[Federal Register Volume 72, Number 164 (Friday, August 24, 2007)]
[Notices]
[Pages 48804-48806]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-16631]



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Part IV





Department of Housing and Urban Development





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 Additional Common Waivers Granted to and Alternative Requirements for 
CDBG Disaster Recovery Grantees Under Public Laws 109-148 and 109-234; 
Notice

  Federal Register / Vol. 72 , No. 164 / Friday, August 24, 2007 / 
Notices  

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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5089-N-05]


Additional Common Waivers Granted to and Alternative Requirements 
for CDBG Disaster Recovery Grantees Under Public Laws 109-148 and 109-
234

AGENCY: Office of the Secretary, HUD.

ACTION: Notice of waivers and alternative requirements.

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SUMMARY: 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 disaster recovery 
grants, upon the request of the state grantee(s). This Notice describes 
the additional waivers for the disaster recovery grants made to the 
States of Alabama, Florida, Louisiana, Mississippi, and Texas (the 
States), which are the Community Development Block Grant Program (CDBG) 
disaster recovery grantees under the subject appropriations acts.

DATES: Effective Date: August 29, 2007.

FOR FURTHER INFORMATION CONTACT: Jessie Handforth Kome, Director, 
Disaster Recovery and Special Issues Division, Office of Block Grant 
Assistance, Department of Housing and Urban Development, 451 Seventh 
Street, SW., Room 7286, Washington, DC 20410, telephone number (202) 
708-3587. Persons with hearing or speech impairments may access this 
number via TTY by calling the Federal Information Relay Service at 
(800) 877-8339. FAX inquiries may be sent to Ms. Kome at (202) 401-
2044. (Except for the ``800'' number, these telephone numbers are not 
toll-free.)

SUPPLEMENTARY INFORMATION:

Authority To Grant Waivers

    The first federal Fiscal Year (FY) 2006 supplemental appropriation 
for the CDBG program was the Department of Defense, Emergency 
Supplemental Appropriations to Address Hurricanes in the Gulf of 
Mexico, and Pandemic Influenza Act, 2006 (Pub. L. 109-148, approved 
December 30, 2005). The second 2006 supplemental appropriation was 
Chapter 9 of Title II of the Emergency Supplemental Appropriations Act 
for Defense, the Global War on Terror, and Hurricane Recovery, 2006 
(Pub. L. 109-234, approved June 15, 2006), which appropriates $5.2 
billion in CDBG funds for necessary expenses related to disaster 
relief, long-term recovery, and restoration of infrastructure directly 
related to the consequences of the covered disasters. These 2006 Acts 
(collectively ``the supplemental Acts'') authorize 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 
or guarantees, except for requirements related to fair housing, 
nondiscrimination, labor standards, and the environment, upon a request 
by a state and a finding by the Secretary that such a waiver would not 
be inconsistent with the overall purpose of the statute. The waiver 
authorizations differ in that while Public Law 109-148 directs that the 
Secretary ``shall'' make the waivers in response to a state's request 
and a consistency finding; Public Law 109-234 states that the Secretary 
``may'' make such waivers.
    The following waivers and alternative requirements for funds 
provided under either 2006 Act are in response to requests from all 
five states receiving CDBG disaster recovery grants under those Acts. 
In accordance with the states' earlier requests for administrative 
consistency to the extent feasible (noted in 71 FR 63337, published 
October 30, 2006), each waiver or alternative requirement will apply to 
assistance provided under either Act.
    The Secretary finds that the following waivers and alternative 
requirements, 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.
    Under the requirements of the Department of Housing and Urban 
Development Act, as amended (42 U.S.C. 3535(q)), regulatory waivers 
must be published in the Federal Register. Further, under the 
supplemental Acts, the Secretary must publish, in the Federal Register, 
any waiver of any statute or regulation that the Secretary administers 
pursuant to Title I of the Housing and Community Development Act of 
1974, no later than 5 days before the effective date of such waiver.
    Except as described in this and other notices applicable to these 
grants, statutory and regulatory provisions governing the CDBG program 
for states, including those at 24 CFR part 570, shall apply to the use 
of these funds. In accordance with the 2006 Acts, HUD will reconsider 
every waiver in this Notice on the 2-year anniversary of the day this 
Notice is published.

Waiver Justification

    In general, waivers already granted to the States of Alabama, 
Florida, Louisiana, Mississippi, and Texas and alternative requirements 
already specified for CDBG disaster recovery grant funds provided under 
Public Law 109-148 and Public Law 109-234 apply. The notices in which 
these prior waivers and alternative requirements appear are shown in 
the table below.

------------------------------------------------------------------------
                                   Publication
             Notice                   date            Applicability
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71 FR 7666, FR-5051-N-01.......      02/13/2006  Common Allocation/
                                                  Application for $11.5
                                                  billion.
71 FR 34448, FR-5051-N-02......      06/14/2006  State of Alabama.
71 FR 34451, FR-5051-N-04......      06/14/2006  State of Louisiana.
71 FR 34457, FR-5051-N-03......      06/14/2006  State of Mississippi.
71 FR 43622, FR-5051-N-05......      08/01/2006  State of Texas.
71 FR 51678, FR-5051-N-06......      08/30/2006  State of Florida.
71 FR 62372, FR-5051-N-07......      10/24/2006  State of Mississippi.
71 FR 63337, FR-5089-N-01......      10/30/2006  Common Allocation/
                                                  Application, and
                                                  Applicability of Prior
                                                  Waivers for $5.2
                                                  billion.
72 FR 10014, FR-5089-N-03......      03/06/2007  State of Louisiana.
72 FR 10020, FR-5089-N-03......      03/06/2007  State of Mississippi.
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    The provisions of this Notice do not apply to funds provided under 
the regular CDBG program or other HUD or federally funded programs. The 
provisions provide additional flexibility in program design and 
implementation and implement statutory requirements unique to these 
appropriations.

Section 414 of the Stafford Act

    The states have requested a waiver of section 414 of the Robert T. 
Stafford Disaster Relief and Emergency

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Assistance Act, as amended, for all their disaster recovery programs. 
This Notice grants, in part, the states' requests that the Secretary 
waive that section and provides alternative requirements more 
consistent with the purpose of the supplemental Acts, which is to 
assist and support disaster recovery in the areas most impacted by the 
effects of the hurricanes of 2005 in the Gulf Coast. Hurricanes 
Katrina, Rita, and Wilma resulted in unprecedented destruction in the 
Gulf States, which will require reconstruction for many years (and 
possibly decades) to come. The Department has surveyed other federal 
agencies' administration of section 414 and found varying 
interpretations for long-term, post-disaster projects involving the 
acquisition, rehabilitation, or demolition of disaster-damaged housing. 
The five Gulf States, in the meantime, are launching programs, such as 
rental rehabilitation, that could be affected by this statute and 
urgently need a conclusion and clear direction in order to restore 
affordable rental housing to the devastated areas. Therefore, to avoid 
possible risk to the recovery effort by further delay in providing the 
States with a definitive answer, the Department is issuing this Notice, 
which includes a partial statutory waiver and specifies alternative 
requirements. For programs or projects covered by this waiver 
(``covered programs or projects'') that are initiated within 3 years 
after the applicable disaster, the State must select one of the two 
alternative requirements specified in this Notice.

Alternative One

    The state may provide relocation assistance to a former residential 
occupant whose former dwelling is acquired, rehabilitated, or 
demolished for a covered program or project initiated within 3 years 
after the disaster, even though the actual displacements were caused by 
the effects of the disaster. To the extent practicable, such relocation 
assistance must be offered in a manner consistent with the Uniform 
Relocation Assistance and Real Property Acquisition Policies Act of 
1970, as amended (URA) and its implementing regulations, except as 
modified by applicable waivers and alternative requirements.

Alternative Two

    If the state determines that the first alternative would 
substantially conflict with meeting the disaster recovery purposes of 
the supplemental Acts, the state may establish a re-housing plan for a 
covered program or project initiated within 3 years after the disaster. 
Such determinations must be made on a program or project basis (not 
person or household). The re-housing plan must include, at minimum, the 
following:
    1. A description of the class(es) of persons eligible for 
assistance, including all persons displaced from their residences by 
particular enumerated, or all, effects of the disaster, and including 
all persons still receiving temporary housing assistance from FEMA for 
the covered disaster(s);
    2. A description of the types and amount of financial assistance to 
be offered, if any;
    3. A description of other services to be made available, including, 
at minimum, outreach efforts to eligible persons and housing counseling 
providing information about available housing resources. Outreach 
efforts and housing counseling information should be provided in 
languages other than English to persons with limited English 
proficiency; and
    4. Contact information and a description of any applicable 
application process, including any deadlines.
    5. If the program or project involves rental housing, the re-
housing plan must also include the following:
    (i) Placement services for former and prospective tenants;
    (ii) A public registry of available rental units assisted with CDBG 
disaster recovery and/or other funds; and
    (iii) Application materials, award letters, and operating 
procedures requiring property owners to make reasonable attempts to 
contact their former residential tenants and offer a unit upon 
completion to those tenants meeting the program's eligibility 
requirements.

Justification for Waiver

    The reasons for granting this waiver are several, and are ably 
represented by the States in their requests. The principal reasons are 
highlighted here:
     Hurricanes Katrina, Rita, and Wilma caused unprecedented 
destruction in the Gulf Coast region. The magnitude of destruction 
resulted in massive displacements and decimated the region's affordable 
housing stock. Continued ambiguity on section 414's applicability may 
cause substantial delays in long-term recovery along the Gulf Coast, 
particularly in Louisiana, Mississippi, and Texas;
     URA assistance may duplicate insurance proceeds and 
federal, state, or local housing assistance that has already been 
disbursed; and
     Simplify the administration of disaster recovery projects 
or programs initiated years following the disaster.
    Persons in physical occupancy who are displaced by a HUD-assisted 
disaster recovery project will continue to be eligible for URA 
assistance. Persons displaced by the effects of the disaster may 
continue to apply for assistance under the States' approved disaster 
recovery programs, which are designed to bring affordable housing to 
the affected areas. This waiver does not address programs or projects 
receiving other HUD funding, or funding from other federal sources.
    A state may already be performing some elements of a re-housing 
plan, such as providing a public rental registry or undertaking 
outreach and placement services to those former residents still 
receiving FEMA housing assistance. Description in the re-housing plan 
of how those existing efforts will be available for covered programs or 
projects may be used in satisfying the requirements of this Notice.

Applicable Rules, Statutes, Waivers, and Alternative Requirements

    1. General note. Except as described in this Notice, the statutory, 
regulatory, and notice provisions that shall apply to the use of these 
funds are:
    a. Those governing the funds appropriated under Public Law 109-148 
and Public Law 109-234 (the ``supplemental Acts'') and already 
published in the Federal Register.
    b. Those governing the CDBG program for states, including those at 
42 U.S.C. 5301 et seq. and 24 CFR part 570.
    2. Section 414 of the Stafford Act waiver and alternative 
requirements.
    a. Section 414 of the Stafford Act, 42 U.S.C. 5181 (including its 
implementing regulation at 49 CFR 24.403(d)), is waived to the extent 
that it would apply to CDBG disaster recovery-funded programs or 
projects initiated at least one year after Hurricanes Katrina, Rita, or 
Wilma (as applicable) by the States of Alabama, Florida, Louisiana, 
Mississippi, and Texas under an approved Action Plan for Disaster 
Recovery for its grants under Public Law 109-148 or Public Law 109-234; 
provided that such program or project was not planned, approved, or 
otherwise underway prior to the disaster.
    b. For all programs or projects covered by this waiver (``covered 
programs or projects'') that are initiated within 3 years after the 
applicable disaster, the States of Alabama, Florida, Louisiana, 
Mississippi, and Texas must comply with one of the following two 
alternative requirements:
    1. Relocation Assistance. The state may provide relocation 
assistance to a former residential occupant whose

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former dwelling is acquired, rehabilitated, or demolished for a covered 
program or project initiated within 3 years after the disaster, even 
though the actual displacements were caused by the effects of the 
disaster. To the extent practicable, such relocation assistance must be 
offered in a manner consistent with the Uniform Relocation Assistance 
and Real Property Acquisition Policies Act of 1970, as amended, and its 
implementing regulations, except as modified by prior waivers and 
alternative requirements granted to the States.
    2. Re-housing Plan. If the state determines that the first 
alternative would substantially conflict with meeting the disaster 
recovery purposes of the supplemental Acts, the grantee may establish a 
re-housing plan for a covered program or project initiated within 3 
years after the disaster. Such a determination must be made on a 
program or project basis (not person or household). The re-housing plan 
must include, at minimum, the following:
    i. A description of the class(es) of persons eligible for 
assistance, including all residents displaced from their residences by 
certain enumerated or all effects of the covered disaster, and 
including all disaster-displaced residents still receiving temporary 
housing assistance from FEMA for the covered disasters;
    ii. A description of the types and amount of financial assistance 
to be provided, if any;
    iii. A description of other services to be made available, 
including, at minimum, outreach efforts to eligible persons and housing 
counseling that provide information about available housing resources;
    iv. Contact information for additional program information;
    v. A description of any applicable application process, including 
any deadlines; and
    vi. If the program or project covered by this waiver involves 
rental housing, the grantee shall establish procedures for the 
following:
    A. Application materials, award letters, and operating procedures 
that require property owners to make reasonable attempts to contact 
their former tenants and to offer a unit upon completion to those 
tenants meeting the program's eligibility requirements;
    B. Placement services for former and prospective tenants; and
    C. A public registry of available rental units assisted with CDBG 
disaster recovery and/or other funds.
    c. Eligible Project Costs. The cost of relocation assistance and 
the re-occupancy plan are eligible project costs in the same manner and 
to the same extent as other projects costs authorized under the 
supplemental Acts. For covered programs or projects involving 
affordable rental housing, the relocation and planning costs required 
by this Notice may be paid from funds reserved for the affordable 
rental housing stock in the impacted areas under Public Law 109-234.
    2. Information collection approval note. The information collection 
requirements contained in this Notice have been approved by the Office 
of Management and Budget (OMB), in accordance with the Paperwork 
Reduction Act of 1995 (44 U.S.C. 3501-3520), and assigned OMB control 
number 2506-0165. In accordance with the Paperwork Reduction Act, HUD 
may not conduct or sponsor, nor is a person required to respond to, a 
collection of information, unless the collection displays a valid 
control number.

Catalog of Federal Domestic Assistance

    The Catalog of Federal Domestic Assistance numbers for the disaster 
recovery grants under this Notice are as follows: 14.219; 14.228.

Finding of No Significant Impact

    A Finding of No Significant Impact (FONSI) with respect to the 
environment has been made, in accordance with HUD regulations at 24 CFR 
part 50, which implement section 102(2)(C) of the National 
Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)). The FONSI is 
available for public inspection between 8 a.m. and 5 p.m. weekdays in 
the Office of the Rules Docket Clerk, Office of General Counsel, 
Department of Housing and Urban Development, 451 Seventh Street, SW., 
Room 10276, Washington, DC 20410-0500. Due to security measures at the 
HUD Headquarters building, an advance appointment to review the FONSI 
must be scheduled by calling the Regulations Division at (202) 708-3055 
(this is not a toll-free number).

    Dated: August 16, 2007.
Roy A. Bernardi,
Deputy Secretary.
[FR Doc. E7-16631 Filed 8-23-07; 8:45 am]
BILLING CODE 4210-67-P