IIB 
116TH CONGRESS 
1ST SESSION H. R. 3702 
IN THE SENATE OF THE UNITED STATES 
NOVEMBER 19, 2019 
Received; read twice and referred to the Committee on Banking, Housing, and 
Urban Affairs 
AN ACT 
To authorize the Secretary of Housing and Urban Develop-
ment to provide disaster assistance to States, Puerto 
Rico, units of general local government, and Indian tribes 
under a community development block grant disaster re-
covery 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 of 2019’’. 
SEC. 2. COMMUNITY DEVELOPMENT BLOCK GRANT DIS-
ASTER RECOVERY PROGRAM. 
(a) IN GENERAL.—Title I of the Housing and Com-
munity Development Act of 1974 (42 U.S.C. 5301 et seq.) 
is amended by adding at the end the following new section: 
‘‘SEC. 123. CDBG-DISASTER RECOVERY ASSISTANCE. 
‘‘(a) AUTHORITY; USE.—The Secretary may provide 
assistance under this section to States, including Puerto 
Rico, units of general local government, and Indian tribes 
for necessary expenses for activities authorized under this 
title related to disaster relief, resiliency, long-term recov-
ery, restoration of infrastructure and housing, mitigation, 
and economic revitalization in the most impacted and dis-
tressed areas (as such term shall be defined by the Sec-
retary by regulation) resulting from a major disaster de-
clared pursuant to the Robert T. Stafford Disaster Relief 
and Emergency Assistance Act (42 U.S.C. 5121 et seq.). 
‘‘(b) ALLOCATION; COORDINATION.— 
‘‘(1) ALLOCATION FOR MITIGATION.—In deter-
mining the amount allocated under this section for 
any grantee, the Secretary shall include an addi-
tional amount for mitigation that is not less than 45 
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amounts allocated for a grantee, but shall require 
the grantee to be in substantial compliance with the 
requirements of this section before each such dis-
bursement. 
‘‘(5) COORDINATION
OF
DISASTER
BENEFITS 
AND DATA WITH OTHER FEDERAL AGENCIES.— 
‘‘(A) COORDINATION OF DATA.—The Sec-
retary shall coordinate with other agencies to 
obtain data on recovery needs, including the 
Administrator of the Federal Emergency Man-
agement Agency and the Administrator of the 
Small Business Administration, and other agen-
cies when necessary regarding disaster benefits. 
‘‘(B) COORDINATION
WITH
FEMA.—The 
Secretary shall share with the Administrator of 
the Federal Emergency Management Agency, 
and make publicly available, all data collected, 
possessed, or analyzed during the course of a 
disaster recovery for which assistance is pro-
vided under this section including— 
‘‘(i) all data on damage caused by the 
disaster; 
‘‘(ii) information on how any Federal 
assistance provided in connection with the 
disaster is expended; and 
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‘‘(iii) information regarding the effect 
of the disaster on education, transportation 
capabilities 
and 
dependence, 
housing 
needs, health care capacity, and displace-
ment of persons. 
‘‘(C) REQUIREMENTS
REGARDING
ELIGI-
BILITY FOR DIRECT ASSISTANCE AND DUPLICA-
TION OF BENEFITS.— 
‘‘(i) 
COMPLIANCE.—Funds 
made 
available under this subsection shall be 
used in accordance with section 312 of the 
Robert T. Stafford Disaster Relief and 
Emergency Assistance Act (42 U.S.C. 
5155), as amended by section 1210 of the 
Disaster Recovery Reform Act of 2018 (di-
vision D, Public Law 115–254), and such 
rules as may be prescribed under such sec-
tion. 
‘‘(ii) PRIORITY.—Households having 
the lowest incomes shall be prioritized for 
assistance under this subsection until all 
unmet needs are satisfied for families hav-
ing an income up to 120 percent of the 
median for the area. 
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‘‘(D) TREATMENT OF DUPLICATIVE BENE-
FITS.—In any case in which a grantee provides 
assistance that duplicates benefits available to a 
person for the same purpose from another 
source, the grantee itself shall either (i) be sub-
ject to remedies for noncompliance under sec-
tion 111, or (ii) bear responsibility for absorb-
ing such cost of duplicative benefits and return-
ing an amount equal to any duplicative benefits 
paid to the grantee’s funds available for use 
under this section or to the Community Devel-
opment Block Grant Disaster Recovery Reserve 
Fund under section 124, unless the Secretary 
issues a public determination by publication in 
the Federal Register that it is not in the best 
interest of the Federal Government to pursue 
such remedies. 
‘‘(E) PROTECTION OF PERSONALLY IDEN-
TIFIABLE INFORMATION.—In carrying out this 
paragraph, the Secretary and the grantee shall 
take such actions as may be necessary to ensure 
that personally identifiable information regard-
ing recipients of assistance provided from funds 
made available under this section is not made 
publicly available by the Department of Hous-
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ing and Urban Development or any agency with 
which information is shared pursuant to this 
paragraph. 
‘‘(c) PLAN FOR USE OF ASSISTANCE.— 
‘‘(1) REQUIREMENT.—Not later than 90 days 
after the allocation pursuant to subsection (b)(1) of 
all of the funds made available by an appropriations 
Act for assistance under this section and before the 
Secretary obligates any of such funds for a grantee, 
the grantee shall submit a plan to the Secretary for 
approval detailing the proposed use of all funds, 
which shall include, at a minimum— 
‘‘(A) criteria for eligibility for each pro-
posed use of funds, including eligibility limits 
on income and geography, and a description of 
how each proposed use of such funds will com-
ply with all civil rights and fair housing laws 
and will address unmet needs relating to dis-
aster relief, resiliency, long-term recovery, res-
toration of infrastructure and housing, mitiga-
tion, and economic revitalization in the most 
impacted and distressed areas, including assist-
ance to impacted households experiencing home-
lessness as defined by section 103 of the 
McKinney-Vento Homeless Assistance Act (42 
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U.S.C. 11302) or at risk of homelessness as de-
fined by section 401 of such Act (42 U.S.C. 
11360); 
‘‘(B) 
an 
agreement 
to 
share 
data, 
disaggregated by the smallest census tract, 
block group, or block possible for the data set, 
with Federal agencies and other providers of 
disaster relief, which shall include information 
the grantee has regarding the matters described 
in subsection (b)(4)(B); 
‘‘(C) identification of officials and offices 
responsible for administering such funds and 
processes and procedures for identifying and re-
covering duplicate benefits; and 
‘‘(D) a plan for ensuring compliance with 
the Fair Housing Act, which may include, at 
the election of the grantee, providing for part-
nerships with local fair housing organizations 
and funding set-aside for local fair housing or-
ganizations to handle complaints relating to as-
sistance with amounts made available for use 
under this section. 
‘‘(2) APPROVAL.—The Secretary shall, by regu-
lation, specify criteria for approval of plans under 
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paragraph (1), including approval of substantial 
amendments to such plans. 
‘‘(3) DISAPPROVAL.—The Secretary shall dis-
approve a plan or substantial amendment to a plan 
if— 
‘‘(A) the plan or substantial amendment 
does not meet the approval criteria; 
‘‘(B) based on damage and unmet needs 
assessments of the Secretary and the Federal 
Emergency Management Administration or 
such other information as may be available, the 
plan or amendment does not address equitable 
allocation of resources— 
‘‘(i) between infrastructure and hous-
ing activities; and 
‘‘(ii) between homeowners, renters, 
and persons experiencing homelessness; 
‘‘(C) the plan or amendment does not pro-
vide an adequate plan for ensuring that funding 
provided under this section is used in compli-
ance with the Fair Housing Act; 
‘‘(D) the plan or amendment does not 
prioritize the one-for-one replacement, with cost 
adjustment where appropriate, of damaged 
dwelling units in public housing, in projects re-
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ceiving tax credits pursuant to section 42 of the 
Internal Revenue Code of 1986, or in projects 
assisted under section 202 of the Housing Act 
of 1959 (12 U.S.C. 1701q), under section 811 
of the Cranston-Gonzalez National Affordable 
Housing Act (42 U.S.C. 8013), under the 
HOME 
Investment 
Partnerships 
Act 
(42 
U.S.C. 12721 et seq.), under the community 
development block grant program under this 
title, or by the Housing Trust Fund under sec-
tion 1338 of the Housing and Community De-
velopment Act of 1992 (12 U.S.C. 4568); or 
‘‘(E) the plan or amendment does not pro-
vide a process to provide applicants— 
‘‘(i) notice by grantee of applicant’s 
right to appeal any adverse action or inac-
tion; 
‘‘(ii) right to full discovery of appli-
cant’s entire application file; and 
‘‘(iii) right to appeal to a court of 
competent jurisdiction in the vicinage of 
the applicant’s residence at the time of the 
appeal. 
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‘‘(4) PUBLIC
CONSULTATION.—In developing 
the plan required under paragraph (1), a grantee 
shall, at a minimum— 
‘‘(A) consult with affected residents, stake-
holders, local governments, and public housing 
authorities to assess needs; 
‘‘(B) publish the plan in accordance with 
the requirements set forth by the Secretary, in-
cluding a requirement to prominently post the 
plan on the website of the grantee for not less 
than 14 days; 
‘‘(C) ensure equal access for individuals 
with disabilities and individuals with limited 
English proficiency; and 
‘‘(D) publish the plan in a manner that af-
fords citizens, affected local governments, and 
other interested parties a reasonable oppor-
tunity to examine the contents of the plan and 
provide feedback. 
‘‘(5) RESUBMISSION.—The Secretary shall per-
mit a grantee to revise and resubmit a disapproved 
plan or plan amendment. 
‘‘(6) TIMING.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
approve or disapprove a plan not later than 60 
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days after submission of the plan to the Sec-
retary. The Secretary shall immediately notify 
the applicant of the Secretary’s decision. 
‘‘(B) DISAPPROVAL.—If the Secretary dis-
approves a plan, not later than 15 days after 
such disapproval the Secretary shall inform the 
applicant in writing of (A) the reasons for dis-
approval, and (B) actions that the applicant 
could take to meet the criteria for approval. 
‘‘(C) AMENDMENTS; RESUBMISSION.—The 
Secretary shall, for a period of not less than 45 
days following the date of disapproval, permit 
amendments to, or the resubmission of, any 
plan that is disapproved. The Secretary shall 
approve or disapprove a plan amendment not 
less than 30 days after receipt of such amend-
ments or resubmission. 
‘‘(D) GRANT
AGREEMENTS.—Subject to 
subsection (b)(3), the Secretary shall ensure 
that all grant agreements necessary for prompt 
disbursement of funds allocated to a grantee 
are executed within 60 days of approval of 
grantee’s plan. 
‘‘(d) FINANCIAL CONTROLS.— 
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‘‘(1) COMPLIANCE
SYSTEM.—The Secretary 
shall develop and maintain a system to ensure that 
each grantee has and will maintain for the life of the 
grant— 
‘‘(A) proficient financial controls and pro-
curement processes; 
‘‘(B) adequate procedures to ensure that 
all eligible families and individuals are approved 
for assistance with amounts made available 
under this section and that recipients are pro-
vided the full amount of assistance for which 
they are eligible; 
‘‘(C) adequate procedures to prevent any 
duplication of benefits, as defined by section 
312 of the Robert T. Stafford Disaster Relief 
and Emergency Assistance Act (42 U.S.C. 
5155), to ensure timely expenditure of funds, 
and to detect and prevent waste, fraud, and 
abuse of funds; and 
‘‘(D) adequate procedures to ensure the 
grantee will maintain comprehensive and pub-
licly accessible websites that make available in-
formation regarding all disaster recovery activi-
ties assisted with such funds, which information 
shall include— 
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‘‘(i) full and unredacted copies of all 
requests for qualification for assistance or 
for procurement with such funds, however 
styled; 
‘‘(ii) all responses to such requests, 
subject to redactions necessary to protect 
personal or proprietary data; 
‘‘(iii) the identity of any entity that 
reviews, evaluates, scores, or otherwise in-
fluences or determines the disposition of 
such requests; 
‘‘(iv) all reports, however styled, con-
taining the reviewing individual or entity’s 
scores, findings, and conclusions regarding 
such requests; and 
‘‘(v) any resulting contract, agree-
ment, or other disposition of such requests; 
except that such procedures shall ensure 
that personally identifiable information re-
garding recipients of assistance provided 
from funds made available under this sec-
tion shall not be made publicly available. 
‘‘(2) EVALUATION OF COMPLIANCE.—The Sec-
retary shall provide, by regulation or guideline, a 
method for qualitatively and quantitatively evalu-
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ating compliance with the requirements under para-
graph (1). 
‘‘(3) CERTIFICATION.—As a condition of mak-
ing any grant, the Secretary shall certify in advance 
that the grantee has in place the processes and pro-
cedures required under subparagraphs (A) through 
(D) of paragraph (1). 
‘‘(e) USE OF FUNDS.— 
‘‘(1) ADMINISTRATIVE COSTS.— 
‘‘(A) IN GENERAL.—A State, unit of gen-
eral local government, or Indian tribe receiving 
a grant under this section may use not less 
than 7 percent and not more than 10 percent 
of the amount of grant funds received, or with-
in such other percentage as may be established 
pursuant to subparagraph (B), for administra-
tive costs and shall document the use of funds 
for such purpose in accordance with such re-
quirements as the Secretary shall establish. 
‘‘(B) DISCRETION TO ESTABLISH SLIDING 
SCALE.—The Secretary may establish a series 
of percentage limitations on the amount of 
grant funds received that may be used by a 
grantee for administrative costs, but only if— 
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‘‘(i) such percentage limitations are 
based on the amount of grant funds re-
ceived by a grantee; 
‘‘(ii) such series provides that the per-
centage that may be so used is lower for 
grantees receiving a greater amount of 
grant funds and such percentage that may 
be so used is higher for grantees receiving 
a lesser amount of grant funds; and 
‘‘(iii) in no case may a grantee so use 
more than 10 percent of grant funds re-
ceived. 
‘‘(2) LIMITATIONS ON USE.—Amounts from a 
grant under this section may not be used for activi-
ties— 
‘‘(A) that are reimbursable, or for which 
funds are made available, by the Federal Emer-
gency Management Agency, including under the 
Robert T. Stafford Disaster Relief and Emer-
gency Assistance Act or the National Flood In-
surance Program; or 
‘‘(B) for which funds are made available 
by the Army Corps of Engineers. 
‘‘(3) HUD ADMINISTRATIVE COSTS.— 
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‘‘(A) LIMITATION.—Of any funds made 
available for use under this section by any sin-
gle appropriations Act, the Secretary may use 1 
percent 
of 
any 
such 
amount 
exceeding 
$1,000,000,000 for necessary costs, including 
information technology costs, of administering 
and overseeing the obligation and expenditure 
of amounts made available for use under this 
section. 
‘‘(B) TRANSFER OF FUNDS.—Any amounts 
made available for use in accordance with sub-
paragraph (A)— 
‘‘(i) shall be transferred to the ac-
count for Program Office Salaries and Ex-
penses—Community Planning and Devel-
opment for the Department; 
‘‘(ii) shall remain available until ex-
pended; and 
‘‘(iii) may be used for administering 
any funds appropriated to the Department 
for any disaster and related purposes in 
any prior or future Act, notwithstanding 
the disaster for which such funds were ap-
propriated. 
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‘‘(4) INSPECTOR
GENERAL.—Of any funds 
made available for use in accordance with paragraph 
(3)(A), 15 percent shall be transferred to the Office 
of the Inspector General for necessary costs of au-
dits, reviews, oversight, evaluation, and investiga-
tions relating to amounts made available for use 
under this section. 
‘‘(5) CAPACITY BUILDING.—Of any funds made 
available for use under this section, not more than 
0.1 percent or $15,000,000, whichever is less, shall 
be made available to the Secretary for capacity 
building and technical assistance, including assist-
ance regarding contracting and procurement proc-
esses, to support grantees and subgrantees receiving 
funds under this section. 
‘‘(6) MITIGATION PLANNING.— 
‘‘(A) REQUIREMENT.—The Secretary shall 
require each grantee to use a fixed percentage 
of any grant funds for comprehensive mitiga-
tion planning. 
‘‘(B) AMOUNT.—Such fixed percentage 
shall not be less than 15 percent, except that 
the Secretary may by regulation establish a 
lower percentage for grantees receiving a grant 
exceeding $1,000,000,000. 
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‘‘(C) COORDINATION.—Each grantee shall 
ensure that such comprehensive mitigation 
plans are coordinated and aligned with existing 
comprehensive, land use, transportation, and 
economic development plans, and specifically 
analyze multiple types of hazard exposures and 
risks. Each grantee shall coordinate and align 
such mitigation planning with other mitigation 
projects funded by the Federal Emergency 
Management Agency, the Army Corps of Engi-
neers, the Forest Service, and other agencies as 
appropriate. 
‘‘(D) USE OF FUNDS.—Such funds may be 
used for the purchase of data and development 
or updating of risk mapping for all relevant 
hazards. 
‘‘(E) PRIORITY.—Grantees shall prioritize 
the expenditure of mitigation dollars for pro-
grams and projects primarily benefitting per-
sons of low and moderate income with the 
greatest risk of harm from natural hazards. 
‘‘(7) BUILDING SAFETY.— 
‘‘(A) IN
GENERAL.—After consultation 
with the Administrator of the Federal Emer-
gency Management Agency, the Secretary shall 
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provide that no funds made available under this 
section shall be used for installation, substantial 
rehabilitation, reconstruction, or new construc-
tion of infrastructure or residential, commercial, 
or public buildings in hazard-prone areas, un-
less construction complies with paragraph (8) 
and with the latest published editions of rel-
evant national consensus-based codes, and spec-
ifications and standards referenced therein, ex-
cept that nothing in this section shall be con-
strued to prohibit a grantee from requiring 
higher standards. 
‘‘(B) SAVINGS
PROVISION.—Nothing in 
subparagraph (A) shall be construed as a re-
quirement for a grantee to adopt the latest pub-
lished editions of relevant national consensus- 
based codes, specifications, and standards. 
‘‘(C) COMPLIANCE.—Compliance with this 
paragraph may be certified by a registered de-
sign professional. 
‘‘(D) DEFINITIONS.—For purposes of this 
paragraph, the following definitions shall apply: 
‘‘(i) 
HAZARD-PRONE
AREAS.—The 
term ‘hazard-prone areas’ means areas 
identified by the Secretary, in consultation 
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with the Administrator, at risk from nat-
ural hazards that threaten property dam-
age or health, safety, and welfare, such as 
floods (including special flood hazard 
areas), wildfires (including Wildland-Urban 
Interface areas), earthquakes, tornados, 
and high winds. The Secretary may con-
sider future risks and the likelihood such 
risks may pose to protecting property and 
health, safety, and general welfare when 
making the determination of or modifica-
tion to hazard-prone areas. 
‘‘(ii) LATEST PUBLISHED EDITIONS.— 
The term ‘latest published editions’ means, 
with respect to relevant national con-
sensus-based codes, and specifications and 
standards referenced therein, the two most 
recent published editions, including, if any, 
amendments made by State, local, tribal, 
or territorial governments during the adop-
tion process, that incorporate the latest 
natural hazard-resistant designs and estab-
lish criteria for the design, construction, 
and maintenance of structures and facili-
ties that may be eligible for assistance 
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under this section for the purposes of pro-
tecting the health, safety, and general wel-
fare of a buildings’s users against disas-
ters. 
‘‘(8) FLOOD RISK MITIGATION.— 
‘‘(A) REQUIREMENTS.—Subject to sub-
paragraph (B), the Secretary shall require that 
any structure that is located in an area having 
special flood hazards and that is newly con-
structed, for which substantial damage is re-
paired, or that is substantially improved, using 
amounts made available under this section, 
shall be elevated with the lowest floor, including 
the basement, at least two feet above the base 
flood level, except that critical facilities, includ-
ing hospitals, nursing homes, and other public 
facilities providing social and economic lifelines, 
as defined by the Secretary, shall be elevated at 
least 3 feet above the base flood elevation (or 
higher if required under paragraph (7)). 
‘‘(B) ALTERNATIVE
MITIGATION.—In the 
case of existing structures consisting of multi-
family housing and row houses, the Secretary 
shall seek consultation with the Administrator 
of the Federal Emergency Management Agency, 
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shall provide for alternative forms of mitigation 
(apart from elevation), and shall exempt from 
the requirement under subparagraph (A) any 
such structure that meets the standards for 
such an alternative form of mitigation. 
‘‘(C) DEFINITIONS.—For purposes of sub-
paragraph (A), the terms ‘area having special 
flood hazards’, ‘newly constructed’, ‘substantial 
damage’, ‘substantial improvement’, and ‘base 
flood level’ have the same meanings as under 
the Flood Disaster Protection Act of 1973 and 
the National Flood Insurance Act of 1968 (42 
U.S.C. 4001 et seq.). 
‘‘(f) 
ADMINISTRATION.—In 
administering 
any 
amounts made available for assistance under this section, 
the Secretary— 
‘‘(1) may not allow a grantee to use any such 
amounts for any purpose other than the purpose 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 
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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-
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 
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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. 
‘‘(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 
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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). 
‘‘(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-
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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 
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, 
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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, 
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 
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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-
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, 
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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 
of assistance provided from funds made available 
under this section shall not made publicly available. 
‘‘(4) AUDITS AND OVERSIGHT.—In conducting 
audits, reviews, oversight, evaluation, and 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 
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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 
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 
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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 
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 1 year 
from the date of enactment. The Secretary may re-
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vise 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-
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 
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‘‘(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. 
‘‘(B) EFFECT
OF
PRE-CERTIFICATION.— 
Pre-certification pursuant to this subsection 
shall not— 
‘‘(i) establish any entitlement to, or 
priority or preference for, allocation of 
funds made available under this section; or 
‘‘(ii) exempt any grantee from com-
plying with any of the requirements under, 
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or established pursuant to, subsection (c) 
or (d). 
‘‘(4) DURATION.—Pre-certification under this 
subsection shall be effective for a term of 10 years. 
‘‘(o) DEPOSIT OF UNUSED AMOUNTS IN FUND.— 
‘‘(1) IN GENERAL.—If any amounts made avail-
able for assistance under this section to grantees re-
main unexpended upon the earlier of— 
‘‘(A) the date that the grantee of such 
amounts notifies the Secretary that the grantee 
has completed all activities identified in the 
grantee’s plan for use of such amounts that was 
approved by the Secretary in connection with 
such grant; or 
‘‘(B) the expiration of the 6-year period 
beginning upon the Secretary obligating such 
amounts to the grantee, as such period may be 
extended pursuant to paragraph (2); 
the Secretary may, subject to authority provided in 
advance by appropriations Acts, transfer such unex-
pended 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 
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regulation, permit the grantee to retain amounts 
needed to close out the grant. 
‘‘(2) EXTENSION
OF
PERIOD
FOR
USE
OF 
FUNDS.— 
‘‘(A) IN
GENERAL.—The period under 
paragraph (1)(B) shall be extended by not more 
than 4 years if, before the expiration of such 6- 
year period, the Secretary waives this require-
ment and submits a written justification for 
such waiver to the Committees on Appropria-
tions of the House of Representatives and the 
Senate that specifies the period of such exten-
sion. 
‘‘(B) INSULAR
AREA.—For any amounts 
made available for assistance under this section 
to a grantee that is an insular area as specified 
in section 107(b)(1), the Secretary may extend 
the waiver period under subparagraph (A) by 
not more than an additional 4 years, and shall 
provide additional technical assistance to help 
increase capacity within the insular area receiv-
ing such extension. If the Secretary extends the 
waiver period pursuant to this subparagraph, 
the Secretary shall submit a written justifica-
tion for such extension to the Committees on 
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Appropriations of the House of Representatives 
and the Senate that specifies the period of such 
extension. 
‘‘(p) DEFINITIONS.—For purposes of this section: 
‘‘(1) GRANTEE.—The term ‘grantee’ means a 
recipient of funds made available under this section 
after its enactment. 
‘‘(2) SUBSTANTIALLY SIMILAR.—The term ‘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. 
‘‘(3) OTHER TERMS.—Within 1 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 
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