To exclude declined or cancelled loan amounts from the DOB calculation, the grantee must document that all or a portion of the subsidized loan is cancelled or declined. unit is occupied by a renter with income less than the greater of the Federal poverty level or 50 percent of the area median income. 5301 II.D.5. Requirement for consultation during plan preparation. Administration, Planning, and Financial Management, III.C. That the Secretary shall allocate, using the best available data, an amount equal to the total estimate for unmet needs for qualifying disasters under this heading in this Act: Grantees should consult Table 1 for the amount allocated specifically for the CDBG-DR mitigation set-aside. Community Development Block Grant (CDBG) Public Services Policies and headings within the legal text of Federal Register documents. Section 6 of the CDBG Management Handbook is available on the CDBG website An Indian tribe grantee certifies that the grant will be conducted and administered in conformity with the Indian Civil Rights Act. Therefore, HUD will include 80 percent of a grantee's expenditures for grant administration in its determination that 80 percent of the total award has benefited the HUD-identified MID area. 5301 ). URA, Section 104(d), and Related CDBG Program Requirements, V.A. Grantees are strongly encouraged to explain and provide examples of how their actions can be expected to advance the following objectives: Grantees must identify the proximity of natural and environmental hazards ( provide legal notice to the public or judicial notice to the courts. 4601 Publication of the action plan and opportunity for public comment. Each of the FEMA-inspected renter units are categorized by HUD into one of five categories: To meet the statutory requirement of most impacted for rental properties, homes are determined to have a high level of damage if they have damage of major-low or higher. III.A.2.a. CDBG-DR grantees must also comply with the recordkeeping requirements of 24 CFR 570.506 and 24 CFR 570.490(b), as amended by the Consolidated Notice. An impact and unmet needs assessment. The Department granted the original waiver for several reasons, including: to support the goal of preventing homelessness and minimizing the time that disaster-impacted households are experiencing homelessness by providing rental assistance and re-housing services, by linking disaster-impacted households with services that can help them become stable and self-sufficient, and to provide rental assistance to many elderly citizens that were at immediate risk of experiencing homelessness because they could not afford to pay rent without assistance. This section will walk grantees through Section 3, which is a provision of the HUD Act of 1968 and is found . ; Describe the extent to which expenditures for planning activities, including the determination of land use goals and policies, will benefit the HUD-identified MID areas, as described in section II.A.3. standard instead of the elevation requirements established in section II.B.2.c. The acquisition cost must comply with applicable cost principles and with the acquisition requirements at 49 CFR 24, Subpart B, as revised by the Consolidated Notice waivers and alternative requirements. Availability and accessibility of documents. Without this waiver, disparities exist in relocation assistance associated with activities typically funded by HUD and FEMA ( Subsequent to publication of the action plan or substantial amendment to that plan, the grantee must provide a reasonable time frame (no less than seven days) and multiple methods (including electronic submission) for receiving comments on the action plan or substantial amendment for program administrative costs. To the maximum extent feasible, program income shall be used or distributed before additional withdrawals from the U.S. Treasury are made, except as provided in III.E.1.e. Clarification of Disaster-Related Activities, II.B. A description of how the grantee plans to minimize displacement of persons or entities, and assist any persons or entities displaced, and ensure accessibility needs of displaced persons with disabilities. Regulations Division at 202-708-3055 (this is not a toll-free number). III.A.1.b. Additional criteria and specific conditions to mitigate risk. phase of the procurement, requirements for proposals, etc.). IV.E.2.c. This description must focus on relocation assistance under the URA and its implementing regulations at 49 CFR part 24, Section 104(d) and implementing regulations at 24 CFR part 42 (to the extent applicable), 24 CFR 570.488 and/or 24 CFR 570.606, and relocation assistance pursuant to this section of the Consolidated Notice, as well as any other assistance being made available to displaced persons. 5301 et seq.) THRESHOLD (NMAC 2.110.2.17.E.) The grantee must provide a budget for the full amount of the allocation that is reasonably proportionate to its unmet needs (or provide an acceptable justification for disproportional allocation) and is consistent with the requirements to integrate hazard mitigation measures into all its programs and projects. Document Drafting Handbook At a minimum, the following modifications will constitute a substantial amendment: A change in program benefit or eligibility criteria; the addition or deletion of an activity; a proposed reduction in the overall benefit requirement, as outlined in III.F.2. et seq. The grantee must meet the applicable environmental requirements before the use or commitment of funds for each activity. PDF State of Georgia CDBG-CV Applicants' Manual Minor-Low: Less than $2,500 of FEMA inspected personal property damage. informational resource until the Administrative Committee of the Federal Start Printed Page 6378 This waiver is necessary to reduce burdensome administrative requirements for homebuyers following a disaster. III.B.2.f. (f) it assists in investigating and taking action when fraud occurs within the grantee's CDBG-DR activities and/or programs. of the Consolidated Notice and include them with the submission of this plan: Paragraphs b., c., d., g., i., j., k., l., p., and q. Additionally, HUD is waiving section 104 and section 106 of the HCDA and section 210 of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (42 U.S.C. Each grantee must make all certifications included in section III.F.7. 5305(a)(8)) by using such assistance to. (NEPA). Failure to draw funds within this timeframe may result in HUD's review of the grantee's certification of its financial controls, procurement processes, and capacity, and may result in the imposition of any corrective actions deemed appropriate by HUD pursuant to 24 CFR 570.495, 24 CFR 570.910, or 24 CFR 1003.701. Based on further review of the impacts from the eligible disasters, and estimates of unmet need, HUD is making the following allocations: Table 1Allocations for Unmet Needs and Mitigation Activities Under Public Law 117-43 for Disasters Occuring in 2020, Table 2Most Impacted and Distressed Areas for Disasters Occuring in 2020. All grantees receiving CDBG-DR funds for the first time shall attend and require subrecipients to attend fraud related training provided by HUD OIG, when offered, to assist in the proper management of CDBG-DR grant funds. Allocation and award caps. The waivers and alternative requirements provide flexibility in program design and implementation to support full and swift recovery following eligible disasters, while ensuring that statutory requirements are met. Each of the FEMA inspected owner units are categorized by HUD into one of five categories: When owner-occupied properties also have a personal property inspection or only have a personal property inspection, HUD reviews the personal property damage amounts such that if the personal property damage places the home into a higher need category over the real property assessment, the personal property amount is used. HUD works with grantees to resolve or provide additional information during the review period to avoid the need to disapprove an action plan or substantial action plan amendments. e.g., Additionally, all such covered construction must achieve a minimum energy efficiency standard, such as (i) ENERGY STAR (Certified Homes or Multifamily High-Rise); (ii) DOE Zero Energy Ready Home; (iii) EarthCraft House, EarthCraft Multifamily; (iv) Passive House Institute Passive Building or EnerPHit certification from the Passive House Institute US (PHIUS), International Passive House Association; (v) Greenpoint Rated New Home, Greenpoint Rated Existing Home (Whole House or Whole Building label); (vi) Earth Advantage New Homes; or (vii) any other equivalent energy efficiency standard acceptable to HUD. 4625), and 49 CFR 24.2(a)(6)(vii), 24.2(a)(6)(ix), and 24.402(b) are waived to the extent necessary to permit a grantee to meet all or a portion of a grantee's replacement housing payment obligation to a displaced tenant by offering rental housing through a rental housing program subsidy (to include, but not limited to, a housing choice voucher), provided that comparable replacement dwellings are made available to the tenant in accordance with 49 CFR 24.204(a) where the owner is willing to participate in the program and the period of authorized assistance is at least 42 months. A grantee may find it necessary to provide exceptions on a case-by-case basis to the maximum amount of assistance and must describe the process it will use to make such exceptions in its action plan. ) PDF Notice of Program Rules, Waivers, and Alternative Requirements Under electronic version on GPOs govinfo.gov. A revolving fund established by a CDBG-DR grantee shall not be directly funded or capitalized with CDBG-DR grant funds, pursuant to 24 CFR 570.489(f)(3). Housing rehabilitation, infrastructure in support of affordable housing. 5304 and 42 U.S.C. For each waiver and alternative requirement in this notice and incorporated through the Consolidated Notice, the Secretary has determined that good cause exists, and the waiver or alternative requirement is not inconsistent with the overall purpose of title I of the HCDA. 5305(a) to the extent necessary to create a new eligible activity and use up to $5,000,000 of CDBG-DR funds to promote travel to disaster-impacted areas, which at the time was the amount included in the USVI's action plan and substantial amendments submitted to and approved by HUD. After HUD's approval of the action plan for program administrative costs, the grantee enters the activities from its approved action plan into the DRGR system if it has not previously done so and submits its DRGR action plan to HUD (funds can be drawn from the line of credit only for activities that are established in the DRGR system). Grantees must also describe how their use of CDBG-DR funds is consistent with their obligation to affirmatively further fair housing. 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. III.D.1.h. Sufficient documentation for non-physical disaster-related impacts must clearly show how the activity addresses the disaster impact, The minimum affordability period acceptable for compliance are the HOME requirements at 24 CFR 92.254(a)(4). (4) The estimated local cost share for Public Assistance Category C to G projects. To ensure consistency in the implementation of CDBG-DR and CDBG-MIT funds for private utility assistance, HUD is imposing the same alternative requirements on the Commonwealth's CDBG-DR or CDBG-MIT funds under Public Laws 115-123, 115-56, and 116-20 as were established Start Printed Page 75646 for CDBG-DR funds provided pursuant to Public Law . The Appropriations Act makes the funds available for obligation by HUD until expended. A grantee shall administer CDBG-DR grant funds in accordance with all applicable laws and regulations. All in-person hearings must be held in facilities that are physically accessible to persons with disabilities. Start Printed Page 6382 Underserved communities that were economically distressed before the disaster include, but are not limited to, those areas that were designated as a Promise Zone, Opportunity Zone, a Neighborhood Revitalization Strategy Area, a tribal area, or those areas that meet at least one of the distress criteria established for the designation of an investment area of Community Development Financial Institution at 12 CFR 1805.201(b)(3)(ii)(D). 4601, This waiver is intended to provide states with maximum flexibility in developing optional relocation policies with CDBG-DR funds. III.C.1.f. IV.D.2. These tools are designed to help you understand the official document notice published on February 9, 2018. HUD is waiving the section 104(d) one-for-one replacement requirement for owner-occupied lower-income dwelling units that are damaged by the disaster and not suitable for rehabilitation because the one-for-one replacement requirements do not account for the large, sudden changes that a major disaster may cause to the local housing stock, population, or economy. The grantee must work directly with impacted PHAs in identifying necessary and reasonable costs and ensuring that adequate funding from all available sources is dedicated to addressing the unmet needs of damaged public housing ( m. The grantee certifies to the accuracy of its Financial Management and Grant Compliance Certification Requirements, or other recent certification submission, if approved by HUD, and related supporting documentation as provided in section III.A.1. award cap) available to a beneficiary under each of the grantee's disaster recovery programs. The grantee shall provide a description of each disaster recovery program or activity to be funded, including the CDBG-DR eligible activities and national objectives associated with each program and the eligibility criteria for assistance. 5305(e)(3), 24 CFR 570.482(f)(1), (2), (3), (4)(i), (5), and (6), and 570.209(b)(1), (2), (3)(i), (4), and 24 CFR 1003.302(c) for all economic development activities. Obligation and expenditure of funds. Any CDBG-DR tourism expenditures may not supplant USVI or local government funds for tourism marketing. Following a disaster, property owners and renters are frequently the targets of persons fraudulently posing as government employees, creditors, mortgage servicers, insurance adjusters, and contractors. II.B.10. Grantees may use CDBG-DR funds for activities that may include, but are not limited to, new construction, reconstruction, and rehabilitation of single-family or multifamily housing, homeownership assistance, buyouts, and rental assistance. Grantees must coordinate with local public housing authorities (PHA) in the MID areas to ensure that the grantee's representation in the action plan reflects the input of those entities as well as coordinating with State Housing Finance agencies to make sure that all funding sources that are available and opportunities for leverage are noted in the action plan. of the Consolidated Notice, grantees are required to establish resilience performance metrics for those activities. For purposes of the Consolidated Notice, HUD defines vulnerable populations as a group or community whose circumstances present barriers to obtaining or understanding information or accessing resources. The minimum timeframes and other related requirements acceptable for compliance with this alternative requirement are the HOME Investment Partnerships Program (HOME) requirements at 24 CFR 92.252(e), including the table listing the affordability periods at the end of 24 CFR 92.252(e). This feature is not available for this document. III.B.2.h. The DRGR system will prompt the grantee to select the Public Action Plan and identify the amendment type (substantial or nonsubstantial). CDBG Entitlement Program Eligibility Requirements - HUD Exchange Alternative requirement for housing rehabilitationassistance for second homes. Start Printed Page 6379 PRDOH's Law 173 Program subsidizes the rent of thousands of low-income elderly tenants in 49 housing facilities for people over the age of 60 throughout the Commonwealth. (ii) In addition to the alternative requirements dealing with program income required above, the following rules apply: (1) A state or local government grantee may transfer program income to its annual CDBG program before closeout of the grant that generated the program income. 5304(b)(4), (c) & (m)), sections 106(d)(2)(C) & (D) of the HCDA (42 U.S.C. of this notice. III.B.2.g. In response to a deficiency, HUD may issue a warning letter followed by a corrective action plan that may include a management plan which assigns responsibility for further administration of the grant to specific entities or persons. Because the waiver and alternative requirement in II.B.1. Thus, the total of all costs classified as administrative for a CDBG-DR grant must be less than or equal to the five percent cap (plus five percent of program income generated by the grant). Such persons' eligibility for relocation assistance and payments under the URA is not impacted by this waiver. e.g., Buyout activities are subject to all requirements that apply to acquisition activities generally including but not limited to, the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (URA) (42 U.S.C. Additionally, if the state agency designated as the administering agency chooses to provide funding to another state agency, the administering agency must specify in its procurement processes whether the agency implementing the CDBG-DR activity must follow the procurement processes that the administering agency is subject to, or whether the agency must follow the same processes to which other local governments and subrecipients are subject, or its own procurement processes. Monitoring and performance Must adhere to written agreement and services, go to Displaced persons must receive any relocation assistance to which they are entitled under other legal authorities, such as the URA, section 104(d) of the HCDA, or those described in the Consolidated Notice. Register (ACFR) issues a regulation granting it official legal status. Use of funds for administrative costs across multiple grants. 5304(a)(2) and (3), 42 U.S.C. The Public Action Plan is different from the DRGR Action Plan, which is a comprehensive description of projects and activities in DRGR. 5306(d) are waived to allow a state to use its disaster recovery grant allocation directly to carry out state-administered activities eligible under the Consolidated Notice, rather than distribute all funds to local governments. CDBG-DR grantees shall not treat declined subsidized loans, including declined SBA loans, as a DOB (but are not prohibited from considering declined subsidized loans for other reasons, such as underwriting). About the Federal Register Grantee responses shall address the substance of the comment rather than merely acknowledge that the comment was received. (2) Staffing. In section II.A.2.b. e.g., of the Consolidated Notice. The Virginia Department of Housing and Community Development (DHCD) is making available current CDBG funding to small cities, towns and rural counties to respond to local needs related to COVID-19 response. The Community Development Block Grant (CDBG) Program is a federally funded block grant to states that focuses on benefiting low- to moderate-income people by providing resources for livable neighborhoods, economic empowerment, and decent housing.. Several different programs are managed through an annual allocation including the CDBG Annual Competition, the Employment Incentive Program set . Federal Register. Waivers and Alternative Requirements for Community Development Block Responsibility to inform property owners to obtain and maintain flood insurance. The grantee's first performance report is due after the first full quarter after HUD signs the grant agreement. Cdbg Resources in Response to Covid-19 | Dhcd 5305(a)(24) is waived and replaced with the following alternative requirement: Provision of direct assistance to facilitate and expand homeownership among persons at or below 120 percent of area median income (except that such assistance shall not be considered a public service for purposes of 42 U.S.C. HUD may also exercise its regulatory waiver authority under 24 CFR 5.110, 91.600, and 570.5. If CDBG funds are used with CDBG-DR funds on an activity, any income earned on the CDBG portion would not be subject to the waiver and alternative requirement in the Consolidated Notice. 5304(d)) and implementing regulations at 24 CFR part 42, and 24 CFR 570.488 or 24 CFR 570.606, as applicable. State and local government grantees may establish revolving funds to carry out specific, identified activities. Activities that assist LMI persons and meet the criteria for the national objectives described below, including in II.B.10., will be considered to benefit LMI persons unless there is substantial evidence to the contrary and will count towards the calculation of a grantee's overall LMI benefit requirement as described in section III.F.2. that agencies use to create their documents. Grantees are reminded that tenant-occupied and vacant occupiable lower-income dwelling units demolished or converted to another use other than lower-income housing in connection with a CDBG-DR assisted activity are generally subject to one-for-one replacement requirements at 24 CFR 42.375 and that these provisions are not waived. These criteria may include, but need not be This information should be based on the history of FEMA and other federally-funded disaster mitigation efforts and, as appropriate, take into account projected increases in sea level, the frequency and intensity of extreme weather events, and worsening wildfires. III.A.2.b. The FONSI is available online on HUD's CDBG-DR website. The Secretary will disapprove all action plans that are substantially incomplete if it is determined that the plan does not satisfy all of the required elements identified in the Consolidated Notice and the applicable Allocation Announcement Notice. The action plan (including SF-424 and certifications) must be submitted to HUD for review and approval using DRGR. Grantees may, however, reimburse disaster-impacted beneficiaries based on the pre-application costs incurred by the beneficiary to complete an eligible activity. III.F.4. V.C.1. Instead, grantees must submit to HUD an action plan for disaster recovery which will describe programs and activities that conform to applicable requirements as specified in the Consolidated Notice and the applicable Allocation Announcement Notice. Planning costs subject to the 15 percent cap are those defined in 42 U.S.C. CDBG-DR Consolidated Notice II.B.9. Federal Register provide legal notice to the public and judicial notice As a result, it is very important to follow the recordkeeping and reporting requirements of the CDBG program, the Omnibus Circular, and any applicable cross-cutting regulations. The grantee shall also describe the maximum amount of assistance ( 5302 - Definitions Sec. II.B.1. If a grantee chooses to access funds for program administrative costs prior to the Secretary's certification, it must first prepare an action plan describing its use of funds for program administrative costs, subject to the five percent cap on the use of grant funds for such costs. Compliance will be maintained in accordance with the reporting requirements under the CDBG-DR regulations. Jessie Handforth Kome, Director, Office of Block Grant Assistance, Department of Housing and Urban Development, 451 7th Street SW, Room 10166, Washington, DC 20410, telephone number 202-708-3587. Therefore, when states carry out activities directly through subrecipients, the following alternative requirements apply: The state is subject to the definition of subrecipients at 24 CFR 570.500(c) and must adhere to the requirements for agreements with subrecipients at 24 CFR 570.503. Warning: Any person who knowingly makes a false claim or statement to HUD may be subject to civil or criminal penalties under 18 U.S.C. The website must include copies of all relevant procurement documents and, except as noted in the next paragraph, all grantee administrative contracts, details of ongoing procurement processes, and action plans and amendments. IV.F.1. II.B.6. When undertaking buyout activities, to demonstrate that a buyout meets the low- and moderate-income housing (LMH) national objective, grantees must meet all requirements of the HCDA, and applicable regulatory criteria described below. The program began in 1974, CDBG-DR grantees are directed to HUD's guidance published in CPD Notice 2021-09, Section 3 of the Housing and Urban Development Act of 1968, as amended by the Housing and Community Development Act of 1992, final rule requirements for CDBG, CDBG-CV, CDBG-DR, CDBG-Mitigation (CDBG-MIT), NSP, Section 108, and RHP projects, as amended ( The other agency's environmental review must cover all project activities funded by the HUD recipient for each project. The grantee must provide a reasonable time frame (no less than 30 days) and method(s) (including electronic submission) for receiving comments on the action plan or substantial amendment.