‘‘(II) the housing needs of low- 
and moderate-income persons have 
been addressed; and 
‘‘(ii) issues a waiver and alternative 
requirement specific to the grant pursuant 
to subsection (i) to lower the percentage. 
‘‘(B) REGULATIONS.—The Secretary shall, 
by regulation, establish protocols consistent 
with the findings of section 2 of the Reforming 
Disaster Recovery Act to prioritize the use of 
funds by a grantee under this section to meet 
the needs of low- and moderate-income persons 
and businesses serving primarily persons of low 
and moderate income. 
‘‘(5) 
PRIORITIZATION.—The 
grantee 
shall 
prioritize activities that— 
‘‘(A) assist persons with extremely low-, 
low-, and moderate-incomes and other vulner-
able populations to better recover from and 
withstand future disasters, emphasizing those 
with the most severe needs; 
‘‘(B) address affordable housing, including 
affordable rental housing, needs arising from a 
disaster, or those needs present prior to a dis-
aster; 
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‘‘(C) prolong the life of housing and infra-
structure; 
‘‘(D) use cost-effective means of preventing 
harm to people and property and incorporate 
protective features, redundancies, and energy 
savings; and 
‘‘(E) other measures that will assure the 
continuation of critical services during future 
disasters. 
‘‘(6) PROPORTIONAL ALLOCATION.— 
‘‘(A) IN GENERAL.—A grantee under this 
section shall allocate grant funds proportional 
to unmet needs between housing activities, eco-
nomic revitalization, and infrastructure, unless 
the Secretary— 
‘‘(i) specifically finds that— 
‘‘(I) there is a compelling need 
for a disproportional allocation among 
those unmet needs; and 
‘‘(II) the disproportional alloca-
tion described in subclause (I) is not 
inconsistent with the requirements 
under paragraph (4); and 
‘‘(ii) issues a waiver and alternative 
requirement pursuant to subsection (i) to 
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allow for the disproportional allocation de-
scribed in clause (i)(I). 
‘‘(B) HOUSING ACTIVITIES.—With respect 
to housing activities described in subparagraph 
(A)(i), grantees should address proportional 
needs between homeowners and renters, includ-
ing low-income households in public housing 
and Federally subsidized housing. 
‘‘(7) DISASTER RISK MITIGATION.— 
‘‘(A) DEFINITION.—In this paragraph, the 
term ‘hazard-prone areas’— 
‘‘(i) means areas identified by the 
Secretary, in consultation with the Admin-
istrator of the Federal Emergency Man-
agement Agency, at risk from natural haz-
ards that threaten property damage or 
health, safety, and welfare, such as floods, 
wildfires (including Wildland-Urban Inter-
face areas), earthquakes, lava inundation, 
tornados, and high winds; and 
‘‘(ii) includes areas having special 
flood hazards as identified under the Flood 
Disaster Protection Act of 1973 (42 
U.S.C. 4002 et seq.) or the National Flood 
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Insurance Act of 1968 (42 U.S.C. 4001 et 
seq.). 
‘‘(B) HAZARD-PRONE
AREAS.—The Sec-
retary, in consultation with the Administrator 
of the Federal Emergency Management Agency, 
shall establish minimum construction standards, 
insurance purchase requirements, and other re-
quirements for the use of grant funds in haz-
ard-prone areas. 
‘‘(C) SPECIAL FLOOD HAZARDS.— 
‘‘(i) IN GENERAL.—For the areas de-
scribed in subparagraph (A)(ii), the insur-
ance purchase requirements established 
under subparagraph (B) shall meet or ex-
ceed the requirements under section 102(a) 
of the Flood Disaster Protection Act of 
1973 (42 U.S.C. 4012a(a)). 
‘‘(ii) TREATMENT AS FINANCIAL AS-
SISTANCE.—All grants under this section 
shall be treated as financial assistance for 
purposes of section 3(a)(3) of the Flood 
Disaster Protection Act of 1973 (42 
U.S.C. 4003(a)(3)). 
‘‘(D) 
CONSIDERATION
OF
FUTURE 
RISKS.—The Secretary may consider future 
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risks to protecting property and health, safety, 
and general welfare, and the likelihood of those 
risks, when making the determination of or 
modification to hazard-prone areas under this 
paragraph. 
‘‘(8) RELOCATION.— 
‘‘(A) IN GENERAL.—The Uniform Reloca-
tion Assistance and Real Property Acquisition 
Policies Act of 1970 (42 U.S.C. 4601 et seq.) 
shall apply to activities assisted under this sec-
tion to the extent determined by the Secretary 
in regulation, or as provided in waivers or alter-
native requirements authorized in accordance 
with subsection (i). 
‘‘(B) POLICY.—Each grantee under this 
section shall establish a relocation assistance 
policy that— 
‘‘(i) minimizes displacement and de-
scribes the benefits available to persons 
displaced as a direct result of acquisition, 
rehabilitation, or demolition in connection 
with an activity that is assisted by a grant 
under this section; and 
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‘‘(ii) includes any appeal rights or 
other requirements that the Secretary es-
tablishes by regulation. 
‘‘(d) CERTIFICATIONS.—Any grant under this section 
shall be made only if the grantee certifies to the satisfac-
tion of the Secretary that— 
‘‘(1) the grantee is in full compliance with the 
requirements under subsection (c)(2); 
‘‘(2) for grants other than grants to Indian 
tribes, the grant will be conducted and administered 
in conformity with the Civil Rights Act of 1964 (42 
U.S.C. 2000a et seq.) and the Fair Housing Act (42 
U.S.C. 3601 et seq.); 
‘‘(3) the projected use of funds has been devel-
oped so as to give maximum feasible priority to ac-
tivities that will benefit extremely low-, low-, and 
moderate-income families and activities described in 
subsection (c)(5), and may also include activities 
that are designed to aid in the prevention or elimi-
nation of slum and blight to support disaster recov-
ery, meet other community development needs hav-
ing a particular urgency because existing conditions 
pose a serious and immediate threat to the health or 
welfare of the community where other financial re-
sources are not available to meet such needs, and al-
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leviate future threats to human populations, critical 
natural resources, and property that an analysis of 
hazards shows are likely to result from natural dis-
asters in the future; 
‘‘(4) the grant funds shall principally benefit 
persons of low and moderate income as described in 
subsection (c)(4); 
‘‘(5) for grants other than grants to Indian 
Tribes, within 24 months of receiving a grant or at 
the time of its 3- or 5-year update, whichever is 
sooner, the grantee will review and make modifica-
tions to its non-disaster housing and community de-
velopment plans and strategies required by sub-
sections (c) and (m) of section 104 to reflect the dis-
aster recovery needs identified by the grantee and 
consistency with the plan under subsection (c)(1); 
‘‘(6) the grantee will not attempt to recover any 
capital costs of public improvements assisted in 
whole or part under this section by assessing any 
amount against properties owned and occupied by 
persons of low and moderate income, including any 
fee charged or assessment made as a condition of 
obtaining access to such public improvements, un-
less— 
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‘‘(A) funds received under this section are 
used to pay the proportion of such fee or as-
sessment that relates to the capital costs of 
such public improvements that are financed 
from revenue sources other than under this 
chapter; or 
‘‘(B) for purposes of assessing any amount 
against properties owned and occupied by per-
sons of moderate income, the grantee certifies 
to the Secretary that the grantee lacks suffi-
cient funds received under this section to com-
ply with the requirements of subparagraph (A); 
‘‘(7) the grantee will comply with the other pro-
visions of this title that apply to assistance under 
this section and with other applicable laws; 
‘‘(8) the grantee will follow a relocation assist-
ance policy that includes any minimum requirements 
identified by the Secretary; and 
‘‘(9) the grantee will adhere to construction 
standards, insurance purchase requirements, and 
other requirements for development in hazard-prone 
areas described in subsection (c)(7). 
‘‘(e) PERFORMANCE REVIEWS AND REPORTING.— 
‘‘(1) IN GENERAL.—The Secretary shall, on not 
less frequently than an annual basis, make such re-
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views and audits as may be necessary or appropriate 
to determine whether a grantee under this section 
has— 
‘‘(A) carried out activities using grant 
funds in a timely manner; 
‘‘(B) met the performance targets estab-
lished by paragraph (2); 
‘‘(C) carried out activities using grant 
funds in accordance with the requirements of 
this section, the other provisions of this title 
that apply to assistance under this section, and 
other applicable laws; and 
‘‘(D) a continuing capacity to carry out ac-
tivities in a timely manner. 
‘‘(2) PERFORMANCE TARGETS.—The Secretary 
shall develop and make publicly available critical 
performance targets for review, which shall include 
spending thresholds for each year from the date on 
which funds are obligated by the Secretary to the 
grantee until such time all funds have been ex-
pended. 
‘‘(3) FAILURE TO MEET TARGETS.— 
‘‘(A) SUSPENSION.—If a grantee under 
this section fails to meet 1 or more critical per-
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formance targets under paragraph (2), the Sec-
retary may temporarily suspend the grant. 
‘‘(B) 
PERFORMANCE
IMPROVEMENT 
PLAN.—If the Secretary suspends a grant 
under subparagraph (A), the Secretary shall 
provide to the grantee a performance improve-
ment plan with the specific requirements needed 
to lift the suspension within a defined time pe-
riod. 
‘‘(C) REPORT.—If a grantee fails to meet 
the spending thresholds established under para-
graph (2), the grantee shall submit to the Sec-
retary, the appropriate committees of Congress, 
and each member of Congress who represents a 
district or State of the grantee a written report 
identifying technical capacity, funding, or other 
Federal or State impediments affecting the abil-
ity of the grantee to meet the spending thresh-
olds. 
‘‘(4) COLLECTION OF INFORMATION AND RE-
PORTING.— 
‘‘(A) 
REQUIREMENT
TO
REPORT.—A 
grantee under this section shall provide to the 
Secretary such information as the Secretary 
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may determine necessary for adequate oversight 
of the grant program under this section. 
‘‘(B) PUBLIC
AVAILABILITY.—Subject to 
subparagraph (D), the Secretary shall make in-
formation submitted under subparagraph (A) 
available to the public and to the Inspector 
General for the Department of Housing and 
Urban Development, disaggregated by activity, 
income, geography, and all classes of individuals 
protected under section 109 and the Fair Hous-
ing Act. 
‘‘(C) SUMMARY STATUS REPORTS.—To in-
crease transparency and accountability of the 
grant program under this section the Secretary 
shall, on not less frequently than an annual 
basis, post on a public facing dashboard sum-
mary status reports for all active grants under 
this section that includes— 
‘‘(i) the status of funds by activity; 
‘‘(ii) the percentages of funds allo-
cated and expended to benefit low- and 
moderate-income communities; 
‘‘(iii) performance targets, spending 
thresholds, and accomplishments; and 
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