Waivers and Alternative Requirements for Community Development Block Grant Disaster Recovery (CDBG-DR) and Community Development Block Grant Mitigation (CDBG-MIT) Grantees
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Abstract
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.
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<title>Federal Register, Volume 88 Issue 133 (Thursday, July 13, 2023)</title>
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[Federal Register Volume 88, Number 133 (Thursday, July 13, 2023)]
[Notices]
[Pages 44816-44817]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[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: <a href="https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs">https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs</a>. Email inquiries may be sent to
<a href="/cdn-cgi/l/email-protection#492d203a283a3d2c3b163b2c2a263f2c3b3009213c2d672e263f"><span class="__cf_email__" data-cfemail="42262b3123313627301d3027212d3427303b022a37266c252d34">[email protected]</span></a>.
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]
BILLING CODE 4210-67-P
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