Notice2024-15055
Waivers and Alternative Requirements for Community Development Block Grant Disaster Recovery (CDBG-DR) and Community Development Block Grant Mitigation (CDBG-MIT) Grantees
Primary source
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Published
July 9, 2024
Issuing agencies
Housing and Urban Development Department
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. Specifically, this notice includes waivers and alternative requirements for the States of North Carolina and Alaska in response to their submitted requests for waivers and alternative requirements for grants provided under the public laws cited in this notice. As further outlined below, this notice provides a waiver and alternative requirement to the State of North Carolina to align buyout requirements across the State's various CDBG-DR and CDBG- MIT grants and a waiver and alternative requirement to the State of Alaska to increase the limit on planning costs for the State's CDBG-MIT funds. The Department has waived and established similar alternative requirements for other grantees in the past, so the waivers and alternative requirements described in this notice are not unique or precedent setting.
Full Text
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<title>Federal Register, Volume 89 Issue 131 (Tuesday, July 9, 2024)</title>
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[Federal Register Volume 89, Number 131 (Tuesday, July 9, 2024)]
[Notices]
[Pages 56400-56403]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-15055]
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-6467-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. Specifically, this notice includes waivers
and alternative requirements for the States of North Carolina and
Alaska in response to their submitted requests for waivers and
alternative requirements for grants provided under the public laws
cited in this notice. As further outlined below, this notice provides a
waiver and alternative requirement to the State of North Carolina to
align buyout requirements across the State's various CDBG-DR and CDBG-
MIT grants and a waiver and alternative requirement to the State of
Alaska to increase the limit on planning costs for the State's CDBG-MIT
funds. The Department has waived and established similar alternative
requirements for other grantees in the past, so the waivers and
alternative requirements described in this notice are not unique or
precedent setting.
DATES: Applicability Date: July 15, 2024.
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#8befe2f8eaf8ffeef9d4f9eee8e4fdeef9f2cbe3feefa5ece4fd"><span class="__cf_email__" data-cfemail="a9cdc0dac8daddccdbf6dbcccac6dfccdbd0e9c1dccd87cec6df">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Authority To Grant Waivers
II. Public Law 114-254, 115-31, 115-123,
[[Page 56401]]
115-254, and 116-20 Waivers and Alternative Requirements
III. Public Law 116-20 Waiver and Alternative Requirement
IV. Finding of No Significant Impact (FONSI)
I. Authority To Grant Waivers
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.
All waivers and alternative requirements authorized in this notice
are based upon a determination by the 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). The good cause
for each waiver and alternative requirement is summarized in this
notice.
II. Public Law 114-254, 115-31, 115-123, 115-254, and 116-20 Waivers
and Alternative Requirements
Waiver and Alternative Requirement for North Carolina's CDBG-DR and
CDBG-MIT Buyout Programs (State of North Carolina only).
The Department received a request and justification of good cause
from the State of North Carolina to waive the requirement that only
real property is eligible for acquisition in buyout activities, which
limits the acquisition of manufactured, modular, or mobile housing
units (MHUs). Given that the Department has already updated this
provision for newer grants, allowing this waiver for North Carolina's
older grants would merely align requirements across their grant
portfolio. These newer, more flexible requirements published in the
Federal Register on January 18, 2023 (88 FR 3212) and May 24, 2022 (87
FR 31648) as Appendix B (``the Consolidated Notice'') allow CDBG-DR
funds to be used to acquire homes that are MHUs, regardless of whether
MHUs are considered real property under state law, as part of the
acquisition of an MHU's underlying real property in a buyout activity.
This waiver and alternative requirement, as further described
below, applies to the State's CDBG-DR and CDBG-MIT funds allocated to
the State under Public Law 114-254, 115-31, 115-123, 115-254, and 116-
20. These CDBG-DR and CDBG-MIT funds are subject to the requirements in
the Federal Register notices published on January 18, 2017 (82 FR
5591), November 21, 2016 (81 FR 83254) (the ``November 2016 Notice''),
August 7, 2017 (82 FR 36812), January 27, 2020 (85 FR 4681), February
9, 2018 (83 FR 5844) (the ``February 2018 Notice''), August 14, 2018
(83 FR 40314), February 19, 2019 (84 FR 4836), June 20, 2019 (84 FR
28848), August 30, 2019 (84 FR 45838) (the ``August 2019 Notice''), and
January 6, 2021 (86 FR 561) (collectively, the ``Prior Notices'').
The Prior Notices require the State to adhere to more stringent
requirements for buyout activities undertaken with CDBG-DR and CDBG-MIT
funds. Per these requirements, CDBG-DR and CDBG-MIT grantees
undertaking buyout activities are required to adhere to the housing
acquisition activity requirements at 42 U.S.C. 5305(a)(1) and the
associated regulations at 24 CFR 570.201(a), which limit housing
acquisition to real property. Further, the Prior Notices define the
term ``buyout'' as the acquisition of property located in a floodway or
floodplain that is intended to reduce risk from future flooding or the
acquisition of properties in Disaster Risk Reduction Areas (DRRA), as
designated by the grantee. Because the Prior Notices do not waive
requirements at 42 U.S.C. 5305(a)(1) and the associated regulations at
24 CFR 570.201(a), any buyout program is limited to the acquisition of
real property or property considered to be part of a community's
permanent housing stock when it includes acquisition of the underlying
real property (i.e., land). However, 42 U.S.C. 5305(a)(1) and the
associated regulations only permit the use of funds for MHUs under
HUD's regulatory oversight, including HUD's Manufactured Home
Construction and Safety Standards (``HUD Code'', 24 CFR part 3280) and
therefore, exclude MHU's only built to state and local standards.
Beginning with the application of the Consolidated Notice to CDBG-
DR funds, HUD waived the requirements at 42 U.S.C. 5305(a) to the
extent necessary for the creation of a new eligible activity termed
``buyouts.'' CDBG-DR grant funds subject to the requirements in the
Consolidated Notice may be used for buyout activities defined as the
acquisition of properties located in a floodway, floodplain, or other
DRRA that is intended to reduce risk from future hazards. This means
that CDBG-DR funds, subject to the requirements of the Consolidated
Notice, may be used to acquire MHUs, that can sometimes be treated as
personal property or do not meet the HUD Code, as part of the
acquisition of an MHU's underlying real property in a buyout activity.
The State of North Carolina has requested a waiver of the
requirement that buyouts are limited to the acquisition of real
property to allow the State to align its buyout activities with the
flexibilities provided in the Consolidated Notice. The waiver and
alternative requirement are necessary to allow the State to undertake
buyout activities for MHUs that do not qualify as real property or meet
the HUD Code to reduce the risk of future flooding to the State's
housing stock and the administrative burden of managing different
requirements for other buyout activities across its grant portfolio.
The waiver and alternative requirement provided herein will help the
State promote recovery and mitigation following Hurricanes Matthew and
Florence by expanding its buyout programs to include MHUs in a DRRA and
enable the State to move more homes and households out of harm's way.
The State's waiver request notes that it is currently implementing
its Strategic Buyout Program (SBP) with CDBG-DR and CDBG-MIT funds and
that MHUs constitute a significant portion of the housing stock in the
State, making up 25 percent of all housing stock in disaster-impacted
areas. The State's request also points out the need to include the
value of MHUs in buyout offers to equitably serve this population and
reduce the risk of future damage to the State's MHU-housing stock,
which also tends to be among the most vulnerable.
The State plans to use its CDBG-DR and CDBG-MIT funding under
Public Law 114-254, 115-31, 115-123, 115-254, and 116-20 for the
implementation of its SBP, which began accepting applications in
January 2020. The SBP is a voluntary buyout program that beneficiaries
may apply for that provides funding for the purchase of eligible
properties in a DRRA, resulting in a deed restriction that limits
future development on the acquired parcel. Applicants and properties
must meet the eligibility criteria set forth in the State's SBP Manual.
After reviewing the State's request and based on the good cause
provided herein, the Department is waiving 42 U.S.C. 5305(a)(1) and the
buyout requirements established in the Prior Notices under section
VI.B.35 of the November 2016 Notice (81 FR 83271), section VI.B.37 of
the February 2018 Notice (83 FR 5863), and section V.B.4 of the August
2019 Notice (84 FR 45864)
[[Page 56402]]
for the State of North Carolina's Public Law 114-254, 115-31, 115-123,
115-254, and 116-20 CDBG-DR and CDBG-MIT funds and establishing as an
alternative requirement the requirements in section II.B.7. (including
II.B.7.a.) of the January 18, 2023, Notice (88 FR 3212). Any buyouts of
MHUs under this alternative requirement must include acquisition of the
underlying real property.
III. Public Law 116-20 Waiver and Alternative Requirement
Waiver and Alternative Requirement on Limitation of CDBG-MIT
Planning Costs (State of Alaska only).
The Department received a request and justification of good cause
from the State of Alaska to increase the limit on planning costs from
15 to 48 percent of its CDBG-MIT grant to implement a planning activity
in the State's approved Action Plan. This request applies to the
State's CDBG-MIT funds under Public Law 116-20 announced in the Federal
Register notice published on January 6, 2021 (86 FR 561) (the ``January
2021 Notice'') for a disaster occurring in 2018. The January 2021
Notice included waivers and alternative requirements for grantees that
received a CDBG-MIT allocation under Public Law 115-123 or 116-20 and
required grantees to adhere to the relevant requirements of the Federal
Register notices published on August 30, 2019 (84 FR 45838) (the
``August 2019 Notice'') and on September 28, 2020 (85 FR 60821).
The State is requesting that the Department modify paragraph
V.A.8.b.(1) of the August 2019 Notice to accommodate its proposed
planning activity. Specifically, the State is requesting the ability to
use $1,086,800, or approximately 48 percent, of its CDBG-MIT grant
amount to upgrade the Municipality of Anchorage's local vertical datum
reference system to the National Spatial Reference System (NSRS).
However, paragraph V.A.8.b.(1) of the August 2019 Notice and Section
II.B. of the January 2021 Notice provide an alternative requirement
that limits CDBG-MIT grantees to spending a maximum of 15 percent of
their total grant amount or $750 million, whichever is less, on
planning costs.
The National Oceanic and Atmospheric Administration (NOAA) defines
and manages the NSRS through its National Geodetic Survey. The NSRS
serves as a consistent coordinate system that defines latitude,
longitude, height, scale, gravity, and orientation throughout the
United States. The NSRS includes a network of permanently marked
points; a consistent, accurate, and up-to-date national shoreline; a
network of Continuously Operating Reference Stations (CORS) which
supports three-dimensional positioning activities; and a set of
accurate models describing dynamic, geophysical processes that affect
spatial measurements.
The Municipality of Anchorage's existing network of vertical datum
monuments (benchmarks) is not tied to the NSRS, references a superseded
local mean sea level, has minimal compatibility with modern survey
techniques that rely heavily on the use of GPS equipment, and is
generally outdated and in poor condition. For the Municipality to adopt
the NSRS datum, additional funding is needed to create an inventory of
existing benchmarks, identify existing benchmarks that may be used in
conjunction with the NSRS, establish new benchmarks in areas where few
monuments exist, and conduct a project to establish NSRS positions on
new and existing benchmarks referencing the Municipality of Anchorage
datum. The State's planning activity will verify and update the GPS
coordinates of all benchmarks within the Municipality of Anchorage,
which is a National Geodetic Survey requirement for communities to
participate in the modernized NSRS.
After consulting with the Municipality of Anchorage, the Office of
Emergency Management, the Office of Economic and Community Development
(MOA/OECD), and other Federal partners, and reviewing its Mitigation
Needs Assessment, the State determined it is critical to allocate funds
to upgrade the local vertical datum reference system to the NSRS in
order to support FEMA in remapping the Municipality's Special Flood
Hazard Areas (SFHAs). Local and State Hazard Mitigation Plans identify
flood risk as one of the most urgent potential hazards in the
Municipality. However, existing flood hazard maps are inaccurate, which
limits the Municipality's ability to mitigate risk through land-use
planning, infrastructure, building codes, and other measures. Flood
hazard and other spatial mapping currently rely on the local vertical
datum reference system, which the November 30, 2018, earthquake made
more inaccurate. Upgrading the local vertical datum reference system to
the NSRS will enable coordination with FEMA to update the
Municipality's SFHAs to accurately convey flood risks within the
community, making it a strategic and high-impact project to mitigate
disaster risks and reduce future losses.
Further, FEMA has adopted the NSRS as the official datum of the
National Flood Insurance Program and is moving to transition all Flood
Insurance Studies and Flood Insurance Rate Maps (FIRMs) to the NSRS.
The Municipality's adoption of the NSRS will conform to FEMA standards,
increase the alignment of federally funded geospatial data sets with
local projects, enable the use of GPS technology in local surveying,
and provide specifications for not only updating flood maps, but also
tsunami warning systems and other disaster resources.
To reduce the risks and prioritize the protection of low- and
moderate-income (LMI) persons, the State of Alaska also verified that
at least 50 percent of its CDBG-MIT award will continue to be used
exclusively for activities that benefit LMI persons through its Tsunami
Alert System and Home Flood Mitigation Program.
The August 2019 Notice and the January 2021 Notice waive section
106(d) of the HCDA (42 U.S.C. 5306(d)) and 24 CFR 570.489(a)(1)(i) and
(iii) and create an alternative requirement that limits CDBG-MIT
grantees to spending a maximum of 15 percent of their total grant
amount or $750 million, whichever is less, on planning costs.
Based on the reasons stated above, HUD has determined that good
cause exists to modify the alternative requirement in paragraph
V.A.8.b.(1) of the August 2019 Notice and the third paragraph of
Section II.B. of the January 2021 Notice to the extent necessary to
permit eligible planning expenses up to 48 percent of the State's CDBG-
MIT grant amount. Additionally, to ensure that the State prioritizes
activities benefitting LMI persons as described in its approved CDBG-
MIT Action Plan, the Department will continue to require that at least
50 percent of the State's CDBG-MIT funds be expended on programs and
projects that will benefit LMI persons.
As a reminder, the State must continue to limit its administrative
costs for the CDBG-MIT grant to 5 percent of its total grant award and
5 percent of program income generated by the grant, as provided in
Public Law 116-20, the August 2019 Notice, and the January 2021 Notice.
IV. 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 online on HUD's CDBG-DR website at https://www.hud.gov/
program_offices/
[[Page 56403]]
comm_planning/cdbg-dr and for public inspection between 8 a.m. and 5
p.m. weekdays in the Regulations Division, Office of General Counsel,
Department of Housing and Urban Development, 451 7th Street SW, Room
10276, Washington, DC 20410-0500. Due to security measures at the HUD
Headquarters building, an advance appointment to review the docket file
must be scheduled by calling the Regulations Division at 202-708-3055
(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>.
Marion M. McFadden,
Principal Deputy Assistant Secretary for Community Planning and
Development.
[FR Doc. 2024-15055 Filed 7-8-24; 8:45 am]
BILLING CODE 4210-67-P
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