[Federal Register Volume 78, Number 149 (Friday, August 2, 2013)]
[Notices]
[Pages 46999-47000]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-18643]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5696-N-04]


Additional Waivers and Alternative Requirements for Hurricane 
Sandy Grantees in Receipt of Community Development Block Grant Disaster 
Recovery Funds

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

ACTION: Notice.

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SUMMARY: Previously, the Department allocated $5.4 billion of Community 
Development Block Grant disaster recovery (CDBG-DR) funds appropriated 
by the Disaster Relief Appropriations Act, 2013 for the purpose of 
assisting recovery in the most impacted and distressed areas declared a 
major disaster due to Hurricane Sandy (see 78 FR 14329, published in 
the Federal Register on March 5, 2013). This notice provides additional 
waivers and alternative requirements.

DATES: This notice is effective: August 6, 2013.

FOR FURTHER INFORMATION CONTACT: Stan Gimont, Director, 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 Relay Service at 800-877-8339. Facsimile 
inquiries may be sent to Mr. Gimont at 202-401-2044. (Except for the 
``800'' number, these telephone numbers are not toll-free.) Email 
inquiries may be sent to [email protected].

SUPPLEMENTARY INFORMATION: 

Table of Contents

I. Background
II. Applicable Rules, Statutes, Waivers, and Alternative 
Requirements
III. Catalog of Federal Domestic Assistance
IV. Finding of No Significant Impact

I. Background

    The Disaster Relief Appropriations Act, 2013 (Pub. L. 113-2, 
approved January 29, 2013) (Appropriations Act) makes available $16 
billion in Community Development Block Grant (CDBG) funds for necessary 
expenses related to disaster relief, long-term recovery, restoration of 
infrastructure and housing, and economic revitalization in the most 
impacted and distressed areas resulting from a major disaster declared 
pursuant to the Robert T. Stafford Disaster Relief and Emergency 
Assistance Act of 1974 (42 U.S.C. 5121 et seq.) (Stafford Act), due to 
Hurricane Sandy and other eligible events in calendar years 2011, 2012, 
and 2013.
    On March 1, 2013, the President issued a sequestration order 
pursuant to section 251A of the Balanced Budget and Emergency Deficit 
Control Act, as amended (2 U.S.C. 901a), and reduced funding for CDBG 
disaster recovery (CDBG-DR) grants under the Appropriations Act to 
$15.18 billion. In a Federal Register notice published March 5, 2013 
(78 FR 14329), the Department allocated $5.4 billion after analyzing 
the impacts of Hurricane Sandy and identifying unmet needs. A 
subsequent notice, providing additional guidance, waivers, and 
alternative requirements for Hurricane Sandy grantees was published by 
the Department on April 19, 2013 (78 FR 23578). This notice provides 
additional waivers and alternative requirements to several Hurricane 
Sandy grantees--the State of New York and the State of New Jersey.

II. Applicable Rules, Statutes, Waivers, and Alternative Requirements

    The 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 the use by the recipient of these funds 
(except for requirements related to fair housing, nondiscrimination, 
labor standards, and the environment). Waivers and alternative 
requirements are based upon a determination by the Secretary that good 
cause exists and that the waiver or alternative requirement is not 
inconsistent with the overall purposes of Title I of the Housing and 
Community Development Act of 1974 (42 U.S.C. 5301 et seq.) (HCD Act). 
Regulatory waiver authority is also provided by 24 CFR 5.110, 91.600, 
and 570.5.
    This section provides additional waivers and alternative 
requirements to several Hurricane Sandy grantees. For each waiver and 
alternative requirement described in this notice, the Secretary has 
determined that good cause exists and the action is not inconsistent 
with the overall purpose of the HCD Act. Grantees may request 
additional waivers and alternative requirements from the Department as 
needed to address specific needs related to their recovery activities. 
Under the requirements of the Appropriations Act, regulatory waivers 
must be published in the Federal

[[Page 47000]]

Register no later than five days before the effective date of such 
waiver.
    1. Waiver to permit some activities in support of the tourism 
industry (State of New York only). In the notice published on April 19, 
2013, the Department granted the State of New York a waiver to allow 
the State to fund certain tourism activities within the counties most 
impacted and distressed by Hurricane Sandy. This notice broadens that 
waiver to allow the State to fund certain tourism activities within 
counties receiving a Presidential disaster declaration in response to 
Hurricane Irene and/or Tropical Storm Lee.
    Tourism in Irene/Lee-impacted counties generates approximately $14 
billion each year. In the 30 counties affected by Hurricane Irene and 
Tropical Storm Lee, 11,000 businesses were impacted, accounting for 
138,000 jobs. During this same time period, 13 of the impacted counties 
(located in the Adirondacks, Southern Tier and Central New York) 
experienced an economic loss of approximately $108 million in direct 
visitor spending and positive impact on state and local taxes. Without 
this waiver, the State estimates that the economic recovery in these 
areas will continue to significantly lag behind the pre-storm average 
growth rates, resulting in job loss and business closures.
    Thus, HUD is broadening its previous waiver: 42 U.S.C. 5305(a) and 
24 CFR 570.489(f) are waived only to the extent necessary to allow the 
State to expend up to $3 million (of the $30 million already approved 
by the Department) for the tourism industry to promote tourism in 
counties in receipt of a Presidential disaster declaration in response 
to Hurricane Irene and/or Tropical Storm Lee. Thus, this notice allows 
CDBG-DR funds to be used to promote a community or communities in 
general, provided the assisted activities are designed to support 
tourism within areas designated major disaster areas as a result of 
Hurricane Irene or Tropical Storm Lee. In addition, per the April 19, 
2013, notice, the State of New York may use CDBG-DR funds to promote a 
community or communities in general, provided the assisted activities 
are designed to support tourism to the most impacted and distressed 
areas related to the effects of Hurricane Sandy. This waiver will 
expire at the end of the State's two-year expenditure period.
    2. Use of ``uncapped'' income limits (State of New Jersey only). 
The State of New Jersey plans to initially target disaster recovery 
funds to low- and moderate-income households and has enaged in targeted 
outreach to ensure these households, particularly in high cost areas, 
can receive recovery funding. To ensure that all eligible households 
that are low- and moderate-income have equal access to resources, the 
State requested a waiver to allow all of the nine most impacted 
counties within the State to use HUD's ``uncapped income limits'' to 
better reflect the population of low- and moderate-income households in 
those areas.
    The Quality Housing and Work Responsibility Act of 1998 (Title V of 
Pub. L. 105-276) enacted a provision that directed the Department to 
grant exceptions to at least 10 jurisdictions that are currently 
``capped'' under HUD's low and moderate-income limits. Under this 
exception, a number of CDBG entitlement grantees may use ``uncapped'' 
income limits that reflect 80 percent of the actual median income for 
the area. Typically, average incomes (and thus the cost of living, 
including home values) in these entitlement grantees are significantly 
higher than in surrounding areas. By using uncapped income limits, 
grantees are better able to identify and assist those households 
considered to be low- to moderate-income for that particular area.
    In the Federal Register notice dated March 5, 2013, the Department 
noted that the uncapped limits apply to disaster recovery activities 
funded pursuant to this notice in jurisdictions covered by the uncapped 
limits, including jurisdictions that receive disaster recovery funds 
from the State. While there are New Jersey counties that were most 
impacted by Hurricane Sandy that currently use the ``uncapped'' income 
limits, there are several that do not use the uncapped limits. The 
State's efforts to target CDBG resources to low- and moderate-income 
households means that those counties that already have the uncapped 
income limits (and thus more households that may be designated as low- 
and moderate-income) have a greater likelihood of receiving funding 
than counties that do not have the uncapped income limits despite 
having similar income demographics.
    This notice imposes an alternative requirement to the applicable 
U.S. median family income cap on income limits that will apply to the 
State of New Jersey. The alternative requirement extends the exemption 
permitting the use of the uncapped income limits to all of the nine 
most impacted counties that were impacted by Hurricane Sandy within the 
State of New Jersey to ensure that households that are low- and 
moderate-income have equal opportunities to access funds. More 
information about this exemption can be found on HUD's Web site at 
http://www.hud.gov/offices/cpd/systems/census/lowmod/uncapped.cfm.

III. Catalog of Federal Domestic Assistance

    The Catalog of Federal Domestic Assistance number for the disaster 
recovery grants under this notice is 14.269.

IV. 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 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 Relay Service at 800-877-9339.

    Dated: July 26, 2013.
Mark Johnston,
Deputy Assistant Secretary for Special Needs Programs.
[FR Doc. 2013-18643 Filed 8-1-13; 8:45 am]
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