[Federal Register Volume 64, Number 248 (Tuesday, December 28, 1999)]
[Notices]
[Pages 72872-72874]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-33674]
[[Page 72871]]
_______________________________________________________________________
Part XIII
Department of Housing and Urban Development
_______________________________________________________________________
Disaster Recovery Initiative Waivers and Modifications; Requirements
for Community Development Block Grant Funds; Notice
Federal Register / Vol. 64, No. 248 / Tuesday, December 28, 1999 /
Notices
[[Page 72872]]
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-4482-N-02]
1999 HUD Disaster Recovery Initiative Waivers and Modifications
of Requirements for Community Development Block Grant Funds Under the
Omnibus Consolidated and Emergency Supplemental Appropriations Act,
1999
AGENCY: Office of Community Planning and Development, HUD.
ACTION: Notice of waivers and modifications.
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SUMMARY: Elsewhere in today's Federal Register, HUD published a notice
governing the allocation and use of funds under the 1999 Disaster
Recovery Initiative. In implementing this Initiative, HUD is authorized
by statute to waive statutory and regulatory requirements. This notice
lists the provisions being waived and provides justifications for these
waivers.
FOR FURTHER INFORMATION CONTACT: Jan C. Opper, Senior Program Officer,
Office of Block Grant Assistance, Department of Housing and Urban
Development, Room 7286, 451 Seventh Street, S.W., 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. FAX inquiries may be sent
to Mr. Opper at (202) 401-2044. (Except for the ``800'' number, these
telephone numbers are not toll-free.)
SUPPLEMENTARY INFORMATION: The Omnibus Consolidated and Emergency
Supplemental Appropriations Act, 1999 (Public Law 105-277, 112 Stat.
2681, approved October 21, 1998)(1999 Supplemental Appropriations Act),
under division B, title IV, chapter 7, appropriates $250 million in
Community Development Block Grant (CDBG) funds to use for disaster
relief, long-term recovery, and mitigation in communities affected by
Presidentially declared natural disasters designated during fiscal year
1998 and 1999.
With respect to these supplemental funds, the Act provides that the
Secretary of HUD:
may 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 statutory requirements related
to civil rights, fair housing and nondiscrimination, the
environment, and labor standards, upon a finding that such waiver is
required to facilitate the use of such funds and would not be
inconsistent with the overall purpose of the statute: Provided
further, That the Secretary may waive the requirements that
activities benefit persons of low-and moderate-income, except that
at least 50 percent of the funds under this head must benefit
primarily persons of low-and moderate-income unless the Secretary
makes a finding of compelling need. Provided further, That, upon a
finding of compelling need, the Secretary must provide an
explanation of the finding to the Committees on Appropriations.
In conjunction with these statutory provisions and pursuant to 24
CFR 5.110, the Department has determined that it has good cause to
waive certain regulatory provisions governing the use of Disaster
Recovery Initiative funds. Therefore, to facilitate the use of the
Disaster Recovery Initiative funds appropriated under division B, title
IV, chapter 7 of the 1999 Supplemental Appropriations Act, the
following provisions are waived for the reasons set forth below. These
waivers apply to activities funded under the Act with Disaster Recovery
Initiative funds.
Consolidated Submissions for Community Planning and Development
Programs
Description of Requirements Waived
Citizen participation requirements at 42 U.S.C. 5304(a), 42 U.S.C.
5306(d)(5)(C), 24 CFR 91.115(c), to the extent that expedited amendment
of the State's Consolidated Plan is necessary to ensure timely delivery
of assistance, except that grantees must provide alternative procedures
for public notice of funding availability, as approved by HUD.
Justification: To provide the flexibility to expedite the
availability of disaster recovery assistance, if necessary.
The requirements at 42 U.S.C. 12705(a)(2), 42 U.S.C. 5304(a)(1), 42
U.S.C. 5304(m), and 24 CFR 91.320.
Justification: To provide the flexibility to expedite the
availability of disaster recovery assistance, if necessary. These
requirements concern the submission of an Annual Action Plan (for
States receiving annual allocations of regular CDBG funding). 42 U.S.C.
5304(m) contains the requirement for submission of a Community
Development Plan describing a grantee's priority non-housing community
development needs. Section I.G. of the Federal Register notice,
published elsewhere in today's Federal Register, implementing the
Disaster Recovery Initiative establishes streamlined, alternative
planning and submission requirements for Disaster Recovery Initiative
funding which meet the intent of the Cranston-Gonzalez National
Affordable Housing Act and the Housing and Community Development Act.
All State grantees that receive formula allocations of CDBG funding
have already met the statutory and regulatory requirements for the
five-year strategic plan in the Consolidated Plan.
Citizen participation requirements at 42 U.S.C. 5304(a)(2) and
(a)(3)(A) through (E), 24 CFR 91.110 and 91.115, and 24 CFR 570.486(a).
Justification: To provide the flexibility to expedite the
availability of disaster recovery assistance, if necessary. Section
I.G. of the Federal Register notice implementing the Disaster Recovery
Initiative establishes streamlined, alternative citizen participation
requirements for Disaster Recovery Initiative funding which meet the
intent of the National Affordable Housing Act and the Housing and
Community Development Act. Such requirements provide for public notice,
appraisal, examination, and comment on the activities proposed for the
use of DRI funds, but do not specifically require public hearings.
Community Development Block Grant Program
Description of Requirements Waived
Requirements at 42 U.S.C. 5301(c), 42 U.S.C. 5304(b)(3)(A) and 24
CFR 570.484 (for States) that 70 percent of funds, over a period not to
exceed three years, are for activities that benefit low and moderate
income persons.
Justification: Grantees should give maximum feasible priority to
funding activities that benefit persons of low and moderate income.
Because the damage to community development and housing is without
regard to income, and income-producing jobs are often lost following a
disaster for a period of time, it is important to give grantees maximum
flexibility to carry out recovery activities within the confines of the
CDBG program national objectives, which are not waived. Also, with
mitigation activities such as the buyout of flood-prone properties, it
is within the community's interest and consistent with Federal disaster
and floodplain policy to reduce the risks to health and safety and to
lessen future disaster damage and related costs by buying out all
properties with areas at risk, rather than taking a patchwork approach.
Section I.C.2 of the Federal Register notice implementing the Disaster
Recovery Initiative establishes requirements for complying with the
statutory mandate that each grantee's program principally (at least
50%) benefit low- and moderate-income persons.
[[Page 72873]]
Requirements at 42 U.S.C. 5305(a) and 24 CFR 570.482(a) through
(d), concerning activities eligible for funding under the Disaster
Recovery Initiative.
Justification: To give maximum flexibility to grantees in
addressing the wide variety of needs resulting from natural disasters,
the Department has established alternative requirements for eligible
activities at section I.H. of the Federal Register notice implementing
the Disaster Recovery Initiative. These requirements will ensure
compliance with the eligibility requirements of the Act and will ensure
accountability in the use of funds.
The 50 percent of downpayment limitation on direct homeownership
assistance for low or moderate income homebuyers at 42 U.S.C.
5305(a)(24)(D).
Justification: Required to provide additional assistance to low/
moderate income disaster victims in instances in which direct
homeownership assistance with 50 percent of a downpayment is
insufficient.
Provisions of 42 U.S.C. Chapter 69--Community Development and 24
CFR part 570 that would prohibit States electing to receive CDBG funds
from distributing such funds to units of general local government in
entitlement communities and to Indian tribes, including 42 U.S.C.
5306(d)(1) and (2)(A) and 24 CFR 570.480(a), to the extent that such
provisions limit the distribution of funds to units of general local
government located in nonentitlement areas and to Indian tribes.
Justification: This provides the State the flexibility necessary to
meet a wide range of recovery needs in any areas of the State,
including those in entitlement communities and on Indian reservations,
that have been affected by the disaster.
Requirements at 24 CFR 570.480(a), 570.481(a) and 570.486(b).
Justification: These provisions describe requirements which are
specific to States' administration of CDBG funding for non-entitlement
areas. 24 CFR 570.480(a) indicates that other subparts of Part 570 are
generally not applicable to the State CDBG program; 24 CFR 570.481(a)
indicates that HUD will defer to States' interpretations of the
definitions of terms contained in 42 U.S.C. 5300 et seq.; 24 CFR
570.486(b) governs activities serving beneficiaries outside the
jurisdiction of the unit of general local government. The Act permits
HUD to specify alternative requirements for purposes of the Disaster
Recovery Initiative. Where possible, the Federal Register notice
implementing the Disaster Recovery Initiative retains the
administrative flexibility provided to States in the State CDBG
program.
Requirements of 42 U.S.C. 5306(d)(3)(A) and 24 CFR 570.489(a)(1)
concerning the use of Disaster Recovery Initiative funds for State
administrative costs, including matching funds requirements.
Justification: Waiving these provisions would prevent undue
hardship on States and would further the purposes of disaster recovery,
by eliminating the requirement that Disaster Recovery Initiative funds
spent on State administrative costs be matched with State funding.
Paragraph I.H.8.b. of the Federal Register notice implementing the
Disaster Recovery Initiative establishes alternative requirements for
States' use of funds for costs incurred in administering this funding.
The provisions at 42 U.S.C. 5304(j) and 24 CFR 570.489(e), for the
State CDBG program, that require States to allow units of local
government to retain program income. All program income will be
returned to the State and will become program income for the year in
which the State redistributes those funds.
Justification: Waiver of this provision will also allow States to
quickly utilize all program income for other eligible activities,
except that for States not participating in the CDBG program, program
income received by a State after closeout of its grant shall not be
subject to any Federal requirement.
Requirements of 42 U.S.C. 5306(d)(2)(C)(iii) concerning
restrictions on a State's ability to limit activities eligible for
funding.
Justification: Waiving these requirements will increase State
grantees' flexibility in prioritizing and responding to disaster
recovery needs.
Acquisition and Relocation Requirements For CDBG Disaster
Supplemental Funds
Description of Requirements Waived
One-for-one replacement requirements at 42 U.S.C. 5304(d)(2) and 24
CFR 570.488, 570.606(c) and 42.375(a), for low and moderate income
dwelling units (1) damaged by the disaster, (2) for which CDBG funds
are used for demolition, and (3) which are not suitable for
rehabilitation.
Justification: These requirements provide that all occupied and
vacant occupiable low/moderate income dwelling units that are
demolished or converted to a use other than as low/moderate income
dwelling units in connection with a CDBG activity must be replaced with
low/moderate income dwelling units.
These requirements are waived provided the grantee assures HUD it
will use all resources at its disposal, including DRI funds authorized
to be used for a program of optional relocation assistance under 42
U.S.C. 505(a)(11), to ensure no displaced homeowner will be denied
access to decent, safe and sanitary suitable replacement housing
because he or she has not received sufficient financial assistance.
Not waiving this provision would discourage grantees from
demolition and clearance of dwelling units that would otherwise be
appropriate for CDBG assistance. Such inaction would inhibit recovery
efforts and add to health and safety problems.
Relocation requirements at 42 U.S.C. 5304(d)(2)(iii) and (iv) and
24 CFR 570.606(c) and 42.350(e), to permit a grantee to meet all or
part of its obligation to provide relocation benefits to displaced
persons under sections 204 and 205 of the Uniform Relocation Assistance
and Real Property Acquisition Policies Act of 1970, as amended (42
U.S.C. 4601 et seq) (URA).
Justification: The statutory requirements of the URA are also
applicable to the administration of FEMA assistance, and disparities in
rental assistance payments for activities funded by HUD and that agency
will thus be eliminated.
FEMA is subject to the requirements of the URA. Pursuant to this
authority, FEMA requires that rental assistance payments be calculated
on the basis of the amount necessary to lease or rent comparable
housing for a period of 42 months. HUD is also subject to these
requirements, but is also covered by alternative relocation provisions
authorized under 42 U.S.C. 5304(d)(2)(iii) and (iv) and implementing
regulations at 24 CFR 570.606(c)(2). These alternative relocation
benefits, available to low-and moderate-income displacees opting to
receive them in certain HUD programs, require the calculation of
similar rental assistance payments on the basis of 60 months, rather
than 42 months, thereby creating a disparity between the available
benefits offered by HUD and FEMA, respectively. The waiver assures
uniform and equitable treatment for all such tenants under the URA, as
qualified by this waiver.
Requirements at 49 CFR 24.2, 24.402(b)(2) and 24.404, to the extent
that they require grantees to provide URA financial assistance
sufficient to reduce the displaced person's post-displacement rent/
utility cost to 30 percent of household income.
[[Page 72874]]
Justification: The failure to suspend these requirements would
impede disaster recovery. To the extent that a tenant has been paying
rents in excess of 30 percent of household income without demonstrable
hardship, rental assistance payments to reduce tenant costs to 30
percent would not be required.
Requirements of Sections 204 and 205 of the URA, and 49 CFR Part
24, to the extent necessary to permit a grantee to meet all or a
portion of a grantee's replacement housing financial assistance
obligation to a displaced renter who elects to relocate to rental
housing through a tenant-based rental assistance (TBRA) housing program
subsidy (e.g., Section 8 rental voucher or certificate) provided that
the renter is also provided referrals to suitable, available rental
replacement dwellings where the owner is willing to participate in the
TBRA program, and the period of authorized assistance is at least 42
months.
Justification: Failure to grant the waiver would impede disaster
recovery whenever TBRA program subsidies are available but funds for
cash relocation assistance are limited. The change conforms URA policy
with Section 104(d) relocation assistance.
Requirements of Section 202(b) of the URA and 49 CFR 24.302, to the
extent that they require a grantee to offer a person displaced from a
dwelling unit the option to receive a ``moving expense and dislocation
allowance'' based on the current schedule of allowances prepared by the
Federal Highway Administration, provided that the grantee establishes
and offers the person a moving expense and dislocation allowance under
a schedule of allowances that is reasonable for the jurisdiction and
takes into account the number of rooms in the displacement dwelling,
whether the person owns and must move the furniture, and, at a minimum,
the kinds of expenses described in 49 CFR 24.301.
Justification: Failure to suspend this provision would impede
disaster recovery by requiring grantees to offer allowances that do not
reflect local labor and transportation costs. Persons displaced from a
dwelling remain entitled to choose a payment for actual reasonable
moving and related expenses if they find that approach preferable to
the locally established moving expense and dislocation allowance.
Requirements of Section 414 of the Stafford Disaster Relief and
Emergency Assistance Act (42 U.S.C. 5181) so that Uniform Relocation
Act provisions do not apply when a homeowner displaced by the disaster
is assisted.
Justification: Section 414 States: ``Notwithstanding any other
provision of law, no person otherwise eligible for any kind of
replacement housing payment under the Uniform Relocation Assistance and
Real Property Acquisition Policies Act of 1970 (P.L. 91-646) shall be
denied such eligibility as a result of his being unable, because of a
major disaster as determined by the President, to meet the occupancy
requirements set by such Act.''
Failure to waive section 414 would impede disaster recovery,
discouraging grantees from the acquisition, demolition or
rehabilitation of disaster-damaged housing because of excessive costs
that would result from replacement housing payments made to former
homeowners displaced by the disaster. Homeowners actually displaced by
a HUD-assisted disaster recovery project will continue to receive URA
assistance. Homeowners displaced by the disaster may apply for
assistance under available disaster recovery programs.
Other Applicable Requirements
Requirements of 12 U.S.C. 1701u, 24 CFR 570.607(b) and 24 CFR part
135, concerning the requirements of Section 3 of the Housing and Urban
Development Act of 1968.
Justification: Waiving these requirements will increase grantees'
flexibility in responding to disaster recovery needs and will increase
the efficiency with which activities may be implemented to meet those
needs. However, in the Federal Register notice implementing the
Disaster Recovery Initiative funding, HUD encourages grantees to give
priority to the hiring of local low-and moderate-income persons and
contractors in carrying out its activities.
Requirements of 24 CFR 570.612 and 24 CFR part 52, concerning
applicability of Executive Order 12372 regarding intergovernmental
consultation and review of activities proposed for Federal funding.
Justification: Waiving these requirements will increase grantees'
flexibility in responding to disaster recovery needs and will increase
the efficiency with which activities may be implemented to meet those
needs.
Additionally, section 107(e)(2) of the Housing and Community
Development Act of 1974, as amended (42 U.S.C. 5307(e)(2)) authorizes
HUD to waive the provisions of section 109 and 110 in connection with
grants to Indian tribes. HUD is exercising this authority to now waive
labor standards requirements of section 110 (42 U.S.C. 5310) as they
would otherwise apply to Indian tribes.
Justification: Waiving the cited labor standards requirements for
the use of Disaster Recovery Initiative grants to Indian tribes
conforms with Departmental policy for the Indian Community Development
Block Grant program.
Finding of No Significant Impact
A Finding of No Significant Impact 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 Finding of No Significant Impact is
available for public inspection between 7:30 a.m. and 5:30 p.m.
weekdays in the Office of the Rules Docket Clerk, Office of General
Counsel, Department of Housing and Urban Development, Room 10276, 451
Seventh Street, SW, Washington, DC 20410.
Dated: December 21, 1999.
Joseph D'Agosta,
General Deputy Assistant Secretary for Community Planning and
Development.
[FR Doc. 99-33674 Filed 12-27-99; 8:45 am]
BILLING CODE 4210-29-P
