Notice of Waivers and Alternative Requirements for the Pilot Recovery Housing Program

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Published

July 21, 2021

Issuing agencies

Housing and Urban Development Department

Abstract

This Updated Program Notice describes the program rules, waivers, and alternative requirements that apply to any and all appropriations authorized under Section 8071 of the SUPPORT for Patients and Communities Act ("SUPPORT Act"), entitled Pilot Program to Help Individuals in Recovery From a Substance Use Disorder Become Stably Housed, herein referred to as the Recovery Housing Program, or RHP. This pilot program authorizes assistance to grantees (states and the District of Columbia) to provide stable, temporary housing to individuals in recovery from a substance use disorder. The assistance is limited, per individual, to a period of not more than two years or until the individual secures permanent housing, whichever is earlier. This notice also extends the deadline for submission of fiscal year (FY) 2020 RHP Action Plans provided in HUD's November 25, 2020, notice entitled, "Notice of FY 2020 Allocations, Waivers, and Alternative Requirements for the Pilot Recovery Housing Program" ("Program Notice") and provides instructions for submitting RHP Action Plans for FYs 2020 and 2021.

Full Text

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<title>Federal Register, Volume 86 Issue 137 (Wednesday, July 21, 2021)</title>
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[Federal Register Volume 86, Number 137 (Wednesday, July 21, 2021)]
[Notices]
[Pages 38496-38498]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-15515]

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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-6265-N-01]

Notice of Waivers and Alternative Requirements for the Pilot
Recovery Housing Program

AGENCY: Office of Community Planning and Development, HUD.

ACTION: Notice.

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SUMMARY: This Updated Program Notice describes the program rules,
waivers, and alternative requirements that apply to any and all
appropriations authorized under Section 8071 of the SUPPORT for
Patients and Communities Act (``SUPPORT Act''), entitled Pilot Program
to Help Individuals in Recovery From a Substance Use Disorder Become
Stably Housed, herein referred to as the Recovery Housing Program, or
RHP. This pilot program authorizes assistance to grantees (states and
the District of Columbia) to provide stable, temporary housing to
individuals in recovery from a substance use disorder. The assistance
is limited, per individual, to a period of not more than two years or
until the individual secures permanent housing, whichever is earlier.
This notice also extends the deadline for submission of fiscal year
(FY) 2020 RHP Action Plans provided in HUD's November 25, 2020, notice
entitled, ``Notice of FY 2020 Allocations, Waivers, and Alternative
Requirements for the Pilot Recovery Housing Program'' (``Program
Notice'') and provides instructions for submitting RHP Action Plans for
FYs 2020 and 2021.

DATES: Applicable Date: July 13, 2021.

FOR FURTHER INFORMATION CONTACT: Jessie Handforth Kome, Director,
Office of Block Grant Assistance, Community Planning and Development,
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). Persons with hearing or speech impairments may
access this number via TTY by calling the Federal Relay Service at 800-
877-8339 (this is a toll-free number). Facsimile inquiries may be sent
to Ms. Kome at 202-708-0033 (this is not a toll-free number). Email
inquiries may be sent to <a href="/cdn-cgi/l/email-protection#de8cbbbdb1a8bbaca796b1abadb7b0b99eb6abbaf0b9b1a8"><span class="__cf_email__" data-cfemail="d183b4b2bea7b4a3a899bea4a2b8bfb691b9a4b5ffb6bea7">[email&#160;protected]</span></a>.

SUPPLEMENTARY INFORMATION:

I. Background

A. Authorization and Appropriations

Section 8071 of the SUPPORT for Patients and Communities Act (Pub.
L. 115-271, approved Oct. 24, 2018) (``SUPPORT Act'') authorizes the
appropriation of funds, as may be necessary, for each fiscal year of
2019 to 2023 for assistance to states to provide stable, temporary
housing to individuals in recovery from a substance use disorder. The
SUPPORT Act requires amounts appropriated or amounts otherwise made
available to grantees for RHP be treated as though such funds are CDBG
funds under title I of the Housing and Community Development Act of
1974 (42 U.S.C. 5302) (``HCD Act'') and authorizes the Secretary of HUD
to waive or specify alternative requirements to any provision of title
I of the HCD Act necessary to facilitate or expedite the use of RHP
funds, except for requirements related to fair housing,
nondiscrimination, labor standards, the environment, and requirements
that activities benefit persons of low- and moderate-income.
The SUPPORT Act authorized HUD to establish a funding formula based
on specific factors listed in section 8071 of the SUPPORT Act and to
allocate funds appropriated or otherwise made available for RHP
according to the established funding formula. HUD published the funding
formula in the Federal Register on April 17, 2019 (84 FR 16027) (the
``Formula Notice''). In accordance with the SUPPORT Act, HUD
distributes amounts appropriated for RHP according to the Formula
Notice unless the appropriation act directs HUD to do otherwise.
Following an appropriation of funds, HUD determines the RHP grantees
and publishes their allocation amounts online at <a href="https://www.hud.gov/program_offices/comm_planning/budget">https://www.hud.gov/program_offices/comm_planning/budget</a> in accordance with the Formula
Notice and requirements of the appropriation. Congress appropriated
$25,000,000 for RHP in fiscal year (FY) 2020 and $25,000,000 for RHP in
FY 2021. HUD allocated the RHP funds to 25 grantees in FY 20 and 27
grantees in FY 21.

B. Notice of Program Rules, Waivers, and Alternative Requirements

HUD published the ``Notice of FY2020 Allocations, Waivers, and
Alternative Requirements for the Pilot Recovery Housing Program'' (85
FR 75361) (the ``Program Notice'') on its website on November 4, 2020,
and in the Federal Register on November 25, 2020. The Program Notice
imposed the rules, waivers, and alternative requirements and provided
specific program deadlines that apply for fiscal year 2020 (FY 20). The
Program Notice describes requirements on the use of RHP funds and the
applicable waivers

[[Page 38497]]

and alternative requirements to title I of the HCD Act and 24 CFR part
570 necessary to expedite or facilitate the use of RHP funds. This
Updated Program Notice imposes the Program Notice's rules, waivers and
alternative requirements, as amended by this Updated Program Notice, on
the use of all existing and future RHP allocations and revises the FY
20 RHP Action Plan submission deadline. Grantees must comply with the
applicable requirements at 2 CFR part 200, as amended. Amendments to 2
CFR part 200 may renumber some subparts and regulations. Where RHP
notices (with applicability dates preceding the amendments' effective
dates) refer to specific regulations of 2 CFR part 200 that are
renumbered or revised by amendments to 2 CFR part 200, the requirements
that apply to the grant are the requirements in 2 CFR part 200, as
amended, notwithstanding the renumbered regulatory reference.

II. Applicable Rules, Waivers, and Alternative Requirements

This Updated Program Notice is based on the applicable waivers and
alternative requirements to the CDBG program requirements included in
the November 25, 2020, Program Notice. The Secretary has determined
that those statutory and regulatory waivers and alternative
requirements will apply to this Updated Program Notice because they are
necessary to expedite or facilitate the use of RHP funds. The waivers
and alternative requirements are only applicable to the use of RHP
funds and do not apply to CDBG funds used in conjunction with RHP funds
or other sources of CDBG funds (i.e., from other grants or guaranteed
loan funds) used for RHP-eligible activities.
All RHP allocations are subject to the requirements in the Program
Notice, as amended by this Updated Program Notice and any subsequent
notices (collectively, the ``RHP notices''). The applicable rules,
statutory and regulatory waivers, and alternative requirements
described in the RHP notices apply to fiscal year allocations as of the
applicability date of each RHP notice. Grantees may use funds from
different FY allocations for the same RHP-eligible activity, however,
grantees should be aware that each allocation has a distinct period of
performance and distinct limitations on administrative and technical
assistance costs.

A. Submission Deadlines

Section I.B. of the Program Notice requires RHP Grantees to submit
a RHP Action Plan for FY 20 allocations, including the Form SF-424,
application for federal funds, by August 16, 2021. This Updated Program
Notice amends section I.B. and extends the submission deadline for RHP
Action Plans for FY 20 allocations to December 31, 2021. Grantees with
FY 21 allocations must submit a RHP Action Plan or amendment for FY 21
funds by August 16, 2022, according to the requirements in the Program
Notice, as amended by section II.B. of this Updated Program Notice.
Grantees will have a single, combined RHP Action Plan for the use
of RHP funds, including any and all allocations from existing and
future appropriations authorized under the SUPPORT Act. For future
allocations, grantees must submit a RHP Action Plan or amendment,
including a Form SF-424, application for federal funds, for the
allocated funds by August 16 of the fiscal year following the fiscal
year in which the funds were authorized. For example, a grantee with an
allocation in fiscal year 2022 must submit a RHP Action Plan or RHP
Action Plan amendment, as well as any required submissions, by August
16, 2023.
A grantee's RHP Action Plan must meet the specific requirements in
the Program Notice, as amended by this Updated Program Notice. If a
grantee receiving an allocation fails to submit a RHP Action Plan for
its allocation by the deadline(s) provided in this Updated Program
Notice or submits a RHP Action Plan for less than the total allocation
amount, HUD may simultaneously notify the grantee of the reduction in
its allocation amount and reallocate those funds in accordance with the
SUPPORT Act's requirements.

B. Overview of Grant Process and Modified RHP Action Plan Requirements

The following sections describe the RHP Action Plan requirements
and process that RHP grantees must complete to access RHP grant funds.
These requirements and processes amend those provided in section II.H.
of the Program Notice. Grantees that receive a RHP allocation must
submit a RHP Action Plan according to the requirements in the Program
Notice, as amended by this Updated Program Notice and described below.
A grantee will have a single RHP Action Plan that describes the
use(s) of RHP funds for all of its allocations. While each fiscal year
allocation will be a separate grant with separate grant numbers and
agreements, this combined administrative approach of a single RHP
Action Plan is intended to expedite and facilitate the use of RHP funds
by grantees while reducing administrative burden. (Note: RHP Action
Plan submissions or substantial amendments for less than the amount of
the allocation amount may result in allocation amount reductions. For
example, a grantee's submission for its FY 20 allocation must have
activity budgets that amount to its FY 20 funds.)
i. Initial RHP Action Plan Submission: A grantee must submit an
initial RHP Action Plan pursuant to the requirements in section II.H.
of the Program Notice, not later than August 16 of the fiscal year
following the fiscal year in which the funds were allocated. (Note: RHP
Action Plans for FY 20 allocations have an extended deadline of
December 31, 2021, as provided by section II.A. of this Updated Program
Notice.) For example, a grantee must submit a RHP Action Plan for its
FY 21 allocation not later than August 16, 2022. All requirements of
section II.H. of the Program Notice related to Action Plan
requirements, as amended by this Updated Program Notice, apply to all
initial RHP Action Plans, and RHP Action Plans must be submitted to HUD
via the Disaster Recovery Grants Reporting (DRGR) system. As a
reminder, the citizen participation plan (CPP) may be amended in
accordance with 24 CFR 91.105(a)(3) and 91.115(a)(3) concurrently to
address RHP funds, and to allow no less than 15 calendar days of public
comment and encourage participation by organizations interested in
residential recovery programs for individuals with substance use
disorders.
A grantee may submit an initial RHP Action Plan for multiple
allocations. A grantee that submits an initial RHP Action Plan for
multiple allocations must submit its RHP Action Plan no later than the
deadline for the earliest fiscal year allocation. For example, the
deadline for an initial RHP Action Plan that includes both FY 20 and FY
21 allocations is December 31, 2021 (the submission deadline for FY 20
allocations). If submitting a RHP action plan for multiple allocations,
the grantee must set up project and activity budgets in the DRGR system
for the total of the allocations and submit the RHP Action Plan via the
DRGR system in accordance with the requirements in the Program Notice,
as amended by this Updated Program Notice.
ii. Substantial Amendment Process for Additional Allocation(s): A
grantee with a HUD-approved Action Plan for any RHP allocation(s) must
submit a substantial amendment to its RHP Action Plan to incorporate
any subsequent allocation(s). For example, a grantee that has a HUD-
approved RHP Action Plan for its FY 20 allocation

[[Page 38498]]

must submit a substantial amendment to incorporate its FY 21 allocation
or any future allocations. The grantee must submit the substantial
amendment via the DRGR system by the deadline in section II.A. of this
Updated Program Notice. In the DRGR system, grantees must ensure any
subsequent allocation(s) are fully budgeted in the amendment to the RHP
Action Plan prior to submission to HUD. The process for the substantial
amendment to the RHP Action Plan for a subsequent allocation is as
follows:
1. The grantee amends its RHP Action Plan to incorporate each
substantial amendment. The substantial amendment shall include the HUD-
approved RHP Action Plan and the modifications made to it by the
substantial amendment. A grantee's substantial amendment(s) to its RHP
Action Plan must comply with the requirements in II.H. of the Program
Notice, as amended by this Updated Program Notice, and include, at a
minimum, the use of the total amount of RHP funds, including prior and
new allocations, in the substantial amendment. The grantee may modify
existing activities or add new activities to the HUD-approved RHP
Action Plan) in a substantial amendment.
2. The grantee publishes each substantial amendment to its RHP
Action Plan in accordance with the grantee's adopted CPP. The grantee
shall provide opportunity for public comment and public hearings, if
any, on the substantial amendment and consider and summarize public
comments received, in accordance with the requirements described in
steps 2 and 3 in section II.H. of the Program Notice.
3. The grantee submits its RHP Action Plan to HUD. A complete
action plan submission includes items i through xii in section II.H. of
the Program Notice.
4. HUD will review the substantial amendment to the RHP Action Plan
in accordance with 24 CFR 91.500 and this Updated Program Notice and
the Program Notice.
5. Once HUD accepts the substantial amendment to the RHP Action
Plan for the subsequent allocation(s), HUD and the grantee will enter
into a grant agreement for each new allocation described in the
substantial amendment. HUD transmits the RHP grant agreement to the
grantee, and the grantee signs and returns the grant agreement for
HUD's signature.
6. HUD will establish the grantee's line(s) of credit to reflect
the amount of new RHP funds.
7. The grantee may draw down funds from each grant's line of
credit, consistent with the applicable draw down requirements, after
the Responsible Entity completes applicable environmental review(s)
pursuant to 24 CFR part 58 and, as applicable, receives from HUD or the
State the Authority to Use Grant Funds (AUGF) form.

C. Timeliness, Period of Performance, and Closeout

RHP funds for FY 21 and any subsequent allocations are subject to
the same requirements as those for FY 20 allocations provided in the
Program Notice, as amended by this Updated Program Notice. Each grant
is subject to its RHP expenditure deadline in accordance with the
applicable executed grant agreement. Pursuant to the grant agreement, a
grantee must expend RHP funds for each RHP grant before the end of the
grant's period of performance. All RHP funds must be expended before
the end of the period of performance on September 1 of the seventh
Federal fiscal year from the fiscal year of the appropriation, which is
29 days before the RHP appropriation account is cancelled in accordance
with 31 U.S.C. 1552(a), 24 CFR 570.200(k), and 24 CFR 570.480(h). For
example, if Congress appropriates funds under Section 8071 of the
SUPPORT Act for fiscal year 2022, all FY 22 funds must be expended
before the end of the period of performance on September 1, 2029. Grant
funds are not available for obligation and expenditure after the period
of performance.
HUD, via the DRGR system, will block remaining RHP funds after the
grant expenditure deadline to prevent grantees from drawing down funds
past the grant's period of performance. The grantee will be able to
continue drawing down funds from its line(s) of credit for grants still
within their period of performance until the expenditure deadline for
each such grant has been reached.
Additionally, section 8071(c)(1) of the SUPPORT Act requires
grantees to ``expend at least 30 percent of such funds within one year
of the date funds become available to the grantee for obligation.'' The
date of HUD's execution of the grant agreement is used for this
purpose. Pursuant to 24 CFR 570.496(b) (states) and 570.910(b)(5)
(District of Columbia), any amount of funds that exceeds 70% of a grant
allocation not expended by such date is subject to cancellation.
Pursuant to section II.P. of the Program Notice, HUD will close out
RHP grants in accordance with the 24 CFR 570.489(o), which imposes the
closeout requirements of 2 CFR part 200. HUD notes that those closeout
requirements are now located at 2 CFR 200.344.

III. Findings and Certifications

Paperwork Reduction Act

The information collection requirements in this Updated Program
Notice have been approved by the Office of Management and Budget (OMB)
under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520) and
assigned OMB Control Number 2506-0165. In accordance with the Paperwork
Reduction Act, HUD may not conduct or sponsor, and a person is not
required to respond to, a collection of information unless the
collection displays a currently valid OMB control number.

Catalog of Federal Domestic Assistance

The Catalog of Federal Domestic Assistance numbers for RHP grants
under the SUPPORT Act are 14.218 (Community Development Block Grants/
Entitlement Grants), 14.225 (Community Development Block Grants/Special
Purpose Grants/Insular Areas, and 14.228 (Community Development Block
Grants/State's Program and Non-Entitlement Grants in Hawaii) (formerly
CDBG Grant/Small Cities Program).

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 inspection at HUD's Funding Opportunities web page.

Principal Deputy Assistant Secretary for Community Planning and
Development, James Arthur Jemison II, having reviewed and approved
this document, is delegating the authority to electronically sign
this document to submitter, Aaron Santa Anna, who is the Federal
Register Liaison for HUD, for purposes of publication in the Federal
Register.

Aaron Santa Anna,
Federal Register Liaison, Department of Housing and Urban Development.
[FR Doc. 2021-15515 Filed 7-20-21; 8:45 am]
BILLING CODE 4210-67-P

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