[Federal Register Volume 70, Number 79 (Tuesday, April 26, 2005)]
[Notices]
[Pages 21437-21438]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E5-1963]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-4959-N-02]


Modification of the Waivers Granted to and Alternative 
Requirements for Community Development Block Grant (CDBG) Disaster 
Recovery Grantees Under the Military Construction Appropriations and 
Emergency Hurricane Supplemental Appropriations Act, 2005

AGENCY: Office of the Secretary, HUD.

ACTION: Waiver for the State of Maryland.

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SUMMARY: This notice advises the public of additional waivers of 
regulations and statutory provisions granted to CDBG disaster recovery 
grantees for the purpose of assisting in the recovery from the 
federally declared disasters that occurred between August 31, 2003, and 
October 1, 2004. As described in the SUPPLEMENTARY INFORMATION section 
of this notice, HUD is authorized by statute to waive statutory and 
regulatory requirements and specify alternative requirements for this 
purpose. This notice describes additional waivers requested by the 
State of Maryland to allow it to administer disaster recovery grant 
funds directly rather than by distributing funds to units of general 
local government or Indian tribes.

DATES: Effective Date: May 11, 2005.

FOR FURTHER INFORMATION CONTACT: Jan C. Opper, Director, Disaster 
Recovery and Special Issues, Office of Block Grant Assistance, 
Department of Housing and Urban Development, Room 7286, 451 Seventh 
Street, SW., Washington, DC 20410-7000, (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. Facsimile 
(FAX) inquiries may be sent to Mr. Opper at (202) 401-2044. (Except for 
the ``800'' number, these telephone numbers are not toll-free.)

SUPPLEMENTARY INFORMATION:

[[Page 21438]]

Authority To Grant Waivers

    The Military Construction Appropriations and Emergency Hurricane 
Supplemental Appropriations Act, 2005 (Pub. L.108-324, approved October 
13, 2004) (the Act) appropriates $150 million in CDBG funds for 
disaster relief, long-term recovery, and mitigation directly related to 
the effects of the covered disasters. The Act authorizes the Secretary 
to waive, or specify alternative requirements for, any provision of any 
statute or regulation that the Secretary administers in connection with 
the obligation by the Secretary or use by the recipient of these funds, 
except for requirements related to fair housing, nondiscrimination, 
labor standards, and the environment, upon a finding that such waiver 
is required to facilitate the use of such funds and would not be 
inconsistent with the overall purpose of the statute.
    The Secretary finds that the following waiver and alternative 
requirements are necessary to facilitate the use of these funds for 
their required purposes. The Secretary also finds that such uses of 
funds, as described below, are not inconsistent with the overall 
purpose of Title I of the Housing and Community Development Act of 
1974, as amended, or the Cranston-Gonzalez National Affordable Housing 
Act, as amended.
    Except as noted by published waivers and alternative requirements, 
the statutory and regulatory provisions governing the CDBG program for 
states, including those at 24 CFR part 570 subpart I, shall apply to 
the use of these funds granted to states. In a Federal Register notice 
published December 10, 2004 (69 FR 72100), and effective December 15, 
2004, the Department promulgated waivers and alternative requirements 
necessary to facilitate the use of the subject grant funds.

Distribution of Funds Waiver

    This notice waives requirements at 42 U.S.C. 5306 to the extent 
necessary to allow the State of Maryland to use its grant funds to 
directly carry out the state-funded and state-administered Hurricane 
Isabel Rehabilitation, Renovation, and Replacement Housing Program 
(HIRRRP) and other state-administered activities related to disaster 
relief, long-term recovery, and mitigation from the covered disaster. 
The HIRRRP program is designed to help disaster victims with housing 
repair after all other sources of assistance are exhausted. Although 
local governments carry out most HUD disaster recovery activities, in 
the aftermath of Hurricane Isabel the State of Maryland shifted the 
responsibility for helping impacted households from local governments 
and Indian tribes onto the state, primarily through implementation of 
the HIRRRP. The state has asked for this waiver primarily to permit its 
HUD disaster recovery grant to be used to supplement its existing 
HIRRRP funds and to bring the total funding for this program closer to 
closing the gap with the total estimated need. The notice also provides 
conforming waivers to and alternative requirements for related areas of 
the regulations.
    In carrying out an activity directly, the State of Maryland must 
note that its environmental role is delineated at 24 CFR 58.4(b).

Description of Modifications

    1. A new paragraph 22 is added to the requirements of the notice 
published on December 10, 2004 (69 FR 72100), by adding text to read as 
follows:
    State of Maryland direct grant administration.
    22. a. Provisions of 42 U.S.C. 5306 currently require a state to 
distribute CDBG funds to units of general local government or Indian 
tribes rather than to carry activities out directly. This notice waives 
42 U.S.C. 5306 to the extent necessary to allow the State of Maryland 
to use its disaster recovery grant allocation directly to carry out 
HIRRRP and other state-administered activities related to disaster 
relief, long-term recovery, and mitigation from the covered disaster 
rather than distributing funds to units of general local government or 
to Indian tribes. The provisions of paragraph b. which follows, conform 
state CDBG rules to this waiver for the State of Maryland and do not 
apply to other disaster recovery grants under the Act.
    b. These conforming waivers and alternative requirements also 
apply:
    (i) At 24 CFR 570.480(c), with respect to the basis for HUD 
determining that the state has failed to carry out its certifications, 
such basis shall be that the state has failed to carry out its 
certifications in compliance with applicable program requirements.
    (ii) 24 CFR 570.490(a) and (b) are waived and the following 
provision shall apply: ``State records. The state shall establish and 
maintain such records as may be necessary to facilitate review and 
audit by HUD of the state's administration of CDBG funds under Sec.  
570.493. Consistent with applicable statutes, regulations, waivers and 
alternative requirements, and other federal requirements, the content 
of records maintained by the state shall be sufficient to enable HUD to 
make the applicable determinations described at Sec.  570.493; make 
compliance determinations for activities carried out directly by the 
state; and show how activities funded are consistent with the 
descriptions of activities proposed for funding in the action plan. For 
fair housing and equal opportunity purposes, and as applicable, such 
records shall include data on the racial, ethnic, and gender 
characteristics of persons who are applicants for, participants in, or 
beneficiaries of the program.'' 24 CFR 570.490(c) and (d) shall also 
apply.
    (iii) Change of use of real property. In 24 CFR 570.489(j), (j)(1), 
and the last sentence of (j)(2), ``unit of general local government'' 
shall be read as ``unit of general local government or state.''
    (iv) Responsibility for state review and handling of noncompliance. 
24 CFR 570.492 is waived and the following alternative requirement 
applies: The state shall make reviews and audits including on-site 
reviews of any subrecipients, designated public agencies, and units of 
general local government as may be necessary or appropriate to meet the 
requirements of Section 104(e)(2) of the Act. In the case of 
noncompliance with these requirements, the state shall take such 
actions as may be appropriate to prevent a continuance of the 
deficiency, mitigate any adverse effects or consequences, and prevent a 
recurrence. The state shall establish remedies for noncompliance by any 
designated public agencies or units of general local government and for 
its subrecipients.

    Dated: April 19, 2005.
Roy A. Bernardi,
Deputy Secretary.
[FR Doc. E5-1963 Filed 4-25-05; 8:45 am]
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