10020 Federal Register / Vol. 72, No. 43 / Tuesday, March 6, 2007 / Notices 

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. 

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, longterm 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 CranstonGonzalez 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 lowand 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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Federal Register / Vol. 72, No. 43 / Tuesday, March 6, 2007 / Notices 10021 

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 moderateincome 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 moderateincome 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 lowincome renters, and for uninsured lowincome 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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10022 Federal Register / Vol. 72, No. 43 / Tuesday, March 6, 2007 / Notices 

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 


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