share under Federal programs that provide 
assistance for the purpose of disaster relief and are permanently 
authorized as of the date of the RUSH award. These programs include the 
Transitional Sheltering Assistance (TSA) program (42 U.S.C. 5170b) and 
Non-Congregate Sheltering (NCS) administered by the Federal Emergency 
Management Agency (FEMA). In addition, Federal duplication of benefit 
requirements apply. For more information about these programs, visit 
FEMA's website.\4\
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    \1\ Public Law 116-94, Division H, Title II, section 231 
(codified at 42 U.S.C. 11364a).
    \2\ RUSH grants provide funding under the ESG program; 
therefore, unless this Notice or a subsequent HUD notice, waiver, or 
rule specifically provides otherwise, RUSH grant funds will be 
governed by the same Federal requirements that apply to ESG grant 
funds authorized under subtitle B of McKinney-Vento Homeless 
Assistance Act.
    \3\ For purposes of this Notice, declared disaster areas are 
areas that are identified as eligible for FEMA Individual Assistance 
when a major disaster is declared under the Stafford Act on or after 
December 20, 2019.
    \4\ https://www.fema.gov/assistance/individual/program.
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II. RUSH Funding Methodology

    The formulas HUD will use to allocate and, if necessary, reallocate 
RUSH

[[Page 58393]]

funding will follow the directive provided at 42 U.S.C. 11364a, rather 
than the allocation and reallocation formulas for annual ESG grant 
amounts at 24 CFR 576.3 and 24 CFR 576.300-575.303. HUD has determined 
that it would be inconsistent with 42 U.S.C. 11364a(c) to allocate the 
RUSH funds according to the annual ESG formula in 24 CFR 576.3 or to 
reallocate those funds as provided by 24 CFR 576.300-575.303 because 
those allocation and reallocation requirements make no account of major 
disasters and rely heavily on the formula for Community Development 
Block Grant (CDBG) funding, which is designed to target community 
development need and distribute annually appropriated funding 
nationwide. In contrast, 42 U.S.C. 11364a(c)(1) requires that RUSH 
funding be allocated ``to States or local governments to address the 
needs of homeless individuals or families or individuals or families at 
risk of homelessness in areas affected by a major disaster declared 
pursuant to the Robert T. Stafford Disaster Relief and Emergency 
Assistance Act (42 U.S.C. 5121 et seq.) on or after December 20, 2019, 
whose needs are not otherwise served or fully met by existing Federal 
disaster relief programs.'' Accordingly, HUD will use the formulas set 
out in sections II.A, B, and C of this Notice to distribute funding 
that becomes available for RUSH grants to meet the directive of 42 
U.S.C. 11364a(c)(1).

A. Initial Allocation

    Consistent with the statutory purpose and scheme, the initial 
allocation of RUSH is designed to provide immediate funding to States 
or local governments capable of acting quickly to meet the unmet 
homeless assistance and homeless prevention needs in declared disaster 
areas. The formula is designed to allow for the rapid identification of 
eligible recipients and the calculation of award amounts from readily 
available data sources. Because section 231 funding is not sufficient 
to keep pace with the needs that RUSH grants are designated to address, 
HUD plans to use minimum threshold requirements to make sure each RUSH 
grant can reasonably be used to address the needs of disaster survivors 
who are experiencing homelessness or at risk of experiencing 
homelessness and whose needs are not served or fully met by existing 
Federal disaster relief programs. Provided that data is available, HUD 
plans to notify States or local governments of their eligibility for a 
RUSH grant within 30 days of a major disaster. Any allocation of RUSH 
funds is subject to the availability of funds. As part of the minimum 
threshold requirements, HUD will apply the funding formula only to 
States or local governments that have jurisdiction over the declared 
disaster areas and have reasonable capacity to address the needs of 
individuals and families experiencing homelessness and at risk of 
homelessness in the declared disaster areas.
    In addition, HUD will apply the funding formula only in cases where 
a major disaster has been declared pursuant to the Robert T. Stafford 
Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.) 
on or after December 20, 2019, and the disaster has severely affected 
survivors who are experiencing homelessness or at risk of experiencing 
homelessness because the disaster has affected housing stock, homeless 
services, or encampments or other locations where people are sleeping. 
For severe disasters, homeless service providers are impacted in three 
distinct ways:
    (1) Disasters disrupt the lives and support networks of individuals 
and families experiencing homelessness resulting in increased need for 
assistance and increased work for homelessness providers.
    (2) Homeless shelters and other facilities for programs that serve 
individuals and families experiencing homelessness could be damaged and 
rendered unavailable, requiring immediate rehabilitation or the 
acquisition of alternative emergency shelter facilities.
    (3) The number of persons experiencing homelessness or at risk of 
experiencing homelessness could increase significantly because 
individuals and families, such as those previously residing with 
friends or family, may become homeless due to their homes being 
damaged.
    Minimum Threshold Requirements for Initial Allocation: HUD may make 
a RUSH allocation when the following criteria are met:
    a. The ESG area includes a declared disaster area (see fn.3);
    b. The ESG area has a high level of homelessness as evidenced by 
the ESG area Point-in-Time (PIT) count having 50 or more people 
experiencing homelessness; and
    i. 0.1% or greater of the population in the declared disaster area 
is experiencing homelessness, or
    ii. in the declared disaster area, the unsheltered population is 
greater than or equal to 30% of the total population experiencing 
homelessness;
    c. There is a high level of displacement as evidenced by one of the 
following:
    i. FEMA has activated TSA or NCS in the disaster declared area 
within the ESG area, or
    ii. In rare circumstances when NCS or TSA are not activated but 
HUD's analysis finds that, in the declared disaster area, there is a 
loss or disrupted usability of a significant number of housing units 
for people experiencing homelessness, homeless services, encampments, 
or other locations where people are sleeping;
    d. Using the formula for the initial allocation described below, 
the potential recipient would receive an initial allocation of at least 
$100,000; and
    e. The potential RUSH recipient is an existing ESG or RUSH 
recipient with at least one grant that has a period of performance that 
has not yet concluded.
    Additionally, HUD will review performance and financial information 
about the potential recipient. HUD will not make a RUSH allocation to a 
recipient if the information currently available to HUD, including 
performance reporting, monitoring results, audits or Inspector General 
reports, or IDIS data regarding draws and expenditures, indicates the 
recipient has not complied with existing ESG or RUSH grant requirements 
or does not have the capacity to administer RUSH funding, unless HUD 
determines those capacity issues or noncompliance concerns are not 
relevant to the use of the RUSH allocation as provided by section 231 
or there are specific conditions that can appropriately mitigate the 
risk with respect to the RUSH funding.
    Formula for Initial Allocation: The initial allocation will be an 
amount equal to the lesser of $3,000,000 in the case of a State and 
$1,000,000 in the case of a local government or the amount determined 
by multiplying the number of persons experiencing sheltered or 
unsheltered homelessness (based on the most recent PIT count) in 
counties or local municipalities that are within the declared disaster 
areas by the Fair Market Rent (FMR) for a 1-bedroom apartment in those 
areas. If the PIT count area does not match the declared disaster area 
and sufficient levels of data is available to do a pro-ration, HUD will 
use the most recent sheltered PIT count data as reported in each CoC's 
Housing Inventory Count and pro-rate the unsheltered PIT count data to 
reflect the extent of homelessness in the declared disaster area. In 
cases where HUD is making allocations to a State and one or more local 
governments, the number of people experiencing homelessness in the 
local governments receiving awards

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will be subtracted from the total for the State.
    To receive a RUSH grant, the State or local government (as defined 
in section 411(1) of the McKinney-Vento Homeless Assistance Act and 
section 100261(1) of the MAP-21 Act) must amend its most recently 
approved Annual Action Plan \5\ to account for the new amount, 
indicating the existing Federal disaster relief program resources, 
including supplemental appropriations, that are available to meet the 
State or local government's needs and how they will use the allocation 
of RUSH funds to meet needs that are not otherwise served or fully met 
by existing Federal disaster relief programs in accordance with 42 
U.S.C. 11364a and this Notice. The State or local government must 
submit its amended plan to HUD as provided in section IV of this 
Notice. Consistent with 42 U.S.C. 11364a, this amendment must include 
updates to the homeless needs portions of the State or local 
government's plan to reflect the estimates of the needs of individuals 
or families experiencing homelessness or individuals or families at 
risk of experiencing homelessness.
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    \5\ https://www.hudexchange.info/programs/consolidated-plan/.
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B. Second Allocation

    Following the initial allocation determined as set forth in section 
II.A, when data to verify the extent of serious damage to the rental 
housing stock and the level of serious unmet need becomes available, 
typically within 60 to 120 days after a major disaster, HUD will 
identify whether the disaster meets the appropriate minimum threshold 
and, subject to the availability of funding, apply the formula 
prescribed below for a second allocation, and subsequently notify the 
jurisdiction.
    Obtaining reliable data immediately after a disaster can be a 
challenge, including serious housing damage for the CDBG-DR program, 
FEMA Housing Impact Assessments, and homeless data available from the 
PIT count on an annual basis. HUD relies on FEMA inspection data, 
generally available 60 to 90 days after a disaster, as the best data 
source for measuring serious unmet needs and the number of seriously 
damaged renter housing units.
    To determine the second allocation, the formula includes data 
elements that can quickly be attained to identify the disaster's impact 
on households that are experiencing homelessness and the number of 
renter units that were damaged because of extenuating factors 
associated with the disaster. This formula allows HUD to quickly 
allocate funds to States or local governments where the most severe 
needs have been established.
    Minimum Threshold Requirements for Second Allocation: For the 
second allocation of RUSH funding, HUD is establishing minimum 
threshold requirements for the entire declared disaster area and 
minimum threshold requirements that apply to each state or local 
government with jurisdiction over a declared disaster area.
    The second allocation may only be provided when a declared disaster 
area meets the following criteria:
    (a) The declared disaster area has a total PIT count of sheltered 
and unsheltered persons of at least 500;
    (b) HUD estimates the serious damage in the declared disaster area 
to be above $50 million.
    Further, a State or local government will only be eligible for a 
second allocation of RUSH funding if it meets the following criteria:
    (a) The State or local government received an initial allocation of 
RUSH; and
    (b) Using the formula for second allocation methodology detailed 
below, the State or local government would receive an allocation of at 
least $100,000.
    If the PIT count area does not match the declared disaster area and 
sufficient data are available to do a pro-ration, HUD will pro-rate the 
PIT count data to reflect the extent of homelessness in the declared 
disaster area.
    Additionally, HUD will review performance and financial information 
about the potential recipient. HUD will not make a RUSH allocation to a 
recipient if the information currently available to HUD, including 
performance reporting, monitoring results, audits or Inspector General 
reports, or IDIS data regarding draws and expenditures, indicates the 
recipient has not complied with existing ESG or RUSH grant requirements 
or does not have the capacity to administer RUSH funding, unless HUD 
determines those capacity issues or noncompliance concerns are not 
relevant to the use of the RUSH allocation as provided by Section 231 
or there are specific conditions that can appropriately mitigate the 
risk with respect to the RUSH funding.
    Formula for Second Allocation: The second allocation to the State 
or local government will be the lesser of $10 million or the sum of the 
amounts calculated by applying the following formula for each county or 
local municipality in which the threshold for making a RUSH allocation 
is met:

[(The most recent Point in Time count for unsheltered and sheltered 
persons) x (36) x (the 1BR Fair Market Rent) x (Seriously Damaged 
Renter Housing Units/Total Renter Units)] + [(Seriously Damaged Renter 
Housing Units) x (0.03) x (the 1BR Fair Market Rent)].
    This formula is a combination of the two calculations shown below. 
The first calculation estimates the impact of the disaster on the 
existing homeless population; the second calculation estimates a 
potential need for ``new'' homeless individuals.
[GRAPHIC] [TIFF OMITTED] TN18JY24.000

    In cases where HUD is making allocations to a State and one or more 
local governments, data regarding number of people experiencing 
homelessness and renter units in the local governments receiving awards 
will be subtracted from the totals for the State.
    The Existing Need formula uses the fraction of an area's rental 
inventory that is seriously damaged by a disaster as a proxy for the 
relative impact of the

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event on people experiencing homelessness, then multiplies that 
fraction by the PIT count and the local cost of 1-bedroom housing unit 
for a period of 36 months. The resulting value estimates the amount 
that would be necessary to provide rapid rehousing and emergency 
shelter to people affected by the disaster who were experiencing 
homelessness at the time.
    The New Need formula calculates the number of renters who were 
affected by the disaster and multiplies that by a factor of .03, which 
estimates the proportion of affected renters who are likely to 
experience homelessness in the aftermath of a disaster and need 
assistance. Those most at risk of displacement are renters or the 
persons residing with family and friends in renter households. This .03 
factor is low because not all seriously damaged rental units will 
include individuals or families at risk of experiencing homelessness. 
Many of those affected will be eligible for FEMA and other kinds of 
assistance; however, some families and individuals at risk will not be 
eligible.
    As with the initial allocation, to receive its second allocation of 
a RUSH grant the State or local government must amend its most recently 
approved Action Plan to account for the new amount, indicating the 
existing Federal disaster relief program resources available to meet 
the State or local government's needs and how it will use the 
allocation of RUSH funds to meet needs that are not otherwise served or 
fully met by the TSA, NCS, or other existing Federal disaster relief 
programs in accordance with 42 U.S.C. 11364a and this Notice. The State 
or local government must submit its amended plan to HUD as provided in 
section IV of this Notice.

C. Multiple Disasters

    If multiple Presidentially declared disasters affect the same area 
over a 12-month period, HUD may find that the combined effects of those 
disasters make the formula for allocating RUSH funding inappropriate to 
address the needs as required by 42 U.S.C. 11364a. If HUD makes this 
finding, HUD may recalibrate the formula as HUD determines necessary to 
reflect the specific data HUD receives with respect to the combined 
effects of the disasters, the availability and use of resources for 
each disaster to date, the status of the existing recovery efforts, and 
reported needs of homeless assistance providers in the affected areas.

D. Reallocation

    Reallocation of RUSH funds may be necessary if a State or local 
government declines RUSH funds, if a recipient fails to make the 
submission for its allocation as provided by this Notice, or if RUSH 
funds are recaptured post-award.
    If a State or local government declines an allocation or fails to 
make the submission for its allocation as provided by this notice, HUD 
may recalculate the formula without the jurisdiction that declines the 
allocation. If there are no changes in the allocation results, HUD will 
retain those funds for future RUSH awards. HUD will recapture any 
unspent RUSH funds remaining post-award and retain those funds for 
future RUSH awards.

III. Applicable Requirements, Suspension of Requirements, and 
Regulatory Waivers

    Unless this Notice or a subsequent HUD notice, waiver, or rule 
specifically provides otherwise, RUSH grant funds will be governed by 
the same Federal requirements that apply to ESG grant funds authorized 
under subtitle B of the McKinney-Vento Homeless Assistance Act.

A. Program Participant Eligibility

    To be eligible for assistance provided with RUSH funds, an 
individual or family must: (1) be ``homeless'' or ``at-risk of 
homelessness'' as those terms are defined at 24 CFR 576.2 or meet the 
new criteria in section 103(b) of the McKinney-Vento Homeless 
Assistance Act; (2) have been residing in a declared disaster area; and 
(3) have needs that will not be served or fully met by the TSA Program 
(42 U.S.C. 5170b), NCS, or and other existing Federal disaster relief 
programs.
    A household will not be required to requalify as homeless or at 
risk of homelessness for purposes of RUSH funds if the household was 
already determined to meet the definition of homeless or at risk of 
homelessness and was receiving ESG assistance when the disaster 
occurred.
    RUSH grants are not subject to the requirements for ``serving youth 
who lack 3rd party documentation or live in unsafe situations'' that 
HUD typically includes in its grant agreements for annual ESG grants, 
because those requirements apply only to grants made under the 
``homeless assistance grants'' heading of the annual appropriations act 
for HUD.

B. Suspension of Requirements

    Section 231(c)(2) of the Department of Housing and Urban 
Development Appropriations Act, 2020 (42 U.S.C. 11364a (c)(2)) 
authorizes HUD to suspend consultation, citizen participation, and 
matching requirements for purposes of the RUSH funds so that recipients 
may deploy the funds quickly in response to a federally declared major 
disaster. Accordingly, HUD is suspending the ESG match requirements in 
section 416(a) of the McKinney-Vento Act and 24 CFR 576.201 for both 
allocations of RUSH funding. As further explained in section IV of this 
Notice, HUD is making limited and conditional suspensions of the 
consultation and citizen participation requirements for RUSH funds as 
follows:
    (1) CoC consultation requirements in section 413(b) of the 
McKinney-Vento Act and 24 CFR 576.400(a):
    a. Initial allocation of RUSH funds: suspended provided that the 
recipient publishes how it will use its allocation, at a minimum, on 
the internet at the appropriate government website or through 
electronic media. See Section IV for the specific requirements related 
to this publication as well as notification and communication methods.
    b. Second allocation of RUSH funds: required.
    (2) Consultation and citizen participations requirements under 
sections 105(e) and 107 of the Cranston-Gonzalez National Affordable 
Housing Act and 24 CFR 91.110, and 91.115:
    a. Initial allocation of RUSH funds: suspended, provided that the 
recipient publishes how it will use its allocation, at a minimum, on 
the internet at the appropriate government website or through 
electronic media. See Section IV for the specific requirements related 
to this publication as well as notification and communication methods.
    b. Second allocation of RUSH funds: In person or remote 
consultation is required; citizen participation is required with a 5-
day public comment period, reduced from the otherwise applicable 30-day 
public comment period. The public hearing may be in person or remote.
    In addition, because this suspension prevents costs paid with 
program income from counting toward match as provided by 24 CFR 
576.201(f) and 576.407(c)(1), HUD is providing prior approval for 
program income to be used as provided by 2 CFR 200.307(e)(2). 
Accordingly, program income may be treated as an addition to the 
Recipient's grant (or the subrecipient's subgrant, if the income is 
generated by the subrecipient's activities), provided that the program 
income is used in accordance with the purposes and

[[Page 58396]]

conditions of that grant or subgrant. Otherwise, program income, as 
defined under 24 CFR 576.2, must be deducted from allowable costs as 
provided by 2 CFR 200.307(e)(1).

C. Regulatory Waivers

    In accordance with 24 CFR 5.110 and 91.600, HUD may provide 
regulatory waivers upon a determination of good cause, subject to 
statutory limitations. A recipient may request waivers from the 
Department as needed to address specific needs related to its recovery 
activities. HUD cannot waive federal civil rights and fair housing 
requirements. Recipients should work with the assigned Community 
Planning and Development representatives to request waivers from HUD 
and include the following information with their request:
    (1) A description of the project;
    (2) A citation to the regulatory requirements that the recipient is 
seeking to have waived;
    (3) An explanation of the pertinent facts and reasons why the 
Secretary should determine that good cause exists for the waiver; and
    (4) A discussion of why the waiver is necessary to address the 
unique unmet needs of a community impacted by a disaster.
    HUD may contact a recipient to obtain additional information 
necessary to evaluate a waiver request.

D. Exemption From Build America, Buy America Preference

    Section 70912(4) of the Build America, Buy America (BABA) Act 
excludes pre and post disaster or emergency response expenditures from 
Federal financial assistance subject to the Buy America preference 
under BABA. Because RUSH grants can only be used for disaster response 
expenditures as described in this Notice, RUSH grants are not subject 
to BABA requirements.

E. Performance Reporting

    RUSH recipients will be required to report on uses of the RUSH 
funds, in their Consolidated Annual Performance and Evaluation Report 
(CAPER) and through submission of project data to the Sage Homeless 
Management Information System (HMIS) Repository. Should a recipient 
need an extension of the reporting deadlines in 24 CFR 91.520(a), they 
may request a waiver as described in III.C. HUD may also require 
recipients to submit quarterly reports to HUD regarding their RUSH 
grants.

IV. Allocation and Amendment Review Process; Program Changes

    The requirements at 24 CFR 576.200, as modified by this Notice, 
shall apply to the amendment review process for RUSH funds allocated as 
described in this Notice. HUD will promptly notify an eligible ESG 
recipient by letter when it determines an allocation is to be made 
available.
    For the initial allocation described in this Notice, the State or 
local government must prepare and submit within 30 days of the initial 
award announcement an amendment to its most recently approved Action 
Plan provided under 24 CFR part 91 to include the new RUSH amount and 
other information described above in section II of this Notice. For the 
second RUSH allocation described in this Notice, the State or local 
government must prepare and submit within 60 days of the second 
allocation award announcement an amendment to its most recently 
approved Action Plan provided under 24 CFR part 91 to include the new 
RUSH amount and other information described above in section II of this 
Notice. The State or local government must submit the signed 
certifications required by 24 CFR 91.325(a) and the relevant program-
specific certifications for the ESG program, as further explained in 
section IX of this Notice, for each amendment submission. HUD may grant 
an extension on the submission of the Action Plan amendment if 
disaster-related circumstances make it unreasonable to submit the 
amendments within the required timeframe, such as extended utility 
outages, major structural damage to personal and private properties in 
the declared disaster areas, or if multiple Presidentially declared 
disasters affect the same area over a 12-month period. Each amendment 
submitted to HUD to receive the RUSH funds described in this Notice 
will be subject to the review process set forth in 24 CFR 91.500, 
except that HUD will expedite its review. HUD may allow the State or 
local government to submit a single amendment covering both allocations 
depending on the timing of the allocations and extenuating 
circumstances.
    As stated in section III.B., HUD is suspending the consultation and 
citizen participation requirements for the initial allocation of RUSH 
funds, provided a recipient publishes how it will use its allocation, 
at a minimum, on the internet at the appropriate government website or 
through other electronic media. In this publication, the recipient must 
describe the activities it will fund with RUSH funds and indicate 
whether, as of the date of that publication, the activity has already 
occurred or has yet to occur. In its notification and communication 
methods, the recipient must also ensure effective communication with 
individuals with disabilities and take reasonable steps to ensure 
meaningful access to persons with limited English proficiency (LEP). 
See 24 CFR 576.407(a) and (b). See also 24 CFR 8.6 (HUD's Section 504 
regulation); 28 CFR 35, Subpart E--Communications (Title II ADA 
regulation); 24 CFR part 1 (Title VI of the Civil Rights Act of 1964).
    To make a change described in 24 CFR 576.200(b) after HUD's award 
of funding, including changing the allocation, distribution, or use of 
RUSH funds, a recipient must amend its consolidated plan as provided by 
24 CFR 91.505 and 576.200(b), except that the recipient is not required 
to comply with any consultation or citizen participation requirements 
for the initial allocation of funds, provided that the recipient 
publishes its planned changes, at a minimum, on the internet at the 
appropriate government website or through other electronic media.

V. Eligible Costs, Including Pre-Award Costs

    The requirements of 24 CFR part 576, subpart B, apply unless 
otherwise suspended or waived as described in this Notice. To ensure 
RUSH funds are used effectively and efficiently, a recipient should 
carefully evaluate the appropriateness and cost effectiveness of 
interventions needed to immediately respond to a disaster.
    RUSH funds may be used to address many short-term disaster response 
needs. Eligible activities outlined in 24 CFR part 576 include costs 
under the following program components: street outreach, emergency 
shelter, homelessness prevention, rapid rehousing, and HMIS. However, a 
recipient must implement procedures to verify and document that RUSH 
funds are used only for needs that are not served or fully met by 
existing Federal disaster relief programs and that RUSH costs meet both 
the applicable cost principles in 2 CFR part 200, subpart E, and 
duplication of benefits requirements discussed in section VI below.
    Importantly, in accordance with the requirements at 24 CFR 576.102, 
a recipient may use RUSH assistance to rehabilitate an emergency 
shelter damaged during the disaster. Often, insurance will cover 
necessary repairs and rehabilitation; however, if the

[[Page 58397]]

emergency shelter does not have sufficient insurance or if there is a 
gap in funding to repair the shelter, RUSH funds may be used to cover 
the costs, subject to the cost principles in 2 CFR part 200, subpart E 
and duplication of benefits requirements discussed in section VI below.
    In accordance with 2 CFR 200.458, HUD is providing prior approval 
of pre-award costs, subject to the following conditions:
    (1) The pre-award costs must satisfy all allowable criteria under 2 
CFR 200.403, except that the pre-award costs may be incurred on any 
date between and including the date of HUD's letter notifying a 
recipient of an initial RUSH allocation and the date immediately 
preceding the start date of the period of performance/budget period for 
the grant.
    (2) The pre-award costs must be necessary for efficient and timely 
performance of eligible RUSH activities.
    (3) Before committing to use RUSH funds to reimburse each pre-award 
cost, a recipient must either make a written determination that the 
pre-award cost is for an activity that is exempt from environmental 
review or categorically excluded and not subject to review under 
related environmental laws and authorities under 24 CFR part 58 or 
verify that the applicable environmental review has been completed and 
a Request for Release of Funds has been approved in accordance with 24 
CFR part 58, if applicable.
    (4) Although the pre-award costs may consist of costs incurred by a 
recipient or its subrecipient(s), the subrecipient must receive the 
recipient's prior written approval before incurring any pre-award costs 
and that written approval must be consistent with all of HUD's 
conditions for prior approval of pre-award costs.
    (5) The documentation supporting each pre-award cost reimbursed 
with RUSH funds must show compliance with each of these conditions for 
HUD's prior approval of pre-award costs.
    (6) A recipient must assume the risk of all pre-award costs it 
incurs or approves before executing its RUSH grant agreement with HUD. 
HUD will not be required to reimburse pre-award costs if for any reason 
the recipient does not receive a RUSH grant, if the grant is less than 
anticipated and inadequate to cover such costs, or if the pre-award 
costs do not meet the conditions listed above.

VI. Duplication of Benefits (DOB) and Agreement To Repay

    Section 312 (42 U.S.C. 5155) of the Robert T. Stafford Disaster 
Relief and Emergency Assistance Act, as amended (42 U.S.C. 5121 et 
seq.) prohibits duplication of benefits for programs that provide 
financial assistance to people or entities suffering losses because of 
a major disaster or emergency. ``Duplication of benefits'' occurs when 
Federal financial assistance is provided to a person or entity through 
a program to address losses resulting from a Federally-declared 
emergency or disaster, and the person or entity has received (or would 
receive, by acting reasonably to obtain available assistance) financial 
assistance for the same costs from any other source (including 
insurance), and the total amount received exceeds the total need for 
those costs. Recipients of RUSH funds must establish and maintain 
adequate procedures to prevent duplication of benefits.

VII. Environmental Review Process During Emergencies Following 
Disasters

    Notwithstanding the provisions of 24 CFR 576.407(d), and in 
accordance with Sec. 100261(3) of MAP-21, activities funded as 
described in this Notice are subject to environmental review by 
responsible entities under 24 CFR part 58. ``Responsible entities'' (as 
defined in 24 CFR 58.2) must assume all of the responsibilities with 
respect to environmental review, decision making, and action required 
under 24 CFR part 58. Additionally, as required by 24 CFR 58.4(a), when 
a State distributes funds to a responsible entity, the State must 
provide for appropriate procedures by which these responsible entities 
will evidence their assumption of environmental responsibilities.
    HUD's environmental review regulations in 24 CFR part 58 include 
two provisions that may be relevant to environmental review procedures 
for activities relating to disaster response and recovery.
    The first is 24 CFR 58.34(a)(10), which provides an exemption for 
certain activities undertaken to control or arrest the effects from 
disasters or imminent threats to public safety. Emergency activities 
for temporary or permanent improvements that do not alter environmental 
conditions and that are limited to protection, repair, or restoration 
activities necessary only to control or arrest the effects of the 
disaster or imminent threats to public safety, including those 
resulting from physical deterioration, may be considered exempt from 
the environmental review process (24 CFR 58.34(a)(10)). Responsible 
entities must document the determination in the environmental review 
record and should contact their HUD Regional Environmental Officer or 
Field Environmental Officer for guidance on applicability of the 
58.34(a)(10) exemption, if needed.
    The second is 24 CFR 58.33(b), which allows for the combined Notice 
of Finding of No Significant Impact (FONSI) and Notice of Intent to 
Request Release of Funds (NOI/RROF) to be disseminated and/or published 
simultaneously with the submission of the RROF. This streamlined 
approach applies when funds are needed on an emergency basis and 
adherence to separate comment periods would prevent the provision of 
assistance to address the immediate threat to public health and safety. 
The FONSI/NOI-RROF must state that (1) funds are needed on an emergency 
basis due to a Presidentially declared disaster or local emergency that 
has been declared by the chief elected official of the responsible 
entity; (2) the public comment and objection periods have been combined 
into one 15-day comment period; and (3) all comments should be 
submitted to both HUD and the Responsible Entity issuing the notice.

VIII. Request for Public Comment

    HUD welcomes comments on all aspects of this Notice, but is 
especially interested in comments on the following subjects:
    (1) HUD has determined that it may make an allocation of RUSH funds 
when FEMA activates its Transitional Sheltering Assistance (TSA) 
Program or Non-Congregate Sheltering (NCS). Is the activation of TSA or 
NCS an appropriate trigger for RUSH?
    (2) As an alternative to FEMA TSA and NCS, what other analysis 
might HUD use to determine a significant number of housing units for 
people experiencing homelessness, homeless services, encampments, or 
other locations where people are sleeping reach the level of severity 
necessary to trigger a RUSH allocation.
    (2) Are there specific ways, other than those identified in section 
II.A of this Notice, in which homeless service providers are impacted 
by severe disasters that HUD should consider with respect to the RUSH 
methodology for allocating funds?
    (3) Are there costs, including pre-award costs, that are not 
identified in section V of this Notice, that HUD should consider 
allowing as eligible costs for RUSH either through regulatory waiver as 
provided by 24 CFR 5.110 or pre-approval as provided by 2 CFR 200.407?
    (4) The Notice proposes a 2-stage allocation with thresholds to 
qualify for

[[Page 58398]]

each. Does this approach appropriately balance the need to issue RUSH 
funds quickly with the need to ensure the disbursement of funds reflect 
actual need?
    (5) The initial allocation will be an amount equal to the lesser of 
$3,000,000 in the case of a State and $1,000,000 in the case of a local 
government or the amount determined by multiplying the number of 
persons experiencing sheltered or unsheltered homelessness (based on 
the most recent Point-in-Time count) in counties or local 
municipalities for which the threshold for making a first RUSH 
allocation is met by the Fair Market Rent for a 1-BR apartment in those 
areas (see Section II.A). Are there other formula factors that HUD 
should consider for the initial allocation amount?
    (6) The Notice proposes an allocation based on the sum of two 
formulas, one estimating the impact on the existing population 
experiencing homelessness and the second estimating the potential need 
of ``new'' people experiencing homelessness (see Section II.A and B). 
For communities that meet the threshold for a second allocation, are 
there other formula factors HUD should consider in determining the 
second allocation amount?
    (7) HUD's plan is to allocate RUSH funding to States or local 
governments with the capacity to address the needs of people 
experiencing homelessness. What objective criteria should HUD establish 
to determine the appropriate grantee for RUSH allocations?
    (8) How can the RUSH allocation methodology be modified to allocate 
resources equitably and adequately to address declared disaster areas, 
particularly in cases where a local government does not meet the 
eligibility or threshold requirements for an allocation but is most 
impacted by the disaster?
    (9) In addition to data collected as part of the CAPER, what 
additional data and information should HUD collect to ensure that HUD 
and other stakeholders have an adequate picture of the performance and 
outcomes of RUSH funding?
    (10) How can HUD and other Federal agencies that provide disaster 
assistance make it easier to comply with RUSH duplication of benefits 
requirements?
    (11) HUD is suspending the consultation and citizen participation 
requirements listed in Section III.B for the initial allocation of RUSH 
funds and reducing the public comment to 5 days for the second 
allocation. Realizing that the goal is to distribute RUSH funds 
quickly, do these suspension conditions and limitations provide the 
right balance under the circumstances or should HUD set different 
conditions or limitations on its suspension of consultation and citizen 
participation requirements?
    (12) To ensure that HUD only provides a second allocation to 
recipients who are making adequate progress on their initial 
allocation, are there criteria that HUD should consider when making the 
second allocation to evaluate a recipient's capacity and progress in 
implementing the first allocation?
    (13) Are there any pre-award cost conditions described in Section V 
that would create a significant barrier to response and recovery 
efforts?
    (14) Are there any revisions to this Notice that would add clarity, 
reduce uncertainty, and assist recipients in distributing RUSH funds 
and complying with RUSH requirements?

IX. Certifications

    For purposes of all ESG funds, including RUSH funds, recipients 
must submit certifications as required by the McKinney-Vento Act. 
However, as provided under this Notice, HUD does not require RUSH funds 
to be matched. Therefore, the certifications required for RUSH are the 
same standard ESG certifications HUD requires for annual ESG 
appropriations, except that the match certification is removed. See 
Section III B.

X. Environmental 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 with the posting of this Notice on HUD's 
Funding Opportunities web page at: https://www.hud.gov/program_offices/spm/gmomgmt/grantsinfo/fundingopps.

Marion McFadden,
Principal Deputy Assistant Secretary for Community Planning and 
Development.
[FR Doc. 2024-15852 Filed 7-17-24; 8:45 am]
BILLING CODE 4210-67-P