80_FR_72324 80 FR 72102 - Guidance, Waivers, and Alternative Requirements for Grantees in Receipt of Community Development Block Grant Disaster Recovery Funds Under Public Law 113-2: “Buyout” and “Acquisition” Activities; Assistance to Agricultural Enterprises; and State of Colorado Waiver for Tourism Promotion

80 FR 72102 - Guidance, Waivers, and Alternative Requirements for Grantees in Receipt of Community Development Block Grant Disaster Recovery Funds Under Public Law 113-2: “Buyout” and “Acquisition” Activities; Assistance to Agricultural Enterprises; and State of Colorado Waiver for Tourism Promotion

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Federal Register Volume 80, Issue 222 (November 18, 2015)

Page Range72102-72105
FR Document2015-29487

This notice provides clarifying guidance for Community Development Block Grant disaster recovery (CDBG-DR) grantees in receipt of funds under the Disaster Relief Appropriations Act, 2013 (the Appropriations Act). It provides clarification regarding the requirements of ``buyout'' activities authorized in the Department's March 5, 2013, Federal Register notice and expands the eligibility criteria for buyout activities to include ``Disaster Risk Reduction Areas'' as defined by the grantee. It also modifies requirements of the March 5, 2013, notice on the prohibition of assistance to businesses that do not meet the Small Business Administration (SBA) definition of small businesses, permitting assistance also to eligible businesses engaged in ``farming operations,'' as determined by the U.S. Department of Agriculture (USDA). This notice also provides a waiver to the State of Colorado to expend additional CDBG-DR funds and to assist additional communities impacted by declared disasters in 2011, 2012, and 2013, through tourism promotion activities previously authorized in the Department's June 3, 2014, notice.

Federal Register, Volume 80 Issue 222 (Wednesday, November 18, 2015)
[Federal Register Volume 80, Number 222 (Wednesday, November 18, 2015)]
[Notices]
[Pages 72102-72105]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-29487]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5696-N-17]


Guidance, Waivers, and Alternative Requirements for Grantees in 
Receipt of Community Development Block Grant Disaster Recovery Funds 
Under Public Law 113-2: ``Buyout'' and ``Acquisition'' Activities; 
Assistance to Agricultural Enterprises; and State of Colorado Waiver 
for Tourism Promotion

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

ACTION: Notice.

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SUMMARY: This notice provides clarifying guidance for Community 
Development Block Grant disaster recovery (CDBG-DR) grantees in receipt 
of funds under the Disaster Relief Appropriations Act, 2013 (the 
Appropriations Act). It provides clarification regarding the 
requirements of ``buyout'' activities authorized in the Department's 
March 5, 2013, Federal Register notice and expands the eligibility 
criteria for buyout activities to include ``Disaster Risk Reduction 
Areas'' as defined by the grantee. It also modifies requirements of the 
March 5, 2013, notice on the prohibition of assistance to businesses 
that do not meet the Small Business Administration (SBA) definition of 
small businesses, permitting assistance also to eligible businesses 
engaged in ``farming operations,'' as determined by the U.S. Department 
of Agriculture (USDA). This notice also provides a waiver to the State 
of Colorado to expend additional CDBG-DR funds and to assist additional 
communities impacted by declared disasters in 2011, 2012, and 2013, 
through tourism promotion activities previously authorized in the 
Department's June 3, 2014, notice.

DATES: Effective Date: November 23, 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. Facsimiled inquiries may be sent to Mr. Gimont at 202-401-2044. 
(Except for the ``800'' number, these telephone numbers are not toll-
free.) Emailed 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 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 for the National Disaster 
Resilience Competition.
    This notice applies to 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); May 29, 2013 (78 FR 32262); August 2, 
2013 (78 FR 46999); November 18, 2013 (78 FR 69104); December 16, 2013 
(78 FR 76154); March 27, 2014 (79 FR 17173); June 3, 2014 (79 FR 
31964); July 11, 2014 (79 FR 40133); October 7, 2014 (79 FR 60490); 
October 16, 2014 (79 FR 62182); January 8, 2015 (80 FR 1039); April 2, 
2015 (80 FR 17772); May 11, 2015 (80 FR 26942); and August 25, 2015 (80 
FR 51589) 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 (Including Clarifying Guidance), 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 waiver and alternative requirements described in this 
notice, the Secretary has determined that good cause exists and that 
the waiver 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. Acquisition of Real Property and Buyouts Outside of Floodplains

    In response to a request from the State of Colorado, HUD is 
authorizing grantees in receipt of CDBG-DR funds under the 
Appropriations Act to acquire property for an amount equal to either 
the property's pre-disaster or post-disaster value (formerly referenced 
in the prior notices as pre- and post-flood values), for the buyout of 
properties in ``Disaster Risk Reduction Areas'' as defined by criteria 
established by the grantee, subject to the limitations of this notice.
    The Department has previously authorized CDBG-DR grantees to carry 
out buyout programs in floodways or floodplains, by allowing grantees 
to offer to acquire properties in hazardous

[[Page 72103]]

flood areas at pre-flood or post-flood value. The Secretary authorized 
this type of acquisition to: (1) Reduce the risk to homeowners from the 
effects of subsequent disasters; (2) assist in the recovery of low- and 
moderate-income households; and (3) protect taxpayer resources that 
might otherwise be needed after future disasters in the same area.
    In previous notices, HUD referred to ``flood buyouts'' and 
recognized that grantees frequently used CDBG-DR funds to match funds 
for buyouts provided under section 404 of the Stafford Act, as amended. 
Section 404 empowers the Director of the Federal Emergency Management 
Agency (FEMA) to provide property acquisition and relocation assistance 
``in providing hazard mitigation assistance under this section in 
connection with flooding . . . .'' Since flooding is by far the most 
prevalent and predictable source of widespread destruction in a 
Presidentially declared disaster, the Department did not address the 
potential need to include other types of hazards. Large scale disasters 
have the potential to create or exacerbate hazards in areas located 
outside of a floodplain or floodway. For example, the wildfires that 
swept through Colorado in 2013 destroyed vegetation in many areas, 
creating erosion and affecting soil stability in a manner that now 
places many homes at risk for mudslides in future disasters, although 
those homes are not located in a floodplain or floodway.
    For the same reasons that buyouts in floodways and floodplains are 
permitted, HUD is amending its alternative requirement to expand the 
scope of authorized buyouts in the prior notices for grantees receiving 
CDBG-DR funds under the Appropriations Act. Accordingly, the definition 
of ``buyout'' in all prior notices is amended to mean ``acquisition of 
properties located in a floodway or floodplain that is intended to 
reduce risk from future flooding, or the acquisition of properties in 
`Disaster Risk Reduction Areas' located outside of floodways and 
floodplains for the purpose of reducing risks from the hazard that was 
the basis of the Disaster Risk Reduction Area designation. `Disaster 
Risk Reduction Areas' must be designated in accordance with the buyout 
requirements of applicable Federal Register Notices.''
    Recognizing that States and units of general local government 
(UGLGs) are best positioned to determine what constitutes an 
unacceptable risk to their communities in exercising this additional 
authority, grantees will need to establish criteria to designate a '' 
Disaster Risk Reduction Area,'' subject to the following requirements: 
(1) The hazard must have been caused or exacerbated by the 
Presidentially declared disaster for which the grantee received its 
CDBG-DR allocation; (2) The hazard must be a predictable environmental 
threat to the safety and well-being of program beneficiaries, as 
evidenced by the best available data and science; and (3) The Disaster 
Risk Reduction Area must be clearly delineated so that HUD and the 
public may easily determine which properties are located within the 
Disaster Risk Reduction Area.
    Once grantees have established criteria to designate a ``Disaster 
Risk Reduction Area,'' and designated a Disaster Risk Reduction Area in 
accordance with the established criteria, the grantee may conduct 
buyouts in the Disaster Risk Reduction Area only if the grantee's 
approved action plan contains a description of the buyouts to be 
conducted in the identified Disaster Risk Reduction Areas and the 
national objective that the buyouts will meet. Any buyouts conducted 
within the Disaster Risk Reduction Area will be subject to the 
requirements applicable to buyouts in the March 5, 2013, notice. These 
requirements include restrictions on redevelopment and the discretion 
to determine the appropriate valuation method (including the use of 
pre- or post-disaster fair market value (FMV)), so long as the 
valuation method is uniformly applied.

2. Clarification of ``Buyout'' and ``Real Property Acquisition'' 
Activities

    CDBG-DR grantees under Public Law 113-2 that choose to undertake a 
buyout program have the discretion to determine the appropriate 
valuation method, including paying either pre-disaster or post-disaster 
FMV. In most cases, a program that provides pre-disaster FMV to buyout 
applicants provides compensation at an amount greater than the post-
disaster FMV. When the purchase price exceeds the current FMV, any 
CDBG-DR funds in excess of FMV are considered assistance to the seller, 
thus making the seller a beneficiary of CDBG-DR assistance. If the 
seller receives assistance as part of the purchase price, this may have 
implications for duplication of benefits calculations or for 
demonstrating national objective criteria, as discussed below. However, 
a program that provides post-disaster FMV to buyout applicants merely 
provides the actual value of the property; thus, the seller is not 
considered a beneficiary of CDBG-DR assistance.
    Regardless of purchase price, all buyout activities are a type of 
acquisition of real property (as permitted by section 105(a)(1) of the 
HCD Act). However, only acquisitions that meet the definition of a 
``buyout'' are subject to the post-acquisition land use restrictions 
imposed by the applicable prior notices. The key factor in determining 
whether the acquisition is a buyout is whether the intent of the 
purchase is to reduce risk from future flooding or to reduce the risk 
from the hazard that lead to the property's Disaster Risk Reduction 
Area designation. The distinction between buyouts and other types of 
acquisitions is important, because grantees may only redevelop an 
acquired property if the property is not acquired through a buyout 
program (i.e., the purpose of acquisition was something other than risk 
reduction). When acquisitions are not acquired through a buyout 
program, the purchase price must be consistent with applicable uniform 
cost principles (the pre-disaster FMV may not be used).

3. Clarification of Ownership and Maintenance Requirements for Property 
Acquired Through a Buyout Program

    Any property acquired with CDBG-DR funds through a buyout program 
is subject to the requirement made applicable by the prior notices that 
property acquired through a buyout program be dedicated and maintained 
in perpetuity for a use that is compatible with open space, 
recreational, or wetlands management practices. In addition, no new 
structure may be erected on the property other than exceptions 
identified in the March 5, 2013, notice, and no subsequent application 
for Federal disaster assistance may be made for any purpose for the 
property. The acquiring entity may lease such property to adjacent 
property owners or other parties for compatible uses in return for a 
maintenance agreement. Although Federal policy encourages leasing 
rather than selling such property, the property may also be sold. In 
all cases, a deed restriction or covenant running with the property 
must require that the buyout property be dedicated and maintained for 
compatible uses in perpetuity.

4. Use of Low- and Moderate-Income Housing National Objective When 
Undertaking Buyout Activities

    In order to demonstrate that a buyout meets the Low- and Moderate-
Income (LMI) Housing National Objective (LMH), grantees must meet all 
requirements of the HCD Act and applicable regulatory criteria 
described below. Grantees are encouraged to

[[Page 72104]]

consult with HUD prior to undertaking a buyout program with the intent 
of using the LMH national objective.
    Section 105(c)(3) of the HCD Act (42 U.S.C. 5305(c)(3)) provides 
that ``[a]ny assisted activity under this chapter that involves the 
acquisition or rehabilitation of property to provide housing shall be 
considered to benefit persons of low- and moderate-income only to the 
extent such housing will, upon completion, be occupied by such 
persons.'' In addition, the State CDBG regulations at 24 CFR 
570.483(b)(3) and entitlement CDBG regulations at 24 CFR 570.208(a)(3) 
apply the LMH national objective to an eligible activity carried out 
for the purpose of providing or improving permanent residential 
structures that, upon completion, will be occupied by low- and 
moderate-income households. Therefore, a buyout program that merely 
pays homeowners to leave their existing homes does not result in an LMI 
household occupying a residential structure and thus cannot meet the 
requirements of the LMH national objective.
    Buyout programs that assist LMI persons can be structured in one of 
the following ways: (1) The buyout program combines the acquisition of 
properties with another direct benefit, LMI housing activity, such as 
down payment assistance,\2\ that results in occupancy and otherwise 
meets the applicable LMH housing national objective criteria in 24 CFR 
part 570 (e.g., if the structure contains more than two dwelling units, 
at least 51 percent of the units must be occupied by LMI households); 
(2) The program meets the low- and moderate-income area benefit 
criteria to demonstrate national objective compliance, provided that 
the grantee can document that the properties acquired through buyouts 
will be used in a way that benefits all of the residents in a 
particular area where at least 51 percent of the residents are low- and 
moderate-income persons. When using the area benefit approach, grantees 
must define the service area based on the end use of the buyout 
properties; or (3) The program meets the criteria for the limited 
clientele national objective, including the prohibition on the use of 
the limited clientele national objective when an activity's benefits 
are available to all residents of the area. A buyout program could meet 
the national objective criteria for the limited clientele national 
objective if it restricts buyout program eligibility to exclusively 
low- and moderate-income persons, and the buyout provides an actual 
benefit to the low- and moderate-income sellers by providing pre-
disaster valuation uniformly to those who participate in the program.
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    \2\ The Uniform Relocation Assistance and Real Property 
Acquisition Policies Act of 1970, as amended, (URA) applies to the 
use of CDBG funds for down payment assistance. If down payment 
assistance is provided with CDBG funds awarded under the 
Appropriations Act (Pub. L. 113-2), URA requirements apply as 
modified by the March 5, 2013, notice (78 FR 14329). The use of 
other CDBG funds for down payment assistance is subject to the URA 
and regulatory requirements at 24 CFR 570.606. Other direct benefit 
LMI housing activities may also be subject to the URA.
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5. Clarification of Definition of Small Business for Agricultural 
Enterprises

    The March 5, 2013, notice (78 FR 14329) instituted an alternative 
requirement to the provisions at 42 U.S.C. 5305(a), prohibiting 
grantees in receipt of funds under the Appropriations Act from 
assisting businesses, including privately owned utilities, that do not 
meet the definition of a small business as defined by SBA at 13 CFR 
part 121. The objective of this alternative requirement is to ensure 
that grantees target disaster recovery resources to the unmet needs of 
small businesses. HUD is now modifying these criteria to better enable 
assistance for agricultural businesses. Businesses and entities engaged 
in agricultural enterprises may now be assisted if they meet the 
alternative eligibility criteria employed by USDA assistance programs.
    The SBA small business definition establishes a much lower income 
threshold for agricultural enterprises than for other businesses. The 
SBA criteria provides a gross income limit of $750,000 for most 
agricultural businesses, while the gross income limit for businesses in 
other sectors is $7.5 million or higher. These gross income limitations 
for agricultural enterprises may prevent CDBG-DR grantees from 
addressing unmet recovery needs of many agricultural businesses that 
would otherwise be considered small enterprises that meet the intent of 
HUD's requirements.
    Legislation enacted in 1986 withdrew SBA's authority to provide 
disaster assistance loans to agricultural enterprises to ensure 
cooperation between USDA and SBA in the use of each agency's respective 
loan making authorities and to improve the delivery of disaster 
assistance to the agricultural segment of the country. SBA also 
decreased the gross income limits for the agricultural sector in its 
small business criteria, as described above, to further ensure that 
agricultural businesses would apply to USDA for other types of 
financial assistance. Consequently, HUD's use of the SBA definition in 
its March 5, 2013, notice may inadvertently limit small agricultural 
enterprises from accessing financial assistance through grantees' CDBG-
DR programs under the Appropriations Act.
    As HUD's intent to address the unmet recovery needs of small 
agricultural enterprises does not conflict with the goal of directing 
these businesses to USDA for other types of assistance, HUD is 
modifying its criteria for businesses engaged in agricultural 
enterprises to enable them to access CDBG-DR funds necessary for their 
recovery.
    Accordingly, paragraph VI.D.41, of the March 5, 2013, notice is 
amended to read: ``To target assistance to small businesses, the 
Department is instituting an alternative requirement to the provisions 
at 42 U.S.C. 5305(a) to prohibit grantees from assisting businesses, 
including privately owned utilities, that do not meet the definition of 
a small business as defined by SBA at 13 CFR part 121. Grantees may 
also assist businesses that are engaged in ``farming operations,'' as 
defined at 7 CFR 1400.3, and that meet the USDA Farm Service Agency 
(FSA) criteria that are described at 7 CFR 1400.500 which are used by 
the FSA to determine eligibility for certain assistance programs.''
    Grantees are also reminded that this modification may allow them to 
add new beneficiaries or programs described within their CDBG-DR action 
plans for disaster recovery. These changes would constitute a 
substantial amendment to the CDBG-DR action plan as described in the 
March 5, 2013, notice (78 FR 14329) at paragraph VI.A.3.a. If 
applicable, grantees must submit a Substantial Action Plan Amendment 
revising the description of their business assistance program to 
include potential beneficiaries, 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.

6. Waiver To Permit Some Activities in Support of the Tourism Industry 
(State of Colorado Only)

    In the Federal Register notice published on June 3, 2014 (79 FR 
31964), the Department granted the State of Colorado a waiver of 42 
U.S.C. 5305(a) to make eligible the use of up to $500,000 in CDBG-DR 
funds to support the State's tourism industry and to promote travel to 
the most impacted and distressed areas related to the 2013 floods. This 
notice replaces the previous waiver and authorizes the State to provide 
an additional $768,300 in

[[Page 72105]]

CDBG-DR funds to support tourism promotion activities, increasing the 
amount covered by the waiver from $500,000 to $1,268,300. In addition, 
this revised waiver permits the State to support its tourism industry 
and promote travel to the most impacted and distressed counties that 
had a declared major disaster in 2011, 2012, or 2013, including those 
impacted by disasters other than flooding.
    Using the funds provided under the initial waiver, the State 
established its first CDBG-DR Tourism Marketing Grant Program and 
received applications requesting a total of $787,927. Through this 
program, the State awarded eight grants totaling $500,000 in CDBG-DR 
funding to support a variety of activities such as advertising, 
marketing campaigns, promotion of community and spectator events, and 
Web site improvements in targeted areas that had experienced a 
reduction in tourism revenues following the 2013 floods in Colorado. 
This funding fell short of meeting the tourism promotion priorities 
identified through the initial round of State funding by $287,927. The 
State has also subsequently identified $480,373 in additional funding 
opportunities for the original applicants who were constrained by the 
initial grant size limitation, as well as for potential new applicants 
made eligible through the inclusion of areas impacted by disasters 
other than flooding.
    In support of this request, the State has conducted an analysis of 
retail sales that indicates that the flooding and wildfire disasters 
continue to negatively affect local tourism revenues. Tourism is the 
primary economic contributor to the State of Colorado's economy and 
provides a valuable source of business revenue, taxes, and employment. 
According to analyses provided by the State, businesses supported by 
tourism, including hotels, lodges, restaurants, and grocery stores, are 
still experiencing weakened sales revenue. Tax revenue from these 
businesses benefits the State's economy and provides funding for other 
State activities and services. In addition, this industry employs many 
individuals who are of low- and moderate-income; thus, this population 
has been inordinately affected by the decrease in tourism revenue. Some 
of these jobs have been lost as a result of the disasters.
    Because communities are diverting disposable tax revenue to 
physical recovery projects, funding for tourism marketing is scarce and 
communities face a worsening economic cycle from which the areas cannot 
recover without the injection of supplemental assistance. Therefore, 
the State has requested that an additional $768,300 of its total CDBG-
DR award be made eligible for such tourism promotion activities. HUD 
continues to support the use of CDBG-DR funds in this scenario as a 
recovery tool in a damaged regional economy that depends on tourism for 
many of its jobs and tax revenue.
    As the State of Colorado is proposing to use these additional funds 
for advertising and marketing activities that broadly support its 
tourism industry, rather than direct assistance to tourism-dependent 
businesses, and because long-term benefit from the proposed activities 
must be derived using indirect means, 42 U.S.C. 5305(a) is waived only 
to the extent necessary to make eligible an additional $768,300 to 
support tourism promotion activities. The State must award the 
additional $768,300 in CDBG-DR funds competitively through its existing 
CDBG-DR Tourism Marketing Grant Program to public or nonprofit entities 
that promote travel to or within a community or communities in general, 
provided the assisted activities are designed to support tourism to 
areas most impacted and distressed by a major disaster declared in 
2011, 2012, or 2013.
    As an additional condition of expanding this waiver, the State must 
demonstrate that funds will supplement and not replace State and local 
funding sources for this purpose. In its request for this waiver, the 
State indicated that entities selected for an award also pledged nearly 
a one-for-one match for their projects. The State may demonstrate that 
CDBG-DR funds will supplement, but not replace, local funding by 
requiring a match, including provision for in-kind contributions, 
similar to the existing competitive grant program offered by the 
Colorado Tourism Office. However, if the State does not require a 
match, the State must identify another means to adequately demonstrate 
that funds will supplement, but not supplant, State and local resources 
typically dedicated to promote tourism in these impacted areas.
    The additional funds provided through this waiver for the State's 
CDBG-DR Tourism Marketing Grant Program are subject to all requirements 
in the notice published on June 3, 2014 (79 FR 31964), unless otherwise 
modified through this notice. The funds permitted under this waiver are 
subject to the same obligation and expenditure deadline applicable to 
all funds under the Appropriations Act. Therefore, this waiver remains 
in effect until 2 years following HUD's obligation of the funds 
permitted under this waiver.
    The State is reminded that this expanded waiver will allow them to 
add new beneficiaries described within their CDBG-DR action plans for 
disaster recovery. These changes would constitute substantial 
amendments as described in the March 5, 2013 notice (78 FR 14329), at 
paragraph VI.A.3.a. If applicable, the State must submit a Substantial 
Action Plan Amendment revising its description of its CDBG-DR Tourism 
Marketing Grant Program to include potential beneficiaries, 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.

III. Catalog of Federal Domestic Assistance

    The Catalog of Federal Domestic Assistance number for the disaster 
recovery grants under this notice is 14.269.

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, 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, toll-free, at 800-877-8339.

    Dated: November 10, 2015.
Nani Coloretti,
Deputy Secretary.
[FR Doc. 2015-29487 Filed 11-17-15; 8:45 am]
BILLING CODE 4210-67-P



                                                    72102                    Federal Register / Vol. 80, No. 222 / Wednesday, November 18, 2015 / Notices

                                                      Dated: November 12, 2015.                             via TTY by calling the Federal Relay                  notices continue to apply, except as
                                                    Henry Hensley,                                          Service at 800–877–8339. Facsimiled                   modified by this notice.1
                                                    Acting Director, Office of Strategic Planning           inquiries may be sent to Mr. Gimont at
                                                                                                                                                                  II. Applicable Rules (Including
                                                    and Management.                                         202–401–2044. (Except for the ‘‘800’’
                                                                                                                                                                  Clarifying Guidance), Statutes,
                                                    [FR Doc. 2015–29484 Filed 11–17–15; 8:45 am]            number, these telephone numbers are
                                                                                                                                                                  Waivers, and Alternative Requirements
                                                    BILLING CODE 4210–67–P                                  not toll-free.) Emailed inquiries may be
                                                                                                            sent to disaster_recovery@hud.gov.                       The Appropriations Act authorizes
                                                                                                                                                                  the Secretary to waive, or specify
                                                                                                            SUPPLEMENTARY INFORMATION:                            alternative requirements for, any
                                                    DEPARTMENT OF HOUSING AND
                                                    URBAN DEVELOPMENT                                       Table of Contents                                     provision of any statute or regulation
                                                                                                                                                                  that the Secretary administers in
                                                    [Docket No. FR–5696–N–17]                               I. Background                                         connection with HUD’s obligation or
                                                                                                            II. Applicable Rules, Statutes, Waivers, and          use by the recipient of these funds
                                                    Guidance, Waivers, and Alternative                            Alternative Requirements                        (except for requirements related to fair
                                                    Requirements for Grantees in Receipt                    III. Catalog of Federal Domestic Assistance           housing, nondiscrimination, labor
                                                    of Community Development Block                          IV. Finding of No Significant Impact                  standards, and the environment).
                                                    Grant Disaster Recovery Funds Under                                                                           Waivers and alternative requirements
                                                    Public Law 113–2: ‘‘Buyout’’ and                        I. Background
                                                                                                                                                                  are based upon a determination by the
                                                    ‘‘Acquisition’’ Activities; Assistance to                                                                     Secretary that good cause exists and that
                                                                                                               The Appropriations Act (Pub. L. 113–
                                                    Agricultural Enterprises; and State of                                                                        the waiver or alternative requirement is
                                                                                                            2, approved January 29, 2013) made
                                                    Colorado Waiver for Tourism                                                                                   not inconsistent with the overall
                                                                                                            available $16 billion in CDBG–DR funds
                                                    Promotion                                                                                                     purposes of Title I of the Housing and
                                                                                                            for necessary expenses related to
                                                    AGENCY:  Office of the Assistant                        disaster relief, long-term recovery,                  Community Development Act of 1974
                                                    Secretary for Community Planning and                    restoration of infrastructure and                     (42 U.S.C. 5301 et seq.) (HCD Act).
                                                    Development, HUD.                                       housing, and economic revitalization in               Regulatory waiver authority is also
                                                    ACTION: Notice.                                         the most impacted and distressed areas,               provided by 24 CFR 5.110, 91.600, and
                                                                                                            resulting from a major disaster declared              570.5.
                                                    SUMMARY:    This notice provides                        pursuant to the Robert T. Stafford                       For the waiver and alternative
                                                    clarifying guidance for Community                       Disaster Relief and Emergency                         requirements described in this notice,
                                                    Development Block Grant disaster                        Assistance Act of 1974 (42 U.S.C. 5121                the Secretary has determined that good
                                                    recovery (CDBG–DR) grantees in receipt                  et. seq.) (Stafford Act) due to Hurricane             cause exists and that the waiver and
                                                    of funds under the Disaster Relief                      Sandy and other eligible events in                    alternative requirements are not
                                                    Appropriations Act, 2013 (the                           calendar years 2011, 2012, and 2013. On               inconsistent with the overall purpose of
                                                    Appropriations Act). It provides                        March 1, 2013, the President issued a                 the HCD Act. Grantees may request
                                                    clarification regarding the requirements                sequestration order pursuant to section               waivers and alternative requirements
                                                    of ‘‘buyout’’ activities authorized in the              251A of the Balanced Budget and                       from the Department as needed to
                                                    Department’s March 5, 2013, Federal                     Emergency Deficit Control Act, as                     address specific needs related to their
                                                    Register notice and expands the                         amended (2 U.S.C. 901a), and reduced                  recovery activities. Under the
                                                    eligibility criteria for buyout activities to           the amount of funding for CDBG–DR                     requirements of the Appropriations Act,
                                                    include ‘‘Disaster Risk Reduction                       grants under the Appropriations Act to                waivers must be published in the
                                                    Areas’’ as defined by the grantee. It also              $15.18 billion. To date, a total of $15.18            Federal Register no later than 5 days
                                                    modifies requirements of the March 5,                   billion has been allocated or set aside:              before the effective date of such waiver.
                                                    2013, notice on the prohibition of                      $13 billion in response to Hurricane                  1. Acquisition of Real Property and
                                                    assistance to businesses that do not                    Sandy, $514 million in response to                    Buyouts Outside of Floodplains
                                                    meet the Small Business Administration                  disasters occurring in 2011 or 2012,
                                                    (SBA) definition of small businesses,                                                                            In response to a request from the State
                                                                                                            $655 million in response to 2013
                                                    permitting assistance also to eligible                                                                        of Colorado, HUD is authorizing
                                                                                                            disasters, and $1 billion for the National
                                                    businesses engaged in ‘‘farming                                                                               grantees in receipt of CDBG–DR funds
                                                                                                            Disaster Resilience Competition.
                                                    operations,’’ as determined by the U.S.                                                                       under the Appropriations Act to acquire
                                                                                                               This notice applies to grantees in                 property for an amount equal to either
                                                    Department of Agriculture (USDA). This                  receipt of allocations under the
                                                    notice also provides a waiver to the                                                                          the property’s pre-disaster or post-
                                                                                                            Appropriations Act, which are                         disaster value (formerly referenced in
                                                    State of Colorado to expend additional                  described within the Federal Register
                                                    CDBG–DR funds and to assist additional                                                                        the prior notices as pre- and post-flood
                                                                                                            notices published by the Department on                values), for the buyout of properties in
                                                    communities impacted by declared                        March 5, 2013 (78 FR 14329); April 19,
                                                    disasters in 2011, 2012, and 2013,                                                                            ‘‘Disaster Risk Reduction Areas’’ as
                                                                                                            2013 (78 FR 23578); May 29, 2013 (78                  defined by criteria established by the
                                                    through tourism promotion activities                    FR 32262); August 2, 2013 (78 FR
                                                    previously authorized in the                                                                                  grantee, subject to the limitations of this
                                                                                                            46999); November 18, 2013 (78 FR                      notice.
                                                    Department’s June 3, 2014, notice.                      69104); December 16, 2013 (78 FR                         The Department has previously
                                                    DATES: Effective Date: November 23,                     76154); March 27, 2014 (79 FR 17173);                 authorized CDBG–DR grantees to carry
                                                    2015.                                                   June 3, 2014 (79 FR 31964); July 11,                  out buyout programs in floodways or
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                                                    FOR FURTHER INFORMATION CONTACT:                        2014 (79 FR 40133); October 7, 2014 (79               floodplains, by allowing grantees to
                                                    Stanley Gimont, Director, Office of                     FR 60490); October 16, 2014 (79 FR                    offer to acquire properties in hazardous
                                                    Block Grant Assistance, Department of                   62182); January 8, 2015 (80 FR 1039);
                                                    Housing and Urban Development, 451                      April 2, 2015 (80 FR 17772); May 11,                    1 Links to the prior notices, the text of the

                                                    7th Street SW., Room 7286, Washington,                  2015 (80 FR 26942); and August 25,                    Appropriations Act, and additional guidance
                                                                                                            2015 (80 FR 51589) referred to                        prepared by the Department for CDBG–DR grants
                                                    DC 20410, telephone number 202–708–                                                                           are available on the HUD Exchange Web site:
                                                    3587. Persons with hearing or speech                    collectively in this notice as the ‘‘prior            https://www.hudexchange.info/cdbg-dr/cdbg-dr-
                                                    impairments may access this number                      notices.’’ The requirements of the prior              laws-regulations-and-federal-register-notices/.



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                                                                            Federal Register / Vol. 80, No. 222 / Wednesday, November 18, 2015 / Notices                                           72103

                                                    flood areas at pre-flood or post–flood                  Disaster Risk Reduction Area,’’ subject                  Regardless of purchase price, all
                                                    value. The Secretary authorized this                    to the following requirements: (1) The                buyout activities are a type of
                                                    type of acquisition to: (1) Reduce the                  hazard must have been caused or                       acquisition of real property (as
                                                    risk to homeowners from the effects of                  exacerbated by the Presidentially                     permitted by section 105(a)(1) of the
                                                    subsequent disasters; (2) assist in the                 declared disaster for which the grantee               HCD Act). However, only acquisitions
                                                    recovery of low- and moderate-income                    received its CDBG–DR allocation; (2)                  that meet the definition of a ‘‘buyout’’
                                                    households; and (3) protect taxpayer                    The hazard must be a predictable                      are subject to the post-acquisition land
                                                    resources that might otherwise be                       environmental threat to the safety and                use restrictions imposed by the
                                                    needed after future disasters in the same               well-being of program beneficiaries, as               applicable prior notices. The key factor
                                                    area.                                                   evidenced by the best available data and              in determining whether the acquisition
                                                        In previous notices, HUD referred to                science; and (3) The Disaster Risk                    is a buyout is whether the intent of the
                                                    ‘‘flood buyouts’’ and recognized that                   Reduction Area must be clearly                        purchase is to reduce risk from future
                                                    grantees frequently used CDBG–DR                        delineated so that HUD and the public                 flooding or to reduce the risk from the
                                                    funds to match funds for buyouts                        may easily determine which properties                 hazard that lead to the property’s
                                                    provided under section 404 of the                       are located within the Disaster Risk                  Disaster Risk Reduction Area
                                                    Stafford Act, as amended. Section 404                   Reduction Area.                                       designation. The distinction between
                                                    empowers the Director of the Federal                      Once grantees have established                      buyouts and other types of acquisitions
                                                    Emergency Management Agency                             criteria to designate a ‘‘Disaster Risk               is important, because grantees may only
                                                    (FEMA) to provide property acquisition                  Reduction Area,’’ and designated a                    redevelop an acquired property if the
                                                    and relocation assistance ‘‘in providing                Disaster Risk Reduction Area in                       property is not acquired through a
                                                    hazard mitigation assistance under this                 accordance with the established criteria,             buyout program (i.e., the purpose of
                                                    section in connection with flooding . . .               the grantee may conduct buyouts in the                acquisition was something other than
                                                    .’’ Since flooding is by far the most                   Disaster Risk Reduction Area only if the              risk reduction). When acquisitions are
                                                    prevalent and predictable source of                     grantee’s approved action plan contains               not acquired through a buyout program,
                                                    widespread destruction in a                                                                                   the purchase price must be consistent
                                                                                                            a description of the buyouts to be
                                                    Presidentially declared disaster, the                                                                         with applicable uniform cost principles
                                                                                                            conducted in the identified Disaster
                                                    Department did not address the                                                                                (the pre-disaster FMV may not be used).
                                                                                                            Risk Reduction Areas and the national
                                                    potential need to include other types of
                                                                                                            objective that the buyouts will meet.                 3. Clarification of Ownership and
                                                    hazards. Large scale disasters have the
                                                                                                            Any buyouts conducted within the                      Maintenance Requirements for Property
                                                    potential to create or exacerbate hazards
                                                                                                            Disaster Risk Reduction Area will be                  Acquired Through a Buyout Program
                                                    in areas located outside of a floodplain
                                                                                                            subject to the requirements applicable to                Any property acquired with CDBG–
                                                    or floodway. For example, the wildfires
                                                                                                            buyouts in the March 5, 2013, notice.                 DR funds through a buyout program is
                                                    that swept through Colorado in 2013
                                                                                                            These requirements include restrictions               subject to the requirement made
                                                    destroyed vegetation in many areas,
                                                    creating erosion and affecting soil                     on redevelopment and the discretion to                applicable by the prior notices that
                                                    stability in a manner that now places                   determine the appropriate valuation                   property acquired through a buyout
                                                    many homes at risk for mudslides in                     method (including the use of pre- or                  program be dedicated and maintained in
                                                    future disasters, although those homes                  post-disaster fair market value (FMV)),               perpetuity for a use that is compatible
                                                    are not located in a floodplain or                      so long as the valuation method is                    with open space, recreational, or
                                                    floodway.                                               uniformly applied.                                    wetlands management practices. In
                                                        For the same reasons that buyouts in                2. Clarification of ‘‘Buyout’’ and ‘‘Real             addition, no new structure may be
                                                    floodways and floodplains are                           Property Acquisition’’ Activities                     erected on the property other than
                                                    permitted, HUD is amending its                                                                                exceptions identified in the March 5,
                                                    alternative requirement to expand the                     CDBG–DR grantees under Public Law                   2013, notice, and no subsequent
                                                    scope of authorized buyouts in the prior                113–2 that choose to undertake a buyout               application for Federal disaster
                                                    notices for grantees receiving CDBG–DR                  program have the discretion to                        assistance may be made for any purpose
                                                    funds under the Appropriations Act.                     determine the appropriate valuation                   for the property. The acquiring entity
                                                    Accordingly, the definition of ‘‘buyout’’               method, including paying either pre-                  may lease such property to adjacent
                                                    in all prior notices is amended to mean                 disaster or post-disaster FMV. In most                property owners or other parties for
                                                    ‘‘acquisition of properties located in a                cases, a program that provides pre-                   compatible uses in return for a
                                                    floodway or floodplain that is intended                 disaster FMV to buyout applicants                     maintenance agreement. Although
                                                    to reduce risk from future flooding, or                 provides compensation at an amount                    Federal policy encourages leasing rather
                                                    the acquisition of properties in ‘Disaster              greater than the post-disaster FMV.                   than selling such property, the property
                                                    Risk Reduction Areas’ located outside of                When the purchase price exceeds the                   may also be sold. In all cases, a deed
                                                    floodways and floodplains for the                       current FMV, any CDBG–DR funds in                     restriction or covenant running with the
                                                    purpose of reducing risks from the                      excess of FMV are considered assistance               property must require that the buyout
                                                    hazard that was the basis of the Disaster               to the seller, thus making the seller a               property be dedicated and maintained
                                                    Risk Reduction Area designation.                        beneficiary of CDBG–DR assistance. If                 for compatible uses in perpetuity.
                                                    ‘Disaster Risk Reduction Areas’ must be                 the seller receives assistance as part of
                                                    designated in accordance with the                       the purchase price, this may have                     4. Use of Low- and Moderate-Income
                                                    buyout requirements of applicable                       implications for duplication of benefits              Housing National Objective When
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                                                    Federal Register Notices.’’                             calculations or for demonstrating                     Undertaking Buyout Activities
                                                        Recognizing that States and units of                national objective criteria, as discussed                In order to demonstrate that a buyout
                                                    general local government (UGLGs) are                    below. However, a program that                        meets the Low- and Moderate-Income
                                                    best positioned to determine what                       provides post-disaster FMV to buyout                  (LMI) Housing National Objective
                                                    constitutes an unacceptable risk to their               applicants merely provides the actual                 (LMH), grantees must meet all
                                                    communities in exercising this                          value of the property; thus, the seller is            requirements of the HCD Act and
                                                    additional authority, grantees will need                not considered a beneficiary of CDBG–                 applicable regulatory criteria described
                                                    to establish criteria to designate a ’’                 DR assistance.                                        below. Grantees are encouraged to


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                                                    72104                   Federal Register / Vol. 80, No. 222 / Wednesday, November 18, 2015 / Notices

                                                    consult with HUD prior to undertaking                   when an activity’s benefits are available             may inadvertently limit small
                                                    a buyout program with the intent of                     to all residents of the area. A buyout                agricultural enterprises from accessing
                                                    using the LMH national objective.                       program could meet the national                       financial assistance through grantees’
                                                       Section 105(c)(3) of the HCD Act (42                 objective criteria for the limited                    CDBG–DR programs under the
                                                    U.S.C. 5305(c)(3)) provides that ‘‘[a]ny                clientele national objective if it restricts          Appropriations Act.
                                                    assisted activity under this chapter that               buyout program eligibility to                            As HUD’s intent to address the unmet
                                                    involves the acquisition or                             exclusively low- and moderate-income                  recovery needs of small agricultural
                                                    rehabilitation of property to provide                   persons, and the buyout provides an                   enterprises does not conflict with the
                                                    housing shall be considered to benefit                  actual benefit to the low- and moderate-              goal of directing these businesses to
                                                    persons of low- and moderate-income                     income sellers by providing pre-disaster              USDA for other types of assistance,
                                                    only to the extent such housing will,                   valuation uniformly to those who                      HUD is modifying its criteria for
                                                    upon completion, be occupied by such                    participate in the program.                           businesses engaged in agricultural
                                                    persons.’’ In addition, the State CDBG                                                                        enterprises to enable them to access
                                                    regulations at 24 CFR 570.483(b)(3) and                 5. Clarification of Definition of Small               CDBG–DR funds necessary for their
                                                    entitlement CDBG regulations at 24 CFR                  Business for Agricultural Enterprises                 recovery.
                                                    570.208(a)(3) apply the LMH national                       The March 5, 2013, notice (78 FR                      Accordingly, paragraph VI.D.41, of
                                                    objective to an eligible activity carried               14329) instituted an alternative                      the March 5, 2013, notice is amended to
                                                    out for the purpose of providing or                     requirement to the provisions at 42                   read: ‘‘To target assistance to small
                                                    improving permanent residential                         U.S.C. 5305(a), prohibiting grantees in               businesses, the Department is instituting
                                                    structures that, upon completion, will                  receipt of funds under the                            an alternative requirement to the
                                                    be occupied by low- and moderate-                       Appropriations Act from assisting                     provisions at 42 U.S.C. 5305(a) to
                                                    income households. Therefore, a buyout                  businesses, including privately owned                 prohibit grantees from assisting
                                                    program that merely pays homeowners                     utilities, that do not meet the definition            businesses, including privately owned
                                                    to leave their existing homes does not                  of a small business as defined by SBA                 utilities, that do not meet the definition
                                                    result in an LMI household occupying a                  at 13 CFR part 121. The objective of this             of a small business as defined by SBA
                                                    residential structure and thus cannot                   alternative requirement is to ensure that             at 13 CFR part 121. Grantees may also
                                                    meet the requirements of the LMH                        grantees target disaster recovery                     assist businesses that are engaged in
                                                    national objective.                                     resources to the unmet needs of small                 ‘‘farming operations,’’ as defined at 7
                                                       Buyout programs that assist LMI                      businesses. HUD is now modifying                      CFR 1400.3, and that meet the USDA
                                                    persons can be structured in one of the                 these criteria to better enable assistance            Farm Service Agency (FSA) criteria that
                                                    following ways: (1) The buyout program                  for agricultural businesses. Businesses               are described at 7 CFR 1400.500 which
                                                    combines the acquisition of properties                  and entities engaged in agricultural                  are used by the FSA to determine
                                                    with another direct benefit, LMI housing                enterprises may now be assisted if they               eligibility for certain assistance
                                                    activity, such as down payment                          meet the alternative eligibility criteria             programs.’’
                                                    assistance,2 that results in occupancy                  employed by USDA assistance                              Grantees are also reminded that this
                                                    and otherwise meets the applicable                      programs.                                             modification may allow them to add
                                                    LMH housing national objective criteria                    The SBA small business definition                  new beneficiaries or programs described
                                                    in 24 CFR part 570 (e.g., if the structure              establishes a much lower income                       within their CDBG–DR action plans for
                                                    contains more than two dwelling units,                  threshold for agricultural enterprises                disaster recovery. These changes would
                                                    at least 51 percent of the units must be                than for other businesses. The SBA                    constitute a substantial amendment to
                                                    occupied by LMI households); (2) The                    criteria provides a gross income limit of             the CDBG–DR action plan as described
                                                    program meets the low- and moderate-                    $750,000 for most agricultural                        in the March 5, 2013, notice (78 FR
                                                    income area benefit criteria to                         businesses, while the gross income limit              14329) at paragraph VI.A.3.a. If
                                                    demonstrate national objective                          for businesses in other sectors is $7.5               applicable, grantees must submit a
                                                    compliance, provided that the grantee                   million or higher. These gross income                 Substantial Action Plan Amendment
                                                    can document that the properties                        limitations for agricultural enterprises              revising the description of their
                                                    acquired through buyouts will be used                   may prevent CDBG–DR grantees from                     business assistance program to include
                                                    in a way that benefits all of the residents             addressing unmet recovery needs of                    potential beneficiaries, and this
                                                    in a particular area where at least 51                  many agricultural businesses that would               amendment will be subject to the citizen
                                                    percent of the residents are low- and                   otherwise be considered small                         participation requirements of the March
                                                    moderate-income persons. When using                     enterprises that meet the intent of                   5, 2013, notice at VI.A.3, which requires
                                                    the area benefit approach, grantees must                HUD’s requirements.                                   no less than 7 calendar days to solicit
                                                    define the service area based on the end                   Legislation enacted in 1986 withdrew               public comment.
                                                    use of the buyout properties; or (3) The                SBA’s authority to provide disaster
                                                                                                            assistance loans to agricultural                      6. Waiver To Permit Some Activities in
                                                    program meets the criteria for the                                                                            Support of the Tourism Industry (State
                                                    limited clientele national objective,                   enterprises to ensure cooperation
                                                                                                            between USDA and SBA in the use of                    of Colorado Only)
                                                    including the prohibition on the use of
                                                    the limited clientele national objective                each agency’s respective loan making                     In the Federal Register notice
                                                                                                            authorities and to improve the delivery               published on June 3, 2014 (79 FR
                                                      2 The Uniform Relocation Assistance and Real          of disaster assistance to the agricultural            31964), the Department granted the
                                                                                                            segment of the country. SBA also                      State of Colorado a waiver of 42 U.S.C.
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                                                    Property Acquisition Policies Act of 1970, as
                                                    amended, (URA) applies to the use of CDBG funds         decreased the gross income limits for                 5305(a) to make eligible the use of up
                                                    for down payment assistance. If down payment
                                                    assistance is provided with CDBG funds awarded
                                                                                                            the agricultural sector in its small                  to $500,000 in CDBG–DR funds to
                                                    under the Appropriations Act (Pub. L. 113–2), URA       business criteria, as described above, to             support the State’s tourism industry and
                                                    requirements apply as modified by the March 5,          further ensure that agricultural                      to promote travel to the most impacted
                                                    2013, notice (78 FR 14329). The use of other CDBG       businesses would apply to USDA for                    and distressed areas related to the 2013
                                                    funds for down payment assistance is subject to the
                                                    URA and regulatory requirements at 24 CFR
                                                                                                            other types of financial assistance.                  floods. This notice replaces the previous
                                                    570.606. Other direct benefit LMI housing activities    Consequently, HUD’s use of the SBA                    waiver and authorizes the State to
                                                    may also be subject to the URA.                         definition in its March 5, 2013, notice               provide an additional $768,300 in


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                                                                            Federal Register / Vol. 80, No. 222 / Wednesday, November 18, 2015 / Notices                                                 72105

                                                    CDBG–DR funds to support tourism                        Therefore, the State has requested that                  The State is reminded that this
                                                    promotion activities, increasing the                    an additional $768,300 of its total                   expanded waiver will allow them to add
                                                    amount covered by the waiver from                       CDBG–DR award be made eligible for                    new beneficiaries described within their
                                                    $500,000 to $1,268,300. In addition, this               such tourism promotion activities. HUD                CDBG–DR action plans for disaster
                                                    revised waiver permits the State to                     continues to support the use of CDBG–                 recovery. These changes would
                                                    support its tourism industry and                        DR funds in this scenario as a recovery               constitute substantial amendments as
                                                    promote travel to the most impacted and                 tool in a damaged regional economy that               described in the March 5, 2013 notice
                                                    distressed counties that had a declared                 depends on tourism for many of its jobs               (78 FR 14329), at paragraph VI.A.3.a. If
                                                    major disaster in 2011, 2012, or 2013,                  and tax revenue.                                      applicable, the State must submit a
                                                    including those impacted by disasters                      As the State of Colorado is proposing              Substantial Action Plan Amendment
                                                    other than flooding.                                    to use these additional funds for                     revising its description of its CDBG–DR
                                                       Using the funds provided under the                   advertising and marketing activities that             Tourism Marketing Grant Program to
                                                    initial waiver, the State established its               broadly support its tourism industry,                 include potential beneficiaries, and this
                                                    first CDBG–DR Tourism Marketing                         rather than direct assistance to tourism-             amendment will be subject to the citizen
                                                    Grant Program and received                              dependent businesses, and because                     participation requirements of the March
                                                    applications requesting a total of                      long-term benefit from the proposed                   5, 2013, notice at VI.A.3, which requires
                                                    $787,927. Through this program, the                     activities must be derived using indirect             no less than 7 calendar days to solicit
                                                    State awarded eight grants totaling                     means, 42 U.S.C. 5305(a) is waived only               public comment.
                                                    $500,000 in CDBG–DR funding to                          to the extent necessary to make eligible
                                                    support a variety of activities such as                 an additional $768,300 to support                     III. Catalog of Federal Domestic
                                                    advertising, marketing campaigns,                       tourism promotion activities. The State               Assistance
                                                    promotion of community and spectator                    must award the additional $768,300 in                   The Catalog of Federal Domestic
                                                    events, and Web site improvements in                    CDBG–DR funds competitively through                   Assistance number for the disaster
                                                    targeted areas that had experienced a                   its existing CDBG–DR Tourism                          recovery grants under this notice is
                                                    reduction in tourism revenues following                 Marketing Grant Program to public or                  14.269.
                                                    the 2013 floods in Colorado. This                       nonprofit entities that promote travel to
                                                    funding fell short of meeting the tourism               or within a community or communities                  IV. Finding of No Significant Impact
                                                    promotion priorities identified through                 in general, provided the assisted                        A Finding of No Significant Impact
                                                    the initial round of State funding by                   activities are designed to support                    (FONSI) with respect to the
                                                    $287,927. The State has also                            tourism to areas most impacted and                    environment has been made in
                                                    subsequently identified $480,373 in                     distressed by a major disaster declared               accordance with HUD regulations at 24
                                                    additional funding opportunities for the                in 2011, 2012, or 2013.                               CFR part 50, which implement section
                                                    original applicants who were                               As an additional condition of                      102(2)(C) of the National Environmental
                                                    constrained by the initial grant size                   expanding this waiver, the State must                 Policy Act of 1969 (42 U.S.C.
                                                    limitation, as well as for potential new                demonstrate that funds will supplement                4332(2)(C)). The FONSI is available for
                                                    applicants made eligible through the                    and not replace State and local funding               public inspection between 8 a.m. and 5
                                                    inclusion of areas impacted by disasters                sources for this purpose. In its request              p.m. weekdays in the Regulations
                                                    other than flooding.                                    for this waiver, the State indicated that             Division, Office of General Counsel,
                                                       In support of this request, the State                entities selected for an award also                   Department of Housing and Urban
                                                    has conducted an analysis of retail sales               pledged nearly a one-for-one match for                Development, 451 7th Street SW., Room
                                                    that indicates that the flooding and                    their projects. The State may                         10276, Washington, DC 20410–0500.
                                                    wildfire disasters continue to negatively               demonstrate that CDBG–DR funds will                   Due to security measures at the HUD
                                                    affect local tourism revenues. Tourism                  supplement, but not replace, local                    Headquarters building, an advance
                                                    is the primary economic contributor to                  funding by requiring a match, including               appointment to review the docket file
                                                    the State of Colorado’s economy and                     provision for in-kind contributions,                  must be scheduled by calling the
                                                    provides a valuable source of business                  similar to the existing competitive grant             Regulations Division at 202–708–3055
                                                    revenue, taxes, and employment.                         program offered by the Colorado                       (this is not a toll-free number). Hearing-
                                                    According to analyses provided by the                   Tourism Office. However, if the State                 or speech-impaired individuals may
                                                    State, businesses supported by tourism,                 does not require a match, the State must              access this number through TTY by
                                                    including hotels, lodges, restaurants,                  identify another means to adequately                  calling the Federal Relay Service, toll-
                                                    and grocery stores, are still experiencing              demonstrate that funds will                           free, at 800–877–8339.
                                                    weakened sales revenue. Tax revenue                     supplement, but not supplant, State and
                                                    from these businesses benefits the                      local resources typically dedicated to                  Dated: November 10, 2015.
                                                    State’s economy and provides funding                    promote tourism in these impacted                     Nani Coloretti,
                                                    for other State activities and services. In             areas.                                                Deputy Secretary.
                                                    addition, this industry employs many                       The additional funds provided                      [FR Doc. 2015–29487 Filed 11–17–15; 8:45 am]
                                                    individuals who are of low- and                         through this waiver for the State’s                   BILLING CODE 4210–67–P
                                                    moderate-income; thus, this population                  CDBG–DR Tourism Marketing Grant
                                                    has been inordinately affected by the                   Program are subject to all requirements
                                                    decrease in tourism revenue. Some of                    in the notice published on June 3, 2014               DEPARTMENT OF HOUSING AND
                                                    these jobs have been lost as a result of                (79 FR 31964), unless otherwise
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                                                                                                                                                                  URBAN DEVELOPMENT
                                                    the disasters.                                          modified through this notice. The funds
                                                       Because communities are diverting                    permitted under this waiver are subject               [Docket No. FR–5832–N–12]
                                                    disposable tax revenue to physical                      to the same obligation and expenditure                60-Day Notice of Proposed Information
                                                    recovery projects, funding for tourism                  deadline applicable to all funds under                Collection: Indian Community Capital
                                                    marketing is scarce and communities                     the Appropriations Act. Therefore, this               Initiative
                                                    face a worsening economic cycle from                    waiver remains in effect until 2 years
                                                    which the areas cannot recover without                  following HUD’s obligation of the funds               AGENCY: Office of Community Planning
                                                    the injection of supplemental assistance.               permitted under this waiver.                          and Development, HUD.


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Document Created: 2018-03-01 11:19:36
Document Modified: 2018-03-01 11:19:36
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: November 23, 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. Facsimiled inquiries may be sent to Mr. Gimont at 202-401-2044. (Except for the ``800'' number, these telephone numbers are not toll- free.) Emailed inquiries may be sent to [email protected]
FR Citation80 FR 72102 

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