costs, of administering and overseeing the obligation 
and expenditure of amounts made available for use 
under this section. 
‘‘(4) INSPECTOR
GENERAL.—Of any funds 
made available for use under this section, 0.5 per-
cent shall be transferred to the Office of the Inspec-
tor General for necessary costs of audits, reviews, 
oversight, evaluation, and investigations relating to 
amounts made available for use under this section. 
‘‘(5) INDEPENDENT MONITORS.—The Secretary 
shall require each grantee and subgrantee that re-
ceives $10,000,000 or more, in the aggregate, of as-
sistance made available under this section to main-
tain an independent party to monitor compliance 
with this section and the regulations issued to carry 
out this section and any applicable State laws, regu-
lations, and requirements. The costs of providing 
such an independent monitor shall be considered ad-
ministrative costs for purposes of this section. 
‘‘(g) 
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 
originally approved by the Secretary in the plan sub-
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mitted under subsection (c)(1) to the Secretary for 
use of such amounts, including by any change to the 
grant agreement; 
‘‘(2) shall require each grantee to notify the 
Secretary in writing, immediately upon completion of 
all activities identified in the grantee’s plan for use 
of such amounts that was approved by the Secretary 
in connection with such grant, that all such activities 
have been completed; 
‘‘(3) shall not make the full amount allocated 
for a grantee available to such grantee in a single 
grant, but shall make such amount available through 
drawdowns from an account established on behalf of 
the grantee by the Secretary; 
‘‘(4) shall require each grantee to administer 
grant funds in accordance with all applicable laws 
and regulations; and 
‘‘(5) shall prohibit a grantee from delegating, 
by contract or otherwise, the responsibility for ad-
ministering grant funds. 
‘‘(h) SUBGRANTEES.— 
‘‘(1) APPLICABILITY OF GRANTEE STANDARDS 
AND
PROCEDURES.—The Secretary shall apply to 
subgrantees of grantees of assistance under this sec-
tion the same standards and procedures for con-
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tracting, procurement, and oversight that apply to 
such grantees. 
‘‘(2) TRAINING
FOR
GRANT
MANAGEMENT.— 
The Secretary shall— 
‘‘(A) require each grantee to provide train-
ing to all subgrantees regarding requirements 
for grant management, including eligibility 
standards, financial management, procurement 
and recordkeeping; and 
‘‘(B) require each subgrantee to certify, 
upon execution of the subgrant agreement, that 
the subgrantee has received such training. 
‘‘(i) PROCUREMENT.— 
‘‘(1) STANDARDS AND PROCEDURES.—Notwith-
standing section 200.317 of title 2, Code of Federal 
Regulations (2 C.F.R. 200.317), each State or unit 
of general government that receives a grant under 
this section shall adopt and comply with sections 
200.318 through 200.326 of title 2, Code of Federal 
Regulations (2 C.F.R. 200.318–200.326), and each 
such State or unit of general government shall re-
quire subgrantees to comply with such sections. 
‘‘(2) COST/PRICE
ANALYSIS.—In procurement 
of products and services using amounts from a grant 
under this section, including through modification of 
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a contract, the Secretary shall require each State 
and unit of general government receiving a grant 
under this section to perform a cost or price anal-
ysis, which shall involve conducting an independent 
cost estimate before any bids or proposals are re-
ceived. 
‘‘(3) TECHNICAL ASSISTANCE.—The Secretary 
shall provide grantees with technical assistance on 
contracting and procurement processes and shall re-
quire grantees, in contracting or procuring these 
funds, to incorporate performance requirements and 
penalties into any such contracts or agreements. 
‘‘(j) 
TREATMENT
OF
CDBG 
ALLOCATIONS.— 
Amounts made available for use under this section shall 
not be considered relevant to the non-disaster formula al-
locations made pursuant to section 106 (42 U.S.C. 5306). 
‘‘(k) WAIVERS.— 
‘‘(1) AUTHORITY.—Subject to the other provi-
sions 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 obliga-
tion by the Secretary or the use by the recipient of 
such funds (except for requirements related to fair 
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housing, nondiscrimination, labor standards, and the 
environment) if the Secretary finds 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 
30-day period beginning upon the later of— 
‘‘(A) the provision of written notification of 
such waiver or alternative requirement to the 
Congress; or 
‘‘(B) the publication of notice in the Fed-
eral Register of such waiver or alternative re-
quirement. 
‘‘(3) LOW- AND
MODERATE-INCOME
USE.—A 
waiver pursuant to paragraph (1) may not reduce 
the percentage of funds that must be used for activi-
ties that benefit persons of low and moderate income 
to less than 50 percent, unless the Secretary specifi-
cally finds that there is compelling need to further 
reduce the percentage requirement. 
‘‘(4) PROHIBITION.—The Secretary may not 
waive any provision of this section pursuant to the 
authority under paragraph (1). 
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‘‘(l) ENVIRONMENTAL REVIEW.— 
‘‘(1) ADOPTION.—Notwithstanding subsection 
(l)(1), recipients of funds provided under this head-
ing that use such funds to supplement Federal as-
sistance provided under section 402, 403, 404, 406, 
407, or 502 of the Robert T. Stafford Disaster Re-
lief and Emergency Assistance Act (42 U.S.C. 5121 
et seq.) may adopt, without review or public com-
ment, 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 Act (42 
U.S.C. 5304(g)(1)). 
‘‘(2) RELEASE
OF
FUNDS.—Notwithstanding 
section 
104(g)(2) 
of 
this 
Act 
(42 
U.S.C. 
5304(g)(2)), the Secretary may, upon receipt of a 
request for release of funds and certification, imme-
diately 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 categori-
cally excluded from review under the National Envi-
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ronmental Policy Act of 1969 (42 U.S.C. 4321 et 
seq.). 
‘‘(m) DEPOSIT OF UNUSED AMOUNTS IN FUND.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (3), if any amounts made available for assist-
ance under this section remain unobligated upon the 
earlier of— 
‘‘(A) the date that the grantee of such 
amounts notifies the Secretary, pursuant to 
subsection (g)(2) of this section, that the grant-
ee 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 5-year period 
beginning upon the enactment of the Act mak-
ing such amounts available, as such period may 
be extended pursuant to paragraph (2), 
upon such date or expiration, as applicable, the Sec-
retary shall transfer such unobligated amounts to 
the Secretary of the Treasury and the Secretary of 
the Treasury shall cover any such amounts into the 
Community Development Block Grant Disaster Re-
covery Reserve Fund established under section 124. 
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‘‘(2) EXTENSION
OF
PERIOD
FOR
USE
OF 
FUNDS.—The period under paragraph (1)(B)— 
‘‘(A) shall be extended by 2 years if, before 
the expiration of such 5-year period, the Sec-
retary causes to be published in the Federal 
Register notification that such 2-year extension 
is necessary to allow the grantee to complete all 
activities identified in the grantee’s plan for use 
of such amounts that was approved by the Sec-
retary in connection with such grant; and 
‘‘(B) as extended pursuant to subpara-
graph (A), may be extended for an additional 
period not to exceed 3 years if, before the expi-
ration of such 2-year period under subpara-
graph (A), the Director of the Office of Man-
agement and Budget, upon a request by the 
Secretary, causes to be published in the Federal 
Register notification that such additional exten-
sion period is necessary to allow the grantee to 
complete all such activities. 
‘‘(3) EXEMPTION FOR AMOUNTS FOR HUD IG.— 
Paragraphs (1) and (2) shall not apply to amounts 
made available to the Inspector General of the De-
partment of Housing and Urban Development. 
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‘‘SEC. 124. COMMUNITY DEVELOPMENT BLOCK GRANT DIS-
ASTER 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 Re-
covery Reserve Fund (in this section referred to as the 
‘Fund’). 
‘‘(b) AMOUNTS.—The Fund shall consist of any 
amounts appropriated to or credited to the Fund, includ-
ing amounts credited to the Fund pursuant to section 
123(n). 
‘‘(c) USE.—Amounts in the Fund shall be available 
only for providing assistance under section 123, but only 
to the extent provided in advance in appropriations Acts.’’. 
(b) REGULATIONS.— 
(1) IN GENERAL.—Not later than the expira-
tion of the 12-month period beginning on the date 
of the enactment of this Act, the Secretary of Hous-
ing and Urban Development shall issue 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. 
(2) INTERIM REGULATIONS.— 
(A) APPLICABILITY
OF
CDBG
ENTITLE-
MENT
COMMUNITY
REGULATIONS.—Until the 
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daltland on DSKBBV9HB2PROD with BILLS
regulations issued pursuant to paragraph (1) 
take effect, the Secretary of Housing and 
Urban Development shall require each State 
grantee of assistance from community develop-
ment block grant disaster recovery funds to 
comply with the requirements under part 570 of 
the Secretary’s regulations (24 C.F.R. 570) ap-
plicable to entitlement communities. 
(B) WAIVER.—The authority under section 
123(k) of the Housing and Community Devel-
opment Act of 1974 (relating to waiver of, and 
alternative requirements for provisions of stat-
utes and regulations), as added by the amend-
ment made by subsection (a) of this section, 
shall not apply with respect to the requirement 
under subparagraph (A) of this paragraph, ex-
cept that the Secretary may use such authority 
with respect to regulations specified in subpara-
graph (A) (only to the extent of the applica-
bility of such regulations pursuant to subpara-
graph (A)), on a case-by-case and disaster-by- 
disaster basis. 
(3) DEFINITION.—For purposes of this sub-
section, the term ‘‘community development block 
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grant disaster recovery funds’’ means any amounts 
made available in any fiscal year— 
(A) for assistance under section 123 of the 
Housing and Community Development Act of 
1974, as added by the amendment made by 
subsection (a) of this section; or 
(B) under the account entitled ‘‘Depart-
ment of Housing and Urban Development— 
Community Planning and Development—Com-
munity Development Fund’’ for activities au-
thorized under title I of the Housing and Com-
munity Development Act of 1974 (42 U.S.C. 
5301 et seq.) related to disaster relief, long- 
term recovery, restoration of infrastructure and 
housing, or economic revitalization in areas af-
fected by a major disaster declared pursuant to 
the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act (42 U.S.C. 5121 et 
seq.). 
Æ 
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