[Federal Register Volume 75, Number 204 (Friday, October 22, 2010)]
[Notices]
[Pages 65368-65370]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-26777]
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-5441-N-01]
Additional Waivers Granted to and Alternative Requirements for
the State of Illinois' CDBG Disaster Recovery Grant Under Public Law
110-329
AGENCY: Office of the Secretary, HUD.
ACTION: Notice of additional waivers and alternative requirements.
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SUMMARY: This notice describes additional waivers and alternative
requirements applicable to the Community Development Block Grant (CDBG)
disaster recovery grant provided to the State of Illinois for the
purpose of assisting in the recovery related to the consequences of the
State's 2008 disasters. HUD previously published allocation and
application notices applicable to this grant on February 13, 2009 (74
FR 7244), and August 14, 2009 (74 FR 41146).
DATES: Effective Date: October 27, 2010.
FOR FURTHER INFORMATION CONTACT: Scott Davis, Director, Disaster
Recovery and Special Issues Division, 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 Information Relay Service at telephone number 800-877-8339.
Facsimile inquiries may be sent to Mr. Davis at facsimile number 202-
401-2044. (Except for the ``800'' number, these telephone numbers are
not toll free.)
SUPPLEMENTARY INFORMATION:
Authority To Grant Waivers
The Consolidated Security, Disaster Assistance, and Continuing
Appropriations Act, 2009 (Pub. L. 110-329, approved September 30, 2008)
(hereinafter, ``Second 2008 Act'' to differentiate it from the earlier
2008 Supplemental Appropriations Act, Public Law 110-252, approved June
30, 2008) appropriated $6.5 billion, to remain available until
expended, in CDBG funds for necessary expenses related to disaster
relief, long-term recovery, and restoration of infrastructure, housing
and economic revitalization in areas affected by hurricanes, flooding,
and other natural disasters occurring during 2008 for which the
President declared a major disaster under title IV of the Robert T.
Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121
et seq.).
The Second 2008 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 the
obligation by the Secretary or use by the recipient of these funds and
guarantees, except for requirements related to fair housing,
nondiscrimination, labor standards, and the environment (including
requirements concerning lead based paint), upon a request by a state
grantee explaining why such waiver is required to facilitate the use of
such funds or guarantees and a finding by the Secretary that such a
waiver would not be inconsistent with the overall purpose of Title I of
the Housing and Community Development Act of 1974 (HCD Act).
Additionally, regulatory waiver authority is provided by 24 CFR 5.110,
91.600, and 570.5. The following application and reporting waivers and
alternative requirements are in response to a request received from the
State of Illinois regarding its use of funds under the Second 2008 Act.
The Secretary finds that the following waivers and alternative
requirements, as described below, are necessary to facilitate use of
the funds for the statutory purposes and are not inconsistent with the
overall purpose of Title I of the HCD Act or the Cranston-Gonzalez
National Affordable Housing Act, as amended.
Under the requirements of the Second 2008 Act and the Department of
Housing and Urban Development Reform Act of 1989 (the HUD Reform Act),
regulatory waivers must be justified and published in the Federal
Register. Except as described in this Notice, statutory and regulatory
provisions governing the CDBG program for states, including those at 24
CFR part 570, shall apply to the use of these funds. In accordance with
the Second 2008 Act, HUD will reconsider every waiver in this Notice on
the two-year anniversary of the day this Notice is published.
Waiver Justification
Except as described below, the waivers, alternative requirements,
and statutory changes published in notices on February 13, 2009 (74 FR
7244) and August 14, 2009 (74 FR 41146) will continue to apply to the
State's CDBG disaster recovery funds appropriated under the Second 2008
Act (Pub. L. 110-329). The actions below provide additional flexibility
in program design and implementation and implement statutory
requirements unique to this appropriation. The provisions of this
Notice do not apply to funds provided under the annual CDBG program.
National Objective Documentation for Economic Development
Activities. For the national objective documentation for business
assistance activities, Illinois has asked to apply individual salaries
or wages per job and the income limits for a household of one, rather
than the usual CDBG standard of total household income and the limits-
by-total household size. Illinois has asserted that this proposed
documentation would be simpler and quicker for participating lenders to
administer, easier to verify, and would not misrepresent the amount of
low- and moderate-income benefit provided. Upon consideration, HUD is
granting this waiver, which has also been granted to a number of other
state grantees under the Second 2008 Act. It will play a key role in
streamlining the State's documentation process because it allows
collection of wage data for
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each position created or retained from the assisted businesses, rather
than from each individual household.
Eligibility--buildings for the general conduct of government.
Illinois has requested a limited waiver of the prohibition on funding
buildings for the general conduct of government as many of these
buildings were damaged by the 2008 disasters. HUD has considered this
request and agrees that it is consistent with the overall purposes of
the 1974 Act. Therefore, Illinois may use funds provided under the
Second 2008 Act to repair or reconstruct buildings used for the general
conduct of government so long as (1) the buildings are selected in
accordance with a method described in the State's Action Plan for
Disaster Recovery, and (2) the State determines that the selected
buildings have substantial value in promoting disaster recovery.
However, as stipulated by the Second 2008 Act, funds may not be used
for activities reimbursable by, or for which funds are made available
by, the Federal Emergency Management Agency or the Army Corps of
Engineers.
Public benefit for certain economic development activities.
Illinois has requested a waiver of the public benefit standards for
certain economic development activities. The public benefit provisions
set standards for individual economic development activities (such as a
single loan to a business) and for economic development activities in
the annual aggregate. Currently, public benefit standards limit the
amount of CDBG assistance per job retained or created, or the amount of
CDBG assistance per low and moderate-income person to which goods or
services are provided by the activity. Essentially, the public benefit
standards are a proxy for all the other possible public benefits
provided by an assisted activity. These dollar thresholds were set more
than a decade ago and under disaster recovery conditions (which often
require a larger investment to achieve a given result), can be too low
and thus impede recovery by limiting the amount of assistance the
grantee may provide to a critical activity.
After consideration, this Notice waives the public benefit
standards for the cited activities, except that the State shall report
and maintain documentation on the creation and retention of (a) Total
jobs, (b) number of jobs within certain salary ranges, (c) the average
amount of assistance per job and activity or program, and (d) the types
of jobs. As a conforming change for the same activities or programs,
HUD is also waiving paragraph (g) of 24 CFR 570.482 to the extent its
provisions are related to public benefit. Illinois has made public in
its Action Plan the disaster recovery needs each activity is
addressing.
Housing incentives to resettle in disaster-affected communities.
The State believes that incentives are vital to encourage its citizens
to move out of harms' way to safer areas outside the 100 year
floodplain. Upon consideration, the Department is waiving 42 U.S.C
5305(a) of the 1974 Act and associated regulations to permit the State
to offer disaster recovery or mitigation housing incentives to promote
housing development or resettlement in particular geographic areas.
Limitation on emergency grant payments. HUD is waiving 42 U.S.C.
5305(a) to allow the State to extend interim mortgage assistance to
qualified individuals for up to 20 months. The State plans to create an
Interim Mortgage Assistance Program to assist homeowners (likely to be
applicants in the State's future buyout program) with mortgage payments
and other eligible property carrying costs while they may be living in
temporary housing. As it takes more than three months for buyout
decisions to be made and implemented, this will provide key assistance
to qualified homeowners during this interim period.
Applicable Rules, Statutes, Waivers, and Alternative Requirements
1. Except as described in this Notice, statutory and regulatory
provisions governing the Community Development Block Grant program for
states, including those at 42 U.S.C. 5301 et seq. and 24 CFR part 570,
and those described in Federal Register notices 74 FR 7244 and 74 FR
41146, shall apply to the use of these funds. Also, please note that
any program changes implemented as a result of the waivers published in
today's Notice must be in accordance with the State's approved Action
Plan for Disaster Recovery.
2. National Objective Documentation for Economic Development
Activities. 24 CFR 570.483(b)(4)(i) is waived to allow the State to
establish low- and moderate-income jobs benefit by documenting for each
person employed the name of the business, type of job, and the annual
wages or salary of the job. HUD will consider the person income-
qualified if the annual wages or salary of the job is at or under the
HUD-established income limit for a one-person family.
3. Buildings for the general conduct of government. 42 U.S.C.
5305(a) and associated regulations are waived to the extent necessary
to allow Illinois to fund the rehabilitation or reconstruction of
public buildings that are otherwise ineligible and that the State
selects in accordance with its approved Action Plan for Disaster
Recovery and that the State has determined have substantial value in
promoting disaster recovery.
4. Public benefit for certain economic development activities. For
economic development activities designed to create or retain jobs or
businesses (including but not limited to long-term, short-term, and
infrastructure projects), the public benefit standards at 42 U.S.C.
5305(e)(3) and 24 CFR 570.482(f)(1), (2), (3), (4)(i), (5), and (6) are
waived, except that the State shall report and maintain documentation
on the creation and retention of total jobs, the number of jobs within
certain salary ranges, the average amount of assistance provided per
job by activity or program, and the types of jobs. Paragraph (g) of 24
CFR 570.482 is also waived to the extent its provisions are related to
public benefit.
5. Housing incentives to resettle in disaster-affected communities.
42 U.S.C 5305(a) of the 1974 Act and associated regulations are waived
to permit the State to offer disaster recovery or mitigation housing
incentives to promote housing development or resettlement in particular
geographic areas. The incentives must be in accordance with State's
approved Action Plan and published program design(s), and the State
must maintain documentation that the costs are necessary and
reasonable.
6. Limitation on emergency grant payments. 42 U.S.C. 5305(a) is
waived so that Illinois can use funds under the Second 2008 Act to
extend interim mortgage assistance to qualified individuals for up to
20 months.
Catalog of Federal Domestic Assistance
The Catalog of Federal Domestic Assistance numbers for the disaster
recovery grant under this Notice are as follows: 14.218 and 14.228.
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). 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, Room 10276, 451 7th Street, SW.,
Washington, DC 20410-0500. Due to security measures at the HUD
Headquarters building, an advance appointment to
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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 toll-free Federal Information Relay Service at 800-877-
8339.
Dated: October 4, 2010.
Mercedes M. M[aacute]rquez,
Assistant Secretary for Community Planning and Development.
[FR Doc. 2010-26777 Filed 10-21-10; 8:45 am]
BILLING CODE 4210-67-P