[Federal Register Volume 80, Number 63 (Thursday, April 2, 2015)]
[Notices]
[Pages 17772-17774]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-07622]
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-5696-N-15]
Additional Clarifying Guidance, Waivers, and Alternative
Requirements for Grantees in Receipt of Community Development Block
Grant Disaster Recovery Funds Under the Disaster Relief Appropriations
Act, 2013
AGENCY: Office of the Assistant Secretary for Community Planning and
Development, HUD. ACTION: Notice.
SUMMARY: This Notice provides a waiver and alternative requirement for
the State of New Jersey's tenant-based rental assistance program funded
through its Community Development Block Grant disaster recovery (CDBG-
DR) grant pursuant to the Disaster Relief Appropriations Act, 2013
(Pub. L. 113-2) (the Appropriations Act). In addition, this Notice
provides an alternative requirement for Major (Covered) Infrastructure
Projects funded by grantees receiving an allocation for disasters
occurring in 2013 under the Appropriations Act. This Notice also
modifies a requirement for Disaster Recovery Grant Reporting System
(DRGR) reporting requirements for all grantees receiving an allocation
of CDBG-DR grants pursuant to the Appropriations Act.
DATES: Effective Date: April 7, 2015.
FOR FURTHER INFORMATION CONTACT: Stanley Gimont, Director, Office of
Block Grant Assistance, Department of Housing and Urban Development,
451 7th Street SW., Room 7286, Washington, DC 20410, telephone number
202-708-3587. Persons with hearing or speech impairments may access
this number via TTY by calling the Federal Relay Service at 800-877-
8339. Facsimile inquiries may be sent to Mr. Gimont at 202-401-2044.
(Except for the ``800'' number, these telephone numbers are not toll-
free.) Email inquiries may be sent to [email protected].
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Background
II. Applicable Rules, Statutes, Waivers, and Alternative
Requirements
III. Catalog of Federal Domestic Assistance
IV. Finding of No Significant Impact
I. Background
The Appropriations Act made available $16 billion in Community
Development Block Grant disaster recovery (CDBG-DR) funds for necessary
expenses related to disaster relief, long-term recovery, restoration of
infrastructure and housing, and economic revitalization in the most
impacted and distressed areas resulting from a major disaster declared
pursuant to the Robert T. Stafford Disaster Relief and Emergency
Assistance Act of 1974 (42 U.S.C. 5121 et seq.) (Stafford Act), due to
Hurricane Sandy and other eligible events in calendar years 2011, 2012,
and 2013. On March 1, 2013, the President issued a sequestration order
pursuant to Section 251A of the Balanced Budget and Emergency Deficit
Control Act, as amended (2 U.S.C. 901a), and reduced the amount of
funding for CDBG-DR grants under the Appropriations Act to $15.18
billion. To date, a total of $15.18 billion has been allocated or set
aside: $13 billion in response to Hurricane Sandy, $514 million in
response to disasters occurring in 2011 or 2012, $655 million in
response to 2013 disasters, and $1 billion set aside for the National
Disaster Resilience Competition.
This Notice specifies a waiver and modifies requirements for
grantees in receipt of allocations under the Appropriations Act, which
are described within the Federal Register Notices published by the
Department on March 5, 2013 (78 FR 14329), April 19, 2013 (78 FR
23578), May 29, 2013 (78 FR 32262), August 2, 2013 (78 FR 46999),
November 18, 2013 (78 FR 69104), December 16, 2013 (78 FR 76154), March
27, 2014 (79 FR 17173), June 3, 2014 (79 FR 31964), July 11, 2014 (79
FR 40133), October 7, 2014 (79 FR 60490), October 16, 2014 (79 FR
62182), and January 8, 2015 (80 FR 1039), referred to collectively in
this Notice as the ``Prior Notices.'' The requirements of the Prior
Notices continue to apply, except as modified by this Notice.\1\
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\1\ Links to the Prior Notices, the text of the Appropriations
Act, and additional guidance prepared by the Department for CDBG-DR
grants, are available on the HUD Exchange Web site: https://www.hudexchange.info/cdbg-dr/cdbg-dr-laws-regulations-and-federal-register-notices/.
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II. Applicable Rules, Statutes, Waivers, and Alternative Requirements
The Appropriations Act authorizes the Secretary to waive, or
specify alternative requirements for, any provision of any statute or
regulation that the Secretary administers in connection with HUD's
obligation or use by the recipient of these funds (except for
requirements related to fair housing, nondiscrimination, labor
standards, and the environment). Waivers and alternative requirements
are based upon a determination by the Secretary that good cause exists
and that the waiver or alternative requirement is not inconsistent with
the overall purposes of Title I of the Housing and
[[Page 17773]]
Community Development Act of 1974 (42 U.S.C. 5301 et seq.) (HCD Act).
Regulatory waiver authority is also provided by 24 CFR 5.110, 91.600,
and 570.5.
For the waiver and alternative requirement described in this
Notice, the Secretary has determined that good cause exists and the
waiver is not inconsistent with the overall purpose of the HCD Act.
Grantees may request waivers and alternative requirements from the
Department as needed to address specific needs related to their
recovery activities. Under the requirements of the Appropriations Act,
waivers must be published in the Federal Register no later than five
days before the effective date of such waiver.
1. Tenant-based rental assistance (State of New Jersey only). The
State of New Jersey previously requested a waiver of 42 U.S.C. 5305(a)
in order to provide tenant-based rental assistance to households
impacted by disasters eligible under the Appropriations Act, and the
Department granted this waiver in the Federal Register Notice published
on July 11, 2014 (79 FR 40134). This Notice replaces the waiver in the
Notice published on July 11, 2014, in section II.3 and increases the
amount of funding for this activity by providing an additional $15
million of CDBG-DR funds for tenant- based rental assistance,
increasing the amount covered by the waiver from $17 million to $32
million.
This waiver makes eligible up to $32 million of CDBG-DR funds to be
used for rental assistance, utility payments and, if necessary, rental
costs (i.e., security deposits and utility deposits). This assistance
may be provided on behalf of beneficiaries for a period of up to two
years. The State justified a longer term of assistance in order to meet
the housing needs of vulnerable populations displaced by Hurricane
Sandy until construction of affordable rental units is completed and
those units become available.
On May 30, 2014, the State entered into a Voluntary Compliance
Agreement (VCA) with the Department in response to a complaint filed by
civil rights and fair housing organizations regarding the State's
administration of its CDBG-DR funded recovery programs. The VCA commits
the State to providing an additional $15 million of CDBG-DR funds for
tenant- based rental assistance, increasing the amount covered by the
initial waiver from $17 million to $32 million.
Thousands of households in New Jersey remain displaced and continue
to need housing at a time when the State's housing stock has not fully
recovered from the disaster. The decrease in the housing supply placed
upward pressure on housing costs, making housing less affordable for
households already strained by hurricane-related expenses. By
increasing the amount of funding available for tenant-based rental
assistance, the State will be able to assist more households and to
minimize the incidence of homelessness by providing re-housing and
rental assistance. Additionally, the State will link the assisted
beneficiaries with services that can help them become stable and self-
sufficient. Throughout the rental assistance period, assisted
households will receive referrals to available long-term units, as well
as housing counseling.
After reviewing the State's request, and in accordance with the
VCA, HUD is waiving 42 U.S.C 5305(a) to make eligible an additional $15
million of CDBG-DR funds for rental assistance and utility payments
paid for up to two years on behalf of homeless and at-risk low- and
moderate-income households displaced by Hurricane Sandy when such
assistance or payments are part of a homeless prevention or rapid re-
housing program or activity. The State's tenant-based rental assistance
must be funded through its Supportive Services program, limited to
payments on behalf of beneficiaries of that program as described in the
State's approved Action Plan, and must not be tied to HUD's Section 8
program assistance. This waiver permits the State to review and approve
applications for tenant-based rental assistance on behalf of
beneficiaries from January 1, 2014 to January 1, 2016, and to provide
rental assistance on behalf of approved applicants for up to 24 months,
but in no case may assistance be provided on behalf of a beneficiary
after January 1, 2018. The additional funds provided for the State's
tenant-based rental assistance program through this waiver are subject
to all requirements in the Notice published on July 11, 2014 (79 FR
40133) as well as the requirements of the VCA and any subsequent
amendments to the VCA.
2. Identification/Description of Covered Projects (2013 Disaster
Grantees only). In the Federal Register Notice published on October 16,
2014 (79 FR 62182), the Department modified requirements for Covered
Projects implemented by Hurricane Sandy grantees by stating that
grantees need only provide an estimate of the total project cost and
CDBG-DR contributions, instead of providing the exact amount of
funding. The Department is extending this flexibility to Covered
Projects held to the requirements of the Notice published on June 3,
2014 (79 FR 31964). For any Covered Project held to the requirements of
that Notice, Section V.3.g.1 (``Action Plan for Disaster Recovery
waiver and alternative requirement--Infrastructure Programs and
Projects, Additional Requirements for Major Infrastructure Projects,
Identification/Description''), is modified to require: A description of
the Covered Project, including: total project cost estimate
(illustrating both the CDBG-DR award as well as other federal resources
for the project, such as funding provided by the Department of
Transportation or FEMA), CDBG eligibility (i.e., a citation to the HCD
Act, applicable Federal Register notice, or a CDBG regulation), how it
will meet a national objective, and the project's connection to
Hurricane Sandy or other disasters cited in this Notice. The Department
recognizes that grantees often finance large scale infrastructure
projects by leveraging several sources of funds that may shift over
time. Therefore, the Department may elect to approve projects based on
estimates of total project cost and other funding sources as well as
the CDBG-DR contribution amount.
Grantees are expected to provide the best estimates available and
the expected timeline for determining the exact costs. Grantees must
submit an Action Plan Amendment to reflect any material adjustments to
the cost estimate. Where an adjustment of the CDBG-DR contribution to a
Covered Project triggers the substantial amendment criteria described
in the March 5, 2013 Notice (78 FR 14329) at Section VI.A.3.a. by
exceeding the $1 million threshold, grantees must submit a Substantial
Action Plan Amendment subject to the requirements of that Notice, which
requires no less than 7 calendar days to solicit public comment. All
Covered Projects are subject to the 30-day comment period and public
hearing required by the July 3, 2014, Notice (79 FR 31964). However,
HUD will consider resubmissions of Covered Projects that have fulfilled
the public review requirements and were submitted to HUD prior to the
effective date of this Notice if they are revised only in accordance
with the amended description requirements. Such resubmissions are
subject to non-substantial Action Plan Amendment requirements.
3. Reporting of Responsible Organizations in DRGR (all P.L. 113-2
grantees). In order to draw CDBG-DR funds, grantees must enter an
Action Plan into DRGR that includes all activities to be funded. DRGR
requires
[[Page 17774]]
that at least one Primary Responsible Organization be entered for each
activity, and grantees may choose to add ancillary Responsible
Organizations to an activity. A Dun and Bradstreet Data Universal
Numbering System (DUNS) number must be entered for each Responsible
Organization. The March 5, 2013 Notice (78 FR 14329) required grantees
to enter a DUNS number into the system for any entity carrying out a
CDBG-DR funded activity, including the grantee, recipient(s) and
subrecipient(s), contractor(s) and developers carrying out a CDBG-DR
activity. The language describing DRGR reporting requirements was later
revised in the July 11, 2014 Notice (79 FR 40134) to exclude
requirements for identifying contracts above $25,000. This Notice,
however, did not modify requirements for entering Responsible
Organizations or DUNS numbers. To reduce the reporting burden on
grantees, paragraph II.1.a. at 79 FR 40134 is amended to require that
grantees only enter a DUNS number for the Responsible Organization or
Organizations associated with an activity--with the understanding that
only a single primary Responsible Organization is required to be
identified within grantee DRGR Action Plans--and now reads as follows:
``The Action Plan must also be entered into the DRGR system so that
the grantee is able to draw its CDBG-DR funds. The grantee may enter
activities into DRGR before or after submission of the Action Plan to
HUD. To enter an activity into the DRGR system, the grantee must know
the activity type, national objective, and the organization or
organizations that will be responsible for the activity. In addition, a
Data Universal Numbering System (DUNS) number must be entered into the
system for each entity designated as a Responsible Organization for the
activity.''
Grantees are reminded that this modification applies only to
requirements for DRGR DUNS number reporting and does not change any
other Federal DUNS number reporting requirements.
III. Catalog of Federal Domestic Assistance
The Catalog of Federal Domestic Assistance number for the disaster
recovery grants under this Notice is as follows: 14.269.
IV. Finding of No Significant Impact
A Finding of No Significant Impact (FONSI) with respect to the
environment has been made in accordance with HUD regulations at 24 CFR
part 50, which implement section 102(2)(C) of the National
Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)). The FONSI is
available for public inspection between 8 a.m. and 5 p.m. weekdays in
the Regulations Division, Office of General Counsel, 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: March 27, 2015.
Ann Marie Oliva,
Deputy Assistant Secretary for Special Needs, Community Planning and
Development.
[FR Doc. 2015-07622 Filed 4-1-15; 8:45 am]
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