[Congressional Record Volume 167, Number 136 (Sunday, August 1, 2021)]
[Senate]
[Pages S5250-S5255]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 2136. Mr. SCHATZ submitted an amendment intended to be proposed by
him to the bill H.R. 3684, to authorize funds for Federal-aid highways,
highway safety programs, and transit programs, and for other purposes;
which was ordered to lie on the table; as follows:
At the appropriate place in division [__], insert the
following;
SEC. __. CDBG DISASTER RECOVERY.
(a) Short Title.--This section may be cited as the
``Reforming Disaster Recovery Act''.
(b) Findings.--Congress finds that--
(1) following a major disaster declared by the President
under section 401 or the Robert T. Stafford Disaster Relief
and Emergency Assistance Act (42 U.S.C. 5170), the subset or
communities that are most impacted and distressed as a result
or the disaster face critical social, economic, and
environmental obstacles to recovery, including insufficient
public and private resources to address disaster-related
housing and community development needs for lower income
households and distressed communities;
(2) unmet disaster recovery needs, including housing
assistance needs, can be especially widespread among persons
with extremely low, low, and moderate incomes;
(3) economic, social, and housing hardships that affect
communities before disasters arc exacerbated during crises
and can delay and complicate long-term recovery. especially
after catastrophic major disasters;
(4) States, units of local government, and Indian Tribes
within the most impacted and distressed areas resulting from
major disasters benefit from flexibility to design programs
that meet local needs, but face inadequate financial,
technical, and staffing capacity to plan and carry out
sustained recovery, restoration, and mitigation activities;
(5) the speed and effectiveness considerations of long-term
recovery from catastrophic major disasters is improved by
predictable investments that support disaster relief, long-
term recovery, restoration of housing and infrastructure, and
economic revitalization, primarily for the benefit of low-
and moderate-income persons;
(6) undertaking activities that mitigate the effects of
future natural disasters and extreme weather and increase the
stock of affordable housing, including affordable rental
housing, as part or long-term recovery can significantly
reduce future fiscal and social costs, especially within
high-risk areas, and can help to address outstanding housing
and community development needs by creating jobs and
providing other economic and social benefits within
communities that further promote recovery and resilience; and
(7) the general welfare and security of the nation and the
health and living standards of its people require targeted
resources to support State and local governments in carrying
out their responsibilities in disaster recovery and
mitigation through interim and long-term housing and
community development activities that primarily benefit
persons of low and moderate income.
(c) Definitions.--In this section;
(1) Department.--The term ``Department'' means the
Department of Housing and Urban Development.
[[Page S5251]]
(2) Fund.--The term ``Fund'' means the Long-Term Disaster
Recovery Fund established under subsection (e).
(3) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
(d) Duties of the Department of Housing and Urban
Development.--
(1) In general.--The offices and officers of the Department
shall be responsible for--
(A) leading and coordinating the disaster-related
responsibilities of the Department under the National
Response Framework, the National Disaster Recovery Framework,
and the National Mitigation Framework;
(B) coordinating and administering programs, policies, and
activities of the Department related to disaster relief,
long-term recovery, resiliency, and mitigation, including
disaster recovery assistance under title I of the Housing and
Community Development Act of 1974 (4 U.S.C. 5301 et seq.);
(C) supporting disaster-impacted communities as those
communities specifically assess, plan for, and address the
housing stock and housing needs in the transition from
emergency shelters and interim housing to permanent housing
of those displaced, especially among vulnerable populations
and extremely low-, low-, and moderate income households;
(D) collaborating with the Federal Emergency Management
Agency, the Small Business Administration, and across the
Department to align disaster-related regulations and
policies, including incorporation of consensus-based codes
and standards and insurance purchase requirements, and
ensuring coordination and reducing duplication among other
Federal disaster recovery programs;
(E) promoting best practices in mitigation and land use
planning, including consideration of traditional, natural,
and nature-based infrastructure alternatives;
(F) coordinating technical assistance, including
mitigation, resiliency, and recovery training and information
on all relevant legal and regulatory requirements, to
entities that receive disaster recovery assistance under
title I of the Housing and Community Development Act of 1974
(42 U.S.C. 5301 et seq.) that demonstrate capacity
constraints; and
(G) supporting State, Tribal, and local governments in
developing. coordinating, and maintaining their capacity for
disaster resilience and recovery, and developing predisaster
recovery and hazard mitigation plans, in coordination with
the Federal Emergency Management Agency and other Federal
agencies.
(2) Establishment of the office of disaster management and
resiliency.--Section 4 of the Department of Housing and Urban
Development Act (42 U.S.C. 3533) is amended by adding at the
end the following;
``(i) Office of Disaster Management and Resiliency.--
``(1) Establishment.--There is established, in the Office
of the Secretary, the Office of Disaster Management and
Resiliency.
``(2) Duties.--The Office of Disaster Management and
Resiliency shall--
``(A) be responsible for oversight and coordination of all
departmental disaster preparedness and response
responsibilities; and
``(B) coordinate with the Federal Emergency Management
Agency, the Small Business Administration, and the Office of
Community Planning and Development and other offices of the
Department in supporting recovery and resilience activities
to provide a comprehensive approach in working with
communities.''.
(e) Long-Term Disaster Recovery Fund.--
(1) Establishment.--There is established in the Treasury of
the United States an account to be known as the Long-Term
Disaster Recovery Fund.
(2) Deposits, transfers, and credit.--
(A) In general.--The Fund shall consist of amounts
appropriated, transferred, and credited to the Fund.
(B) Transfers.--The following may be transferred to the
Fund;
(i) Amounts made available through section 106(c)(4) of the
Housing and Community Development Act of 1974 (42 U.S.C.
5306(c)(4)) as a result of actions taken under section
104(e), 111, or 123(j) of such Act.
(ii) Any unobligated balances available until expended
remaining or subsequently recaptured from amounts
appropriated for any disaster and related purposes under the
heading ``Community Development Fund'' in any Act prior to
the establishment of the Fund.
(C) Use of transferred amounts.--Amounts transferred to the
Fund shall be used for the eligible uses described in
paragraph (3).
(3) Eligible uses of fund.--
(A) In general.--Amounts in the Fund shall be available--
(i) to provide assistance in the form of grants under
section 123 of the Housing and Community Development Act of
1974, as added by subsection (f); and
(ii) for activities of the Department that support the
provision of such assistance, including necessary salaries
and expenses, information technology, capacity building and
technical assistance (including assistance related to
predisaster planning), and readiness and other pre-disaster
planning activities that are not readily attributable to a
single major disaster.
(B) Set aside.--Of each amount appropriated for or
transferred to the Fund, 2 percent shall be made available
for activities described in subparagraph (A)(ii), which shall
be in addition to other amounts made available for those
activities.
(C) Transfer of funds.--Amounts made available for use in
accordance with subparagraph (B)--
(i) may he transferred to the account under the heading for
``Program Offices--Community Planning and Development'', or
any successor account, for the Department to carry out
activities described in subparagraph (A)(ii); and
(ii) may be used for the activities described in
subparagraph (A)(ii) and for the administrative costs of
administering any funds appropriated to the Department under
the heading ``Community Planning and Development--Community
Development Fund'' for any major disaster declared under
section 401 or the Robert T. Stafford Disaster Relief and
Emergency Assistance Act (42 U.S.C. 5170) in any Act before
the establishment of the Fund.
(4) Interchangeability of prior administrative amounts.--
Any amounts appropriated in any Act prior to the
establishment of the Fund and transferred to the account
under the heading ``Program Offices Salaries and Expenses--
Community Planning and Development'', or any predecessor
account, for the Department for the costs of administering
funds appropriated to the Department under the heading
``Community Planning and Development--Community Development
Fund'' for any major disaster declared under section 401 of
the Robert T. Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5170) shall be available for the
costs of administering any such funds provided by any prior
or future Act, notwithstanding the purposes for which those
amounts were appropriated and in addition to any amount
provided for the same purposes in other appropriations Acts.
(5) Availability of amounts.--Amounts appropriated,
transferred and credited to the Fund shall remain available
until expended.
(6) Formula allocation.--Use of amounts in the Fund for
grants shall be made by formula allocation in accordance with
the requirements of section 123(a) of the Housing and
Community Development Act of 1974. as added by subsection
(f).
(7) Authorization of appropriations.--There are authorized
to be appropriated to the Fund such sums as may be necessary
to respond to current or future major disasters declared
under section 401 of the Robert T. Stafford Disaster Relief
and Emergency Assistance Act (42 U.S.C. 5179) for grants
under section 123 of the Housing and Community Development
Act of 1974, as added by subsection (f).
(f) Establishment of CDBG Disaster Recovery Program.--Title
I of the Housing and Community Development Act of 1974 (42
U.S.C. 5301 et seq.) is amended--
(1) in section 102(a) (42 U.S.C. 5302(a))--
(A) in paragraph (20)--
(i) by redesignating subparagraph (B) as subparagraph (C );
(ii) in subparagraph (C), as so redesignated, by inserting
``or (B)'' after ``subparagraph (A)''; and
(iii) by inserting after subparagraph (A) the following;
``(B) The term `persons of extremely low income' means
families and individuals whose income levels do not exceed
household income levels determined by the Secretary under
section 3(b)(2) of the United States Housing Act of 1937 (42
U.S.C. 1437a(b)(2)(C)), except that the Secretary may provide
alternative definitions for the Commonwealth of Puerto Rico,
Guam, the Commonwealth of the Northern Mariana Islands, the
United States Virgin Islands, and American Samoa.''; and
(B) by adding at the end the following;
``(25) The term `major disaster' has the meaning given the
term in section 102 of the Robert T. Stafford Disaster Relief
and Emergency Assistance Act (42 U.S.C. 5122).'';
(2) in section 106(c)(4) (42 U.S.C. 5306(c)(4))--
(A) in subparagraph (A)--
(i) by striking ``declared by the President under the
Robert T. Stafford Disaster Relief and Emergency Assistance
Act'';
(ii) inserting ``States for use in nonentitlement areas and
to'' before ``metropolitan cities''; and
(iii) inserting ``major'' after ``affected by the'';
(B) in subparagraph (C)--
(i) by striking ``metropolitan city or'' and inserting
``State, metropolitan city, or'';
(ii) by striking ``city or county'' and inserting ``State,
city, or county''; and
(iii) by inserting ``major'' before ``disaster'';
(C) in subparagraph (D), by striking ``metropolitan cities
and'' and inserting ``States, metropolitan cities, and'';
(D) in subparagraph (F)--
(i) by striking ``metropolitan city or'' and inserting
``State, metropolitan city, or''; and
(ii) by inserting ``major'' before ``disaster''; and
(E) in subparagraph (G), by striking ``metropolitan city
or'' and inserting ``State, metropolitan city, or''; and
(3) in section 122 (42 U.S.C. 5321), by striking ``disaster
under title IV of the Robert T. Stafford Disaster Relief and
Emergency Assistance Act'' and inserting ``major disaster'';
and
(4) by adding at the end the following:
``SEC. 123. COMMUNITY DEVELOPMENT BLOCK GRANT DISASTER
RECOVERY PROGRAM.
``(a) Authorization, Formula, and Allocation.--
``(1) Authorization.--Thc Secretary is authorized to make
community development block grant disaster recovery grants
from
[[Page S5252]]
the Long-Term Disaster Recovery Fund established under the
Reforming Disaster Recovery Act (hereinafter referred to as
the `Fund') for necessary expenses for activities authorized
under subsection (f)(1) related to disaster relief, long-term
recovery, restoration of housing and infrastructure, economic
revitalization, and mitigation in the most impacted and
distressed area, resulting from a catastrophic major
disaster.
``(2) Grant awards.--Grants shall be awarded under this
section to States, units of general local government, and
Indian tribes based on capacity and the concentration of
damage, as determined by the Secretary, to support the
efficient and effective administration of funds.
``(3) Section 106 allocations.--Grants under this section
shall not be considered relevant to the formula allocations
made pursuant to section 106.
``(4) Federal register notice.--
``(A) In general.--Not later than 30 days after the date of
enactment of this section, the Secretary shall issue a notice
in the Federal Register containing the latest formula
allocation methodologies used to determine the total estimate
of unmet needs related to housing, economic revitalization,
and infrastructure in the most impacted and distressed areas
resulting from a catastrophic major disaster.
``(B) Public comment.--In the notice issued under
subparagraph (A), the Secretary shall solicit public comments
on--
``(i) the methodologies described in subparagraph (A) and
seek alternative methods for formula allocation within a
similar total amount or funding;
``(ii) the impact or formula methodologies on rural areas
and Tribal areas;
``(iii) adjustments to improve targeting to the most
serious needs;
``(iv) objective criteria for grantee capacity and
concentration of damage to inform grantee determinations and
minimum allocation thresholds; and
``(v) research and data to inform an additional amount to
be provided for mitigation depending on type of disaster,
which shall be no more than 30 percent of the total estimate
or unmet needs.
``(5) Regulations.--
``(A) In general.--The Secretary shall, by regulation,
establish a formula to allocate assistance from the Fund to
the most impacted and distressed areas resulting from a
catastrophic major disaster.
``(B) Formula requirements.--The formula established under
subparagraph (A) shall--
``(i) set forth criteria to determine that a major disaster
is catastrophic, which criteria shall consider the presence
of a high concentration of damaged housing or businesses that
individual, State, Tribal, and local resources could not
reasonably be expected to address without additional Federal
assistance, or other nationally encompassing data that the
Secretary determines are adequate to assess relative impact
and distress across geographic areas.
``(ii) include a methodology for identifying most impacted
and distressed areas, which shall consider unmet serious
needs related to housing, economic revitalization, and
infrastructure;
``(iii) include an allocation calculation that considers
the unmet serious needs resulting from the catastrophic major
disaster and an additional amount up to 30 percent for
activities to reduce risks of loss resulting from other
natural disasters in the most impacted and distressed area,
primarily for the benefit of low- and moderate-income
persons, with particular focus on activities that reduce
repetitive loss of property and critical infrastructure; and
``(iv) establish objective criteria for periodic review and
updates to the formula to reflect changes in available
science and data.
``(C) Minimum allocation threshold.--The Secretary shall,
by regulation, establish a minimum allocation threshold.
``(D) Interim allocation.--Until such time that the
Secretary issues final regulations under this paragraph, the
Secretary shall--
``(i) allocate assistance from the Fund using the formula
allocation methodology published in accordance with paragraph
(4); and
``(ii) include an additional amount for mitigation equal to
15 percent of the total estimate of unmet need.
``(6) Allocation of funds.--
``(A) In general.--The Secretary shall--
``(i) except as provided in clause (ii), not later than 90
days after the President declares a major disaster, use best
available data to determine whether the major disaster is
catastrophic and qualifies for assistance under the formula
in paragraph (4) or (5), unless data is insufficient to make
this determination; and
``(ii) if the best available data is insufficient to make
the determination required under clause (i) within the 90-day
period described in that clause, the Secretary shall
determine whether the major disaster qualifies when
sufficient data becomes available, but in no case shall the
Secretary make the determination later than 120 days after
the declaration of the major disaster.
``(B) Announcement of allocation.--If amounts arc available
in the Fund at the time the Secretary determines that the
major disaster is catastrophic and qualifies for assistance
under the formula in paragraph (4) or (5), the Secretary
shall immediately announce an allocation for a grant under
this section.
``(C) Additional amounts.--If additional amounts are
appropriated to the Fund after amounts are allocated under
subparagraph (B), the Secretary shall announce an allocation
or additional allocation (if a prior allocation under
subparagraph (B) was less than the formula calculation)
within 15 days of any such appropriation.
``(7) Preliminary funding.--
``(A) In general.--To speed recovery, the Secretary is
authorized to allocate and award preliminary grants from the
Fund before making a determination under paragraph (6) if the
Secretary projects, based on a preliminary assessment of
impact and distress, that a major disaster is catastrophic
and would likely qualify for funding under the formula in
paragraph (4) or (5).
``(B) Amount.--
``(i) Maximum.--The Secretary may award preliminary funding
under subparagraph (A) in an amount that is not more than
$5,000.000.
``(ii) Sliding scale.--The Secretary shall, by regulation,
establish a sliding scale for preliminary funding awarded
under subparagraph (A) based on the size of the preliminary
assessment of impact and distress.
``(C) Use of funds.--The uses or preliminary funding
awarded under subparagraph (A) shall be limited to eligible
activities that--
``(i) in the determination of the Secretary, will support
faster recovery, improve the ability of the grantee to assess
unmet recovery needs, plan for the prevention of improper
payments, and reduce fraud, waste, and abuse; and
``(ii) may include evaluating the interim housing,
permanent housing, and supportive service needs of the
disaster impacted community, with special attention to
vulnerable populations, such as homeless and low- to moderate
income households, to inform the grantee action plan required
under subsection (c).
``(D) Consideration of funding.--Preliminary funding
awarded under subparagraph (A)--
``(i) is not subject to the certification requirements of
paragraph (h)(1); and
``(ii) shall not be considered when calculating the amount
of the grant used for administrative costs, technical
assistance, and planning activities that are subject to the
requirements under subsection (1)(2).
``(E) Waiver.--To expedite the use of preliminary funding
for activities described in this paragraph, the Secretary may
waive requirements of this section in accordance with
subsection (i).
``(F) Amended award.--
``(i) In general.--An award for preliminary funding under
subparagraph (A) may be amended to add any subsequent amount
awarded because of a determination by the Secretary that a
major disaster is catastrophic and qualifies for assistance
under the formula.
``(ii) Applicability.--Notwithstanding subparagraph (D),
amounts provided by an amendment under clause (i) are subject
to the requirements under subsections (h)(1) and (f)(1) and
other requirements on grant funds under this section.
``(G) Technical assistance.--Concurrent with the allocation
of any preliminary funding awarded under this paragraph, the
Secretary shall assign or provide technical assistance to the
recipient of the grant.
``(b) Interchangeability.--The Secretary--
``(1) is authorized to approve the use of grants under this
section to be used interchangeably and without limitation for
the same activities in the most impacted and distressed areas
resulting from a declaration of another catastrophic major
disaster that qualifies for assistance under the formula
established under paragraph (4) or (5) of subsection (a); and
``(2) shall establish requirements to expedite the use of
grants under this section for the purpose described in
paragraph (1).
``(c) Grantee Plans.--
``(1) Requirement.--Not later than 90 days after the date
on which the Secretary announces a grant allocation under
this section, unless an extension is granted by the
Secretary, the grantee shall submit to the Secretary a plan
for approval describing--
``(A) the activities the grantee will carry out with the
grant under this section;
``(B) the criteria of the grantee for awarding assistance
and selecting activities;
``(C) how the use of the grant under this section will
address disaster relief, long-term recovery, restoration of
housing and infrastructure, economic revitalization, and
mitigation in the most impacted and distressed areas
``(D) how the use of the grant funds for mitigation is
consistent with hazard mitigation plans submitted to the
Federal Emergency Management Agency under section 322 of the
Robert T. Stafford Disaster Relief and Emergency Assistance
Act (42 U.S.C. 5165);
``(E) the estimated amount proposed to be used for
activities that will benefit persons of low- and moderate-
income;
``(F) how the use of grant funds will repair and replace
existing housing stock for vulnerable populations, including
low- to moderate-income households;
``(G) how the grantee will address the priorities described
in paragraph (5);
``(H) how uses of funds are proportional to unmet needs, as
required under paragraph (5);
``(I) for State grantees that plan to distribute grant
amounts to units of general local government, a description
of the method of distribution, and
``(J) such other information as may be determined by the
Secretary in regulation.
[[Page S5253]]
``(2) Public consultation.--To permit public examination
and appraisal of the plan described in paragraph (1), to
enhance the public accountability of grantees, and to
facilitate coordination of activities with different levels
of government, when developing the plan or substantial
amendments proposed to the plan required under paragraph (1),
a grantee shall--
``(A) publish the plan before adoption;
``(B) provide citizens, affected units of general local
government, and other interested parties with reasonable
notice of and opportunity to comment on, the plan, with a
public comment period of not less than 14 days;
``(C) consider comments received before submission to the
Secretary;
``(D) follow a citizen participation plan for disaster
assistance adopted by the grantee that, at a minimum,
provides for participation of residents of the most impacted
and distressed area affected by the major disaster that
resulted in the grant under this section and other
considerations established by the Secretary; and
``(E) undertake any consultation with interested parties as
may be determined by the Secretary in regulation.
``(3) Approval.--The Secretary shall--
``(A) by regulation, specify criteria for the approval,
partial approval, or disapproval of a plan submitted under
paragraph (1), including approval of substantial amendments
to the plan;
``(B) review a plan submitted under paragraph (1) upon
receipt of the plan;
``(C) allow a grantee to revise and resubmit a plan or
substantial amendment to a plan under paragraph (1) that the
Secretary disapproves;
``(D) by regulation, specify criteria for when the grantee
shall be required to provide the required revisions to a
disapproved plan or substantial amendment under paragraph (1)
for public comment prior to resubmission of the plan or
substantial amendment to the Secretary; and
``(E) approve, partially approve, or disapprove a plan or
substantial amendment under paragraph (1) not later than 60
days after the date on which the plan or substantial
amendment is received by the Secretary.
``(4) Low- and moderate-income overall benefit.--
``(A) Use of funds.--Not less than 70 percent of a grant
made under this section shall be used for activities that
benefit persons of low and moderate income unless the
Secretary--
``(i) specifically finds that--
``(I) there is compelling need to reduce the percentage for
the grant; and
``(II) the housing needs of low- and moderate-income
residents have been addressed; and
``(ii) issues a waiver and alternative requirements
pursuant to subsection (i) to lower the percentage.
``(B) Regulations.--The Secretary shall, by regulation,
establish protocols consistent with the findings of the
Reforming Disaster Recovery Act to prioritize the use of
funds by a grantee under this section to meet the needs or
low- and moderate income persons and businesses serving
primarily persons of low and moderate income.
``(5) Prioritization.--The grantee shall prioritize
activities that--
``(A) assist persons with extremely low, low, and moderate
incomes and other vulnerable populations to better recover
from and withstand future disasters, emphasizing those with
the most severe needs;
``(B) address affordable housing, including affordable
rental housing, needs arising from a disaster or those needs
present prior to a disaster;
``(C) prolong the life of housing and infrastructure;
``(D) use cost-effective means of preventing harm to people
and property and incorporate protective features,
redundancies, energy savings; and
``(E) other measures that will assure the continuation of
critical services during future disasters.
``(6) Proportional allocation.--
``(A) In general.--A grantee under this section shall
allocate grant funds proportional to unmet needs between
housing activities, economic revitalization, and
infrastructure, unless the Secretary--
``(i) specifically finds that--
``(I) there is a compelling need for a disproportional
allocation among those unmet needs; and
``(II) the disproportional allocation described in
subclause (I) is not inconsistent with the requirements under
paragraph (4); and
``(ii) issues a waiver and alternative requirement pursuant
to subsection (i) to allow for the disproportional allocation
described in clause (i)(I).
``(B) Housing activities.--With respect to housing
activities described in subparagraph (A)(i), grantees should
address proportional needs between homeowners and renters,
including low-income households in public housing and
federally subsidized housing.
``(7) Disaster risk mitigation.--
``(A) Definition.--In this paragraph, the term `hazard-
prone areas'--
``(i) means areas identified by the Secretary, in
consultation with the Administrator of the Federal Emergency
Management Agency, at risk from natural hazards that threaten
property damage or health, safety, and welfare, such as
floods, wildfires (including Wildland-Urban Interface areas),
earthquakes, lava inundation, tornados, and high winds; and
``(ii) includes areas having special flood hazards as
identified under the Flood Disaster Protection Act of 1973
(42 U.S.C. 4002 et seq.) or the National Flood Insurance Act
of 1968 (42 U.S.C. 4001 et seq.).
``(B) Hazard-prone areas.--The Secretary, in consultation
with the Administrator of the Federal Emergency Management
Agency, shall establish minimum construction standards,
insurance purchase requirements, and other requirements for
the use of grant funds in hazard-prone areas.
``(C) Special flood hazards.--For the areas described in
subparagraph (A)(ii), the insurance purchase requirements
established under subparagraph (13) shall meet or exceed the
requirements under section 102(a) of the Flood Disaster
Protection Act of 1973 (42 U.S.C. 4012a(a)).
``(D) Consideration of future risks.--The Secretary may
consider future risks to protecting property and health,
safety, and general welfare, and the likelihood of those
risks, when making the determination of or modification to
hazard-prone areas under this paragraph.
``(8) Relocation.--
``(A) In general.--The Uniform Relocation Assistance and
Real Property Acquisition Policies Act of 1970 (42 U.S.C.
4601 et seq.) shall apply to activities assisted under this
section to the extent determined by the Secretary in
regulation, or as provided in waivers and alternative
requirements authorized in accordance with subsection (i).
``(B) Policy.--Each grantee under this section shall
establish a relocation assistance policy that--
``(i) minimizes displacement and describes the benefits
available to persons displaced as a direct result of
acquisition, rehabilitation, or demolition in connection with
an activity that is assisted by a grant under this section;
and
``(ii) includes any appeal rights or other requirements
that the Secretary establishes by regulation.
``(d) Certifications.--Any grant under this section shall
be made only if the grantee certifies to the satisfaction of
the Secretary that--
``(1) the grantee is in full compliance with the
requirements under subsection (c)(2);
``(2) for grants other than grants to Indian tribes, the
grant will be conducted and administered in conformity with
the Civil Rights Act of 1964 (42 U.S.C. 2000a et seq.) and
the Fair Housing Act (42 U.S.C. 3601 et seq.);
``(3) the projected use of funds has been developed so as
to give maximum feasible priority to activities that will
benefit extremely low-, low-, and moderate-income families
and activities described in subsection (c)(5), and may also
include activities that are designed to aid in the prevention
or elimination of slum and blight to support disaster
recovery, meet other community development needs having a
particular urgency because existing conditions pose a serious
and immediate threat to the health or welfare of
the community where other financial resources are not
available to meet such needs, and alleviate future threats
to human populations, critical natural resources, and
property that an analysis of hazards shows are likely to
result from natural disasters in the future;
``(4) the grant funds shall principally benefit persons of
low and moderate income as described in subsection (c)(4);
``(5) for grants other than grants to Indian tribes, within
24 months of receiving a grant or at the time of its 3 or 5-
year update, whichever is sooner, the grantee will review and
make modifications to its non-disaster housing and community
development plans and strategies required by subsections (c)
and (m) of section 104 to reflect the disaster recovery needs
identified by the grantee and consistency with the plan under
subsection (c)(I);
``(6) the grantee will not attempt to recover any capital
costs of public improvements assisted in whole or part under
this section by assessing any amount against properties owned
and occupied by persons of low and moderate income, including
any fee charged or assessment made as a condition of
obtaining access to such public improvements, unless--
``(A) funds received under this section are used to pay the
proportion of such fee or assessment that relates to the
capital costs or such public improvements that are financed
from revenue sources other than under this chapter; or
``(B) for purposes of assessing any amount against
properties owned and occupied by persons of moderate income,
the grantee certifies to the Secretary that the grantee lacks
sufficient funds received under this section to comply with
the requirements of subparagraph (A);
``(7) the grantee will comply with the other provisions of
this title that apply to assistance under this section and
with other applicable laws;
``(8) the grantee will follow a relocation assistance
policy that includes any minimum requirements identified by
the Secretary; and
``(9) the grantee will adhere to construction standards,
insurance purchase requirements, and other requirements for
development in hazard-prone areas described in subsection
(c)(7).
``(e) Performance Reviews and Reporting.--
``(1) In general.--The Secretary shall, on not less
frequently than an annual basis, make such reviews and audits
as may be necessary or appropriate to determine whether a
grantee under this section has--
``(A) carried out activities using grant funds in a timely
manner;
[[Page S5254]]
``(B) met the performance targets established by paragraph
(2);
``(C) carried out activities using grant funds in
accordance with the requirements of this section, the other
provisions of this title that apply to assistance under this
section, and other applicable laws; and
``(D) a continuing capacity to carry out activities in a
timely manner.
``(2) Performance targets.--The Secretary shall develop and
make publicly available critical performance targets for
review, which shall include spending thresholds for each year
from the date on which funds are obligated by the Secretary
to the grantee until such time all funds have been expended.
``(3) Failure to meet targets.--
``(A) Suspension.--If a grantee under this section fails to
meet 1 or more critical performance targets under paragraph
(2), the Secretary may temporarily suspend the grant.
``(13) Performance improvement plan.--If the Secretary
suspends a grant under subparagraph (A), the Secretary shall
provide to the grantee a performance improvement plan with
the specific requirements needed to lift the suspension
within a defined time period.
``(C) Report.--If a grantee fails to meet the spending
thresholds established under paragraph (2), the grantee shall
submit to the Secretary, the appropriate committees of
Congress, and each member of Congress who represents a
district or State of the grantee a written report identifying
technical capacity, funding, or other Federal or State
impediments affecting the ability of the grantee to meet the
spending thresholds.
``(4) Collection of information and reporting.--
``(A) Requirement to report.--A grantee under this section
shall provide to the Secretary such information as the
Secretary may determine necessary for adequate oversight of
the grant program under this section.
``(8) Public availability.--Subject to subparagraph (D),
the Secretary shall make information submitted under
subparagraph (A) available to the public and to the Inspector
General for the Department of Housing and Urban Development,
disaggregated by income, geography, and all classes of
individuals protected under section 109.
``(C) Summary status reports.--To increase transparency and
accountability of the grant program under this section the
Secretary shall, on not less frequently than an annual basis,
post on a public facing dashboard summary status reports for
all active grants under this section that includes--
``(i) the status or funds by activity;
``(ii) the percentages of funds allocated and expended to
benefit low- and moderate-income communities;
``(iii) performance targets, spending thresholds, and
accomplishments; and
``(iv) other information the Secretary determines to be
relevant for transparency.
``(D) Considerations.--ln carrying out this paragraph, the
Secretary--
``(i) shall take such actions as may be necessary to ensure
that personally identifiable information regarding applicants
for assistance provided from funds made available under this
section is not made publicly available; and
``(ii) may make full and unredacted information available
to academic institutions for the purpose of researching into
the equitable distribution of recovery funds and adherence to
civil rights protections.
``(f) Eligible Activities.--
``(1) In general.--Activities assisted under this section--
``(A) may include activities permitted under section 105 or
other activities permitted by the Secretary by waiver or
alternative requirement pursuant to subsection (i); and
``(B) shall be related to disaster relief, long-term
recovery, restoration of housing and infrastructure, economic
revitalization, and mitigation in the most impacted and
distressed areas resulting from the major disaster for which
the grant was awarded.
``(2) Prohibition.--Grant funds under this section may not
be used for costs reimbursable by, or for which funds have
been made available by, the Federal Emergency Management
Agency or the United States Army Corps of Engineers.
``(3) Administrative costs, technical assistance and
planning.--
``(A) In general.--The Secretary shall establish in
regulation the maximum grant amounts a grantee may use for
administrative costs, technical assistance and planning
activities, taking into consideration size of grant,
complexity of recovery, and other factors as determined by
the Secretary, but not to exceed 10 percent for
administration and 20 percent in total.
``(B) Availability.--Amounts available for administrative
costs for a grant under this section shall be available for
eligible administrative costs of the grantee for any grant
made under this section, without regard to a particular
disaster.
``(4) Program income.--Notwithstanding any other provision
of law, any grantee under this section may retain program
income that is realized from grants made by the Secretary
under this section if the grantee agrees that the grantee
will utilize the program income in accordance with the
requirements for grants under this section, except that the
Secretary may--
``(A) by regulation, exclude from consideration as program
income any amounts determined to be so small that compliance
with this paragraph creates an unreasonable administrative
burden on the grantee; or
``(B) permit the grantee to transfer remaining program
income to the other grants of the grantee under this title
upon closeout of the grant.
``(5) Prohibition on use of assistance for employment
relocation activities.--
``(A) In general.--Grants under this section may not be
used to assist directly in the relocation of any industrial
or commercial plant, facility, or operation, from one area to
another area, if the relocation is likely to result in a
significant loss of employment in the labor market area from
which the relocation occurs.
``(B) Applicability.--The prohibition under subparagraph
(A) shall not apply to a business that was operating in the
disaster-declared labor market area before the incident date
of the applicable disaster and has since moved, in whole or
in part, from the affected area to another State or to a
labor market area within the same State to continue business.
``(6) Requirements.--Grants under this section are subject
to the requirements of this section, the other provisions of
this title that apply to assistance under this section, and
other applicable laws, unless modified by waivers and
alternative requirements in accordance with subsection (i).
``(g) Environmental Review.--
``(1) Adoption.--A recipient of funds provided under this
section that uses the funds to supplement Federal assistance
provided under section 402, 403, 404, 406, 407, 408(c)(4),
428, or 502 of the Robert T. Stafford Disaster Relief and
Emergency Assistance Act (42 U.S.C. 5170a, 5170b, 5170c,
5172, 5173, 5174(c)(4), 5189f, 5192) may adopt, without
review or public comment, any environmental review, approval,
or permit performed by a Federal agency, and that adoption
shall satisfy the responsibilities of the recipient with
respect to the environmental review. approval, or permit
under section 104(g)(1).
``(2) Approval of release of funds.--Notwithstanding
section 104(g)(2), the Secretary or a State may. upon receipt
of a request for release of funds and certification,
immediately approve the release of funds for an activity or
project to be assisted under this section if the recipient
has adopted an environmental review, approval, or permit
under paragraph (1) or the activity or project is
categorically excluded from review under the National
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).
``(3) Units of general local government.--The provisions of
section 104(g)(4) shall apply to assistance under this
section that a State distributes to a unit of general local
government.
``(h) Financial Controls and Procedures.--
``(1) In general.--The Secretary shall develop requirements
and procedures to demonstrate that a grantee under this
section)--
``(A) has adequate financial controls and procurement
processes;
``(B) has adequate procedures to detect and prevent fraud,
waste, abuse and duplication of benefit; and
``(C) maintains a comprehensive and publicly accessible
website.
``(2) Certification.--Before making a grant under this
section, the Secretary shall certify that the grantee has in
place proficient processes and procedures to comply with the
requirements developed under paragraph (1), as determined by
the Secretary.
``(3) Compliance before allocation.--The Secretary may
permit a State, unit of general local government, or Indian
tribe to demonstrate compliance with the requirements for
adequate financial controls developed under paragraph (1)
before a disaster occurs and before receiving an allocation
for a grant under this section.
``(4) Duplication of benefits.--
``(A) In general.--Funds made available under this
subsection shall be used in accordance with section 312 of
the Robert T. Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5155), as amended by section 1210
of the Disaster Recovery Reform Act of 2018 (division D of
Public Law 115-254), and such rules as may be prescribed
under such section 312.
``(B) Penalties.--ln any case in which the use of grant
funds under this section results in a prohibited duplication
of benefits, the grantee shall--
``(i) apply an amount equal to the identified duplication
to any allowable costs of the award consistent with actual,
immediate cash requirement;
``(ii) remit any excess amounts to the Secretary to be
credited to the obligated, undisbursed balance of the grant
consistent with requirements on Federal payments applicable
to such grantee; and
``(iii) if excess amounts under clause (ii) are identified
after the period of performance or after the closeout of the
award, remit such amounts to the Secretary to be credited to
the Fund.
``(C) Failure to comply.--A grantee that fails to comply
with subparagraph (A) shall be subject to remedies for
noncompliance under section 111, unless the Secretary
publishes a determination in the Federal Register that it is
not in the best interest of the Federal Government to pursue
remedial actions.
``(i) Waivers.--
``(1) In general.--In administering grants under this
section, the Secretary may 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 the
[[Page S5255]]
use by the grantee of those funds (except for requirements
related to fair housing, nondiscrimination, labor standards,
the environment, and the requirements of this section that do
not expressly authorize modifications by waiver or
alternative requirement), if the Secretary makes a public
finding that good cause exists for the waiver or alternative
requirement and the waiver or alternative requirement would
not be inconsistent with the findings in the Reforming
Disaster Recovery Act.
``(2) Effective date.--A waiver or alternative requirement
described in paragraph (1) shall not take effect before the
date that is 5 days after the date of publication of the
waiver or alternative requirement on the website of the
Department of Housing and Urban Development or the effective
date for any regulation published in the Federal Register.
``(3) Public notification.--The Secretary shall notify the
public of all waivers described in paragraph (1) in
accordance with the requirements of section 7(q)(3) of the
Department of Housing and Urban Development Act (42 U.S.C.
3535(q)(3)).
``(j) Unused Amounts.--
``(1) Deadline to use amounts.--A grantee under this
section shall use an amount equal to the grant within 6 years
beginning on the date on which the Secretary obligates the
amounts to the grantee, as such period may be extended under
paragraph (4).
``(2) Recapture.--The Secretary shall recapture and credit
to the Fund any amount that is unused by a grantee under this
section upon the earlier of--
``(A) the date on which the grantee notifies the Secretary
that the grantee has completed all activities identified in
the disaster grantee's plan under subsection (c); or
``(B) the expiration of the 6-year period described in
paragraph (1), as such period may be extended under paragraph
(4).
``(3) Retention of funds.--Notwithstanding paragraph (1),
the Secretary may allow a grantee under this section to
retain--
``(A) amounts needed to close out grants, and
``(B) up to 10 percent of the remaining funds to support
maintenance of the minimal capacity to launch a new program
in the event of a future disaster and to support predisaster
long-term recovery and mitigation planning.
``(4) Extension of period for use of funds.--The Secretary
may extend the 6-year period described in paragraph (1) by
not more than 4 years, or not more than 6 years for
mitigation activities, if--
``(A) the grantee submits to the Secretary--
``(i) written documentation of the exigent circumstances
impacting the ability of the grantee to expend funds that
could not be anticipated; or
``(ii) a justification that such request is necessary due
to the nature and complexity of the program and projects; and
``(B) the Secretary submits a written justification for the
extension to the Committees on Appropriations of Senate and
the House of Representatives that specifies the period of
that extension.''.
(g) Regulations.--
(1) Proposed rules.--Following consultation with the
Federal Emergency Management Agency, the Small Business
Administration, and other Federal agencies, not later than 6
months after the date of enactment of this Act, the Secretary
shall issue proposed rules to carry out this section and the
amendments made by this section and shall provide a 90-day
period for submission of public comments on those proposed
rules,
(2) Final rules.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall issue final
regulations to carry out section 123 of the Housing and
Community Development Act of 1974, as added by subsection
(f).
(h) Coordination of Disaster Recovery Assistance, Benefits,
and Data With Other Federal Agencies.--
(1) Coordination of disaster recovery assistance.--In order
to ensure a comprehensive approach to Federal disaster
relief, long-term recovery, restoration of housing and
infrastructure, economic revitalization, and mitigation in
the most impacted and distressed areas resulting from a
catastrophic major disaster, the Secretary shall coordinate
with the Federal Emergency Management Agency, to the greatest
extent practicable, in the implementation of assistance
authorized under section 123 of the Housing and Community
Development Act of 1974, as added by subsection (f).
(2) Data sharing agreements.--To support the coordination
of data to prevent duplication of benefits with other Federal
disaster recovery programs while also expediting recovery and
reducing burden on disaster survivors, the Department shall
establish data sharing agreements that safeguard privacy with
relevant Federal agencies to ensure disaster benefits
effectively and efficiently reach intended beneficiaries,
while using effective means of preventing harm to people and
property.
(3) Data transfer from fema and sba to hud.--As permitted
and deemed necessary for efficient program execution, and
consistent with a computer matching agreement entered into
under paragraph (6)(A), the Administrator of the Federal
Emergency Management Agency and the Administrator of the
Small Business Administration shall provide data on disaster
applicants to the Department including, when necessary,
personally identifiable information, disaster recovery needs,
and resources determined eligible for, and amounts expended,
to the Secretary for all major disasters declared by the
President pursuant to section 401 of Robert T. Stafford
Disaster Relief and Emergency Assistance Act (42 U.S.C. 5170)
for the purpose of providing additional assistance to
disaster survivors and prevent duplication of benefits.
(4) Data transfers from hud to hud grantees.--The Secretary
is authorized to provide to grantees under section 123 of the
Housing and Community Development Act of 1974, as added by
subsection (f), offices of the Department, technical
assistance providers, and lenders information that in the
determination or the Secretary is reasonably available and
appropriate to inform the provision of assistance after a
major disaster, including information provided to the
Secretary by the Administrator of the Federal Emergency
Management Agency, the Administrator of the Small Business
Administration, or other Federal agencies.
(5) Data transfers from hud grantees to hud, fema, and
sba.--
(A) Reporting--Grantees under section 123 of the Housing
and Community Development Act of 1974, as added by subsection
(f), shall report information requested by the Secretary on
households, businesses, and other entities assisted and the
type of assistance provided.
(B) Sharing information.--The Secretary shall share
information collected under subparagraph (A) with the Federal
Emergency Management Agency, the Small Business
Administration, and other Federal agencies to support the
planning and delivery of disaster recovery and mitigation
assistance.
(6) Privacy protection.--The Secretary may make and receive
data transfers authorized under this subsection, including
the use and retention of that data for computer matching
programs, to inform the provision of assistance, assess
disaster recovery needs, and prevent the duplication of
benefits and other waste, fraud, and abuse, provided that--
(A) the Secretary enters a computer matching agreement with
the Administrator of the Federal Emergency Management Agency,
the Administrator of the Small Business Administration, or
other Federal agencies covering the transfer of data;
(B) the Secretary publishes intent to disclose data in the
Federal Register; and
(C) notwithstanding paragraphs (1) and (2), section 552a of
title 5, United States Code (commonly known as the ``Privacy
Act of 1974''), or any other law, the Secretary is authorized
to share data with an entity identified in paragraph (4), and
the entity is authorized to use the data as described in this
subsection, if the Secretary enters a data sharing agreement
with the entity before sharing or receiving any information
under transfers authorized by this subsection, which data
sharing agreement shall--
(i) in the determination of the Secretary, include measures
adequate to safeguard the privacy and personally identifiable
information of individuals; and
(ii) include provisions that describe how the personally
identifiable information of an individual will be adequately
safeguarded and protected, which requires consultation with
the Secretary and the head of each Federal agency the data of
which is being shared subject to the agreement.
______