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[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3702 Engrossed in House (EH)]

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116th CONGRESS
  1st Session
                                H. R. 3702

_______________________________________________________________________

                                 AN ACT

 
To authorize the Secretary of Housing and Urban Development to provide 
  disaster assistance to States, Puerto Rico, units of general local 
government, and Indian tribes under a community development block grant 
           disaster recovery program, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Reforming Disaster Recovery Act of 
2019''.

SEC. 2. COMMUNITY DEVELOPMENT BLOCK GRANT DISASTER RECOVERY PROGRAM.

    (a) In General.--Title I of the Housing and Community Development 
Act of 1974 (42 U.S.C. 5301 et seq.) is amended by adding at the end 
the following new section:

``SEC. 123. CDBG-DISASTER RECOVERY ASSISTANCE.

    ``(a) Authority; Use.--The Secretary may provide assistance under 
this section to States, including Puerto Rico, units of general local 
government, and Indian tribes for necessary expenses for activities 
authorized under this title related to disaster relief, resiliency, 
long-term recovery, restoration of infrastructure and housing, 
mitigation, and economic revitalization in the most impacted and 
distressed areas (as such term shall be defined by the Secretary by 
regulation) resulting from a major disaster declared pursuant to the 
Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 
U.S.C. 5121 et seq.).
    ``(b) Allocation; Coordination.--
            ``(1) Allocation for mitigation.--In determining the amount 
        allocated under this section for any grantee, the Secretary 
        shall include an additional amount for mitigation that is not 
        less than 45 percent of the amount allocated for such grantee 
        for unmet needs.
            ``(2) Deadlines for allocation.--Except as provided in 
        paragraph (3), after the enactment of an Act making funds 
        available for assistance under this section, the Secretary 
        shall allocate for grantees, based on the best available data 
        all funds provided for assistance under this section within 60 
        days of the date of the enactment of such Act.
            ``(3) Inapplicability of deadlines based on insufficient 
        information.--The deadlines under paragraph (2) for allocation 
        of funds shall not apply in the case of funds made available 
        for assistance under this section if Federal Emergency 
        Management Agency has not made sufficient information available 
        to the Secretary regarding relevant unmet recovery needs to 
        make allocations in accordance with such deadlines. The 
        Secretary shall notify the Congress of progress on or delay in 
        receiving the necessary information within 60 days following 
        declaration of such a major disaster and monthly thereafter 
        until all necessary information is received.
            ``(4) Obligation of amounts by the secretary.--Subject to 
        subsection (c)(1), the Secretary shall provide for the 
        disbursement of the amounts allocated for a grantee, but shall 
        require the grantee to be in substantial compliance with the 
        requirements of this section before each such disbursement.
            ``(5) Coordination of disaster benefits and data with other 
        federal agencies.--
                    ``(A) Coordination of data.--The Secretary shall 
                coordinate with other agencies to obtain data on 
                recovery needs, including the Administrator of the 
                Federal Emergency Management Agency and the 
                Administrator of the Small Business Administration, and 
                other agencies when necessary regarding disaster 
                benefits.
                    ``(B) Coordination with fema.--The Secretary shall 
                share with the Administrator of the Federal Emergency 
                Management Agency, and make publicly available, all 
                data collected, possessed, or analyzed during the 
                course of a disaster recovery for which assistance is 
                provided under this section including--
                            ``(i) all data on damage caused by the 
                        disaster;
                            ``(ii) information on how any Federal 
                        assistance provided in connection with the 
                        disaster is expended; and
                            ``(iii) information regarding the effect of 
                        the disaster on education, transportation 
                        capabilities and dependence, housing needs, 
                        health care capacity, and displacement of 
                        persons.
                    ``(C) Requirements regarding eligibility for direct 
                assistance and duplication of benefits.--
                            ``(i) Compliance.--Funds made available 
                        under this subsection shall be used in 
                        accordance with section 312 of the Robert T. 
                        Stafford Disaster Relief and Emergency 
                        Assistance Act (42 U.S.C. 5155), as amended by 
                        section 1210 of the Disaster Recovery Reform 
                        Act of 2018 (division D, Public Law 115-254), 
                        and such rules as may be prescribed under such 
                        section.
                            ``(ii) Priority.--Households having the 
                        lowest incomes shall be prioritized for 
                        assistance under this subsection until all 
                        unmet needs are satisfied for families having 
                        an income up to 120 percent of the median for 
                        the area.
                    ``(D) Treatment of duplicative benefits.--In any 
                case in which a grantee provides assistance that 
                duplicates benefits available to a person for the same 
                purpose from another source, the grantee itself shall 
                either (i) be subject to remedies for noncompliance 
                under section 111, or (ii) bear responsibility for 
                absorbing such cost of duplicative benefits and 
                returning an amount equal to any duplicative benefits 
                paid to the grantee's funds available for use under 
                this section or to the Community Development Block 
                Grant Disaster Recovery Reserve Fund under section 124, 
                unless the Secretary issues a public determination by 
                publication in the Federal Register that it is not in 
                the best interest of the Federal Government to pursue 
                such remedies.
                    ``(E) Protection of personally identifiable 
                information.--In carrying out this paragraph, the 
                Secretary and the grantee shall take such actions as 
                may be necessary to ensure that personally identifiable 
                information regarding recipients of assistance provided 
                from funds made available under this section is not 
                made publicly available by the Department of Housing 
                and Urban Development or any agency with which 
                information is shared pursuant to this paragraph.
    ``(c) Plan for Use of Assistance.--
            ``(1) Requirement.--Not later than 90 days after the 
        allocation pursuant to subsection (b)(1) of all of the funds 
        made available by an appropriations Act for assistance under 
        this section and before the Secretary obligates any of such 
        funds for a grantee, the grantee shall submit a plan to the 
        Secretary for approval detailing the proposed use of all funds, 
        which shall include, at a minimum--
                    ``(A) criteria for eligibility for each proposed 
                use of funds, including eligibility limits on income 
                and geography, and a description of how each proposed 
                use of such funds will comply with all civil rights and 
                fair housing laws and will address unmet needs relating 
                to disaster relief, resiliency, long-term recovery, 
                restoration of infrastructure and housing, mitigation, 
                and economic revitalization in the most impacted and 
                distressed areas, including assistance to impacted 
                households experiencing homelessness as defined by 
                section 103 of the McKinney-Vento Homeless Assistance 
                Act (42 U.S.C. 11302) or at risk of homelessness as 
                defined by section 401 of such Act (42 U.S.C. 11360);
                    ``(B) an agreement to share data, disaggregated by 
                the smallest census tract, block group, or block 
                possible for the data set, with Federal agencies and 
                other providers of disaster relief, which shall include 
                information the grantee has regarding the matters 
                described in subsection (b)(4)(B);
                    ``(C) identification of officials and offices 
                responsible for administering such funds and processes 
                and procedures for identifying and recovering duplicate 
                benefits; and
                    ``(D) a plan for ensuring compliance with the Fair 
                Housing Act, which may include, at the election of the 
                grantee, providing for partnerships with local fair 
                housing organizations and funding set-aside for local 
                fair housing organizations to handle complaints 
                relating to assistance with amounts made available for 
                use under this section.
            ``(2) Approval.--The Secretary shall, by regulation, 
        specify criteria for approval of plans under paragraph (1), 
        including approval of substantial amendments to such plans.
            ``(3) Disapproval.--The Secretary shall disapprove a plan 
        or substantial amendment to a plan if--
                    ``(A) the plan or substantial amendment does not 
                meet the approval criteria;
                    ``(B) based on damage and unmet needs assessments 
                of the Secretary and the Federal Emergency Management 
                Administration or such other information as may be 
                available, the plan or amendment does not address 
                equitable allocation of resources--
                            ``(i) between infrastructure and housing 
                        activities; and
                            ``(ii) between homeowners, renters, and 
                        persons experiencing homelessness;
                    ``(C) the plan or amendment does not provide an 
                adequate plan for ensuring that funding provided under 
                this section is used in compliance with the Fair 
                Housing Act;
                    ``(D) the plan or amendment does not prioritize the 
                one-for-one replacement, with cost adjustment where 
                appropriate, of damaged dwelling units in public 
                housing, in projects receiving tax credits pursuant to 
                section 42 of the Internal Revenue Code of 1986, or in 
                projects assisted under section 202 of the Housing Act 
                of 1959 (12 U.S.C. 1701q), under section 811 of the 
                Cranston-Gonzalez National Affordable Housing Act (42 
                U.S.C. 8013), under the HOME Investment Partnerships 
                Act (42 U.S.C. 12721 et seq.), under the community 
                development block grant program under this title, or by 
                the Housing Trust Fund under section 1338 of the 
                Housing and Community Development Act of 1992 (12 
                U.S.C. 4568); or
                    ``(E) the plan or amendment does not provide a 
                process to provide applicants--
                            ``(i) notice by grantee of applicant's 
                        right to appeal any adverse action or inaction;
                            ``(ii) right to full discovery of 
                        applicant's entire application file; and
                            ``(iii) right to appeal to a court of 
                        competent jurisdiction in the vicinage of the 
                        applicant's residence at the time of the 
                        appeal.
            ``(4) Public consultation.-- In developing the plan 
        required under paragraph (1), a grantee shall, at a minimum--
                    ``(A) consult with affected residents, 
                stakeholders, local governments, and public housing 
                authorities to assess needs;
                    ``(B) publish the plan in accordance with the 
                requirements set forth by the Secretary, including a 
                requirement to prominently post the plan on the website 
                of the grantee for not less than 14 days;
                    ``(C) ensure equal access for individuals with 
                disabilities and individuals with limited English 
                proficiency; and
                    ``(D) publish the plan in a manner that affords 
                citizens, affected local governments, and other 
                interested parties a reasonable opportunity to examine 
                the contents of the plan and provide feedback.
            ``(5) Resubmission.--The Secretary shall permit a grantee 
        to revise and resubmit a disapproved plan or plan amendment.
            ``(6) Timing.--
                    ``(A) In general.--The Secretary shall approve or 
                disapprove a plan not later than 60 days after 
                submission of the plan to the Secretary. The Secretary 
                shall immediately notify the applicant of the 
                Secretary's decision.
                    ``(B) Disapproval.--If the Secretary disapproves a 
                plan, not later than 15 days after such disapproval the 
                Secretary shall inform the applicant in writing of (A) 
                the reasons for disapproval, and (B) actions that the 
                applicant could take to meet the criteria for approval.
                    ``(C) Amendments; resubmission.--The Secretary 
                shall, for a period of not less than 45 days following 
                the date of disapproval, permit amendments to, or the 
                resubmission of, any plan that is disapproved. The 
                Secretary shall approve or disapprove a plan amendment 
                not less than 30 days after receipt of such amendments 
                or resubmission.
                    ``(D) Grant agreements.--Subject to subsection 
                (b)(3), the Secretary shall ensure that all grant 
                agreements necessary for prompt disbursement of funds 
                allocated to a grantee are executed within 60 days of 
                approval of grantee's plan.
    ``(d) Financial Controls.--
            ``(1) Compliance system.--The Secretary shall develop and 
        maintain a system to ensure that each grantee has and will 
        maintain for the life of the grant--
                    ``(A) proficient financial controls and procurement 
                processes;
                    ``(B) adequate procedures to ensure that all 
                eligible families and individuals are approved for 
                assistance with amounts made available under this 
                section and that recipients are provided the full 
                amount of assistance for which they are eligible;
                    ``(C) adequate procedures to prevent any 
                duplication of benefits, as defined by section 312 of 
                the Robert T. Stafford Disaster Relief and Emergency 
                Assistance Act (42 U.S.C. 5155), to ensure timely 
                expenditure of funds, and to detect and prevent waste, 
                fraud, and abuse of funds; and
                    ``(D) adequate procedures to ensure the grantee 
                will maintain comprehensive and publicly accessible 
                websites that make available information regarding all 
                disaster recovery activities assisted with such funds, 
                which information shall include--
                            ``(i) full and unredacted copies of all 
                        requests for qualification for assistance or 
                        for procurement with such funds, however 
                        styled;
                            ``(ii) all responses to such requests, 
                        subject to redactions necessary to protect 
                        personal or proprietary data;
                            ``(iii) the identity of any entity that 
                        reviews, evaluates, scores, or otherwise 
                        influences or determines the disposition of 
                        such requests;
                            ``(iv) all reports, however styled, 
                        containing the reviewing individual or entity's 
                        scores, findings, and conclusions regarding 
                        such requests; and
                            ``(v) any resulting contract, agreement, or 
                        other disposition of such requests; except that 
                        such procedures shall ensure that personally 
                        identifiable information regarding recipients 
                        of assistance provided from funds made 
                        available under this section shall not be made 
                        publicly available.
            ``(2) Evaluation of compliance.--The Secretary shall 
        provide, by regulation or guideline, a method for qualitatively 
        and quantitatively evaluating compliance with the requirements 
        under paragraph (1).
            ``(3) Certification.--As a condition of making any grant, 
        the Secretary shall certify in advance that the grantee has in 
        place the processes and procedures required under subparagraphs 
        (A) through (D) of paragraph (1).
    ``(e) Use of Funds.--
            ``(1) Administrative costs.--
                    ``(A) In general.--A State, unit of general local 
                government, or Indian tribe receiving a grant under 
                this section may use not less than 7 percent and not 
                more than 10 percent of the amount of grant funds 
                received, or within such other percentage as may be 
                established pursuant to subparagraph (B), for 
                administrative costs and shall document the use of 
                funds for such purpose in accordance with such 
                requirements as the Secretary shall establish.
                    ``(B) Discretion to establish sliding scale.--The 
                Secretary may establish a series of percentage 
                limitations on the amount of grant funds received that 
                may be used by a grantee for administrative costs, but 
                only if--
                            ``(i) such percentage limitations are based 
                        on the amount of grant funds received by a 
                        grantee;
                            ``(ii) such series provides that the 
                        percentage that may be so used is lower for 
                        grantees receiving a greater amount of grant 
                        funds and such percentage that may be so used 
                        is higher for grantees receiving a lesser 
                        amount of grant funds; and
                            ``(iii) in no case may a grantee so use 
                        more than 10 percent of grant funds received.
            ``(2) Limitations on use.--Amounts from a grant under this 
        section may not be used for activities--
                    ``(A) that are reimbursable, or for which funds are 
                made available, by the Federal Emergency Management 
                Agency, including under the Robert T. Stafford Disaster 
                Relief and Emergency Assistance Act or the National 
                Flood Insurance Program; or
                    ``(B) for which funds are made available by the 
                Army Corps of Engineers.
            ``(3) HUD administrative costs.--
                    ``(A) Limitation.--Of any funds made available for 
                use under this section by any single appropriations 
                Act, the Secretary may use 1 percent of any such amount 
                exceeding $1,000,000,000 for necessary costs, including 
                information technology costs, of administering and 
                overseeing the obligation and expenditure of amounts 
                made available for use under this section.
                    ``(B) Transfer of funds.--Any amounts made 
                available for use in accordance with subparagraph (A)--
                            ``(i) shall be transferred to the account 
                        for Program Office Salaries and Expenses--
                        Community Planning and Development for the 
                        Department;
                            ``(ii) shall remain available until 
                        expended; and
                            ``(iii) may be used for administering any 
                        funds appropriated to the Department for any 
                        disaster and related purposes in any prior or 
                        future Act, notwithstanding the disaster for 
                        which such funds were appropriated.
            ``(4) Inspector general.--Of any funds made available for 
        use in accordance with paragraph (3)(A), 15 percent shall be 
        transferred to the Office of the Inspector General for 
        necessary costs of audits, reviews, oversight, evaluation, and 
        investigations relating to amounts made available for use under 
        this section.
            ``(5) Capacity building.--Of any funds made available for 
        use under this section, not more than 0.1 percent or 
        $15,000,000, whichever is less, shall be made available to the 
        Secretary for capacity building and technical assistance, 
        including assistance regarding contracting and procurement 
        processes, to support grantees and subgrantees receiving funds 
        under this section.
            ``(6) Mitigation planning.--
                    ``(A) Requirement.--The Secretary shall require 
                each grantee to use a fixed percentage of any grant 
                funds for comprehensive mitigation planning.
                    ``(B) Amount.--Such fixed percentage shall not be 
                less than 15 percent, except that the Secretary may by 
                regulation establish a lower percentage for grantees 
                receiving a grant exceeding $1,000,000,000.
                    ``(C) Coordination.--Each grantee shall ensure that 
                such comprehensive mitigation plans are coordinated and 
                aligned with existing comprehensive, land use, 
                transportation, and economic development plans, and 
                specifically analyze multiple types of hazard exposures 
                and risks. Each grantee shall coordinate and align such 
                mitigation planning with other mitigation projects 
                funded by the Federal Emergency Management Agency, the 
                Army Corps of Engineers, the Forest Service, and other 
                agencies as appropriate.
                    ``(D) Use of funds.--Such funds may be used for the 
                purchase of data and development or updating of risk 
                mapping for all relevant hazards.
                    ``(E) Priority.--Grantees shall prioritize the 
                expenditure of mitigation dollars for programs and 
                projects primarily benefitting persons of low and 
                moderate income with the greatest risk of harm from 
                natural hazards.
            ``(7) Building safety.--
                    ``(A) In general.--After consultation with the 
                Administrator of the Federal Emergency Management 
                Agency, the Secretary shall provide that no funds made 
                available under this section shall be used for 
                installation, substantial rehabilitation, 
                reconstruction, or new construction of infrastructure 
                or residential, commercial, or public buildings in 
                hazard-prone areas, unless construction complies with 
                paragraph (8) and with the latest published editions of 
                relevant national consensus-based codes, and 
                specifications and standards referenced therein, except 
                that nothing in this section shall be construed to 
                prohibit a grantee from requiring higher standards.
                    ``(B) Savings provision.--Nothing in subparagraph 
                (A) shall be construed as a requirement for a grantee 
                to adopt the latest published editions of relevant 
                national consensus-based codes, specifications, and 
                standards.
                    ``(C) Compliance.--Compliance with this paragraph 
                may be certified by a registered design professional.
                    ``(D) Definitions.--For purposes of this paragraph, 
                the following definitions shall apply:
                            ``(i) Hazard-prone areas.--The term 
                        `hazard-prone areas' means areas identified by 
                        the Secretary, in consultation with the 
                        Administrator, at risk from natural hazards 
                        that threaten property damage or health, 
                        safety, and welfare, such as floods (including 
                        special flood hazard areas), wildfires 
                        (including Wildland-Urban Interface areas), 
                        earthquakes, tornados, and high winds. The 
                        Secretary may consider future risks and the 
                        likelihood such risks may pose to protecting 
                        property and health, safety, and general 
                        welfare when making the determination of or 
                        modification to hazard-prone areas.
                            ``(ii) Latest published editions.--The term 
                        `latest published editions' means, with respect 
                        to relevant national consensus-based codes, and 
                        specifications and standards referenced 
                        therein, the two most recent published 
                        editions, including, if any, amendments made by 
                        State, local, tribal, or territorial 
                        governments during the adoption process, that 
                        incorporate the latest natural hazard-resistant 
                        designs and establish criteria for the design, 
                        construction, and maintenance of structures and 
                        facilities that may be eligible for assistance 
                        under this section for the purposes of 
                        protecting the health, safety, and general 
                        welfare of a buildings's users against 
                        disasters.
            ``(8) Flood risk mitigation.--
                    ``(A) Requirements.--Subject to subparagraph (B), 
                the Secretary shall require that any structure that is 
                located in an area having special flood hazards and 
                that is newly constructed, for which substantial damage 
                is repaired, or that is substantially improved, using 
                amounts made available under this section, shall be 
                elevated with the lowest floor, including the basement, 
                at least two feet above the base flood level, except 
                that critical facilities, including hospitals, nursing 
                homes, and other public facilities providing social and 
                economic lifelines, as defined by the Secretary, shall 
                be elevated at least 3 feet above the base flood 
                elevation (or higher if required under paragraph (7)).
                    ``(B) Alternative mitigation.--In the case of 
                existing structures consisting of multifamily housing 
                and row houses, the Secretary shall seek consultation 
                with the Administrator of the Federal Emergency 
                Management Agency, shall provide for alternative forms 
                of mitigation (apart from elevation), and shall exempt 
                from the requirement under subparagraph (A) any such 
                structure that meets the standards for such an 
                alternative form of mitigation.
                    ``(C) Definitions.--For purposes of subparagraph 
                (A), the terms `area having special flood hazards', 
                `newly constructed', `substantial damage', `substantial 
                improvement', and `base flood level' have the same 
                meanings as under the Flood Disaster Protection Act of 
                1973 and the National Flood Insurance Act of 1968 (42 
                U.S.C. 4001 et seq.).
    ``(f) Administration.--In administering any amounts made available 
for assistance under this section, the Secretary--
            ``(1) may not allow a grantee to use any such amounts for 
        any purpose other than the purpose approved by the Secretary in 
        the plan or amended plan submitted under subsection (c)(1) to 
        the Secretary for use of such amounts;
            ``(2) may not permit a grantee to amend a plan to 
        retroactively approve a beneficiary's use of funds for an 
        eligible activity other than an activity for which the funds 
        were originally approved in the plan; and
            ``(3) shall prohibit a grantee from delegating, by contract 
        or otherwise, the responsibility for inherent government 
        functions.
    ``(g) Training for Grant Management for Subgrantees.--The Secretary 
shall require each grantee to provide ongoing training to all staff and 
subgrantees.
    ``(h) Procurement Processes and Procedures for Grantees.--
            ``(1) Grantee processes and procedures.--In procuring 
        property or services to be paid for in whole or in part with 
        amounts from a grant under this section, a grantee shall--
                    ``(A) follow its own procurement processes and 
                procedures, but only if the Secretary makes a 
                determination that such processes and procedures comply 
                with the requirements under paragraph (2); or
                    ``(B) comply with such processes and procedures as 
                the Secretary shall, by regulation, establish for 
                purposes of this section.
            ``(2) Requirements.--The requirements under this paragraph 
        with respect to the procurement processes and procedures of a 
        grantee are that such processes and procedures shall--
                    ``(A) provide for full and open competition and 
                require cost or price analysis;
                    ``(B) include requirements for procurement policies 
                and procedures for subgrantees;
                    ``(C) specify methods of procurement and their 
                applicability, but not allow cost-plus-a-percentage-of 
                cost or percentage-of-construction-cost methods of 
                procurement;
                    ``(D) include standards of conduct governing 
                employees engaged in the award or administration of 
                contracts; and
                    ``(E) ensure that all purchase orders and contracts 
                include any clauses required by Federal statute, 
                Executive order, or implementing regulation.
            ``(3) Noncompliance.--In the case of a grantee for which 
        the Secretary finds pursuant to paragraph (1)(A) that its 
        procurement processes and procedures do not comply with 
        paragraph (2), the Secretary shall--
                    ``(A) provide the grantee with specific written 
                notice of the elements of noncompliance and the changes 
                necessary to such processes and procedures to provide 
                for compliance;
                    ``(B) provide the grantee a reasonable period of 
                time to come into compliance; and
                    ``(C) during such period allow the grantee to 
                proceed with procuring property and services paid for 
                in whole or in part with amounts from a grant under 
                this section in compliance with the procurement 
                processes and procedures of the grantee, but only if 
                the Secretary determines that the grantee is making a 
                good faith effort to effectuate compliance with the 
                requirements of paragraph (2).
    ``(i) Treatment of CDBG Allocations.--Amounts made available for 
use under this section shall not be considered relevant to the non-
disaster formula allocations made pursuant to section 106 of this title 
(42 U.S.C. 5306).
    ``(j) Waivers.--
            ``(1) Authority.--Subject to the other provisions of this 
        section, in administering amounts made available for use under 
        this section, the Secretary may 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 the use by the recipient of such 
        funds (except for requirements related to fair housing, 
        nondiscrimination, labor standards, and the environment and 
        except for the requirements of this section), if the Secretary 
        makes a public finding that good cause exists for the waiver or 
        alternative requirement and such waiver or alternative 
        requirement would not be inconsistent with the overall purpose 
        of this title.
            ``(2) Notice and publication.--Any waiver of or alternative 
        requirement pursuant to paragraph (1) shall not take effect 
        before the expiration of the 5-day period beginning upon the 
        publication of notice in the Federal Register of such waiver or 
        alternative requirement.
            ``(3) Low- and moderate-income use.--The requirements in 
        this Act that apply to grants made under section 106 of this 
        title (except those related to the allocation) apply equally to 
        grants under this section unless modified by a waiver or 
        alternative requirement pursuant to paragraph (1). 
        Notwithstanding the preceding sentence, the Secretary may not 
        grant a waiver to reduce the percentage of funds that must be 
        used for activities that benefit persons of low and moderate 
        income to less than 70 percent, unless the Secretary 
        specifically finds that there is compelling need to further 
        reduce the percentage requirement and that funds are not 
        necessary to address the housing needs of low- and moderate-
        income residents.
            ``(4) Prohibition.--The Secretary may not waive any 
        provision of this section pursuant to the authority under 
        paragraph (1).
    ``(k) Environmental Review.--
            ``(1) Adoption.--Notwithstanding subsection (j)(1), 
        recipients of funds provided under this section that use such 
        funds to supplement Federal assistance provided under section 
        402, 403, 404, 406, 407, 408(c)(4), 428, or 502 of the Robert 
        T. Stafford Disaster Relief and Emergency Assistance Act (42 
        U.S.C. 5121 et seq.) may adopt, without review or public 
        comment, any environmental review, approval, or permit 
        performed by a Federal agency, and such adoption shall satisfy 
        the responsibilities of the recipient with respect to such 
        environmental review, approval, or permit under section 
        104(g)(1) of this title (42 U.S.C. 5304(g)(1)).
            ``(2) Release of funds.--Notwithstanding section 104(g)(2) 
        of this title (42 U.S.C. 5304(g)(2)), the Secretary may, upon 
        receipt of a request for release of funds and certification, 
        immediately approve the release of funds for an activity or 
        project assisted with amounts made available for use under this 
        section if the recipient has adopted an environmental review, 
        approval or permit under paragraph (1) or the activity or 
        project is categorically excluded from review under the 
        National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
        seq.).
    ``(l) Collection of Information; Audits and Oversight.--
            ``(1) Collection of information.--For each major disaster 
        for which assistance is made available under this section, the 
        Secretary shall collect information from grantees regarding all 
        recovery activities so assisted, including information on 
        applicants and recipients of assistance, and shall make such 
        information available to the public and to the Inspector 
        General for the Department of Housing and Urban Development on 
        a monthly basis using uniform data collection practices, and 
        shall provide a monthly update to the Congress regarding 
        compliance with this section. Information collected and 
        reported by grantees and the Secretary shall be disaggregated 
        by program, race, income, geography, and all protected classes 
        of individuals under the Robert T. Stafford Disaster Relief and 
        Emergency Assistance Act, the Americans with Disabilities Act 
        of 1990, the Fair Housing Act, the Civil Rights Act of 1964, 
        and other civil rights and nondiscrimination protections, with 
        respect to the smallest census tract, block group, or block 
        possible for the data set.
            ``(2) Availability of information.-- In carrying out this 
        paragraph, the Secretary may make full and unredacted 
        information available to academic and research institutions for 
        the purpose of research into the equitable distribution of 
        recovery funds, adherence to civil rights protections, and 
        other areas.
            ``(3) Protection of information.--The Secretary shall take 
        such actions and make such redactions as may be necessary to 
        ensure that personally identifiable information regarding 
        recipients of assistance provided from funds made available 
        under this section shall not made publicly available.
            ``(4) Audits and oversight.--In conducting audits, reviews, 
        oversight, evaluation, and investigations, in addition to 
        activities designed to prevent and detect waste, fraud, and 
        abuse, the Inspector General shall review programs of grantees 
        under this section for providing disaster relief and recovery 
        assistance to ensure such programs fulfill their agreed-upon 
        purposes and serve all eligible applicants for disaster relief 
        or recovery assistance.
    ``(m) Best Practices.--
            ``(1) Study.--The Secretary shall direct the Office 
        Community Planning and Development to collaborate with the 
        Office of Policy Development and Research to identify best 
        practices for grantees on issues including developing the 
        action plan under subsection (c) and substantive amendments, 
        establishing financial controls, building grantee technical and 
        administrative capacity, procurement, compliance with Fair 
        Housing Act statute and regulations, and use of grant funds as 
        local match for other sources of federal funding. The Secretary 
        shall publish a compilation of such identified best practices 
        and share with all relevant grantees to facilitate a more 
        efficient and effective disaster recovery process. The 
        compilation shall include guidelines for housing and economic 
        revitalization programs, including mitigation, with sufficient 
        model language on program design for grantees to incorporate 
        into action plans. The compilation shall include standards for 
        at least form of application, determining unmet need, and 
        income eligibility.
            ``(2) Promulgation.--After publication of the final 
        compilation, the Secretary shall issue either Federal 
        regulations, as part of the final rule for the above 
        authorization or as a separate rule, or a Federal Register 
        notice that establishes the requirements which grantees must 
        follow in order to qualify for expedited review and approval. 
        Such guidance shall establish standard language for inclusion 
        in action plans under subsection (c) and for establishing 
        standardized programs and activities recognized by the 
        Secretary. Use of best practices shall not preclude grantees 
        from standard requirements for public comment, community 
        engagement, and online posting of the action plan. Use of 
        promulgated best practices shall allow for an expedited review 
        process, under which the Secretary will approve or disapprove 
        such programs within 30 days. The Secretary shall publish the 
        draft compilation of best practices on its website and allow 
        the public 60 days to submit comments. The Secretary shall 
        review all public comments and publish a final compilation 
        within 1 year from the date of enactment. The Secretary may 
        revise the requirements for best practices at any time after a 
        public comment period of at least 60 days.
    ``(n) Plan Pre-Certification for Units of General Local 
Government.--
            ``(1) In general.--The Secretary shall carry out a program 
        under this subsection to provide for units of general local 
        government to pre-certify as eligible grantees for assistance 
        under this section. The objective of such program shall be to--
                    ``(A) allow grantees that have consistently 
                demonstrated the ability to administer funds 
                responsibly and equitably in similar disasters to 
                utilize in subsequent years plans which are 
                substantially similar to those the Department has 
                previously approved; and
                    ``(B) facilitate the re-use of a plan or its 
                substantially similar equivalent by a pre-certified 
                grantee for whom the plan has previously been approved 
                and executed upon.
            ``(2) Requirements.--To be eligible for pre-certification 
        under the program under this subsection a unit of general local 
        government shall--
                    ``(A) demonstrate to the satisfaction of the 
                Secretary compliance with the requirements of this 
                section; and
                    ``(B) have previously submitted a plan or its 
                substantially similar equivalent and received 
                assistance thereunder as a grantee or subgrantee under 
                this section, or with amounts made available for the 
                Community Development Block Grant--Disaster Recovery 
                account, in connection with two or more major disasters 
                declared pursuant to the Robert T. Stafford Disaster 
                Relief and Emergency Assistance Act (42 U.S.C. 5121 et 
                seq.).
            ``(3) Approval of plans.--
                    ``(A) Expedited approval processes.--The Secretary 
                shall establish and maintain processes for expediting 
                approval of plans for units of general local government 
                that are pre-certified under this subsection.
                    ``(B) Effect of pre-certification.--Pre-
                certification pursuant to this subsection shall not--
                            ``(i) establish any entitlement to, or 
                        priority or preference for, allocation of funds 
                        made available under this section; or
                            ``(ii) exempt any grantee from complying 
                        with any of the requirements under, or 
                        established pursuant to, subsection (c) or (d).
            ``(4) Duration.--Pre-certification under this subsection 
        shall be effective for a term of 10 years.
    ``(o) Deposit of Unused Amounts in Fund.--
            ``(1) In general.--If any amounts made available for 
        assistance under this section to grantees remain unexpended 
        upon the earlier of--
                    ``(A) the date that the grantee of such amounts 
                notifies the Secretary that the grantee has completed 
                all activities identified in the grantee's plan for use 
                of such amounts that was approved by the Secretary in 
                connection with such grant; or
                    ``(B) the expiration of the 6-year period beginning 
                upon the Secretary obligating such amounts to the 
                grantee, as such period may be extended pursuant to 
                paragraph (2);
        the Secretary may, subject to authority provided in advance by 
        appropriations Acts, transfer such unexpended amounts to the 
        Secretary of the Treasury for deposit into the Community 
        Development Block Grant Disaster Recovery Reserve Fund 
        established under section 124, except that the Secretary may, 
        by regulation, permit the grantee to retain amounts needed to 
        close out the grant.
            ``(2) Extension of period for use of funds.--
                    ``(A) In general.--The period under paragraph 
                (1)(B) shall be extended by not more than 4 years if, 
                before the expiration of such 6-year period, the 
                Secretary waives this requirement and submits a written 
                justification for such waiver to the Committees on 
                Appropriations of the House of Representatives and the 
                Senate that specifies the period of such extension.
                    ``(B) Insular area.--For any amounts made available 
                for assistance under this section to a grantee that is 
                an insular area as specified in section 107(b)(1), the 
                Secretary may extend the waiver period under 
                subparagraph (A) by not more than an additional 4 
                years, and shall provide additional technical 
                assistance to help increase capacity within the insular 
                area receiving such extension. If the Secretary extends 
                the waiver period pursuant to this subparagraph, the 
                Secretary shall submit a written justification for such 
                extension to the Committees on Appropriations of the 
                House of Representatives and the Senate that specifies 
                the period of such extension.
    ``(p) Definitions.--For purposes of this section:
            ``(1) Grantee.--The term `grantee' means a recipient of 
        funds made available under this section after its enactment.
            ``(2) Substantially similar.--The term `substantially 
        similar' means, with respect to a plan, a plan previously 
        approved by the Department, administered successfully by the 
        grantee, and relating to disasters of the same type.
            ``(3) Other terms.--Within 1 year of enactment of this 
        section, the Department shall issue rules to define the 
        following terms:
                    ``(A) Unmet needs.
                    ``(B) Most impacted and distressed.
                    ``(C) Substantial compliance.
                    ``(D) Full and open competition.
                    ``(E) Cost plus a percentage of cost.
                    ``(F) Percentage of construction cost.

``SEC. 124. COMMUNITY DEVELOPMENT BLOCK GRANT DISASTER RECOVERY RESERVE 
              FUND.

    ``(a) Establishment.--There is established in the Treasury of the 
United States an account to be known as the Community Development Block 
Grant Disaster Recovery Reserve Fund (in this section referred to as 
the `Fund').
    ``(b) Amounts.--The Fund shall consist of any amounts appropriated 
to or deposited into the Fund, including amounts deposited into the 
Fund pursuant to section 123(o).
    ``(c) Use.--Amounts in the Fund shall be available, pursuant to the 
occurrence of a major disaster declared under the Robert T. Stafford 
Disaster Relief and Emergency Assistance Act, only for providing 
technical assistance and capacity building in connection with section 
123 for grantees under such section that have been allocated assistance 
under such section in connection with such disaster to facilitate 
planning required under such section and increase capacity to 
administer assistance provided under such section, including for 
technical assistance and training building and fire officials, 
builders, contractors and subcontractors, architects, and other design 
and construction professionals regarding the latest published editions 
of national consensus-based codes, specifications, and standards (as 
such term is defined in section 123(e)(7)).''.
    (b) Regulations.--
            (1) Proposed rule.--Not later than the expiration of the 6-
        month period beginning on the date of the enactment of this 
        Act, the Secretary of Housing and Urban Development shall issue 
        proposed rules to carry out sections 123 and 124 of the Housing 
        and Community Development Act of 1974, as added by the 
        amendment made by subsection (a) of this section, and shall 
        provide a 90-day period for submission of public comments on 
        such proposed rule.
            (2) Final rule.--Not later than the expiration of the 12-
        month period beginning on the date of the enactment of this 
        Act, the Secretary of Housing and Urban Development shall issue 
        final regulations to carry out sections 123 and 124 of the 
        Housing and Community Development Act of 1974, as added by the 
        amendment made by subsection (a) of this section.

            Passed the House of Representatives November 18, 2019.

            Attest:

                                                                 Clerk.
116th CONGRESS

  1st Session

                               H. R. 3702

_______________________________________________________________________

                                 AN ACT

To authorize the Secretary of Housing and Urban Development to provide 
  disaster assistance to States, Puerto Rico, units of general local 
government, and Indian tribes under a community development block grant 
           disaster recovery program, and for other purposes.
```