[Federal Register Volume 73, Number 245 (Friday, December 19, 2008)]
[Notices]
[Pages 77818-77821]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-30185]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5250-N-02]


Additional Allocations for Midwest Flood Community Development 
Block Grant (CDBG) Disaster Recovery Grantees under the Supplemental 
Appropriations Act, 2008

AGENCY: Office of the Secretary, HUD.

ACTION: Notice of allocations.

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SUMMARY: This notice advises the public of the second allocation of 
CDBG disaster recovery grants for the purpose of assisting in the 
recovery in areas covered by a declaration of major disaster under 
title IV of the Robert T. Stafford Disaster Relief and Emergency 
Assistance Act (42 U.S.C. 5121 et seq.) as a result of natural 
disasters that were recent as of the law's enactment in June 2008. As 
described in the supplementary information section of this notice, HUD 
is authorized by statute and regulations to waive statutory and 
regulatory requirements and specify alternative requirements, upon the 
request of the state grantees. This notice also describes how a state 
receiving an allocation may implement the common application, 
eligibility, and administrative waivers and the common alternative and 
statutory requirements for the grants.

DATES: Effective Date: December 24, 2008.

FOR FURTHER INFORMATION CONTACT: Jessie Handforth Kome, Director,

[[Page 77819]]

Disaster Recovery and Special Issues Division, Office of Block Grant 
Assistance, Department of Housing and Urban Development, 451 7th 
Street, SW., Room 7286, Washington, DC 20410, telephone number 202-708-
3587. Persons with hearing or speech impairments may access this number 
through TTY by calling the Federal Information Relay Service at 800-
877-8339. Facsimile inquiries may be sent to Ms. Kome at 202-401-2044. 
(Except for the ``800'' number, the telephone numbers are not toll 
free.)

SUPPLEMENTARY INFORMATION: 

Authority to Grant Waivers

    The Supplemental Appropriations Act, 2008 (Pub. L. 110-252, 
approved June 30, 2008) (Supplemental Appropriations Act) appropriates 
$300 million, to remain available until expended, in CDBG funds for 
necessary expenses related to disaster relief, long-term recovery, and 
restoration of infrastructure in areas covered by a 2008 declaration of 
major disaster under title IV of the Robert T. Stafford Disaster Relief 
and Emergency Assistance Act (42 U.S.C. 5121 et seq.). The Supplemental 
Appropriations 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 and 
guarantees, except for requirements related to fair housing, 
nondiscrimination, labor standards, and the environment (including 
requirements concerning lead-based paint), upon a request by the state 
and a finding by the Secretary that such a waiver would not be 
inconsistent with the overall purpose of the statute. Additionally, 
regulatory waiver authority is provided by 24 CFR 5.110, 91.600, and 
570.5.
    On September 11, 2008, at 73 FR 52870, the Department published its 
initial allocation for grant funds for the CDBG disaster recovery 
grants funded under the Supplemental Appropriations Act. In that 
notice, the Department noted that it would make two allocations, one to 
the three most affected states and a second when HUD had more 
information to better determine the needs of each state under this 
appropriation. Today's Federal Register notice allocates the balance of 
the $300 million allocation under the Supplemental Appropriations Act. 
Under the requirements of the Department of Housing and Urban 
Development Reform Act of 1989 (the HUD Reform Act), regulatory waivers 
must be justified and published in the Federal Register.
    Except as described in this notice, 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 Supplemental Appropriations Act, HUD will reconsider every waiver 
granted under this notice on the 2-year anniversary of the day this 
notice is published.

Additional Waivers

    Each state receiving an allocation may request additional waivers 
from the Department as needed to address the specific needs related to 
that state's recovery activities. The Department will respond 
separately to state requests for waivers of provisions not covered in 
this notice, after working with the state to tailor the program to best 
meet the unique disaster recovery needs in its impacted areas.

Allocations

    The Supplemental Appropriations Act provides $300 million of 
supplemental appropriation for the CDBG program for:

    Necessary expenses related to disaster relief, long-term 
recovery, and restoration of infrastructure in areas covered by a 
declaration of major disaster under title IV of the Robert T. 
Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 
5121 et seq.) as a result of recent natural disasters.

    The law further notes:

    That funds provided under this heading shall be administered 
through an entity or entities designated by the Governor of each 
state. Provided further, that funds allocated under this heading 
shall not adversely affect the amount of any formula assistance 
received by a state under this heading: Provided further, that each 
state may use up to five percent of its allocation for 
administrative costs.

    Table 1, shown below, lists the states receiving an allocation. 
Based on preliminary data, Iowa, Indiana, and Wisconsin received 
initial allocations for a subset of the funds. Those allocations were 
announced on August 4, 2008, and are included in the Table.

                          Table 1--Federally Declared Disaster With an Incident Date and Declaration Date in May and June 2008
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                                                           Declared
           Disaster No.                Incident date         date               State               Disaster type                 Allocation
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1753.............................  3/20 to 5/19........       5/8/08  Mississippi..............  Severe Storms and    $2,281,287.
                                                                                                  Flooding.
1755.............................  4/28 to 5/14........       5/9/08  Maine....................  Severe Storms and    $2,187,114.
                                                                                                  Flooding.
1756.............................  5/10 to 5/13........      5/14/08  Oklahoma.................  Severe Storms,       $1,793,876.
                                                                                                  Tornadoes, and
                                                                                                  Flooding.
1758.............................  5/2 to 5/12.........      5/20/08  Arkansas.................  Severe Storms,       $4,747,501.
                                                                                                  Flooding, and
                                                                                                  Tornadoes.
1759.............................  5/1.................      5/22/08  South Dakota.............  Severe Winter Storm  $1,987,271.
                                                                                                  and Record and
                                                                                                  Near Record Snow.
1760.............................  5/10 to 5/11........      5/23/08  Missouri.................  Severe Storms and    $3,519,866.
                                                                                                  Tornadoes.
1762.............................  5/21................      5/26/08  Colorado.................  Severe Storms and    $589,651.
                                                                                                  Tornadoes.
1763.............................  5/25 and continuing.      5/27/08  Iowa.....................  Severe Storms,       1st: $85,000,000.
                                                                                                  Tornadoes, and      2nd: $71,690,815.
                                                                                                  Flooding.           Total: $156,690,815.
1766.............................  5/30-6/27...........       6/8/08  Indiana..................  Severe Storms and    1st: $10,000,000.
                                                                                                  Flooding.           2nd: $57,012,966.
                                                                                                                      Total: $67,012,966.
1767.............................  5/1.................      6/13/08  Montana..................  Severe Winter        $666,672.
                                                                                                  Storms.
1768.............................  6/5 and continuing..      6/14/08  Wisconsin................  Severe Storms,       1st: $5,000,000.
                                                                                                  Tornadoes, and      2nd: $19,057,378.
                                                                                                  Flooding.           Total: $24,057,378.
1769.............................  6/3 to 6/7..........      6/19/08  West Virginia............  Severe Storms,       $3,127,935.
                                                                                                  Tornadoes,
                                                                                                  Flooding,
                                                                                                  Mudslides, and
                                                                                                  Landslides.

[[Page 77820]]

 
1770.............................  5/22................      6/20/08  Nebraska.................  Severe Storms,       $5,557,736.
                                                                                                  Tornadoes, and
                                                                                                  Flooding.
1771.............................  6/1 to 7/22.........      6/24/08  Illinois.................  Severe Storms and    $17,341,434.
                                                                                                  Flooding.
1772.............................  6/7 to 6/12.........      6/25/08  Minnesota................  Severe Storms and    $925,926.
                                                                                                  Flooding.
1773.............................  6/1 to 8/13.........      6/25/08  Missouri.................  Severe Storms and    $7,512,572.
                                                                                                  Flooding.
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    The appropriation calls for funding ``recent natural disasters.'' 
Since this appropriation was enacted on June 30, 2008, HUD has 
interpreted the language of ``recent natural disasters'' to be the 16 
major natural disasters with an incident and declared date in May or 
June of 2008. There were no declared disasters in April 2008, which 
allows for a ``natural break.'' This limited the eligibility for an 
allocation to the 16 disasters shown in Table 1.
    For the 16 natural disasters, HUD calculated ``unmet needs'' for 
housing, business, and infrastructure recovery. Unmet needs are defined 
as follows:
1. Unmet housing needs. The number of housing units with unmet needs 
times the estimated cost to repair those units (less repair funds 
already provided by the Federal Emergency Management Agency (FEMA)). 
Data were provided by FEMA on October 1, 2008, and by the Small 
Business Administration (SBA) on October 3, 2008. Unmet housing needs 
are calculated using three ``levels of FEMA damage''--$8,001 to 
$15,000; $15,001 to $28,800; and greater than $28,800. Unmet housing 
needs exist where:
    a. The number of owner-occupied units with unmet needs equals: 
Units FEMA inspectors determined would require more than $8,000 to 
become habitable and that were determined by FEMA to be eligible for a 
repair or replacement grant (up to $28,800).
    b. The number of rental units with unmet needs equals: Units that 
FEMA inspectors determined would require more than $8,000 to become 
habitable times the ``unmet need rate'' of owners. That is, if 50 
percent of owner-occupied dwellings had damage not being covered by 
insurance or an SBA loan for a particular disaster, HUD assumes that 50 
percent of rental units had damage not covered by insurance or an SBA 
loan.
    c. The average cost to fully repair the home equals: The average 
real-property damage repair cost determined by the SBA for its disaster 
loan program (less the repair grant amount from FEMA) for the subset of 
homes inspected by SBA. Because SBA is inspecting for full-repair 
costs, it is a better estimate of the true cost to repair.
    2. Unmet business needs. The sum of real-property and real-content 
loss of small businesses applying for an SBA disaster loan as verified 
by SBA inspectors, less the real-property and real-content loss 
approved for an SBA loan. Data were provided by the SBA on October 3, 
2008.
    3. Unmet infrastructure needs. The sum of the ``non-federal share'' 
of costs eligible for funding under FEMA's Public Assistance program. 
This reflects the greater of the current FEMA estimate of costs or the 
amount specifically determined eligible through FEMA's Public 
Assistance Worksheets. Data were provided by FEMA as of October 22, 
2008.

Waiver Justification

    The waivers, alternative requirements, and statutory changes 
described in the September 11, 2008, notice apply to the CDBG 
supplemental disaster recovery funds appropriated in the Supplemental 
Appropriations Act, not to funds provided under the regular CDBG 
program. These actions provide additional flexibility in program design 
and implementation and implement statutory requirements unique to this 
appropriation. The September 11, 2008, notice provides further 
justification for the waivers.

Application for Allocations Under the Supplemental Appropriations Act

    The waivers and alternative requirements streamline the pre-grant 
process and set the guidelines for states' applications requesting 
their allocations. A state receiving an allocation under this notice 
will be granted the waivers and alternative requirements provided in 
the September 11, 2008, notice if the state requests in writing that 
HUD grant it the waivers and alternative requirements of that notice 
and describes good cause why such waivers should be granted. HUD 
encourages each grantee that receives an allocation under this notice 
to submit an Action Plan for Disaster Recovery to HUD as soon as 
practicable following an allocation announcement. By March 13, 2009, if 
a state has: (1) Failed to submit a substantially complete application, 
(2) submitted an application for less than its total allocation, or (3) 
waived its rights to the entire allocation, HUD may notify the state of 
the reduction in its allocation amount and proceed to reallocate the 
funds to another state receiving disaster recovery funds under this 
notice.

Applicable Rules, Statutes, Waivers, and Alternative Requirements

    1. General note. Prerequisites to a grantee's receipt of CDBG 
disaster recovery assistance include adoption of a citizen 
participation plan; publication of its proposed Action Plan for 
Disaster Recovery; public notice and comment; and submission of an 
Action Plan for Disaster Recovery to HUD, including certifications. 
Except as described in this notice, statutory and regulatory provisions 
governing the CDBG program for states, including those at 42 U.S.C. 
5301 et seq. and 24 CFR part 570, shall apply to the use of these 
funds.
    2. The waivers provided in the September 11, 2008, notice will be 
granted and the alternative requirements of that notice provided to a 
state that receives an allocation of grant funds under this notice and 
that requests in writing that HUD grant it the waivers and alternative 
requirements of that notice and describes good cause for granting such 
waivers.

Duration of Funding

    Availability of funds provisions in 31 U.S.C. 1551-1557, added by 
section 1405 of the National Defense Authorization Act for Fiscal Year 
1991 (Pub. L. 101-510), limit the availability of certain 
appropriations for expenditure. This limitation may not be waived. 
However, the Supplemental Appropriations Act for these grants directs 
that these funds be available until expended unless, in accordance with 
31 U.S.C. 1555, the Department determines that the purposes for which 
the appropriation has been made have been carried out and no 
disbursement has been made against the appropriation

[[Page 77821]]

for 2 consecutive fiscal years. In such case, the Department shall 
close out the grant prior to expenditure of all funds.

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). The FONSI is 
available for public inspection between 8 a.m. and 5 p.m. weekdays in 
the Regulations Division, Office of General Counsel, Department of 
Housing and Urban Development, 451 7th Street, SW., Room 10276, 
Washington, DC 20410-0500. Due to security measures at the HUD 
Headquarters building, an advance appointment to review the docket file 
must be scheduled by calling the Regulations Division at 202-708-3055 
(this is not a toll-free number). Hearing or speech-impaired 
individuals may access this number through TTY by calling the toll-free 
Federal Information Relay Service at 800-877-8339.

    Dated: December 9, 2008.
Roy A. Bernardi,
Deputy Secretary.
 [FR Doc. E8-30185 Filed 12-18-08; 8:45 am]
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