80 FR 51589 - Additional Clarifying Guidance, Waivers, and Alternative Requirements for Grantees in Receipt of Community Development Block Grant Disaster Recovery Funds Under the Disaster Relief Appropriations Act, 2013

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Federal Register Volume 80, Issue 164 (August 25, 2015)

This notice provides clarifying guidance, waivers, and alternative requirements for Community Development Block Grant Disaster Recovery grantees in receipt of funds under the Disaster Relief Appropriations Act, 2013 (the Appropriations Act). This notice modifies requirements for infrastructure projects funded by grantees receiving an allocation for Hurricane Sandy. This notice also provides waivers and alternative requirements for the State of New Jersey's Energy Resilience Bank and LMI Homeowner Rebuilding Program, and for New York City's infrastructure projects and the Breezy Point Flood Mitigation System.

[Federal Register Volume 80, Number 164 (Tuesday, August 25, 2015)]
[Notices]
[Pages 51589-51593]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-21065]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5696-N-16]


Additional Clarifying Guidance, Waivers, and Alternative 
Requirements for Grantees in Receipt of Community Development Block 
Grant Disaster Recovery Funds Under the Disaster Relief Appropriations 
Act, 2013

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

ACTION: Notice.

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SUMMARY: This notice provides clarifying guidance, waivers, and 
alternative requirements for Community Development Block Grant Disaster 
Recovery grantees in receipt of funds under the Disaster Relief 
Appropriations Act, 2013 (the Appropriations Act). This notice modifies 
requirements for infrastructure projects funded by grantees receiving 
an allocation for Hurricane Sandy. This notice also provides waivers 
and alternative requirements for the State of New Jersey's Energy 
Resilience Bank and LMI Homeowner Rebuilding Program, and for New York 
City's infrastructure projects and the Breezy Point Flood Mitigation 
System.

DATES: Effective Date: August 31, 2015.

FOR FURTHER INFORMATION CONTACT: Stanley Gimont, Director, Office of 
Block Grant Assistance, Department of Housing and Urban Development, 
451 7th Street SW., Room 7286, Washington, DC 20410, telephone number 
202-708-3587. Persons with hearing or speech impairments may access 
this number via TTY by calling the Federal Relay Service at 800-877-
8339. Facsimile inquiries may be sent to Mr. Gimont at 202-401-2044. 
(Except for the ``800'' number, these telephone numbers are not toll-
free.) Email inquiries may be sent to [email protected].

SUPPLEMENTARY INFORMATION: 

Table of Contents

I. Background
II. Applicable Rules, Statutes, Waivers, and Alternative 
Requirements
III. Catalog of Federal Domestic Assistance
IV. Finding of No Significant Impact

I. Background

    The Appropriations Act (Pub. L. 113-2, approved January 29, 2013) 
made available $16 billion in Community Development Block Grant 
disaster recovery (CDBG-DR) funds for necessary expenses related to 
disaster relief, long-term recovery, restoration of infrastructure and 
housing, and economic revitalization in the most impacted and 
distressed areas, resulting from a major disaster declared pursuant to 
the Robert T. Stafford Disaster Relief and Emergency Assistance Act of 
1974 (42 U.S.C. 5121 et. seq.) (Stafford Act), due to Hurricane Sandy 
and other eligible events in calendar years 2011, 2012, and 2013. On 
March 1, 2013, the President issued a sequestration order pursuant to 
Section 251A of the Balanced Budget and Emergency Deficit Control Act, 
as amended (2 U.S.C. 901a), and reduced the amount of funding for CDBG-
DR grants under the Appropriations Act to $15.18 billion. To date, a 
total of $15.18 billion has been allocated or set aside: $13 billion in 
response to Hurricane Sandy, $514 million in response to disasters 
occurring in 2011 or 2012, $655 million in response to 2013 disasters, 
and $1 billion set aside for the National Disaster Resilience 
Competition.
    This notice specifies a waiver and alternative requirements and 
modifies requirements for Hurricane Sandy grantees in receipt of 
allocations under the Appropriations Act, which are described within 
the Federal Register notices published by the Department on March 5, 
2013 (78 FR 14329), April 19, 2013 (78 FR 23578), August 2, 2013 (78 FR 
46999), November 18, 2013 (78 FR 69104), March 27, 2014 (79 FR 17173), 
July 11, 2014 (79 FR 40133), October 16, 2014 (79 FR 62182), April 2, 
2015 (80 FR 17772), and May 11, 2015 (80 FR 26942), referred to 
collectively in this notice as the ``prior notices.'' The requirements 
of the prior notices continue to apply, except as modified by this 
notice.\1\
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    \1\ Links to the prior notices, the text of the Appropriations 
Act, and additional guidance prepared by the Department for CDBG-DR 
grants, are available on the HUD Exchange Web site: https://www.hudexchange.info/cdbg-dr/cdbg-dr-laws-regulations-and-federal-register-notices/.
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II. Applicable Rules, Statutes, Waivers, and Alternative Requirements

    The Appropriations Act authorizes the Secretary to waive, or 
specify alternative requirements for, any provision of any statute or 
regulation that the Secretary administers in connection with HUD's 
obligation or use by the recipient of these funds (except for 
requirements related to fair housing, nondiscrimination, labor 
standards, and the environment). Waivers and alternative requirements 
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.) (HCD Act). Regulatory 
waiver authority is also provided by 24 CFR 5.110, 91.600, and 570.5.
    For the waivers and alternative requirements described in this 
notice, the Secretary has determined that good cause exists and that 
the waivers and alternative requirements are not inconsistent with the 
overall purpose of the HCD Act. Grantees may request waivers and 
alternative requirements from the Department as needed to address 
specific needs related to their recovery activities. Under the 
requirements of the Appropriations Act, waivers must be published in 
the Federal Register no later than 5 days before the effective date of 
such waiver.
    1. Exemptions from Infrastructure Program and Project 
Requirements--Obligated Assistance from Federal Grant Program Projects 
and Completed Projects--(Hurricane Sandy Grantees only). The March 27, 
2014, Federal Register notice, at paragraph II.1.b., Obligated Public 
Assistance Grant Program Projects (78 FR 17174), provides an exemption 
from certain infrastructure requirements described in paragraph 2 of 
the Federal Register notice published November 18, 2013, at 78 FR 
69107, for those projects to which the Federal Emergency Management 
Agency (FEMA) had obligated Public Assistance (PA) funds on or before 
November 25, 2013. After consideration of the factors discussed below, 
HUD is now modifying this exemption. As of the effective date of this 
notice, the infrastructure requirements described in paragraph 2 at 78 
FR 69107 will not apply to an infrastructure project carried out by a 
Hurricane Sandy CDBG-DR grantee if FEMA or any other Federal agency has 
obligated funds to that infrastructure project on or before January 15, 
2014, or if the infrastructure project was completed on or before 
January 15, 2014.
    Oftentimes CDBG-DR grantees are awarded Federal recovery funds for 
which CDBG-DR can be used as the source for the required non-Federal 
local match of funds. These Federal

[[Page 51590]]

sources may include, but are not limited to, the Environmental 
Protection Agency, the Federal Highway Administration, the Federal 
Transportation Administration, the Army Corps of Engineers, and the 
FEMA Public Assistance and Hazard Mitigation grant programs. Such grant 
assistance can be used for a variety of activities and often requires 
grantees to contribute a non-Federal share of funds to a project. If 
the project is an eligible CDBG-DR activity, CDBG-DR funds may be used 
for the payment of the non-Federal share required in connection with a 
Federal grant-in-aid program if permitted by the Federal awarding 
agency that required the match (see 24 CFR 570.201(g) and 42 U.S.C. 
5305(a)(9)) .
    Prior to HUD's November 18, 2013, notice, many grantees had 
coordinated with Federal agencies to secure funding for critical 
infrastructure projects, but only upon establishment of the Sandy 
Recovery Office and the launch of the Regional Coordination Working 
Group (now known as the Sandy Regional Infrastructure Resilience 
Coordination Group or SRIRC Group), in January 2014, would grantees 
have been able to comply with Federal coordination requirements 
outlined in the November 18, 2013 notice. In addition, grantees may 
have completed infrastructure projects before the establishment of the 
requirements described in that notice at paragraph 2 at 78 FR 69107.
    Accordingly, the clarification described in the March 27, 2014, 
notice at paragraph II.1.b. is amended to read, ``Infrastructure 
requirements described in paragraph 2 at 78 FR 69107 do not apply to 
any infrastructure project where funds have been obligated by a Federal 
agency under any federal grant-in-aid program on or before January 15, 
2014, or where a project funded through any means was completed on or 
before January 15, 2014.''
    2. Waiver of requirement for assistance to businesses, including 
privately-owned utilities for Energy Resilience Bank activities (State 
of New Jersey only)--The Federal Register notice published on March 5, 
2013, instituted an alternative requirement to various provisions at 42 
U.S.C. 5305(a) and restricts the assistance provided to for-profit 
businesses to only those businesses that meet the definition of a small 
business as described by the Small Business Administration (SBA) at 13 
CFR part 121. That notice also prohibited CDBG-DR grantees in receipt 
of funds under the Appropriations Act from providing funds to 
privatelyowned utilities (paragraph VI.D.41., Alternative requirement 
for assistance to businesses, including privately-owned utilities, at 
78 FR 14347). The State of New Jersey has requested a waiver of the 
prohibition on assistance to businesses that do not meet the SBA 
definition of a small business and the prohibition on assistance to 
privately-owned utilities for its planned $200 million CDBG-DR 
investment in the New Jersey Energy Resilience Bank (ERB).
    The Department approved the ERB in the State's disaster recovery 
Action Plan for the second allocation of CDBG-DR funds under the 
Appropriations Act on May 30, 2014.\2\ The State has committed to using 
the ERB to harden critical facilities to ensure they remain operational 
during storm events through the use of distributed energy generation, 
such as combined heat and power, fuel cells, and off-grid solar 
inverters with battery storage. Eligible technologies must be 
constructed to operate independently from the electric utility grid and 
be able to start up without a direct connection to the electric grid 
when the grid is down due to extreme weather events. The ERB will focus 
on funding critical facilities in sectors that were impacted by 
Hurricane Sandy, including water and wastewater treatment plants, 
hospitals and long-term care facilities, colleges and universities, 
state and county correctional facilities, HUD-assisted multifamily 
housing units, community shelters, and transportation and transit 
infrastructure.
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    \2\ http://www.renewjerseystronger.org/plans-policies-reports/#cdbg.
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    The ERB aligns with the Hurricane Sandy Rebuilding Strategy's (the 
Strategy) goal of ``Ensuring a Regionally Coordinated, Resilient 
Approach to Infrastructure Investment,'' and the Strategy specifically 
references the ERB as a program developed by the State with assistance 
from the Hurricane Sandy Rebuilding Task Force. The Strategy notes 
``most energy infrastructure is privately-owned and operated, which 
means that resilience investment will come about only through close 
cooperation between the Federal and State governments and the private 
sector.''
    Many of the facilities expected to receive funding through the 
State's ERB provide critical public services but are owned by a mix of 
public and for-profit entities, or are solely privately owned, and 
cannot be assisted under the current prohibitions imposed by the March 
5, 2013, notice. At least 20 of the 108 potentially eligible hospital 
facilities are operated as for-profit entities and do not meet the 
small business criteria. Moreover, 438 of the State's 617 long-term 
care facilities and 95 of 170 institutions of higher learning are 
operated as for-profit entities and do not meet the small business 
criteria. The State also anticipates funding private utilities, such as 
private water districts, which serve the needs of their regional 
populations in the same manner as public utilities.
    These facilities often serve communities most impacted by Hurricane 
Sandy, having high concentrations of low- and moderate-income (LMI) 
persons, and they provide essential services to vulnerable populations 
that are comparable to their public and non-profit counterparts. 
Without a waiver of the restrictions on assistance to certain types of 
businesses, many of these critical facilities would be ineligible for 
funding, leaving large gaps in the State's regional distributed energy 
networks and excluding significant populations (including LMI persons) 
from benefiting from the State's resiliency measures.
    While not every critical facility will serve predominantly LMI 
populations, vulnerable residents typically rely more on community-
based facilities and services, especially in disaster scenarios. To the 
extent that the ERB will be funding such facilities and services, LMI 
populations would benefit especially from the increased resiliency of 
critical infrastructure during the next storm event. Accordingly, as a 
condition of providing this waiver, HUD is requiring the State to 
develop a scoring methodology for the selection of ERB projects that 
provides preferential treatment to LMI areas and populations. The LMI 
benefit scoring methodology is to be designed to ensure continued 
progress by the State in meeting its overall CDBG-DR grant LMI benefit 
requirement and to ensure that, in financing ERB projects, the State 
places a significant priority on serving LMI areas and populations.
    In its request to the Department, the State acknowledged that the 
ERB is not a substitute for private investment, but is instead designed 
to leverage additional private investment in resilient energy systems. 
The State has developed ERB financial products using substantial market 
research and analysis to ensure that products are attractive to 
consumers in the market, while also generating proceeds for the ERB. 
The State is also developing assistance packages that consist of 
variable contributions of loans, forgivable loans, and grants, with 
each product requiring varying levels of equity investments. Market 
research and analysis specific to each business sector and uniform

[[Page 51591]]

underwriting standards will drive the precise financing terms and 
equity contributions of participating businesses to ensure that 
assistance is based on actual identified need. For example, the water/
wastewater product that the ERB will offer requires for-profit 
applicants to provide an equity contribution of 10 percent of total 
project cost, while there is no equity contribution for public or non-
profit facilities. Accordingly, HUD is requiring the State to establish 
policies and procedures to ensure that the CDBG-DR funds invested in 
ERB projects reflect the actual identified financing needs of the 
assisted businesses, while also ensuring a robust return to the ERB to 
finance future investments.
    Based on the critical role that the ERB will fulfill in ensuring 
long-term resiliency within Sandy-impacted New Jersey communities and 
for only those activities funded by the ERB as described in the State's 
approved disaster recovery Action Plan Amendment, the Department is 
waiving the alternative requirement in the March 5, 2013, notice and 
subsequent notices that prohibit funding businesses that do not meet 
the SBA definition of small business and funding of private utilities, 
subject to the following alternative requirements. As a condition of 
this waiver the State must:
     Provide preferential treatment to LMI areas and 
populations in its ERB scoring methodology;
     Require an equity contribution for for-profit critical 
facilities, the amount of which is to be based on uniform underwriting 
standards developed by the State and uniformly applied to all such 
facilities, to ensure that the level of assistance provided to these 
facilities addresses only the actual identified needs of the project; 
and
     Establish a mix of financing terms (loan, forgivable loan, 
and/or grant) for each assisted for-profit facility, based on the 
business's financial capacity, in order to ensure that assistance is 
based on actual identified need, in order to achieve a targeted use of 
funds and to safeguard against the potential over-subsidization of for-
profit facilities.
    This waiver allows the State to add new potential beneficiaries to 
the activity described within its amended Action Plan for disaster 
recovery. This change will constitute a substantial amendment as 
described in the March 5, 2013, notice (78 FR 14329) at paragraph 
VI.A.3.a. Accordingly, the State must submit a Substantial Action Plan 
Amendment revising its description of the ERB to include affected 
entities, and this amendment will be subject to the citizen 
participation requirements of the March 5, 2013, notice at VI.A.3, 
which requires no less than 7 calendar days to solicit public comment.
    3. Extension of Urgent Need Certification Waiver for ERB activities 
(State of New Jersey only)--The March 5, 2013, Federal Register notice 
waives the certification requirements for classifying activities as 
meeting the CDBG urgent need national objective until ``two years after 
the date HUD obligates funds to a grantee for the activity'' (paragraph 
VI.A.1.f, Use of the urgent need national objective, at 78 FR 14336) 
and establishes an alternative requirement for grantees. That 
requirement provides that during the 2-year period, grantees must 
document how all programs and/or activities funded under the urgent 
need national objective category respond to a disaster-related impact. 
In its implementation of the Appropriations Act, HUD established the 2-
year limit on the use of this alternative certification requirement in 
response to grantees' historical use of this urgent need alternative 
certification requirement in previous disasters. The State of New 
Jersey has requested an extension of the urgent need national objective 
alternative certification requirement for the program income generated 
from its CDBG-DR grant and used to fund activities through its ERB 
program.
    HUD must obligate all funds under the Appropriations Act by 
September 30, 2017. Because grantees are required to expend program 
funds within 2-years following HUD's obligation of the funds, CDBG-DR 
funds used to finance ERB projects will automatically qualify under the 
2-year alternative urgent need certification requirement. The State, 
however, intends to apply program income generated through ERB projects 
to additional ERB projects and may also apply program income from its 
other CDBG-DR programs to the ERB, beyond the 2-year period of the 
alternative urgent need certification requirement. The State has 
requested authority to use the alternative urgent need certification 
requirement; for the life of the CDBG-DR grant, for program income 
applied to the ERB. Without this extension, funds critical to the 
performance of the ERB could not be classified as meeting the urgent 
need national objective and program participants may be unable to raise 
necessary private capital for critical energy resilience projects. 
Providing this flexibility for ERB-financed projects will allow the 
projects to be implemented following the obligation of all CDBG-DR 
funds to the ERB and until the State has closed out its CDBG-DR Sandy 
recovery grant.
    Therefore, until grant closeout and for only program income used to 
fund ERB activities, HUD is permitting the State of New Jersey, when 
the use of the urgent need national objective is warranted, to document 
the use of the urgent need national objective by applying the waiver 
and alternative requirement regarding urgent need at paragraph 
VI.A.1.f. of the March 5, 2013, notice (78 FR 14336). The program 
income requirements described in paragraphs A.2 and A.17 of section VI 
of the March 5, 2013, notice (78 FR 14336) will continue to apply.
    4. Extension of 1-year time limitation on reimbursable pre-award 
expenses (State of New Jersey only)--Grantees in receipt of funds under 
the Appropriations Act are subject to the limitations on the 
reimbursement of pre-award disaster recovery expenses as provided for 
in CPD Notice 2014-017 (``Guidance for Charging Pre-Award Costs of 
Homeowners, Businesses, and Other Qualifying Entities to CDBG Disaster 
Recovery Grants'') (the CPD Notice),\3\ as may be amended, and the 
November 18, 2014, notice at section VI, paragraph 5, which requires 
grantees to comply with the provisions of the CPD Notice. The CPD 
Notice states that grantees may ``charge to CDBG-DR grants the eligible 
pre-award and pre-application costs of individuals and private entities 
related to single- and multi-family residential structures and 
nonresidential structures, only if the person or private entity 
incurred the expenses within 1-year after the date of the disaster and 
before the date on which the person or entity applies for CDBG-DR 
assistance.'' The State of New Jersey has requested an extension of 
this 1-year limitation for applicants to its LMI Homeowners Rebuilding 
Program in order to provide reimbursement for rehabilitation and 
reconstruction expenses incurred by LMI homeowners who incurred such 
expenses after this time limit and before applying to the program for 
Federal assistance.
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    \3\ https://www.hudexchange.info/resource/4139/notice-cpd14017-
guidance-for-charging-preaward-costs--to-cdbg-disaster-recovery-
grants.
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    The State of New Jersey implemented the LMI Homeowners Rebuilding 
Program pursuant to a VCA with the Department, which was executed on 
May 30, 2014. The VCA was established in response to a complaint filed 
by civil rights and fair housing organizations regarding the State's 
administration of its CDBG-DR funded recovery programs. The VCA 
required the State to implement the LMI Homeowners Rebuilding Program 
more than 1-year after the 1-year, post-disaster time

[[Page 51592]]

limitation established in the CPD Notice. As a result, any 
rehabilitation expenses incurred by applicants to the program after the 
1-year date would be ineligible for reimbursement. Without an extension 
of the 1-year limitation, the State would be limited in its ability to 
comply with the requirements of the VCA and to provide necessary 
housing assistance to LMI homeowners.
    Accordingly, based on the critical role of the LMI Homeowner 
Rebuilding Program in providing housing recovery assistance to LMI 
residents and for only those applicants assisted through the State's 
LMI Homeowners Rebuilding Program, the Department is extending the date 
by which grantees may reimburse expenses incurred by applicants to the 
date of application to the LMI Homeowners Rebuilding Program, provided 
such expenses would otherwise be eligible expenses.
    5. Waiver of Major Infrastructure Project (Covered Project) 
requirements for projects in multiple counties (New York City only)--
The Federal Register notice published November 18, 2013, describes 
additional infrastructure requirements, including requirements placed 
on Covered Projects (paragraph VI.2.g., Additional Requirements for 
Major Infrastructure Projects, at 78 FR 69107). HUD approval is 
required for each major infrastructure project with such projects 
defined as having a total cost of $50 million or more (including at 
least $10 million of CDBG-DR funds), or projects that benefit multiple 
counties. The Federal Register notice published on March 27, 2014, 
clarified that ``benefits multiple counties'' means that the project is 
physically located in more than one county (paragraph II.1.a., 
Definition of ``Benefits Multiple Counties,'' at 78 FR 17174). New York 
City has requested exemption from the major infrastructure requirements 
for projects located in multiple counties and exclusively within the 
city, where they otherwise would not meet the definition of a major 
infrastructure project.
    New York City is composed of five counties (which are coterminous 
with its five boroughs) that are subordinate to the municipal 
government, and the city's authority precludes the need for due 
consideration of the counties' response. Requiring the city to adhere 
to the Department's requirements for major infrastructure projects in 
such cases would impose additional and unnecessary standards for 
relatively small projects that do not warrant the level of scrutiny 
triggered by the requirements. Accordingly, for purposes of identifying 
major infrastructure projects that are held to the requirements of the 
notice published November 18, 2013, and any subsequent notice that 
includes provisions for major infrastructure projects, HUD is providing 
New York City a waiver of the major infrastructure identification 
criteria to exclude projects located in multiple counties that are 
located exclusively within the city, only where the project would not 
otherwise meet the definition of a major infrastructure project by 
exceeding the total cost thresholds described above.
    6. Waiver of requirements for housing rehabilitation activities for 
Breezy Point Flood Mitigation System (New York City only)--New York 
City has requested a waiver of 24 CFR 570.202(a)(1) to the extent 
necessary to permit new construction of a flood mitigation system at 
Breezy Point, a privately held cooperative in Queens, by classifying 
the entire system as an improvement for residential purposes.
    Under the CDBG Entitlement Program regulations, which are 
applicable to units of local government, New York City may use CDBG-DR 
funds to finance the rehabilitation of privately owned buildings and 
improvements for residential purposes, including grounds improvements 
that are incidental to and necessary for housing rehabilitation. This 
housing rehabilitation provision does not permit the city to construct 
a new flood mitigation system that improves the grounds of a privately 
held cooperative that benefits an entire community. The community's 
unique status as a cooperative on a single property lot also precludes 
the city from funding the activity as an eligible public facility and 
improvement under the CDBG regulations at 24 CFR 570.201(c).
    The flood mitigation system proposed for Breezy Point will provide 
critical protection to CDBG-DR home rehabilitation investments as well 
as investments from other Federal partners, and it will improve 
waterfronts damaged by Hurricane Sandy. The city has determined that 
the system is necessary to permit long-term disaster recovery from 
Hurricane Sandy for the Breezy Point community. Thus, the city has 
requested the ability to construct the project as part of its CDBG-DR 
housing rehabilitation and reconstruction efforts in the community.
    The city is seeking $58.2 million to construct this system from 
FEMA's Hazard Mitigation Grant Program (HMGP), which requires a 25-
percent, local match or $14.55 million that may potentially be sourced 
from the city's CDBG-DR grant. The community provides year-round 
residency to 4,300 people and consists of 2,400 homes, nearly all of 
which were damaged during Hurricane Sandy. The city and community, with 
State and Federal partners, has worked to rehabilitate homes and 
reconstruct the community. Federal investments in housing 
rehabilitation total approximately $450 million, including National 
Flood Insurance Program policy payments, SBA loans, FEMA Individual 
Assistance grants, the city's Rapid Repair grants, and CDBG-DR grants 
through the city's NYC Build it Back Program. The NYC Build it Back 
Program alone is projected to provide $200 million in housing 
rehabilitation assistance to households in the area, including $80 
million in assistance to approximately 400 low- or moderate-income 
households. Without a provision to allow this flood mitigation 
improvement, Federal investments as well as numerous private and public 
interests would be exposed to flooding during major flood events and if 
sea levels rise. A Benefit-Cost Analysis conducted by the city 
identified a reduction in expected annual flood damages to the 
community of between 50 percent and 98 percent as a result of this 
project. In addition, according to the city, the protection that this 
project will provide has the potential to lower flood insurance 
premiums for structures in the neighborhood in the event of the 
revision of FEMA's area Flood Insurance Study (FIS) and the effective 
Base Flood Elevation.
    Therefore, for the city's Breezy Point Flood Mitigation System 
only, the Department is waiving 24 CFR 570.202(a)(1) to the extent 
necessary to allow for the city's Breezy Point Flood Mitigation System 
to be classified as an eligible housing rehabilitation and preservation 
activity. Further, the Department is waiving section 105(a)4 of the HCD 
Act to the extent necessary to allow for the new construction 
associated with this activity that would otherwise be prohibited.

III. Catalog of Federal Domestic Assistance

    The Catalog of Federal Domestic Assistance number for the disaster 
recovery grants under this notice is 4.269.

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 for public inspection between 8 a.m. and 5 p.m., weekdays, in 
the Regulations Division, Office of General Counsel,

[[Page 51593]]

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). Hearing-or speech-impaired 
individuals may access this number through TTY by calling the Federal 
Relay Service at 800-877-8339 (this is a toll-free number).

    Dated: August 19, 2015.
Laura H. Hogshead,
Chief Operating Officer for Office of the Secretary.
[FR Doc. 2015-21065 Filed 8-24-15; 8:45 am]
BILLING CODE 4210-67-P