[Federal Register Volume 72, Number 43 (Tuesday, March 6, 2007)]
[Notices]
[Pages 10020-10022]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-3831]



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Part IV





Department of Housing and Urban Development





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 Additional Waivers Granted to and Alternative Requirements for the 
State of Mississippi Under Public Laws 109-148 and 109-234; Notice

Federal Register / Vol. 72, No. 43 / Tuesday, March 6, 2007 / 
Notices

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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5089-N-04]


Additional Waivers Granted to and Alternative Requirements for 
the State of Mississippi Under Public Laws 109-148 and 109-234

AGENCY: Office of the Secretary, HUD.

ACTION: Notice of waivers and alternative requirements.

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SUMMARY: As described in the Supplementary Information section of this 
Notice, HUD is authorized by statute to waive statutory and regulatory 
requirements and specify alternative requirements for this purpose, 
upon the request of the state grantees. This Notice describes the 
additional waivers for the disaster recovery grants made to the State 
of Mississippi under the subject appropriations acts.

DATES: Effective Date: March 12, 2007.

FOR FURTHER INFORMATION CONTACT: Clifford Taffet, Acting Director, 
Disaster Recovery and Special Issues Division, Office of Block Grant 
Assistance, Department of Housing and Urban Development, Room 7286, 451 
Seventh Street, SW., Washington, DC 20410, telephone number (202) 708-
2684. Persons with hearing or speech impairments may access this number 
via TTY by calling the Federal Information Relay Service at (800) 877-
8339. FAX inquiries may be sent to Mr. Taffet at (202) 708-1744. 
(Except for the ``800'' number, these telephone numbers are not toll-
free.)

SUPPLEMENTARY INFORMATION:

Authority To Grant Waivers

    The first federal fiscal year 2006 supplemental appropriation for 
the Community Development Block Grant (CDBG) program was in the 
Department of Defense, Emergency Supplemental Appropriations to Address 
Hurricanes in the Gulf of Mexico, and Pandemic Influenza Act, 2006 
(Pub. L. 109-148, approved December 30, 2005) which appropriated $11.5 
billion for necessary expenses related to disaster relief, long-term 
recovery, and restoration of infrastructure in the most impacted and 
distressed areas related to the consequences of the covered disasters.
    The second 2006 supplemental appropriation was in Chapter 9 of 
Title II of the Emergency Supplemental Appropriations Act for Defense, 
the Global War on Terror, and Hurricane Recovery, 2006 (Pub. L. 109-
234, approved June 15, 2006) which appropriated $5.2 billion in 
Community Development Block Grant funds also for necessary expenses 
related to disaster relief, long-term recovery, and restoration of 
infrastructure in the most impacted and distressed areas related to the 
consequences of the covered disasters. The 2006 Acts each 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 funds and guarantees, except for requirements 
related to fair housing, nondiscrimination, labor standards, and the 
environment, upon a request by the State and a finding by the Secretary 
that such a waiver would not be inconsistent with the overall purpose 
of the statute. The following additional waivers and alternative 
requirements for funds provided under either or both 2006 Acts are in 
response to requests from the State of Mississippi. (A waiver or 
alternative requirement will apply to assistance provided under either 
Act unless otherwise specified in this Notice.)
    The Secretary finds that the following waivers and alternative 
requirements, as described below, are not inconsistent with the overall 
purpose of Title I of the Housing and Community Development Act of 
1974, as amended (42 U.S.C. 5301 et seq.) (the 1974 Act), or the 
Cranston-Gonzalez National Affordable Housing Act, as amended (42 
U.S.C. 12721 et seq.).
    Under the requirements of the Department of Housing and Urban 
Development Act, as amended (42 U.S.C. 3535(q)), regulatory waivers 
must be published in the Federal Register.
    Except as described in this and other notices applicable to these 
grants, statutory and regulatory provisions governing the Community 
Development Block Grant program for states, including those at 24 CFR 
part 570, shall apply to the use of these funds. In accordance with the 
appropriations acts cited above, HUD will reconsider every waiver in 
this Notice on the two-year anniversary of the day this Notice is 
published.

Waiver Justification

    In general, waivers already granted to the State of Mississippi and 
alternative requirements already specified for CDBG disaster recovery 
grant funds provided under Public Law 109-148 and Public Law 109-234 
apply. The notices in which these prior waivers and alternative 
requirements applicable to Mississippi appear are 71 FR 7666, published 
February 13, 2006; 71 FR 34457, published June 14, 2006; 71 FR 62372, 
published October 24, 2006, and 71 FR 63337, published October 30, 
2006.
    The provisions of this Notice do not apply to funds provided under 
the annual CDBG program. The provisions provide additional flexibility 
in program design and implementation for the disaster recovery grants.
    Housing incentives to resettle in Mississippi. The state may offer 
disaster recovery or mitigation housing incentives to promote housing 
development or resettlement in particular geographic areas. The 
Department is waiving the 1974 Act and associated regulations to the 
extent necessary to make this use of grant funds eligible.
    Eligibility--buildings for the general conduct of government. The 
State requested an eligibility waiver to allow it to fund buildings for 
the general conduct of government under the economic development 
programs in its Action Plan. The requested change will allow the State 
to assist construction, reconstruction, or rehabilitation of such 
buildings when the assistance meets the criteria in the Action Plan. 
HUD considered the state's request and agrees that it is consistent 
with the overall purposes of the 1974 Act for the state to be allowed 
to use the grant funds under this notice to fund critical projects 
involving repair of buildings for the general conduct of government 
that the state has selected in accordance with the method described in 
its Action Plan for Disaster Recovery and that the state has determined 
have substantial value in promoting disaster recovery.
    Public benefit for certain economic development activities. For its 
economic development programs, the state has requested a waiver of the 
public benefit standards for its 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

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critical activity. The State has made public in its Action Plan the 
disaster recovery needs each activity is addressing and the public 
benefits expected.
    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.
    Overall benefit to low- and moderate-income persons. The State of 
Mississippi has asked the Secretary to waive the requirement that at 
least 50 percent of the CDBG funds received by the state under the 
grant made under Public Law 109-148 be for activities that benefit 
persons of low and moderate income (see 71 FR 7666, published February 
13, 2006, for the waiver granted under Public Law 109-148 to the 
original 70 percent requirement, and 71 FR 34457 and 71 FR 62372 for 
additional waivers specific to Mississippi). With this Notice, HUD is 
not replacing the October 24 waiver and alternative requirements but 
adding to them. (Substantial amendments to the State's program after 
the date of this notice may trigger further updates.)
    In considering the waiver request, HUD applied the logic and 
principles used in the October 24 waiver to the economic development 
activities under the State's Economic Development program, approved 
December 19, 2006.
    HUD also considered that the State has, to some extent, followed 
the Department's recommendation that it make a reasonable effort to 
address the recovery needs of its low- and moderate-income residents. 
The State designed its economic development grants and loans selection 
criteria to consider benefit to persons of low and moderate income. 
Further, it has funded Phase II of the homeowner assistance program and 
reconstruction of public housing, both designed to primarily or 
entirely benefit income eligible persons. However, the State has not 
yet published Action Plan amendments describing the uses of all grant 
funds.
    HUD considered the data and the state's justification for its 
request. Considering that the State has not yet budgeted all of its 
grant funds in the Action Plan, it has a large amount of unbudgeted 
funds, it will be reallocating previously budgeted funds, and a 
substantial number of low- and moderate-income persons were impacted by 
the disaster, HUD decided that it still does not have enough 
information to conclude that the State has compelling need for a waiver 
of overall benefit for the entire grant at this time.
    Based on the compelling need presented for the activities already 
included in the Action Plan for Disaster Recovery for the grant made 
under Pub. L. 109-148, HUD is modifying the waiver granted in the 
October 24 Notice to grant the state a waiver of the requirement that 
at least 50 percent of the supplemental CDBG grant funds provided under 
Pub. L. 109-148 primarily benefit persons of low and moderate income, 
to the extent necessary to permit Mississippi to carry out the 
activities contained in its Action Plan amendment dated December 15, 
2006, provided that the State must give reasonable priority for the 
balance of its funds to activities that will primarily benefit persons 
of low and moderate income. HUD expects the grantee to maintain low- 
and moderate-income benefit documentation for each activity providing 
such benefit. This waiver of overall benefit does not cover activities 
added or modified under a substantial amendment to the activities 
mentioned in the Action Plan submission listed above.
    Previously, the State agreed to examine other housing needs and to 
pursue other sources of funding to provide assistance for other 
compelling housing needs, such as for homeless and special needs 
populations, for low-income renters, and for uninsured low-income 
homeowners. HUD notes that Phase II addresses some of these needs. The 
Department expects the State to continue these efforts.

Applicable Rules, Statutes, Waivers, and Alternative Requirements

    1. General note. Except as described in this Notice, the statutory, 
regulatory, and notice provisions that shall apply to the use of these 
funds are:
    a. Those governing the funds appropriated under Public Law 109-148 
and already published in the Federal Register, including those in 
Notices 71 FR 7666, published February 13, 2006; 71 FR 34457, published 
June 14, 2006; 71 FR 62372, published October 24, 2006; and 71 FR 
63337, published October 30, 2006.
    b. Those governing the Community Development Block Grant program 
for states, including those at 42 U.S.C. 5301 et seq. and 24 CFR part 
570.
    2. Eligibility--buildings for the general conduct of government. 42 
U.S.C. 5305(a) is waived to the extent necessary to allow the state to 
use the grant funds under this notice to assist construction, 
reconstruction, or rehabilitation of buildings for the general conduct 
of government that the State has selected in accordance with the method 
described in its Action Plan for Disaster Recovery and that the State 
has determined have substantial value in promoting disaster recovery.
    3. Eligibility--incentives to resettle in Mississippi. 42 U.S.C. 
5305(a) is waived to the extent necessary to make eligible incentives 
to resettle in Mississippi in accordance with the state's approved 
Action Plan and published program design.
    4. Public benefit standards for economic development activities. 
For economic development activities designed to create or retain jobs 
or businesses, 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 grantee shall report and maintain documentation on the 
creation and retention of (a) total jobs, (b) number of jobs within 
certain salary ranges, (c) average amount of assistance provided per 
job by activity or program, and (d) types of jobs. Paragraph (g) of 24 
CFR 570.482 is also waived to the extent its provisions are related to 
public benefit.
    5. Overall benefit. 42 U.S.C. 5301(c) and 5304(b)(3), and 24 CFR 
570.484 and 24 CFR 91.325(b)(4)(ii) with respect to the overall benefit 
requirement are waived to the extent necessary to permit Mississippi to 
carry out the activities contained in its March 31, June 28, and July 
12, 2006, Action Plan submissions, and its submission dated December 
15, 2006, provided that:
    a. The State must give reasonable priority for the balance of its 
funds to activities which will primarily benefit persons of low and 
moderate income; and
    b. The State will maintain documentation of the low- and moderate-
income benefit attributable to each assisted activity, if feasible, and 
report on such benefit to HUD as part of the regular quarterly reports.
    6. Information collection approval note. HUD has approval for 
information collection requirements in accordance with the Paperwork 
Reduction Act of 1995 (44 U.S.C. 3501-3520) under OMB control number 
2506-0165, which expires August 31, 2007. In accordance with the 
Paperwork Reduction Act, HUD may not conduct or sponsor, nor is a 
person required to respond to, a collection of information unless the 
collection displays a valid control number.

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Catalog of Federal Domestic Assistance

    The Catalog of Federal Domestic Assistance numbers for the disaster 
recovery grants under this Notice are as follows: 14.219; 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 Office of the Rules Docket Clerk, Office of 
General Counsel, Department of Housing and Urban Development, Room 
10276, 451 Seventh Street, SW., Washington, DC 20410-0500.

    Dated: February 27, 2007.
Pamela H. Patenaude,
Assistant Secretary for Community Planning and Development.
 [FR Doc. E7-3831 Filed 3-5-07; 8:45 am]
BILLING CODE 4210-67-P