‘‘(1) may not allow a grantee to use any such 
amounts for any purpose other than the purpose ap-
proved by the Secretary in the plan or amended plan 
submitted under subsection (c)(1) to the Secretary 
for use of such amounts; 
‘‘(2) may not permit a grantee to amend a plan 
to retroactively approve a beneficiary’s use of funds 
for an eligible activity other than an activity for 
which the funds were originally approved in the 
plan; and 
‘‘(3) shall prohibit a grantee from delegating, 
by contract or otherwise, the responsibility for inher-
ent government functions. 
‘‘(g) TRAINING FOR GRANT MANAGEMENT FOR SUB-
GRANTEES.—The Secretary shall require each grantee to 
provide ongoing training to all staff and subgrantees. 
‘‘(h) PROCUREMENT PROCESSES AND PROCEDURES 
FOR GRANTEES.— 
‘‘(1) 
GRANTEE
PROCESSES
AND
PROCE-
DURES.—In procuring property or services to be 
paid for in whole or in part with amounts from a 
grant under this section, a grantee shall— 
‘‘(A) follow its own procurement processes 
and procedures, but only if the Secretary makes 
a determination that such processes and proce-
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dures comply with the requirements under 
paragraph (2); or 
‘‘(B) comply with such processes and pro-
cedures as the Secretary shall, by regulation, 
establish for purposes of this section. 
‘‘(2) REQUIREMENTS.—The requirements under 
this paragraph with respect to the procurement 
processes and procedures of a grantee are that such 
processes and procedures shall— 
‘‘(A) provide for full and open competition 
and require cost or price analysis; 
‘‘(B) include requirements for procurement 
policies and procedures for subgrantees; 
‘‘(C) specify methods of procurement and 
their applicability, but not allow cost-plus-a-per-
centage-of cost or percentage-of-construction- 
cost methods of procurement; 
‘‘(D) include standards of conduct gov-
erning employees engaged in the award or ad-
ministration of contracts; and 
‘‘(E) ensure that all purchase orders and 
contracts include any clauses required by Fed-
eral Statute, Executive order, or implementing 
regulation. 
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‘‘(3) NONCOMPLIANCE.—In the case of a grant-
ee for which the Secretary finds pursuant to para-
graph (1)(A) that its procurement processes and 
procedures do not comply with paragraph (2), the 
Secretary shall— 
‘‘(A) provide the grantee with specific writ-
ten notice of the elements of noncompliance and 
the changes necessary to such processes and 
procedures to provide for compliance; 
‘‘(B) provide the grantee a reasonable pe-
riod of time to come into compliance; and 
‘‘(C) during such period allow the grantee 
to proceed with procuring property and services 
paid for in whole or in part with amounts from 
a grant under this section in compliance with 
the procurement processes and procedures of 
the grantee, but only if the Secretary deter-
mines that the grantee is making a good faith 
effort to effectuate compliance with the require-
ments of paragraph (2). 
‘‘(i) 
TREATMENT
OF
CDBG 
ALLOCATIONS.— 
Amounts made available for use under this section shall 
not be considered relevant to the non-disaster formula al-
locations made pursuant to section 106 of this title (42 
U.S.C. 5306). 
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‘‘(j) 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 
housing, nondiscrimination, labor standards, and the 
environment and except for the requirements of this 
section), if the Secretary makes a public finding that 
good cause exists for the waiver or alternative re-
quirement and such waiver or alternative require-
ment would not be inconsistent with the overall pur-
pose of this title. 
‘‘(2) NOTICE AND PUBLICATION.—Any waiver 
of or alternative requirement pursuant to paragraph 
(1) shall not take effect before the expiration of the 
5-day period beginning upon the publication of no-
tice in the Federal Register of such waiver or alter-
native requirement. 
‘‘(3) LOW- AND MODERATE-INCOME USE.—The 
requirements in this Act that apply to grants made 
under section 106 of this title (except those related 
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to the allocation) apply equally to grants under this 
section unless modified by a waiver or alternative re-
quirement pursuant to paragraph (1). Notwith-
standing the preceding sentence, the Secretary may 
not grant a waiver to reduce the percentage of funds 
that must be used for activities that benefit persons 
of low and moderate income to less than 70 percent, 
unless the Secretary specifically finds that there is 
compelling need to further reduce the percentage re-
quirement and that funds are not necessary to ad-
dress the housing needs of low- and moderate-in-
come residents. 
‘‘(4) PROHIBITION.—The Secretary may not 
waive any provision of this section pursuant to the 
authority under paragraph (1). 
‘‘(k) ENVIRONMENTAL REVIEW.— 
‘‘(1) ADOPTION.—Notwithstanding subsection 
(j)(1), recipients of funds provided under this section 
that use such funds to supplement Federal assist-
ance provided under section 402, 403, 404, 406, 
407, 408(c)(4), 428, or 502 of the Robert T. Staf-
ford Disaster Relief and Emergency Assistance Act 
(42 U.S.C. 5121 et seq.) may adopt, without review 
or public comment, any environmental review, ap-
proval, or permit performed by a Federal agency, 
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and such adoption shall satisfy the responsibilities of 
the recipient with respect to such environmental re-
view, approval, or permit under section 104(g)(1) of 
this title (42 U.S.C. 5304(g)(1)). 
‘‘(2) RELEASE
OF
FUNDS.—Notwithstanding 
section 
104(g)(2) 
of 
this 
title 
(42 
U.S.C. 
5304(g)(2)), the Secretary may, upon receipt of a 
request for release of funds and certification, 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-
ronmental Policy Act of 1969 (42 U.S.C. 4321 et 
seq.). 
‘‘(l) COLLECTION
OF INFORMATION; AUDITS
AND 
OVERSIGHT.— 
‘‘(1) COLLECTION OF INFORMATION.—For each 
major disaster for which assistance is made available 
under this section, the Secretary shall collect infor-
mation from grantees regarding all recovery activi-
ties so assisted, including information on applicants 
and recipients of assistance, and shall make such in-
formation available to the public and to the Inspec-
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tor General for the Department of Housing and 
Urban Development on a monthly basis using uni-
form data collection practices, and shall provide a 
monthly update to the Congress regarding compli-
ance with this section. Information collected and re-
ported by grantees and the Secretary shall be 
disaggregated by program, race, income, geography, 
and all protected classes of individuals under the 
Robert T. Stafford Disaster Relief and Emergency 
Assistance Act, the Americans with Disabilities Act 
of 1990, the Fair Housing Act, the Civil Rights Act 
of 1964, and other civil rights and nondiscrimination 
protections, with respect to the smallest census 
tract, block group, or block possible for the data set. 
‘‘(2) AVAILABILITY OF INFORMATION.—In car-
rying out this paragraph, the Secretary may make 
full and unredacted information available to aca-
demic and research institutions for the purpose of 
research into the equitable distribution of recovery 
funds, adherence to civil rights protections, and 
other areas. 
‘‘(3) PROTECTION OF INFORMATION.—The Sec-
retary shall take such actions and make such 
redactions as may be necessary to ensure that per-
sonally identifiable information regarding recipients 
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of assistance provided from funds made available 
under this section shall not be made publicly avail-
able. 
‘‘(4) AUDITS AND OVERSIGHT.—In conducting 
audits, reviews, oversight, evaluation, and investiga-
tions, in addition to activities designed to prevent 
and detect waste, fraud, and abuse, the Inspector 
General shall review programs of grantees under this 
section for providing disaster relief and recovery as-
sistance to ensure such programs fulfill their agreed- 
upon purposes and serve all eligible applicants for 
disaster relief or recovery assistance. 
‘‘(m) BEST PRACTICES.— 
‘‘(1) STUDY.—The Secretary shall direct the 
Office Community Planning and Development to col-
laborate with the Office of Policy Development and 
Research to identify best practices for grantees on 
issues including developing the action plan under 
subsection (c) and substantive amendments, estab-
lishing financial controls, building grantee technical 
and administrative capacity, procurement, compli-
ance with Fair Housing Act statute and regulations, 
and use of grant funds as local match for other 
sources of Federal funding. The Secretary shall pub-
lish a compilation of such identified best practices 
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and share with all relevant grantees to facilitate a 
more efficient and effective disaster recovery proc-
ess. The compilation shall include guidelines for 
housing and economic revitalization programs, in-
cluding mitigation, with sufficient model language on 
program design for grantees to incorporate into ac-
tion plans. The compilation shall include standards 
for at least form of application, determining unmet 
need, and income eligibility. 
‘‘(2) PROMULGATION.—After publication of the 
final compilation, the Secretary shall issue either 
Federal regulations, as part of the final rule for the 
above authorization or as a separate rule, or a Fed-
eral Register notice that establishes the require-
ments which grantees must follow in order to qualify 
for expedited review and approval. Such guidance 
shall establish standard language for inclusion in ac-
tion plans under subsection (c) and for establishing 
standardized programs and activities recognized by 
the Secretary. Use of best practices shall not pre-
clude grantees from standard requirements for pub-
lic comment, community engagement, and online 
posting of the action plan. Use of promulgated best 
practices shall allow for an expedited review process, 
under which the Secretary will approve or disapprove 
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such programs within 30 days. The Secretary shall 
publish the draft compilation of best practices on its 
website and allow the public 60 days to submit com-
ments. The Secretary shall review all public com-
ments and publish a final compilation within one 
year from the date of enactment. The Secretary may 
revise the requirements for best practices at any 
time after a public comment period of at least 60 
days. 
‘‘(n) PLAN PRE-CERTIFICATION FOR UNITS OF GEN-
ERAL LOCAL GOVERNMENT.— 
‘‘(1) IN GENERAL.—The Secretary shall carry 
out a program under this subsection to provide for 
units of general local government to pre-certify as el-
igible grantees for assistance under this section. The 
objective of such program shall be to— 
‘‘(A) allow grantees that have consistently 
demonstrated the ability to administer funds re-
sponsibly and equitably in similar disasters to 
utilize in subsequent years plans which are sub-
stantially similar to those the Department has 
previously approved; and 
‘‘(B) facilitate the re-use of a plan or its 
substantially similar equivalent by a pre-cer-
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tified grantee for whom the plan has previously 
been approved and executed upon. 
‘‘(2) REQUIREMENTS.—To be eligible for pre- 
certification under the program under this sub-
section a unit of general local government shall— 
‘‘(A) demonstrate to the satisfaction of the 
Secretary compliance with the requirements of 
this section; and 
‘‘(B) have previously submitted a plan or 
its substantially similar equivalent and received 
assistance thereunder as a grantee or sub-
grantee under this section, or with amounts 
made available for the Community Development 
Block Grant—Disaster Recovery account, in 
connection with two or more major disasters de-
clared pursuant to the Robert T. Stafford Dis-
aster Relief and Emergency Assistance Act (42 
U.S.C. 5121 et seq.). 
‘‘(3) APPROVAL OF PLANS.— 
‘‘(A) EXPEDITED APPROVAL PROCESSES.— 
The Secretary shall establish and maintain 
processes for expediting approval of plans for 
units of general local government that are pre- 
certified under this subsection. 
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extended pursuant to paragraph (2), the Sec-
retary shall transfer such unexpended amounts 
to the Secretary of the Treasury for deposit 
into the Community Development Block Grant 
Disaster Recovery Reserve Fund established 
under section 124, except that the Secretary 
may, by regulation, permit the grantee to retain 
amounts needed to close out the grant. 
‘‘(2) EXTENSION
OF
PERIOD
FOR
USE
OF 
FUNDS.—The period under paragraph (1)(B) shall 
be extended by not more than 4 years if, before the 
expiration of such 6-year period, the Secretary 
waives this requirement and submits a written jus-
tification for such waiver to the Committees on Ap-
propriations of the House of Representatives and the 
Senate that specifies the period of such extension. 
‘‘(p) DEFINITIONS.—For purposes of this section: 
‘‘(1) GRANTEE.—The term ‘grantee’ means a 
recipient of funds made available under this section 
after its enactment. 
‘‘(2) SUBSTANTIALLY SIMILAR.—The term ‘sub-
stantially similar’ means, with respect to a plan, a 
plan previously approved by the Department, admin-
istered successfully by the grantee, and relating to 
disasters of the same type. 
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‘‘(3) OTHER TERMS.—Within one year of enact-
ment of this section, the Department shall issue 
rules to define the following terms: 
‘‘(A) Unmet needs. 
‘‘(B) Most impacted and distressed. 
‘‘(C) Substantial compliance. 
‘‘(D) Full and open competition. 
‘‘(E) Cost plus a percentage of cost. 
‘‘(F) Percentage of construction cost. 
‘‘SEC. 124. COMMUNITY DEVELOPMENT BLOCK GRANT 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 deposited into the Fund, in-
cluding amounts deposited into the Fund pursuant to sec-
tion 123(o). 
‘‘(c) USE.—Amounts in the Fund shall be available, 
pursuant to the occurrence of a major disaster declared 
under the Robert T. Stafford Disaster Relief and Emer-
gency Assistance Act, only for providing technical assist-
ance and capacity building in connection with section 123 
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for grantees under such section that have been allocated 
assistance under such section in connection with such dis-
aster to facilitate planning required under such section 
and increase capacity to administer assistance provided 
under such section.’’. 
(b) REGULATIONS.— 
(1) PROPOSED RULE.—Not later than the expi-
ration of the 6-month period beginning on the date 
of the enactment of this Act, the Secretary of Hous-
ing and Urban Development shall issue proposed 
rules to carry out sections 123 and 124 of the Hous-
ing and Community Development Act of 1974, as 
added by the amendment made by subsection (a) of 
this section, and shall provide a 90-day period for 
submission of public comments on such proposed 
rule. 
(2) FINAL RULE.—Not later than the 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 final regula-
tions to carry out sections 123 and 124 of the Hous-
ing and Community Development Act of 1974, as 
added by the amendment made by subsection (a) of 
this section. 
Æ 
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