[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

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     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.

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       ``(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.
                                 ______