[Federal Register Volume 76, Number 72 (Thursday, April 14, 2011)]
[Notices]
[Pages 20998-21001]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-9118]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5452-N-02]


Additional Allocations and Waivers Granted to and Alternative 
Requirements for 2010 Community Development Block Grant (CDBG) Disaster 
Recovery Grantees

AGENCY: Office of the Assistant Secretary for Community Planning and 
Development.

ACTION: Notice of allocations, waivers, and alternative requirements.

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SUMMARY: This Notice advises the public of the second allocation of 
grant funds for CDBG disaster recovery grants for the purpose of 
assisting 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 described in this 
Notice, HUD is authorized by statute and regulations to waive statutory 
and regulatory requirements and specify alternative requirements for 
this purpose upon the request of the grantees. This Notice describes 
applicable waivers and alternative requirements, as well as the 
application process, eligibility requirements, and relevant statutory 
and regulatory provisions for grants provided under this Notice.

DATES: Effective Date: April 19, 2011.

FOR FURTHER INFORMATION CONTACT: Scott Davis, Director, 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 via TTY by calling 
the Federal Information Relay Service at 800-877-8339. Facsimile 
inquiries may be sent to Mr. Davis at 202-401-2044. (Except for the 
``800'' number, these telephone numbers are not toll-free.)

SUPPLEMENTARY INFORMATION:

[[Page 20999]]

Allocations

    The Supplemental Appropriations Act, 2010 (Pub. L. 111-212, 
approved July 29, 2010) (hereinafter, ``Supplemental Appropriations 
Act'') appropriates $100 million, to remain available until expended, 
in CDBG funds for necessary expenses related to disaster relief, long-
term recovery, and restoration of infrastructure, housing, and economic 
revitalization in areas affected by severe storms and flooding from 
March 2010 through May 2010 for which the President declared a major 
disaster covering an entire State, or States with more than 20 counties 
declared major disasters, under title IV of the Robert T. Stafford 
Disaster Relief and Emergency Assistance Act of 1974 (42 U.S.C. 5121 et 
seq.). The Supplemental Appropriations Act further notes:

    That funds shall be awarded directly to the State or unit of 
general local government at the discretion of the Secretary * * * 
Provided further, that funds allocated under this heading shall not 
adversely affect the amount of any formula assistance received by a 
State or subdivision thereof under the Community Development Fund: 
Provided further, that a State or subdivision thereof may use up to 
5 percent of its allocation for administrative costs * * *

    In a Federal Register Notice published November 10, 2010 (75 FR 
69097), the Department allocated $50 million to three states and five 
units of general local government. Today's Notice allocates the 
remaining $50 million to the State of Tennessee and three of its local 
governments:

                               Table 1--Total Allocations Under Public Law 111-212
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                                                                      Initial          This            Total
                 State                           Grantee            allocation      allocation      allocation
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Kentucky..............................  State Government........     $13,000,000               0     $13,000,000
Rhode Island..........................  City of Cranston........       1,277,067               0       1,277,067
Rhode Island..........................  City of Warwick.........       2,787,697               0       2,787,697
Rhode Island..........................  State Government........       8,935,237               0       8,935,237
Tennessee.............................  City of Memphis.........       2,031,645       4,232,594       6,264,239
Tennessee.............................  Nashville-Davidson            10,731,831      22,357,982      33,089,813
                                         County.
Tennessee.............................  Shelby County...........       1,212,788       2,526,642       3,739,430
Tennessee.............................  State Government........      10,023,735      20,882,782      30,906,517
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    Total.............................  ........................  ..............  ..............     100,000,000
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    HUD computed the allocations in Table 1 based on data that are 
generally available and that cover all of the eligible affected areas. 
Second round allocations were made only to the State of Tennessee and 
its local communities based on the State representing over 75 percent 
of the estimated unmet needs for all eligible areas. For a more 
detailed description of the allocation methodology, please see Appendix 
A.

Use of Funds

    The Supplemental Appropriations Act requires funds to be used only 
for specific purposes. The statute directs that each grantee will 
describe, in an Action Plan for Disaster Recovery, criteria for 
eligibility and how the use of the grant funds will address long-term 
recovery, and restoration of infrastructure, housing, and economic 
revitalization. HUD monitors compliance with this directive and may 
disallow expenditures if it finds that funds duplicate other benefits 
or expenditures that do not meet a statutory purpose. HUD encourages 
grantees to contact their assigned HUD offices for guidance in 
complying with these requirements during development and implementation 
of their Action Plans for Disaster Recovery. HUD field offices are 
available at http://www.hud.gov/offices/cpd/about/staff/fodirectors/.
    As provided for in the Supplemental Appropriations Act, funds may 
be used as a matching requirement, share, or contribution for any other 
Federal program. However, the funds may not be used for activities 
reimbursable by, or for which funds are made available by, the Federal 
Emergency Management Agency (FEMA) or the Army Corps of Engineers. In 
other words, the CDBG disaster recovery funds may not supplant funds 
provided by FEMA or the Army Corps of Engineers.

Prevention of Fraud, Abuse, and Duplication of Benefits

    To prevent fraud, abuse of funds, and duplication of benefits, 
HUD's November 10, 2010 Federal Register Notice (75 FR 69097), includes 
specific reporting, written procedures, monitoring, and internal audit 
requirements applicable to each grantee. Please see the duplication of 
benefits note at paragraph 27 within the section ``Applicable Rules, 
Statutes, Waivers, and Alternative Requirements; Pre-Grant Process'' 
(75 FR 69108), and paragraph 5, sections C-D, within the same section 
(75 FR 69103).
    In addition, the Department will: (1) Institute risk analysis and 
on-site monitoring of grantee management of the grants and of the 
specific uses of funds, (2) be extremely cautious in considering any 
waiver related to basic financial management requirements; the 
standard, time-tested CDBG financial requirements will continue to 
apply, and (3) collaborate with the HUD Office of Inspector General to 
plan and implement oversight of these funds.

Authority To Grant Waivers

    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 and equal opportunity, labor standards, and the 
environment (including requirements concerning lead-based paint), upon: 
(1) A request by the grantee explaining why such a waiver is required 
to facilitate the use of such funds or guarantees, and (2) a finding by 
the Secretary that such a waiver would not be inconsistent with the 
overall purpose of Title I of the Housing and Community Development Act 
of 1974 (HCD Act). Regulatory waiver authority is also provided by 24 
CFR 5.110, 91.600, and 570.5.
    The Secretary finds that the waivers, alternative requirements, and 
statutory changes previously described in the November 10, 2010 Federal 
Register Notice (75 FR 69097), will apply without exception, to the 
funds allocated under today's Notice as they are necessary to 
facilitate the use of these funds for the statutory purposes, and are 
not inconsistent with the overall purpose of Title I of the HCD Act or 
the

[[Page 21000]]

Cranston-Gonzalez National Affordable Housing Act, as amended. Under 
the requirements of the Supplemental Appropriations Act and 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. Note that the waivers, alternative requirements, and 
statutory changes will not apply to funds provided under the regular 
CDBG program.

Application Process, Eligibility, and Relevant Statutory and Regulatory 
Provisions

    The waivers and alternative requirements described in the November 
10, 2010 Federal Register Notice (75 FR 69097) described the 
application requirements and eligible uses of funds under the 
Supplemental Appropriations Act, including the required Action Plan for 
Disaster Recovery. Each grantee receiving an allocation under today's 
Notice, which has not submitted an Action Plan for Disaster Recovery by 
the date of this Notice, is required to submit a Plan to program its 
total allocation by June 13, 2011. Each grantee receiving an allocation 
under today's Notice, which has submitted an Action Plan for Disaster 
Recovery by the date of this Notice, is required to submit an Action 
Plan Amendment to program its additional allocation by June 13, 2011. 
If any grantee fails to meet these requirements, HUD, on the first 
business day after the deadline, will commence an action to recapture 
any funds not programmed. Grantees must prepare the Action Plan in 
accordance with the application process described in the November 10, 
2010 Federal Register Notice (75 FR 69097).
    Unless noted otherwise, the term ``grantee'' refers to any 
grantee--whether State, city, or county--receiving a direct award under 
this Notice.

Applicable Rules, Statutes, Waivers, and Alternative Requirements

    Unless stated otherwise, the following waivers and alternative 
requirements apply to any State or unit of general local government 
receiving a direct award under this Notice.
    1. General note. Except as described in this Notice, statutory and 
regulatory provisions governing the State CDBG program shall apply to 
any State receiving an allocation under this Notice, while statutory 
and regulatory provisions governing the CDBG entitlement program shall 
apply to any unit of general local government receiving a direct 
allocation in this Notice. Applicable statutory provisions can be found 
at 42 U.S.C. 5301 et seq. Applicable State and entitlement provisions 
can be found at 24 CFR part 570.
    2. Prerequisites to a grantee's receipt of CDBG disaster recovery 
funds under this Notice. Prior to receiving funds under this Notice, 
each grantee that has not submitted an Action Plan for Disaster 
Recovery must: (1) Adopt a citizen participation plan, (2) publicize a 
proposed Action Plan, (3) provide public notice and allow for comment, 
and (4) submit to HUD an Action Plan for Disaster Recovery, including 
certifications, programming the grantee's entire allocation by June 13, 
2011. Upon acceptance by HUD of the Action Plan, a grant agreement will 
be executed and the funds will be accessible.
    Grantees that have already submitted an Action Plan for Disaster 
Recovery to HUD must: (1) Publicize a proposed Action Plan Amendment, 
(2) provide public notice and allow for comment, and (3) submit to HUD 
an Action Plan Amendment programming the grantee's additional 
allocation by June 13, 2011. Upon acceptance by HUD of the Action Plan 
Amendment, a revised grant agreement will be executed and the 
additional funds can be accessed.
    If any grantee fails to meet the requirement to program its entire 
allocation within the relevant timelines, HUD, on the first business 
day after that deadline, will commence an action to recapture the 
funds.
    3. Incorporation of waivers, alternative requirements, and 
statutory changes previously described. The waivers and alternative 
requirements provided in the November 10, 2010 Federal Register Notice 
(75 FR 69097) apply to each grantee receiving an allocation of funds 
under this Notice.

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, HUD determines that the purposes for which the 
appropriation has been made have been carried out and no disbursement 
has been made against the appropriation for two consecutive fiscal 
years. In such a case, HUD 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: 14.218; 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, Room 10276, 451 7th Street, SW., 
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.

Appendix A--Allocation Methodology Detail

    On November 10, 2010, HUD announced an allocation of $50 million to 
states and local governments in Tennessee, Kentucky, and Rhode Island 
to address unmet disaster recovery needs relating to the severe storms 
and flooding that occurred in the spring of 2010. In its press release, 
the Department stated the following:

    Today's announcement is meant to comply with Congress' directive 
that one-half of the $100 million appropriated in July for disaster 
recovery be obligated within 90 days. HUD will provide grantees with 
guidance on preparing plans and applying for their allocations. 
Further, HUD will continue to review long-term recovery needs to 
determine how to allocate the remaining $50 million in aid. The 
agency's review will include unmet housing, infrastructure and 
economic revitalization needs.

    HUD's methodology for estimating unmet needs and making allocations 
is fully stated in Appendix A of the November 10, 2010 Federal Register 
Notice (75 FR 69097). But to briefly recap, Tennessee represents over 
75 percent of the need among the four eligible states:

[[Page 21001]]



                                  Table 1--Preliminary Estimates of Unmet Needs
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                  State                        Housing       Infrastructure       Business            Total
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Tennessee...............................      $363,412,407       $64,907,061      $108,349,875      $536,669,343
Rhode Island............................        54,111,522         3,290,878        23,910,814        81,313,214
Kentucky................................        60,379,939         3,540,307        10,899,431        74,819,677
Nebraska................................                 0         1,186,985                 0         1,186,985
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    Total...............................       477,903,868        72,925,231       143,160,120       693,989,220
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    The State of Nebraska did not receive an allocation because a 
proportional allocation provides less than one million in funding and 
needs did not extend beyond that which the State could address on its 
own.
    As noted in the SUPPLEMENTARY INFORMATION section of this Notice, 
the initial allocation provided both Kentucky and Rhode Island with $13 
million for each state and its respective communities. Thus, they have 
already received an allocation in proportion to their need. As such, 
the remaining funds are distributed to the State of Tennessee and its 
local governments.

    Dated April 8, 2011.
Mercedes M. M[aacute]rquez,
Assistant Secretary Community Planning and Development.
[FR Doc. 2011-9118 Filed 4-13-11; 8:45 am]
BILLING CODE 4210-67-P