Title: Reforming Disaster Recovery Act of 2017
Policy area: Housing and Community Development

Summary:
Reforming Disaster Recovery Act of 2017
This bill provides statutory authority for certain procedures related to the Community Development Block Grant Disaster Recovery Program and adds new program requirements, including with respect to coordination of benefits, precertification for grant assistance, and allocation of grant funds.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4557 Introduced in House (IH)]

<DOC>






115th CONGRESS
  1st Session
                                H. R. 4557

To authorize the Secretary of Housing and Urban Development to provide 
 disaster assistance to States and units of general government under a 
 community development block grant disaster recovery program, and for 
                            other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            December 5, 2017

 Mrs. Wagner introduced the following bill; which was referred to the 
                    Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
To authorize the Secretary of Housing and Urban Development to provide 
 disaster assistance to States and units of general government under a 
 community development block grant disaster recovery program, and for 
                            other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Reforming Disaster Recovery Act of 
2017''.

SEC. 2. COMMUNITY DEVELOPMENT BLOCK GRANT DISASTER RECOVERY PROGRAM.

    (a) In General.--Title I of the Housing and Community 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 and units of general local government for 
necessary expenses for activities authorized under this title related 
to disaster relief, long-term recovery, restoration of infrastructure 
and housing, and economic revitalization in the most impacted and 
distressed areas resulting from a major disaster declared pursuant to 
the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 
U.S.C. 5121 et seq.).
    ``(b) Direct Assistance.--Assistance shall be awarded directly to 
States and units of general local government at the discretion of the 
Secretary.
    ``(c) Plan for Use of Assistance.--
            ``(1) Requirement.--Before obligating any funds made 
        available under this section, a grantee shall submit a plan to 
        the Secretary for approval detailing the proposed use of all 
        funds, which shall include--
                    ``(A) criteria for eligibility and how the use of 
                such funds will address long-term recovery and 
                restoration of infrastructure and housing and economic 
                revitalization in the most impacted and distressed 
                areas;
                    ``(B) identification of officials and offices 
                responsible for identifying and recovering duplicate 
                benefits; and
                    ``(C) an agreement to share data with Federal 
                agencies and other providers of disaster relief.
            ``(2) Approval; disapproval.--The Secretary shall, by 
        regulations issued under section 2(b) of the Reforming Disaster 
        Recovery Act of 2017, specify criteria for approval of plans 
        under paragraph (1), and, if the Secretary determines that a 
        plan does not meet such criteria, the Secretary shall 
        disapprove the plan.
    ``(d) Timing.--
            ``(1) Deadline for allocation of amounts.--Within 60 days 
        after the enactment of an Act making funds available for 
        assistance under this section, the Secretary shall allocate to 
        grantees all funds provided for assistance under this section 
        based on the best available data.
            ``(2) Coordination with sba assistance.--The Secretary may 
        not allocate any amounts made available for assistance under 
        this section for, or provide any grant amounts to, any State or 
        unit of general local government that does not provide such 
        assurances as the Secretary may require that such State or unit 
        of general local government has required its grantees of 
        assistance received under this section to apply to the Small 
        Business Administration for disaster loan programs administered 
        by such Administration for which such grantee is eligible. The 
        Secretary shall consult with the Administrator of the Small 
        Business Administration in carrying out this paragraph.
    ``(e) Financial Controls.--
            ``(1) Certification.--As a condition of making any grant, 
        the Secretary shall certify in advance that the grantee has in 
        place proficient financial controls and procurement processes 
        and has established 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, to 
        maintain comprehensive websites regarding all disaster recovery 
        activities assisted with such funds, and to detect and prevent 
        waste, fraud, and abuse of funds.
            ``(2) Review of performance.--In exercising the Secretary's 
        obligation and responsibility to review a grantees's 
        performance, the maximum feasible deference standard under 
        section 570.480(c) of the Secretary's regulations (24 C.F.R. 
        570.480(c)) shall not apply to a grantee's interpretation of 
        the statutory and regulatory requirements.
    ``(f) Use of Funds.--
            ``(1) Grantee and subgrantee administrative costs.--A State 
        or unit of general local government receiving a grant under 
        this section, and a grantee or subgrantee of such a State or 
        unit of general local government, may use not more than 5 
        percent of the amount of grant funds received for 
        administrative costs.
            ``(2) Limitation on use.--Amounts from a grant under this 
        section may not be used for activities reimbursable by, or for 
        which funds are made available by, the Federal Emergency 
        Management Agency, the Army Corps of Engineers, or the Small 
        Business Administration.
            ``(3) HUD administrative costs.--Of any funds made 
        available for use under this section, 5 percent may be used, in 
        aggregate, by the Secretary for necessary costs, including 
        information technology costs, of administering and overseeing 
        the obligation and expenditure of amounts made available for 
        use under this section.
            ``(4) Inspector general.--Of any funds made available for 
        use under this section, 0.5 percent shall be transferred to the 
        Office of the Inspector General for necessary costs of audits, 
        reviews, oversight, evaluation, and investigations relating to 
        amounts made available for use under this section.
            ``(5) Independent monitors.--The Secretary shall require 
        each grantee and subgrantee that receives $10,000,000 or more, 
        in the aggregate, of assistance made available under this 
        section to maintain an independent party to monitor compliance 
        with this section and the regulations issued to carry out this 
        section and any applicable State laws, regulations, and 
        requirements. The costs of providing such an independent 
        monitor shall be considered administrative costs for purposes 
        of this section.
    ``(g) Administration.--In administering any amounts made available 
for assistance under this section, the Secretary--
            ``(1) may not allow a grantee to use any such amounts for 
        any purpose other than the purpose originally approved by the 
        Secretary in the plan submitted under subsection (c)(1) to the 
        Secretary for use of such amounts, including by any change to 
        the grant agreement;
            ``(2) shall require each grantee to notify the Secretary in 
        writing, immediately upon completion of all activities 
        identified in the grantee's plan for use of such amounts that 
        was approved by the Secretary in connection with such grant, 
        that all such activities have been completed;
            ``(3) shall not make the full amount allocated for a 
        grantee available to such grantee in a single grant, but shall 
        make such amount available through drawdowns from an account 
        established on behalf of the grantee by the Secretary;
            ``(4) shall require each grantee to administer grant funds 
        in accordance with all applicable laws and regulations; and
            ``(5) shall prohibit a grantee from delegating, by contract 
        or otherwise, the responsibility for administering grant funds.
    ``(h) Subgrantees.--
            ``(1) Applicability of grantee standards and procedures.--
        The Secretary shall apply to subgrantees of grantees of 
        assistance under this section the same standards and procedures 
        for contracting, procurement, and oversight that apply to such 
        grantees.
            ``(2) Training for grant management.--The Secretary shall--
                    ``(A) require each grantee to provide training to 
                all subgrantees regarding requirements for grant 
                management, including eligibility standards, financial 
                management, procurement and recordkeeping; and
                    ``(B) require each subgrantee to certify, upon 
                execution of the subgrant agreement, that the 
                subgrantee has received such training.
    ``(i) Procurement.--
            ``(1) Standards and procedures.--Notwithstanding section 
        200.317 of title 2, Code of Federal Regulations (2 C.F.R. 
        200.317), each State or unit of general government that 
        receives a grant under this section shall adopt and comply with 
        sections 200.318 through 200.326 of title 2, Code of Federal 
        Regulations (2 C.F.R. 200.318-200.326), and each such State or 
        unit of general government shall require subgrantees to comply 
        with such sections.
            ``(2) Cost/price analysis.--In procurement of products and 
        services using amounts from a grant under this section, 
        including through modification of a contract, the Secretary 
        shall require each State and unit of general government 
        receiving a grant under this section to perform a cost or price 
        analysis, which shall involve conducting an independent cost 
        estimate before any bids or proposals are received.
            ``(3) Technical assistance.--The Secretary shall provide 
        grantees with technical assistance on contracting and 
        procurement processes and shall require grantees, in 
        contracting or procuring these funds, to incorporate 
        performance requirements and penalties into any such contracts 
        or agreements.
    ``(j) Treatment of CDBG Allocations.--Amounts made available for 
use under this section shall not be considered relevant to the non-
disaster formula allocations made pursuant to section 106 (42 U.S.C. 
5306).
    ``(k) Waivers.--
            ``(1) Authority.--Subject to the other provisions 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 
        obligation 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) if the 
        Secretary finds that good cause exists for the waiver or 
        alternative requirement and such waiver or alternative 
        requirement would not be inconsistent with the overall purpose 
        of this title.
            ``(2) Notice and publication.--Any waiver of or alternative 
        requirement pursuant to paragraph (1) shall not take effect 
        before the expiration of the 30-day period beginning upon the 
        later of--
                    ``(A) the provision of written notification of such 
                waiver or alternative requirement to the Congress; or
                    ``(B) the publication of notice in the Federal 
                Register of such waiver or alternative requirement.
            ``(3) Low- and moderate-income use.--A waiver pursuant to 
        paragraph (1) may not reduce the percentage of funds that must 
        be used for activities that benefit persons of low and moderate 
        income to less than 50 percent, unless the Secretary 
        specifically finds that there is compelling need to further 
        reduce the percentage requirement.
            ``(4) Prohibition.--The Secretary may not waive any 
        provision of this section pursuant to the authority under 
        paragraph (1).
    ``(l) Environmental Review.--
            ``(1) Adoption.--Notwithstanding subsection (l)(1), 
        recipients of funds provided under this heading that use such 
        funds to supplement Federal assistance provided under section 
        402, 403, 404, 406, 407, or 502 of the Robert T. Stafford 
        Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et 
        seq.) may adopt, without review or public comment, any 
        environmental review, approval, or permit performed by a 
        Federal agency, and such adoption shall satisfy the 
        responsibilities of the recipient with respect to such 
        environmental review, approval, or permit under section 
        104(g)(1) of this Act (42 U.S.C. 5304(g)(1)).
            ``(2) Release of funds.--Notwithstanding section 104(g)(2) 
        of this Act (42 U.S.C. 5304(g)(2)), the Secretary may, upon 
        receipt of a request for release of funds and certification, 
        immediately 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 categorically excluded from review under the 
        National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
        seq.).
    ``(m) Deposit of Unused Amounts in Fund.--
            ``(1) In general.--Except as provided in paragraph (3), if 
        any amounts made available for assistance under this section 
        remain unobligated upon the earlier of--
                    ``(A) the date that the grantee of such amounts 
                notifies the Secretary, pursuant to subsection (g)(2) 
                of this section, that the 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 5-year period beginning 
                upon the enactment of the Act making such amounts 
                available, as such period may be extended pursuant to 
                paragraph (2),
        upon such date or expiration, as applicable, the Secretary 
        shall transfer such unobligated amounts to the Secretary of the 
        Treasury and the Secretary of the Treasury shall cover any such 
        amounts into the Community Development Block Grant Disaster 
        Recovery Reserve Fund established under section 124.
            ``(2) Extension of period for use of funds.--The period 
        under paragraph (1)(B)--
                    ``(A) shall be extended by 2 years if, before the 
                expiration of such 5-year period, the Secretary causes 
                to be published in the Federal Register notification 
                that such 2-year extension is necessary to allow the 
                grantee to complete all activities identified in the 
                grantee's plan for use of such amounts that was 
                approved by the Secretary in connection with such 
                grant; and
                    ``(B) as extended pursuant to subparagraph (A), may 
                be extended for an additional period not to exceed 3 
                years if, before the expiration of such 2-year period 
                under subparagraph (A), the Director of the Office of 
                Management and Budget, upon a request by the Secretary, 
                causes to be published in the Federal Register 
                notification that such additional extension period is 
                necessary to allow the grantee to complete all such 
                activities.
            ``(3) Exemption for amounts for hud ig.--Paragraphs (1) and 
        (2) shall not apply to amounts made available to the Inspector 
        General of the Department of Housing and Urban Development.

``SEC. 124. COMMUNITY DEVELOPMENT BLOCK GRANT DISASTER 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 Recovery Reserve Fund (in this section referred to as 
the `Fund').
    ``(b) Amounts.--The Fund shall consist of any amounts appropriated 
to or credited to the Fund, including amounts credited to the Fund 
pursuant to section 123(n).
    ``(c) Use.--Amounts in the Fund shall be available only for 
providing assistance under section 123, but only to the extent provided 
in advance in appropriations Acts.''.
    (b) Regulations.--
            (1) In general.--Not later than the expiration of the 12-
        month period beginning on the date of the enactment of this 
        Act, the Secretary of Housing and Urban Development shall issue 
        regulations to carry out sections 123 and 124 of the Housing 
        and Community Development Act of 1974, as added by the 
        amendment made by subsection (a) of this section.
            (2) Interim regulations.--
                    (A) Applicability of cdbg entitlement community 
                regulations.--Until the regulations issued pursuant to 
                paragraph (1) take effect, the Secretary of Housing and 
                Urban Development shall require each State grantee of 
                assistance from community development block grant 
                disaster recovery funds to comply with the requirements 
                under part 570 of the Secretary's regulations (24 
                C.F.R. 570) applicable to entitlement communities.
                    (B) Waiver.--The authority under section 123(k) of 
                the Housing and Community Development Act of 1974 
                (relating to waiver of, and alternative requirements 
                for provisions of statutes and regulations), as added 
                by the amendment made by subsection (a) of this 
                section, shall not apply with respect to the 
                requirement under subparagraph (A) of this paragraph, 
                except that the Secretary may use such authority with 
                respect to regulations specified in subparagraph (A) 
                (only to the extent of the applicability of such 
                regulations pursuant to subparagraph (A)), on a case-
                by-case and disaster-by-disaster basis.
            (3) Definition.--For purposes of this subsection, the term 
        ``community development block grant disaster recovery funds'' 
        means any amounts made available in any fiscal year--
                    (A) for assistance under section 123 of the Housing 
                and Community Development Act of 1974, as added by the 
                amendment made by subsection (a) of this section; or
                    (B) under the account entitled ``Department of 
                Housing and Urban Development--Community Planning and 
                Development--Community Development Fund'' for 
                activities authorized under title I of the Housing and 
                Community Development Act of 1974 (42 U.S.C. 5301 et 
                seq.) related to disaster relief, long-term recovery, 
                restoration of infrastructure and housing, or economic 
                revitalization in areas affected by a major disaster 
                declared pursuant to the Robert T. Stafford Disaster 
                Relief and Emergency Assistance Act (42 U.S.C. 5121 et 
                seq.).
                                 <all>