[Federal Register Volume 80, Number 63 (Thursday, April 2, 2015)]
[Notices]
[Pages 17772-17774]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-07622]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5696-N-15]


Additional Clarifying Guidance, Waivers, and Alternative 
Requirements for Grantees in Receipt of Community Development Block 
Grant Disaster Recovery Funds Under the Disaster Relief Appropriations 
Act, 2013

AGENCY: Office of the Assistant Secretary for Community Planning and 
Development, HUD. ACTION: Notice.
SUMMARY: This Notice provides a waiver and alternative requirement for 
the State of New Jersey's tenant-based rental assistance program funded 
through its Community Development Block Grant disaster recovery (CDBG-
DR) grant pursuant to the Disaster Relief Appropriations Act, 2013 
(Pub. L. 113-2) (the Appropriations Act). In addition, this Notice 
provides an alternative requirement for Major (Covered) Infrastructure 
Projects funded by grantees receiving an allocation for disasters 
occurring in 2013 under the Appropriations Act. This Notice also 
modifies a requirement for Disaster Recovery Grant Reporting System 
(DRGR) reporting requirements for all grantees receiving an allocation 
of CDBG-DR grants pursuant to the Appropriations Act.

DATES: Effective Date: April 7, 2015.

FOR FURTHER INFORMATION CONTACT: Stanley 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 Appropriations Act made available $16 billion in Community 
Development Block Grant disaster recovery (CDBG-DR) 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 the amount of 
funding for CDBG-DR grants under the Appropriations Act to $15.18 
billion. To date, a total of $15.18 billion has been allocated or set 
aside: $13 billion in response to Hurricane Sandy, $514 million in 
response to disasters occurring in 2011 or 2012, $655 million in 
response to 2013 disasters, and $1 billion set aside for the National 
Disaster Resilience Competition.
    This Notice specifies a waiver and modifies requirements for 
grantees in receipt of allocations under the Appropriations Act, which 
are described within the Federal Register Notices published by the 
Department on March 5, 2013 (78 FR 14329), April 19, 2013 (78 FR 
23578), May 29, 2013 (78 FR 32262), August 2, 2013 (78 FR 46999), 
November 18, 2013 (78 FR 69104), December 16, 2013 (78 FR 76154), March 
27, 2014 (79 FR 17173), June 3, 2014 (79 FR 31964), July 11, 2014 (79 
FR 40133), October 7, 2014 (79 FR 60490), October 16, 2014 (79 FR 
62182), and January 8, 2015 (80 FR 1039), referred to collectively in 
this Notice as the ``Prior Notices.'' The requirements of the Prior 
Notices continue to apply, except as modified by this Notice.\1\
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    \1\ Links to the Prior Notices, the text of the Appropriations 
Act, and additional guidance prepared by the Department for CDBG-DR 
grants, are available on the HUD Exchange Web site: https://www.hudexchange.info/cdbg-dr/cdbg-dr-laws-regulations-and-federal-register-notices/.
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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 HUD's 
obligation or 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

[[Page 17773]]

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.
    For the waiver and alternative requirement described in this 
Notice, the Secretary has determined that good cause exists and the 
waiver is not inconsistent with the overall purpose of the HCD Act. 
Grantees may request 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, 
waivers must be published in the Federal Register no later than five 
days before the effective date of such waiver.
    1. Tenant-based rental assistance (State of New Jersey only). The 
State of New Jersey previously requested a waiver of 42 U.S.C. 5305(a) 
in order to provide tenant-based rental assistance to households 
impacted by disasters eligible under the Appropriations Act, and the 
Department granted this waiver in the Federal Register Notice published 
on July 11, 2014 (79 FR 40134). This Notice replaces the waiver in the 
Notice published on July 11, 2014, in section II.3 and increases the 
amount of funding for this activity by providing an additional $15 
million of CDBG-DR funds for tenant- based rental assistance, 
increasing the amount covered by the waiver from $17 million to $32 
million.
    This waiver makes eligible up to $32 million of CDBG-DR funds to be 
used for rental assistance, utility payments and, if necessary, rental 
costs (i.e., security deposits and utility deposits). This assistance 
may be provided on behalf of beneficiaries for a period of up to two 
years. The State justified a longer term of assistance in order to meet 
the housing needs of vulnerable populations displaced by Hurricane 
Sandy until construction of affordable rental units is completed and 
those units become available.
    On May 30, 2014, the State entered into a Voluntary Compliance 
Agreement (VCA) with the Department in response to a complaint filed by 
civil rights and fair housing organizations regarding the State's 
administration of its CDBG-DR funded recovery programs. The VCA commits 
the State to providing an additional $15 million of CDBG-DR funds for 
tenant- based rental assistance, increasing the amount covered by the 
initial waiver from $17 million to $32 million.
    Thousands of households in New Jersey remain displaced and continue 
to need housing at a time when the State's housing stock has not fully 
recovered from the disaster. The decrease in the housing supply placed 
upward pressure on housing costs, making housing less affordable for 
households already strained by hurricane-related expenses. By 
increasing the amount of funding available for tenant-based rental 
assistance, the State will be able to assist more households and to 
minimize the incidence of homelessness by providing re-housing and 
rental assistance. Additionally, the State will link the assisted 
beneficiaries with services that can help them become stable and self-
sufficient. Throughout the rental assistance period, assisted 
households will receive referrals to available long-term units, as well 
as housing counseling.
    After reviewing the State's request, and in accordance with the 
VCA, HUD is waiving 42 U.S.C 5305(a) to make eligible an additional $15 
million of CDBG-DR funds for rental assistance and utility payments 
paid for up to two years on behalf of homeless and at-risk low- and 
moderate-income households displaced by Hurricane Sandy when such 
assistance or payments are part of a homeless prevention or rapid re-
housing program or activity. The State's tenant-based rental assistance 
must be funded through its Supportive Services program, limited to 
payments on behalf of beneficiaries of that program as described in the 
State's approved Action Plan, and must not be tied to HUD's Section 8 
program assistance. This waiver permits the State to review and approve 
applications for tenant-based rental assistance on behalf of 
beneficiaries from January 1, 2014 to January 1, 2016, and to provide 
rental assistance on behalf of approved applicants for up to 24 months, 
but in no case may assistance be provided on behalf of a beneficiary 
after January 1, 2018. The additional funds provided for the State's 
tenant-based rental assistance program through this waiver are subject 
to all requirements in the Notice published on July 11, 2014 (79 FR 
40133) as well as the requirements of the VCA and any subsequent 
amendments to the VCA.
    2. Identification/Description of Covered Projects (2013 Disaster 
Grantees only). In the Federal Register Notice published on October 16, 
2014 (79 FR 62182), the Department modified requirements for Covered 
Projects implemented by Hurricane Sandy grantees by stating that 
grantees need only provide an estimate of the total project cost and 
CDBG-DR contributions, instead of providing the exact amount of 
funding. The Department is extending this flexibility to Covered 
Projects held to the requirements of the Notice published on June 3, 
2014 (79 FR 31964). For any Covered Project held to the requirements of 
that Notice, Section V.3.g.1 (``Action Plan for Disaster Recovery 
waiver and alternative requirement--Infrastructure Programs and 
Projects, Additional Requirements for Major Infrastructure Projects, 
Identification/Description''), is modified to require: A description of 
the Covered Project, including: total project cost estimate 
(illustrating both the CDBG-DR award as well as other federal resources 
for the project, such as funding provided by the Department of 
Transportation or FEMA), CDBG eligibility (i.e., a citation to the HCD 
Act, applicable Federal Register notice, or a CDBG regulation), how it 
will meet a national objective, and the project's connection to 
Hurricane Sandy or other disasters cited in this Notice. The Department 
recognizes that grantees often finance large scale infrastructure 
projects by leveraging several sources of funds that may shift over 
time. Therefore, the Department may elect to approve projects based on 
estimates of total project cost and other funding sources as well as 
the CDBG-DR contribution amount.
    Grantees are expected to provide the best estimates available and 
the expected timeline for determining the exact costs. Grantees must 
submit an Action Plan Amendment to reflect any material adjustments to 
the cost estimate. Where an adjustment of the CDBG-DR contribution to a 
Covered Project triggers the substantial amendment criteria described 
in the March 5, 2013 Notice (78 FR 14329) at Section VI.A.3.a. by 
exceeding the $1 million threshold, grantees must submit a Substantial 
Action Plan Amendment subject to the requirements of that Notice, which 
requires no less than 7 calendar days to solicit public comment. All 
Covered Projects are subject to the 30-day comment period and public 
hearing required by the July 3, 2014, Notice (79 FR 31964). However, 
HUD will consider resubmissions of Covered Projects that have fulfilled 
the public review requirements and were submitted to HUD prior to the 
effective date of this Notice if they are revised only in accordance 
with the amended description requirements. Such resubmissions are 
subject to non-substantial Action Plan Amendment requirements.
    3. Reporting of Responsible Organizations in DRGR (all P.L. 113-2 
grantees). In order to draw CDBG-DR funds, grantees must enter an 
Action Plan into DRGR that includes all activities to be funded. DRGR 
requires

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that at least one Primary Responsible Organization be entered for each 
activity, and grantees may choose to add ancillary Responsible 
Organizations to an activity. A Dun and Bradstreet Data Universal 
Numbering System (DUNS) number must be entered for each Responsible 
Organization. The March 5, 2013 Notice (78 FR 14329) required grantees 
to enter a DUNS number into the system for any entity carrying out a 
CDBG-DR funded activity, including the grantee, recipient(s) and 
subrecipient(s), contractor(s) and developers carrying out a CDBG-DR 
activity. The language describing DRGR reporting requirements was later 
revised in the July 11, 2014 Notice (79 FR 40134) to exclude 
requirements for identifying contracts above $25,000. This Notice, 
however, did not modify requirements for entering Responsible 
Organizations or DUNS numbers. To reduce the reporting burden on 
grantees, paragraph II.1.a. at 79 FR 40134 is amended to require that 
grantees only enter a DUNS number for the Responsible Organization or 
Organizations associated with an activity--with the understanding that 
only a single primary Responsible Organization is required to be 
identified within grantee DRGR Action Plans--and now reads as follows:
    ``The Action Plan must also be entered into the DRGR system so that 
the grantee is able to draw its CDBG-DR funds. The grantee may enter 
activities into DRGR before or after submission of the Action Plan to 
HUD. To enter an activity into the DRGR system, the grantee must know 
the activity type, national objective, and the organization or 
organizations that will be responsible for the activity. In addition, a 
Data Universal Numbering System (DUNS) number must be entered into the 
system for each entity designated as a Responsible Organization for the 
activity.''
    Grantees are reminded that this modification applies only to 
requirements for DRGR DUNS number reporting and does not change any 
other Federal DUNS number reporting requirements.

III. Catalog of Federal Domestic Assistance

    The Catalog of Federal Domestic Assistance number for the disaster 
recovery grants under this Notice is as follows: 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 800-877-8339.

    Dated: March 27, 2015.
Ann Marie Oliva,
Deputy Assistant Secretary for Special Needs, Community Planning and 
Development.
[FR Doc. 2015-07622 Filed 4-1-15; 8:45 am]
BILLING CODE CODE 4210-67-P