[Federal Register Volume 88, Number 133 (Thursday, July 13, 2023)]
[Notices]
[Pages 44816-44817]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-14826]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-6397-N-01]


Waivers and Alternative Requirements for Community Development 
Block Grant Disaster Recovery (CDBG-DR) and Community Development Block 
Grant Mitigation (CDBG-MIT) Grantees

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

ACTION: Notice.

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SUMMARY: This notice governs Community Development Block Grant disaster 
recovery (CDBG-DR) and Community Development Block Grant mitigation 
(CDBG-MIT) funds awarded under several appropriations acts identified 
in the Table of Contents. This notice revises the period of performance 
and budget period for some grants and allows HUD to extend the period 
of performance and budget periods administratively for some grants.

DATES: Applicability Date: July 18, 2023.

FOR FURTHER INFORMATION CONTACT: Tennille Parker, Director, Office of 
Disaster Recovery, U.S. Department of Housing and Urban Development, 
451 7th Street SW, Room 7282, Washington, DC 20410, telephone number 
202-708-3587 (this is not a toll-free number). HUD welcomes and is 
prepared to receive calls from individuals who are deaf or hard of 
hearing, as well as individuals with speech or communication 
disabilities. To learn more about how to make an accessible telephone 
call, please visit: https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs. Email inquiries may be sent to 
[email protected].

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Authority To Grant Waivers and Alternative Requirements
II. Public Law 113-2 Statutory Extensions
III. Public Law 114-113, 114-254, 115-31, 115-56, 115-123, 115-254, 
and 116-20 Waiver and Alternative Requirements

I. Authority to Grant Waivers and Alternative Requirements

    Each of the appropriations acts cited in the Table of Contents 
authorize 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 grant funds, except for requirements related to 
fair housing, nondiscrimination, labor standards, and the environment. 
HUD may also exercise its regulatory waiver authority under 24 CFR 
5.110, 91.600, and 570.5.
    The waivers and alternative requirements in this notice are 
designed to create expediency for CDBG-DR and CDBG-MIT grantees related 
to extending expenditure deadlines. Allowing grantees the flexibility 
to receive extensions administratively will continue to support a swift 
recovery following eligible disasters, while ensuring that grantees 
have enough time to complete projects and that statutory requirements 
are met. Additionally, these waivers and alternative requirements are 
consistent with the in 2 CFR part 200 that Federal awards include a 
period of performance and a budget period. Based on these reasons, the 
Department has determined that good cause exists for the waiver and 
alternative requirement authorized in this notice, and that the waivers 
or alternative requirements are not

[[Page 44817]]

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).

II. Public Law 113-2 Statutory Extensions

    Statutory extensions for grants made available under Public Law 
113-2.
    Following two short-term statutory extensions (Pub. L. 116-260 and 
Pub. L. 117-103), section 420(a) of the Transportation, Housing and 
Urban Development, and Related Agencies Appropriations Act, 2023 (Pub. 
L. 117-328) provided that CDBG-DR grant obligations made before 
September 30, 2017 from funds made available under Public Law 113-2 are 
to remain available until expended. The requirements at 2 CFR 
200.211(b) require all Federal awards to include a period of 
performance and budget period. Therefore, HUD is revising the period of 
performance and budget period for open Federal awards made under Public 
Law 113-2 with an end date of September 30, 2029, when permissible 
under other applicable requirements that govern the use of funds under 
Public Law 113-2. The projections reported by Public Law 113-2 grantees 
indicate that this period is sufficient to allow for the full 
expenditure of any remaining grant funds.
    HUD may extend the time period in this alternative requirement and 
associated grant period of performance and budget period 
administratively, when permissible under other applicable requirements 
that govern the use of funds under Public Law 113-2, if good cause for 
such an extension exists at that time, as requested by the grantee, and 
approved by HUD. When the period of performance has ended, HUD will 
close out the grant and any remaining funds not expended by the grantee 
for appropriate programmatic purposes will be recaptured by HUD.

III. Public Law 114-113, 114-254, 115-31, 115-56, 115-123, 115-254, and 
116-20 Waivers and Alternative Requirements

    Waiver and alternative requirement modification to allow HUD to 
extend certain grantee's period of performance administratively.
    The Federal Register notices governing the use of funds for 
disasters occurring in 2015 and 2016 under Public Laws 114-113, 114-
254, and 115-31 require each grantee to expend 100 percent of its total 
allocation of CDBG-DR funds on eligible activities within six years of 
HUD's execution of the grant agreement. The provisions governing the 
timely distribution of funds for these CDBG-DR appropriations can be 
found in the following Federal Register notices: June 17, 2016 (81 FR 
39702) and November 21, 2016 (81 FR 83268).
    Additionally, Public Laws 115-56 and 115-123, as amended, require 
that CDBG-DR funds for disasters occurring in 2017, 2018, and 2019 be 
expended within two years of the date that HUD obligates funds to a 
grantee, but also authorizes the Office of Management and Budget (OMB) 
to provide a waiver of this requirement. OMB has waived this 
requirement for a combined total of $35,390,000,000 of CDBG-DR funds 
appropriated under these acts. However, the Federal Register notices 
governing the use of those funds require each grantee to expend 100 
percent of its total allocation of CDBG-DR funds on eligible activities 
within six years of HUD's initial obligation of funds. The provisions 
governing the timely distribution of funds for these CDBG-DR 
appropriations can be found in the February 9, 2018 (83 FR 5860) in the 
Federal Register notice.
    Additionally, the Federal Register notices governing the use of 
CDBG-MIT funds require each grantee to expend fifty percent of its 
CDBG-MIT grant on eligible activities within six years of HUD's 
execution of the grant agreement and one hundred percent of its grant 
within twelve years of HUD's execution of the agreement absent a waiver 
and alternative requirement as requested by the grantee and approved by 
HUD. The provisions governing the timely distribution of funds for 
these CDBG-MIT funds can be found in the August 30, 2019 (84 FR 45862) 
Federal Register notice.
    The Federal Register notices governing the use of CDBG-DR funds 
under Public Laws 114-113, 114-254, 115-31, 115-56, 115-123, 115-254, 
and 116-20 require each grantee to expend 100 percent of its CDBG-DR 
grant on eligible activities within 6 years of HUD's obligation of 
funds pursuant to an executed grant agreement. The provisions governing 
the duration of funding for these CDBG-DR appropriations can be found 
in the following Federal Register notices: June 17, 2016 (81 FR 39708); 
November 21, 2016 (81 FR 83274); January 18, 2017 (82 FR 5594); August 
7, 2017 (82 FR 36815); February 9, 2018 (83 FR 5868); August 14, 2018 
(83 FR 40323); January 27, 2020 (85 FR 4688); January 6, 2021 (86 FR 
568); and January 6, 2021 (86 FR 575).
    For funds appropriated under these seven appropriations acts for 
CDBG-DR and CDBG-MIT grants, HUD waived the timely distribution of 
funds requirements in 24 CFR 570.494 and 570.902 and imposed an 
alternative requirement. HUD is now modifying the waiver and 
alternative requirement that replaces 570.494 and 570.902 governing the 
timely distribution of CDBG-DR funds, by adding the following sentence 
at the end of the paragraphs at section VI.A.28. of the June 17, 2016 
notice (81 FR 39702); section VI.A.24. of the November 21, 2016 notice 
(81 FR 83268); section V.A.28. of the February 9, 2018 notice (83 FR 
5860); and section V.A.26. of the August 30, 2019 notice (84 FR 45862):
    HUD may extend the time period in this alternative requirement and 
associated grant period of performance administratively, if good cause 
for such an extension exists at that time, as requested by the grantee, 
and approved by HUD.
    HUD is also adding the following two sentences to the end of the 
Duration of Funding paragraphs at sections VII of the June 17, 2016 
notice (81 FR 39708) and the November 21, 2016 notice (81 FR 83274); 
section V of the January 18, 2017 notice (82 FR 5594); section I.E. of 
the August 7, 2017 notice (82 FR 36815); section VII of the February 9, 
2018 notice (83 FR 5868); section V of the August 14, 2018 notice (83 
FR 40323); section VII of the August 30, 2019 notice (84 FR 45870); and 
section V of the January 27, 2020 notice (85 FR 4688):
    HUD may extend the period of performance administratively, in 
accordance with the provisions of the waiver and alternative 
requirement governing the timely distribution of funds. When the period 
of performance has ended, HUD will close out the grant and any 
remaining funds not expended by the grantee on appropriate programmatic 
purposes will be recaptured by HUD.

Adrianne Todman,
Deputy Secretary.
[FR Doc. 2023-14826 Filed 7-12-23; 8:45 am]
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