[Federal Register Volume 77, Number 193 (Thursday, October 4, 2012)]
[Notices]
[Pages 60708-60711]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-24426]
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-5663-N-01]
Additional Waiver Granted to and Alternative Requirement for the
Town of Union, New York's CDBG Disaster Recovery Grant
AGENCY: Office of the Assistant Secretary for Community Planning and
Development, HUD.
ACTION: Notice of additional waiver and alternative requirement.
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SUMMARY: This notice describes additional waivers and alternative
requirements applicable to the Community Development Block Grant (CDBG)
disaster recovery grant provided to the town of Union, New York, for
the purpose of assisting in the recovery related to the consequences of
the town's 2011 disasters. HUD previously published in the Federal
Register allocation and application notices applicable to this grant on
April 16, 2012 (77 FR 22583).
DATES: Effective Date: October 9, 2012
[[Page 60709]]
FOR FURTHER INFORMATION CONTACT: Scott Davis, Director, Disaster
Recovery and Special Issues Division, Office of Block Grant Assistance,
Department of Housing and Urban Development, 451 7th Street SW., Room
7286, Washington, DC 20410, telephone number 202-708-3587. Persons with
hearing or speech impairments may access this number via TTY by calling
the Federal Relay Service at 800-877-8339. Facsimile inquiries may be
sent to Mr. Davis at 202-401-2044. (Except for the ``800'' number,
these telephone numbers are not toll-free.)
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Background
II. Applicable Rule, Statute, Waiver and Alternative Requirement
III. Duration of Funding
IV. Catalog of Federal Domestic Assistance
V. Finding of No Significant Impact
I. Background
Section 239 of the Department of Housing and Urban Development
Appropriations Act, 2012 (Pub. L. 112-55, approved November 18, 2011)
(hereinafter, ``the Appropriations Act'') makes available up to $400
million, to remain available until expended, in CDBG funds for
necessary expenses related to disaster relief, long-term recovery,
restoration of infrastructure and housing, and economic revitalization
in the most impacted and distressed areas resulting from a major
disaster declared pursuant to the Robert T. Stafford Disaster Relief
and Emergency Assistance Act of 1974 (42 U.S.C. 5121 et seq.) in 2011.
The law provides that grants shall be awarded directly to a state or
unit of general local government at the discretion of the Secretary.
Based on the damage estimates, the town of Union, New York, received
$10,137,818 in CDBG disaster recovery assistance. HUD previously
published the majority of requirements and waivers applicable to the
town in the Federal Register on April 16, 2012 (77 FR 22583).
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 the
obligation by the Secretary, or use by the recipient, of these funds
and guarantees, except for requirements related to fair housing,
nondiscrimination, labor standards, and the environment (including
requirements concerning lead-based paint), upon: (1) A request by the
grantee explaining why such a waiver is required to facilitate the use
of such funds or guarantees, and (2) a finding by the Secretary that
such a waiver would not be inconsistent with the overall purpose of the
title I of the Housing and Community Development Act of 1974 (HCD Act).
Regulatory waiver authority is also provided by 24 CFR 5.110, 91.600,
and 570.5.
II. Applicable Rule, Statute, Waiver, and Alternative Requirement
The Secretary finds that the waiver and alternative requirement, as
described in this notice, is necessary to facilitate the use of the
town's CDBG disaster recovery funds for the statutory purposes, and is
not inconsistent with the overall purpose of the HCD Act or the
Cranston-Gonzalez National Affordable Housing Act, as amended. Under
the requirements of the Appropriations Act and the Department of
Housing and Urban Development Reform Act of 1989 (42 U.S.C. 3545) (the
HUD Reform Act), regulatory waivers must be justified and published in
the Federal Register. The following waiver and alternative requirement
provides additional flexibility in program design and allows the
grantee to adequately meet statutory requirements unique to this
appropriation. As a result, the waiver and alternative requirement
apply only to the CDBG disaster recovery funds appropriated in the
Appropriations Act, and not to funds provided under the annual
Entitlement CDBG program, or those provided under any other component
of the CDBG program.
Except as described in this notice and the April 16, 2012, Federal
Register notice, statutory and regulatory provisions governing the
Entitlement CDBG program shall continue to apply to the town's
allocation under this notice. Applicable statutory provisions can be
found at 42 U.S.C. 5301 et seq. Applicable entitlement regulations can
be found at 24 CFR part 570.
1. Low-to-moderate income area benefit national objective waiver
and alternative requirement. Section 105(c)(2) and 24 CFR
570.208(a)(1)(i), applicable to CDBG disaster recovery awards, sets out
the requirements for the low- and moderate-income area benefit national
objective. Specifically, activities designed to meet this national
objective must serve an area in which at least 51 percent of the
residents are considered to be of low- and moderate-income. Union, NY,
has requested a waiver allowing activities to meet this national
objective if at least 38 percent of the residents in each of the
service areas can be classified as low- and moderate-income. The town
identified 38% as this is the lowest percentage of low- and moderate-
income persons in the services areas of the proposed infrastructure and
facilities projects.
Union, NY expressed its intent to facilitate a full and complete
recovery, but recognizes that the CDBG disaster recovery funds will not
meet all needs. In its waiver request, the town indicated that damage
estimates for town facilities and infrastructure alone were between $3
and $4 million dollars. Based on these needs, the town determined that
its primary focus is to repair and improve vital infrastructure that
serves and protects more than 50,000 residents of the town. This
assessment utilized Census data, damage estimates, insurance claims,
Federal Emergency Management Agency (FEMA) application data, and Small
Business Administration (SBA) loan data. Given the limited CDBG
disaster recovery funds available, the town prioritized infrastructure
repairs because these improvements will benefit significantly more
residents both immediately and in the face of future flood events.
In making this determination, Union, NY identified and budgeted for
repairs and improvements to critical infrastructure facilities that
will directly benefit and assist recovery in the low- and moderate-
income areas that were affected by the disaster, even though when
considered together with other populations within the service areas of
these facilities, the town recognizes that overall populations served
by repairs are not predominantly low- and moderate-income.
After meeting citizen participation requirements, the town
finalized a budget that includes over $2.3 million for selected
infrastructure and neighborhood facilities. The town provided the
following information to demonstrate that the selected infrastructure
and neighborhood facilities will benefit low- and moderate-income
populations in the disaster-affected area:
a. Westover YMCA ($202,756 budgeted). This multipurpose facility is
located in the Westover Business District and was flooded due to river
waters than overtopped the existing levee. The low- and moderate-income
residential percentage for the area served by the improvement is less
than 51 (approximately 38 percent low- and moderate-income). Westover
itself was one of the most heavily damaged areas (over 14 percent of
parcels experienced substantial damage).
b. Johnson City Water Treatment Plant ($716,000 budgeted). The
water plant storage facility was damaged by the flood and a new
building will be constructed. This plant services the
[[Page 60710]]
entire village of Johnson City as well as two subdivisions. While
Johnson City's low- and moderate-income population is 50.5 percent, the
subdivisions served in addition to Johnson City have lower percentages
of low- and moderate-income residents, reducing the low- and moderate-
income percentage for the service area for this activity to 46.5
percent.
c. Village of Endicott Water Plant ($150,000 budgeted) and Western
Heights Blvd. Water Tank Access ($6,000 budgeted). The project will
provide additional power and repairs to the water plant and the plant's
access road. Approximately 53 percent of the village's population is
low- and moderate-income. However, there are additional areas served by
the plant and when the population of those areas is included in the
service area, the percent of residents that are low- and moderate-
income is reduced to 38.9 percent.
d. Westover Levee Repair/Enhancement ($774,622 budgeted). The levee
surrounding the Westover neighborhood was overtopped, sustaining and
causing significant damage to the levee and surrounding neighborhoods.
The low- and moderate-income residential percentage for the area served
by the improvement is less than 51 (approximately 38 percent low- and
moderate-income). Westover was one of the most heavily damaged areas
from the storm and has a business district that is home to one of the
town's largest employers.
e. North Jackson Avenue Sewer ($20,000 budgeted). The sewer back
flowed and damaged homes in the neighborhood. The low- and moderate-
income residential percentage for the area served by the improvement is
less than 51 (approximately 38 percent low- and moderate-income).
f. Johnson City-Endicott Water Booster Station Repairs ($31,000
budgeted). The low- and moderate-income residential percentage for the
area served by the improvement is less than 51 (approximately 38
percent low- and moderate-income). The booster station was completely
under water during the storm. The town plans on using CDBG disaster
recovery funds for improvements so that water can be provided to the
village of Endicott.
Union, NY also carefully considered other unmet needs within the
community and how it might meet the remaining recovery needs of low-
and moderate-income populations. A local survey of post-flood needs
indicated that many of surveyed households are expected to relocate or
participate in the FEMA-assisted buyout. In addition, the town
consulted Broome County Department of Social Services, which affirms
that the affected households generally received FEMA assistance or
found other means to support their housing needs. The Broome County
Community Organizations Active In Disaster (COAD) and volunteers
interviewed a small sample of households in the town and found that the
majority of households surveyed had housing needs that were not urgent.
Based on this information, the town developed and budgeted for the
housing and acquisition programs described below to ensure CDBG
disaster recovery funds meet other unmet needs of residents,
particularly low- and moderate-income residents. In addition, the town
acknowledges that the planning studies it proposes will identify future
activities and likely result in several amendments to the town's
initial Action Plan based on new information regarding unmet needs:
2. The town has allocated more than $3.9 million to the following
activities where they anticipate that the majority of beneficiaries
will have low- and moderate-incomes:
a. Owner-Occupied Rehabilitation ($601,378 budgeted).
b. Multifamily Rehabilitation ($100,000 budgeted).
c. Homeownership Incentives ($200,000 budgeted).
2. The town has identified other activities that may also benefit
low- and moderate-income households:
a. Acquisition for Open Space ($2,100,378 budgeted).
b. Acquisition for Redevelopment ($950,992 budgeted).
HUD acknowledges that the town also included its Small Business
Program Structural/Capital Repairs and Non-Residential Floodproofing in
this waiver request. The town indicated both activities occur town-
wide. In the activity worksheets that supplement the action plan, the
town states that these activities address the priority of enhancing job
creation or retention for low- and moderate-income persons; however it
has classified these activities as intending to meet the urgent need
national objective. After considering the materials submitted in
support of the town's waiver request, HUD has determined the requested
waiver will not extend to these activities. The town identified these
activities as part of their priority for low- and moderate-income job
creation and retention, the service areas for these activities have not
been identified, and the town has indicated that it plans to continue
its analysis of unmet needs for its low- and moderate-income
populations.
HUD has reviewed the information submitted by the town in its
Action Plan and other supporting documentation in conjunction with the
Department's review of this waiver request. In its funding allocation
methodology, HUD estimated the severe unmet needs of the most impacted
counties in each state using the best available data at the time. In
its application, the town provided updated estimates of severe damage
to storm water facilities, sanitary sewer plans, and water treatment
plants and explained its rationale for prioritizing repair to these
facilities. The town indicated that since the storm damaged critical
utility service facilities, it prioritized infrastructure repairs to
significantly benefit residents both immediately and in the face of
future flood events. Also, the town's surveys of homeowners and
businesses indicate that the need for repair of infrastructure is
greatest. The town's submissions provide a sound basis for why a waiver
is necessary to facilitate the use of CDBG disaster recovery funds.
The town's submissions also support a finding that a waiver of
section 105(c)(2) in conjunction with alternative requirements is not
inconsistent with title I of the HCD Act. The town will be able to
address its most critical unmet needs, while also ensuring it is able
to dedicate at least 50 percent of its entire CDBG-DR award to
activities that benefit low- and moderate-income persons. Maps of
affected areas and other information provided by the town demonstrate
the unique circumstances faced within areas affected by Hurricane
Irene. The maps show flood inundation to be greatest in areas that do
not include a majority of the homes occupied by low- and moderate-
income residents. The town's priority is to repair damaged
infrastructure and neighborhood facilities. Although the service areas
of those facilities are often considerably larger than the town's
predominantly low- and moderate-income areas, investment in these
activities will also benefit disaster-affected low- and moderate-income
populations that are within the service area of these facilities. And
finally, although the town concluded based on its initial surveys that
its greatest need is repair of infrastructure, the town has budgeted
CDBG disaster recovery funds for additional studies of unmet needs and
plans to amend its Action Plan as needed based on new information
acquired in the studies.
HUD concludes that good cause exists to support the town's request
for a waiver of section 105(c)(2) of the HCD Act and 24 CFR
570.208(a)(1)(i) and
[[Page 60711]]
imposes the following alternative requirements:
a. Only the activities identified as the Westover YMCA, Johnson
City Water Treatment Plant, Village of Endicott Water Plant, Western
Heights Blvd. Water Tank Access, Westover Levee Repair/Enhancement,
North Jackson Avenue Sewer, and the Johnson City-Endicott Water Booster
Station Repairs, totaling $2,305,891, as detailed in the town of
Union's Action Plan submitted to HUD on July 23, 2012, may utilize this
waiver; and
b. If the above referenced public improvements and public
facilities activities are classified as meeting the low- and moderate-
income area benefit national objective, each must serve an area in
which at least 38 percent of the residents are considered low- and
moderate-income; and must otherwise meet all other applicable
requirements, including those for eligibility and national objective;
and
c. The town must continue to identify the specific resources for
low- and moderate-income households in each amendment to its Action
Plan. If additional unmet disaster recovery needs are subsequently
identified among households with low- and moderate-incomes, the town
must make reasonable efforts to ensure those needs are addressed.
The activities identified above that may utilize the waiver are
only proposed projects at this stage and the town must complete the
environmental review process described in 24 CFR part 58 for each
proposed project. If the town determines that the environmental review
is satisfactory, the town must request and receive a release of funds
from HUD before it can commit funds or take any choice limiting action
with respect to the projects. Approval of this waiver does not
constitute approval of the proposed projects.
As a reminder, CDBG-DR funds used for all infrastructure projects
must not duplicate any benefit or other source of funding, such as that
provided through FEMA's Public Assistance (PA) program. All work funded
with CDBG-DR funds on the above listed projects must be determined as
ineligible under the FEMA PA program.
III. Catalog of Federal Domestic Assistance
The Catalog of Federal Domestic Assistance numbers for the disaster
recovery grants under this Notice are as follows: 14.218; 14.228.
IV. Finding of No Significant Impact
A Finding of No Significant Impact (FONSI) with respect to the
environment has been made in accordance with HUD regulations at 24 CFR
part 50, which implement section 102(2)(C) of the National
Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)). The FONSI is
available for public inspection between 8 a.m. and 5 p.m. weekdays in
the Regulations Division, Office of General Counsel, Department of
Housing and Urban Development, 451 7th Street SW., Room 10276,
Washington, DC 20410-0500. Due to security measures at the HUD
Headquarters building, an advance appointment to review the docket file
must be scheduled by calling the Regulations Division at 202-708-3055
(this is not a toll-free number). Hearing or speech-impaired
individuals may access this number through TTY by calling the toll-free
Federal Relay Service at 800-877-8339.
Dated: September 26, 2012.
Mark Johnston,
Acting Assistant Secretary for Community, Planning and Development.
[FR Doc. 2012-24426 Filed 10-3-12; 8:45 am]
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