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Notice2025-08908

Allocations for Community Development Block Grant Disaster Recovery and Implementation of the CDBG-DR Consolidated Waivers and Alternative Requirements Notice (PLUS-UP)

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Published

May 19, 2025

Issuing agencies

Housing and Urban Development Department

Abstract

On November 27, 2023, HUD announced approximately $142 million in Community Development Block Grant Disaster Recovery (CDBG-DR) funds appropriated by the Disaster Relief Supplemental Appropriations Act, 2023 for major disasters occurring in 2022 and January of 2023 in a Federal Register notice. This Allocation Announcement Notice announces an additional $102,414,000 in CDBG-DR funds appropriated by the Disaster Relief Supplemental Appropriations Act, 2025 for major disasters occurring in January 2023 only. This Allocation Announcement Notice identifies grant requirements for these funds.

Full Text

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<title>Federal Register, Volume 90 Issue 95 (Monday, May 19, 2025)</title>
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[Federal Register Volume 90, Number 95 (Monday, May 19, 2025)]
[Notices]
[Pages 21328-21332]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-08908]

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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-6511-N-01]

Allocations for Community Development Block Grant Disaster
Recovery and Implementation of the CDBG-DR Consolidated Waivers and
Alternative Requirements Notice (PLUS-UP)

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

ACTION: Notice.

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SUMMARY: On November 27, 2023, HUD announced approximately $142 million
in Community Development Block Grant Disaster Recovery (CDBG-DR) funds
appropriated by the Disaster Relief Supplemental Appropriations Act,
2023 for major disasters occurring in 2022 and January of 2023 in a
Federal Register notice. This Allocation Announcement Notice announces
an additional $102,414,000 in CDBG-DR funds appropriated by the
Disaster Relief Supplemental Appropriations Act, 2025 for major
disasters occurring in January 2023 only. This Allocation Announcement
Notice identifies grant requirements for these funds.

DATES: Applicability Date: May 27, 2025.

FOR FURTHER INFORMATION CONTACT: Tennille Smith Parker, Director,
Office of Disaster Recovery, 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>. Facsimile inquiries may be sent
to Ms. Parker at 202-708-0033 (this is not a toll-free number). Email
inquiries may be sent to <a href="/cdn-cgi/l/email-protection#6f0b061c0e1c1b0a1d301d0a0c00190a1d162f071a0b41080019"><span class="__cf_email__" data-cfemail="0f6b667c6e7c7b6a7d507d6a6c60796a7d764f677a6b21686079">[email&#160;protected]</span></a>.

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Allocations
II. Use of Funds
III. Grant Administration
A. Action Plan Submission Process
B. Clarification of the Financial Management and Grant
Compliance Certification Requirements
C. Clarification of the Reimbursement Requirements for Grants
Under the Appropriations Act
D. Optional Waivers and Alternative Requirements: Substantial
Amendment to an Existing Public Action Plan
IV. Duration of Funding
V. Assistance Listing Numbers (Formerly Known as the CFDA Number)
VI. Finding of No Significant Impact
Appendix A: Allocation Methodology

I. Allocations

In November 2023, HUD announced approximately $142 million in CDBG-
DR funds appropriated by the Disaster Relief Supplemental
Appropriations Act, 2023 (Pub. L. 117-328) (the ``2023 Appropriations
Act'') for major disasters occurring in 2022 and January 2023 in a
Federal Register notice published on November 27, 2023 (88 FR 82982)
(``November 2023 Notice''). The Disaster Relief Supplemental
Appropriations Act, 2025 (Pub. L. 118-158) approved on December 21,
2024 (``2025 Appropriations Act'') makes available $12,039,000,000 in
new CDBG-DR funds for major disasters that occurred in 2023 or 2024.
The 2025 Appropriations Act also provides that HUD allocate any
unobligated no-year balances remaining from Public Laws 108-324, 109-
148, 109-234, 110-252, 110-329, 111-212, 112-55, and 113-2 (the ``Prior
Appropriations Acts'') for the same purposes as these new funds. The
sum of all unobligated balances from these Prior Appropriations Acts is
$31,701,000. This brings the total funding available for 2023 or 2024
disasters to $12,070,701,000.
These CDBG-DR funds are for necessary expenses for activities
authorized under title I of the Housing and Community Development Act
of 1974 (42 U.S.C. 5301 et seq.) (HCDA) related to disaster relief,
long-term recovery, restoration of infrastructure and housing, economic
revitalization, and mitigation in the ``most impacted and distressed''
(MID) areas resulting from a qualifying major disaster that occurred in
2023 or 2024. The 2025 Appropriations Act provides that $78,850,000 of
these amounts will be made available for these specific purposes:
$45,000,000 for salaries and expenses of the Office of Community
Planning and Development, $1,850,000 for HUD's disaster recovery
portal, $7,000,000 for the Office of Inspector General, and $25,000,000
for capacity building and technical assistance, leaving the remaining
$11,991,851,000 available for allocations to CDBG-DR grantees.
Of the $11,991,851,000 made available, this notice announces an
allocation of $102,414,000 from the 2025 Appropriations Act for
disasters occurring in January 2023 only. The remaining $11,889,437,000
from the

[[Page 21329]]

2025 Appropriations Act to address recovery needs and mitigation
activities for major disasters that occurred after January 2023 was
announced in the Federal Register notice published on January 8, 2025
(90 FR 1754).
The 2025 Appropriations Act requires HUD to include with any final
allocation for the total estimate of unmet need an additional amount of
15 percent of that estimate for mitigation activities that reduce risk
in the MID areas (see Table 1). The 2025 Appropriations Act provides
that grants shall be awarded directly to a state, local government, or
Indian tribe at the discretion of the Secretary.
Pursuant to the 2025 Appropriations Act, HUD has identified MID
areas based on the best available data for all eligible affected areas.
An explanation of HUD's allocation methodology is provided in Appendix
A of this notice and a detailed explanation of HUD's allocation
methodology is provided in the November 2023 Notice. All of the
grantees within this notice must use at least 80 percent of their
allocations to address unmet disaster needs or mitigation activities
that benefit the HUD-identified MID areas, as identified in the last
column of Table 2. They may use the remaining 20 percent of their
allocation to address unmet disaster needs or mitigation activities in
those areas that the grantee determines are ``most impacted and
distressed'' within an area that received a Presidential major disaster
declaration identified by the Federal Emergency Management Agency
(FEMA) disaster numbers listed in column two of Table 1. However, these
grantees are not precluded from spending 100 percent of their
allocation to benefit the HUD-identified MID areas if they choose to do
so.
Based on a review of the impacts from the eligible disasters, and
estimates of unmet need, HUD made the following allocations for
disasters occurring in January 2023:

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Table 1--Allocations for Unmet Needs and Mitigation Activities Under Public Laws 117-328 and 118-158 for Disasters Occurring in January 2023
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CDBG-DR
Allocation for CDBG-DR mitigation Total announced Allocations for mitigation set- Total announced
FEMA unmet needs set-aside amounts under the unmet needs aside for Total announced under all
Year Disaster State Grantee announced under announced under the November 27, 2023 announced under amounts under this notices from
No. the November 27, November 27, 2023 notice from this notice from announced under notice from Pub. Pub. L. 117-328
2023 notice from notice from Pub. L. Pub. L. 117-328 Pub. L. 118-158 this notice from L. 118-158 and 118-158
Pub. L. 117-328 117-328 Pub. L. 118-158
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2023............................... 4684 Alabama............... State of Alabama...... $9,046,000 $1,357,000 $10,403,000 $6,712,000 $1,007,000 $7,719,000 $18,122,000
2023............................... 4683 California............ State of California... 100,019,000 15,003,000 115,022,000 74,217,000 11,132,000 85,349,000 200,371,000
2023............................... 4685 Georgia............... State of Georgia...... 10,952,000 1,643,000 12,595,000 8,127,000 1,219,000 9,346,000 21,941,000
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Totals......................... ........ ...................... ...................... 120,017,000 18,003,000 138,020,000 89,056,000 13,358,000 102,414,000 240,434,000
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[[Page 21331]]

Table 2--Most Impacted and Distressed Areas for Disasters Occurring in January 2023
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UPDATED Minimum amount
under all notices from Pub.
L. 117-328 and 118-158 that
Grantee must be expended in the HUD- ``Most impacted and distressed''
identified ``most impacted Areas
and distressed'' areas in
column 3
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State of Alabama............................ $14,497,600 36703 (Dallas County).
State of California......................... $160,296,800 Merced, Santa Cruz, San Luis Obispo
Counties; 95220 (San Joaquin
County), 93001 (Ventura County).
State of Georgia............................ $17,552,800 30223 (Spalding County).
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II. Use of Funds

Funds for disasters occurring in January 2023 announced in this
notice are subject to the requirements of HUD's CDBG-DR Universal
Notice (``Universal Notice''), published on January 8, 2025, in the
Federal Register at 90 FR 1754, including sections I through V and
appendices A through C, as may be amended. Except as specifically
modified or clarified by the requirements in sections III or IV of this
notice, the requirements of the Universal Notice, as may be amended,
shall be read to apply to the allocations announced in this notice. HUD
has determined that good cause exists for each waiver and alternative
in the Universal Notice that is made applicable to the funds announced
in this notice, and that the waivers or alternative requirements are
not inconsistent with the overall purpose of title I of the HCDA.
On March 19, 2025, HUD published Memorandum 2025-02 titled,
``Revisions made to the Common Application, Waivers, and Alternative
Requirements for Community Development Block Grant Disaster Recovery
Grantees: The Universal Notice published in the Federal Register (90 FR
1754) and Clarifications to the Allocations for Community Development
Block Grant Disaster Recovery and Implementation of the CDBG-DR
Consolidated Waivers and Alternative Requirements Notice Published in
the Federal Register (90 FR 4759),'' that revises several sections of
the Universal Notice (90 FR 1754) to align with four executive orders
listed in the memorandum.
Additionally, on March 31, 2025, HUD published Memorandum 2025-03
titled, ``Revisions made to the Common Application, Waivers, and
Alternative Requirements for Community Development Block Grant Disaster
Recovery Grantees: The Universal Notice published in the Federal
Register (90 FR 1754),'' that revises additional sections of the
Universal Notice (90 FR 1754) to align with one additional executive
order and 2 CFR part 200.

III. Grant Administration

III.A. Action Plan Submission Process

As indicated in section I.C.3. of the Universal Notice, published
at 90 FR 1754, this Allocation Announcement Notice provides a process
for Action Plan submittal. Within 90 days of the applicability date of
this notice, grantees are required to submit their Action Plan to HUD
for review and approval. For all allocations announced in this
Allocation Announcement Notice, HUD is requiring an email submission of
the Action Plan.
Grantees shall submit their Action Plan to their assigned Community
Planning and Development (CPD) Specialist or other designated HUD CPD
staff member, with a copy provided to <a href="/cdn-cgi/l/email-protection#bbdfd2c8dac8cfdec9e4c9ded8d4cddec9c2fbd3cedf95dcd4cd"><span class="__cf_email__" data-cfemail="5f3b362c3e2c2b3a2d002d3a3c30293a2d261f372a3b71383029">[email&#160;protected]</span></a>. HUD
encourages grantees to use the Action Plan template available on the
Universal Notice website at <a href="https://www.hud.gov/stat/cpd/universal-notice-grantees">https://www.hud.gov/stat/cpd/universal-notice-grantees</a>.

III.B. Clarification of the Financial Management and Grant Compliance
Certification Requirements

No grantee receiving an allocation announcement under both this
notice and the November 2023 Notice exceeds the five-year criteria for
relying on prior submissions of the financial management and grant
compliance certifications that is established in the Universal Notice.
Therefore, the grantees covered by this notice may rely on their prior
submissions provided in response to the Financial Management and Grant
Compliance Certification Requirements in the November 2023 Notice. HUD
reminds grantees that it will continue to monitor all of the grantee's
submissions and updates made to policies and procedures and its
capacity assessment during the normal course of business. The grantee
must notify HUD of any substantial changes made to these submissions.

III.C. Clarification of the Reimbursement Requirements for Grants Under
the Appropriations Act

The requirements in section III.B.14. of the Universal Notice shall
apply to allocations announced in this notice. Grantees are reminded
that the reference to the ``applicability date of the grantee's initial
AAN'' in section III.B.14.b. of the Universal Notice shall refer to the
December 4, 2023 applicability date of the November 2023 Notice for
allocations announced in this notice. This means that grantees may
charge to their CDBG-DR grants the eligible pre-application costs of
individuals and private entities related to single family, multifamily,
and nonresidential buildings, only if the costs were incurred from the
incident date of the qualifying disaster either to December 4, 2025 or
the date on which the person or entity applies for CDBG-DR assistance,
whichever is earlier.

III.D. Optional Waivers and Alternative Requirements: Substantial
Amendment to an existing Public Action Plan

HUD is also allowing grantees announced in this notice the option
to align their use of funds allocated under the 2023 Appropriations Act
(as announced in the November 2023 Notice) with the waivers and
alternative requirements in the Universal Notice. This process would
reduce administrative burden of grantees having to track separate
requirements for two grants allocated for the same disasters. If a
grantee would like to pursue this option, it should write to its
applicable HUD CPD staff member and request to have the waivers and
alternative requirements included in the Universal Notice made
applicable to its initial allocation announced in the November 2023
Notice. Upon approval, the applicable HUD CPD staff member will provide
the grantee with additional information regarding DRGR compliance, as
needed.

[[Page 21332]]

IV. Duration of Funding

The 2025 Appropriations Act made the funds available for obligation
by HUD until expended. HUD waives the provisions at 24 CFR 570.494 and
24 CFR 570.902 regarding timely distribution and expenditure of funds
and establishes an alternative requirement providing that each grantee
must expend 100 percent of all its allocations within six years of the
date HUD signs the initial grant agreement for the initial CDBG-DR
grant announced under the November 2023 Notice for January 2023
disasters. 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. 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.

V. Assistance Listing Numbers (Formerly Known as the CFDA Number).

The Assistance Listing Numbers (formerly known as the Catalog of
Federal Domestic Assistance numbers) for the disaster recovery grants
under this notice are as follows: 14.218; 14.228.

VI. 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 <a href="https://www.hud.gov/program_offices/comm_planning/cdbg-dr">https://www.hud.gov/program_offices/comm_planning/cdbg-dr</a>. 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>.

David C. Woll Jr.,
Principal Deputy Assistant Secretary for Community Planning and
Development.

Appendix A

Allocation of CDBG-DR Funds to Most Impacted and Distressed Areas due
to Presidentially Declared Disasters Occurring in January 2023

This notice announces the balance of funds calculated for
qualifying January 2023 disasters. Appendix A of the November 2023
Notice describes the detailed methodology for calculating
allocations that HUD made for unmet recovery and mitigation needs
for January 2023 disasters. HUD used the same allocation methodology
for January 2023 disasters receiving funds under the 2025
Appropriations Act and under the 2023 Appropriations Act. At the
time of the allocations under the 2023 Appropriations Act, HUD had
calculated total unmet recovery and mitigation needs for January
2023 disasters as $241,728,000. However, only $138,020,000 was
available under the 2023 Appropriations Act for January 2023
disasters. This new allocation under the 2025 Appropriations Act
represents the balance of unmet needs plus mitigation needs
described in the November 2023 Notice less a 1.2488 percent pro-rata
reduction on the balance amounts to reflect the pro-rata reduction
needed for all disasters being funded by the 2025 Appropriations Act
due to unmet needs plus mitigation needs exceeding appropriations.

[FR Doc. 2025-08908 Filed 5-16-25; 8:45 am]
BILLING CODE 4210-67-P

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