[Federal Register Volume 82, Number 25 (Wednesday, February 8, 2017)]
[Notices]
[Pages 9753-9754]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-02585]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5961-N-02]


Additional Clarifying Guidance, Waivers, and Alternative 
Requirements for Grantees in Receipt of Community Development Block 
Grant (CDBG) Disaster Recovery Grant 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 modifies 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). A waiver and alternative 
requirement for the tenant-based rental assistance program was 
initially published in a Federal Register notice on July 11, 2014 (79 
FR 40134), and later modified in the Federal Register notice published 
on April 2, 2015 (80 FR 17772).

DATES: Effective Date: February 13, 2017.

FOR FURTHER INFORMATION CONTACT: Jessie Handforth Kome, Acting 
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. Stan 
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].

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 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 (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 for the National Disaster 
Resilience Competition. This notice modifies the waiver and alternative 
requirement initially published in the Federal Register notice on July 
11, 2014 (79 FR 40133), and later modified in the Federal Register 
notice published on April 2, 2015 (80 FR 17772). All waivers and 
alternative requirements for Hurricane Sandy grantees in receipt of 
allocations under the Appropriations Act, are described within the 
Federal Register notices published by the Department on March 5, 2013 
(78 FR 14329), April 19, 2013 (78 FR 23578), August 2, 2013 (78 FR 
46999), November 18, 2013 (78 FR 69104), March 27, 2014 (79 FR 17173), 
July 11, 2014 (79 FR 40133), October 16, 2014 (79 FR 62182), April 2, 
2015 (80 FR 17772), and May 11, 2015 (80 FR 26942), August 25, 2015 (80 
FR 51589), November 18, 2015 (80 FR 72102), February 12, 2016 (81 FR 
7567), and August 15, 2016 (81 FR 54114) (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\
---------------------------------------------------------------------------

    \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/.
---------------------------------------------------------------------------

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

[[Page 9754]]

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.) (HCDA). 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 that 
the waiver and alternative requirement are not inconsistent with the 
overall purpose of Title I of the HCDA. 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 5 days before the effective date of 
such waiver.
    1. Tenant-based rental assistance (State of New Jersey, only). The 
State of New Jersey requested a waiver of 42 U.S.C. 5305(a) in order to 
provide up to $17 million in tenant-based rental assistance to 
households beyond the permissible length of time, and this waiver was 
granted by the Department in the Federal Register notice published on 
July 11, 2014 (79 FR 40134). While existing CDBG regulations allow 
payments for these purposes, those regulations limit assistance to a 
period not to exceed three months. The State justified longer term 
assistance in order to meet the housing needs of vulnerable populations 
until the State completes construction of affordable rental units and 
those units are made available to low- and moderate-income (LMI) 
populations.
    The State later requested that HUD increase the amount covered by 
the waiver from $17 million to $32 million, and extend the period of 
assistance by two years, to January 1, 2018, in order to meet the goals 
of a Voluntary Compliance Agreement (VCA) with the Department. HUD 
granted this waiver extension in the April 2, 2015 Federal Register 
notice (80 FR 17772) to support the State's compliance with its VCA and 
because of the continued lack of affordable housing caused by Hurricane 
Sandy.
    The State of New Jersey recently requested an extension to the 
expenditure deadline to January 1, 2019, to allow the State to provide 
up to two years of assistance to this LMI population. Without this 
extension, 85% of this LMI population would not be able to receive the 
full two years of assistance under the TBRA program. Because the 
Department is committed to assisting this population and allowing the 
State to disburse the full amount of assistance made available by the 
VCA, HUD is modifying its waiver of 42 U.S.C. 5305(a) to the extent 
necessary to allow the State to disburse the $32 million in Community 
Development Block Grant disaster recovery (CDBG-DR) funds allocated to 
State's TBRA program until January 1, 2019. The funds extended through 
this waiver are subject to the 24-month limitation on assistance and 
all other waiver and alternative requirements related to the TBRA 
program in the notice published on July 11, 2014 (79 FR 40133), as 
modified by the notice published on April 2, 2015 (80 FR 17772), as 
well as the requirements of the VCA and any subsequent amendments to 
the VCA.

III. Catalog of Federal Domestic Assistance

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

IV. Environmental Review

    This Notice does not direct, provide for assistance or loan and 
mortgage insurance for, or otherwise govern or regulate, real property 
acquisition, disposition, leasing (other than tenant-based rental 
assistance), rehabilitation, alteration, demolition, or new 
construction, or establish, revise or provide for standards for 
construction or construction materials, manufactured housing, or 
occupancy. Accordingly, under 24 CFR 50.19(c)(1), this Notice is 
categorically excluded from environmental review under the National 
Environmental Policy Act of 1969 (42 U.S.C 4321).

    Dated: February 3, 2017.
Janet M. Golrick,
Acting Deputy Secretary.
[FR Doc. 2017-02585 Filed 2-7-17; 8:45 am]
 BILLING CODE 4210-67-P