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

Summary:
Reforming Disaster Recovery Act
This bill addresses the response of the Department of Housing and Urban Development (HUD) to disasters.
The bill establishes the Office of Disaster Management and Resiliency at HUD to coordinate HUD disaster preparedness and response responsibilities. The office must also coordinate with other federal agencies in supporting recovery and resiliency activities.
Further, the bill creates the Long-Term Disaster Recovery Fund to fund the Community Development Block Grant Disaster Recovery Program. The program must provide states, tribes, and communities with grants for rebuilding affordable housing and infrastructure after a disaster. Grantees are required to certify that funds will be administered in compliance with specified fair housing and civil rights laws. Grantees must also prioritize assistance for extremely low-, low-, and moderate-income victims of disasters, as well as other vulnerable groups.
The bill also provides for increased data sharing regarding disasters, including by requiring HUD to share data with other federal agencies regarding disaster benefits and by requiring the Federal Emergency Management Agency (FEMA) and the Small Business Administration to share data on disaster benefit applicants with HUD.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 2471 Introduced in Senate (IS)]

<DOC>






117th CONGRESS
  1st Session
                                S. 2471

   To establish a community disaster assistance fund for housing and 
  community development and to authorize the Secretary of Housing and 
   Urban Development to provide, from the fund, assistance through a 
 community development block grant disaster recovery program, and for 
                            other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 26, 2021

    Mr. Schatz (for himself, Ms. Collins, Mr. Young, Mr. Leahy, Mr. 
 Cassidy, and Mr. Wyden) introduced the following bill; which was read 
  twice and referred to the Committee on Banking, Housing, and Urban 
                                Affairs

_______________________________________________________________________

                                 A BILL


 
   To establish a community disaster assistance fund for housing and 
  community development and to authorize the Secretary of Housing and 
   Urban Development to provide, from the fund, assistance through 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''.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) following a major disaster declared by the President 
        under section 401 of the Robert T. Stafford 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 
        environmental obstacles to recovery, including insufficient 
        public and private resources to address disaster-related 
        housing and community development needs for lower income 
        households and distressed communities;
            (2) unmet disaster recovery needs, including housing 
        assistance needs, can be especially widespread among persons 
        with extremely low, low, and moderate incomes;
            (3) economic, social, and housing hardships that affect 
        communities before disasters are exacerbated during crises and 
        can delay and complicate long-term recovery, especially after 
        catastrophic major disasters;
            (4) States, units of local government, and Indian 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 revitalization, primarily for the benefit of low- and 
        moderate-income persons;
            (6) undertaking activities that mitigate the effects of 
        future natural disasters and extreme weather and increase the 
        stock of affordable housing, including 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 resilience; and
            (7) the general welfare and security of the nation and the 
        health and living standards of its people require targeted 
        resources to support State and local governments in carrying 
        out their responsibilities in disaster recovery and mitigation 
        through interim and long-term housing and community development 
        activities that primarily benefit persons of low and moderate 
        income.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Department.--The term ``Department'' means the 
        Department of Housing and Urban Development.
            (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 Department shall 
be responsible for--
            (1) leading and coordinating the disaster-related 
        responsibilities of the Department under the National Response 
        Framework, the National Disaster Recovery Framework, and the 
        National Mitigation Framework;
            (2) coordinating and administering programs, policies, and 
        activities of the Department related to disaster relief, long-
        term recovery, resiliency, and mitigation, including disaster 
        recovery assistance under title I of the Housing and Community 
        Development Act of 1974 (42 U.S.C. 5301 et seq.);
            (3) supporting disaster-impacted communities as those 
        communities specifically assess, plan for, and address the 
        housing stock and housing needs in the transition from 
        emergency shelters and interim housing to permanent housing of 
        those displaced, especially among vulnerable populations and 
        extremely low-, low-, and moderate-income households;
            (4) collaborating with the Federal Emergency Management 
        Agency, the Small Business Administration, and across the 
        Department to align disaster-related regulations and policies, 
        including incorporation of consensus-based codes and standards 
        and insurance purchase requirements, and ensuring coordination 
        and reducing duplication among other Federal disaster recovery 
        programs;
            (5) promoting best practices in mitigation and land use 
        planning, including consideration of traditional, natural, and 
        nature-based infrastructure alternatives;
            (6) coordinating technical assistance, including 
        mitigation, resiliency, and recovery training and information 
        on all relevant legal and regulatory requirements, to entities 
        that receive disaster recovery assistance under title I of the 
        Housing and Community Development Act of 1974 (42 U.S.C. 5301 
        et seq.) that demonstrate capacity constraints; and
            (7) supporting State, Tribal, and local governments 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 Department of Housing and Urban 
Development Act (42 U.S.C. 3533) is amended by adding at the end the 
following:
    ``(i) Office of Disaster Management and Resiliency.--
            ``(1) Establishment.--There is established, in the Office 
        of the Secretary, the Office of Disaster Management and 
        Resiliency.
            ``(2) Duties.--The Office of Disaster Management and 
        Resiliency shall--
                    ``(A) be responsible for oversight and coordination 
                of all departmental disaster preparedness and response 
                responsibilities; and
                    ``(B) coordinate with the Federal Emergency 
                Management Agency, the Small Business Administration, 
                and the Office of Community Planning and Development 
                and other offices of the Department in supporting 
                recovery and resilience 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 transferred to the 
        Fund:
                    (A) Amounts made available through section 
                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 recaptured 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, including necessary 
                salaries and expenses, information technology, capacity 
                building and technical 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--Community 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 described in 
                paragraph (1)(B) and for the administrative costs of 
                administering any 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) in any Act before the establishment of 
                the Fund.
    (d) Interchangeability of Prior Administrative Amounts.--Any 
amounts appropriated in any Act prior to the establishment of the Fund 
and transferred to the account under the heading ``Program Offices 
Salaries and Expenses--Community Planning and Development'', 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 administering 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 appropriated, transferred and 
credited to the Fund shall remain 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 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 
                        redesignated, by inserting ``or (B)'' after 
                        ``subparagraph (A)''; and
                            (iii) by inserting after subparagraph (A) 
                        the following:
                    ``(B) The term `persons of extremely low income' 
                means families and individuals whose income levels do 
                not exceed household income levels determined 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 provide 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 meaning 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 President 
                        under the Robert T. Stafford Disaster Relief 
                        and Emergency Assistance Act'';
                            (ii) inserting ``States for use in 
                        nonentitlement areas and to'' before 
                        ``metropolitan cities''; and
                            (iii) inserting ``major'' after ``affected 
                        by the'';
                    (B) in subparagraph (C)--
                            (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 
                        ``disaster'';
                    (C) in subparagraph (D), by striking ``metropolitan 
                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 
                        ``disaster''; and
                    (E) in subparagraph (G), by striking ``metropolitan 
                city or'' and inserting ``State, metropolitan city, 
                or''; and
            (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:

``SEC. 123. COMMUNITY DEVELOPMENT BLOCK GRANT DISASTER RECOVERY 
              PROGRAM.

    ``(a) Authorization, Formula, and Allocation.--
            ``(1) Authorization.--The Secretary is authorized 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 administration 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.--
                    ``(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 estimate of unmet needs related to 
                housing, economic revitalization, and infrastructure in 
                the most impacted and distressed areas resulting from a 
                catastrophic major disaster.
                    ``(B) Public comment.--In the notice issued under 
                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 methodologies 
                        on rural areas and Tribal areas;
                            ``(iii) adjustments to improve targeting to 
                        the most serious needs;
                            ``(iv) objective criteria for grantee 
                        capacity and concentration of damage to inform 
                        grantee determinations and minimum allocation 
                        thresholds; and
                            ``(v) research and data to inform an 
                        additional amount to be provided for mitigation 
                        depending on type of disaster, which shall be 
                        no 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 assistance 
                from the Fund to the most impacted and distressed areas 
                resulting from a catastrophic major disaster.
                    ``(B) Formula requirements.--The formula 
                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 encompassing data that the 
                        Secretary determines are adequate to assess 
                        relative impact and distress across geographic 
                        areas;
                            ``(ii) include a methodology for 
                        identifying 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 
                        resulting from the catastrophic major disaster 
                        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, primarily for the 
                        benefit of low- and moderate-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 threshold.--The Secretary 
                shall, by regulation, establish a minimum allocation 
                threshold.
                    ``(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 available 
                        data to determine whether the major disaster is 
                        catastrophic and qualifies for assistance under 
                        the formula in paragraph (4) or (5), unless 
                        data is insufficient to make this 
                        determination; and
                            ``(ii) if the best available data is 
                        insufficient 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 qualifies 
                        when sufficient data becomes available, but in 
                        no case shall the Secretary 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 assistance under the formula in paragraph 
                (4) or (5), the Secretary shall immediately announce an 
                allocation for a grant under this section.
                    ``(C) Additional amounts.--If additional amounts 
                are appropriated to the Fund after amounts are 
                allocated under subparagraph (B), the Secretary shall 
                announce an allocation or additional allocation (if a 
                prior allocation 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 making a determination under 
                paragraph (6) 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 in paragraph (4) or (5).
                    ``(B) Amount.--
                            ``(i) Maximum.--The Secretary may award 
                        preliminary funding under subparagraph (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 preliminary 
                funding awarded under subparagraph (A) shall be limited 
                to eligible activities that--
                            ``(i) in the determination of the 
                        Secretary, will support faster recovery, 
                        improve the ability of the grantee to assess 
                        unmet recovery needs, plan for the prevention 
                        of improper payments, and reduce fraud, waste, 
                        and abuse; and
                            ``(ii) may include evaluating the interim 
                        housing, permanent housing, and supportive 
                        service needs of the disaster impacted 
                        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.--Preliminary 
                funding awarded under subparagraph (A)--
                            ``(i) is not subject to the certification 
                        requirements of paragraph (h)(1); and
                            ``(ii) shall not be considered when 
                        calculating 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 requirements of this section in 
                accordance with subsection (i).
                    ``(F) Amended award.--
                            ``(i) In general.--An award for preliminary 
                        funding under subparagraph (A) may be amended 
                        to add any subsequent amount awarded because of 
                        a determination by the Secretary that a major 
                        disaster is catastrophic and qualifies for 
                        assistance under the formula.
                            ``(ii) Applicability.--Notwithstanding 
                        subparagraph (D), amounts provided by an 
                        amendment under clause (i) are subject to the 
                        requirements under subsections (h)(1) and 
                        (f)(1) and other requirements on grant funds 
                        under this section.
                    ``(G) Technical assistance.--Concurrent with the 
                allocation of any preliminary funding awarded under 
                this paragraph, the Secretary shall assign or provide 
                technical assistance to the recipient of the grant.
    ``(b) Interchangeability.--The Secretary--
            ``(1) is authorized to approve the use of grants under this 
        section to be used interchangeably and without limitation for 
        the same activities in the most impacted and distressed areas 
        resulting from a declaration of another catastrophic major 
        disaster that qualifies for assistance under the formula 
        established under paragraph (4) or (5) of subsection (a); and
            ``(2) shall establish requirements to expedite the use of 
        grants under this section for the purpose described in 
        paragraph (1).
    ``(c) Grantee Plans.--
            ``(1) Requirement.--Not later than 90 days after the date 
        on which the Secretary announces a grant allocation under this 
        section, unless an extension is granted by the Secretary, the 
        grantee shall submit to the Secretary a plan for approval 
        describing--
                    ``(A) the activities the grantee will carry out 
                with the grant under this section;
                    ``(B) the criteria of the grantee for awarding 
                assistance and selecting activities;
                    ``(C) how the use of the grant under this section 
                will address disaster relief, long-term recovery, 
                restoration of housing and infrastructure, 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 
                Emergency 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;
                    ``(F) how the use of grant funds will repair and 
                replace existing housing stock for vulnerable 
                populations, including low- to moderate-income 
                households;
                    ``(G) how the grantee will address the priorities 
                described in paragraph (5);
                    ``(H) how uses of funds are proportional to unmet 
                needs, as required under paragraph (5);
                    ``(I) for State grantees that plan to distribute 
                grant amounts to units of general local government, a 
                description of the method of distribution; and
                    ``(J) such other information as may be determined 
                by the Secretary in regulation.
            ``(2) Public consultation.--To permit public examination 
        and appraisal of the plan described in paragraph (1), to 
        enhance the public accountability of grantees, and to 
        facilitate coordination of activities with different levels of 
        government, when developing the plan or substantial amendments 
        proposed 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 parties with 
                reasonable notice of, and opportunity 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 resulted in the grant under this section 
                and other considerations established by the Secretary; 
                and
                    ``(E) undertake any consultation with interested 
                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 paragraph (1) 
                upon receipt of the plan;
                    ``(C) allow a grantee to revise and resubmit a plan 
                or substantial amendment to a plan under paragraph (1) 
                that the Secretary disapproves;
                    ``(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 Secretary; and
                    ``(E) approve, partially approve, or disapprove a 
                plan or substantial amendment under paragraph (1) not 
                later than 60 days after the date on which the plan or 
                substantial amendment 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
                                    ``(II) the housing needs of low- 
                                and moderate-income residents have been 
                                addressed; and
                            ``(ii) issues a waiver and alternative 
                        requirements 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 vulnerable 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 disaster;
                    ``(C) prolong the life of housing and 
                infrastructure;
                    ``(D) use cost-effective means of preventing harm 
                to people and property and incorporate protective 
                features, redundancies, 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, economic 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 
                                allocation 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 allow 
                        for the disproportional allocation described 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, including 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 
                        Administrator of the Federal Emergency 
                        Management Agency, at risk from natural hazards 
                        that threaten property damage or health, 
                        safety, and welfare, such as floods, wildfires 
                        (including Wildland-Urban Interface 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 Insurance Act of 1968 (42 
                        U.S.C. 4001 et seq.).
                    ``(B) Hazard-prone areas.--The Secretary, in 
                consultation with the Administrator of the Federal 
                Emergency Management Agency, shall establish minimum 
                construction standards, insurance purchase 
                requirements, and other requirements for the use of 
                grant funds in hazard-prone areas.
                    ``(C) Special flood hazards.--For the areas 
                described in subparagraph (A)(ii), the insurance 
                purchase requirements established under subparagraph 
                (B) shall meet or exceed the requirements under section 
                102(a) of the Flood Disaster Protection Act of 1973 (42 
                U.S.C. 4012a(a)).
                    ``(D) Consideration of future risks.--The Secretary 
                may consider future 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 Relocation 
                Assistance and Real Property Acquisition Policies Act 
                of 1970 (42 U.S.C. 4601 et seq.) shall apply to 
                activities assisted under this section to the extent 
                determined by the Secretary in regulation, or as 
                provided in waivers and alternative 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 describes 
                        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
                            ``(ii) includes any appeal rights or other 
                        requirements that the Secretary establishes by 
                        regulation.
    ``(d) Certifications.--Any grant under this section shall be made 
only if the grantee certifies to the satisfaction 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 developed so as 
        to give maximum feasible priority to activities 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 
        elimination of slum and blight to support disaster recovery, 
        meet other community development needs having a particular 
        urgency because existing conditions pose a serious and 
        immediate threat to the health or welfare of the community 
        where other financial resources are not available to meet such 
        needs, and alleviate future threats to human populations, 
        critical natural resources, and property that an analysis of 
        hazards shows are likely to result from natural disasters 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 modifications to its non-disaster housing and community 
        development plans and strategies required by subsections (c) 
        and (m) of section 104 to reflect the disaster 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, unless--
                    ``(A) funds received under this section are used to 
                pay the proportion of such fee or assessment 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 persons of moderate 
                income, the grantee certifies to the Secretary that the 
                grantee lacks sufficient funds received under this 
                section to comply with the requirements of subparagraph 
                (A);
            ``(7) the grantee will comply with the other provisions of 
        this title that apply to assistance under this section and with 
        other applicable laws;
            ``(8) the grantee will follow a relocation assistance 
        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 reviews 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 established 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 activities 
                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 expended.
            ``(3) Failure to meet targets.--
                    ``(A) Suspension.--If a grantee under this section 
                fails to meet 1 or more critical performance targets 
                under paragraph (2), the Secretary 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 
                improvement plan with the specific requirements needed 
                to lift the suspension within a defined time period.
                    ``(C) Report.--If a grantee fails to meet the 
                spending thresholds established under paragraph (2), 
                the grantee shall submit to the Secretary, 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 ability of the grantee to 
                meet the spending thresholds.
            ``(4) Collection of information and reporting.--
                    ``(A) Requirement to report.--A grantee under this 
                section shall provide to the Secretary such information 
                as the Secretary may determine necessary for adequate 
                oversight of the grant program under this section.
                    ``(B) Public availability.--Subject to subparagraph 
                (D), the Secretary shall make information submitted 
                under subparagraph (A) available to the public and to 
                the Inspector General for the Department of Housing and 
                Urban Development, disaggregated by income, geography, 
                and all classes of individuals protected under section 
                109.
                    ``(C) Summary status reports.--To increase 
                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 summary status reports for all active 
                grants under this section that includes--
                            ``(i) the status of funds by activity;
                            ``(ii) the percentages of funds allocated 
                        and expended to benefit low- and moderate-
                        income communities;
                            ``(iii) performance targets, spending 
                        thresholds, and accomplishments; and
                            ``(iv) other information the Secretary 
                        determines to be relevant for transparency.
                    ``(D) Considerations.--In carrying out this 
                paragraph, the Secretary--
                            ``(i) shall take such actions as may be 
                        necessary to ensure that personally 
                        identifiable information regarding applicants 
                        for assistance provided from funds made 
                        available under this section is not made 
                        publicly available; and
                            ``(ii) may make full and unredacted 
                        information available to academic institutions 
                        for the purpose of researching into the 
                        equitable distribution of recovery funds and 
                        adherence to civil rights protections.
    ``(f) Eligible Activities.--
            ``(1) In general.--Activities assisted under this section--
                    ``(A) may include activities permitted under 
                section 105 or other activities permitted by the 
                Secretary by waiver or alternative requirement pursuant 
                to subsection (i); and
                    ``(B) shall be 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 the major disaster for which the grant was 
                awarded.
            ``(2) Prohibition.--Grant funds under this section may not 
        be used for costs reimbursable by, or for which funds have been 
        made available by, the Federal Emergency Management Agency or 
        the United States Army Corps of Engineers.
            ``(3) Administrative costs, technical assistance and 
        planning.--
                    ``(A) In general.--The Secretary shall establish in 
                regulation the maximum grant amounts a grantee may use 
                for administrative costs, technical assistance and 
                planning activities, taking into consideration size of 
                grant, complexity of recovery, and other factors as 
                determined by the Secretary, but not to exceed 10 
                percent for administration and 20 percent in total.
                    ``(B) Availability.--Amounts available for 
                administrative costs for a grant under this section 
                shall be available for eligible administrative costs of 
                the grantee for any grant made under this section, 
                without regard to a particular disaster.
            ``(4) Program income.--Notwithstanding any other provision 
        of law, any grantee under this section may retain program 
        income that is realized from grants made by the Secretary under 
        this section if the grantee agrees that the grantee will 
        utilize the program income in accordance with the requirements 
        for grants under this section, except that the Secretary may--
                    ``(A) by regulation, exclude from consideration as 
                program income any amounts determined to be so small 
                that compliance with this paragraph creates an 
                unreasonable administrative burden on the grantee; or
                    ``(B) permit the grantee to transfer remaining 
                program income to the other grants of the grantee under 
                this title upon closeout of the grant.
            ``(5) Prohibition on use of assistance for employment 
        relocation activities.--
                    ``(A) In general.--Grants under this section may 
                not be used to assist directly in the relocation of any 
                industrial or commercial plant, facility, or operation, 
                from one area to another area, if the relocation is 
                likely to result in a significant loss of employment in 
                the labor market area from which the relocation occurs.
                    ``(B) Applicability.--The prohibition under 
                subparagraph (A) shall not apply to a business that was 
                operating in the disaster-declared labor market area 
                before the incident date of the applicable disaster and 
                has since moved, in whole or in part, from the affected 
                area to another State or to a labor market area within 
                the same State to continue business.
            ``(6) Requirements.--Grants under this section are subject 
        to the requirements of this section, the other provisions of 
        this title that apply to assistance under this section, and 
        other applicable laws, unless modified by waivers and 
        alternative requirements in accordance with subsection (i).
    ``(g) Environmental Review.--
            ``(1) Adoption.--A recipient of funds provided under this 
        section that uses the funds to supplement Federal assistance 
        provided under section 402, 403, 404, 406, 407, 408(c)(4), 428, 
        or 502 of the Robert T. Stafford Disaster Relief and Emergency 
        Assistance Act (42 U.S.C. 5170a, 5170b, 5170c, 5172, 5173, 
        5174(c)(4), 5189f, 5192) may adopt, without review or public 
        comment, any environmental review, approval, or permit 
        performed by a Federal agency, and that adoption shall satisfy 
        the responsibilities of the recipient with respect to the 
        environmental review, approval, or permit under section 
        104(g)(1).
            ``(2) Approval of release of funds.--Notwithstanding 
        section 104(g)(2), the Secretary or a State may, upon receipt 
        of a request for release of funds and certification, 
        immediately approve the release of funds for an activity or 
        project to be assisted 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.).
            ``(3) Units of general local government.--The provisions of 
        section 104(g)(4) shall apply to assistance under this section 
        that a State distributes to a unit of general local government.
    ``(h) Financial Controls and Procedures.--
            ``(1) In general.--The Secretary shall develop requirements 
        and procedures to demonstrate that a grantee under this 
        section--
                    ``(A) has adequate financial controls and 
                procurement processes;
                    ``(B) has adequate procedures to detect and prevent 
                fraud, waste, abuse and duplication of benefit; and
                    ``(C) maintains a comprehensive and publicly 
                accessible website.
            ``(2) Certification.--Before making a grant under this 
        section, the Secretary shall certify that the grantee has in 
        place proficient processes and procedures to comply with the 
        requirements developed under paragraph (1), as determined by 
        the Secretary.
            ``(3) Compliance before allocation.--The Secretary may 
        permit a State, unit of general local government, or Indian 
        tribe to demonstrate compliance with the requirements for 
        adequate financial controls developed under paragraph (1) 
        before a disaster occurs and before receiving an allocation for 
        a grant under this section.
            ``(4) Duplication of benefits.--
                    ``(A) In general.--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 
                (division D of Public Law 115-254), and such rules as 
                may be prescribed under such section 312.
                    ``(B) Penalties.--In any case in which the use of 
                grant funds under this section results in a prohibited 
                duplication of benefits, the grantee shall--
                            ``(i) apply an amount equal to the 
                        identified duplication to any allowable costs 
                        of the award consistent with actual, immediate 
                        cash requirement;
                            ``(ii) remit any excess amounts to the 
                        Secretary to be credited to the obligated, 
                        undisbursed balance of the grant consistent 
                        with requirements on Federal payments 
                        applicable to such grantee; and
                            ``(iii) if excess amounts under clause (ii) 
                        are identified after the period of performance 
                        or after the closeout of the award, remit such 
                        amounts to the Secretary to be credited to the 
                        Fund.
                    ``(C) Failure to comply.--A grantee that fails to 
                comply with subparagraph (A) shall be subject to 
                remedies for noncompliance under section 111, unless 
                the Secretary publishes a determination in the Federal 
                Register that it is not in the best interest of the 
                Federal Government to pursue remedial actions.
    ``(i) Waivers.--
            ``(1) In general.--In administering grants 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 grantee of those 
        funds (except for requirements related to fair housing, 
        nondiscrimination, labor standards, the environment, and the 
        requirements of this section that do not expressly authorize 
        modifications by waiver or alternative requirement), if the 
        Secretary makes a public finding that good cause exists for the 
        waiver or alternative requirement and the waiver or alternative 
        requirement would not be inconsistent with the findings in 
        section 2 of the Reforming Disaster Recovery Act.
            ``(2) Effective date.--A waiver or alternative requirement 
        described in paragraph (1) shall not take effect before the 
        date that is 5 days after the date of publication of the waiver 
        or alternative requirement on the website of the Department of 
        Housing and Urban Development or the effective date for any 
        regulation published in the Federal Register.
            ``(3) Public notification.--The Secretary shall notify the 
        public of all waivers described in paragraph (1) in accordance 
        with the requirements of section 7(q)(3) of the Department of 
        Housing and Urban Development Act (42 U.S.C. 3535(q)(3)).
    ``(j) Unused Amounts.--
            ``(1) Deadline to use amounts.--A grantee under this 
        section shall use an amount equal to the grant within 6 years 
        beginning on the date on which the Secretary obligates the 
        amounts to the grantee, as such period may be extended under 
        paragraph (4).
            ``(2) Recapture.--The Secretary shall recapture and credit 
        to the Fund any amount that is unused by a grantee under this 
        section upon the earlier of--
                    ``(A) the date on which the grantee notifies the 
                Secretary that the grantee has completed all activities 
                identified in the disaster grantee's plan under 
                subsection (c); or
                    ``(B) the expiration of the 6-year period described 
                in paragraph (1), as such period may be extended under 
                paragraph (4).
            ``(3) Retention of funds.--Notwithstanding paragraph (1), 
        the Secretary may allow a grantee under this section to 
        retain--
                    ``(A) amounts needed to close out grants; and
                    ``(B) up to 10 percent of the remaining funds to 
                support maintenance of the minimal capacity to launch a 
                new program in the event of a future disaster and to 
                support pre-disaster long-term recovery and mitigation 
                planning.
            ``(4) Extension of period for use of funds.--The Secretary 
        may extend the 6-year period described in paragraph (1) by not 
        more than 4 years, or not more than 6 years for mitigation 
        activities, if--
                    ``(A) the grantee submits to the Secretary--
                            ``(i) written documentation of the exigent 
                        circumstances impacting the ability of the 
                        grantee to expend funds that could not be 
                        anticipated; or
                            ``(ii) a justification that such request is 
                        necessary due to the nature and complexity of 
                        the program and projects; and
                    ``(B) the Secretary submits a written justification 
                for the extension to the Committees on Appropriations 
                of Senate and the House of Representatives that 
                specifies the period of that extension.''.

SEC. 7. REGULATIONS.

    (a) Proposed Rules.-- Following consultation with the Federal 
Emergency Management Agency, the Small Business Administration, and 
other Federal agencies, not later than 6 months after the date of 
enactment of this Act, the Secretary shall issue proposed rules to 
carry out this Act and the amendments made by this Act and shall 
provide a 90-day period for submission of public comments on those 
proposed rules.
    (b) Final Rules.--Not later than 1 year after the date of enactment 
of this Act, the Secretary shall issue final regulations to carry out 
section 123 of the Housing and Community Development Act of 1974, as 
added by section 6.

SEC. 8. COORDINATION OF DISASTER RECOVERY ASSISTANCE, BENEFITS, AND 
              DATA WITH OTHER FEDERAL AGENCIES.

    (a) Coordination of Disaster Recovery Assistance.--In order to 
ensure a comprehensive approach to Federal 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, the Secretary shall 
coordinate with the Federal Emergency Management Agency, to the 
greatest extent practicable, in the implementation of assistance 
authorized under section 123 of the Housing and Community Development 
Act of 1974, as added by section 6.
    (b) Data Sharing Agreements.--To support the coordination of data 
to prevent duplication of benefits with other Federal disaster recovery 
programs while also expediting recovery and reducing burden on disaster 
survivors, the Department shall establish data sharing agreements that 
safeguard privacy with relevant Federal agencies to ensure disaster 
benefits effectively and efficiently reach intended beneficiaries, 
while using effective means of preventing harm to people and property.
    (c) Data Transfer From FEMA and SBA to HUD.--As permitted and 
deemed necessary for efficient program execution, and consistent with a 
computer matching agreement entered into under subsection (f)(1), the 
Administrator of the Federal Emergency Management Agency and the 
Administrator of the Small Business Administration shall provide data 
on disaster applicants to the Department, including, when necessary, 
personally identifiable information, disaster recovery needs, and 
resources determined eligible for, and amounts expended, to the 
Secretary for all major disasters declared by the President pursuant to 
section 401 of Robert T. Stafford Disaster Relief and Emergency 
Assistance Act (42 U.S.C. 5170) for the purpose of providing additional 
assistance to disaster survivors and prevent duplication of benefits.
    (d) Data Transfers From HUD to HUD Grantees.--The Secretary is 
authorized to provide to grantees under section 123 of the Housing and 
Community Development Act of 1974, as added by section 6, offices of 
the Department, technical assistance providers, and lenders information 
that in the determination of the Secretary is reasonably available and 
appropriate to inform the provision of assistance after a major 
disaster, including information provided to the Secretary by the 
Administrator of the Federal Emergency Management Agency, the 
Administrator of the Small Business Administration, or other Federal 
agencies.
    (e) Data Transfers From HUD Grantees to HUD, FEMA, and SBA.--
            (1) Reporting.--Grantees under section 123 of the Housing 
        and Community Development Act of 1974, as added by section 6, 
        shall report information requested by the Secretary on 
        households, businesses, and other entities assisted and the 
        type of assistance provided.
            (2) Sharing information.--The Secretary shall share 
        information collected under paragraph (1) with the Federal 
        Emergency Management Agency, the Small Business Administration, 
        and other Federal agencies to support the planning and delivery 
        of disaster recovery and mitigation assistance.
    (f) Privacy Protection.--The Secretary may make and receive data 
transfers authorized under this section, including the use and 
retention of that data for computer matching programs, to inform the 
provision of assistance, assess disaster recovery needs, and prevent 
the duplication of benefits and other waste, fraud, and abuse, provided 
that--
            (1) the Secretary enters a computer matching agreement with 
        the Administrator of the Federal Emergency Management Agency, 
        the Administrator of the Small Business Administration, or 
        other Federal agencies covering the transfer of data;
            (2) the Secretary publishes intent to disclose data in the 
        Federal Register;
            (3) notwithstanding paragraphs (1) and (2), section 552a of 
        title 5, United States Code (commonly known as the ``Privacy 
        Act of 1974''), or any other law, the Secretary is authorized 
        to share data with an entity identified in subsection (d), and 
        the entity is authorized to use the data as described in this 
        section, if the Secretary enters a data sharing agreement with 
        the entity before sharing or receiving any information under 
        transfers authorized by this section, which data sharing 
        agreement shall--
                    (A) in the determination of the Secretary, include 
                measures adequate to safeguard the privacy and 
                personally identifiable information of individuals; and
                    (B) include provisions that describe how the 
                personally identifiable information of an individual 
                will be adequately safeguarded and protected, which 
                requires consultation with the Secretary and the head 
                of each Federal agency the data of which is being 
                shared subject to the agreement.
                                 <all>