[Federal Register Volume 76, Number 162 (Monday, August 22, 2011)]
[Notices]
[Pages 52340-52341]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-21418]



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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5554-N-01]


Additional Waiver Granted for the State of New York's CDBG 
Disaster Recovery Grants--The Drawing Center

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

ACTION: Notice.

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SUMMARY: This notice advises the public of an additional waiver 
applicable to the Community Development Block Grant (CDBG) disaster 
recovery grants provided to the State of New York for the purpose of 
assisting in the recovery from the September 11, 2001, terrorist 
attacks on New York City. As described in the SUPPLEMENTARY INFORMATION 
section of this notice, HUD is authorized by statute and regulations to 
waive statutory and regulatory requirements and specify alternative 
requirements for this purpose upon the request of the grantee. HUD 
previously published Federal Register notices applicable to these 
grants on January 28, 2002, February 7, 2002, March 18, 2002, May 22, 
2002, May 16, 2003, and April 12, 2004.

DATES: Effective Date: August 29, 2011.

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 800-877-8339. Facsimile 
inquiries may be sent to Mr. Davis at 202-401-2044. (Except for the 
``800'' number, these telephone numbers are not toll-free.)

SUPPLEMENTARY INFORMATION:

Authority To Grant Waivers

    The three grants covered by this Notice are governed by the fifth 
proviso under the 2001 Emergency Supplemental Appropriations Act for 
Recovery from and Response to Terrorist Attacks on the United States 
(Pub. L. 107-38, approved September 18, 2001); by section 434 of title 
IV of the Departments of Veterans Affairs and Housing and Urban 
Development, and Independent Agencies Appropriations Act, 2002 (Pub. L. 
107-73, approved November 26, 2001 (Fiscal Year (FY) 2002 HUD 
Appropriations Act); by chapter 13 of division B of the Department of 
Defense and Emergency Supplemental Appropriations for Recovery From and 
Response to Terrorist Attacks on the United States Act, 2002 (Pub. L. 
107-117, approved January 10, 2002) (FY 2002 Department of Defense 
Appropriation); and by chapter 13 of title II of the 2002 Supplemental 
Appropriations Act for Further Recovery From and Response to Terrorist 
Attacks on the United States (Pub. L. 107-206, approved August 2, 2002) 
(FY 2002 Recovery and Response to Terrorist Attacks Supplemental).
    The third proviso of section 434 of the FY 2002 HUD Appropriations 
Act and the fourth proviso of the FY 2002 Recovery and Response to 
Terrorist Attacks Supplemental authorize 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 grant 
funds, except for requirements related to fair housing, 
nondiscrimination, labor standards, and the environment, upon a finding 
that such waiver is required to facilitate the use of such funds.

Waiver Justification

    Upon a request from the State of New York, this notice waives 42 
U.S.C. 5305(a)(2) to the extent necessary to allow for an additional 
eligible activity: retirement of short-term debt service for costs 
incurred in the amount not to exceed $2,000,000, by The Drawing Center, 
a Lower Manhattan-based nonprofit organization, for the expansion of 
its site at 35 Wooster Street, New York, NY 10013. With this waiver, 
the short-term debt will not be forgiven, but will be fully retired. No 
portion of this debt was incurred prior to the supplemental 
appropriation to the State of New York under the Community Development 
Block Grant Disaster Recovery Program. When the space adjacent to The 
Drawing Center's existing facility recently became available, the 
organization purchased it with a short-term commercial loan. Due to the 
extraordinarily fast and competitive nature of the Lower Manhattan real 
estate market and the cost savings experienced with expansion of the 
existing facility into an adjacent site rather than relocation or new 
construction at a new site, HUD has considered this request and finds 
that the retirement of the short-term debt presents a cost savings 
versus the alternative of expansion into a new facility that is not 
adjacent to the existing facility. Further, the expanded facility would 
provide space for educational and public programs and expand gallery 
space which provides for public benefit. The following waiver (together 
with previously granted waivers and alternative requirements) is 
necessary to facilitate the use of these funds. HUD also agrees that it 
is consistent with the overall purposes of the Housing and Community 
Development Act of 1974 and the Cranston-Gonzalez National Affordable 
Housing Act, as amended.

Applicable Rules, Statutes, Waivers, and Alternative Requirements

    1. Expiration of waivers and alternative requirements. In Federal 
Register notices published on January 28, 2002 (67 FR 4164), February 
7, 2002 (67 FR 5845), March 18, 2002 (67 FR 12042), May 22, 2002 (67 FR 
36017), May 16, 2003 (68 FR 26640), and April 12, 2004 (69 FR 19211), 
the Department promulgated waivers and alternative requirements 
necessary to facilitate the use of $700 million in disaster recovery 
funds awarded to New York's Empire State Development Corporation and 
$2.0 billion and $783 million awarded to New York's Lower Manhattan 
Development Corporation. In combination with today's waiver, these 
waivers and alternative requirements will be in effect until all CDBG 
disaster recovery funds have been expended and the grants have been 
officially closed.
    2. Applicability of State CDBG requirements. Except for those 
waivers and alternative requirements published in prior notices and 
this notice, statutory and regulatory provisions governing the 
Community Development Block Grant program for states, including those 
at 24 CFR subpart I, shall apply to the use of these funds.
    3. Retirement of short-term debt service. 42 U.S.C. 5305(a)(2) and 
the implementing regulation at 24 CFR 570.482(a) are waived to the 
extent necessary to allow for an additional eligible activity: 
retirement of short-term debt service for costs incurred by The Drawing 
Center, for the expansion of its site at 35 Wooster Street, New York, 
NY 10013.

Catalog of Federal Domestic Assistance

    The Catalog of Federal Domestic Assistance numbers for the disaster 
recovery grants under this notice are as follows: 14.218; 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

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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 
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 Relay Service at 800-877-8339.

    Dated: July 29, 2011.
Mercedes M[aacute]rquez,
Assistant Secretary, Community Planning and Development.
[FR Doc. 2011-21418 Filed 8-19-11; 8:45 am]
BILLING CODE 4210-67-P