[Federal Register Volume 81, Number 157 (Monday, August 15, 2016)]
[Notices]
[Pages 54114-54119]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-19394]
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-5961-N-01]
Additional Clarifying Guidance, Waivers, and Alternative
Requirements for Grantees in Receipt of Community Development Block
Grant (CDBG) Disaster Recovery Grant Funds Under the Disaster Relief
Appropriations Act, 2013
AGENCY: Office of the Assistant Secretary for Community Planning and
Development, HUD.
ACTION: Notice.
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SUMMARY: This notice provides clarifying guidance, waivers, and
alternative requirements for Community Development Block Grant Disaster
Recovery (CDBG-DR) grantees in receipt of funds under the Disaster
Relief Appropriations Act, 2013 (the Appropriations Act). This notice
modifies requirements for projects funded by the HUD-sponsored Rebuild
by Design (RBD) competition, described in Federal Register notices
published on July 29, 2013 (78 FR 45551); August 23, 2013 (78 FR
52560); October 16, 2014 (79 FR 62182); and May 11, 2015 (80 FR 26942).
These changes will allow RBD grantees to submit their required
subsequent Action Plan amendments before the RBD project's design has
been finalized, the draft environmental impact statement has been
completed and permits for the project have been issued. Additionally,
this notice modifies requirements of a notice published on March 5,
2013 (78 FR 14329), to allow grantees to submit Action Plan amendments
after June 1, 2017. This notice also modifies requirements for
infrastructure projects funded through the allocation of CDBG-DR funds
for Hurricane Sandy. Specifically, this notice provides waivers and
alternative requirements for certain infrastructure projects funded by
the State of New York, including the Breezy Point Storm Drainage
system, as well as for New York City's Raised Shorelines program. The
notice also provides a waiver of the Housing and Community Development
Act of 1974 (HCDA) to authorize the State of New Jersey to use up to
$30 million of CDBG-DR funds for the provision of up to 21 months of
rental assistance for
[[Page 54115]]
participants in its single-family housing rehabilitation programs. The
waiver for the State of New Jersey expires on December 31, 2017.
DATES: Effective Date: August 22, 2016.
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].
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 (Pub. L. 113-2, approved January 29, 2013)
made available $16 billion in 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 for the National Disaster
Resilience Competition. This notice specifies waivers and alternative
requirements and modifies requirements for Hurricane Sandy grantees in
receipt of allocations under the Appropriations Act, which are
described in the Federal Register notices published by the Department
on March 5, 2013 (78 FR 14329); April 19, 2013 (78 FR 23578); August 2,
2013 (78 FR 46999); November 18, 2013 (78 FR 69104); March 27, 2014 (79
FR 17173); July 11, 2014 (79 FR 40133); October 16, 2014 (79 FR 62182);
April 2, 2015 (80 FR 17772); May 11, 2015 (80 FR 26942); August 25,
2015 (80 FR 51589); November 18, 2015 (80 FR 72102); and February 12,
2016 (81 FR 7567) (referred to collectively in this notice as the
``prior notices'').\1\ The requirements of the prior notices continue
to apply, except as modified by this notice.
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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-drlaws-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 HCDA. Regulatory waiver
authority is also provided by 24 CFR 5.110, 91.600, and 570.5.
For the waivers and alternative requirements described in this
notice, the Secretary has determined that good cause exists and that
the waivers and alternative requirements are not inconsistent with the
overall purpose of title I of the HCDA. 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 5 days before the effective date of
such waiver.
1. Amending the Requirements for Permitting and Design of RBD
projects in the Subsequent Substantial Action Plan Amendment. Paragraph
VI of the October 16, 2014, Federal Register notice (79 FR 62182) (the
RBD notice) establishes requirements for the timing of permits for RBD
projects. The RBD notice requires grantees to submit a subsequent
Action Plan amendment that includes a detailed description of the final
RBD project ``as permitted and approved from the environmental review
process.'' Since the publication of the RBD notice, as RBD projects
have progressed and grantees have further refined implementation
timelines, the Department has determined that it is not feasible to
reach a level of design that facilitates permit issuance prior to the
June 1, 2017, deadline for submission of the subsequent substantial
Action Plan amendments. Many State and Federal agencies do not grant
permits until the project design is complete and construction documents
are complete. To ensure that grantee submissions of the subsequent
substantial Action Plan amendments are not delayed because permits have
not yet been issued, HUD is amending the RBD notice at paragraph VI.4.e
to read:
e. For RBD projects not requiring an Environmental Impact Statement
(EIS) pursuant to the requirements of 24 CFR part 58: Grantee submits a
subsequent substantial Action Plan amendment to reflect the final RBD
project, as described in paragraph VI.6.b. This amendment must include
a detailed description of the final RBD project as permitted and as
approved through the environmental review process, or a detailed
description of the RBD project as approved through the environmental
review process and an explanation of why it is not possible to obtain
permits at the time of submission. If the necessary permits have not
been obtained at the time of the substantial Action Plan amendment
submission, grantees must provide a plan that describes how and when
the permits will be obtained. This amendment may be submitted prior to
or concurrent with a grantee's submission of its Request for Release of
Funds and Certifications (RROF). Following approval of the Action Plan
amendment and RROF, funds from the grantee's line of credit will be
made available for construction (proceed to paragraph VI.4.g).
Paragraph VI.4.f.ii of the RBD notice is amended to read:
Grantee successfully stewards the RBD project through the
environmental review process, pursuant to 24 CFR part 58, and any
permitting processes required to implement the RBD project. If the
project is not permitted, include a description of why it is not
possible to obtain permits at this time and provide a plan that
describes how and when the permits will be obtained.
In addition, paragraph VI.4.f.iii of the RBD notice is amended to
read:
HUD anticipates that the final EIS or other project plan
development may result in material changes to the project after the
grantee submits the subsequent substantial Action Plan amendment
described in paragraph VI.4.f.i. If no material changes have
occurred since the previous RBD project design and scope approved by
HUD in the grantee's Action Plan amendment, as
[[Page 54116]]
determined by the grantee in consultation with HUD, no additional
amendment is necessary. If the RBD project has undergone a material
change, then the grantee must submit a substantial Action Plan
amendment in order to describe the final RBD project, either as
permitted and as approved through the environmental review process,
or including an explanation of why it is not possible to obtain
permits at this time and provide a plan that describes how and when
the permits will be obtained. A grantee may submit its RROF
concurrent with this Action Plan amendment, if applicable, and its
Record of Decision for the project. Following approval of the Action
Plan amendment, if applicable, and RROF, funds from the grantee's
line of credit will be made available for construction.
Paragraph VI of the RBD notice also includes requirements for the
certification of design standards for RBD projects. The RBD notice
requires grantees to submit a subsequent substantial Action Plan
amendment in which ``a registered Professional Engineer (or other
design professional) must certify that the design meets the appropriate
code, or industry design and construction standards.'' HUD has
determined that for most RBD projects, project design at the time of
the subsequent Action Plan amendment submission will only be
preliminary. Before final RBD project designs are complete, a design
professional will not have sufficient information to make this
certification.
Accordingly, the third subparagraph of section VI.6.b of the RBD
notice is amended to read:
Grantees are also responsible for demonstrating that the RBD
project is feasible, including having an appropriate preliminary
design that will result in the benefits proposed. Grantees must
certify that the preliminary design considers the appropriate code,
or industry design and construction standards, and certify that the
final design will adhere to all relevant codes and construction
standards when it is complete. In addition, grantees must have a
registered professional engineer (or other design professional)
certify that the final design met the appropriate code, or industry
design and construction standards, prior to obligation of funds by
the grantee for construction.
2. Clarifying the Requirements of the RBD Subsequent Substantial
Action Plan Amendment and the Timing of the Draft EIS. The RBD notice
at paragraph VI.4.f.i includes requirements for the timeline of
completing a draft EIS on an RBD project prior to or at the same time
as a grantee's submission of the subsequent substantial Action Plan
amendment. The RBD notice requires grantees to have a completed draft
EIS by the time of the submission of the subsequent Action Plan
amendment no later than June 1, 2017. This requirement was designed to
ensure that the RBD project is consistent with the conceptual proposal
as practicable and appropriate. HUD has determined that, as some RBD
projects have progressed and implementation timelines have been
refined, it may not be possible for all grantees to complete a draft
EIS by June 1, 2017.
Accordingly, HUD is allowing grantees to submit a draft EIS after
they have submitted their subsequent Action Plan amendment. However, as
HUD noted in the RBD notice, material changes could take place at
completion of the final EIS, and these changes could also occur after
the subsequent substantial Action Plan amendment is approved and prior
to the completion of the draft EIS. If no material changes have
occurred since the previous RBD project design and scope approved by
HUD in the grantee's subsequent Action Plan amendment, as determined by
the grantee in consultation with HUD, no additional amendment is
necessary. If the RBD project has undergone a material change after
submission of the subsequent Action Plan amendment, as determined by
the grantee in consultation with HUD, then the grantee must submit
another substantial Action Plan amendment in order to describe the
final RBD project as permitted and as approved through the
environmental review process, or include an explanation of why it is
not possible to obtain permits at this time and provide a plan that
describes how and when the permits will be obtained. A grantee may
submit its RROF concurrent with this Action Plan amendment, if
applicable, and its Record of Decision for the RBD project. Following
approval of the Action Plan amendment, if applicable, and RROF, funds
from the grantee's line of credit will be made available for
construction.
Finally, paragraph VI.4.f.i of the RBD notice is amended to read:
i. Grantee submits a subsequent substantial Action Plan
amendment to reflect the final RBD project, as described in
paragraph VI.6.b. This amendment must identify the RBD project scope
and design as it exists at that point. Grantees are not prohibited
from proceeding with the EIS process. HUD approval of this Action
Plan amendment is contingent upon whether the RBD project is
consistent with the conceptual proposal as practicable and
appropriate. HUD will provide clarifying guidance as to the content
and format of materials that will help ensure timely approval of the
Action Plan amendment under the criteria for approval of Action Plan
amendments containing RBD projects described in this notice. If the
Action Plan is not approved, RBD project-related costs will not be
eligible following the date of disapproval until the RBD project is
aligned with the RBD project as proposed in the previously approved
Action Plan.
3. Clarification of RBD Expenditure Extension Requests. The May 11,
2015, Federal Register notice (80 FR 26942) includes requirements for
grantees requesting expenditure extensions for RBD projects. Currently,
a grantee may request an expenditure extension if the grant funds
associated with the program or project at issue were obligated by HUD
through a grant agreement, and, therefore, are already subject to an
established expenditure deadline. Under the May 11, 2015, notice the
timeline and planning of RBD projects are to follow the process
established for National Disaster Resilience (CDBG-NDR) projects. RBD
projects, like CDBG-NDR projects, have already been identified and
grantees are able to more accurately estimate the time frame for
completion of their projects. Grantees are not required to have
obligated funds to a CDBG-NDR project prior to requesting an
expenditure extension.
Accordingly, paragraph VII.2 of the May 11, 2015, Federal Register
notice is amended to read,
(2) The CDBG-DR funds associated with the program or project
must have been obligated by HUD through a grant agreement, and,
therefore, be subject to an established expenditure deadline.
Rebuild by Design (RBD) projects, funded under the eligible
``Rebuild by Design'' activity in paragraph VII.4.c, of the notice
published on October 16, 2014, are exempt from this requirement.
4. Submission of a Final Action Plan Amendment for Disaster
Recovery. HUD is modifying the language in paragraph VI.A.1.a of the
March 5, 2013, Federal Register notice regarding the submission of
Action Plan amendments after June 1, 2017. The March 5, 2013, notice
does not currently allow grantees to submit Action Plan amendments
after June 1, 2017. While grantees must program the use of 100 percent
of their allocated funds by June 1 in an approved Action Plan, HUD
realizes that grantees will continue to need the flexibility of making
both substantial and nonsubstantial Action Plan amendments as their
programs continue to move forward and evolve after the June 1 deadline.
Accordingly, HUD is amending this language to allow grantees to
submit Action Plan amendments after June 1, 2017. Subparagraph a of
section VI.A.1 of the March 5, 2013, notice, as amended by the April
19, 2013, notice, is amended further to read:
Although a grantee may submit a partial Action Plan, the partial
Action Plan must be amended one or more times until it describes
uses for 100 percent of the grantee's CDBG-
[[Page 54117]]
DR award. Due to the statutory requirement that HUD may not obligate
Appropriations Act funds after September 30, 2017, grantees must
submit an Action Plan amendment to HUD that provides for the
allocation of 100 percent of its CDBG-DR funds for its recovery
programs no later than June 1, 2017. Grantees may continue to submit
Action Plan amendments after that date. The requirement, however, to
expend funds within 2 years of the date of obligation will continue
to be enforced relative to each partial obligation made by HUD, as
applicable.
HUD is also similarly modifying paragraph VI.3.e of the November
18, 2013, Federal Register notice (78 FR 69109) to read:
e. Amending the Action Plan. Paragraph 1(k) at 78 FR 14337 of
the March 5, 2013, notice is amended, as necessary, to require each
grantee to submit a substantial Action Plan amendment to HUD within
120 days of the effective date of this notice. All Action Plan
amendments submitted after the effective date of this notice must be
prepared in accordance with the prior notices, as modified by this
notice. In addition, they must budget all, or a portion, of the
funds allocated under this notice. Grantees are reminded that an
Action Plan may be amended one or more times until it describes uses
for 100 percent of the grantee's CDBG-DR award. The last date by
which grantees must submit the Action Plan amendment that provides
for the allocation of 100 percent of its funds for its recovery
programs is June 1, 2017, given that HUD must obligate all CDBG-DR
funds no later than September 30, 2017. Grantees may continue to
submit Action Plan amendments after that date. The requirement,
however, to expend funds within 2 years of the date of obligation
will continue to be enforced relative to each partial obligation
made by HUD.
Paragraph V.4(d) of the June 3, 2014, Federal Register notice (79
FR 31969), is also modified to read:
d. Amending the Action Plan. The prior notices are amended, as
necessary, to require each grantee to submit a substantial Action
Plan amendment to HUD within 120 days of the effective date of this
notice. All Action Plan amendments submitted after the effective
date of this notice must be prepared in accordance with the prior
notices, as modified by this notice. In addition, they must budget
all, or a portion, of the funds allocated under this notice.
Grantees are reminded that an Action Plan may be amended one or more
times until it describes uses for 100 percent of the grantee's CDBG-
DR award. The last date by which grantees must submit the Action
Plan amendment that provides for the allocation of 100 percent of
its funds for its recovery programs is June 1, 2017, given that HUD
must obligate all CDBG-DR funds not later than September 30, 2017.
Grantees may continue to submit Action Plan amendments after that
date. The requirement, however, to expend funds within 2 years of
the date of obligation will continue to be enforced relative to each
partial obligation made by HUD.
Finally, paragraph VII.2.d of the October 16, 2014, Federal
Register notice (79 FR 62191) is modified to read:
d. Amending the Action Plan. Except as otherwise provided for in
this notice, paragraph VI.A.1.k of the March 5, 2013 notice (at 78
FR 14337) is amended, as necessary, to require each grantee to
submit a substantial Action Plan amendment to HUD within 120 days of
the effective date of this notice. All Action Plan amendments
submitted after the effective date of this notice must be prepared
in accordance with the prior notices, as modified by this notice. In
addition, they must budget all, or a portion, of the funds allocated
under this notice. Grantees are reminded that an Action Plan may be
amended one or more times until it describes uses for 100 percent of
the grantee's CDBG-DR award. The last date for grantees to submit
the Action Plan amendment that provides for the allocation of 100
percent of its funds for its recovery programs is June 1, 2017,
given that HUD must obligate all CDBG-DR funds not later than
September 30, 2017. Grantees may continue to submit Action Plan
amendments after that date. The requirement, however, to expend
funds within 2 years of the date of obligation will continue to be
enforced relative to each partial obligation made by HUD.
5. Waiver of Covered project Requirements for Certain
Infrastructure projects Benefiting Multiple Counties (State of New York
only). Paragraph VI.2.g of the November 18, 2013, Federal Register
notice, (at 78 FR 69107), describes additional infrastructure
requirements applicable to grantees receiving an allocation of CDBG-DR
funds under that notice, including requirements for covered projects.
HUD approval is required for each infrastructure project that meets the
definition of a covered project, defined as having a total cost of $50
million or more (including at least $10 million of CDBG-DR funds), or
projects that benefit multiple counties. The Federal Register notice
published on March 27, 2014, clarified that ``benefits multiple
counties'' means that the project is physically located in more than
one county (paragraph II.1.a, Definition of ``Benefits Multiple
Counties,'' at 78 FR 17174). The State of New York has requested an
exemption from the covered project requirements for two infrastructure
projects located in multiple counties and which would meet the
definition of a covered project. These infrastructure projects are
funded through the NY Rising Community Reconstruction (NYRCR) Program.
In its request, the State contends that the NYRCR Program generally
aligns with the goals of the coordination efforts that are reflected in
the covered project requirements, by directly engaging local residents
and business owners across neighboring communities to formulate a
``grassroots'' approach to rebuilding communities through investments
in infrastructure. The Department, however, is providing a waiver of
covered project requirements for the following two infrastructure
projects identified by the State, based on the particular aspects of
each project rather than on the particular components of the NYRCR
Program:
a. Meadowmere Park Bridge Reconstruction project. This $2.25
million project will reconstruct an existing footbridge that was
damaged by the storm. The footbridge links an isolated portion of
Nassau County with a neighboring area in Queens County. The project
cost is significantly less than the funding threshold established for
covered projects (i.e., $50 million in total project costs with at
least $10 million of CDBG-DR funding), and the Department has
determined that the State's investment of CDBG-DR funds to reconstruct
a footbridge that existed prior to the storm, and that happens to span
two counties, does not constitute the type of infrastructure investment
contemplated by the Department when it decided to establish the covered
project requirements.
b. Comprehensive Green Infrastructure Assessment and Implementation
project. This $13.5 million project involves the assessment, design,
and construction of green infrastructure that will be located in
multiple counties that are all located within the City of New York. In
an August 25, 2015, Federal Register notice (80 FR 51592), the
Department provided the City of New York with an exemption from the
covered project requirements for infrastructure projects that would not
otherwise meet the definition of a covered project but that were
located in multiple counties, recognizing that within the City of New
York, the counties are ``subordinate to the municipal government.'' The
Department is now providing a waiver of the covered project
requirements for the comprehensive green infrastructure assessment and
implementation project in continued recognition of the unique
subordinate status of counties located within the City of New York.
6. Waiver of Requirements for New Construction Activities for
Breezy Point Storm Drainage System (State of New York only). The State
of New York has requested a waiver of section 105(a)(4) of the HCDA to
the extent necessary to permit new construction of a storm drainage
system at Breezy Point, a privately held cooperative in Queens, by
classifying the entire system as an
[[Page 54118]]
improvement for residential purposes rather than as a public
improvement under section 105(a)(2) of the HCDA, which would otherwise
preclude assisting private homeowners. The State of New York has
allocated up to $19.5 million in CDBG-DR dollars to fund long-term
initiatives that will protect and enhance the Breezy Point community.
The Breezy Point Cooperative is a residential bungalow community
consisting of 2,837 homes that are primarily wood frame, single family
houses along the Rockaway Peninsula. The storm water drainage
improvement project consists of three activities to address three of
the most flood-prone areas in Breezy Point. One of the three projects
is a storm drain system that would be implemented to collect storm
water and pump it out of the area. In its request to the Department,
the State contends that not funding this activity will leave
residential buildings in Breezy Point, as well as emergency personnel,
resources, and infrastructure, exposed to reoccurring flooding events.
The State also contends that failure to undertake the improvement would
allow for periodic floods to gradually degrade systems, increase the
likelihood of catastrophic failures, and place people, development, and
resources, at continuing and possibly escalating risk. Therefore, for
the State's Breezy Point storm drainage system only, the Department is
waiving section 105(a)4 of the HCDA to the extent necessary to allow
for the new construction associated with this activity.
7. Waiver of requirements on public facility improvement on private
land for the Raised Shorelines Program (New York City only). New York
City has requested a waiver of 24 CFR 570.201(c) and 24 CFR
570.202(a)(1) to the extent necessary to permit new construction of
shoreline improvements on private property. Under the CDBG Entitlement
program regulations at 24 CFR 570.202(a)(1), which are applicable to
units of local government, New York City may use CDBG-DR funds to
finance the rehabilitation of privately owned buildings and
improvements for residential purposes, including grounds improvements
that are incidental to and necessary for housing rehabilitation.
However, this housing rehabilitation provision does not permit the city
to construct new shoreline improvements on privately held land that
would minimize the threat and impact of future inland flooding (a
public benefit). Additionally, the fact that part of the designated
shoreline is privately owned currently precludes the city from funding
this activity as an eligible public facility and improvement under the
CDBG regulations at 24 CFR 570.201(c). To accomplish the mitigation
goals of the resiliency project planned by the city, the physical
improvements must be made to a continuous coastline made up of both
public and private properties. The Raised Shorelines program will
protect vulnerable areas that contain homes and businesses that were
directly damaged or negatively impacted by Hurricane Sandy. The city
has allocated $109 million in HUD CDBG-DR dollars to fund the Raised
Shorelines program and has determined that the construction of
continuous shoreline improvements will not only protect against sea
level rise in the future, but also help with the recovery effort by
restoring damaged shorelines, fortifying vulnerable shorelines against
storm events, and raising shorelines to protect the broader lower-lying
communities against future flooding. Therefore, for the city's Raised
Shorelines program only, the Department is waiving 24 CFR 570.202(a)(1)
to the extent necessary to allow for the city's shoreline improvements
on private property to be classified as an eligible housing
rehabilitation and preservation activity, and to allow for the new
construction associated with this activity. Further, the Department is
waiving section 105(a)(4) of the HCDA to the extent necessary to allow
for the new construction associated with this activity that would
otherwise be prohibited.
8. Waiver to Allow the Use of CDBG-DR Funds for Rental Assistance
for New Jersey Homeowners in the RREM and LMI Homeowners Programs
(State of New Jersey only). In the State of New Jersey, more than 8,000
homeowners are rebuilding their Sandy-damaged homes through the State's
Rehabilitation, Reconstruction, Elevation and Mitigation (RREM) Program
or the Low- and Moderate-Income (LMI) Homeowners Rebuilding Program
(LMI Program). Nearly 3,000 of those homeowners have already completed
construction; however, the majority of remaining applicants, many of
whom are LMI households, are still in the construction phase due to
unanticipated delays and scarcity of available construction and/or
elevation contractors in the State. While undergoing rehabilitation of
their homes, most of these applicants are forced to pay not only a
mortgage payment, but rent as well. In order to provide temporary
financial assistance to these families, the State created the Sandy
Homeowners and Renters Assistance Program (SHRAP), using $100 million
of federal Social Services Block Grant (SSBG) funds, to provide up to
$15,000 to homeowners and renters for rental assistance and/or to
replace storm-damaged appliances. Once SHRAP funds were exhausted, the
State used an additional $19.5 million in SSBG funds to create the
Rental Assistance Program (RAP). The RAP program provided rental
assistance of up to $1,300 per month for up to 9 months to homeowners
with executed RREM or LMI Program grant agreements who are paying rent
because they are displaced by storm damage, construction, or elevation.
The State estimates that these funds will be exhausted by July 2016;
nevertheless, based on their analysis of RAP to date, the State
projects that approximately 20-30 percent of RAP recipients will have
ongoing rental assistance needs after exhausting their RAP assistance.
The majority of those households will be LMI. To address this impending
need, the State of New Jersey has requested to use up to $30 million in
CDBG-DR funds to continue to provide interim rental assistance for up
to 21 months to families rebuilding through RREM or the LMI Program and
who are already in or who apply to the RAP program, once SSBG funds are
exhausted. Without a waiver, the State could not use CDBG-DR funds for
subsistence-type grant payments to individuals or families. Therefore,
in order to allow the State of New Jersey to continue its RAP Program,
HUD is waiving the requirements at section 105(a)(8) of the HCDA to the
extent necessary to allow the State of New Jersey to use up to $30
million of its CDBG-DR allocation to provide up to 21 months of RAP
assistance to eligible RREM and LMI program applicants. The State must
implement this alternative requirement consistent with the approach
outlined in its request and as described herein. This waiver and
alternative requirement shall remain in effect until December 31, 2017,
after which the State will no longer be able to use CDBG-DR funds for
any new applicants to the RAP program.
III. Catalog of Federal Domestic Assistance
The Catalog of Federal Domestic Assistance numbers for the disaster
recovery grants under this notice is 14.269.
VI. Finding of No Significant Impact
A Finding of No Significant Impact (FONSI) with respect to the
environment has been made in
[[Page 54119]]
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 Federal Relay Service at 800-877-8339 (this is a toll-free
number).
Dated: August 8, 2016.
Nani A. Coloretti,
Deputy Secretary.
[FR Doc. 2016-19394 Filed 8-12-16; 8:45 am]
BILLING CODE 4210-67-P