81_FR_7596 81 FR 7567 - Additional Clarifying Guidance, Waivers and Alternative Requirements for Grantees in Receipt of Community Development Block Grant Disaster Recovery Funds Under Public Law 113-2 for the Submission of Expenditure Deadline Extension Requests and Urgent Need Certification Extensions and for the Provision of Interim Mortgage Assistance by the State of New York

81 FR 7567 - Additional Clarifying Guidance, Waivers and Alternative Requirements for Grantees in Receipt of Community Development Block Grant Disaster Recovery Funds Under Public Law 113-2 for the Submission of Expenditure Deadline Extension Requests and Urgent Need Certification Extensions and for the Provision of Interim Mortgage Assistance by the State of New York

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Federal Register Volume 81, Issue 29 (February 12, 2016)

Page Range7567-7569
FR Document2016-02913

This notice provides additional clarifying guidance for all Community Development Block Grant Disaster Recovery (CDBG-DR) grantees in receipt of funds under the Disaster Relief Appropriations Act, 2013 (the Appropriations Act), with regard to the submission of requests for an extension of the 2-year expenditure deadline established for funds provided under the Appropriations Act and the continued use of the alternative urgent need national objective. This notice also provides an alternative requirement for New York State as a grantee in receipt of CDBG-DR funds under the Appropriations Act. This alternative requirement addresses the period of time in which interim mortgage assistance may be provided to beneficiaries in the State's housing recovery programs.

Federal Register, Volume 81 Issue 29 (Friday, February 12, 2016)
[Federal Register Volume 81, Number 29 (Friday, February 12, 2016)]
[Notices]
[Pages 7567-7569]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-02913]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5696-N-18]


Additional Clarifying Guidance, Waivers and Alternative 
Requirements for Grantees in Receipt of Community Development Block 
Grant Disaster Recovery Funds Under Public Law 113-2 for the Submission 
of Expenditure Deadline Extension Requests and Urgent Need 
Certification Extensions and for the Provision of Interim Mortgage 
Assistance by the State of New York

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

ACTION: Notice.

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SUMMARY: This notice provides additional clarifying guidance for all 
Community Development Block Grant Disaster Recovery (CDBG-DR) grantees 
in receipt of funds under the Disaster Relief Appropriations Act, 2013 
(the Appropriations Act), with regard to the submission of requests for 
an extension of the 2-year expenditure deadline established for funds 
provided under the Appropriations Act and the continued use of the 
alternative urgent need national objective. This notice also provides 
an alternative requirement for New York State as a grantee in receipt 
of CDBG-DR funds under the Appropriations Act. This alternative 
requirement addresses the period of time in which interim mortgage 
assistance may be provided to beneficiaries in the State's housing 
recovery programs.

DATES: Effective Date: February 17, 2016.

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

SUPPLEMENTARY INFORMATION: 

Table of Contents

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

I. Background

    The Appropriations Act (Pub. L. 113-2, approved January 29, 2013) 
made available $16 billion in 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 applies to all CDBG-DR 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), August 25, 
2015 (80 FR 51589), and November 18, 2015 (80 FR 72102), 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\
---------------------------------------------------------------------------

    \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/.
---------------------------------------------------------------------------

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 waivers 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 at least 5 days before the effective date of such 
waiver.
    1. Timeline for the submission of expenditure deadline extension 
requests. The Appropriations Act requires the Department to obligate 
all funds provided under the Appropriations Act by September 30, 2017, 
and requires grantees to expend funds within 24-months of the date on 
which the Department obligates funds to a grantee. The Appropriations 
Act also authorizes the Office of Management and Budget (OMB) to grant 
waivers of the 24-month expenditure deadline.

[[Page 7568]]

OMB authorized the Department to provide CDBG-DR grantees with 
expenditure deadline extensions for activities that are inherently 
long-term and where it would be impracticable to expend funds within 
the 24-month period and still achieve program missions, up to amounts 
approved by OMB. In the Federal Register notice published on May 11, 
2015, (80 FR 26942), the Department established the process and 
criteria for the submission of expenditure deadline extension requests 
for CDBG-DR grantees in receipt of funds under the Appropriations Act. 
The May 11, 2015, notice requires these grantees to submit requests for 
the extension of an expenditure deadline at least 120 calendar days in 
advance of the expenditure deadline (80 FR 26944). Since the May 11, 
2015, notice was published, the Department subsequently received, 
reviewed, and acted upon expenditure deadline extension requests from a 
number of CDBG-DR grantees in receipt of funds under the Appropriations 
Act. In some instances, the Department observed that events and 
circumstances beyond the control of the grantee may require grantees to 
request an extension of an expenditure deadline after the 120-calendar-
day deadline has passed. The Department is therefore amending this 
requirement of the May 11, 2015, notice to provide that a grantee 
``submits the completed CDBG-DR Expenditure Deadline Extension Request 
template and any attachments to HUD in order to request consideration 
of the extension request at least 120 calendar days in advance of the 
expenditure deadline on the funds (or 60 days for funds expiring in 
calendar year 2015). HUD may, however, also accept requests from CDBG-
DR grantees for the extension of an expenditure deadline less than 120 
calendar days in advance of the deadline upon receipt of a letter from 
the chief executive officer of the grantee requesting the extension and 
a demonstration by the grantee that the request is required in order to 
achieve program missions. Grantees are advised however, that time 
constraints may not permit HUD to act upon requests that are received 
in close proximity to an expenditure deadline.''
    2. Urgent need national objective certification requirements. The 
March 5, 2013, notice (78 FR 14329) provided grantees receiving funds 
under the Appropriations Act with a waiver of the certification 
requirements for the documentation of the urgent need national 
objective, located at Sec. Sec.  570.208(c) and 570.483(d), until 2 
years after the date the Department obligates funds to a grantee. The 
May 11, 2015, notice allowed grantees seeking a waiver of an 
expenditure deadline to simultaneously seek an extension of the urgent 
need certification waiver. The extension of the urgent need 
certification waiver, however, is currently only effective after its 
publication in the Federal Register. This approach presents challenges 
for CDBG-DR grantees who receive an extension of an expenditure 
deadline for an activity associated with the urgent need certification, 
with the extended expenditure deadline in effect but with the urgent 
need certification waiver still requiring publication in the Federal 
Register.
    To accommodate the timely expenditure of funds, HUD is modifying 
the temporary, streamlined urgent need waiver and alternative 
requirement in paragraph VI.A.1.f. of the March 5, 2013, notice (78 FR 
14336). This waiver and alternative requirement supersedes the 
information published in the May 11, 2015, notice and will allow 
grantees to more effectively implement urgent recovery activities by 
aligning the applicable urgent need national objective criteria with 
the expenditure deadline on the use of funds. The March 5, 2013, notice 
is modified to add the following alternative requirement for grantees 
that receive an extension of the expenditure deadline: For activities 
designed to respond to a disaster-related impact that poses a serious 
and immediate threat to the health or welfare of the community, the 
grantee may continue to use the urgent need national objective until 
the end of the new expenditure deadline if the grantee meets the 
following requirements from the March 5, 2013, notice: (1) Before 
seeking the expenditure deadline extension, the grantee must reference 
in its Action Plan the type, scale, and location of the disaster-
related impacts addressed by each program and/or activity that will 
meet the urgent need national objective; (2) before seeking the 
expenditure deadline extension, the grantee must identify these 
disaster related impacts in its Action Plan needs assessment; (3) the 
needs assessment must be updated as new or more detailed/accurate 
disaster-related impacts are known; and (4) the grantee must document 
how all programs and/or activities funded under the urgent need 
national objective respond to a disaster-related impact identified by 
the grantee.
    3. Alternative requirement to permit extended time for the 
provision of interim mortgage assistance (State of New York only). In 
the Federal Register notice published on March 5, 2013, the Department 
established an alternative requirement to 42 U.S.C. 5305(a)(8) to 
extend the authority of grantees under the Appropriations Act to 
provide interim mortgage assistance to qualified individuals from 3 
months to up to 20 months (78 FR 14345). A grantee using this 
alternative requirement is required to document in its policies and 
procedures how it will determine the amount of assistance to be 
provided is necessary and reasonable. The State of New York has 
requested a modification of the 20-month limitation on the provision of 
interim mortgage assistance to authorize the assistance for a period of 
up to 36 months.
    Under the State's existing Interim Mortgage Assistance (IMA) 
program, financial assistance is available to eligible applicants to 
the NY Rising Housing Recovery Program who demonstrate financial 
difficulty in paying their mortgage due to additional housing expenses 
incurred as a result of their primary residence no longer being 
habitable. Interim mortgage assistance may be provided for past, 
current, and future debt obligations of the mortgage, capped at $3,000 
per month for a maximum of 20 months or $60,000.
    On November 15, 2013, the Department approved Amendment 4 to the 
State's disaster recovery Action Plan to allocate $80,000,000 to the 
initial State IMA program. On May 27, 2014, the Department approved 
Amendment 6 to the State's disaster recovery Action Plan to modify the 
calculation of the IMA grant award based on a participant's monthly 
mortgage amount for their primary residence and proof of an additional 
housing payment. On April 13, 2014, the Department approved Amendment 8 
to the State's disaster recovery Action Plan to enable the State to 
calculate partial IMA grant awards that reflect rental housing expenses 
incurred by participants while displaced, less any rental assistance 
received from insurance or government agencies.
    At the time the State submitted a request for a modification of the 
alternative requirement, 454 program participants were receiving IMA 
assistance and approximately 25 percent of those participants were low- 
and moderate-income households. In its request for a modification of 
the alternative requirement, the State indicated that in the absence of 
additional time to provide assistance, 287 IMA recipients would no 
longer qualify for IMA funds within the succeeding 12 months and that 
26 percent of those recipients were low- and moderate-income 
households. In its

[[Page 7569]]

request to provide IMA payments for a period of up to 36 months, the 
State cited a number of unanticipated developments that contributed to 
delays in the completion of assisted housing projects. Most notably, 
the State pointed to the prospect of increased National Flood Insurance 
Program (NFIP) claim payments to NY Rising program participants as a 
result of fraudulent damage assessments conducted on behalf of the NFIP 
in the immediate aftermath of the disaster. The State indicated that 
uncertainty surrounding these payments, and the potential impact of the 
payments on the amount of CDBG-DR funds ultimately available to the 
homeowner, contributed to delays and supports an extended period of 
availability for IMA. Other factors cited by the State as contributing 
to the need for extended IMA are the limited pool of contractors 
experienced in undertaking the elevation of homes and the shorter 
Northeastern United States construction season. The State further noted 
that its own clarification process, through which applicants may appeal 
the ultimate amount of their CDBG-DR award, can also slow progress in 
completing repairs and contribute to the need for additional IMA.
    The State proposed to implement the extended period for IMA by 
initially maintaining the current 20 months of assistance for IMA 
participants. At the end of the 20-month period of assistance, the 
State may subsequently determine a need for an additional 16 months of 
IMA, for a total not to exceed 36 months of assistance. When a need for 
an extension of IMA is identified, the State will conduct an inspection 
of the property to determine if substantial construction progress has 
been made. If substantial construction progress has been made, the 
State may provide IMA for the additional authorized period of time, for 
a total period of assistance up to 36 months. If the inspection 
indicates that substantial progress has not been made, the extension of 
IMA will be provided only when the recipient agrees to participate in 
the newly established construction program within the NY Rising Housing 
Recovery Program. Under the construction program, the State will 
contract for and manage, on behalf of the IMA recipient, the 
rehabilitation of the IMA recipient's home. Prior to its initial 
implementation of the construction program, the State will determine 
the need for the IMA extension in those instances where substantial 
construction progress has not occurred and will give priority to the 
rehabilitation of homes for those IMA recipients receiving a total up 
to 36 months of IMA.
    After reviewing the State's request, and for the State of New 
York's IMA program only, the Department is modifying the provision of 
the March 5, 2013, Federal Register notice that limits the provision of 
interim mortgage assistance to a period of 20 months and establishing 
an alternative requirement that allows for the payment of assistance 
for a period of up to 36 months if the State meets the other 
requirements described in the above paragraph. The goal of this 
alternative requirement is to provide an extended period of IMA in 
order to minimize the risk of foreclosure of storm damaged homes while 
they are being rehabilitated with CDBG-DR funds and to return IMA 
recipients to their rehabilitated homes as quickly as possible. The 
State must implement this alternative requirement consistent with the 
approach outlined in its request and as described herein. This waiver 
and alternative requirement shall remain in effect until December 31, 
2017, after which the State shall be authorized to offer interim 
mortgage assistance for a period no more than 20 months. Interim 
mortgage assistance is an authorized eligible public service activity 
and the State is reminded that IMA expenditures are subject to the 15 
percent cap on public services established pursuant to 42 U.S.C. 
5305(a)(8).
    Within 30 days of the effective date of this notice, the State must 
begin to implement its construction program for IMA recipients 
receiving an extended period of assistance and without substantial 
construction progress in the rehabilitation of their home. The State 
must have fully implemented the construction program for all IMA 
recipients within 6 months of the effective date of this notice. In 
addition, the State's policies and procedures must:
    (1) Document how the State will determine that ``substantial 
progress'' has or has not been made in the rehabilitation of an IMA 
recipient's home;
    (2) Document how the State will determine that the amount and 
period of assistance to be provided under this alternative requirement 
is necessary and reasonable;
    (3) Document how the State will prioritize the rehabilitation of 
homes of IMA recipients receiving a total up to 36 months of IMA;
    (4) Include internal controls designed to ensure that IMA provided 
to recipients is being used for its authorized purpose; and
    (5) Include a plan for assisting recipients that exhaust their IMA 
after 36 months but continue to have a need for assistance because the 
rehabilitation of their home has not been completed.

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 at 800-877-8339 (this is a toll-free number).

    Dated: February 8, 2016.
Nani A. Coloretti,
Deputy Secretary.
[FR Doc. 2016-02913 Filed 2-11-16; 8:45 am]
 BILLING CODE 4210-67-P



                                                                                   Federal Register / Vol. 81, No. 29 / Friday, February 12, 2016 / Notices                                                  7567

                                                     12,000 respondents from Individuals or                  FOR FURTHER INFORMATION CONTACT:                      FR 60490), October 16, 2014 (79 FR
                                                     Households and the estimated hour                       Stanley Gimont, Director, Office of                   62182), January 8, 2015 (80 FR 1039),
                                                     burden per response is 1.17 hours).                     Block Grant Assistance, Department of                 April 2, 2015 (80 FR 17772), May 11,
                                                       (6) An estimate of the total public                   Housing and Urban Development, 451                    2015 (80 FR 26942), August 25, 2015 (80
                                                     burden (in hours) associated with the                   7th Street SW., Room 7286, Washington,                FR 51589), and November 18, 2015 (80
                                                     collection: The total estimated annual                  DC 20410, telephone number 202–708–                   FR 72102), referred to collectively in
                                                     hour burden associated with this                        3587. Persons with hearing or speech                  this notice as the ‘‘prior notices.’’ The
                                                     collection is 38,160 hours.                             impairments may access this number                    requirements of the prior notices
                                                       (7) An estimate of the total public                   via TTY by calling the Federal Relay                  continue to apply, except as modified
                                                     burden (in cost) associated with the                    Service at 800–877–8339. Facsimile                    by this notice.1
                                                     collection: The estimated total annual                  inquiries may be sent to Mr. Gimont at                II. Applicable Rules (Including
                                                     cost burden associated with this                        202–401–2044. (Except for the ‘‘800’’                 Clarifying Guidance), Statutes,
                                                     collection of information is $2,205,000.                number, these telephone numbers are                   Waivers, and Alternative Requirements
                                                       Dated: February 9, 2016.                              not toll-free.) Email inquiries may be
                                                                                                             sent to disaster_recovery@hud.gov.                       The Appropriations Act authorizes
                                                     Samantha Deshommes,                                                                                           the Secretary to waive, or specify
                                                     Acting Chief, Regulatory Coordination                   SUPPLEMENTARY INFORMATION:
                                                                                                                                                                   alternative requirements for, any
                                                     Division, Office of Policy and Strategy, U.S.           Table of Contents                                     provision of any statute or regulation
                                                     Citizenship and Immigration Services,
                                                                                                             I. Background                                         that the Secretary administers in
                                                     Department of Homeland Security.
                                                                                                             II. Applicable Rules, Statutes, Waivers, and          connection with HUD’s obligation, or
                                                     [FR Doc. 2016–02942 Filed 2–11–16; 8:45 am]
                                                                                                                   Alternative Requirements                        use by the recipient, of these funds
                                                     BILLING CODE 9111–97–P                                  III. Catalog of Federal Domestic Assistance           (except for requirements related to fair
                                                                                                             IV. Finding of No Significant Impact                  housing, nondiscrimination, labor
                                                                                                             I. Background                                         standards, and the environment).
                                                     DEPARTMENT OF HOUSING AND                                                                                     Waivers and alternative requirements
                                                     URBAN DEVELOPMENT                                          The Appropriations Act (Pub. L. 113–               are based upon a determination by the
                                                                                                             2, approved January 29, 2013) made                    Secretary that good cause exists and that
                                                     [Docket No. FR–5696–N–18]
                                                                                                             available $16 billion in CDBG–DR funds                the waiver or alternative requirement is
                                                     Additional Clarifying Guidance,                         for necessary expenses related to                     not inconsistent with the overall
                                                     Waivers and Alternative Requirements                    disaster relief, long-term recovery,                  purposes of title I of the Housing and
                                                     for Grantees in Receipt of Community                    restoration of infrastructure and                     Community Development Act of 1974
                                                     Development Block Grant Disaster                        housing, and economic revitalization in               (42 U.S.C. 5301 et seq.) (HCD Act).
                                                     Recovery Funds Under Public Law                         the most impacted and distressed areas,               Regulatory waiver authority is also
                                                     113–2 for the Submission of                             resulting from a major disaster declared              provided by 24 CFR 5.110, 91.600, and
                                                     Expenditure Deadline Extension                          pursuant to the Robert T. Stafford                    570.5.
                                                     Requests and Urgent Need                                Disaster Relief and Emergency                            For the waivers and alternative
                                                     Certification Extensions and for the                    Assistance Act of 1974 (42 U.S.C. 5121                requirements described in this notice,
                                                     Provision of Interim Mortgage                           et. seq.) (Stafford Act) due to Hurricane             the Secretary has determined that good
                                                     Assistance by the State of New York                     Sandy and other eligible events in                    cause exists and that the waiver and
                                                                                                             calendar years 2011, 2012, and 2013. On               alternative requirements are not
                                                     AGENCY:  Office of the Assistant                        March 1, 2013, the President issued a                 inconsistent with the overall purpose of
                                                     Secretary for Community Planning and                    sequestration order pursuant to section               the HCD Act. Grantees may request
                                                     Development, HUD.                                       251A of the Balanced Budget and                       waivers and alternative requirements
                                                     ACTION: Notice.                                         Emergency Deficit Control Act, as                     from the Department as needed to
                                                                                                             amended (2 U.S.C. 901a), and reduced                  address specific needs related to their
                                                     SUMMARY:   This notice provides                         the amount of funding for CDBG–DR                     recovery activities. Under the
                                                     additional clarifying guidance for all                  grants under the Appropriations Act to                requirements of the Appropriations Act,
                                                     Community Development Block Grant                       $15.18 billion. To date, a total of $15.18            waivers must be published in the
                                                     Disaster Recovery (CDBG–DR) grantees                    billion has been allocated or set aside:              Federal Register at least 5 days before
                                                     in receipt of funds under the Disaster                  $13 billion in response to Hurricane                  the effective date of such waiver.
                                                     Relief Appropriations Act, 2013 (the                    Sandy, $514 million in response to                       1. Timeline for the submission of
                                                     Appropriations Act), with regard to the                 disasters occurring in 2011 or 2012,                  expenditure deadline extension
                                                     submission of requests for an extension                 $655 million in response to 2013                      requests. The Appropriations Act
                                                     of the 2-year expenditure deadline                      disasters, and $1 billion set aside for the           requires the Department to obligate all
                                                     established for funds provided under                    National Disaster Resilience                          funds provided under the
                                                     the Appropriations Act and the                          Competition.                                          Appropriations Act by September 30,
                                                     continued use of the alternative urgent                    This notice applies to all CDBG–DR                 2017, and requires grantees to expend
                                                     need national objective. This notice also               grantees in receipt of allocations under              funds within 24-months of the date on
                                                     provides an alternative requirement for                 the Appropriations Act, which are                     which the Department obligates funds to
                                                     New York State as a grantee in receipt                  described within the Federal Register                 a grantee. The Appropriations Act also
                                                     of CDBG–DR funds under the
asabaliauskas on DSK9F6TC42PROD with NOTICES2




                                                                                                             notices published by the Department on                authorizes the Office of Management
                                                     Appropriations Act. This alternative                    March 5, 2013 (78 FR 14329), April 19,                and Budget (OMB) to grant waivers of
                                                     requirement addresses the period of                     2013 (78 FR 23578), May 29, 2013 (78                  the 24-month expenditure deadline.
                                                     time in which interim mortgage                          FR 32262), August 2, 2013 (78 FR
                                                     assistance may be provided to                           46999), November 18, 2013 (78 FR                        1 Links to the prior notices, the text of the

                                                     beneficiaries in the State’s housing                    69104), December 16, 2013 (78 FR                      Appropriations Act, and additional guidance
                                                     recovery programs.                                                                                            prepared by the Department for CDBG–DR grants,
                                                                                                             76154), March 27, 2014 (79 FR 17173),                 are available on the HUD Exchange Web site:
                                                     DATES: Effective Date: February 17,                     June 3, 2014 (79 FR 31964), July 11,                  https://www.hudexchange.info/cdbg-dr/cdbg-dr-
                                                     2016.                                                   2014 (79 FR 40133), October 7, 2014 (79               laws-regulations-and-federal-register-notices/.



                                                VerDate Sep<11>2014   17:38 Feb 11, 2016   Jkt 238001   PO 00000   Frm 00071   Fmt 4703   Sfmt 4703   E:\FR\FM\12FEN1.SGM   12FEN1


                                                     7568                          Federal Register / Vol. 81, No. 29 / Friday, February 12, 2016 / Notices

                                                     OMB authorized the Department to                        years after the date the Department                   notice published on March 5, 2013, the
                                                     provide CDBG–DR grantees with                           obligates funds to a grantee. The May                 Department established an alternative
                                                     expenditure deadline extensions for                     11, 2015, notice allowed grantees                     requirement to 42 U.S.C. 5305(a)(8) to
                                                     activities that are inherently long-term                seeking a waiver of an expenditure                    extend the authority of grantees under
                                                     and where it would be impracticable to                  deadline to simultaneously seek an                    the Appropriations Act to provide
                                                     expend funds within the 24-month                        extension of the urgent need                          interim mortgage assistance to qualified
                                                     period and still achieve program                        certification waiver. The extension of                individuals from 3 months to up to 20
                                                     missions, up to amounts approved by                     the urgent need certification waiver,                 months (78 FR 14345). A grantee using
                                                     OMB. In the Federal Register notice                     however, is currently only effective after            this alternative requirement is required
                                                     published on May 11, 2015, (80 FR                       its publication in the Federal Register.              to document in its policies and
                                                     26942), the Department established the                  This approach presents challenges for                 procedures how it will determine the
                                                     process and criteria for the submission                 CDBG–DR grantees who receive an                       amount of assistance to be provided is
                                                     of expenditure deadline extension                       extension of an expenditure deadline for              necessary and reasonable. The State of
                                                     requests for CDBG–DR grantees in                        an activity associated with the urgent                New York has requested a modification
                                                     receipt of funds under the                              need certification, with the extended                 of the 20-month limitation on the
                                                     Appropriations Act. The May 11, 2015,                   expenditure deadline in effect but with               provision of interim mortgage assistance
                                                     notice requires these grantees to submit                the urgent need certification waiver still            to authorize the assistance for a period
                                                     requests for the extension of an                        requiring publication in the Federal                  of up to 36 months.
                                                     expenditure deadline at least 120                       Register.                                                Under the State’s existing Interim
                                                     calendar days in advance of the                            To accommodate the timely                          Mortgage Assistance (IMA) program,
                                                     expenditure deadline (80 FR 26944).                     expenditure of funds, HUD is modifying                financial assistance is available to
                                                     Since the May 11, 2015, notice was                      the temporary, streamlined urgent need                eligible applicants to the NY Rising
                                                     published, the Department subsequently                  waiver and alternative requirement in                 Housing Recovery Program who
                                                     received, reviewed, and acted upon                      paragraph VI.A.1.f. of the March 5,                   demonstrate financial difficulty in
                                                     expenditure deadline extension requests                 2013, notice (78 FR 14336). This waiver               paying their mortgage due to additional
                                                     from a number of CDBG–DR grantees in                    and alternative requirement supersedes                housing expenses incurred as a result of
                                                     receipt of funds under the                              the information published in the May                  their primary residence no longer being
                                                     Appropriations Act. In some instances,                  11, 2015, notice and will allow grantees              habitable. Interim mortgage assistance
                                                     the Department observed that events                     to more effectively implement urgent                  may be provided for past, current, and
                                                     and circumstances beyond the control of                 recovery activities by aligning the                   future debt obligations of the mortgage,
                                                     the grantee may require grantees to                     applicable urgent need national                       capped at $3,000 per month for a
                                                     request an extension of an expenditure                  objective criteria with the expenditure               maximum of 20 months or $60,000.
                                                                                                             deadline on the use of funds. The March                  On November 15, 2013, the
                                                     deadline after the 120-calendar-day
                                                                                                             5, 2013, notice is modified to add the                Department approved Amendment 4 to
                                                     deadline has passed. The Department is
                                                                                                             following alternative requirement for                 the State’s disaster recovery Action Plan
                                                     therefore amending this requirement of
                                                                                                             grantees that receive an extension of the             to allocate $80,000,000 to the initial
                                                     the May 11, 2015, notice to provide that
                                                                                                             expenditure deadline: For activities                  State IMA program. On May 27, 2014,
                                                     a grantee ‘‘submits the completed
                                                                                                             designed to respond to a disaster-related             the Department approved Amendment 6
                                                     CDBG–DR Expenditure Deadline
                                                                                                             impact that poses a serious and                       to the State’s disaster recovery Action
                                                     Extension Request template and any
                                                                                                             immediate threat to the health or                     Plan to modify the calculation of the
                                                     attachments to HUD in order to request
                                                                                                             welfare of the community, the grantee                 IMA grant award based on a
                                                     consideration of the extension request at                                                                     participant’s monthly mortgage amount
                                                                                                             may continue to use the urgent need
                                                     least 120 calendar days in advance of                                                                         for their primary residence and proof of
                                                                                                             national objective until the end of the
                                                     the expenditure deadline on the funds                                                                         an additional housing payment. On
                                                                                                             new expenditure deadline if the grantee
                                                     (or 60 days for funds expiring in                                                                             April 13, 2014, the Department
                                                                                                             meets the following requirements from
                                                     calendar year 2015). HUD may,                                                                                 approved Amendment 8 to the State’s
                                                                                                             the March 5, 2013, notice: (1) Before
                                                     however, also accept requests from                                                                            disaster recovery Action Plan to enable
                                                                                                             seeking the expenditure deadline
                                                     CDBG–DR grantees for the extension of                                                                         the State to calculate partial IMA grant
                                                                                                             extension, the grantee must reference in
                                                     an expenditure deadline less than 120                   its Action Plan the type, scale, and                  awards that reflect rental housing
                                                     calendar days in advance of the                         location of the disaster-related impacts              expenses incurred by participants while
                                                     deadline upon receipt of a letter from                  addressed by each program and/or                      displaced, less any rental assistance
                                                     the chief executive officer of the grantee              activity that will meet the urgent need               received from insurance or government
                                                     requesting the extension and a                          national objective; (2) before seeking the            agencies.
                                                     demonstration by the grantee that the                   expenditure deadline extension, the                      At the time the State submitted a
                                                     request is required in order to achieve                 grantee must identify these disaster                  request for a modification of the
                                                     program missions. Grantees are advised                  related impacts in its Action Plan needs              alternative requirement, 454 program
                                                     however, that time constraints may not                  assessment; (3) the needs assessment                  participants were receiving IMA
                                                     permit HUD to act upon requests that                    must be updated as new or more                        assistance and approximately 25 percent
                                                     are received in close proximity to an                   detailed/accurate disaster-related                    of those participants were low- and
                                                     expenditure deadline.’’                                 impacts are known; and (4) the grantee                moderate-income households. In its
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                                                        2. Urgent need national objective                    must document how all programs and/                   request for a modification of the
                                                     certification requirements. The March 5,                or activities funded under the urgent                 alternative requirement, the State
                                                     2013, notice (78 FR 14329) provided                     need national objective respond to a                  indicated that in the absence of
                                                     grantees receiving funds under the                      disaster-related impact identified by the             additional time to provide assistance,
                                                     Appropriations Act with a waiver of the                 grantee.                                              287 IMA recipients would no longer
                                                     certification requirements for the                         3. Alternative requirement to permit               qualify for IMA funds within the
                                                     documentation of the urgent need                        extended time for the provision of                    succeeding 12 months and that 26
                                                     national objective, located at                          interim mortgage assistance (State of                 percent of those recipients were low-
                                                     §§ 570.208(c) and 570.483(d), until 2                   New York only). In the Federal Register               and moderate-income households. In its


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                                                                                   Federal Register / Vol. 81, No. 29 / Friday, February 12, 2016 / Notices                                                 7569

                                                     request to provide IMA payments for a                   IMA recipients receiving a total up to 36               (5) Include a plan for assisting
                                                     period of up to 36 months, the State                    months of IMA.                                        recipients that exhaust their IMA after
                                                     cited a number of unanticipated                            After reviewing the State’s request,               36 months but continue to have a need
                                                     developments that contributed to delays                 and for the State of New York’s IMA                   for assistance because the rehabilitation
                                                     in the completion of assisted housing                   program only, the Department is                       of their home has not been completed.
                                                     projects. Most notably, the State pointed               modifying the provision of the March 5,
                                                                                                                                                                   III. Catalog of Federal Domestic
                                                     to the prospect of increased National                   2013, Federal Register notice that limits
                                                                                                                                                                   Assistance
                                                     Flood Insurance Program (NFIP) claim                    the provision of interim mortgage
                                                     payments to NY Rising program                           assistance to a period of 20 months and                 The Catalog of Federal Domestic
                                                     participants as a result of fraudulent                  establishing an alternative requirement               Assistance number for the disaster
                                                     damage assessments conducted on                         that allows for the payment of assistance             recovery grants under this notice is
                                                     behalf of the NFIP in the immediate                     for a period of up to 36 months if the                14.269.
                                                     aftermath of the disaster. The State                    State meets the other requirements                    IV. Finding of No Significant Impact
                                                     indicated that uncertainty surrounding                  described in the above paragraph. The
                                                                                                             goal of this alternative requirement is to               A Finding of No Significant Impact
                                                     these payments, and the potential
                                                                                                             provide an extended period of IMA in                  (FONSI) with respect to the
                                                     impact of the payments on the amount
                                                                                                             order to minimize the risk of foreclosure             environment has been made in
                                                     of CDBG–DR funds ultimately available
                                                                                                             of storm damaged homes while they are                 accordance with HUD regulations at 24
                                                     to the homeowner, contributed to delays                                                                       CFR part 50, which implement section
                                                     and supports an extended period of                      being rehabilitated with CDBG–DR
                                                                                                             funds and to return IMA recipients to                 102(2)(C) of the National Environmental
                                                     availability for IMA. Other factors cited                                                                     Policy Act of 1969 (42 U.S.C.
                                                     by the State as contributing to the need                their rehabilitated homes as quickly as
                                                                                                             possible. The State must implement this               4332(2)(C)). The FONSI is available for
                                                     for extended IMA are the limited pool                                                                         public inspection between 8 a.m. and 5
                                                     of contractors experienced in                           alternative requirement consistent with
                                                                                                             the approach outlined in its request and              p.m. weekdays in the Regulations
                                                     undertaking the elevation of homes and                                                                        Division, Office of General Counsel,
                                                     the shorter Northeastern United States                  as described herein. This waiver and
                                                                                                             alternative requirement shall remain in               Department of Housing and Urban
                                                     construction season. The State further                                                                        Development, 451 7th Street SW., Room
                                                                                                             effect until December 31, 2017, after
                                                     noted that its own clarification process,                                                                     10276, Washington, DC 20410–0500.
                                                                                                             which the State shall be authorized to
                                                     through which applicants may appeal                                                                           Due to security measures at the HUD
                                                                                                             offer interim mortgage assistance for a
                                                     the ultimate amount of their CDBG–DR                                                                          Headquarters building, an advance
                                                                                                             period no more than 20 months. Interim
                                                     award, can also slow progress in                                                                              appointment to review the docket file
                                                                                                             mortgage assistance is an authorized
                                                     completing repairs and contribute to the                                                                      must be scheduled by calling the
                                                                                                             eligible public service activity and the
                                                     need for additional IMA.                                                                                      Regulations Division at 202–708–3055
                                                                                                             State is reminded that IMA
                                                        The State proposed to implement the                  expenditures are subject to the 15                    (this is not a toll-free number). Hearing-
                                                     extended period for IMA by initially                    percent cap on public services                        or speech-impaired individuals may
                                                     maintaining the current 20 months of                    established pursuant to 42 U.S.C.                     access this number through TTY by
                                                     assistance for IMA participants. At the                 5305(a)(8).                                           calling the Federal Relay Service at 800–
                                                     end of the 20-month period of                              Within 30 days of the effective date of            877–8339 (this is a toll-free number).
                                                     assistance, the State may subsequently                  this notice, the State must begin to                    Dated: February 8, 2016.
                                                     determine a need for an additional 16                   implement its construction program for                Nani A. Coloretti,
                                                     months of IMA, for a total not to exceed                IMA recipients receiving an extended                  Deputy Secretary.
                                                     36 months of assistance. When a need                    period of assistance and without                      [FR Doc. 2016–02913 Filed 2–11–16; 8:45 am]
                                                     for an extension of IMA is identified,                  substantial construction progress in the              BILLING CODE 4210–67–P
                                                     the State will conduct an inspection of                 rehabilitation of their home. The State
                                                     the property to determine if substantial                must have fully implemented the
                                                     construction progress has been made. If                 construction program for all IMA                      DEPARTMENT OF HOUSING AND
                                                     substantial construction progress has                   recipients within 6 months of the                     URBAN DEVELOPMENT
                                                     been made, the State may provide IMA                    effective date of this notice. In addition,
                                                     for the additional authorized period of                 the State’s policies and procedures                   [Docket No. FR–5927–N–01]
                                                     time, for a total period of assistance up               must:
                                                     to 36 months. If the inspection indicates                  (1) Document how the State will                    Mortgage and Loan Insurance
                                                     that substantial progress has not been                  determine that ‘‘substantial progress’’               Programs Under the National Housing
                                                     made, the extension of IMA will be                      has or has not been made in the                       Act—Debenture Interest Rates
                                                     provided only when the recipient agrees                 rehabilitation of an IMA recipient’s                  AGENCY:  Office of the Assistant
                                                     to participate in the newly established                 home;                                                 Secretary for Housing—Federal Housing
                                                     construction program within the NY                         (2) Document how the State will                    Commissioner, HUD.
                                                     Rising Housing Recovery Program.                        determine that the amount and period of               ACTION: Notice.
                                                     Under the construction program, the                     assistance to be provided under this
                                                     State will contract for and manage, on                  alternative requirement is necessary and              SUMMARY:   This notice announces
                                                     behalf of the IMA recipient, the                        reasonable;
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                                                                                                                                                                   changes in the interest rates to be paid
                                                     rehabilitation of the IMA recipient’s                      (3) Document how the State will                    on debentures issued with respect to a
                                                     home. Prior to its initial implementation               prioritize the rehabilitation of homes of             loan or mortgage insured by the Federal
                                                     of the construction program, the State                  IMA recipients receiving a total up to 36             Housing Administration under the
                                                     will determine the need for the IMA                     months of IMA;                                        provisions of the National Housing Act
                                                     extension in those instances where                         (4) Include internal controls designed             (the Act). The interest rate for
                                                     substantial construction progress has                   to ensure that IMA provided to                        debentures issued under section
                                                     not occurred and will give priority to                  recipients is being used for its                      221(g)(4) of the Act during the 6-month
                                                     the rehabilitation of homes for those                   authorized purpose; and                               period beginning January 1, 2016, is 21⁄4


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Document Created: 2016-02-12 01:23:50
Document Modified: 2016-02-12 01:23:50
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.
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 Citation81 FR 7567 

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