[Federal Register Volume 63, Number 124 (Monday, June 29, 1998)]
[Rules and Regulations]
[Pages 35135-35137]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-17273]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Chapter V

[Docket No. FR-4254-N-03]


HUD Disaster Recovery Initiative

AGENCY: Office of Community Planning and Development, HUD.

ACTION: Notice of disaster recovery funds availability and waivers; 
clarification.

-----------------------------------------------------------------------

SUMMARY: The 1997 Emergency Supplemental Appropriations Act for 
Recovery from Natural Disasters required publication of a Notice 
governing use of such funds in conjunction with any program 
administered by the Federal Emergency Management Agency (FEMA) for 
buyouts of structures in disaster areas. HUD published a Notice on 
September 8, 1997 (62 FR 47344) that described the policies and 
procedures applicable to the HUD Disaster Recovery Initiative. This 
Notice clarifies the timing of the reports HUD expects to receive on 
the use of HUD Disaster Recovery Initiative grant funds. This Notice 
also clarifies the citizen participation certifications and notifies 
grantees of a statutory restriction on waivers related to funds used as 
the non-Federal cost-share for U.S. Army Corps of Engineers projects.

EFFECTIVE DATE: June 29, 1998.

FOR FURTHER INFORMATION CONTACT:
Jan C. Opper, Senior Program Officer, Office of Block Grant Assistance, 
Department of Housing and Urban Development, Room 7286, 451 Seventh 
Street, SW, Washington, DC 20410; telephone number (202) 708-3587. 
Persons with hearing or speech impairments may access this number via 
TTY by calling the Federal Information Relay Service at (800) 877-8339. 
FAX inquiries may be sent to Mr. Opper at (202) 401-2044. (Except for 
the

[[Page 35136]]

``800'' number, these telephone numbers are not toll-free.)

SUPPLEMENTARY INFORMATION: On September 8, 1997 (62 FR 47344), HUD 
published a Notice describing the policies and procedures applicable to 
the HUD Disaster Recovery Initiative, in accordance with the 
requirements of the 1997 Emergency Supplemental Appropriations Act for 
Recovery from Natural Disasters, and for Overseas Peacekeeping Efforts, 
Including those in Bosnia (Pub. L. 105-18; approved June 12, 1997). 
HUD's Disaster Recovery Initiative helps communities that are affected 
by disasters and that receive Presidential declarations. When other 
agencies cannot assist, HUD steps in with funding for recovery 
activities--providing the glue that holds together the sometimes 
disconnected pieces of disaster recovery.
    HUD is issuing this Notice to clarify the provisions of the 
September 8, 1997 Notice regarding the timing of the submission to HUD 
of necessary reports. The items included in this Notice replace the 
indicated portions in the September 8, 1997 Notice and add additional 
information. All other paragraphs of the September 8, 1997 Notice are 
unaffected. This Notice simplifies the requirement for an annual report 
and clarifies requirements for the statutorily required quarterly 
reports. HUD is retaining the annual financial reconciliation and 
benefit elements of the annual report, but is shifting them from a 
separate annual report into every fourth quarterly report. To the 
extent possible, HUD will automate the quarterly reports and the annual 
reconciliation and benefit calculation.
    This Notice also clarifies the citizen participation requirements, 
eliminating an unintended source of confusion in the September 8, 1997 
Notice, which required a grantee to certify it was following the 
citizen participation plan required at part 91, although it also stated 
slightly different requirements. This portion of the Notice may have 
resulted in a conflict or confusion for some grantees (especially those 
that included procedures in their citizen participation plan in case of 
a Federally declared disaster). This Notice changes the requirement 
from certifying to the part 91 citizen participation plan, to 
certifying to the plan required at section I.E.7.b. of the Notice.
    This Notice also notifies grantees of a statutory restriction on 
waivers related to funds used as the non-Federal cost-share for U.S. 
Army Corps of Engineers projects.
    Accordingly, FR Doc. 97-23752, the HUD Disaster Recovery Initiative 
Notice of disaster recovery funds availability and waivers, published 
in the Federal Register on September 8, 1997 (62 FR 47344), is amended 
as follows:
    1. On page 47345, in column 3, in section I.E. entitled 
``Submission Requirements'', paragraph 3.e. is revised to read as 
follows:

I. Empowering Communities for Recovery

* * * * *

E. Submission Requirements

* * * * *
    3. The city or county grantee must describe monitoring standards 
and procedures pursuant to Sec. 91.230 and include certifications 
pursuant to:
* * * * *
    e. Section I.E.7.b. of this Notice (Citizen participation);
* * * * *
    2. On page 47346, in column 1, in section I.E. entitled 
``Submission Requirements'', paragraph 6.f. is revised to read as 
follows:

I. Empowering Communities for Recovery

* * * * *

E. Submission Requirements

* * * * *
    6. The State grantee must describe monitoring standards and 
procedures pursuant to Sec. 91.330 and include certifications pursuant 
to:
* * * * *
    f. Section I.E.7.b. of this Notice (Citizen participation);
* * * * *
    3. On page 47348, in column 3, in section I.H. entitled 
``Ineligible Activities'', a new paragraph 3. is added at the end 
(after section I.H.2.c.), to read as follows:

I. Empowering Communities for Recovery

* * * * *

H. Ineligible Activities

* * * * *
    3. The Departments of Veterans Affairs and Housing and Urban 
Development, and Independent Agencies Appropriations Act, 1998 (Pub. L. 
105-65, approved October 27, 1997; 111 Stat. 1344, 1358) prohibits HUD 
from granting a waiver for the use of more than $100,000 in HUD 
Disaster Recovery funds for the non-Federal cost-share of a U.S. Army 
Corps of Engineers project, except for a levee project at Devils Lake, 
North Dakota. Thus, for funds in excess of $100,000, the proviso 
prohibits HUD from granting a waiver for relief from various program 
requirements, if the funds used for that activity will also be used to 
meet the non-federal cost-share for a Corps project. In contrast, the 
use of HUD Disaster Recovery funds for payment of the non-Federal cost-
share required by a Federal grant-in-aid program has long been 
authorized by section 105(a)(9) of the Housing and Community 
Development Act of 1974, and therefore no waiver is required just to 
make matching eligible. This prohibition applies only to HUD Disaster 
Recovery funding in the foregoing appropriation law and such funding in 
prior appropriation laws.
* * * * *
    4. On page 47351, in columns 2 and 3, section II.A. entitled 
``Program Administrative, Recordkeeping and Reporting Requirements'' is 
revised to read as follows:

II. Ensuring the Public Trust

A. Program Administrative Recordkeeping and Reporting Requirements

    The program administrative requirements at Secs. 570.489-570.492 
for States and at Secs. 570.500-570.513 for cities and counties, which 
are not otherwise waived, shall apply, except that, with respect to 
reporting:
    1. States must submit a Performance Evaluation Report (PER) 
pursuant to 24 CFR 91.520, separately for the HUD Disaster Recovery 
Initiative, similar in all other respects to that which is required for 
the CDBG program regulated at 24 CFR part 570. HUD will compile this 
PER for the HUD Disaster Recovery Initiative from the quarterly reports 
submitted under paragraph 3 below, except that, with the final 
quarterly report submitted prior to grant closeout, States must also 
include with the PER a special narrative that discusses how the States 
assured that activities met the requirements of this Notice with 
respect to the buyout of structures in a disaster area.
    2. Cities and counties must submit a Performance Report for the HUD 
Disaster Recovery Initiative in accordance with 24 CFR 91.520. This 
Performance Report will be compiled by HUD from the quarterly reports 
submitted under paragraph 3 below. The final quarterly report submitted 
prior to grant closeout also must include a special narrative that 
discusses how the city or county assured that activities met the 
requirements of this Notice with respect to the buyout of structures in 
a disaster area.
    3. Congress has required that quarterly reports be submitted on all 
disbursements and use of funds for or associated with buyouts. HUD must 
also receive reporting information for program management purposes.

[[Page 35137]]

Therefore, each grantee must submit a quarterly report, as HUD 
prescribes, no later than 30 days following each calendar quarter, 
beginning after the first full calendar quarter after grant award and 
continuing until all funds have been expended and that expenditure 
reported. Each quarterly report will include information on the project 
name, activity, location, national objective, funds budgeted and 
expended, non-HUD Disaster Recovery Initiative Federal source and 
funds, numbers of properties and housing units, and numbers of low- and 
moderate-income households. Annually (i.e., with every fourth 
submission), the report shall include a financial reconciliation of 
funds budgeted and expended, and calculation of the overall percent of 
benefit to low- and moderate-income persons (unless waived). HUD is 
seeking approval from OMB for any new information collection 
requirements in accordance with the Paperwork Reduction Act of 1995 (44 
U.S.C. 3501-3520).
* * * * *
    Dated: June 19, 1998.
Saul Ramirez,
Assistant Secretary for Community Planning and Development.
[FR Doc. 98-17273 Filed 6-26-98; 8:45 am]
BILLING CODE 4210-29-M