I 
118TH CONGRESS 
1ST SESSION H. R. 5940 
To establish a community disaster assistance fund for housing and community 
development and to authorize the Secretary of Housing and Urban Devel-
opment to provide, from the fund, assistance through a community devel-
opment block grant disaster recovery program, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
OCTOBER 12, 2023 
Mr. GREEN of Texas introduced the following bill 
OCTOBER 25, 2023 
Referred to the Committee on Financial Services, and in addition to the Com-
mittee on Appropriations, for a period to be subsequently determined by 
the Speaker, in each case for consideration of such provisions as fall with-
in the jurisdiction of the committee concerned 
A BILL 
To establish a community disaster assistance fund for hous-
ing and community development and to authorize the 
Secretary of Housing and Urban Development to provide, 
from the fund, assistance through a community develop-
ment block grant disaster recovery program, and for 
other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Reforming Disaster 
Recovery Act’’. 
SEC. 2. FINDINGS. 
Congress finds that— 
(1) following a major disaster declared by the 
President under section 401 of the Robert T. Staf-
ford Disaster Relief and Emergency Assistance Act 
(42 U.S.C. 5170), the subset of communities that 
are most impacted and distressed as a result of the 
disaster face critical social, economic, and environ-
mental obstacles to recovery, including insufficient 
public and private resources to address disaster-re-
lated housing and community development needs for 
lower income households and distressed commu-
nities; 
(2) unmet disaster recovery needs, including 
housing assistance needs, can be especially wide-
spread among persons with extremely low-, low-, and 
moderate-incomes; 
(3) economic, social, and housing hardships 
that affect communities before disasters are exacer-
bated during crises and can delay and complicate 
long-term recovery, especially after catastrophic 
major disasters; 
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(4) States, units of local government, and In-
dian Tribes within the most impacted and distressed 
areas resulting from major disasters benefit from 
flexibility to design programs that meet local needs, 
but face inadequate financial, technical, and staffing 
capacity to plan and carry out sustained recovery, 
restoration, and mitigation activities; 
(5) the speed and effectiveness considerations of 
long-term recovery from catastrophic major disasters 
is improved by predictable investments that support 
disaster relief, long-term recovery, restoration of 
housing and infrastructure, and economic revitaliza-
tion, primarily for the benefit of low- and moderate- 
income persons; 
(6) undertaking activities that mitigate the ef-
fects of future natural disasters and extreme weath-
er and increase the stock of affordable housing, in-
cluding affordable rental housing, as part of long- 
term recovery can significantly reduce future fiscal 
and social costs, especially within high-risk areas, 
and can help to address outstanding housing and 
community development needs by creating jobs and 
providing other economic and social benefits within 
communities that further promote recovery and resil-
ience; and 
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(7) the general welfare and security of the 
United States and the health and living standards of 
its people require targeted resources to support 
State and local governments in carrying out their re-
sponsibilities in disaster recovery and mitigation 
through interim and long-term housing and commu-
nity development activities that primarily benefit 
low- and moderate-income persons. 
SEC. 3. DEFINITIONS. 
In this Act: 
(1) DEPARTMENT.—The term ‘‘Department’’ 
means the Department of Housing and Urban De-
velopment. 
(2) FUND.—The term ‘‘Fund’’ means the 
Long-Term Disaster Recovery Fund established 
under section 5. 
(3) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Housing and Urban Development. 
SEC. 4. DUTIES OF THE DEPARTMENT OF HOUSING AND 
URBAN DEVELOPMENT. 
(a) IN GENERAL.—The offices and officers of the De-
partment shall be responsible for— 
(1) leading and coordinating the disaster-re-
lated responsibilities of the Department under the 
National Response Framework, the National Dis-
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tional, natural, and nature-based infrastructure al-
ternatives; 
(6) coordinating technical assistance, including 
mitigation, resiliency, and recovery training and in-
formation on all relevant legal and regulatory re-
quirements, to entities that receive disaster recovery 
assistance under title I of the Housing and Commu-
nity Development Act of 1974 (42 U.S.C. 5301 et 
seq.) that demonstrate capacity constraints; and 
(7) supporting State, Tribal, and local govern-
ments in developing, coordinating, and maintaining 
their capacity for disaster resilience and recovery 
and developing pre-disaster recovery and hazard 
mitigation plans, in coordination with the Federal 
Emergency Management Agency and other Federal 
agencies. 
(b) ESTABLISHMENT OF THE OFFICE OF DISASTER 
MANAGEMENT AND RESILIENCY.—Section 4 of the De-
partment of Housing and Urban Development Act (42 
U.S.C. 3533) is amended by adding at the end the fol-
lowing: 
‘‘(i) OFFICE OF DISASTER MANAGEMENT AND RE-
SILIENCY.— 
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‘‘(1) ESTABLISHMENT.—There is established, 
in the Office of the Secretary, the Office of Disaster 
Management and Resiliency. 
‘‘(2) DUTIES.—The Office of Disaster Manage-
ment and Resiliency shall— 
‘‘(A) be responsible for oversight and co-
ordination of all departmental disaster pre-
paredness and response responsibilities; and 
‘‘(B) coordinate with the Federal Emer-
gency Management Agency, the Small Business 
Administration, and the Office of Community 
Planning and Development and other offices of 
the Department in supporting recovery and re-
silience activities to provide a comprehensive 
approach in working with communities.’’. 
SEC. 5. LONG-TERM DISASTER RECOVERY FUND. 
(a) ESTABLISHMENT.—There is established in the 
Treasury of the United States an account to be known 
as the Long-Term Disaster Recovery Fund. 
(b) DEPOSITS, TRANSFERS, AND CREDIT.— 
(1) IN GENERAL.—The Fund shall consist of 
amounts appropriated, transferred, and credited to 
the Fund. 
(2) TRANSFERS.—The following may be trans-
ferred to the Fund: 
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(A) Amounts made available through sec-
tion 106(c)(4) of the Housing and Community 
Development 
Act 
of 
1974 
(42 
U.S.C. 
5306(c)(4)) as a result of actions taken under 
section 104(e), 111, or 123(j) of such Act. 
(B) Any unobligated balances available 
until expended remaining or subsequently re-
captured from amounts appropriated for any 
disaster and related purposes under the heading 
‘‘Community Development Fund’’ in any Act 
prior to the establishment of the Fund. 
(3) 
USE
OF
TRANSFERRED
AMOUNTS.— 
Amounts transferred to the Fund shall be used for 
the eligible uses described in subsection (c). 
(c) ELIGIBLE USES OF FUND.— 
(1) IN GENERAL.—Amounts in the Fund shall 
be available— 
(A) to provide assistance in the form of 
grants under section 123 of the Housing and 
Community Development Act of 1974, as added 
by section 6; and 
(B) for activities of the Department that 
support the provision of such assistance, includ-
ing necessary salaries and expenses, informa-
tion technology, capacity building and technical 
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assistance (including assistance related to pre- 
disaster planning), and readiness and other pre- 
disaster planning activities that are not readily 
attributable to a single major disaster. 
(2) SET ASIDE.—Of each amount appropriated 
for or transferred to the Fund, 2 percent shall be 
made available for activities described in paragraph 
(1)(B), which shall be in addition to other amounts 
made available for those activities. 
(3) TRANSFER
OF
FUNDS.—Amounts made 
available for use in accordance with paragraph (2)— 
(A) may be transferred to the account 
under the heading for ‘‘Program Offices—Com-
munity Planning and Development’’, or any 
successor account, for the Department to carry 
out activities described in paragraph (1)(B); 
and 
(B) may be used for the activities de-
scribed in paragraph (1)(B) and for the admin-
istrative costs of administering any funds ap-
propriated to the Department under the head-
ing ‘‘Community Planning and Development— 
Community Development Fund’’ for any major 
disaster declared under section 401 of the Rob-
ert T. Stafford Disaster Relief and Emergency 
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Assistance Act (42 U.S.C. 5170) in any Act be-
fore the establishment of the Fund. 
(d) INTERCHANGEABILITY OF PRIOR ADMINISTRA-
TIVE AMOUNTS.—Any amounts appropriated in any Act 
prior to the establishment of the Fund and transferred 
to the account under the heading ‘‘Program Offices Sala-
ries and Expenses—Community Planning and Develop-
ment’’, or any predecessor account, for the Department 
for the costs of administering funds appropriated to the 
Department under the heading ‘‘Community Planning and 
Development—Community Development Fund’’ for any 
major disaster declared under section 401 of the Robert 
T. Stafford Disaster Relief and Emergency Assistance Act 
(42 U.S.C. 5170) shall be available for the costs of admin-
istering any such funds provided by any prior or future 
Act, notwithstanding the purposes for which those 
amounts were appropriated and in addition to any amount 
provided for the same purposes in other appropriations 
Acts. 
(e) AVAILABILITY OF AMOUNTS.—Amounts appro-
priated, transferred, and credited to the Fund shall re-
main available until expended. 
(f) FORMULA ALLOCATION.—Use of amounts in the 
Fund for grants shall be made by formula allocation in 
accordance with the requirements of section 123(a) of the 
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Housing and Community Development Act of 1974, as 
added by section 6. 
(g) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Fund such sums 
as may be necessary to respond to current or future major 
disasters declared under section 401 of the Robert T. 
Stafford Disaster Relief and Emergency Assistance Act 
(42 U.S.C. 5179) for grants under section 123 of the 
Housing and Community Development Act of 1974, as 
added by section 6. 
SEC. 6. ESTABLISHMENT OF CDBG DISASTER RECOVERY 
PROGRAM. 
Title I of the Housing and Community Development 
Act of 1974 (42 U.S.C. 5301 et seq.) is amended— 
(1) in section 102(a) (42 U.S.C. 5302(a))— 
(A) in paragraph (20)— 
(i) by redesignating subparagraph (B) 
as subparagraph (C); 
(ii) in subparagraph (C), as so redes-
ignated, by inserting ‘‘or (B)’’ after ‘‘sub-
paragraph (A)’’; and 
(iii) by inserting after subparagraph 
(A) the following: 
‘‘(B) The term ‘persons of extremely low in-
come’ means families and individuals whose income 
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levels do not exceed household income levels deter-
mined by the Secretary under section 3(b)(2) of the 
United States Housing Act of 1937 (42 U.S.C. 
1437a(b)(2)(C)), except that the Secretary may pro-
vide alternative definitions for the Commonwealth of 
Puerto Rico, Guam, the Commonwealth of the 
Northern Mariana Islands, the United States Virgin 
Islands, and American Samoa.’’; and 
(B) by adding at the end the following: 
‘‘(25) The term ‘major disaster’ has the mean-
ing given the term in section 102 of the Robert T. 
Stafford Disaster Relief and Emergency Assistance 
Act (42 U.S.C. 5122).’’; 
(2) 
in 
section 
106(c)(4) 
(42 
U.S.C. 
5306(c)(4))— 
(A) in subparagraph (A)— 
(i) by striking ‘‘declared by the Presi-
dent under the Robert T. Stafford Disaster 
Relief and Emergency Assistance Act’’; 
(ii) inserting ‘‘States for use in non-
entitlement areas and to’’ before ‘‘metro-
politan cities’’; and 
(iii) inserting ‘‘major’’ after ‘‘affected 
by the’’; 
(B) in subparagraph (C)— 
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(i) by striking ‘‘metropolitan city or’’ 
and inserting ‘‘State, metropolitan city, 
or’’; 
(ii) by striking ‘‘city or county’’ and 
inserting ‘‘State, city, or county’’; and 
(iii) by inserting ‘‘major’’ before ‘‘dis-
aster’’; 
(C) in subparagraph (D), by striking ‘‘met-
ropolitan cities and’’ and inserting ‘‘States, 
metropolitan cities, and’’; 
(D) in subparagraph (F)— 
(i) by striking ‘‘metropolitan city or’’ 
and inserting ‘‘State, metropolitan city, 
or’’; and 
(ii) by inserting ‘‘major’’ before ‘‘dis-
aster’’; and 
(E) in subparagraph (G), by striking ‘‘met-
ropolitan city or’’ and inserting ‘‘State, metro-
politan city, or’’; 
(3) in section 122 (42 U.S.C. 5321), by striking 
‘‘disaster under title IV of the Robert T. Stafford 
Disaster Relief and Emergency Assistance Act’’ and 
inserting ‘‘major disaster’’; and 
(4) by adding at the end the following: 
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‘‘SEC. 123. COMMUNITY DEVELOPMENT BLOCK GRANT DIS-
ASTER RECOVERY PROGRAM. 
‘‘(a) AUTHORIZATION, FORMULA, AND
ALLOCA-
TION.— 
‘‘(1) AUTHORIZATION.—The Secretary is au-
thorized to make community development block 
grant disaster recovery grants from the Long-Term 
Disaster Recovery Fund established under section 5 
of the Reforming Disaster Recovery Act (hereinafter 
referred to as the ‘Fund’) for necessary expenses for 
activities authorized under subsection (f)(1) related 
to disaster relief, long-term recovery, restoration of 
housing and infrastructure, economic revitalization, 
and mitigation in the most impacted and distressed 
areas resulting from a catastrophic major disaster. 
‘‘(2) GRANT AWARDS.—Grants shall be awarded 
under this section to States, units of general local 
government, and Indian tribes based on capacity and 
the concentration of damage, as determined by the 
Secretary, to support the efficient and effective ad-
ministration of funds. 
‘‘(3) 
SECTION
106
ALLOCATIONS.—Grants 
under this section shall not be considered relevant to 
the formula allocations made pursuant to section 
106. 
‘‘(4) FEDERAL REGISTER NOTICE.— 
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‘‘(A) IN
GENERAL.—Not later than 30 
days after the date of enactment of this section, 
the Secretary shall issue a notice in the Federal 
Register containing the latest formula allocation 
methodologies used to determine the total esti-
mate of unmet needs related to housing, eco-
nomic revitalization, and infrastructure in the 
most impacted and distressed areas resulting 
from a catastrophic major disaster. 
‘‘(B) PUBLIC COMMENT.—If the Secretary 
has not already requested public comment on 
the formula described in the notice required by 
subparagraph (A), the Secretary shall solicit 
public comments on— 
‘‘(i) the methodologies described in 
subparagraph (A) and seek alternative 
methods for formula allocation within a 
similar total amount of funding; 
‘‘(ii) the impact of formula methodolo-
gies on rural areas and Tribal areas; 
‘‘(iii) adjustments to improve tar-
geting to the most serious needs; 
‘‘(iv) objective criteria for grantee ca-
pacity and concentration of damage to in-
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form grantee determinations and minimum 
allocation thresholds; and 
‘‘(v) research and data to inform an 
additional amount to be provided for miti-
gation depending on type of disaster, which 
shall be not more than 30 percent of the 
total estimate of unmet needs. 
‘‘(5) REGULATIONS.— 
‘‘(A) IN GENERAL.—The Secretary shall, 
by regulation, establish a formula to allocate as-
sistance from the Fund to the most impacted 
and distressed areas resulting from a cata-
strophic major disaster. 
‘‘(B) FORMULA REQUIREMENTS.—The for-
mula established under subparagraph (A) 
shall— 
‘‘(i) set forth criteria to determine 
that a major disaster is catastrophic, which 
criteria shall consider the presence of a 
high concentration of damaged housing or 
businesses that individual, State, Tribal, 
and local resources could not reasonably be 
expected to address without additional 
Federal assistance or other nationally en-
compassing data that the Secretary deter-
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mines are adequate to assess relative im-
pact and distress across geographic areas; 
‘‘(ii) include a methodology for identi-
fying most impacted and distressed areas, 
which shall consider unmet serious needs 
related to housing, economic revitalization, 
and infrastructure; 
‘‘(iii) include an allocation calculation 
that considers the unmet serious needs re-
sulting from the catastrophic major dis-
aster and an additional amount up to 30 
percent for activities to reduce risks of loss 
resulting from other natural disasters in 
the most impacted and distressed area, pri-
marily for the benefit of low- and mod-
erate-income persons, with particular focus 
on activities that reduce repetitive loss of 
property and critical infrastructure; and 
‘‘(iv) establish objective criteria for 
periodic review and updates to the formula 
to reflect changes in available science and 
data. 
‘‘(C) 
MINIMUM
ALLOCATION
THRESH-
OLD.—The Secretary shall, by regulation, es-
tablish a minimum allocation threshold. 
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‘‘(D) INTERIM
ALLOCATION.—Until such 
time that the Secretary issues final regulations 
under this paragraph, the Secretary shall— 
‘‘(i) allocate assistance from the Fund 
using the formula allocation methodology 
published in accordance with paragraph 
(4); and 
‘‘(ii) include an additional amount for 
mitigation equal to 15 percent of the total 
estimate of unmet need. 
‘‘(6) ALLOCATION OF FUNDS.— 
‘‘(A) IN GENERAL.—The Secretary shall— 
‘‘(i) except as provided in clause (ii), 
not later than 90 days after the President 
declares a major disaster, use best avail-
able data to determine whether the major 
disaster is catastrophic and qualifies for 
assistance under the formula described in 
paragraph (4) or (5), unless data is insuf-
ficient to make this determination; and 
‘‘(ii) if the best available data is insuf-
ficient to make the determination required 
under clause (i) within the 90-day period 
described in that clause, the Secretary 
shall determine whether the major disaster 
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qualifies when sufficient data becomes 
available, but in no case shall the Sec-
retary make the determination later than 
120 days after the declaration of the major 
disaster. 
‘‘(B) ANNOUNCEMENT OF ALLOCATION.— 
If amounts are available in the Fund at the 
time the Secretary determines that the major 
disaster is catastrophic and qualifies for assist-
ance under the formula described in paragraph 
(4) or (5), the Secretary shall immediately an-
nounce an allocation for a grant under this sec-
tion. 
‘‘(C) ADDITIONAL
AMOUNTS.—If addi-
tional amounts are appropriated to the Fund 
after amounts are allocated under subpara-
graph (B), the Secretary shall announce an al-
location or additional allocation (if a prior allo-
cation under subparagraph (B) was less than 
the formula calculation) within 15 days of any 
such appropriation. 
‘‘(7) PRELIMINARY FUNDING.— 
‘‘(A) IN GENERAL.—To speed recovery, the 
Secretary is authorized to allocate and award 
preliminary grants from the Fund before mak-
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ing a determination under paragraph (6)(A) if 
the Secretary projects, based on a preliminary 
assessment of impact and distress, that a major 
disaster is catastrophic and would likely qualify 
for funding under the formula described in 
paragraph (4) or (5). 
‘‘(B) AMOUNT.— 
‘‘(i) MAXIMUM.—The Secretary may 
award preliminary funding under subpara-
graph (A) in an amount that is not more 
than $5,000,000. 
‘‘(ii) SLIDING SCALE.—The Secretary 
shall, by regulation, establish a sliding 
scale for preliminary funding awarded 
under subparagraph (A) based on the size 
of the preliminary assessment of impact 
and distress. 
‘‘(C) USE OF FUNDS.—The uses of pre-
liminary funding awarded under subparagraph 
(A) shall be limited to eligible activities that— 
‘‘(i) in the determination of the Sec-
retary, will support faster recovery, im-
prove the ability of the grantee to assess 
unmet recovery needs, plan for the preven-
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tion of improper payments, and reduce 
fraud, waste, and abuse; and 
‘‘(ii) may include evaluating the in-
terim housing, permanent housing, and 
supportive service needs of the disaster im-
pacted community, with special attention 
to vulnerable populations, such as homeless 
and low- to moderate-income households, 
to inform the grantee action plan required 
under subsection (c). 
‘‘(D) CONSIDERATION OF FUNDING.—Pre-
liminary funding awarded under subparagraph 
(A)— 
‘‘(i) is not subject to the certification 
requirements of subsection (h)(1); and 
‘‘(ii) shall not be considered when cal-
culating the amount of the grant used for 
administrative costs, technical assistance, 
and planning activities that are subject to 
the requirements under subsection (f)(2). 
‘‘(E) WAIVER.—To expedite the use of 
preliminary funding for activities described in 
this paragraph, the Secretary may waive or 
specify alternative requirements to the require-
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ments of this section in accordance with sub-
section (i). 
‘‘(F) AMENDED AWARD.— 
‘‘(i) IN GENERAL.—An award for pre-
liminary funding under subparagraph (A) 
may be amended to add any subsequent 
amount awarded because of a determina-
tion by the Secretary that a major disaster 
is catastrophic and qualifies for assistance 
under the formula. 
‘‘(ii) 
APPLICABILITY.—Notwith-
standing subparagraph (D), amounts pro-
vided by an amendment under clause (i) 
are subject to the requirements under sub-
sections (f)(1) and (h)(1) and other re-
quirements on grant funds under this sec-
tion. 
‘‘(G) TECHNICAL
ASSISTANCE.—Concur-
rent with the allocation of any preliminary 
funding awarded under this paragraph, the Sec-
retary shall assign or provide technical assist-
ance to the recipient of the grant. 
‘‘(b) INTERCHANGEABILITY.— 
‘‘(1) IN GENERAL.—The Secretary is authorized 
to approve the use of grants under this section to be 
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used interchangeably and without limitation for the 
same activities in the most impacted and distressed 
areas resulting from a declaration of another cata-
strophic major disaster that qualifies for assistance 
under the formula established under paragraph (4) 
or (5) of subsection (a) or a major disaster for 
which the Secretary allocated funds made available 
under the heading ‘Community Development Fund’ 
in any Act prior to the establishment of the Fund. 
‘‘(2) REQUIREMENTS.—The Secretary shall es-
tablish requirements to expedite the use of grants 
under this section for the purpose described in para-
graph (1). 
‘‘(3) 
EMERGENCY
DESIGNATION.—Amounts 
repurposed pursuant to this subsection that were 
previously designated by Congress as an emergency 
requirement pursuant to the Balanced Budget and 
Emergency Deficit Control Act of 1985 or a concur-
rent resolution on the budget are designated by Con-
gress as an emergency requirement pursuant to sec-
tion 4001(a)(1) of S. Con. Res. 14 (117th Congress) 
and legislation establishing fiscal year 2024 budget 
enforcement in the House of Representatives. 
‘‘(c) GRANTEE PLANS.— 
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‘‘(1) REQUIREMENT.—Not later than 90 days 
after the date on which the Secretary announces a 
grant allocation under this section, unless an exten-
sion is granted by the Secretary, the grantee shall 
submit to the Secretary a plan for approval describ-
ing— 
‘‘(A) the activities the grantee will carry 
out with the grant under this section; 
‘‘(B) the criteria of the grantee for award-
ing assistance and selecting activities; 
‘‘(C) how the use of the grant under this 
section will address disaster relief, long-term re-
covery, restoration of housing and infrastruc-
ture, economic revitalization, and mitigation in 
the most impacted and distressed areas; 
‘‘(D) how the use of the grant funds for 
mitigation is consistent with hazard mitigation 
plans submitted to the Federal Emergency 
Management Agency under section 322 of the 
Robert T. Stafford Disaster Relief and Emer-
gency Assistance Act (42 U.S.C. 5165); 
‘‘(E) the estimated amount proposed to be 
used for activities that will benefit persons of 
low and moderate income; 
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‘‘(F) how the use of grant funds will repair 
and replace existing housing stock for vulner-
able populations, including low- to moderate-in-
come households; 
‘‘(G) how the grantee will address the pri-
orities described in paragraph (5); 
‘‘(H) how uses of funds are proportional to 
unmet needs, as required under paragraph (6); 
‘‘(I) for State grantees that plan to dis-
tribute grant amounts to units of general local 
government, a description of the method of dis-
tribution; and 
‘‘(J) such other information as may be de-
termined by the Secretary in regulation. 
‘‘(2) PUBLIC CONSULTATION.—To permit pub-
lic examination and appraisal of the plan described 
in paragraph (1), to enhance the public account-
ability of grantee, and to facilitate coordination of 
activities with different levels of government, when 
developing the plan or substantial amendments pro-
posed to the plan required under paragraph (1), a 
grantee shall— 
‘‘(A) publish the plan before adoption; 
‘‘(B) provide citizens, affected units of 
general local government, and other interested 
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parties with reasonable notice of, and oppor-
tunity to comment on, the plan, with a public 
comment period of not less than 14 days; 
‘‘(C) consider comments received before 
submission to the Secretary; 
‘‘(D) follow a citizen participation plan for 
disaster assistance adopted by the grantee that, 
at a minimum, provides for participation of 
residents of the most impacted and distressed 
area affected by the major disaster that re-
sulted in the grant under this section and other 
considerations established by the Secretary; and 
‘‘(E) undertake any consultation with in-
terested parties as may be determined by the 
Secretary in regulation. 
‘‘(3) APPROVAL.—The Secretary shall— 
‘‘(A) by regulation, specify criteria for the 
approval, partial approval, or disapproval of a 
plan submitted under paragraph (1), including 
approval of substantial amendments to the 
plan; 
‘‘(B) review a plan submitted under para-
graph (1) upon receipt of the plan; 
‘‘(C) allow a grantee to revise and resub-
mit a plan or substantial amendment to a plan 
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under paragraph (1) that the Secretary dis-
approves; 
‘‘(D) by regulation, specify criteria for 
when the grantee shall be required to provide 
the required revisions to a disapproved plan or 
substantial amendment under paragraph (1) for 
public comment prior to resubmission of the 
plan or substantial amendment to the Sec-
retary; and 
‘‘(E) approve, partially approve, or dis-
approve a plan or substantial amendment under 
paragraph (1) not later than 60 days after the 
date on which the plan or substantial amend-
ment is received by the Secretary. 
‘‘(4) LOW- AND
MODERATE-INCOME
OVERALL 
BENEFIT.— 
‘‘(A) USE OF FUNDS.—Not less than 70 
percent of a grant made under this section shall 
be used for activities that benefit persons of low 
and moderate income unless the Secretary— 
‘‘(i) specifically finds that— 
‘‘(I) there is compelling need to 
reduce the percentage for the grant; 
and 
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