3942 Federal Register / Vol. 89, No. 14 / Monday, January 22, 2024 / Notices 

c. SBA will conduct the match against 

the Disaster Loans Case Files system of 

records (SBA 20) via Disaster Lending 

System using the FEMA Disaster ID 

number, FEMA Registration ID number, 

Product (Home/Business), and 

Registration Occupant Social Security 

number (SSN) to create a New PreApplication. The records SBA receives 

are of DHS/FEMA applicants who are 

referred to SBA for disaster loan 

assistance. Controls on the DHS/FEMA 

export of data are in place to ensure that 

SBA only receives unique and valid 

referral records. 

d. When SBA matches its records to 

those provided by DHS/FEMA, two 

types of matches are possible: a full 

match and a partial match. A full match 

exists when an SBA record matches a 

DHS/FEMA record on each of the 

following data fields: FEMA Disaster ID 

number, FEMA Registration ID number, 

Product (Home/Business), and 

Registration Occupant SSN. A partial 

match exists when an SBA record 

matches a DHS/FEMA record on one or 

more, but not all data fields listed 

above. If an exact (full) match is found 

among SBA records for the current 

imported record, the current record is 

automatically marked as a duplicate by 

the system with appropriate comments 

inserted to indicate the corresponding 

record that matched. If a partial match 

is found during the import process, the 

record is routed for manual 

examination, investigation, and 

resolution to determine whether it is 

truly a duplicate record. 

2. DHS/FEMA–SBA Duplication of 

Benefits Automated Match Process: 

a. Both DHS/FEMA and SBA will act 

as the recipient (i.e., matching) agencies. 

SBA will extract and provide to DHS/ 

FEMA data from its Disaster Loans Case 

Files system of records and accessed via 

the Disaster Lending System. DHS/ 

FEMA will match the data SBA 

provides to records in its Disaster 

Recovery Assistance Files system of 

records, accessed through NEMIS–IA 

System, via the FEMA Registration ID 

number. SBA will issue a data call to 

DHS/FEMA requesting that DHS/FEMA 

return any records for which NEMIS–IA 

found a match. For each match found, 

DHS/FEMA sends all applicant 

information that it collects during the 

registration process to SBA so that SBA 

may match these records with its 

registrant data in the Disaster Lending 

System. SBA’s Disaster Lending System 

manual process triggers an automated 

interface to query NEMIS-IA, using the 

FEMA Registration ID number as the 

unique identifier. 

b. DHS/FEMA will return the 

following fields for the matching DHS/ 

FEMA record, if any: FEMA Disaster 

Number; FEMA Registration ID number; 

applicant and if applicable, co-applicant 

name; damaged dwelling address; 

phone number; SSN; damaged property 

data; insurance policy information; 

contact address (if different from 

damaged dwelling address); flood zone 

and flood insurance data; FEMA 

Housing Assistance and Other Needs 

Assistance data; program, award level, 

eligibility, inspection data; verification 

of ownership and occupancy; and 

approval or rejection data. DHS/FEMA 

will return no result when the FEMA 

Registration ID number is not matched. 

c. For each matching record received 

from DHS/FEMA, SBA determines 

whether DHS/FEMA assistance 

duplicates SBA loan assistance. If SBA 

loan officers determine that there is a 

duplication of benefits, the duplicated 

amount is deducted from the eligible 

SBA loan amount. 

3. DHS/FEMA–SBA Status Update 

Automated Match Process: 

a. DHS/FEMA will act as the recipient 

(i.e., matching) agency. DHS/FEMA will 

match records from its Disaster 

Recovery Assistance Files system of 

records to the records extracted and 

provided by SBA from its Disaster Loans 

Case Files system of records. The 

purpose of this process is to update 

DHS/FEMA applicant information with 

the status of SBA loan determinations. 

The records provided by SBA will be 

automatically imported into NEMIS–IA 

to update the status of existing applicant 

records. The records DHS/FEMA 

receives from SBA are of DHS/FEMA 

applicants who were referred to SBA for 

disaster loan assistance. Controls on the 

SBA export of data are in place to 

ensure that DHS/FEMA only receives 

unique and valid referral records. 

b. SBA will provide to DHS/FEMA 

information and data, including but not 

limited to the following: personal 

information about SBA applicants, 

including name, damaged dwelling 

address, and SSN; application data; loss 

to personal property data; loss 

mitigation data; SBA loan data; and SBA 

event data. DHS/FEMA will conduct the 

match using FEMA Disaster Number 

and FEMA Registration ID number. 

c. Loan data for matched records will 

be recorded and displayed in NEMIS– 

IA. Loan data will also be run through 

NEMIS–IA business rules; potentially 

duplicative categories of assistance are 

sent to FEMA’s Program Review process 

for manual evaluation of any 

duplication of benefits. If FEMA review 

staff determines that there is a 

duplication of benefits, the duplicated 

amount is deducted from the e1igible 

award. FEMA applicants receive a letter 

(hardcopy or electronic) that indicates 

the amount of their eligible award and 

their ability to appeal. 

SYSTEM OF RECORDS: 

DHS/FEMA–008 Disaster Recovery 

Assistance Files (87 FR 7852, February 

10, 2022) accesses records from its 

Disaster Recovery Assistance Files 

system of records, as provided by the 

DHS/FEMA—008 SORN, through its 

NEMIS–IA system, and matches them to 

the records that SBA provides from its 

SBA-20 Disaster Loans Case Files, 86 FR 

64979 (November 19, 2021) system of 

records, as amended. SBA 20 Disaster 

Loans Case Files (86 FR 64979, 

November 19, 2021) uses its Disaster 

Lending System to access records from 

its Disaster Loan Case Files system of 

records and match them to the records 

that DHS/FEMA provides from its 

Disaster Recovery Assistance Files 

system of records. 

Mason C. Clutter, 

Chief Privacy Officer, Department of 

Homeland Security. 

[FR Doc. 2024–01057 Filed 1–19–24; 8:45 am] 

BILLING CODE 9110–9L–P 

DEPARTMENT OF HOUSING AND 

URBAN DEVELOPMENT 

[Docket No. FR–6412–N–01] 

Waivers and Alternative Requirements 

for Community Development Block 

Grant Disaster Recovery (CDBG–DR) 

and Community Development Block 

Grant National Disaster Resilience 

(CDBG–NDR) Grantees 

AGENCY: Office of the Assistant 

Secretary for Community Planning and 

Development, HUD. 

ACTION: Notice. 

SUMMARY: This notice governs 

Community Development Block Grant 

disaster recovery (CDBG–DR) and 

Community Development Block Grant 

National Disaster Resilience (CDBG– 

NDR) funds awarded under several 

appropriations acts identified in the 

Table of Contents. Specifically, this 

notice provides waivers and establishes 

alternative requirements for certain 

CDBG–DR and CDBG–NDR grantees that 

have submitted requests for waivers and 

alternative requirements for grants 

provided under the public laws cited in 

this notice. 

DATES: Applicability Date: January 29, 

2024. 

FOR FURTHER INFORMATION CONTACT: 

Tennille Parker, Director, Office of 

Disaster Recovery, U.S. Department of 


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Federal Register / Vol. 89, No. 14 / Monday, January 22, 2024 / Notices 3943 

Housing and Urban Development, 451 

7th Street SW, Room 7282, Washington, 

DC 20410, telephone number 202–708– 

3587 (this is not a toll-free number). 

HUD welcomes and is prepared to 

receive calls from individuals who are 

deaf or hard of hearing, as well as 

individuals with speech or 

communication disabilities. To learn 

more about how to make an accessible 

telephone call, please visit: https://

www.fcc.gov/consumers/guides/ 

telecommunications-relay-service-trs. 

Email inquiries may be sent to disaster_

recovery@hud.gov. 

SUPPLEMENTARY INFORMATION: 

Table of Contents 

I. Authority To Grant Waivers 

II. Public Law 113–2 Waivers and 

Alternative Requirements 

III. Public Law 115–123 Waivers and 

Alternative Requirements 

IV. Public Law 116–20 Waivers and 

Alternative Requirements 

V. Finding of No Significant Impact (FONSI) 

I. Authority To Grant Waivers 

Each of the appropriations acts cited 

in the Table of Contents 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 grant funds, except for 

requirements related to fair housing, 

nondiscrimination, labor standards, and 

the environment. HUD may also 

exercise its regulatory waiver authority 

under 24 CFR 5.110, 91.600, and 570.5. 

All waivers and alternative 

requirements authorized in this notice 

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.) (HCDA). The 

good cause for each waiver and 

alternative requirement is summarized 

in this notice. 

II. Public Law 113–2 Waivers and 

Alternative Requirements 

II.A. Isle de Jean Charles Waiver and 

Alternative Requirement for Eligibility 

and National Objective Compliance and 

Use of Program Income (State of 

Louisiana Only) 

The Federal Register notice published 

on June 7, 2016 (81 FR 36557) 

announced the allocation of 

approximately $1 billion of CDBG–NDR 

funds appropriated pursuant to Public 

Law 113–2 for competitive awards 

through the National Disaster Resilience 

Competition (NDRC). Through the 

NDRC, HUD awarded CDBG–NDR funds 

to 13 states and local governments to 

implement innovative and replicable 

activities to increase the resilience of 

communities to future disasters. HUD 

awarded $92.6 million in CDBG–NDR 

funds to the State of Louisiana, 

including $48.3 million to implement 

the Isle de Jean Charles (IDJC) 

Relocation. Additionally, HUD 

published a Federal Register notice on 

February 19, 2019 (84 FR 4836) that 

included a clarification of certain 

actions being taken by the State as part 

of the relocation of the IDJC community. 

The State is using its CDBG–NDR 

funds to support the voluntary 

resettlement of current and former 

residents of the flood-prone Isle de Jean 

Charles to a new and more resilient 

inland community (the ‘‘IDJC 

Resettlement Project’’). In 1955, Isle de 

Jean Charles was a 22,400-acre island. 

At the time of the CDBG–NDR award, 

IDJC had lost 98 percent of its land due 

to subsidence, with only 320 acres 

remaining. The goals of the IDJC 

Resettlement Project are to move 

residents out of harm’s way, to engage 

the Isle de Jean Charles community 

residents in the design of the new 

community, to identify means by which 

the new community can be financially 

sustainable, and to safeguard the 

preservation and continuity of IDJC’s 

diverse cultural identities and 

traditions. 

In the Federal Register notice 

published on February 19, 2019, HUD 

clarified that costs required to restrict 

the use of land as a primary residence 

are eligible costs of the State’s new 

construction and disposition activities 

for relocating island residents. (84 FR at 

4839). HUD also clarified that the 

placement of restrictions and limitations 

on the use of land as a primary 

residence is a condition of the new 

construction and disposition activities 

to relocate IDJC residents out of harm’s 

way into more resilient housing, and not 

acquisition activities triggering buyout 

requirements. Since the award of the 

CDBG–NDR funds, the State has moved 

forward in the planning and 

development of the new community, 

New Isle, and has identified several 

challenges related to the eligibility of 

some project activities and the timeline 

for certain activities to meet a national 

objective, as provided in the CDBG– 

NDR notice (81 FR 36557). The State has 

also identified challenges associated 

with maintaining the affordability of 

New Isle for resettled residents. 

II.A.1. Background and support for 

the waivers and alternative 

requirements necessary for the IDJC 

Resettlement Project. 

The resettlement of the Isle de Jean 

Charles community and the 

development of the more resilient New 

Isle community is a unique effort by the 

State of Louisiana to demonstrate, with 

the support of CDBG–NDR funds, how 

communities nationwide may 

implement the voluntary resettlement of 

a community with diverse cultural 

identities and traditions, when 

confronted with repetitive disasterrelated losses of land mass due to 

climate change. The IDJC Resettlement 

Project has the potential to serve as a 

model for other communities seeking to 

manage the retreat and resettlement of 

communities threatened by climate 

change. 

Almost every IDJC household 

qualifies as low- or moderate-income, 

many are elderly and on fixed incomes, 

and nearly all will face increased overall 

expenses in relocating from IDJC. The 

State has therefore requested the 

following waivers and alternative 

requirements to address the challenges 

related to the eligibility and carrying out 

of activities, meeting of a national 

objective within the approved period of 

performance, and use of program 

income for the IDJC Resettlement 

Project. 

The Department finds that there is 

good cause for the waivers and 

alternative requirements in this section 

because they are necessary to facilitate 

the IDJC Resettlement Project, which 

HUD anticipates will serve as a model 

for communities pursuing the 

resettlement of low- and moderateincome residents to lower-risk areas, 

and further the State’s recovery goal of 

a holistic approach to resettlement of a 

diverse and culturally rich community. 

II.A.2. Activity eligibility of the Isle de 

Jean Charles Resettlement Project. 

In rare instances, when necessary to 

achieve recovery goals, HUD has 

previously granted waivers and 

alternative requirements to allow a 

grantee to treat a large complex project 

with multiple components that 

contribute to long-term recovery and 

resilience as a single eligible activity. 

HUD has determined that the 

components of the IDJC Resettlement 

Project are largely eligible CDBG–NDR 

activities but that the complexity of 

managing multiple separate eligible 

activities as components of the overall 

relocation would detrimentally delay 

the timeline of this critical recovery 

project. Therefore, based on the good 

cause determination described in 

paragraph II.A.1. and to further facilitate 

an efficient implementation of the IDJC 

Resettlement Project, HUD is waiving 

section 105(a) of the HCDA (42 U.S.C. 

5305(a)), as amended, to the extent 


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necessary to create the new eligible 

activity of the ‘‘IDJC Resettlement 

Project,’’ comprised of the Residential 

Assistance Fund (the ‘‘Fund’’) described 

in the next paragraph, as well as the 

acquisition, infrastructure, housing, 

economic development, and public 

service activities described in the State’s 

current, HUD-approved, amended 

CDBG–NDR action plan. The IDJC 

Resettlement Project eligible activity is 

subject to the alternative requirements 

described below. 

The State indicated that one of the 

new activities of the IDJC Resettlement 

Project eligible activity will be the 

establishment of the Fund. The State 

plans to use CDBG–NDR funds, CDBG– 

NDR program income generated by 

economic development activities at New 

Isle, and other sources to capitalize the 

Fund. The State indicated that the Fund 

will be used to assist New Isle 

homeowners with certain monthly costs 

(e.g., termite treatment, property 

insurance, and flood insurance) to 

maintain the affordability and stability 

of the New Isle community. HUD 

recognizes that the relocated residents 

of the New Isle community will have 

new expenses than those incurred while 

living in IDJC and may require 

additional short-term assistance to 

maintain their new homes in New Isle. 

The Department therefore has 

determined that the State’s use of 

CDBG–NDR for the Fund advances the 

Department’s priority to support 

forward-thinking solutions to help lowand moderate-income households, 

facing the imminent threat of sea level 

rise attributable to climate change, to 

relocate to new, more resilient, and 

affordable communities. 

Accordingly, under the waiver 

provided above to establish the IDJC 

Resettlement Project as a single new 

eligible CDBG–NDR activity, the State 

may use CDBG–NDR funds and program 

income to assist low and moderateincome New Isle residents relocated 

from the IDJC community with 

allowable housing costs for up to five 

years, meaning no beneficiary may 

receive more than a total of 5 years of 

this type of assistance or up to a specific 

amount, as determined by the State, to 

maintain the stability and affordability 

of New Isle and resettlement of 

relocated IDJC residents. HUD is also 

establishing an alternative requirement 

that no assistance shall be provided for 

this purpose until the State submits a 

substantial action plan amendment for 

its CDBG–NDR grant. The substantial 

action plan amendment must include 

the following: 

1. A budget for the Fund, 

2. Identify eligible costs under the 

Fund, 

3. Describe how identified costs are 

allowable in accordance with 2 CFR part 

200, subpart E, 

4. Describe the criteria that will be 

used to select beneficiaries and 

determine the amount of assistance 

under the Fund, 

5. The mechanisms and process to 

provide the assistance, 

6. How the State will oversee and 

monitor the administration and use of 

the Fund, and 

7. How the State will ensure public 

transparency regarding the provision of 

assistance and use of the Fund. 

Additionally, CDBG–NDR funds and 

program income, including any portion 

used to finance the Fund, shall not be 

used to compensate beneficiaries for 

losses from disaster-related impacts. 

Finally, as an alternative requirement, 

and in addition to all other 

modifications which constitute a 

substantial amendment requiring HUD 

approval as described in the Federal 

Register notice published on August 7, 

2017 (82 FR 36812 at 36819), the 

deletion of the Fund or any activity that 

is part of the ‘‘IDJC Resettlement 

Project’’ as described in the State’s 

current, HUD-approved, amended 

CDBG–NDR action plan, or the addition 

of any other activities as part of the 

‘‘IDJC Resettlement Project’’ constitute a 

substantial amendment requiring HUD 

approval. 

II.A.3. National objective compliance 

for the IDJC Resettlement Project. 

The additional regulatory waivers and 

alternative requirements provided in 

this section enable the State to 

accomplish its goals for the IDJC 

Resettlement Project. The IDJC 

Resettlement Project aims to foster the 

growth of the New Isle’s residents and 

address their housing, economic, and 

service needs. The IDJC Resettlement 

Project is not merely replacing the 

relocated households’ homes, but is also 

carrying out acquisition, infrastructure, 

housing, economic development, and 

public service activities intended to 

create a sustainable, long-term 

community for these relocated 

residents. For these reasons and based 

on the good cause provided in 

paragraph II.A.1., the Department 

waives the criteria in 24 CFR 570.483(b) 

for the IDJC Resettlement Project eligible 

activity only and establishes the 

following alternative requirement for 

the criteria as a means of addressing the 

objective of benefitting low- and 

moderate-income (LMI) persons. To 

demonstrate that the IDJC Resettlement 

Project eligible activity addresses the 

objective of benefitting LMI persons, the 

State must meet all the applicable 

criteria described below: 

1. The State must determine the 

actual service area benefiting from the 

IDJC Resettlement Project, in accordance 

with the regulations. The service area 

must be primarily residential in 

character with related cultural and 

recreational components (e.g., 

community centers with cultural 

components); 

2. The State must complete the 

housing units for occupancy by the 

households that are part of the original 

IDJC resettlement (at least 34 units of 

housing) and document that at least 70 

percent of those households qualify as 

LMI; 

3. The State must complete the 

community center, marketplace, 

recreational facilities, parks, and 

additional site improvements, as 

described in its approved action plan, as 

part of the New Isle community; 

4. That State must require its Partners 

(as defined in the National Disaster 

Resilience Competition Phase 2 Notice 

of Funding Availability) and 

subrecipients to document that any 

economic development activities 

funded through the IDJC Resettlement 

Project are complete and will increase 

economic opportunity, primarily for 

LMI persons, through the creation of 

permanent jobs. The State may presume 

that any jobs created are held by or 

made available to a low- or moderateincome person, if the economic 

development activities are located in the 

New Isle community; 

5. The State must submit a 

sustainability plan with its substantial 

action plan amendment adding the 

Fund as an activity, that is then 

approved by HUD. The sustainability 

plan must include prominent posting on 

the State’s official website and must 

afford citizens, affected local 

governments, and other interested 

parties a reasonable opportunity to 

examine the plan. The State must notify 

affected citizens through electronic 

mailings, press releases, statements by 

public officials, media advertisements, 

public service announcements, and/or 

contacts with organizations located in or 

serving the target area or neighborhood. 

At a minimum, the sustainability plan 

must include the following information: 

a. An estimate of the amount of taxes 

and insurance required for each home 

per year; 

b. A detailed description of the 

process and timeline for New Isle 

residents to pay for housing costs that 

were once covered by the Fund, after 

their assistance from the Fund has 

ended (i.e., reaches 5 years of assistance 

or maximum amount set by the State) 


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and/or the State concludes its use of the 

Fund; 

c. A description of other financial 

resources, if any, that will be available 

to support beneficiaries with housing 

costs after the State concludes use of the 

Fund; 

d. A detailed description of how the 

State will inform beneficiaries about the 

Fund, terms and conditions for Fund 

assistance, and the beneficiaries’ 

financial responsibilities after assistance 

from the Fund ends; and 

e. How the State will detect and 

prevent fraud, waste, and abuse in the 

administration and use of the Fund. 

II.A.4. Clarification on Public Services 

for the Isle de Jean Charles Resettlement 

Project. 

Additionally, the Federal Register 

notice published on June 7, 2016 (81 FR 

36557) waives 42 U.S.C. 5305(e)(3), 24 

CFR 570.482(f)(1), (2), (3), (4)(i), (5), and 

(6), including the public benefit 

standards at 24 CFR 570.482(g), for 

economic development activities 

designed to create or retain jobs or 

businesses. This waiver continues to 

apply to the State’s CDBG–NDR grant. 

Finally, all public services carried out 

as part of the IDJC Resettlement Project 

shall be exempt from the cap on public 

service expenditures found in section 

105(a)(8) of the HCDA (42 U.S.C. 

5305(a)), as amended. 

II.B. Waivers and Alternative 

Requirements for New Jersey’s CDBG– 

DR Grant Under Public Law 113–2 

(State of New Jersey Only) 

In the Federal Register notices 

published on March 5, 2013 (78 FR 

14329) (the ‘‘March 2013 Notice’’), 

November 18, 2013 (78 FR 69104) (the 

‘‘November 2013 Notice’’), and October 

16, 2014 (79 FR 62182) (the ‘‘October 

2014 Notice’’), HUD awarded a total of 

$4,174,110,000 in CDBG–DR funds to 

the State of New Jersey for recovery 

from Superstorm Sandy from Public 

Law 113–2 of which $380,000,000 were 

for Rebuild by Design (RBD) also under 

Public Law 113–2. 

The Federal Register notice published 

on May 24, 2022 (87 FR 31636) (the 

‘‘May 2022 Notice’’) announced the 

allocation of $228,346,000 of CDBG–DR 

funds under Public Law 117–43 (the 

‘‘2022 Appropriations Act’’) and the 

Federal Register notice published on 

January 18, 2023 (87 FR 3198) (the 

‘‘January 2023 Notice’’) announced the 

allocation of $149,229,000 of CDBG–DR 

funds under Public Law 117–180 (the 

‘‘2023 Appropriations Act’’) for a total 

of $377,575,000 in CDBG–DR funds to 

the State of New Jersey for recovery 

from Tropical Storm Ida (collectively 

referred to as ‘‘the Appropriations 

Acts’’). The 2022 Appropriations Act 

gives the Secretary authority to 

authorize grantees receiving a CDBG–DR 

grant under the 2022 Appropriations 

Acts and prior or future appropriation 

acts for activities authorized under title 

I of the HCDA for a specific qualifying 

disaster(s) to use these funds 

interchangeably and without limitation 

for the same activities in the most 

impacted and distressed (MID) areas 

resulting from a major disaster in prior 

or future appropriation acts, as long as 

the MID areas overlap and the activities 

address unmet needs of both disasters. 

Based on this authority, New Jersey’s 

CDBG–DR grants for Tropical Storm Ida 

and its CDBG–DR grants for Superstorm 

Sandy may be used interchangeably and 

without limitation for the same 

activities in MID areas resulting from 

Superstorm Sandy or Tropical Storm 

Ida, if the MID areas of both disasters 

overlap and the activities address unmet 

needs of both disasters, as described in 

the May 2022 Notice and the January 

2023 Notice. The State has requested, 

and HUD is providing the following 

waivers and alternative requirements to 

the State of New Jersey to carry out 

activities that will benefit Tropical 

Storm Ida beneficiaries. Both waivers 

and alternative requirements provided 

herein will help the State to expedite 

the delivery of assistance through 

programs that address the same 

activities related to unmet recovery 

needs resulting from Superstorm Sandy 

and Tropical Storm Ida in the MID areas 

that overlap. The grantee must describe 

its use of funds in both its CDBG–DR 

action plans for Superstorm Sandy and 

Tropical Storm Ida. 

II.B.1. Waiver to Allow the Use of 

CDBG–DR Funds Provided Under Public 

Law 113–2 for Rental Assistance (State 

of New Jersey only). 

The State’s request notes that after 

Superstorm Sandy, the State identified 

a significant shortage of rental housing 

as a result of the storm, particularly in 

the MID areas, with rental stock being 

virtually non-existent. HUD and the 

State have evaluated the State’s program 

budgets and the State has forecasted 

expenditures to determine that the 

State’s Superstorm Sandy related unmet 

needs will be satisfied with the existing 

programs in place, while impacts 

related to Tropical Storm Ida have 

created new unmet rental needs that 

have further exacerbated issues 

associated with the COVID–19 

pandemic. 

Prior to Tropical Storm Ida, New 

Jersey’s housing conditions were 

already under significant strain from the 

ongoing national housing crisis and 

supply chain issues from the COVID–19 

pandemic. These issues combined with 

the subsequent impacts of the storm 

drastically escalated the State’s housing 

and homelessness crises. At the time of 

the State’s waiver request, the risk of 

eviction in New Jersey was greater than 

anywhere else in the country as 393,000 

households were delinquent on their 

rent. These eviction pressures are faced 

primarily by residents of color, 

households with children, and in urban 

areas—including those disasterimpacted urban areas—where lowincome populations are particularly 

vulnerable. In the State, more than 25 

percent of renter households are 

extremely low income and 73 percent of 

these extremely low-income renters 

suffer from severe housing cost burden. 

Due to the impacts of Tropical Storm 

Ida, over 8,000 homeowners and 4,500 

renters experienced major to severe 

damage to their homes, as defined by 

HUD. The State of New Jersey has 

prioritized housing rehabilitation that 

will primarily benefit LMI households, 

through a phased approach for its 

homeowner program and by limiting its 

rehabilitation of rental housing to 

housing that will be affordable to LMI 

households. However, these units will 

take several years to be fully repaired 

and accessible. During that time, LMI 

residents residing in the MID areas 

could face unaffordable rents on top of 

an affordable housing crisis. Rents in 

the HUD MID-areas have considerably 

increased since Tropical Storm Ida. 

From 2021 to the anticipated launch of 

the State’s CDBG–DR programs in 2023, 

rents in the HUD MID areas will have 

increased in some counties by over 10 

percent and are expected to continue to 

rise over the next two to three years. 

The State plans to use its CDBG–DR 

funds under Public Law 113–2 to offer 

rental assistance and utility payments in 

the form of direct payments to 

homeowners or renters who are 

displaced and homeless or at-risk of 

homelessness as a result of the impacts 

of Tropical Storm Ida when such 

assistance payments are part of a 

homelessness prevention, intermediate 

housing, or rapid rehousing program 

activity, including intermediate housing 

during the repair and reconstruction of 

homes. 

After reviewing the State’s request 

and based on the good cause that the 

waiver and alternative requirements 

will help homeowners and renters that 

are displaced and impacted by Tropical 

Storm Ida to obtain and remain in 

housing that is in limited supply due to 

New Jersey’s ongoing housing and 

homelessness crises, the Department is 

imposing an alternative requirement to 

waive and modify 42 U.S.C. 5305(a)(8) 


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to expand the definition of public 

service to include the following activity: 

provision of rental assistance (e.g. rent, 

security deposits, and utility deposits) 

and utility payments for up to 24 

months for the State of New Jersey’s 

funds provided under Public Law 113– 

2 to address unmet needs from Tropical 

Storm Ida, subject to the following 

alternative requirements. 

This activity is subject to the 15 

percent cap on public services, and no 

beneficiary may receive more than a 

total of 24 months of rental assistance 

and utility payments. A homeowner 

receiving any form of CDBG–DR interim 

mortgage assistance that may be offered 

by the State is not eligible for rental 

assistance or utility payments, as 

authorized by this waiver and 

alternative requirement. 

The State must determine that the 

rental assistance and utility payments 

are needed because the household 

moved from their primary residence due 

to rehabilitation or reconstruction needs 

from Tropical Storm Ida, the household 

is experiencing or is at risk of 

experiencing homelessness and the 

assistance is part of a homelessness 

prevention or rapid rehousing program 

or activity, or other disaster-related 

pressures on the housing market 

necessitate the assistance to support the 

household’s recovery. 

While this waiver and alternative 

requirement will allow the State to 

provide rental assistance and utility 

payments to households impacted by 

Tropical Storm Ida, this does not relieve 

the State of the duty to comply with 

other applicable requirements relating 

to the temporary relocation or 

displacement of households. If a 

household meets the definition of a 

‘‘displaced person’’ under the Uniform 

Relocation Assistance and Real Property 

Acquisition Policies Act of 1970, as 

amended, (42 U.S.C. 4601 et seq.) 

(‘‘URA’’) or Section 104(d) of the HCDA 

(42 U.S.C. 5304(d)) (‘‘Section 104(d)’’), 

the State must provide the displaced 

person with any relocation assistance to 

which they are entitled under law, 

including but not limited to assistance 

authorized under the URA or Section 

104(d), pursuant to those requirements 

in the applicable notices, as modified by 

the waiver of Section 414 of the Stafford 

Act in Section II.B.2., below. 

The goals of this waiver and 

alternative requirement are to prevent 

and minimize the time households are 

experiencing or are at risk of 

experiencing homelessness as a result of 

the qualifying disaster and to provide 

additional time to stabilize persons or 

households in permanent housing 

through the use of CDBG–DR funds for 

rental assistance and utility payments. 

The use of CDBG–DR funds for each of 

these purposes advances the 

Department’s priority to support 

forward-thinking solutions to help 

communities that are struggling to 

house and serve persons and families 

that are homeless or at risk of 

homelessness as a result of a disaster. 

When providing rental assistance and 

utility payments to beneficiaries who 

are at risk of homelessness, the State 

must clearly demonstrate in their action 

plan the concrete steps they will take to 

prevent households from becoming 

homeless after the exhaustion of the 

CDBG–DR rental assistance. In addition, 

in developing their policies and 

procedures, the State must list services 

to be provided and outline a referral 

process that will enable the targeted 

households to apply to live in affordable 

housing units, including those that are 

created under other CDBG–DR funded 

programs. 

HUD has previously certified the 

State’s procedures to detect fraud, 

waste, and abuse prior to the obligation 

of Superstorm Sandy funding. To fortify 

these requirements and achieve a 

targeted use of funds and to safeguard 

against fraud, the State must amend the 

provisions in its policies and 

procedures to show how the State will 

verify the accuracy of information 

provided by applicants to its rental 

assistance and utility payment program, 

how the State will document that the 

applicant used the funds for only the 

eligible uses defined in its action plan 

or the program’s policies and 

procedures, and how the State will 

detect and prevent fraud, waste, and 

abuse in its rental assistance and utility 

payment programs. The State must 

document, in its policies and 

procedures, how it will determine the 

basis of the rental assistance and utility 

payments award for each household 

assisted and that the amount of the 

assistance to be provided is necessary 

and reasonable and not duplicative of 

any other funding source, including 

insurance. To comply with the order of 

assistance requirements in the 

Appropriations Acts, any rental or 

temporary housing assistance provided 

by or made available by the Federal 

Emergency Management Agency 

(FEMA) must first be exhausted prior to 

providing CDBG–DR funds to a 

household for the uses permitted by this 

waiver and alternative requirement. 

II.B.2. Waiver of Section 414 of the 

Stafford Act (42 U.S.C. 5181 (State of 

New Jersey only). 

The State of New Jersey has requested 

a waiver of section 414 of the Stafford 

Act (42 U.S.C. 5181), as amended, for 

real property acquisition, rehabilitation, 

and demolition of real property for 

CDBG–DR activities funded by Public 

Law 113–2 that will address the unmet 

housing needs from Tropical storm Ida. 

Section 414 of the Stafford Act 

provides that ‘‘Notwithstanding any 

other provision of law, no person 

otherwise eligible for any kind of 

replacement housing payment under the 

Uniform Relocation Assistance and Real 

Property Acquisition Policies Act of 

1970 (Pub. L. 91–646) [42 U.S.C. 4601 

et seq.] [(‘‘URA’’)] shall be denied such 

eligibility as a result of his being unable, 

because of a major disaster as 

determined by the President, to meet the 

occupancy requirements set by [the 

URA].’’ Accordingly, homeowner 

occupants and tenants displaced from 

their homes as a result of an identified 

disaster and who would have otherwise 

been displaced as a direct result of any 

acquisition, rehabilitation, or 

demolition of real property for a 

federally funded program or project may 

become eligible for a replacement 

housing payment notwithstanding their 

inability to meet occupancy 

requirements prescribed in the URA. 

The State has requested a waiver of 

section 414 of the Stafford Act to better 

align its CDBG–DR grants funded by 

Public Law 113–2 for Superstorm Sandy 

with its grants funded by the 2022 and 

2023 Appropriations Acts. The State 

contends that this waiver, granted for all 

funds under the 2022 and 2023 

Appropriations Acts, will allow it to 

implement its programs for Tropical 

storm Ida beneficiaries consistently, 

whether the program is being funded 

under Public Law 113–2 or the 2022 and 

2023 Appropriations Acts. 

HUD provided the waiver for grants 

under the 2022 and 2023 

Appropriations Acts to simplify the 

administration of the disaster recovery 

process and reduce the administrative 

burden associated with the 

implementation of section 414 

requirements for projects commencing 

more than one year after the date of the 

Presidentially declared disaster 

considering most of such persons 

displaced by the disaster will have 

returned to their dwellings or found 

another place of permanent residence. 

Therefore, the Department has 

determined that good cause exists for a 

waiver for the State’s funds under 

Public Law 113–2 and waives section 

414 of the Stafford Act and its 

implementing regulation at 49 CFR 

24.403(d)(1) to the extent that they 

would apply to real property 

acquisition, rehabilitation, or 

demolition of real property for a CDBG– 

DR funded project commencing more 


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Federal Register / Vol. 89, No. 14 / Monday, January 22, 2024 / Notices 3947 

than one year after the date of Tropical 

Storm Ida undertaken by the State, or its 

subrecipients, provided that the project 

was not planned, approved, or 

otherwise underway before the date of 

the disaster. 

For purposes of this waiver, a CDBG– 

DR funded project shall be determined 

to have commenced on the earliest of: 

(1) the date of an approved Request for 

Release of Funds and certification; (2) 

the date of completion of the sitespecific review when a program utilizes 

Tiering; or (3) the date of sign-off by the 

approving official when a project 

converts to exempt under 24 CFR 

58.34(a)(12). 

This waiver does not apply with 

respect to persons that meet the 

occupancy requirements to receive a 

replacement housing payment under the 

URA nor does it apply to persons 

displaced or relocated temporarily by 

other HUD-funded programs or projects. 

Such persons’ eligibility for relocation 

assistance and payments under the URA 

is not impacted by this waiver. 

III. Public Law 115–123 Waivers and 

Alternative Requirements 

Revision of Electrical Power System 

Consultation Requirements 

(Commonwealth of Puerto Rico and U.S. 

Virgin Islands Only) 

The Federal Register notice published 

on June 22, 2021 (86 FR 32681) (the 

‘‘June 2021 Notice’’) established the 

requirements for the nearly $28 billion 

in CDBG–DR funds approved February 

9, 2018 by the Further Additional 

Supplemental Appropriations for 

Disaster Relief Requirements Act, 2018 

(Pub. L. 115–123), including $2 billion 

for enhanced or improved electrical 

power systems in the Commonwealth of 

Puerto Rico (the Commonwealth) and 

the U.S. Virgin Islands (USVI) to 

address the impact of Hurricanes Irma 

and Maria on each grantee’s electrical 

power system. 

Because of the unique purpose of this 

$2 billion allocation of CDBG–DR funds, 

in recognition of the many Federal 

agencies that would be providing 

assistance to the Commonwealth and 

the USVI to enhance and improve each 

jurisdiction’s electrical power system, 

and because of the historical and ongoing fiscal and operational challenges 

of each of the public utilities that 

operate the Commonwealth and USVI 

systems, the June 2021 

Noticeestablished a number of on-going 

coordination requirements unique to 

this allocation. 

In February 2020, FEMA and the U.S. 

Department of Energy (DOE) established 

Energy Technical Coordination Teams 

(‘‘TCT’’) at each jurisdiction as a formal 

mechanism for coordination among the 

numerous local and Federal entities 

involved in electricity grid recovery to 

facilitate decision making and ensure 

the best use of expertise, solutions, and 

funds in the implementation of energy 

recovery activities. Section V.A.2.e. of 

the June 2021 Notice requires each 

grantee to consult at least quarterly with 

its respective TCT on one or more of the 

following areas: on the action plan 

required by the June 2021 Notice for the 

use of the CDBG–DR funds and any 

substantial amendments to that plan; 

the evaluation of the capacity of any 

public utility that will receive CDBG– 

DR funds to carry out improvements; 

the identification of opportunities to 

sequence and coordinate on permits and 

approvals necessary to carry out CDBG– 

DR funded electrical power system 

improvement activities, including 

environmental reviews; the technical 

evaluation of proposed electrical power 

system improvements; and 

implementation of applicable electrical 

power system industry standards and 

the commercial availability of system 

components that the grantee proposed 

to fund. 

To ensure the coordination of 

electrical power system improvements 

that may be funded from each grantee’s 

other allocations of CDBG–DR and 

CDBG mitigation (CDBG–MIT) funds 

provided in response to Hurricanes Irma 

and Maria, the June 2021 Notice also 

prohibits the use of other CDBG–DR and 

CDBG–MIT funds for electrical power 

system improvements until HUD 

consults and coordinates with its 

Federal members through the TCTs. The 

June 2021 Notice also provides that 

HUD shall determine when the required 

consultations previously noted shall be 

deemed complete. 

Since the publication of the June 2021 

Notice, each grantee has proactively 

engaged with its respective TCT on a 

wide range of issues associated with its 

planned and on-going electrical power 

system improvements. In January 2022, 

HUD, FEMA, and DOE also executed a 

memorandum of understanding 

establishing a framework outside of the 

TCT for coordination and providing 

technical assistance to the 

Commonwealth. Additionally, following 

Hurricane Fiona, the Administration 

announced the formation of a Puerto 

Rico Grid Recovery and Modernization 

Team, to be led by DOE, to coordinate 

Federal grid recovery and 

modernization efforts. 

In recognition of these developments 

and the critical importance of 

accelerating electrical power system 

improvements following the devastating 

impact of Hurricane Fiona in September 

2022, HUD finds good cause to waive 

and revise the consultation 

requirements of its June 2021 Notice as 

follows: 

Upon approval by HUD of an action 

plan providing for the use of a grantee’s 

total allocation of funds for electrical 

power system improvements as 

provided by the June 2021 Notice: 

(1) Paragraph V.A.2.e of the June 2021 

Notice, and as referenced elsewhere in the 

June 2021 Notice, with respect to TCT 

consultation shall no longer apply; provided 

that, at the request of HUD, each grantee shall 

engage with its TCT to provide updates on 

its implementation of CDBG–DR, CDBG–MIT, 

and other Federal funding for electrical 

power system improvements until grant 

closeout; and 

(2) The consultation requirements at 

paragraph V.B.4 of the June 2021 Notice that 

prohibits grantees from using other CDBG– 

DR and CDBG–MIT funds provided in 

response to Hurricanes Irma and Maria for 

activities to enhance or improve electrical 

power systems until HUD consults and 

coordinates with its Federal members 

through the TCT shall no longer apply. 

HUD will continue to engage its 

Federal partners directly in providing 

ongoing technical assistance to each 

grantee and in monitoring each grantee’s 

use of all CDBG–DR and CDBG–MIT 

funds used for electrical power system 

improvements. HUD will also continue 

to engage its Federal partners through 

the TCTs, the Recovery Support 

Function Leadership Group (RSFLG) 

energy subgroup, and other forums. 

IV. Public Law 116–20 Waivers and 

Alternative Requirements 

Waiver and Alternative Requirement for 

70 Percent Overall Low- and ModerateIncome Benefit Requirement (State of 

California Only) 

The Federal Register notice published 

on January 27, 2020 (85 FR 4681) 

(‘‘January 2020 Notice’’) included an 

allocation of $38,057,527 appropriated 

under the Additional Supplemental 

Appropriations for Disaster Relief Act, 

2019 (Pub. L. 116–20) to the State of 

California for recovery from 2017 

wildfires and 2017–2018 wildfires, 

flooding, mudflows, and debris flows. 

These funds have been provided to meet 

the unmet infrastructure recovery needs 

in the HUD-defined MID areas. Prior to 

this award, HUD also allocated 

$124,155,000 under Public Law 115– 

123 to the State for recovery from the 

same disasters in the Federal Register 

notice published on August 14, 2018 (83 

FR 40314). 

The overall benefit requirement 

established by the HCDA requires that 

70 percent of the aggregate of a grantee’s 


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CDBG–DR fund expenditures shall be 

used to support activities benefiting LMI 

persons. Under certain circumstances, it 

can be difficult for grantees working in 

disaster recovery to meet this overall 

benefit test because the MID areas 

resulting from a disaster may not be 

low- and moderate-income areas, and 

this requirement can therefore (in some 

exceptional cases) limit a grantee’s 

ability to assist those affected by the 

disaster. The January 2020 Notice 

maintained the 70 percent overall 

benefit requirement for all CDBG–DR 

grantees receiving funds under Public 

Law 116–20 and the notice imposed the 

requirements of the February 9, 2018 

notice (83 FR 5844) (‘‘February 2018 

Notice’’), which provides grantees with 

the option of submitting a request to 

HUD for a lower overall benefit 

requirement. Specifically, the February 

2018 Notice allows a grantee to request 

to further reduce its overall benefit 

requirement if it submitted a 

justification that, at a minimum: (a) 

identifies the planned activities that 

meet the needs of its low- and moderateincome population; (b) describes 

proposed activity(ies) and/or program(s) 

that will be affected by the alternative 

requirement, including their proposed 

location(s) and role(s) in the grantee’s 

long-term disaster recovery plan; (c) 

describes how the activities/programs 

identified in (b) prevent the grantee 

from meeting the 70 percent 

requirement; and (d) demonstrates that 

low- and moderate-income persons’ 

disaster-related needs have been 

sufficiently met and that the needs of 

non-LMI persons or areas are 

disproportionately greater, and that the 

jurisdiction lacks other resources to 

serve them. 

The State submitted a request to 

establish a lower overall benefit 

requirement based on the above criteria. 

In its request, the State contends that its 

two established programs: OwnerOccupied Rehabilitation and 

Reconstruction Program (OOR) and 

Multifamily Housing Program funded 

under Public Law 115–123 will meet the 

unmet needs of its LMI populations. 

Specifically, in its OOR program, the 

State has prioritized the needs of LMI 

persons and estimates that the program 

will expend at least 90 percent of funds 

for the benefit of LMI households. The 

Multifamily Housing Program is limited 

to projects that meet the LMI National 

Objective criteria, and the State 

estimates the program will expend 100 

percent of funds for the benefit of LMI 

households. Based on these estimates, 

the total projected LMI benefit 

percentage for the State’s allocation 

under Public Law 115–123 will be 96 

percent, which demonstrates the State’s 

commitment to meeting the needs of its 

LMI populations. While the Department 

evaluates overall benefit for each grant 

separately, the allocations from Public 

Laws 115–123 and 116–20 support 

recovery from the same disasters in the 

same MID areas, and the total projected 

LMI benefit percentage when combining 

the allocations would be 82 percent. 

The State’s allocation under Public 

Law 116–20 was limited to allow the 

State to only address its unmet 

infrastructure recovery needs. For this 

allocation, the State expanded its 

original Infrastructure Program 

proposed in its initial action plan to 

include standalone infrastructure 

projects and FEMA Hazard Mitigation 

Grant Program Non-Federal match 

activities in addition to FEMA Public 

Assistance non-federal match projects. 

When considering its unmet 

infrastructure needs, the State indicated 

in its request that the total LMI 

percentage of the population in the 

HUD-identified MID areas is 42 percent, 

and the City of Clearlake is the only 

jurisdiction that is a MID area and 

would also qualify as an eligible LMI 

area. To address the needs of LMI 

households throughout the MID areas, 

the State prioritized infrastructure 

projects in MID areas that would benefit 

LMI areas through its Notice of Intent 

(NOI) process where eligible applicants 

submitted proposed infrastructure 

projects to meet the unmet 

infrastructure need in their community. 

The State also conducted extensive 

outreach to potential applicants by 

hosting multiple webinars and holding 

office hours for months during and after 

the NOI process. Despite these efforts, 

the State’s CDBG–DR funded 

infrastructure program only received 

nine project applications from four 

eligible applicants: City of Clearlake, 

City of Santa Rosa, Santa Barbara 

County, and Sonoma County. Of the 

nine applications, three projects qualify 

for the LMI national objective, and all 

LMI projects will derive from a single 

eligible applicant, the City of Clearlake, 

leading to the allocation’s total 

projected LMI benefit percentage being 

38 percent. 

To enable the State to undertake the 

activities it has determined to be the 

most critical for its recovery and LMI 

households in the MID areas, HUD is 

granting a waiver and alternative 

requirement to reduce the overall 

benefit requirement from 70 percent to 

not less than 38 percent of the State’s 

total allocation of CDBG–DR funds for 

its unmet infrastructure recovery needs. 

This is a limited waiver modifying 

sections 101(c) and 104(b)(3)(A) of the 

HCDA and 24 CFR 570.200(a)(3) only to 

the extent necessary to reduce the LMI 

overall benefit requirement that the 

State must meet when carrying out 

activities identified in its approved 

action plan from 70 percent to not less 

than 38 percent of the grantee’s 

allocation of CDBG–DR funds under 

Public Law 116–20 for its unmet 

infrastructure recovery needs. Based on 

the analysis submitted by the State, the 

Secretary finds good cause for this 

waiver and alternative requirement due 

to the circumstances outlined in the 

State’s request. In particular, HUD notes 

that the State had demonstrated that it 

has sufficiently addressed LMI unmet 

recovery needs through both its CDBG– 

DR allocations awarded under Public 

Laws 115–123 and 116–20, conducted 

significant amounts of public outreach 

when determining LMI unmet 

infrastructure needs, and prioritized and 

selected infrastructure projects serving 

LMI areas, even though the LMI 

percentage of the MID areas was only 42 

percent. 

V. 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 

online on HUD’s CDBG–DR website at 

https://www.hud.gov/program_offices/ 

comm_planning/cdbg-dr and 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). HUD 

welcomes and is prepared to receive 

calls from individuals who are deaf or 

hard of hearing, as well as individuals 

with speech or communication 

disabilities. To learn more about how to 

make an accessible telephone call, 

please visit https://www.fcc.gov/ 

consumers/guides/telecommunicationsrelay-service-trs. 

Adrianne Todman, 

Deputy Secretary. 

[FR Doc. 2024–01116 Filed 1–19–24; 8:45 am] 

BILLING CODE 4210–67–P 


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