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[Federal Register Volume 90, Number 10 (Thursday, January 16, 2025)]
[Notices]
[Pages 4759-4765]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-00943]

=======================================================================
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-6512-N-01]

Allocations for Community Development Block Grant Disaster 
Recovery and Implementation of the CDBG-DR Consolidated Waivers and 
Alternative Requirements Notice (UN AAN)

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

ACTION: Notice.

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SUMMARY: This Allocation Announcement Notice announces $12,070,701,000 
of Community Development Block Grant--Disaster Recovery (CDBG-DR) funds 
made available by the Disaster Relief Supplemental Appropriations Act, 
2025, for major disasters occurring in 2023 or 2024. This Allocation 
Announcement Notice identifies grant requirements for these funds, 
including requirements in HUD's CDBG-DR Universal Notice (``Universal 
Notice'') published in the Federal Register. The Universal Notice 
includes waivers and alternative requirements, relevant regulatory 
requirements, the grant award process, criteria for action plan 
approval, and eligible disaster recovery activities.

[[Page 4760]]

DATES: Applicability Date: January 21, 2025.

FOR FURTHER INFORMATION CONTACT: Tennille Smith Parker, Director, 
Office of Disaster Recovery, Department of 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. Facsimile inquiries may be sent 
to Ms. Parker at 202-708-0033 (this is not a toll-free number). Email 
inquiries may be sent to [email protected].

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Allocations
II. Use of Funds
III. Overview of Grant Process
IV. Applicable Rules, Statutes, Waivers, and Alternative 
Requirements
V. Duration of Funding
VI. Assistance Listing Numbers (formerly known as the CFDA Number)
VII. Finding of No Significant Impact
Appendix A: Allocation Methodology

I. Allocations

    The Disaster Relief Supplemental Appropriations Act, 2025 (Pub. L. 
118-158) (``the 2025 Appropriations Act''), approved on December 21, 
2024, makes available $12,039,000,000 in new CDBG-DR funds. The 2025 
Appropriations Act also provides that HUD allocate any unobligated no-
year balances remaining from Public Laws 108-324, 109-148, 109-234, 
110-252, 110-329, 111-212, 112-55, and 113-2 (the ``Prior 
Appropriations Acts'') for the same purposes as these new funds. The 
sum of all unobligated balances from these Prior Appropriations Acts is 
$31,701,000. This brings the total funding available for 2023 or 2024 
disasters to $12,070,701,000.
    These CDBG-DR funds are for necessary expenses for activities 
authorized under title I of the Housing and Community Development Act 
of 1974 (42 U.S.C. 5301 et seq.) (HCDA) related to disaster relief, 
long-term recovery, restoration of infrastructure and housing, economic 
revitalization, and mitigation in the ``most impacted and distressed'' 
(MID) areas resulting from a qualifying major disaster that occurred in 
2023 or 2024. The 2025 Appropriations Act provides that $78,850,000 of 
these amounts will be made available for these specific purposes: 
$45,000,000 for salaries and expenses of the Office of Community 
Planning and Development, $1,850,000 for HUD's disaster recovery 
portal, $7,000,000 for the Office of Inspector General, and $25,000,000 
for capacity building and technical assistance, leaving the remaining 
$11,991,851,000 available for allocations to CDBG-DR grantees.
    Of the $11,991,851,000 made available, this notice announces 
$11,889,437,000 in CDBG-DR allocations for disasters occurring in 2023 
or 2024. HUD will allocate the remaining $102,414,000 of available 
funds under a separate Allocation Announcement Notice that provides 
plus-up funding for disasters that occurred in January 2023 for which 
HUD previously allocated funding in a Federal Register notice published 
on November 27, 2023 at 88 FR 82982.
    The 2025 Appropriations Act requires HUD to include with any final 
allocation for the total estimate of unmet need an additional 15 
percent of that estimate for additional mitigation activities that 
reduce risk in the MID areas (see table 1). The 2025 Appropriations Act 
provides that grants shall be awarded directly to a State, unit of 
general local government, or Indian Tribe at the discretion of the 
Secretary.
    Pursuant to the 2025 Appropriations Act, HUD has identified MID 
areas based on the best available data for all eligible affected areas. 
A detailed explanation of HUD's allocation methodology is provided in 
appendix A of this notice. To comply with requirements that all funds 
are expended in MID areas, Little Rock, AR; Broward County, FL; Ft. 
Lauderdale, FL; Hillsborough County, FL; Lee County, FL; Manatee 
County, FL; Orange County, FL; Pasco County, FL; Pinellas County, FL; 
St. Petersburg, FL; Sarasota County, FL; Volusa County, FL; Guam; Maui 
County, HI; Chicago, IL; Cicero, IL; Cook County, IL; St. Clair County, 
IL; Detroit, MI; Wayne County, MI; Ashville, NC; Harris County, TX; 
Houston, TX; and Spokane County, WA must use 100 percent of the total 
funds allocated to address unmet disaster needs and mitigation 
activities that benefit the HUD-identified MID areas identified in the 
last column in table 2.
    All other grantees must use at least 80 percent of their 
allocations to address unmet disaster needs or mitigation activities 
that benefit the HUD-identified MID areas, as identified in the last 
column of table 2. These grantees may use the remaining 20 percent of 
their allocation to address unmet disaster needs or mitigation 
activities in those areas that the grantee determines are ``most 
impacted and distressed'' within an area that received a Presidential 
major disaster declaration (i.e., grantee-identified MID areas) 
identified by the Federal Emergency Management Agency (FEMA) disaster 
numbers listed in column two of table 1. However, these grantees are 
not precluded from spending 100 percent of their allocation to benefit 
the HUD-identified MID areas if they choose to do so. Detailed 
requirements related to MID areas are provided in section III.D.2 of 
the Universal Notice.

             Table 1--Allocations for Unmet Needs and Mitigation Activities Under Public Law 118-158 for Disasters Occuring in 2023 and 2024
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                  CDBG-DR mitigation
                                                                                                Allocations for     set- aside for      Total allocated
               Year                  FEMA Disaster No.       State             Grantee         unmet needs under  amounts under this   under this notice
                                                                                               this notice from   notice from Public    from Public Law
                                                                                              Public Law 118-158      Law 118-158           118-158
--------------------------------------------------------------------------------------------------------------------------------------------------------
2023 & 2024......................  4730; 4836..........  AK             State of Alaska.....         $16,240,000          $2,436,000         $18,676,000
2023.............................  4698; 4788..........  AR             State of Arkansas...          51,346,000           7,702,000          59,048,000
2024.............................  4698................  AR             Little Rock, AR.....          18,170,000           2,725,000          20,895,000
2023 & 2024......................  4699; 4707; 4758....  CA             State of California.         362,258,000          54,339,000         416,597,000
2024 & 2024......................  4734; 4794; 4806;     FL             State of Florida....         804,690,000         120,704,000         925,394,000
                                    4828; 4834.
2023.............................  4709................  FL             Broward County......          25,410,000           3,812,000          29,222,000
2023.............................  4709................  FL             Ft Lauderdale, FL...          76,566,000          11,485,000          88,051,000
2024.............................  4828; 4834..........  FL             Hillsborough County.         616,803,000          92,521,000         709,324,000
2024.............................  4828; 4834..........  FL             Lee County..........          87,550,000          13,133,000         100,683,000

[[Page 4761]]

 
2024.............................  4806; 4828; 4834....  FL             Manatee County......         219,749,000          32,962,000         252,711,000
2024.............................  4834................  FL             Orange County.......          29,006,000           4,351,000          33,357,000
2023 & 2024......................  4734; 4828; 4834....  FL             Pasco County........         509,308,000          76,396,000         585,704,000
2023 & 2024......................  4734; 4828; 4834....  FL             Pinellas County.....         707,637,000         106,146,000         813,783,000
2023 & 2024......................  4734; 4828..........  FL             St. Petersburg, FL..         139,030,000          20,854,000         159,884,000
2024.............................  4806; 4828; 4834....  FL             Sarasota County.....         182,690,000          27,404,000         210,094,000
2024.............................  4834................  FL             Volusia County......         116,100,000          17,415,000         133,515,000
2023 & 2024......................  4738; 4821; 4830....  GA             State of Georgia....         231,066,000          34,660,000         265,726,000
2023.............................  4715................  GU             Guam................         435,500,000          65,325,000         500,825,000
2023.............................  4724................  HI             Maui County.........       1,425,549,000         213,832,000       1,639,381,000
2024.............................  4796................  IA             State of Iowa.......         117,119,000          17,568,000         134,687,000
2023 & 2024......................  4728; 4749; 4819....  IL             Chicago, IL.........         370,963,000          55,645,000         426,608,000
2023 & 2024......................  4728; 4749; 4819....  IL             Cicero, IL..........          83,482,000          12,522,000          96,004,000
2023 & 2024......................  4728; 4749; 4819....  IL             Cook County.........         212,315,000          31,847,000         244,162,000
2024.............................  4819................  IL             St. Clair County....          77,855,000          11,678,000          89,533,000
2023.............................  4704................  IN             State of Indiana....           6,663,000           1,000,000           7,663,000
2024.............................  4817................  LA             State of Louisiana..         102,562,000          15,384,000         117,946,000
2024.............................  4780................  MA             State of                       6,917,000           1,037,000           7,954,000
                                                                         Massachusetts.
2024.............................  4757................  MI             State of Michigan...          37,887,000           5,683,000          43,570,000
2024.............................  4757................  MI             Detroit, MI.........         301,621,000          45,243,000         346,864,000
2024.............................  4757................  MI             Wayne County........          61,202,000           9,180,000          70,382,000
2023 & 2024......................  4697; 4727; 4790....  MS             State of Mississippi         117,350,000          17,603,000         134,953,000
2024.............................  4827................  NC             State of North             1,241,843,000         186,277,000       1,428,120,000
                                                                         Carolina.
2024.............................  4827................  NC             Ashville, NC........         195,661,000          29,349,000         225,010,000
2024.............................  4795; 4843..........  NM             State of New Mexico.         119,285,000          17,893,000         137,178,000
2024.............................  4777................  OH             State of Ohio.......          12,275,000           1,841,000          14,116,000
2023 & 2024......................  4706; 4776..........  OK             State of Oklahoma...          34,265,000           5,140,000          39,405,000
2024.............................  4815................  PA             State of                      12,713,000           1,907,000          14,620,000
                                                                         Pennsylvania.
2024.............................  4829................  SC             State of South               130,743,000          19,611,000         150,354,000
                                                                         Carolina.
2024.............................  4807................  SD             State of South                13,370,000           2,005,000          15,375,000
                                                                         Dakota.
2023 & 2024......................  4751; 4832..........  TN             State of Tennessee..          74,555,000          11,183,000          85,738,000
2024.............................  4781; 4798..........  TX             State of Texas......         483,206,000          72,481,000         555,687,000
2024.............................  4781; 4798..........  TX             Harris County.......          58,544,000           8,782,000          67,326,000
2024.............................  4781; 4798..........  TX             Houston, TX.........         273,604,000          41,041,000         314,645,000
2024.............................  4831................  VA             State of Virginia...          40,583,000           6,087,000          46,670,000
2023.............................  4720................  VT             State of Vermont....          58,996,000           8,849,000          67,845,000
2024.............................  4759................  WA             Spokane County......          38,393,000           5,759,000          44,152,000
                                                                                             -----------------------------------------------------------
    Totals.......................  ....................  .............  ....................      10,338,640,000       1,550,797,000      11,889,437,000
--------------------------------------------------------------------------------------------------------------------------------------------------------

               Table 2--Most Impacted and Distressed Areas for Disasters Occuring in 2023 and 2024
----------------------------------------------------------------------------------------------------------------
                                         Minimum amount from
                                       Public Law 118-158 that
                                       must be expended in the
               Grantee                  HUD-identified ``most        ``Most impacted and distressed areas``
                                       impacted and distressed
                                         areas'' in column 3
----------------------------------------------------------------------------------------------------------------
State of Alaska......................              $14,940,800  Juneau (Borough) (ZIP code 99801); Lower Yukon
                                                                 Regional Education (ZIP code 99554).
State of Arkansas....................               47,238,400  Benton (County) (ZIP code 72756); Cross
                                                                 (County); Pulaski County).
Little Rock, AR......................               20,895,000  Little Rock.
State of California..................              333,277,600  Hoopa Valley Indian Reservation (ZIP code
                                                                 95546); Merced (County); Monterey (County); San
                                                                 Benito (County) (ZIP code 95023); San Diego
                                                                 (County); San Joaquin (County) (ZIP code
                                                                 95220); San Luis Obispo (County); Santa Cruz
                                                                 (County); Santa Cruz (County); Tulare (County);
                                                                 Tuolumne (County) (ZIP code 95370); Ventura
                                                                 (County).
State of Florida.....................              740,315,200  Charlotte (County); Charlotte (County); Citrus
                                                                 (County); Collier (County) (ZIP code 34112);
                                                                 Columbia (County) (ZIP code 32055); DeSoto
                                                                 (County) (ZIP code 34266); Dixie (County);
                                                                 Duval (County) (ZIP code 32209); Hamilton
                                                                 (County) (ZIP codes 32052, 32053); Hernando
                                                                 (County) (ZIP code 34607); Highlands (County)
                                                                 (ZIP code 33870); Indian River (County) (ZIP
                                                                 code 32960); Lafayette (County) (ZIP code
                                                                 32066); Lake (County); Leon (County); Levy
                                                                 (County) (ZIP codes 32625, 34498); Madison
                                                                 (County) (ZIP code 32340); Polk (County);
                                                                 Seminole (County) (ZIP code 32771); St. Lucie
                                                                 (County); Sumter (County) (ZIP codes 33597,
                                                                 34785); Suwannee (County) (ZIP code 32060,
                                                                 32064); Taylor (County).
Broward County, FL...................               29,222,000  Broward County.
Ft. Lauderdale, FL...................               88,051,000  Ft. Lauderdale.
Hillsborough County, FL..............              709,324,000  Hillsborough County.
Lee County, FL.......................              100,683,000  Lee County.
Manatee County, FL...................              252,711,000  Manatee County.
Orange County, FL....................               33,357,000  Orange County.
Pasco County, FL.....................              585,704,000  Pasco County.
Pinellas County, FL..................              813,783,000  Pinellas County.
St. Petersburg, FL...................              159,884,000  St. Petersburg.
Sarasota County, FL..................              210,094,000  Sarasota County.

[[Page 4762]]

 
Volusia County, FL...................              133,515,000  Volusia County.
State of Georgia.....................              212,580,800  Appling (County) (ZIP code 31513); Atkinson
                                                                 (County) (ZIP code 31642); Bacon (County) (ZIP
                                                                 code 31510); Berrien (County) (ZIP code 31639);
                                                                 Bryan (County) (ZIP code 31324); Burke
                                                                 (County); Candler (County) (ZIP code 30439);
                                                                 Clinch (County) (ZIP code 31634); Coffee
                                                                 (County); Columbia (County); Emanuel (County)
                                                                 (ZIP code 30401); Jeff Davis (County) (ZIP code
                                                                 31539); Lanier (County) (ZIP code 31635);
                                                                 Laurens (County) (ZIP code 31021); Lowndes
                                                                 (County); Lowndes (County) (ZIP code 31601);
                                                                 McDuffie (County) (ZIP code 30824); Richmond
                                                                 (County); Spalding (County) (ZIP code 30223);
                                                                 Toombs (County) (ZIP codes 30436, 30474);
                                                                 Treutlen (County) (ZIP code 30457); Wheeler
                                                                 (County) (ZIP code 30428).
Guam.................................              500,825,000  Guam (County-equivalent).
Maui County..........................            1,639,381,000  Maui (County).
State of Iowa........................              107,749,600  Cherokee (County) (ZIP code 51012); Clay
                                                                 (County); Sioux (County); Woodbury (County)
                                                                 (ZIP code 51109).
Chicago, IL..........................              426,608,000  Chicago.
Cicero, IL...........................               96,004,000  Cicero.
Cook County..........................              244,162,000  Cook County.
St. Clair County.....................               89,533,000  St. Clair County.
State of Indiana.....................                6,130,400  Sullivan (County) (ZIP code 47882).
State of Louisiana...................               94,356,800  Ascension (Parish) (ZIP code 70346); Assumption
                                                                 (Parish) (ZIP codes 70341, 70390); Jefferson
                                                                 (Parish); Lafourche (Parish); St. John the
                                                                 Baptist (Parish) (ZIP codes 70068, 70084); St.
                                                                 Mary (Parish); Terrebonne (Parish).
State of Massachusetts...............                6,363,200  Worcester (County) (ZIP code 01453).
State of Michigan....................               34,856,000  Macomb (County); Monroe (County) (ZIP code
                                                                 48166); Oakland (County).
Detroit, MI..........................              346,864,000  Detroit.
Wayne County.........................               70,382,000  Wayne County.
State of Mississippi.................              107,962,400  Hinds (County); Humphreys (County) (ZIP code
                                                                 39038); Humphreys (County) (ZIP code 39166);
                                                                 Jackson (County) (ZIP code 39563); Monroe
                                                                 (County) (ZIP code 38821); Scott (County);
                                                                 Sharkey (County).
State of North Carolina..............            1,142,496,000  Ashe (County); Avery (County); Buncombe
                                                                 (County); Burke (County); Caldwell (County)
                                                                 (ZIP code 28645); Cleveland (County) (ZIP code
                                                                 28150); Haywood (County); Henderson (County);
                                                                 Madison (County) (ZIP code 28753); McDowell
                                                                 (County); Mecklenburg (County) (ZIP code
                                                                 28214); Mitchell (County); Polk (County) (ZIP
                                                                 code 28782); Rutherford (County); Transylvania
                                                                 (County); Watauga (County); Yancey (County).
Ashville, NC.........................              225,010,000  Ashville.
State of New Mexico..................              109,742,400  Chaves (County); Lincoln (County).
State of Ohio........................               11,292,800  Logan (County).
State of Oklahoma....................               31,524,000  Carter (County) (ZIP code 73401); McClain
                                                                 (County) (ZIP code 73010); Murray (County) (ZIP
                                                                 code 73086); Osage (County) (ZIP code 74002).
State of Pennsylvania................               11,696,000  Tioga (County) (ZIP code 16950).
State of South Carolina..............              120,283,200  Aiken (County); Anderson (County); Greenville
                                                                 (County); Greenwood (County) (ZIP code 29646);
                                                                 Laurens (County) (ZIP code 29325); Spartanburg
                                                                 (County).
State of South Dakota................               12,300,000  Union (County) (ZIP codes 57038, 57049).
State of Tennessee...................               68,590,400  Carter (County) (ZIP code 37643); Cocke
                                                                 (County); Greene (County) (ZIP code 37743);
                                                                 Johnson (County) (ZIP code 37683); Montgomery
                                                                 (County) (ZIP code 37042); Unicoi (County) (ZIP
                                                                 code 37650); Washington (County) (ZIP codes
                                                                 37650, 37659).
State of Texas.......................              444,549,600  Anderson (County) (ZIP code 75801); Bell
                                                                 (County) (ZIP codes 76501, 76502); Brazoria
                                                                 (County); Cooke (County) (ZIP code 76272);
                                                                 Dallas (County); Fort Bend (County); Galveston
                                                                 (County); Guadalupe (County) (ZIP code 78666);
                                                                 Hardin (County) (ZIP code 77656); Henderson
                                                                 (County); Hockley (County); Jasper (County)
                                                                 (ZIP code 75951); Jasper (County) (ZIP codes
                                                                 75951, 75956); Kaufman (County) (ZIP code
                                                                 75142); Liberty (County); Liberty (County) (ZIP
                                                                 code 77327); Matagorda (County); Montgomery
                                                                 (County); Montgomery (County); Polk (County)
                                                                 (ZIP code 77351); San Jacinto (County); San
                                                                 Jacinto (County) (ZIP codes 77331, 77371);
                                                                 Smith (County); Trinity (County) (ZIP code
                                                                 75862); Tyler (County) (ZIP code 75979); Walker
                                                                 (County); Wharton (County) (ZIP codes 77437,
                                                                 77488).
Harris County........................               67,326,000  Harris County.
Houston, TX..........................              314,645,000  Houston.
State of Virginia....................               37,336,000  Giles (County) (ZIP code 24124); Washington
                                                                 (County) (ZIP code 24236).
State of Vermont.....................               54,276,000  Lamoille (County) (ZIP code 05656); Washington
                                                                 (County).
Spokane County.......................               44,152,000  Spokane County.
----------------------------------------------------------------------------------------------------------------

II. Use of Funds

    Funds for disasters occurring in 2023 or 2024 announced in this 
notice are subject to the requirements of the Universal Notice, 
published on January 8, 2025, in the Federal Register at 90 FR 1754, 
including sections I through V and appendices A through C.

III. Action Plan Submission Process

    As provided in section I.C.3. of the Universal Notice, published at 
90 FR 1754, this Allocation Announcement Notice provides a process for 
Action Plan submittal. Within 90 days of the applicability date of this 
notice, grantees are required to submit their Action Plan to HUD for 
review and approval. For all allocations announced in this Allocation 
Announcement Notice, HUD is requiring paper submission of the Action 
Plan. Grantees shall submit their Action Plan to their assigned 
Community Planning and Development (CPD) Specialist or other designated 
HUD CPD staff member, with a copy provided to 
[email protected]. HUD encourages grantees to use the Action 
Plan template available on the Universal Notice website at https://www.hud.gov/program_offices/comm_planning/cdbg-dr/universal_notice_grantees.

IV. Applicable Rules, Statutes, Waivers, and Alternative Requirements

    The 2025 Appropriations Act authorizes the Secretary to waive or 
specify alternative requirements for any provision of any statute or 
regulation that the Secretary administers in connection with the 
obligation by the Secretary, or use by the recipient, of these funds, 
except for requirements related to fair housing,

[[Page 4763]]

nondiscrimination, labor standards, and the environment. The Universal 
Notice describes rules, statutes, waivers, and alternative requirements 
that apply to allocations governed by this notice. For each waiver and 
alternative requirement in the Universal Notice the Secretary has 
determined that good cause exists, and the waiver or alternative 
requirement is not inconsistent with the overall purpose of title I of 
the HCDA. The waivers and alternative requirements provide flexibility 
in program design and implementation to support full and swift recovery 
following eligible disasters, while ensuring that statutory 
requirements are met.
    Grantees may request additional waivers and alternative 
requirements from the Department as needed to address specific needs 
related to their recovery and mitigation activities. Grantees should 
work with the appropriate HUD CPD staff member to request any 
additional waivers or alternative requirements from HUD headquarters. 
The waivers and alternative requirements described below apply to all 
grantees under this notice. Under the requirements of the 2025 
Appropriations Act, waivers and alternative requirements are effective 
five days after they are published in the Federal Register or on the 
website of the Department.

V. Duration of Funding

    The Appropriations Act makes these funds available for obligation 
by HUD until expended. HUD waives the provisions at 24 CFR 570.494 and 
24 CFR 570.902 regarding timely distribution and expenditure of funds 
and establishes an alternative requirement providing that each grantee 
must expend 100 percent of its allocation within six years of the date 
HUD signs the grant agreement. HUD may extend the time period in this 
alternative requirement and associated grant period of performance 
administratively, if good cause for such an extension exists at that 
time, as requested by the grantee, and approved by HUD. When the period 
of performance has ended, HUD will close out the grant and any 
remaining funds not expended by the grantee on appropriate programmatic 
purposes will be recaptured by HUD.

VI. Assistance Listing Numbers (Formerly Known as the CFDA Number)

    The Assistance Listing Numbers (formerly known as the Catalog of 
Federal Domestic Assistance numbers) for the disaster recovery grants 
under this notice are as follows: 14.218; 14.228.

VII. 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. 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/telecommunications-relay-service-trs.

Adrianne R. Todman,
Deputy Secretary Performing the Duties of the Secretary of HUD.

Appendix A

Allocation of CDBG-DR Funds to Most Impacted and Distressed Areas Due 
to Presidentially Declared Disasters Occurring in 2023 and 2024

Background

    The Disaster Relief Supplemental Appropriations Act, 2025 
(approved on 12/21/2024) appropriated $12.039 billion for CDBG-
Disaster Recovery funds (CDBG-DR) for disasters ``that occurred in 
2023 or 2024.'' The law instructs HUD that the funds are ``for the 
same purposes and under the same terms and conditions as funds 
appropriated under such heading in title VIII of the Disaster Relief 
Supplemental Appropriations Act, 2022 (division B of Pub. L. 117-
43).''
    The key statutory text related to the allocation in Public Law 
117-43:

``. . . for necessary expenses for activities authorized under title 
I of the Housing and Community Development Act of 1974 (42 U.S.C. 
5301 et seq.) related to disaster relief, long-term recovery, 
restoration of infrastructure and housing, economic revitalization, 
and mitigation, in the most impacted and distressed areas resulting 
from a major disaster . . . Provided, That amounts made available 
under this heading in this Act shall be awarded directly to the 
State, unit of general local government, or Indian tribe (as such 
term is defined in section 102 of the Housing and Community 
Development Act of 1974 (42 U.S.C. 5302)) at the discretion of the 
Secretary: Provided further, That the Secretary shall allocate, 
using the best available data, an amount equal to the total estimate 
for unmet needs for qualifying disasters under this heading in this 
Act: Provided further, That any final allocation for the total 
estimate for unmet need made available under the preceding proviso 
shall include an additional amount of 15 percent of such estimate 
for additional mitigation:''

    This methodology applies to allocations for disasters occurring 
on or after January 1, 2023 and had been declared major disasters as 
of November 1, 2024. It reflects approximately $11.992 billion under 
the Disaster Relief Supplemental Appropriations Act, 2025 after 
factoring in additional repurposed amounts and funds for capacity 
building and HUD administrative costs. The key statutory text from 
the Disaster Relief Supplemental Appropriations Act, 2025 is:

    ``For an additional amount for ``Community Development Fund,'' 
$12,039,000,000, to remain available until expended, for the same 
purposes and under the same terms and conditions as funds 
appropriated under such heading in title VIII of the Disaster Relief 
Supplemental Appropriations Act, 2022 (Pub. L. 117-43), . . . 
Provided, That the Secretary of Housing and Urban Development shall 
allocate all funds provided under this heading in this Act for the 
total estimate for unmet needs including additional mitigation for 
qualifying disasters and publish such allocations in the Federal 
Register no later than January 15, 2025: . . . Provided further, 
That unobligated balances remaining as of the date of enactment of 
this Act included under Treasury Appropriation Fund Symbol 86 X 0162 
from Public Laws 108-324, 109-148, 109-234, 110-252, 110-329, 111-
212, 112-55, and 113-2 shall also be available for the purposes 
authorized under this heading in this Act (except that the amount 
for each set-aside provided herein shall not be exceeded), 
notwithstanding the purposes for which such amounts were 
appropriated: Provided further, That of the amounts made available 
under this heading in this Act, $45,000,000 shall be transferred to 
``Department of Housing and Urban Development--Management and 
Administration--Program Offices'' for salaries and expenses of the 
Office of Community Planning and Development for necessary costs, 
including information technology costs, of administering and 
overseeing the obligation and expenditure of amounts made available 
for activities authorized under title I of the Housing and Community 
Development Act of 1974 (42 U.S.C. 5301 et seq.) related to disaster 
relief, long-term recovery, restoration of infrastructure and 
housing, economic revitalization, and mitigation in the most 
impacted and distressed areas resulting from a major disaster in 
this, prior, or future Acts (``this, prior, 4 or future disaster 
Acts''): Provided further, That of the amounts made available under 
this heading in this Act, $1,850,000 shall be transferred to 
``Department of Housing and Urban Development--Information 
Technology Fund'' for the disaster recovery data portal: Provided 
further, That of the amounts made available under this heading in 
this Act, $7,000,000 shall be transferred to ``Department of Housing 
and Urban Development--Office of Inspector General''

[[Page 4764]]

for necessary costs of overseeing and auditing amounts made 
available in this, prior, or future disaster Acts: Provided further, 
That of the amounts made available under this heading in this Act, 
$25,000,000 shall be made available for capacity building and 
technical assistance, including assistance on contracting and 
procurement processes, to support recipients of allocations from 
this, prior, or future disaster Acts:''

Most Impacted and Distressed Areas

    As with prior CDBG-DR appropriations, HUD is not required to 
allocate funds for all major disasters occurring in the statutory 
timeframes. HUD is directed to use the funds ``in the most impacted 
and distressed areas.'' HUD has implemented this directive by 
limiting CDBG-DR formula allocations to grantees with major 
disasters that meet these standards:
    (1) Individual and Households Program (IHP) designation. HUD has 
limited allocations to those disasters where the Federal Emergency 
Management Agency (FEMA) had determined the damage was sufficient to 
declare the disaster as eligible to receive IHP funding.
    (2) Concentrated damage. HUD has limited its estimate of serious 
unmet housing need to counties and zip codes with high levels of 
damage, collectively referred to as ``most impacted areas.'' For 
this allocation, HUD is defining most impacted areas as either most 
impacted counties--counties exceeding $10 million in serious unmet 
housing needs--and most impacted Zip Codes--Zip Codes with $2 
million or more of serious unmet housing needs. The calculation of 
serious unmet housing needs is described below.
    For disasters that meet the most impacted threshold described 
above, the unmet need allocations are based on the following factors 
summed together:
    (1) Repair estimates for seriously damaged owner-occupied units 
without insurance (with some exceptions) in most impacted areas 
after FEMA and Small Business Administration (SBA) repair grants or 
loans
    (2) Repair estimates for seriously damaged rental units occupied 
by very low-income renters in most impacted areas;
    (3) Repair and content loss estimates for small businesses with 
serious damage denied by SBA; and
    (4) The estimated local cost share for Public Assistance 
Category C to G projects.

Methods for Estimating Serious Unmet Needs for Housing

    The data HUD uses to calculate unmet needs for 2023 and 2024 
qualifying disasters come from the FEMA IHP data on housing-unit 
damage as of November 20, 2024 and reflect disasters occurring in 
2023 and declared on or before November 1, 2024.
    The core data on housing damage for both the unmet housing needs 
calculation and the concentrated damage are based on home inspection 
data for FEMA's IHP and SBA's disaster loan program. HUD calculates 
``unmet housing needs'' as the number of housing units with unmet 
needs times the estimated cost to repair those units less repair 
funds estimated to be provided by FEMA, SBA, and insurance.
    Each of the FEMA IHP inspected owner units are categorized by 
HUD into one of five categories:
     Minor-Low: Less than $3,000 of FEMA inspected real 
property damage.
     Minor-High: $3,000 to $7,999 of FEMA inspected real 
property damage
     Major-Low: $8,000 to $14,999 of FEMA inspected real 
property damage and/or 1 to 3.9 feet of flooding on the first floor;
     Major-High: $15,000 to $28,800 of FEMA inspected real 
property damage and/or 4 to 5.9 feet of flooding on the first floor.
     Severe: Greater than $28,800 of FEMA inspected real 
property damage or determined destroyed and/or 6 or more feet of 
flooding on the first floor.
    When owner-occupied properties also have a personal property 
inspection or only have a personal property inspection, HUD reviews 
the personal property damage amounts such that if the personal 
property damage places the home into a higher need category over the 
real property assessment, the personal property amount is used. The 
personal property-based need categories for owner-occupied units are 
defined as follows:
     Minor-Low: Less than $2,500 of FEMA inspected personal 
property damage.
     Minor-High: $2,500 to $3,499 of FEMA inspected personal 
property damage.
     Major-Low: $3,500 to $4,999 of FEMA inspected personal 
property damage or 1 to 3.9 feet of flooding on the first floor.
     Major-High: $5,000 to $9,000 of FEMA inspected personal 
property damage or 4 to 5.9 feet of flooding on the first floor.
     Severe: Greater than $9,000 of FEMA inspected personal 
property damage or determined destroyed and/or 6 or more feet of 
flooding on the first floor.
    To meet the statutory requirement of ``most impacted'' in this 
legislative language, homes are determined to have a high level of 
damage if they have damage of ``major-low'' or higher. That is, they 
have a FEMA inspected real property damage of $8,000 or above, 
personal property damage $3,500 or above, or flooding 1 foot or 
above on the first floor.
    Furthermore, a homeowner with flooding outside the 1 percent 
risk flood hazard area is determined to have unmet needs if they 
reported damage and no flood insurance to cover that damage. For 
homeowners inside the 1 percent risk flood hazard area, homeowners 
without flood insurance with flood damage below the greater of 
national median or 120 percent of Area Median Income are determined 
to have unmet needs. For non-flood damage, homeowners without hazard 
insurance with incomes below the greater of national median or 120 
percent of Area Median Income are included as having unmet needs. 
The unmet need categories for these types of homeowners are defined 
as above for real and personal property damage.
    FEMA IHP does not inspect rental units for real property damage 
so personal property damage is used as a proxy for unit damage. Each 
of the FEMA-inspected renter units are categorized by HUD into one 
of five categories:
     Minor-Low: Less than $1,000 of FEMA inspected personal 
property damage.
     Minor-High: $1,000 to $1,999 of FEMA inspected personal 
property damage or determination of ``Moderate'' damage by the FEMA 
inspector.
     Major-Low: $2,000 to $3,499 of FEMA inspected personal 
property damage or 1 to 3.9 feet of flooding on the first floor or 
determination of ``Major'' damage by the FEMA inspector.
     Major-High: $3,500 to $7,500 of FEMA inspected personal 
property damage or 4 to 5.9 feet of flooding on the first floor.
     Severe: Greater than $7,500 of FEMA inspected personal 
property damage or determined destroyed and/or 6 or more feet of 
flooding on the first floor or determination of ``Destroyed'' by the 
FEMA inspector.
    To meet the statutory requirement of ``most impacted'' for 
rental properties, homes are determined to have a high level of 
damage if they have damage of ``major-low'' or higher. That is, they 
have a FEMA personal property damage assessment of $2,000 or greater 
or flooding 1 foot or above on the first floor.
    Furthermore, landlords are presumed to have adequate insurance 
coverage unless the unit is occupied by a renter with income less 
than the greater of the Federal poverty level or 50 percent of the 
area median income. Units occupied by a tenant with income less than 
the greater of the poverty level or 50 percent of the area median 
income are used to calculate likely unmet needs for affordable 
rental housing.
    The average cost to fully repair a home for a specific disaster 
to code within each of the damage categories noted above is 
calculated using the median real property damage repair costs 
determined by the SBA for its disaster loan program based on a match 
comparing FEMA and SBA inspections by each of the FEMA damage 
categories described above.
    If there is a match of 20 or more SBA inspections to FEMA 
inspections for any damage category, the median damage estimate for 
the SBA properties is used less the estimated average FEMA IHP 
repair grant and average SBA disaster loan grant weighted on take-up 
rates, which are generally high for IHP and low and for SBA. Except 
that no matched multiplier can be less than the 25th percentile for 
all IHP eligible disasters combined in eligible disaster years at 
the time of the allocation calculation or more than the 75th 
percentile for all IHP eligible disasters combined with data 
available as of the allocation.
    If there is a match of fewer than 20 SBA inspections to FEMA 
inspections within individual damage categories for an individual 
disaster, these multipliers are used which are based on the 2020/
2021 disaster years:

[[Page 4765]]

----------------------------------------------------------------------------------------------------------------
                                                                           Multipliers by disaster type
                          Disaster type                          -----------------------------------------------
                                                                     Major-low      Major-high        Severe
----------------------------------------------------------------------------------------------------------------
Dam/Levee Break.................................................         $33,007         $47,078         $47,078
Earthquake......................................................          27,141          33,714         134,503
Fire............................................................          22,971          82,582         134,503
Flood...........................................................          47,074          57,856          64,513
Hurricane.......................................................          36,800          45,952          45,952
Severe Ice Storm................................................          33,528          33,714          36,592
Severe Storm(s).................................................          22,971          37,299          37,299
Tornado.........................................................          52,961          82,582         134,503
----------------------------------------------------------------------------------------------------------------

    A separate multiplier is applied to mobile homes for all 
disaster types. The mobile home multipliers are $77,058 for major-
low, $98,463 for major-high, and $134,834 for severe.

Methods for Estimating Serious Unmet Economic Revitalization Needs

    Based on SBA disaster loans to businesses using data for 2023 
and 2024 disasters from as of November 19, 2024, HUD calculates the 
median real estate and content loss by the following damage 
categories for each disaster:

 Category 1: real estate + content loss = below $12,000
 Category 2: real estate + content loss = $12,000-$29,999
 Category 3: real estate + content loss = $30,000-$64,999
 Category 4: real estate + content loss = $65,000-$149,999
 Category 5: real estate + content loss = $150,000 and above

    For properties with real estate and content loss of $30,000 or 
more, HUD calculates the estimated amount of unmet needs for small 
businesses by multiplying the median damage estimates for the 
categories above by the number of small businesses denied an SBA 
loan, including those denied a loan prior to inspection due to 
inadequate credit or income (or a decision had not been made), under 
the assumption that damage among those denied at pre-inspection have 
the same distribution of damage as those denied after inspection.
    Because many of the larger disasters of 2023 and 2024 occurred 
recently and business need data remain incomplete for many 
disasters, no disaster in 2023 or 2024 receives for business unmet 
need less than 10 percent of their unmet housing need.

Methods for Estimating Unmet Infrastructure Needs

    To calculate 2024 unmet needs for infrastructure projects, HUD 
received FEMA cost estimates on November 20, 2024 of the expected 
local cost share to repair the permanent public infrastructure 
(Categories C to G) to their pre-storm condition.
    Because many of the larger disasters of 2023 and 2024 occurred 
recently and infrastructure need data remain incomplete for many 
disasters, no disaster in 2023 or 2024 receives for infrastructure 
unmet need of less than 10 percent of their unmet housing need.

Disaster Level Allocation Calculation

    Once eligible entities are identified using the above criteria, 
the allocation to individual grantees represents their proportional 
share of the estimated unmet needs. For the formula allocation, HUD 
calculates total unmet recovery needs for eligible disasters as the 
aggregate of:
     Serious unmet housing needs in most impacted and 
distressed areas;
     Serious unmet business needs; and
     Unmet infrastructure need.
Mitigation is calculated as 15 percent of the unmet need 
calculation. Both unmet needs and mitigation grant amounts are 
rounded to the nearest $1,000.
    The unmet needs and mitigation are slightly greater than the 
amount to be allocated, so the amount allocated reflects the unmet 
needs and mitigation less a 1.2488 percent pro-rata reduction.

Grantee Level Allocations

    As noted above, the basic formula for allocating these funds is 
to calculate for each disaster meeting a minimum ``most impacted and 
distressed'' damage threshold a formula that uses an estimate of 
unmet needs for housing, economic revitalization, and infrastructure 
plus 15 percent more for mitigation. Because in CY 2023 and CY 2024 
some States and counties were impacted by multiple disasters, some 
States and counties are proposed to receive a single award for 
multiple disasters.
    Where there are most impacted CDBG entitlement cities and/or 
CDBG entitlement urban counties, direct allocations were calculated 
to meet the dual goals of (i) funding locally and (ii) supporting 
efficient and effective program implementation.
    Note that when an urban county is identified, the funds 
allocated are for the entirety of the county, not just participating 
jurisdiction in the regular CDBG program. The exception is when an 
entitlement city is also receiving a direct CDBG-DR award, in which 
case that is subtracted out of the county calculation.

[FR Doc. 2025-00943 Filed 1-15-25; 8:45 am]
BILLING CODE 4210-67-P
```