46312 Federal Register / Vol. 73, No. 154 / Friday, August 8, 2008 / Notices 

Naval Base 

Point Loma CA 

Landholding Agency: Navy 

Property Number: 77200830012 

Status: Unutilized 

Reasons: Secured Area 

New York 

Bldg. 913T 

Brookhaven Natl Laboratory 

Upton NY 11973 

Landholding Agency: Energy 

Property Number: 41200830001 

Status: Unutilized 

Reasons: Extensive deterioration; Secured 

Area; Within 2000 ft. of flammable or 

explosive material 

Ohio 

National Guard Facility 

1512 Oak Harbor Rd. 

Fremont OH 43420 

Landholding Agency: GSA 

Property Number: 54200830006 

Status: Excess 

GSA Number: 1–D–OH–834 

Reasons: Within 2000 ft. of flammable or 

explosive material 

Unsuitable Properties 

Building 

Utah 

Bldg. 00143 

Tooele Army Depot 

Tooele UT 84074 

Landholding Agency: Army 

Property Number: 21200830002 

Status: Unutilized 

Reasons: Extensive deterioration 

Virginia 

Bldgs. NH–18, NH–21 

Naval Support Activity 

Norfolk VA 23551 

Landholding Agency: Navy 

Property Number: 77200830014 

Status: Excess 

Reasons: Extensive deterioration; Secured 

Area 

Bldg. 100 

Naval Support Activity 

Lafayette River Annex 

Norfolk VA 23551 

Landholding Agency: Navy 

Property Number: 77200830015 

Status: Excess 

Reasons: Extensive deterioration; Secured 

Area 

Unsuitable Properties 

Land 

North Carolina 

0.23 acres 

Marine Corps Base 

Camp Lejeune NC 

Landholding Agency: Navy 

Property Number: 77200830013 

Status: Unutilized 

Reasons: Secured Area 

[FR Doc. E8–18181 Filed 8–7–08; 8:45 am] 

BILLING CODE 4210–67–P 

DEPARTMENT OF HOUSING AND 

URBAN DEVELOPMENT 

[Docket No. FR–5224–N–01] 

Reconsideration of Waivers Granted to 

and Alternative Requirements for 

Community Development Block Grant 

Disaster Recovery Grantees Under 

Public Laws 109–148 and 109–234 

AGENCY: Office of the Secretary, HUD. 

ACTION: Notice. 

SUMMARY: This Notice reconsiders and 

generally affirms the waivers made 

under the three ‘‘common’’ Notices 

governing grant funds for Community 

Development Block Grant (CDBG) 

disaster recovery grants for the purpose 

of assisting in the recovery in the most 

impacted and distressed areas related to 

the consequences of Hurricanes Katrina, 

Rita, and Wilma in the Gulf of Mexico 

in 2005. These prior notices were 

published in the Federal Register on 

February 13, 2006, October 30, 2006, 

and August 24, 2007. The Notice 

published today addresses the purpose 

and use of these funds, while 

highlighting unique components of the 

three notices and noting any changes 

made by HUD as the result of the 

required reconsideration of the waivers. 

For the most part, HUD is repeating or 

restating the original explanatory text so 

that grantees and program 

administrators may continue to have the 

explanation of a changed requirement 

and the requirement itself in a single 

document. 

DATES: Effective Date: August 8, 2008. 

FOR FURTHER INFORMATION CONTACT: 

Jessie Handforth Kome, Director, 

Disaster Recovery and Special Issues 

Division, Office of Block Grant 

Assistance, Department of Housing and 

Urban Development, 451 Seventh Street, 

SW., Room 7286, Washington, DC 

20410, telephone number 202–708–

3587. Persons with hearing or speech 

impairments may access this number 

via TTY by calling the Federal 

Information Relay Service at 800–877–

8339. Fax inquiries may be sent to Ms. 

Kome at 202–401–2044. (Except for the 

800 number, these telephone numbers 

are not toll-free.) 

SUPPLEMENTARY INFORMATION: 

Authority To Grant Waivers 

The Department of Defense, 

Emergency Supplemental 

Appropriations to Address Hurricanes 

in the Gulf of Mexico, and Pandemic 

Influenza Act, 2006 (Pub. L. 109–148, 

approved December 30, 2005) 

(Appropriations Act) appropriated $11.5 

billion, and Chapter 9 of Title II of the 

Emergency Supplemental 

Appropriations Act for Defense, the 

Global War on Terror, and Hurricane 

Recovery, 2006 (Pub. L. 109–234, 

approved June 15, 2006), appropriated 

$5.2 billion for a combined total of 

$16.7 billion in CDBG funds for 

necessary expenses related to disaster 

relief, long-term recovery, and 

restoration of infrastructure directly 

related to the consequences of the 

covered disasters. These 2006 Acts 

(collectively ‘‘the supplemental Acts’’) 

authorize the Secretary to waive, or 

specify alternative requirements for, any 

provision of any statute or regulation 

that the Secretary administers in 

connection with the obligation by the 

Secretary or by the five eligible states’

use of these funds, except for 

requirements related to fair housing, 

nondiscrimination, labor standards, and 

the environment, upon a request by one 

of the five states and a finding by the 

Secretary that such a waiver would not 

be inconsistent with the overall purpose 

of the statute. The difference between 

the waiver authorizations in the 

supplemental Acts is that Public Law 

109–148 directs that the Secretary 

‘‘shall’’ make the waivers in response to 

a state’s request and a consistency 

finding, while Public Law 109–234 

states that the Secretary ‘‘may’’ make 

such waivers. 

This Notice reconsiders and generally 

affirms the waivers made under the 

three ‘‘common’’ Notices governing 

grant funds for CDBG disaster recovery 

grants for the purpose of assisting in the 

recovery in the most impacted and 

distressed areas related to the 

consequences of Hurricanes Katrina, 

Rita, and Wilma in the Gulf of Mexico 

in 2005. These prior notices were 

published in the Federal Register on 

February 13, 2006 (71 FR 7666), October 

30, 2006 (71 FR 63337), and August 24, 

2007 (72 FR 48804). The reconsideration 

of the February 13, 2006, Notice is 

required at this time. HUD is 

reconsidering the October 30, 2006, and 

August 24, 2007, Notices earlier than 

required by statute because publication 

of all common waivers and alternative 

requirements in a single Notice will 

produce a more sensible administrative 

and regulatory result. 

The following waivers and alternative 

requirements for funds provided under 

either 2006 Act are in response to 

requests from all five states receiving 

CDBG disaster recovery grants under 

those Acts. In accordance with the 

states’ earlier requests for administrative 

consistency to the extent feasible (noted 

in 71 FR 63337, published October 30, 

2006), each waiver or alternative 

requirement will apply to assistance 


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Federal Register / Vol. 73, No. 154 / Friday, August 8, 2008 / Notices 46313 

provided under either Act wherever 

appropriate and possible. 

After reconsideration, the Secretary 

affirms that the following waivers and 

alternative requirements, as described 

below, are not inconsistent with the 

overall purpose of Title I of the Housing 

and Community Development Act of 

1974, as amended, or the CranstonGonzalez National Affordable Housing 

Act, as amended. 

Under the requirements of the 

Department of Housing and Urban 

Development Reform Act of 1989 (the 

HUD Reform Act), as amended 42 U.S.C. 

3535(q), regulatory waivers must be 

justified and published in the Federal 

Register. 

Further, the supplemental Acts direct 

the Secretary to publish in the Federal 

Register any waiver (or reconsideration 

thereof) of any statute or regulation that 

the Secretary administers pursuant to 

Title I of the Housing and Community 

Development Act of 1974, no later than 

5 days before the effective date of such 

waiver. 

Except as described in this and other 

notices applicable to these grants, 

statutory and regulatory provisions 

governing the CDBG program for states, 

including those at 24 CFR part 570, 

shall apply to the use of these funds. In 

accordance with the supplemental Acts, 

HUD is reconsidering every published 

waiver 2 years from its date of 

publication. 

Allocations 

The supplemental Acts provide a 

combined total of $16.7 billion for the 

CDBG program for: 

Necessary expenses related to disaster 

relief, long-term recovery, and restoration of 

infrastructure in the most impacted and 

distressed areas related to the consequences 

of Hurricanes Katrina, Rita, or Wilma in the 

Gulf of Mexico in 2005. 

The $11.5 billion allocation 

appropriated under Public Law 109–148 

is also discussed and expanded upon in 

the conference report (H.R. Rep. No. 

109–359). The conference agreement 

included $11.5 billion for necessary 

expenses related to disaster relief, longterm recovery, restoration of 

infrastructure, and mitigation in 

communities in any declared disaster 

area in Louisiana, Mississippi, Alabama, 

Florida, and Texas related to Hurricanes 

Katrina, Rita, or Wilma. The conference 

agreement emphasizes the requirement 

that the states with the most impacted 

and distressed areas in connection with 

the Gulf of Mexico hurricanes receive 

priority consideration in the allocation 

of funds by HUD. 

Public Law 109–148 further states: 

That funds provided under this heading 

shall be administered through an entity or 

entities designated by the Governor of each 

state. And that no state shall receive more 

than 54 percent of the amount provided 

under this heading. 

Public Law 109–234 also states: 

That funds provided under this heading 

shall be administered through an entity or 

entities designated by the Governor of each 

state. And that no state shall receive more 

than $4.2 billion of the amount provided 

under this heading. 

As provided for in Public Law 109–

148 and Public Law 109–234, the funds 

may not be used for activities 

reimbursable by or for which funds are 

made available by the Federal 

Emergency Management Agency 

(FEMA) or the Army Corps of Engineers. 

Further, none of the funds made 

available under Public Law 109–234 

may be used by a state or locality as a 

matching requirement, share, or 

contribution for any other federal 

program. 

Also as required by Public Law 109–

234, not less than $1.0 billion of the 

$5.2 billion appropriation (which 

computes to 19.3311 percent of any 

state’s allocation, excluding $27.0 

million in administrative set-asides) 

shall be used for repair, rehabilitation, 

and reconstruction (including 

demolition, site clearance, and 

remediation) of the affordable rental 

housing stock (including public and 

other HUD-assisted housing) in the 

impacted areas. Therefore, HUD 

requires that not less than 19.3311 

percent of each state’s grant under 

Public Law 109–234 be used for these 

activities. 

The allocations from Public Law 109–

148 are as follows: 

TABLE 1—FEBRUARY 13, 2006, DISASTER RECOVERY ALLOCATION

State Disaster 

Allocation 

amount 

($) 

Alabama ..................... Hurricane Katrina (FEMA–1605–DR) ..................................................................................................... 74,388,000 

Florida ........................ Hurricane Katrina (FEMA–1602–DR), Hurricane Wilma (FEMA–1609–DR) .......................................... 82,904,000 

Louisiana .................... Hurricane Katrina (FEMA–1603–DR), Hurricane Rita (FEMA–1607–DR) ............................................. 6,210,000,000 

Mississippi .................. Hurricane Katrina (FEMA–1604–DR) ..................................................................................................... 5,058,185,000 

Texas ......................... Hurricane Rita (FEMA–1606–DR) .......................................................................................................... 74,523,000 

The allocations from the 

supplemental appropriation, as 

provided for in Public Law 109–234, are 

as follows: 

TABLE 2—OCTOBER 30, 2006, DISASTER RECOVERY SUPPLEMENTAL ALLOCATION

State Disaster 

Allocation 

amount 

($) 

Minimum amount 

for affordable 

rental housing 

($) 

Alabama .................... Hurricane Katrina (FEMA–1605–DR) ...................................................................... 21,225,574 4,103,146 

Florida ........................ Hurricane Katrina (FEMA–1602–DR), Hurricane Wilma (FEMA–1609–DR) .......... 100,066,518 19,344,001 

Louisiana ................... Hurricane Katrina (FEMA–1603–DR), Hurricane Rita (FEMA–1607–DR) .............. 4,200,000,000 811,907,984 

Mississippi ................. Hurricane Katrina (FEMA–1604–DR) ...................................................................... 423,036,059 81,777,703 

Texas ......................... Hurricane Rita (FEMA–1606–DR) ........................................................................... 428,671,849 82,867,166 


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The amounts in Table 2 include the 

minimum amount of the allocations 

each state is required to use, pursuant 

to Public Law 109–234, for repair, 

rehabilitation, and reconstruction 

(including demolition, site clearance, 

and remediation) of the affordable rental 

housing stock (including public and 

other HUD-assisted housing) in the 

impacted areas. 

In the case of Louisiana, the 

Department reviewed data chronicling 

the massive impact of the disasters on 

affordable rental housing, including 

public housing, in the areas of the state 

most affected by the disasters. In light 

of the state’s unprecedented housing 

needs resulting from the disasters, the 

Secretary gave priority to affordable 

rental housing through an alternative 

requirement on the grant under Public 

Law 109–234. Under a prior Notice, 

HUD required that before the state of 

Louisiana expended any funds to meet 

the minimum requirement for affordable 

rental housing (see table above), the 

Governor of Louisiana had to 

demonstrate to the Secretary’s 

satisfaction that the state will provide 

funds or has identified dedicated 

resources sufficient to meet the key 

disaster recovery needs for repair, 

rehabilitation, and reconstruction of 

affordable rental housing stock, 

including public housing, in the most 

impacted areas of the state. This notice 

continues the requirement to ensure that 

any fund reprogramming continues to 

prioritize such housing. 

Pursuant to this Notice, HUD 

continues to invite each of the five 

states to submit an Action Plan for 

Disaster Recovery in accordance with 

prior Notices. 

The supplemental Acts require that 

funds be used only for disaster relief, 

long-term recovery, and restoration of 

infrastructure in the most impacted and 

distressed areas related to the 

consequences of hurricanes in the Gulf 

of Mexico in 2005. The supplemental 

Acts direct that each grantee describe in 

its Action Plan for Disaster Recovery 

how the use of the grant funds gives 

priority to infrastructure development 

and the rehabilitation and 

reconstruction of the affordable rental 

housing stock, including public and 

other HUD-assisted housing. HUD 

monitors compliance with this direction 

and may be compelled to disallow 

expenditures if it finds that uses of 

funds are not disaster-related, or that 

funds allocated duplicate other benefits. 

HUD encourages grantees to contact 

their assigned HUD offices for guidance 

in complying with these requirements 

during development of their Action 

Plans for Disaster Recovery and any 

amendments or if they have any 

questions regarding meeting these 

requirements. 

For the state of Louisiana, which 

suffered major impacts from two of the 

hurricanes, HUD estimated that more 

than 85 percent of the major and severe 

damage due to those storms was in the 

New Orleans-Metairie-Bogalusa 

Metropolitan Area (Jefferson, Orleans, 

Plaquemines, St. Bernard, St. Charles, 

St. John the Baptist, and St. Tammany 

parishes). HUD, therefore, expects the 

state to target a substantial majority of 

its disaster recovery funds under Public 

Law 109–234 toward the disaster 

recovery needs in the New OrleansMetairie-Bogalusa Metropolitan Area, 

and included an alternative requirement 

to that effect. 

Prevention of Fraud, Abuse, and 

Duplication of Benefits 

The supplemental Acts also directed the 

Secretary to: Establish procedures to prevent 

recipients from receiving any duplication of 

benefits and report quarterly to the 

Committees on Appropriations with regard to 

all steps taken to prevent fraud and abuse of 

funds made available under this heading, 

including duplication of benefits. 

To meet this directive, HUD has taken 

five courses of action. First, HUD 

established by Notice specific reporting, 

written procedures, monitoring, and 

internal audit requirements for grantees. 

Second, to the extent that its resources 

allowed, HUD instituted risk analysis 

and on-site monitoring of grantee 

management of the grants and of the 

specific uses of funds. Third, HUD has 

been extremely cautious in considering 

any waiver related to basic financial 

management requirements. The 

standard, time-tested CDBG financial 

requirements will continue to apply to 

future waiver requests. Fourth, HUD 

collaborated with the HUD Office of 

Inspector General to plan and 

implement oversight of these funds. 

Fifth, HUD followed the direction of the 

conference report for Public Law 109–

494 and applied $6 million of funds 

appropriated for the Working Capital 

Fund for ‘‘immediate enhancement of 

the capabilities of the Disaster Recovery 

Grant Reporting system by building 

additional electronic controls that are 

intended to increase accountability 

while further decreasing the risk of 

fraud, waste, or abuse.’’

Waiver Justification 

In general, waivers already granted to 

the states of Alabama, Florida, 

Louisiana, Mississippi, and Texas and 

alternative requirements already 

specified for CDBG disaster recovery 

grant funds provided under the 

supplemental Acts apply unless 

determined to be excepted or limited 

under this Notice. The notices in which 

these prior waivers and alternative 

requirements appear are shown in the 

table below. 

Notice Date Applicability 

71 FR 7666, FR–5051–N–01 ................... 02/13/2006 Common Allocation/Application for $11.5 billion. 

71 FR 34448, FR–5051–N–02 ................. 06/14/2006 State of Alabama. 

71 FR 34451, FR–5051–N–04 ................. 06/14/2006 State of Louisiana. 

71 FR 34457, FR–5051–N–03 ................. 06/14/2006 State of Mississippi. 

71 FR 43622, FR–5051–N–05 ................. 08/01/2006 State of Texas. 

71 FR 51678, FR–5051–N–06 ................. 08/30/2006 State of Florida. 

71 FR 62372, FR 5051–N–07 .................. 10/24/2006 State of Mississippi. 

71 FR 63337, FR–5089–N–01 ................. 10/30/2006 Common Allocation/Application, and Applicability of Prior Waivers for $5.2 billion. 

72 FR 10014, FR–5089–N–03 ................. 03/06/2007 State of Louisiana. 

72 FR 10020, FR–5089–N–04 ................. 03/06/2007 State of Mississippi. 

72 FR 48804, FR–5089–N–05 ................. 08/24/2007 Common waiver of Section 414 of the Stafford Act and alternative requirements. 

72 FR 48808, FR–5051–N–08 ................. 08/24/2007 State of Mississippi. 

72 FR 61788, FR–5051–N–09 ................. 10/31/2007 State of Mississippi. 

72 FR 70472, FR–5183–N–01 ................. 12/11/2007 State of Louisiana for $3 billion. 

The provisions of this Notice do not 

apply to funds provided under the 

regular CDBG program or other HUD or 

federally funded programs. The 

provisions provide additional flexibility 

in program design and implementation 


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Federal Register / Vol. 73, No. 154 / Friday, August 8, 2008 / Notices 46315 

and implement statutory requirements 

unique to these appropriations. 

Section 414 of the Stafford Act 

The states requested and were granted 

a waiver of Section 414 of the Robert T. 

Stafford Disaster Relief and Emergency 

Assistance Act, as amended, for all their 

disaster recovery programs. Section 414 

requires special measures that are 

designed to assist the efforts of the five 

states in expediting the rendering of aid 

and emergency services and in the 

reconstruction and rehabilitation of 

devastated areas, as necessary. In 

addition, the Secretary provided 

alternative requirements more 

consistent with the purpose of the 

supplemental Acts, which have assisted 

and supported disaster recovery in the 

areas most impacted by the effects of the 

three 2005 Gulf hurricanes. Hurricanes 

Katrina, Rita, and Wilma resulted in 

unprecedented destruction in the Gulf 

states, which will continue to require 

reconstruction for many years (and 

possibly decades) to come. The 

Department surveyed other federal 

agencies’ administration of Section 414 

and found varying interpretations for 

long-term, post-disaster projects 

involving the acquisition, rehabilitation, 

or demolition of disaster-damaged 

housing. The five states have also 

launched programs, such as rental 

rehabilitation, that could be affected by 

this statute if a clear direction to restore 

affordable rental housing to the 

devastated areas is not realized. 

Therefore, to avoid possible risk to the 

recovery effort by further delay in 

providing the states with a definitive 

answer, the Department issued a partial 

statutory waiver and specified 

alternative requirements. HUD is 

continuing this statutory waiver by this 

Notice because affordable housing 

programs are under way in all five of the 

states that rely on this waiver and 

alternative requirements. For programs 

or projects covered by this waiver 

(‘‘covered programs or projects’’) that 

are initiated within 3 years after the 

applicable disaster, an affected state 

must select one of the two alternative 

requirements specified in 72 FR 48804 

and restated in this Notice. 

Alternative One 

The state may provide relocation 

assistance to a former residential 

occupant whose former dwelling is 

acquired, rehabilitated, or demolished 

for a covered program or project 

initiated within 3 years after the 

disaster, even though the actual 

displacements were caused by the 

effects of the disaster. To the extent 

practicable, such relocation assistance 

must be offered in a manner consistent 

with the Uniform Relocation Assistance 

and Real Property Acquisition Policies 

Act of 1970, as amended, (URA) and its 

implementing regulations, except as 

modified by applicable waivers and 

alternative requirements. 

Alternative Two 

If the state determines that the first 

alternative would substantially conflict 

with meeting the disaster recovery 

purposes of the supplemental Acts, the 

state may establish a re-housing plan for 

a covered program or project initiated 

within 3 years after the disaster. Such 

determinations must be made on a 

program or project basis (not person or 

household). The re-housing plan must 

include, at minimum, the following: 

1. A description of the class(es) of 

persons eligible for assistance, including 

all persons displaced from their 

residences by particular enumerated, or 

all, effects of the disaster, and including 

all persons still receiving temporary 

housing assistance from FEMA for the 

covered disaster(s); 

2. A description of the types and 

amount of financial assistance to be 

offered, if any; 

3. A description of other services to be 

made available, including, at minimum, 

outreach efforts to eligible persons and 

housing counseling providing 

information about available housing 

resources. Outreach efforts and housing 

counseling information should be 

provided in languages other than 

English to persons with limited English 

proficiency; and 

4. Contact information and a 

description of any applicable 

application process, including any 

deadlines. 

5. If the program or project involves 

rental housing, the re-housing plan must 

also include the following: 

(i) Placement services for former and 

prospective tenants; 

(ii) A public registry of available 

rental units assisted with CDBG disaster 

recovery and/or other funds; and 

(iii) A description of application 

materials, award letters, and operating 

procedures requiring property owners to 

make reasonable attempts to contact 

their former residential tenants and offer 

them a unit upon completion if they 

meet the program’s eligibility 

requirements. 

Justification for Waiver 

This section of the Notice describes 

the basis for granting the section 414 

waivers represented by the states in 

their requests. The principal reasons are 

highlighted here: 

• Hurricanes Katrina, Rita, and 

Wilma caused unprecedented 

destruction in the Gulf Coast region. 

The magnitude of destruction resulted 

in massive displacements and 

decimated the region’s affordable 

housing stock. Continued ambiguity on 

Section 414’s applicability may cause 

substantial delays in long-term recovery 

along the Gulf Coast, particularly in 

Louisiana, Mississippi, and Texas; 

• URA assistance may duplicate 

insurance proceeds and federal, state, or 

local housing assistance that has already 

been disbursed; and 

• The opportunity to simplify the 

administration of disaster recovery 

projects or programs initiated years 

following the disaster. 

Persons in physical occupancy who 

are displaced by a HUD-assisted disaster 

recovery project will continue to be 

eligible for URA assistance. Persons 

displaced by the effects of the disaster 

may continue to apply for assistance 

under the states’ approved disaster 

recovery programs, which are designed 

to bring affordable housing to the 

affected areas. This waiver does not 

address programs or projects receiving 

other HUD funding, or funding from 

other federal sources. 

A state may already be performing 

some elements of a re-housing plan, 

such as providing a public rental 

registry or undertaking outreach and 

placement services to those former 

residents still receiving FEMA housing 

assistance. Description in the re-housing 

plan of how those existing efforts will 

be available for covered programs or 

projects may be used in satisfying the 

requirements of this Notice. These 

waivers and alternative requirements 

streamline the pre-grant process and set 

the guidelines for a state’s application 

for allocations. 

Application for Allocations Under 

Public Laws 109–148 and 109–234 

Overall benefit to low- and moderateincome persons. Pursuant to explicit 

authority in the supplemental Acts, 

HUD granted an overall benefit waiver 

that allows for up to 50 percent of the 

grants to assist activities under the 

urgent need or under the prevention or 

elimination of slums and blight national 

objectives, rather than the 30 percent 

allowed in the annual state CDBG 

program. The primary objective of Title 

I of the Housing and Community 

Development Act of 1974 and of the 

funding program of each grantee is 

‘‘development of viable urban 

communities, by providing decent 

housing and a suitable living 

environment and expanding economic 

opportunities, principally for persons of 


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low and moderate income.’’ The statute 

goes on to set the standard of 

performance for this primary objective 

for the annual CDBG program at 70 

percent of the aggregate of the funds 

used for support of activities producing 

benefit to low- and moderate-income 

persons. Because extensive damage to 

community development and housing 

affected those with varying incomes, 

and the hardest-hit grantees have 

designed their programs to take 

advantage of this waiver, HUD is 

retaining the waiver of the 70 percent 

overall benefit requirement and leaving 

the 50 percent requirement, in order to 

give grantees continued flexibility to 

carry out recovery activities within the 

confines of the CDBG program national 

objectives. HUD may provide additional 

waivers of this requirement only if it 

makes a finding of compelling need. 

The requirement that each activity meet 

one of the three national objectives is 

not waived. HUD did reconsider, but is 

not altering this waiver. The states have 

already budgeted the vast majority of 

the funds under the terms of the initial 

waiver. Changing the waiver and 

alternative requirement now might be 

counter-productive to the recovery 

efforts across the Gulf Coast and, most 

particularly, in Louisiana. The state of 

Mississippi has been granted additional 

overall benefit waivers and alternative 

requirements as published in Notices 

other than the three under 

reconsideration in the current Notice. 

The first of Mississippi’s other Notices 

is scheduled for reconsideration in June 

2008. 

Expanded distribution and direct 

action. The waivers and alternative 

requirements allowing distribution of 

funds by a state to entitlement 

communities and Indian tribes, and to 

allow a state to carry out activities 

directly rather than distribute all funds 

to units of local government, are 

consistent with waivers granted for 

previous similar disaster recovery cases. 

HUD believes that, in recommending 

the Lower Manhattan Development 

Corporation (LMDC) as a model and in 

increasing the administrative cap, 

Congress is signaling its intent that the 

states under this appropriation also be 

able to carry out activities directly. 

Therefore, HUD waived and continues 

its waiver of certain program 

requirements to support direct 

implementation of activities by the 

states. HUD stated in prior Notices and 

restates in this Notice the necessary 

complementary waivers and alternative 

requirements related to subrecipients to 

ensure proper management and 

disposition of funds during the grant 

execution and at closeout. 

Consistency with the consolidated 

plan. HUD waived the requirement for 

consistency with the consolidated plan 

priorities because the effects of a major 

disaster usually alter a grantee’s 

priorities for meeting housing, 

employment, and infrastructure needs. 

To emphasize that uses of grant funds 

must be consistent with the overall 

purposes of the Housing and 

Community Development Act of 1974, 

HUD requires the scope of the waiver to 

be consistent with the consolidated 

plan; the waiver applies only until the 

grantee first updates its consolidated 

plan priorities following the disaster. 

Because of limited data availability or 

staff resources, not all grantees have 

completely updated their consolidated 

plans. Therefore, HUD is continuing this 

waiver. 

Action Plan for Disaster Recovery. 

HUD waived the CDBG action plan 

requirements and substituted an Action 

Plan for Disaster Recovery. HUD is 

continuing this waiver and restates the 

Action Plan for Disaster Recovery 

requirements under this Notice. This 

waiver allowed for rapid 

implementation of disaster recovery 

grant programs and ensured 

conformance with provisions of the 

supplemental Acts. Where possible, the 

Action Plan for Disaster Recovery, 

including certifications, does not repeat 

common action plan elements that the 

grantee already committed to carry out 

as part of its annual CDBG submission. 

Although a state as the grantee may 

designate an entity or entities to 

administer the funds, the state is 

responsible for compliance with federal 

requirements. During the course of these 

grants, HUD is monitoring the states’

uses of funds and their actions for 

consistency with the Action Plan. A 

state may submit an initial, partial 

Action Plan and amend it one or more 

times subsequently until the Action 

Plan describes uses for the combined 

total grant amount. A state may also 

amend activities in its Action Plan. 

The following new elements to a 

state’s Action Plan for Disaster Recovery 

apply only to the supplemental funds 

allocated under Public Law 109–234: 

These elements include a description 

of how the state gives priority to 

infrastructure development and 

rehabilitation and how the state gives 

priority to the rehabilitation and 

reconstruction of the affordable rental 

housing stock, including public and 

other HUD-assisted housing. The state 

must explain how its choices for the use 

of funds will result in the state meeting 

the requirement to use not less than 

19.3311 percent of its allocation under 

Public Law 109–234 for repair, 

rehabilitation, and reconstruction 

(including demolition, site clearance, 

and remediation) of the affordable rental 

housing stock (including public and 

other HUD-assisted housing) in the 

impacted areas. The explanation should 

include how the state has considered 

the unique challenges that individuals 

with disabilities face in finding 

accessible and affordable housing. 

Citizen participation. The citizen 

participation waiver and alternative 

requirements permit a more streamlined 

public process, but one that still 

provides for reasonable public notice, 

appraisal, examination, and comment 

on the CDBG disaster recovery grant 

fund activities. The waiver removes the 

requirement at both the grantee and 

state grant recipient levels for public 

hearings or meetings as the method for 

disseminating information or collecting 

citizen comments. Instead, grantees are 

encouraged to employ innovative 

methods to communicate with citizens 

and solicit their views on proposed uses 

of disaster recovery funds, and to 

indicate in the Action Plan how the 

grantee has addressed these views. After 

reconsidering this waiver, HUD decided 

to leave it in place because the need for 

speedy decision-making is still 

necessary in some of the states. 

However, HUD is providing guidance 

that, as time since the hurricanes 

elapses, HUD expects grantees to 

provide for increased time for public 

comments and for provision of public 

hearings related to amendments to the 

Action Plan whenever hearings are 

administratively feasible. HUD notes 

that most grantees are making good use 

of the Internet to provide disaster 

recovery information on plan 

amendments and resources for their 

citizens, and HUD expects this practice 

will continue. 

Administration limitation. State 

program administration requirements 

must be modified to be consistent with 

the Appropriations Act, which allows 

up to 5 percent of the grant to be used 

for the state’s administrative costs. The 

provisions at 42 U.S.C. 5306(d) and 24 

CFR 570.489(a)(1)(i) and (iii) will not 

apply to the extent that they cap state 

administration expenditures and require 

a dollar-for-dollar match of state funds 

for administrative costs exceeding 

$100,000. HUD does not waive 24 CFR 

570.489(a)(3) to allow the state to 

exceed the overall planning, 

management, and administrative cap of 

20 percent. 


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Use of Subrecipients 

The state CDBG program rule does not 

make specific provision for the 

treatment of the entities called 

‘‘subrecipients’’ in the CDBG 

entitlement program. The waiver 

allowing a state to carry out activities 

directly creates a situation in which the 

state may use subrecipients to carry out 

activities in a manner similar to 

entitlement communities. HUD and its 

Office of Inspector General have long 

identified the use of subrecipients as a 

practice that increases the risk of abuse 

of funds. HUD’s experience is that this 

risk can be successfully managed by 

adhering to the CDBG entitlement 

requirements and related guidance. 

Therefore, HUD requires that a state 

taking advantage of the waiver allowing 

it to carry out activities directly must 

follow the alternative requirements that 

are drawn from the CDBG entitlement 

rule and specified in this Notice, when 

using subrecipients. 

Reporting 

HUD waives the annual reporting 

requirement because Congress requires 

quarterly reports from the grantees and 

from HUD on various aspects of the uses 

of funds and of the activities funded 

with these grants. Many of the data 

elements the grantees will report to 

Congress quarterly are the same as those 

that HUD uses to exercise oversight for 

compliance with the requirements of 

this Notice and for prevention of fraud, 

abuse of funds, and duplication of 

benefits. To collect these data elements 

and to meet its reporting requirements, 

HUD requires each grantee to report to 

HUD quarterly using the online Disaster 

Recovery Grant Reporting system. HUD 

uses grantee reports to monitor for 

anomalies or performance problems that 

suggest fraud, abuse of funds, and 

duplication of benefits; to reconcile 

budgets, obligations, fund draws, and 

expenditures; to calculate applicable 

administrative and public service 

limitations and the overall percent of 

benefit to low- and moderate-income 

persons; and to establish a basis for risk 

analysis in determining a monitoring 

plan. 

Originally, HUD’s guidance was that 

after HUD reviews each report and 

accepts a report, the grantee must post 

the report on an Internet site with 

public access for its citizens. On 

reconsideration, HUD is requiring 

grantees to post each report as it is 

submitted. After HUD reviews the 

report, the grantee may also post the 

reviewed version, if HUD makes any 

changes. If a grantee chooses, it may use 

its report, together with a statement 

regarding any sole source procurements, 

as its required quarterly submission to 

the Committees on Appropriations. 

Each quarter, HUD will submit to the 

Committees a summary description of 

its report reviews, of other HUD 

monitoring and technical assistance 

activities undertaken during the quarter, 

and of any significant conclusions 

related to fraud, abuse of funds, or 

duplication of benefits. 

Certifications 

HUD waived the standard 

certifications and substituted alternative 

certifications. The alternative 

certifications are tailored to CDBG 

disaster recovery grants and remove 

certifications and references that are 

redundant or appropriate to the annual 

CDBG formula program. 

Applicable Rules, Statutes, Waivers, 

and Alternative Requirements 

The following discussion is 

comprised of two parts: a common 

section that applies to Federal Register 

notices 71 FR 7666, 71 FR 63337, and 

72 FR 48804, and a unique section that 

highlights components of these three 

notices that are different. 

Common Section 

1. General note. Prerequisites to a 

grantee’s receipt of CDBG disaster 

recovery assistance include adoption of 

a citizen participation plan; publication 

of its proposed Action Plan for Disaster 

Recovery; public notice and comment; 

and submission to HUD of an Action 

Plan for Disaster Recovery, including 

certifications. Except as described in 

this Notice, the statutory, regulatory, 

and notice provisions that shall apply to 

the use of these funds are: 

a. The state-specific Notices governing 

the funds appropriated under Public 

Law 109–148 and Public Law 109–234 

(the supplemental Acts) and already 

published in the Federal Register; 

b. Those governing the CDBG program 

for states, including those at 42 U.S.C. 

5301 et seq. and 24 CFR part 570. 

2. Overall benefit waiver and 

alternative requirement. The 

requirements at 42 U.S.C. 5301(c), 42 

U.S.C. 5304(b)(3)(A), and 24 CFR 

570.484 that at least 70 percent of funds 

are for activities that benefit low- and 

moderate-income persons are waived to 

stipulate that at least 50 percent of 

disaster recovery grant funds from each 

grant must assist activities that 

principally benefit low- and moderateincome persons. 

3. Section 414 of the Stafford Act 

waiver and alternative requirements. 

a. Section 414 of the Stafford Act, 42 

U.S.C. 5181 (including its implementing 

regulation at 49 CFR 24.403(d)), is 

waived to the extent that it would apply 

to CDBG disaster recovery-funded 

programs or projects initiated at least 

one year after the incident-date of 

Hurricane Katrina, Rita, or Wilma (as 

applicable) by the states of Alabama, 

Florida, Louisiana, Mississippi, and 

Texas under an approved Action Plan 

for Disaster Recovery for its grants 

under Public Law 109–148 or Public 

Law 109–234; provided that such 

program or project was not planned, 

approved, or otherwise under way prior 

to the disaster. 

b. For all programs or projects covered 

by this waiver (‘‘covered programs or 

projects’’) that are initiated at least one 

year after but within no more than 3 

years after the applicable disaster, the 

states of Alabama, Florida, Louisiana, 

Mississippi, and Texas must comply 

with one of the following two 

alternative requirements (for programs 

or projects initiated after the 3-year 

period, the alternative requirements 

would not apply; only the waiver would 

be applicable): 

1. Relocation Assistance. The state 

may provide relocation assistance to a 

former residential occupant whose 

former dwelling is acquired, 

rehabilitated, or demolished for a 

covered program or project initiated 

within 3 years after the disaster, even 

though the actual displacements were 

caused by the effects of the disaster. To 

the extent practicable, such relocation 

assistance must be offered in a manner 

consistent with the Uniform Relocation 

Assistance and Real Property 

Acquisition Policies Act of 1970, as 

amended, and its implementing 

regulations, except as modified by prior 

waivers and alternative requirements 

granted to the states. 

2. Re-housing Plan. If the state 

determines that the first alternative 

would substantially conflict with 

meeting the disaster recovery purposes 

of the supplemental Acts, the grantee 

may establish a re-housing plan for a 

covered program or project initiated at 

least one year after, but within no more 

than 3 years after, the disaster. Such a 

determination must be made on a 

program or project basis (not person or 

household). The re-housing plan must 

include, at minimum, the following: 

i. A description of the class(es) of 

persons eligible for assistance, including 

all residents displaced from their 

residences by either certain enumerated 

or all effects of the covered disaster, and 

including all disaster-displaced 

residents still receiving temporary 

housing assistance from FEMA for the 

covered disasters; 


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ii. A description of the types and 

amount of financial assistance to be 

provided, if any; 

iii. A description of other services to 

be made available, including, at a 

minimum, outreach efforts to eligible 

persons and housing counseling that 

provide information about available 

housing resources; 

iv. Contact information for additional 

program information; 

v. A description of any applicable 

application process, including any 

deadlines; and 

vi. If the program or project covered 

by this waiver involves rental housing, 

the grantee shall establish procedures 

for the following: 

A. Application materials, award 

letters, and operating procedures that 

require property owners to make 

reasonable attempts to contact their 

former tenants and to offer a unit, upon 

completion, to those tenants meeting the 

program’s eligibility requirements; 

B. Placement services for former and 

prospective tenants; and 

C. A public registry of available rental 

units assisted with CDBG disaster 

recovery and/or other funds. 

c. Eligible Project Costs. The cost of 

relocation assistance and the 

reoccupancy plan are eligible project 

costs in the same manner and to the 

same extent as other project costs 

authorized under the supplemental 

Acts. For covered programs or projects 

involving affordable rental housing, the 

relocation and planning costs required 

by this Notice may be paid from funds 

reserved for the affordable rental 

housing stock in the impacted areas 

under Public Law 109–234. 

4. Direct grant administration by 

states and means of carrying out eligible 

activities. Requirements at 42 U.S.C. 

5306 are waived to the extent necessary 

to allow the state to use its disaster 

recovery grant allocation directly to 

carry out state-administered activities 

eligible under this Notice. Activities 

eligible under this Notice may be 

undertaken, subject to state law, by the 

recipient through its employees or 

through procurement contracts, through 

loans or grants under agreements with 

subrecipients, or by one or more entities 

that are designated by the chief 

executive officer of the state. Activities 

made eligible under section 105(a)(15) 

of the Housing and Community 

Development Act of 1974, as amended, 

may be undertaken only by entities 

specified in that section, regardless of 

whether the assistance is provided to 

such an entity from the state or from a 

unit of general local government. 

5. Consolidated Plan waiver. 

Requirements at 42 U.S.C. 12706 and 24 

CFR 91.325(a)(6), that housing activities 

undertaken with CDBG funds be 

consistent with the strategic plan, are 

waived. Further, the requirement at 42 

U.S.C. 5304(e), to the extent that it 

would require HUD to annually review 

grantee performance under the 

consistency criteria, is also waived. 

These waivers apply only until the time 

that the grantee first updates its 

consolidated plan priorities following 

the hurricane. 

6. Citizen participation waiver and 

alternative requirement. Provisions of 

42 U.S.C. 5304(a)(2) and (3), 42 U.S.C. 

12707, 24 CFR 570.486, and 24 CFR 

91.115(b), with respect to citizen 

participation requirements, are waived 

and replaced by the requirements 

below. The streamlined requirements do 

not mandate public hearings at either 

the state or local government level, but 

do require providing a reasonable 

opportunity for citizen comment and 

ongoing citizen access to information 

about the use of grant funds. The 

streamlined citizen participation 

requirements for this grant are: 

a. Before the grantee adopts the action 

plan for this grant or any substantial 

amendment to this grant, the grantee 

will publish the proposed plan or 

amendment (including the information 

required in this Notice for an Action 

Plan for Disaster Recovery). The manner 

of publication (including prominent 

posting on the state, local, or other 

relevant Web site) must afford citizens, 

affected local governments, and other 

interested parties a reasonable 

opportunity to examine the plan or 

amendment’s contents. Subsequent to 

publication, the grantee must provide a 

reasonable time period and method(s) 

(including electronic submission) for 

receiving comments on the plan or on 

any substantial amendment to it. The 

grantee’s plans to minimize 

displacement of persons or entities and 

to assist any persons or entities 

displaced must be published with the 

action plan. HUD expects the grantee to 

hold a public hearing on a proposed 

plan amendment unless doing so would 

hinder the provision of expedient 

disaster recovery. 

b. In the action plan, each grantee will 

specify its criteria for determining what 

changes in the grantee’s activities 

constitute a substantial amendment to 

the plan. At a minimum, adding or 

deleting an activity or changing the 

planned beneficiaries of an activity will 

constitute a substantial change. The 

grantee may modify or substantially 

amend the action plan if it follows the 

same procedures required in this Notice 

for the preparation and submission of an 

Action Plan for Disaster Recovery. The 

grantee must notify HUD, but is not 

required to notify the public, when it 

makes any plan amendment that is not 

substantial. 

c. The grantee must consider all 

comments received on the action plan 

or any substantial amendment and 

submit to HUD a summary of those 

comments and the grantee’s response 

with the action plan or substantial 

amendment. 

d. The grantee must make the action 

plan, any substantial amendments, and 

all performance reports available to the 

public. HUD recommends posting them 

on the Internet. In addition, the grantee 

must make these documents available in 

a form accessible to persons with 

disabilities and non-English-speaking 

persons. During the term of this grant, 

the grantee will provide citizens, 

affected local governments, and other 

interested parties with reasonable and 

timely access to information and records 

relating to the action plan and to the 

grantee’s use of this grant. 

e. The grantee will provide a timely 

written response to every citizen 

complaint. Such response will be 

provided within 15 working days of the 

receipt of the complaint, if practicable. 

7. Modify requirement for 

consultation with local governments. 

Currently, the statute and regulations 

require consultation with affected units 

of local government in the nonentitlement area of the state regarding 

the state’s proposed method of 

distribution. HUD is waiving 42 U.S.C. 

5306(d)(2)(C)(iv), 24 CFR 91.325(b), and 

24 CFR 91.110, with the alternative 

requirement that the state consult with 

all disaster-affected units of general 

local government, including any CDBG 

entitlement communities, in 

determining the use of funds. 

8. Action Plan waiver and alternative 

requirement. The requirements at 42 

U.S.C. 12705(a)(2), 42 U.S.C. 5304(a)(1), 

42 U.S.C. 5304(m), 42 U.S.C. 

5306(d)(2)(C)(iii), 24 CFR 1003.604, and 

24 CFR 91.320 are waived for these 

disaster recovery grants. Each state must 

submit to HUD an Action Plan for 

Disaster Recovery that describes: 

a. The effects of the covered disaster, 

especially in the most impacted areas 

and populations, and the greatest 

recovery needs resulting from the 

covered disaster that have not been 

addressed by insurance proceeds, other 

federal assistance, or any other funding 

source; 

b. The grantee’s overall plan for 

disaster recovery, including: 

1. How the state will promote sound 

short- and long-term recovery planning 

at the state and local levels, especially 

land use decisions that reflect 


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responsible flood plain management, 

removal of regulatory barriers to 

reconstruction, and prior coordination 

with planning requirements of other 

state and federal programs and entities; 

2. How the state will encourage 

construction methods that emphasize 

high quality, durability, energy 

efficiency, and mold resistance, 

including how the state will promote 

enactment and enforcement of modern 

building codes and mitigation of flood 

risk, where appropriate; 

3. How the state will provide or 

encourage provision of adequate, floodresistant housing for all income groups 

that lived in the disaster-impacted areas 

prior to the incident date(s) of the 

applicable disaster(s), including a 

description of the activities it plans to 

undertake to address emergency shelter 

and transitional housing needs of 

homeless individuals and families 

(including subpopulations), to prevent 

low-income individuals and families 

with children (especially those with 

incomes below 30 percent of median) 

from becoming homeless, to help 

homeless persons make the transition to 

permanent housing and independent 

living, and to address the special needs 

of persons who are not homelessidentified, in accordance with 24 CFR 

91.315(d); 

c. Monitoring standards and 

procedures that are sufficient to ensure 

that program requirements, including 

non-duplication of benefits, are met and 

that provide for continual quality 

assurance, investigation, and internal 

audit functions, with responsible staff 

reporting independently to the Governor 

of the state or, at a minimum, to the 

chief officer of the governing body of 

any designated administering entity; 

d. A description of the steps the state 

will take to avoid or mitigate 

occurrences of fraud, abuse, and 

mismanagement, especially with respect 

to accounting, procurement, and 

accountability, with a description of 

how the state will provide for increasing 

the capacity for implementation and 

compliance of local governments, 

subrecipients, subgrantees, contractors, 

and any other entity responsible for 

administering activities under this 

grant; and 

e. The state’s method of distribution. 

The method of distribution shall 

include descriptions of the method of 

allocating funds to units of local 

government and of specific projects the 

state will carry out directly, as 

applicable. The descriptions will 

include: 

1. When funds are to be allocated to 

units of local government; and all 

criteria used to select applications from 

local governments for funding, 

including the relative importance of 

each criterion, and including a 

description of how the disaster recovery 

grant resources will be allocated among 

all funding categories, plus the 

threshold factors and grant size limits 

that are to be applied; and 

2. In cases where the state will carry 

out activities directly, the projected uses 

for the CDBG disaster recovery funds 

broken down by responsible entity, 

activity, and geographic area; 

3. How the method of distribution or 

use of funds described in accordance 

with the above subparagraphs will 

result in eligible uses of grant funds 

related to long-term recovery from 

specific effects of the disaster(s) or 

restoration of infrastructure; and 

4. Sufficient information so that 

citizens, units of general local 

government, and other eligible 

subgrantees or subrecipients will be able 

to understand and comment on the 

action plan and, if applicable, be able to 

prepare responsive applications to the 

state. 

f. Required certifications (see the 

applicable Certifications section of this 

Notice); and 

g. A completed and executed federal 

form SF–424. 

9. Allow reimbursement for preagreement costs. The provisions of 24 

CFR 570.489(b) are applied to permit a 

grantee to reimburse itself for otherwise 

allowable costs incurred on or after the 

incident date of the covered disaster. 

10. Clarifying note on the process for 

environmental release of funds when a 

state carries out activities directly. 

Usually, a state distributes CDBG funds 

to units of local government and takes 

on HUD’s role in receiving 

environmental certifications from the 

grant recipients and approving releases 

of funds. For this grant, HUD will allow 

a state grantee to also carry out activities 

directly instead of distributing all funds 

to other governments. According to the 

environmental regulations at 24 CFR 

58.4, when a state carries out activities 

directly, the state must submit the 

certification and request for release of 

funds to HUD for approval. 

11. Duplication of benefits. In general, 

42 U.S.C. 5155 (section 312 of the 

Robert T. Stafford Disaster Assistance 

and Emergency Relief Act, as amended) 

prohibits any person, business concern, 

or other entity from receiving financial 

assistance with respect to any part of a 

loss resulting from a major disaster as to 

which such person/business/entity has 

received financial assistance under any 

other program or from insurance or any 

other source. The appropriations acts 

stipulate that funds may not be used for 

activities reimbursable by, or for which 

funds have been made available by, the 

Federal Emergency Management Agency 

or by the Army Corps of Engineers. 

12. Waiver and alternative 

requirement for distribution to CDBG 

metropolitan cities and urban counties. 

a. Section 5302(a)(7) of title 42, U.S.C. 

(definition of ‘‘non-entitlement area’’), 

and provisions of 24 CFR part 570 that 

would prohibit a state from distributing 

CDBG funds to units of general local 

government in entitlement communities 

and to Indian tribes, are waived, 

including 24 CFR 570.480(a), to the 

extent that such provisions limit the 

distribution of funds to units of general 

local government located in entitlement 

areas and to state or federally 

recognized Indian tribes. The state is 

required instead to distribute funds to 

the most adversely affected and 

impacted areas related to the 

consequences of the covered disaster(s) 

without regard to a local government or 

Indian tribe status under any other 

CDBG program. 

b. Additionally, because a state 

grantee under this appropriation may 

carry out activities directly, HUD is 

applying the regulations at 24 CFR 

570.480(c) with respect to the basis 

under which HUD determines whether 

the state has failed to carry out its 

certifications; the basis shall be that the 

state has failed to carry out its 

certifications in compliance with 

applicable program requirements. Also, 

HUD is waiving 24 CFR 570.494, 

regarding timely distribution of funds. 

However, HUD expects each state 

grantee to expeditiously obligate and 

expend all funds, including any 

recaptured funds or program income, 

and to carry out activities in a timely 

manner. 

13. Note that use of grant funds must 

relate to the covered disaster(s). The 

supplemental Acts impose fundability 

criteria in addition to the annual CDBG 

requirement that each activity must be 

eligible under 42 U.S.C. 5305(a) or this 

Notice and meet a CDBG national 

objective under the penultimate 

paragraph of 42 U.S.C. 5304(b)(3). 

Public Laws 109–148 and 109–234 

require that each activity assisted must 

be related to disaster relief, long-term 

recovery, and restoration of 

infrastructure in the most impacted and 

distressed areas related to the 

consequences of Hurricanes Katrina, 

Rita, and Wilma in communities 

included in Presidential disaster 

declarations. 

14. Note on the change to the 

administration limitation. Up to 5 

percent of the grant amount may be 

used for the state’s administrative costs. 


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The provisions of 42 U.S.C. 5306(d) and 

24 CFR 570.489(a)(1)(i) and (iii) will not 

apply to the extent that they cap state 

administration expenditures and require 

a dollar-for-dollar match of state funds 

for administrative costs exceeding 

$100,000. HUD does not waive 24 CFR 

570.489(a)(3) to allow a state to exceed 

the overall planning, management, and 

administrative cap of 20 percent. 

Reporting 

15. Waiver of performance report and 

alternative requirement. The 

requirements for submission of a 

Performance Evaluation Report (PER) 

pursuant to 42 U.S.C. 12708 and 24 CFR 

91.520 are waived. The alternative 

requirement is that: 

a. Each grantee must submit its Action 

Plan for Disaster Recovery, including 

performance measures, into HUD’s Webbased Disaster Recovery Grant Reporting 

(DRGR) system. (The signed 

certifications and the form SF–424 must 

be submitted in hard copy.) As 

additional detail about uses of funds 

becomes available to the grantee, the 

grantee must enter this detail into 

DRGR, in sufficient detail to serve as the 

basis for acceptable performance 

reports. 

b. Each grantee must submit a 

quarterly performance report, as HUD 

prescribes, no later than 30 days 

following each calendar quarter, 

beginning after the first full calendar 

quarter, after grant award and 

continuing until all funds have been 

expended and all expenditures reported. 

Each quarterly report will include 

information about the uses of funds 

during the applicable quarter, including 

(but not limited to) the project name, 

activity, location, and national 

objective, funds budgeted, obligated, 

drawn down, and expended; the 

funding source and total amount of any 

non-CDBG disaster funds; beginning 

and ending dates of activities; and 

performance measures such as numbers 

of low- and moderate-income persons or 

households benefiting. Quarterly reports 

to HUD must be submitted using HUD’s 

Web-based DRGR system. 

16. Use of subrecipients. The 

following alternative requirement 

applies for any activity that a state 

carries out directly by funding a 

subrecipient: 

a. 24 CFR 570.503, except that 

specific references to 24 CFR parts 84 

and 85 need not be included in 

subrecipient agreements. 

b. 570.502(b), except to the extent that 

it mandates compliance with Office of 

Management and Budget (OMB) 

Circular A–110 (implemented at 24 CFR 

part 84, ‘‘Uniform Administrative 

Requirements for Grants and 

Agreements with Institutions of Higher 

Education, Hospitals and Other NonProfit Organizations’’). HUD 

recommends application of 24 CFR part 

84, but does not require it. 

17. Recordkeeping. Recognizing that 

the state may carry out activities 

directly, 24 CFR 570.490(b) is waived in 

such a case and the following 

alternative provision shall then apply: 

state records. The state shall establish 

and maintain such records as may be 

necessary to facilitate review and audit 

by HUD of the state’s administration of 

CDBG disaster recovery funds under 24 

CFR 570.493. Consistent with applicable 

statutes, regulations, waivers and 

alternative requirements, and other 

federal requirements, the content of 

records maintained by the state shall be 

sufficient to: enable HUD to make the 

applicable determinations described at 

24 CFR 570.493; make compliance 

determinations for activities carried out 

directly by the state; and show how 

activities funded are consistent with the 

descriptions of activities proposed for 

funding in the action plan. For fair 

housing and equal opportunity purposes 

and, as applicable, such records shall 

include data on the racial, ethnic, and 

gender characteristics of persons who 

are applicants for, participants in, or 

beneficiaries of the program. 

18. Change of use of real property. 

This waiver conforms the change of use 

of real property rule to the waiver 

allowing a state to carry out activities 

directly. For purposes of this program, 

in 24 CFR 570.489(j), (j)(1), and the last 

sentence of (j)(2), ‘‘unit of general local 

government’’ shall be read as ‘‘unit of 

general local government or state.’’

19. Responsibility for state review and 

handling of noncompliance. This 

change conforms the rule with the 

waiver allowing the state to carry out 

activities directly. 24 CFR 570.492 is 

waived and the following alternative 

requirement applies: The state shall 

make reviews and audits, including onsite reviews of any subrecipients, 

designated public agencies, and units of 

general local government as may be 

necessary or appropriate to meet the 

requirements of section 104(e)(2) of the 

Housing and Community Development 

Act of 1974, as amended, and modified 

by this Notice. In the case of 

noncompliance with these 

requirements, the state shall take such 

actions as may be appropriate to prevent 

a continuance of the deficiency, to 

mitigate any adverse effects or 

consequences, and to prevent a 

recurrence. The state shall establish 

remedies for noncompliance by any 

designated public agencies or units of 

general local governments and for its 

subrecipients. 

20. Information collection approval 

note. HUD has approval for information 

collection requirements in accordance 

with the Paperwork Reduction Act of 

1995 (44 U.S.C. 3501–3520) under OMB 

control number 2506–0165. In 

accordance with the Paperwork 

Reduction Act, HUD may not conduct or 

sponsor, nor is a person required to 

respond to, a collection of information, 

unless the collection displays a valid 

control number. 

Certifications 

21. Certifications for state 

governments, waiver, and alternative 

requirement. Section 91.325 of title 24 

of the Code of Federal Regulations is 

waived. Each state must make the 

following certifications prior to 

receiving a CDBG disaster recovery 

grant: 

a. The state certifies that it will 

affirmatively further fair housing, which 

means that it will conduct an analysis 

to identify impediments to fair housing 

choice within the state, take appropriate 

actions to overcome the effects of any 

impediments identified through that 

analysis, and maintain records reflecting 

the analysis and actions in this regard. 

(See 24 CFR 570.487(b)(2).) 

b. The state certifies that it has in 

effect and is following a residential antidisplacement and relocation assistance 

plan in connection with any activity 

assisted with funding under the CDBG 

program. 

c. The state certifies its compliance 

with restrictions on lobbying required 

by 24 CFR part 87, together with 

disclosure forms, if required by that 

part. 

d. The state certifies that the Action 

Plan for Disaster Recovery is authorized 

under state law and that the state, and 

any entity or entities designated by the 

state, possesses the legal authority to 

carry out the program for which it is 

seeking funding, in accordance with 

applicable HUD regulations and this 

Notice. 

e. The state certifies that it will 

comply with the acquisition and 

relocation requirements of the URA, as 

amended, and implementing regulations 

at 49 CFR part 24, except where waivers 

or alternative requirements are provided 

for this grant. 

f. The state certifies that it will 

comply with section 3 of the Housing 

and Urban Development Act of 1968 (12 

U.S.C. 1701u), and implementing 

regulations at 24 CFR part 135. 

g. The state certifies that it is 

following a detailed citizen 

participation plan that satisfies the 


pwalker on PROD1PC71 with NOTICES
Federal Register / Vol. 73, No. 154 / Friday, August 8, 2008 / Notices 46321 

requirements of 24 CFR 91.115 (except 

as provided for in notices providing 

waivers and alternative requirements for 

this grant), and that each unit of general 

local government that is receiving 

assistance from the state is following a 

detailed citizen participation plan that 

satisfies the requirements of 24 CFR 

570.486 (except as provided for in 

notices providing waivers and 

alternative requirements for this grant). 

h. The state certifies that it has 

consulted with affected units of local 

government in counties designated in 

covered major disaster declarations in 

the non-entitlement, entitlement, and 

tribal areas of the state in determining 

the method of distribution of funding; 

i. The state certifies that it is 

complying with each of the following 

criteria: 

1. Funds will be used solely for 

necessary expenses related to disaster 

relief, long-term recovery, and 

restoration of infrastructure in the most 

impacted and distressed areas related to 

the consequences of the Gulf Coast 

hurricanes of 2005 in communities 

included in Presidential disaster 

declarations. 

2. With respect to activities expected 

to be assisted with CDBG disaster 

recovery funds, the action plan has been 

developed so as to give the maximum 

feasible priority to activities that will 

benefit low- and moderate-income 

families. 

3. The aggregate use of CDBG disaster 

recovery funds shall principally benefit 

low- and moderate-income families in a 

manner that ensures that at least 50 

percent of the amount is expended for 

activities that benefit such persons 

during the designated period. 

4. The state will not attempt to 

recover any capital costs of public 

improvements assisted with CDBG 

disaster recovery grant funds, by 

assessing any amount against properties 

owned and occupied by persons of lowand moderate-income, including any fee 

charged or assessment made as a 

condition of obtaining access to such 

public improvements, unless: (A) 

disaster recovery grant funds are used to 

pay the proportion of such fee or 

assessment that relates to the capital 

costs of such public improvements that 

are financed from revenue sources other 

than under this title; or (B) for purposes 

of assessing any amount against 

properties owned and occupied by 

persons of moderate income, the grantee 

certifies to the Secretary that it lacks 

sufficient CDBG funds (in any form) to 

comply with the requirements of clause 

(A). 

j. The state certifies that the grant will 

be conducted and administered in 

conformity with title VI of the Civil 

Rights Act of 1964 (42 U.S.C. 2000d) 

and the Fair Housing Act (42 U.S.C. 

3601–3619) and implementing 

regulations. 

k. The state certifies that it has and 

that it will require units of general local 

government that receive grant funds to 

certify that they have adopted and are 

enforcing: 

1. A policy prohibiting the use of 

excessive force by law enforcement 

agencies within its jurisdiction against 

any individuals engaged in non-violent 

civil rights demonstrations; and 

2. A policy of enforcing applicable 

state and local laws against physically 

barring entrance to or exit from a facility 

or location that is the subject of such 

non-violent civil rights demonstrations 

within its jurisdiction. 

l. The state certifies that each state 

grant recipient or administering entity 

has the capacity to carry out disaster 

recovery activities in a timely manner, 

or that the state has a plan to increase 

the capacity of any state grant recipient 

or administering entity that lacks such 

capacity. 

m. The state certifies that it will not 

use CDBG disaster recovery funds for 

any activity in an area delineated as a 

special flood hazard area in FEMA’s 

most current flood advisory maps, 

unless it also ensures that the action is 

designed or modified to minimize harm 

to or within the floodplain in 

accordance with Executive Order 11988 

and 24 CFR part 55. 

n. The state certifies that it will 

comply with applicable laws. 

22. Duration of funding. Availability 

of funds provisions in 31 U.S.C. 1551–

1557, added by section 1405 of the 

National Defense Authorization Act for 

Fiscal Year 1991 (Public Law 101–510), 

limit the availability of certain 

appropriations for expenditure. This 

limitation may not be waived. However, 

the appropriations acts for these grants 

direct that these funds be available until 

expended unless, in accordance with 31 

U.S.C. 1555, the Department determines 

that the purposes for which the 

appropriation has been made have been 

carried out and that no disbursement 

has been made against the appropriation 

for 2 consecutive fiscal years. In such a 

case, the Department shall close out the 

grant prior to expenditure of all funds. 

Provisions Unique to Grants Under 

Public Law 109–234 

23. Action Plan additional elements. 

The disaster recovery grantees receiving 

funding under Public Law 109–234 

must provide the following elements as 

part of the overall plan for disaster 

recovery: 

a. An explanation of how the state 

will give priority to the rehabilitation 

and reconstruction of the affordable 

rental housing stock, including public 

and other HUD-assisted housing, a 

description of the activities the state 

plans to undertake with grant funds 

under this priority, and a description of 

the unique challenges that individuals 

with disabilities face in finding 

accessible and affordable housing; 

b. An explanation of how the state 

will give priority to infrastructure 

development and rehabilitation, and a 

description of the infrastructure 

activities it plans to undertake with 

grant funds; and 

c. An explanation of how the method 

of distribution or use of funds described 

in accordance with the applicable 

notices will result in the state meeting 

the requirement that at least 19.3311 

percent of its allocation under this 

notice shall be used for repair, 

rehabilitation, and reconstruction 

(including demolition, site clearance, 

and remediation) of the affordable rental 

housing stock (including public and 

other HUD-assisted housing) in the 

impacted areas. 

24. Alternative requirements 

regarding targeting in Louisiana. 

a. The State of Louisiana will target 70 

percent of its disaster recovery funds 

under Public Law 109–234 toward the 

disaster recovery needs in the New 

Orleans-Metairie-Bogalusa Metropolitan 

Area; and 

b. Before Louisiana expends any 

funds to meet the minimum 

requirement for affordable rental 

housing under this notice, the Governor 

of Louisiana shall demonstrate to the 

Secretary’s satisfaction that the state 

will provide funds or has identified 

dedicated resources sufficient to meet 

the key disaster recovery needs for 

repair, rehabilitation, and 

reconstruction of affordable rental 

housing stock, including public housing 

disaster recovery in the most impacted 

areas of the state. 

Catalog of Federal Domestic Assistance 

The Catalog of Federal Domestic 

Assistance numbers for the disaster 

recovery grants under this Notice are as 

follows: 14.219; 14.228. 

Finding of No Significant Impact 

A Finding of No Significant Impact 

(FONSI) with respect to the 

environment has been made in 

accordance with HUD regulations at 24 

CFR part 50, which implement section 

102(2)(C) of the National Environmental 

Policy Act of 1969 (42 U.S.C. 

4332(2)(C)). The FONSI is available for 

public inspection between 8 a.m. and 5 


pwalker on PROD1PC71 with NOTICES
46322 Federal Register / Vol. 73, No. 154 / Friday, August 8, 2008 / Notices 

p.m. weekdays in the Office of the Rules 

Docket Clerk, Office of General Counsel, 

Department of Housing and Urban 

Development, 451 Seventh Street, SW., 

Room 10276, Washington, DC 20410–

0500. Due to security measures at the 

HUD Headquarters building, please 

schedule an appointment to review the 

finding by calling the Regulations 

Division at 202–402–3055 (this is not a 

toll-free number). 

Dated: July 28, 2008. 

Roy A. Bernardi, 

Deputy Secretary. 

[FR Doc. E8–18281 Filed 8–7–08; 8:45 am] 

BILLING CODE 4210–67–P 

DEPARTMENT OF THE INTERIOR 

Office of the Secretary 

Exxon Valdez Oil Spill Trustee Council; 

Notice of Meeting 

AGENCY: Office of the Secretary, 

Department of the Interior. 

ACTION: Notice of meeting. 

SUMMARY: The Department of the 

Interior, Office of the Secretary is 

announcing a public meeting of the 

Exxon Valdez Oil Spill Public Advisory 

Committee. 

DATES: September 3, 2008, at 9 a.m. 

ADDRESSES: Exxon Valdez Oil Spill 

Trustee Council Office, 441 West 5th 

Avenue, Suite 500, Anchorage, Alaska. 

FOR FURTHER INFORMATION CONTACT: 

Douglas Mutter, Department of the 

Interior, Office of Environmental Policy 

and Compliance, 1689 ‘‘C’’ Street, Suite 

119, Anchorage, Alaska, 99501, (907) 

271–5011. 

SUPPLEMENTARY INFORMATION: The 

Public Advisory Committee was created 

by Paragraph V.A.4 of the Memorandum 

of Agreement and Consent Decree 

entered into by the United States of 

America and the State of Alaska on 

August 27, 1991, and approved by the 

United States District Court for the 

District of Alaska in settlement of 

United States of America v. State of 

Alaska, Civil Action No. A91–081 CV. 

The meeting agenda will include review 

of the draft fiscal year 2009 program 

development and implementation 

budget, and invitation; 2008 update to 

the Injured Resources and Services List; 

Integrated Herring Restoration Program; 

fiscal year 2008 projects requesting 

extensions; and personnel changes. 

Willie R. Taylor, 

Director, Office of Environmental Policy and 

Compliance. 

[FR Doc. E8–18341 Filed 8–7–08; 8:45 am] 

BILLING CODE 4310–RG–P 

DEPARTMENT OF THE INTERIOR 

Fish and Wildlife Service 

[FWS-R7-R-2008-NO182] [70138-1263-0000- 

4A] 

Information Collection Sent to the 

Office of Management and Budget 

(OMB) for Approval; Alaska Guide 

Service Evaluation 

AGENCY: Fish and Wildlife Service, 

Interior. 

ACTION: Notice; request for comments. 

SUMMARY: We (Fish and Wildlife 

Service) have sent an Information 

Collection Request (ICR) to OMB for 

review and approval. The ICR, which is 

summarized below, describes the nature 

of the collection and the estimated 

burden and cost. We may not conduct 

or sponsor and a person is not required 

to respond to a collection of information 

unless it displays a currently valid OMB 

control number. 

DATES: You must submit comments on 

or before September 8, 2008. 

ADDRESSES: Send your comments and 

suggestions on this ICR to the Desk 

Officer for the Department of the 

Interior at OMB-OIRA at (202) 395-6566 

(fax) or OIRA_DOCKET@OMB.eop.gov 

(e-mail). Please provide a copy of your 

comments to Hope Grey, Information 

Collection Clearance Officer, Fish and 

Wildlife Service, MS 222-ARLSQ, 4401 

North Fairfax Drive, Arlington, VA 

22203 (mail); (703) 358-2269 (fax); or 

hope_grey@fws.gov (e-mail). 

FOR FURTHER INFORMATION CONTACT: To 

request additional information about 

this ICR, contact Hope Grey by mail, fax, 

or e-mail (see ADDRESSES) or by 

telephone at (703) 358–2482. 

SUPPLEMENTARY INFORMATION: 

OMB Control Number: None. This is 

a new collection. 

Title: Alaska Guide Service 

Evaluation. 

Service Form Number(s): 3-2349. 

Type of Request: New collection. 

Affected Public: Clients of permitted 

commercial guide service providers. 

Respondent’s Obligation: Voluntary. 

Frequency of Collection: One time 

following use of commercial guide 

services. 

Estimated Annual Number of 

Respondents: 396. 

Estimated Total Annual Responses: 

396. 

Estimated Time Per Response: 15 

minutes. 

Estimated Total Annual Burden 

Hours: 99. 

Abstract: We are proposing to collect 

information to help us evaluate 

commercial guide services on our 

national wildlife refuges in the State of 

Alaska (State). The National Wildlife 

Refuge Administration Act of 1966, as 

amended (16 U.S.C. 668dd-ee), 

authorizes us to permit uses, including 

commercial visitor services, on national 

wildlife refuges when we find the 

activity to be compatible with the 

purposes for which the refuge was 

established. With the objective of 

making available a variety of quality 

visitor services for wildlife-dependent 

recreation on National Wildlife Refuge 

System lands, we issue permits for 

commercial guide services, including 

big game hunting, sport fishing, wildlife 

viewing, river trips, and other guided 

activities. We plan to use FWS Form 3- 

2349 (Alaska Guide Service Evaluation) 

as a method to: 

(1) Monitor the quality of services 

provided by commercial guides. 

(2) Gauge client satisfaction with the 

services. 

(3) Assess the impacts of the activity 

on refuge resources. 

The client is the best source of 

information on the quality of 

commercial guiding services. We plan to 

collect: 

(1) Client name. 

(2) Guide name(s). 

(3) Type of guided activity. 

(4) Dates and location of guided 

activity. 

(5) Information on the services 

received such as the client’s 

expectations, safety, environmental 

impacts, and client’s overall 

satisfaction. 

We will encourage respondents to 

provide any additional comments that 

they wish regarding the guide service or 

refuge experience, and ask whether or 

not they wish to be contacted for 

additional information. 

The above information, in 

combination with State-required guide 

activity reports and contacts with guides 

and clients in the field, will provide a 

comprehensive method for monitoring 

permitted commercial guide activities. 

A regular program of client evaluation 

will help refuge managers detect 

potential problems with guide services 

so that we can take corrective actions 

promptly. In addition, we will use this 

information during the competitive 

selection process for big game and sport 

fishing guides to evaluate an applicant’s 


pwalker on PROD1PC71 with NOTICES