80_FR_51753 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

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)

Page Range51589-51593
FR Document2015-21065

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 Issue 164 (Tuesday, August 25, 2015)
[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 disaster_recovery@hud.gov.

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



                                                                                 Federal Register / Vol. 80, No. 164 / Tuesday, August 25, 2015 / Notices                                           51589

                                                      Status of the proposed information                    II. Applicable Rules, Statutes, Waivers, and          provision of any statute or regulation
                                                    collection: This is an extension of a                         Alternative Requirements                        that the Secretary administers in
                                                    currently approved collection.                          III. Catalog of Federal Domestic Assistance           connection with HUD’s obligation or
                                                                                                            IV. Finding of No Significant Impact                  use by the recipient of these funds
                                                      Authority: The Paperwork Reduction Act
                                                    of 1995, 44 U.S.C., Chapter 35, as amended.             I. Background                                         (except for requirements related to fair
                                                                                                                                                                  housing, nondiscrimination, labor
                                                      Dated: August 13, 2015.                                  The Appropriations Act (Pub. L. 113–
                                                                                                                                                                  standards, and the environment).
                                                    Janet M. Golrick,                                       2, approved January 29, 2013) made
                                                                                                                                                                  Waivers and alternative requirements
                                                    Associate General Deputy Assistant Secretary            available $16 billion in Community
                                                                                                                                                                  are based upon a determination by the
                                                    for Housing-Associate Deputy Federal                    Development Block Grant disaster
                                                                                                                                                                  Secretary that good cause exists and that
                                                    Housing Commissioner.                                   recovery (CDBG–DR) funds for
                                                                                                                                                                  the waiver or alternative requirement is
                                                    [FR Doc. 2015–20925 Filed 8–24–15; 8:45 am]             necessary expenses related to disaster                not inconsistent with the overall
                                                    BILLING CODE 4210–67–P                                  relief, long-term recovery, restoration of            purposes of Title I of the Housing and
                                                                                                            infrastructure and housing, and                       Community Development Act of 1974
                                                                                                            economic revitalization in the most                   (42 U.S.C. 5301 et seq.) (HCD Act).
                                                    DEPARTMENT OF HOUSING AND                               impacted and distressed areas, resulting              Regulatory waiver authority is also
                                                    URBAN DEVELOPMENT                                       from a major disaster declared pursuant               provided by 24 CFR 5.110, 91.600, and
                                                    [Docket No. FR–5696–N–16]
                                                                                                            to the Robert T. Stafford Disaster Relief             570.5.
                                                                                                            and Emergency Assistance Act of 1974                     For the waivers and alternative
                                                    Additional Clarifying Guidance,                         (42 U.S.C. 5121 et. seq.) (Stafford Act),             requirements described in this notice,
                                                    Waivers, and Alternative Requirements                   due to Hurricane Sandy and other                      the Secretary has determined that good
                                                    for Grantees in Receipt of Community                    eligible events in calendar years 2011,               cause exists and that the waivers and
                                                    Development Block Grant Disaster                        2012, and 2013. On March 1, 2013, the                 alternative requirements are not
                                                    Recovery Funds Under the Disaster                       President issued a sequestration order                inconsistent with the overall purpose of
                                                    Relief Appropriations Act, 2013                         pursuant to Section 251A of the                       the HCD Act. Grantees may request
                                                                                                            Balanced Budget and Emergency Deficit                 waivers and alternative requirements
                                                    AGENCY:  Office of the Assistant                        Control Act, as amended (2 U.S.C.                     from the Department as needed to
                                                    Secretary for Community Planning and                    901a), and reduced the amount of                      address specific needs related to their
                                                    Development, HUD.                                       funding for CDBG–DR grants under the                  recovery activities. Under the
                                                    ACTION: Notice.                                         Appropriations Act to $15.18 billion. To              requirements of the Appropriations Act,
                                                                                                            date, a total of $15.18 billion has been              waivers must be published in the
                                                    SUMMARY:    This notice provides
                                                                                                            allocated or set aside: $13 billion in                Federal Register no later than 5 days
                                                    clarifying guidance, waivers, and
                                                                                                            response to Hurricane Sandy, $514                     before the effective date of such waiver.
                                                    alternative requirements for Community
                                                                                                            million in response to disasters                         1. Exemptions from Infrastructure
                                                    Development Block Grant Disaster
                                                                                                            occurring in 2011 or 2012, $655 million               Program and Project Requirements—
                                                    Recovery grantees in receipt of funds
                                                                                                            in response to 2013 disasters, and $1                 Obligated Assistance from Federal
                                                    under the Disaster Relief Appropriations
                                                                                                            billion set aside for the National                    Grant Program Projects and Completed
                                                    Act, 2013 (the Appropriations Act). This
                                                                                                            Disaster Resilience Competition.                      Projects—(Hurricane Sandy Grantees
                                                    notice modifies requirements for                           This notice specifies a waiver and                 only). The March 27, 2014, Federal
                                                    infrastructure projects funded by                       alternative requirements and modifies                 Register notice, at paragraph II.1.b.,
                                                    grantees receiving an allocation for                    requirements for Hurricane Sandy                      Obligated Public Assistance Grant
                                                    Hurricane Sandy. This notice also                       grantees in receipt of allocations under              Program Projects (78 FR 17174),
                                                    provides waivers and alternative                        the Appropriations Act, which are                     provides an exemption from certain
                                                    requirements for the State of New                       described within the Federal Register                 infrastructure requirements described in
                                                    Jersey’s Energy Resilience Bank and LMI                 notices published by the Department on                paragraph 2 of the Federal Register
                                                    Homeowner Rebuilding Program, and                       March 5, 2013 (78 FR 14329), April 19,                notice published November 18, 2013, at
                                                    for New York City’s infrastructure                      2013 (78 FR 23578), August 2, 2013 (78                78 FR 69107, for those projects to which
                                                    projects and the Breezy Point Flood                     FR 46999), November 18, 2013 (78 FR                   the Federal Emergency Management
                                                    Mitigation System.                                      69104), March 27, 2014 (79 FR 17173),                 Agency (FEMA) had obligated Public
                                                    DATES: Effective Date: August 31, 2015.                 July 11, 2014 (79 FR 40133), October 16,              Assistance (PA) funds on or before
                                                    FOR FURTHER INFORMATION CONTACT:                        2014 (79 FR 62182), April 2, 2015 (80                 November 25, 2013. After consideration
                                                    Stanley Gimont, Director, Office of                     FR 17772), and May 11, 2015 (80 FR                    of the factors discussed below, HUD is
                                                    Block Grant Assistance, Department of                   26942), referred to collectively in this              now modifying this exemption. As of
                                                    Housing and Urban Development, 451                      notice as the ‘‘prior notices.’’ The                  the effective date of this notice, the
                                                    7th Street SW., Room 7286, Washington,                  requirements of the prior notices                     infrastructure requirements described in
                                                    DC 20410, telephone number 202–708–                     continue to apply, except as modified                 paragraph 2 at 78 FR 69107 will not
                                                    3587. Persons with hearing or speech                    by this notice.1                                      apply to an infrastructure project carried
                                                    impairments may access this number                                                                            out by a Hurricane Sandy CDBG–DR
                                                    via TTY by calling the Federal Relay                    II. Applicable Rules, Statutes, Waivers,              grantee if FEMA or any other Federal
                                                    Service at 800–877–8339. Facsimile                      and Alternative Requirements                          agency has obligated funds to that
                                                    inquiries may be sent to Mr. Gimont at                     The Appropriations Act authorizes                  infrastructure project on or before
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                                                    202–401–2044. (Except for the ‘‘800’’                   the Secretary to waive, or specify                    January 15, 2014, or if the infrastructure
                                                    number, these telephone numbers are                     alternative requirements for, any                     project was completed on or before
                                                    not toll-free.) Email inquiries may be                                                                        January 15, 2014.
                                                    sent to disaster_recovery@hud.gov.                        1 Links to the prior notices, the text of the          Oftentimes CDBG–DR grantees are
                                                    SUPPLEMENTARY INFORMATION:                              Appropriations Act, and additional guidance           awarded Federal recovery funds for
                                                                                                            prepared by the Department for CDBG–DR grants,
                                                                                                            are available on the HUD Exchange Web site:
                                                                                                                                                                  which CDBG–DR can be used as the
                                                    Table of Contents                                                                                             source for the required non-Federal
                                                                                                            https://www.hudexchange.info/cdbg-dr/cdbg-dr-
                                                    I. Background                                           laws-regulations-and-federal-register-notices/.       local match of funds. These Federal


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                                                    51590                        Federal Register / Vol. 80, No. 164 / Tuesday, August 25, 2015 / Notices

                                                    sources may include, but are not limited                businesses, including privately-owned                 Moreover, 438 of the State’s 617 long-
                                                    to, the Environmental Protection                        utilities, at 78 FR 14347). The State of              term care facilities and 95 of 170
                                                    Agency, the Federal Highway                             New Jersey has requested a waiver of                  institutions of higher learning are
                                                    Administration, the Federal                             the prohibition on assistance to                      operated as for-profit entities and do not
                                                    Transportation Administration, the                      businesses that do not meet the SBA                   meet the small business criteria. The
                                                    Army Corps of Engineers, and the                        definition of a small business and the                State also anticipates funding private
                                                    FEMA Public Assistance and Hazard                       prohibition on assistance to privately-               utilities, such as private water districts,
                                                    Mitigation grant programs. Such grant                   owned utilities for its planned $200                  which serve the needs of their regional
                                                    assistance can be used for a variety of                 million CDBG–DR investment in the                     populations in the same manner as
                                                    activities and often requires grantees to               New Jersey Energy Resilience Bank                     public utilities.
                                                    contribute a non-Federal share of funds                 (ERB).                                                   These facilities often serve
                                                    to a project. If the project is an eligible                The Department approved the ERB in                 communities most impacted by
                                                    CDBG–DR activity, CDBG–DR funds                         the State’s disaster recovery Action Plan             Hurricane Sandy, having high
                                                    may be used for the payment of the non-                 for the second allocation of CDBG–DR                  concentrations of low- and moderate-
                                                    Federal share required in connection                    funds under the Appropriations Act on                 income (LMI) persons, and they provide
                                                    with a Federal grant-in-aid program if                  May 30, 2014.2 The State has committed                essential services to vulnerable
                                                    permitted by the Federal awarding                       to using the ERB to harden critical                   populations that are comparable to their
                                                    agency that required the match (see 24                  facilities to ensure they remain                      public and non-profit counterparts.
                                                    CFR 570.201(g) and 42 U.S.C.                            operational during storm events through               Without a waiver of the restrictions on
                                                    5305(a)(9)) .                                           the use of distributed energy generation,             assistance to certain types of businesses,
                                                       Prior to HUD’s November 18, 2013,                    such as combined heat and power, fuel                 many of these critical facilities would be
                                                    notice, many grantees had coordinated                   cells, and off-grid solar inverters with              ineligible for funding, leaving large gaps
                                                    with Federal agencies to secure funding                 battery storage. Eligible technologies                in the State’s regional distributed energy
                                                    for critical infrastructure projects, but               must be constructed to operate                        networks and excluding significant
                                                    only upon establishment of the Sandy                    independently from the electric utility               populations (including LMI persons)
                                                    Recovery Office and the launch of the                   grid and be able to start up without a                from benefiting from the State’s
                                                    Regional Coordination Working Group                     direct connection to the electric grid                resiliency measures.
                                                    (now known as the Sandy Regional                        when the grid is down due to extreme                     While not every critical facility will
                                                    Infrastructure Resilience Coordination                  weather events. The ERB will focus on                 serve predominantly LMI populations,
                                                    Group or SRIRC Group), in January                       funding critical facilities in sectors that           vulnerable residents typically rely more
                                                    2014, would grantees have been able to                  were impacted by Hurricane Sandy,                     on community-based facilities and
                                                    comply with Federal coordination                        including water and wastewater                        services, especially in disaster
                                                    requirements outlined in the November                   treatment plants, hospitals and long-                 scenarios. To the extent that the ERB
                                                    18, 2013 notice. In addition, grantees                  term care facilities, colleges and                    will be funding such facilities and
                                                    may have completed infrastructure                       universities, state and county                        services, LMI populations would benefit
                                                    projects before the establishment of the                correctional facilities, HUD-assisted                 especially from the increased resiliency
                                                    requirements described in that notice at                multifamily housing units, community                  of critical infrastructure during the next
                                                    paragraph 2 at 78 FR 69107.                             shelters, and transportation and transit              storm event. Accordingly, as a condition
                                                       Accordingly, the clarification                       infrastructure.                                       of providing this waiver, HUD is
                                                    described in the March 27, 2014, notice                    The ERB aligns with the Hurricane                  requiring the State to develop a scoring
                                                    at paragraph II.1.b. is amended to read,                Sandy Rebuilding Strategy’s (the                      methodology for the selection of ERB
                                                    ‘‘Infrastructure requirements described                 Strategy) goal of ‘‘Ensuring a Regionally             projects that provides preferential
                                                    in paragraph 2 at 78 FR 69107 do not                    Coordinated, Resilient Approach to                    treatment to LMI areas and populations.
                                                    apply to any infrastructure project                     Infrastructure Investment,’’ and the                  The LMI benefit scoring methodology is
                                                    where funds have been obligated by a                    Strategy specifically references the ERB              to be designed to ensure continued
                                                    Federal agency under any federal grant-                 as a program developed by the State                   progress by the State in meeting its
                                                    in-aid program on or before January 15,                 with assistance from the Hurricane                    overall CDBG–DR grant LMI benefit
                                                    2014, or where a project funded through                 Sandy Rebuilding Task Force. The                      requirement and to ensure that, in
                                                    any means was completed on or before                    Strategy notes ‘‘most energy                          financing ERB projects, the State places
                                                    January 15, 2014.’’                                     infrastructure is privately-owned and                 a significant priority on serving LMI
                                                       2. Waiver of requirement for                         operated, which means that resilience                 areas and populations.
                                                    assistance to businesses, including                     investment will come about only                          In its request to the Department, the
                                                    privately-owned utilities for Energy                    through close cooperation between the                 State acknowledged that the ERB is not
                                                    Resilience Bank activities (State of New                Federal and State governments and the                 a substitute for private investment, but
                                                    Jersey only)—The Federal Register                       private sector.’’                                     is instead designed to leverage
                                                    notice published on March 5, 2013,                         Many of the facilities expected to                 additional private investment in
                                                    instituted an alternative requirement to                receive funding through the State’s ERB               resilient energy systems. The State has
                                                    various provisions at 42 U.S.C. 5305(a)                 provide critical public services but are              developed ERB financial products using
                                                    and restricts the assistance provided to                owned by a mix of public and for-profit               substantial market research and analysis
                                                    for-profit businesses to only those                     entities, or are solely privately owned,              to ensure that products are attractive to
                                                    businesses that meet the definition of a                                                                      consumers in the market, while also
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                                                                                                            and cannot be assisted under the current
                                                    small business as described by the                      prohibitions imposed by the March 5,                  generating proceeds for the ERB. The
                                                    Small Business Administration (SBA) at                  2013, notice. At least 20 of the 108                  State is also developing assistance
                                                    13 CFR part 121. That notice also                       potentially eligible hospital facilities are          packages that consist of variable
                                                    prohibited CDBG–DR grantees in receipt                  operated as for-profit entities and do not            contributions of loans, forgivable loans,
                                                    of funds under the Appropriations Act                   meet the small business criteria.                     and grants, with each product requiring
                                                    from providing funds to privatelyowned                                                                        varying levels of equity investments.
                                                    utilities (paragraph VI.D.41., Alternative                2 http://www.renewjerseystronger.org/plans-         Market research and analysis specific to
                                                    requirement for assistance to                           policies-reports/#cdbg.                               each business sector and uniform


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                                                                                 Federal Register / Vol. 80, No. 164 / Tuesday, August 25, 2015 / Notices                                                51591

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



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                                                    51592                        Federal Register / Vol. 80, No. 164 / Tuesday, August 25, 2015 / Notices

                                                    limitation established in the CPD                       requirements of the notice published                  during Hurricane Sandy. The city and
                                                    Notice. As a result, any rehabilitation                 November 18, 2013, and any subsequent                 community, with State and Federal
                                                    expenses incurred by applicants to the                  notice that includes provisions for major             partners, has worked to rehabilitate
                                                    program after the 1-year date would be                  infrastructure projects, HUD is                       homes and reconstruct the community.
                                                    ineligible for reimbursement. Without                   providing New York City a waiver of the               Federal investments in housing
                                                    an extension of the 1-year limitation, the              major infrastructure identification                   rehabilitation total approximately $450
                                                    State would be limited in its ability to                criteria to exclude projects located in               million, including National Flood
                                                    comply with the requirements of the                     multiple counties that are located                    Insurance Program policy payments,
                                                    VCA and to provide necessary housing                    exclusively within the city, only where               SBA loans, FEMA Individual Assistance
                                                    assistance to LMI homeowners.                           the project would not otherwise meet                  grants, the city’s Rapid Repair grants,
                                                       Accordingly, based on the critical role              the definition of a major infrastructure              and CDBG–DR grants through the city’s
                                                    of the LMI Homeowner Rebuilding                         project by exceeding the total cost                   NYC Build it Back Program. The NYC
                                                    Program in providing housing recovery                   thresholds described above.                           Build it Back Program alone is projected
                                                    assistance to LMI residents and for only                  6. Waiver of requirements for housing               to provide $200 million in housing
                                                    those applicants assisted through the                   rehabilitation activities for Breezy Point            rehabilitation assistance to households
                                                    State’s LMI Homeowners Rebuilding                       Flood Mitigation System (New York City                in the area, including $80 million in
                                                    Program, the Department is extending                    only)—New York City has requested a                   assistance to approximately 400 low- or
                                                    the date by which grantees may                          waiver of 24 CFR 570.202(a)(1) to the                 moderate-income households. Without a
                                                    reimburse expenses incurred by                          extent necessary to permit new                        provision to allow this flood mitigation
                                                    applicants to the date of application to                construction of a flood mitigation                    improvement, Federal investments as
                                                    the LMI Homeowners Rebuilding                           system at Breezy Point, a privately held              well as numerous private and public
                                                    Program, provided such expenses would                   cooperative in Queens, by classifying                 interests would be exposed to flooding
                                                    otherwise be eligible expenses.                         the entire system as an improvement for               during major flood events and if sea
                                                       5. Waiver of Major Infrastructure                    residential purposes.                                 levels rise. A Benefit-Cost Analysis
                                                    Project (Covered Project) requirements                    Under the CDBG Entitlement Program                  conducted by the city identified a
                                                    for projects in multiple counties (New                  regulations, which are applicable to                  reduction in expected annual flood
                                                    York City only)—The Federal Register                    units of local government, New York                   damages to the community of between
                                                    notice published November 18, 2013,                     City may use CDBG–DR funds to finance                 50 percent and 98 percent as a result of
                                                    describes additional infrastructure                     the rehabilitation of privately owned                 this project. In addition, according to
                                                    requirements, including requirements                    buildings and improvements for                        the city, the protection that this project
                                                    placed on Covered Projects (paragraph                   residential purposes, including grounds               will provide has the potential to lower
                                                    VI.2.g., Additional Requirements for                    improvements that are incidental to and               flood insurance premiums for structures
                                                    Major Infrastructure Projects, at 78 FR                 necessary for housing rehabilitation.                 in the neighborhood in the event of the
                                                    69107). HUD approval is required for                    This housing rehabilitation provision                 revision of FEMA’s area Flood
                                                    each major infrastructure project with                  does not permit the city to construct a               Insurance Study (FIS) and the effective
                                                    such projects defined as having a total                 new flood mitigation system that                      Base Flood Elevation.
                                                    cost of $50 million or more (including                  improves the grounds of a privately held                 Therefore, for the city’s Breezy Point
                                                    at least $10 million of CDBG–DR funds),                 cooperative that benefits an entire                   Flood Mitigation System only, the
                                                    or projects that benefit multiple                       community. The community’s unique                     Department is waiving 24 CFR
                                                    counties. The Federal Register notice                   status as a cooperative on a single                   570.202(a)(1) to the extent necessary to
                                                    published on March 27, 2014, clarified                  property lot also precludes the city from             allow for the city’s Breezy Point Flood
                                                    that ‘‘benefits multiple counties’’ means               funding the activity as an eligible public            Mitigation System to be classified as an
                                                    that the project is physically located in               facility and improvement under the                    eligible housing rehabilitation and
                                                    more than one county (paragraph II.1.a.,                CDBG regulations at 24 CFR 570.201(c).                preservation activity. Further, the
                                                    Definition of ‘‘Benefits Multiple                         The flood mitigation system proposed                Department is waiving section 105(a)4
                                                    Counties,’’ at 78 FR 17174). New York                   for Breezy Point will provide critical                of the HCD Act to the extent necessary
                                                    City has requested exemption from the                   protection to CDBG–DR home                            to allow for the new construction
                                                    major infrastructure requirements for                   rehabilitation investments as well as                 associated with this activity that would
                                                    projects located in multiple counties                   investments from other Federal                        otherwise be prohibited.
                                                    and exclusively within the city, where                  partners, and it will improve
                                                    they otherwise would not meet the                       waterfronts damaged by Hurricane                      III. Catalog of Federal Domestic
                                                    definition of a major infrastructure                    Sandy. The city has determined that the               Assistance
                                                    project.                                                system is necessary to permit long-term                  The Catalog of Federal Domestic
                                                       New York City is composed of five                    disaster recovery from Hurricane Sandy                Assistance number for the disaster
                                                    counties (which are coterminous with                    for the Breezy Point community. Thus,                 recovery grants under this notice is
                                                    its five boroughs) that are subordinate to              the city has requested the ability to                 4.269.
                                                    the municipal government, and the                       construct the project as part of its
                                                    city’s authority precludes the need for                 CDBG–DR housing rehabilitation and                    IV. Finding of No Significant Impact
                                                    due consideration of the counties’                      reconstruction efforts in the community.                A Finding of No Significant Impact
                                                    response. Requiring the city to adhere to                 The city is seeking $58.2 million to                (FONSI) with respect to the
                                                    the Department’s requirements for major                 construct this system from FEMA’s                     environment has been made in
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                                                    infrastructure projects in such cases                   Hazard Mitigation Grant Program                       accordance with HUD regulations at 24
                                                    would impose additional and                             (HMGP), which requires a 25-percent,                  CFR part 50, which implement section
                                                    unnecessary standards for relatively                    local match or $14.55 million that may                102(2)(C) of the National Environmental
                                                    small projects that do not warrant the                  potentially be sourced from the city’s                Policy Act of 1969 (42 U.S.C.
                                                    level of scrutiny triggered by the                      CDBG–DR grant. The community                          4332(2)(C)). The FONSI is available for
                                                    requirements. Accordingly, for purposes                 provides year-round residency to 4,300                public inspection between 8 a.m. and 5
                                                    of identifying major infrastructure                     people and consists of 2,400 homes,                   p.m., weekdays, in the Regulations
                                                    projects that are held to the                           nearly all of which were damaged                      Division, Office of General Counsel,


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                                                                                 Federal Register / Vol. 80, No. 164 / Tuesday, August 25, 2015 / Notices                                                 51593

                                                    Department of Housing and Urban                         SUPPLEMENTARY INFORMATION:    This                      Dated: August 19, 2015.
                                                    Development, 451 7th Street SW., Room                   notice informs the public that HUD is                 Colette Pollard,
                                                    10276, Washington, DC 20410–0500.                       seeking approval from OMB for the                     Department Reports Management Officer,
                                                    Due to security measures at the HUD                     information collection described in                   Office of the Chief Information Officer.
                                                    Headquarters building, an advance                       Section A.                                            [FR Doc. 2015–20923 Filed 8–24–15; 8:45 am]
                                                    appointment to review the docket file                     The Federal Register notice that                    BILLING CODE 4210–67–P
                                                    must be scheduled by calling the                        solicited public comment on the
                                                    Regulations Division at 202–708–3055                    information collection for a period of 60
                                                    (this is not a toll-free number). Hearing-              days was published on June 30, 2015 at                DEPARTMENT OF HOUSING AND
                                                    or speech-impaired individuals may                      80 FR 37282.                                          URBAN DEVELOPMENT
                                                    access this number through TTY by
                                                    calling the Federal Relay Service at 800–               A. Overview of Information Collection                 [Docket No. FR–5831–N–40]
                                                    877–8339 (this is a toll-free number).                    Title of Information Collection:
                                                      Dated: August 19, 2015.
                                                                                                                                                                  30-Day Notice of Proposed Information
                                                                                                            Insurance Termination Request for
                                                                                                                                                                  Collection: Section 3 Summary Report
                                                    Laura H. Hogshead,                                      Multifamily Mortgage.
                                                                                                                                                                  for Economic Opportunities for Low
                                                    Chief Operating Officer for Office of the                 OMB Approval Number: 2502–0416.                     and Very Low Income Persons (Form
                                                    Secretary.
                                                                                                              Type of Request: Revision of currently              HUD 60002) and Section 3 Complaint
                                                    [FR Doc. 2015–21065 Filed 8–24–15; 8:45 am]
                                                                                                            approved collection.                                  Register (Form HUD 958)
                                                    BILLING CODE 4210–67–P
                                                                                                              Form Numbers: HUD–9807.                             AGENCY:  Office of the Chief Information
                                                                                                              Description of the need for the                     Officer, HUD.
                                                    DEPARTMENT OF HOUSING AND                               information and proposed use: The                     ACTION: Notice.
                                                    URBAN DEVELOPMENT                                       information collection is used to notify
                                                                                                            HUD that the mortgagor and mortgagee                  SUMMARY:   HUD has submitted the
                                                    [Docket No. FR–5831–N–41]
                                                                                                            mutually agree to terminate the HUD                   proposed information collection
                                                    30-Day Notice of Proposed Information                   multifamily mortgage insurance.                       requirement described below to the
                                                    Collection: Insurance Termination                         Respondents: Business or other for-                 Office of Management and Budget
                                                    Request for Multifamily Mortgage                        profit.                                               (OMB) for review, in accordance with
                                                                                                              Estimated Number of Respondents:                    the Paperwork Reduction Act. The
                                                    AGENCY:  Office of the Chief Information                                                                      purpose of this notice is to allow for an
                                                    Officer, HUD.                                           1891.
                                                                                                                                                                  additional 30 days of public comment.
                                                    ACTION: Notice.                                           Estimated Number of Responses:
                                                                                                                                                                  DATES: Comments Due Date: September
                                                                                                            1891.
                                                    SUMMARY:    HUD has submitted the                                                                             24, 2015.
                                                                                                              Frequency of Response: 1.
                                                    proposed information collection                                                                               ADDRESSES: Interested persons are
                                                    requirement described below to the                        Average Hours per Response: 25.                     invited to submit comments regarding
                                                    Office of Management and Budget                           Total Estimated Burdens: 473 hours.                 this proposal. Comments should refer to
                                                    (OMB) for review, in accordance with                    B. Solicitation of Public Comment                     the proposal by name and/or OMB
                                                    the Paperwork Reduction Act. The                                                                              Control Number and should be sent to:
                                                    purpose of this notice is to allow for an                 This notice is soliciting comments                  HUD Desk Officer, Office of
                                                    additional 30 days of public comment.                   from members of the public and affected               Management and Budget, New
                                                    DATES: Comments Due Date: September                     parties concerning the collection of                  Executive Office Building, Washington,
                                                    24, 2015.                                               information described in Section A on                 DC 20503; fax: 202–395–5806. Email:
                                                    ADDRESSES: Interested persons are                       the following:                                        OIRA_Submission@omb.eop.gov.
                                                    invited to submit comments regarding                      (1) Whether the proposed collection                 FOR FURTHER INFORMATION CONTACT:
                                                    this proposal. Comments should refer to                 of information is necessary for the                   Colette Pollard, Reports Management
                                                    the proposal by name and/or OMB                         proper performance of the functions of                Officer, QDAM, Department of Housing
                                                    Control Number and should be sent to:                   the agency, including whether the                     and Urban Development, 451 7th Street
                                                    HUD Desk Officer, Office of                             information will have practical utility;              SW., Washington, DC 20410; email
                                                    Management and Budget, New                                (2) The accuracy of the agency’s                    Colette Pollard at Colette.Pollard@
                                                    Executive Office Building, Washington,                  estimate of the burden of the proposed                hud.gov or telephone 202–402–3400.
                                                    DC 20503; fax: 202–395–5806. Email:                     collection of information;                            This is not a toll-free number. Persons
                                                    OIRA_Submission@omb.eop.gov.                                                                                  with hearing or speech impairments
                                                                                                              (3) Ways to enhance the quality,
                                                    FOR FURTHER INFORMATION CONTACT:                                                                              may access this number through TTY by
                                                                                                            utility, and clarity of the information to
                                                    Colette Pollard, Reports Management                                                                           calling the toll-free Federal Relay
                                                                                                            be collected; and
                                                    Officer, QDAM, Department of Housing                                                                          Service at (800) 877–8339. Copies of
                                                                                                              (4) Ways to minimize the burden of                  available documents submitted to OMB
                                                    and Urban Development, 451 7th Street
                                                                                                            the collection of information on those                may be obtained from Ms. Pollard.
                                                    SW., Washington, DC 20410; email
                                                                                                            who are to respond, including through                 SUPPLEMENTARY INFORMATION: This
                                                    Colette Pollard at Colette Pollard@hud
                                                                                                            the use of appropriate automated                      notice informs the public that HUD is
                                                    or telephone 202–402–3400. This is not
asabaliauskas on DSK5VPTVN1PROD with NOTICES




                                                                                                            collection techniques or other forms of               seeking approval from OMB for the
                                                    a toll-free number. Persons with hearing
                                                                                                            information technology, e.g., permitting              information collection described in
                                                    or speech impairments may access this
                                                                                                            electronic submission of responses.                   Section A.
                                                    number through TTY by calling the toll-
                                                    free Federal Relay Service at (800) 877–                  HUD encourages interested parties to                  The Federal Register notice that
                                                    8339.                                                   submit comment in response to these                   solicited public comment on the
                                                       Copies of available documents                        questions.                                            information collection for a period of 60
                                                    submitted to OMB may be obtained                          Authority: Section 3507 of the Paperwork            days was published on June 17, 2015 at
                                                    from Ms. Pollard.                                       Reduction Act of 1995, 44 U.S.C. Chapter 35.          80 FR 34687.


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Document Created: 2018-02-23 11:02:25
Document Modified: 2018-02-23 11:02:25
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
ActionNotice.
DatesEffective Date: August 31, 2015.
ContactStanley 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]
FR Citation80 FR 51589 

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