HomeMy WebLinkAboutIowa Department of Economic Development-Grant Contract-08.17.2009 -1 �
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IOWA DEPARTMENT OF ECONOMIC DEVELOPMENT
COMMUNITY DEVELOPMENT BLOCK GRANT(CDBG)
BUSINESS DISASTER RECOVERY FUND CONTRACT
RECIPIENT: City of Waterloo
CONTRACT NUMBER: 08-DRB-205
CONTRACT EFFECTIVE DATE: September 23,2008
AWARD AMOUNT: See Attachment A
END DATE: April 30,2010
THIS COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM ("CDBG") DISASTER RECOVERY FUND
CONTRACT is made by and between the IOWA DEPARTMENT OF ECONOMIC DEVELOPMENT, 200 East Grand
Avenue, Des Moines, Iowa 50309("Department"or"IDED")and the Recipient,effective as of the date stated above.
WHEREAS,the Department is designated to receive,administer, and disburse CDBG funds in the State of Iowa;and
WHEREAS, the Department received funds under the Consolidated Security, Disaster Assistance, and Continuing
Appropriations Act,2009(P.L. 110-329)under the CDBG program; and
WHEREAS,the Department desires to disburse grant funds to the Recipient for eligible purposes primarily benefiting
low and moderate income persons, eliminating slums and blight, or meeting community development needs having particular
urgency;and
WHEREAS, the Recipient submitted an Application for funding to the Department and the Department has approved
the Application;and
WHEREAS, in approving the Application the Department has relied upon the representations of proposed activities;
management and financial condition of the Recipient; investment of other funds; and other material information contained
therein; and
WHEREAS, the Recipient has certified to the Department that the primary purpose for obtaining CDBG funds is to
primarily benefit low and moderate income persons, eliminate slums and blight, or meet community development needs having
a particular urgency;and
WHEREAS, the Recipient has agreed to provide project services to the following geographic areas: City of Waterloo
NOW, THEREFORE, the Recipient accepts this grant upon the terms and conditions set forth in this Contract. In
consideration of the mutual promises contained in this Contract and other good and valuable consideration, it is agreed as
follows:
ARTICLE 1
DEFINITIONS
As used in this Contract,the following terms shall apply:
1.1 ACT. "Act" means Title I of the Housing and Community Development Act of 1974 as amended(42 U.S.C. 5301 et
seq.).
1.2 ACTIVITY. "Activity" means the description of work, services, and other accomplishments to be performed by the
Recipient as described in the Disaster Recovery Fund Application approved by the Department.
1.3 ALLOWABLE COSTS. "Allowable Costs" are those costs which are identified on Attachment A, "Program
Description and Budget;"and consistent with Federal regulations and guidelines applicable to the CDBG program.
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1.4 COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM (CDBG). "Community Development Block
Grant Program" means the grant program authorized by Title I of the Housing and Community Development Act of 1974, as
amended.
1.5 CONTRACT. "Contract" means this Contract and all of the leases, assignments, and similar documents referred to
in the Contract and all other instruments or documents executed by the Recipient or otherwise required in connection with the
Contract, including the Disaster Recovery Fund Application together with any related submittal documents.
1.6 CONTRACT END DATE. "Contract End Date"means the date the Contract ceases to be in force and effect, unless
the Contract is terminated earlier. The Contract expires upon the occurrence of one of the following: a) the Recipient fulfills
the conditions and accomplishments agreed to herein as of the Contract End Date; or b) the Contract is terminated by the
Department due to any default under Article 9; or c) the Contract is terminated in accordance with provisions set forth in
Sections 8 and 9 of the General Provisions,Attachment B of this Contract.
1.7 GRANT. "Grant"means the award of CDBG funds to the Recipient for activities.
1.8 HUD. "HUD"means the U.S. Department of Housing and Urban Development.
1.9 LOW-INCOME FAMILIES. "Low-Income Families" means those families earning no more than 50 percent of the
higher of the median family income of the county or the statewide nonmetropolitan area as determined by the latest U.S.
Department of Housing and Urban Development, Section 8 income guidelines. Unrelated individuals shall be considered as
one-person families for this purpose.
1.10 LOW-INCOME PERSON. "Low-Income Person"means a member of a low-income family as defined above.
1.11 MEDIAN INCOME FAMILIES. "Median Income Families" means those families earning no more than 100
percent of the higher of the median family income of the county or the statewide nonmetropolitan area as determined by the
latest U.S. Department of Housing and Urban Development, Section 8 income guidelines. Unrelated individuals shall be
considered as one-person families for this purpose.
1.12 MEDIAN INCOME PERSON. "Median Income Person" means a member of a median income family defined
above.
1.13 LOW- AND MODERATE-INCOME FAMILIES. "Moderate Income Families" means those families earning no
more than 80 percent of the higher of the median family income of the county or statewide nonmetropolitan area as determined
by the latest U.S. Department of Housing and Urban Development, Section 8 income guidelines. Unrelated individuals shall
be considered as one-person families for this purpose.
1.14 LOW- AND MODERATE-INCOME PERSON. "Moderate Income Person" means a member of a moderate
income family defined above.
1.15 PROJECT. "Project"means a discrete item of work as determined to be eligible under program guidelines.
ARTICLE 2
FUNDING
2.1 FUNDING SOURCE. The source of funding for the Grant is a Federal appropriation for the Community
Development Block Grant (CDBG) Program, Consolidated Security, Disaster Assistance, and Continuing Appropriations Act,
2009(P.L. 110-329).
2.2 RECEIPT OF FUNDS. All payments under this Contract are subject to receipt by the Department of sufficient
Federal funds for the CDBG program. Any termination, reduction, or delay of CDBG funds to the Department shall, at the
option of the Department,result in the termination,reduction or delay of CDBG funds to the Recipient.
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2.3 PRIOR COSTS. If any Recipient has received written approval from the Department to incur certain costs prior to
the Effective Date of this Contract, then said written approval and the terms and conditions therein are incorporated herein and
made a part of this Contract by this reference as if fully set forth. Any such costs incurred prior to the Effective Date of this
Contract are subject to the Special Conditions and General Conditions of this Contract.
2.4 DISBURSEMENT OF LESS THAN THE TOTAL AWARD AMOUNT. If the total award amount has not been
requested by the Recipient within sixty(60)days after the Contract End Date,then the Department shall be under no obligation
for further disbursement. The Department may allow access to funds after this time for allowable costs associated with the
conduct of the audit(s)required in Article 2.0 of the General Provisions,Attachment B to this Contract.
ARTICLE 3
TERMS OF GRANT
3.1 TIME OF PERFORMANCE. The services of the Recipient are to commence as of the Effective Date and shall be
undertaken in such sequence as to assure their expeditious completion. All of the services required hereunder shall be
completed on or before the Contract End Date.
3.2 MAXIMUM PAYMENTS. It is expressly understood and agreed that the maximum amounts to be paid to the
Recipient by the Department for any item of work or service shall conform to the budget as presented in Attachment A,
"Program Description and Budget." It is further understood and agreed that the total of all payments to the Recipient by the
Department for all work and services required under this Contract shall not exceed the Award Amount unless modified by
written amendment of this Contract as provided in Section 1.0 of the General Provisions.
3.4 ADMINISTRATION. This Contract shall be administered in accordance with 261 Iowa Administrative Code.
Chapter 23 and all applicable State and Federal laws and regulations, including the 2009 CDBG Management Guide and the
required elements of the IDED's model of the Owner-Occupied Rehabilitation Administrative Plan (as applicable), which have
been provided by IDED to the Recipient.
ARTICLE 4
ACTIVITY REQUIREMENTS
4.1 PERFORMANCE TARGETS. On the Contract End Date, the Recipient shall have accomplished the activities and
performance targets as described in Attachment A,"Program Description and Budget".
4.2 CALCULATION OF ACTIVITY COMPLETION. The Department has the final authority to assess whether the
Recipient has met their performance targets at the Contract End Date. The Department shall determine completion according
to the performance targets set forth in Attachment A, "Program Description and Budget." The Department reserves the right to
monitor and measure at any time during the Contract term the achievement of the performance targets.
ARTICLE 5
USE OF FUNDS
5.1 GENERAL. The Recipient shall perform in a satisfactory and proper manner, as determined by the Department, the
work and services as written and described in the approved "Program Description and Budget" (Attachment A). In order to
qualify under the National Objective of benefitting low- and moderate-income persons, every person or household benefitted
must be low- or moderate income. Any persons or households assisted between 80 percent of median income and 100 percent
of median income must qualify as either"preventing or eliminating slums or blight"or"addressing urgent need."
5.2 PROGRAM INCOME. Proceeds in excess of$25,000 in a year generated from the use of CDBG funds (program
income)received by the recipient prior to the Contract End Date,shall be expended prior to requesting additional CDBG funds.
Proceeds in excess of$25,000 in a year generated from the use of CDBG funds (program income) received by the recipient
after the Contract End Date shall be returned to the Department. For entitlement cities funded directly by this contract,
program income received after the end date of this contract shall be used as program income for their regular entitlement city
CDBG program.
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5.3 BUDGET REVISIONS. Budget revisions shall be subject to approval of the Department through the Contract
amendment process. Budget line item decreases that would lower the Recipient's performance level required under this
Contract must be first approved by the Department through the amendment process. In no instance shall a budget revision
result in total costs exceeding the total Contract amount as presented in Attachment A. The Department retains the right to
amend this contract to reduce or increase the award amount when necessary to achieve an equitable distribution of funds for all
areas of the state. Budget revisions shall be compatible with the terms of this Contract and be of such a nature as to qualify as
an allowable cost. These provisions shall not be construed as allowing general administrative costs to exceed the limits
provided in Article 5.4. Budget revisions requested during the final ninety (90) days of the Contract period will be approved
by the Department only if it determines that the revisions are necessary to complete all activities.
5.4 GENERAL ADMINISTRATIVE COST LIMITATIONS. Federal funds used for reasonable general
administrative costs, as allowed under Federal and State regulations, shall be limited to the amount shown on the Attachment
A,plus up to 2 percent of any program income received.
ARTICLE 6
CONDITIONS TO DISBURSEMENT OF FUNDS
Unless and until the following conditions have been satisfied, the Department shall be under no obligation to disburse to the
Recipient any amounts under this Contract:
6.1 CONTRACT EXECUTED. The Contract shall have been properly executed and, where required, acknowledged.
6.2 COMPLIANCE WITH ENVIRONMENTAL AND HISTORIC PRESERVATION REQUIREMENTS. Funds
shall not be released under this Contract until the Recipient has satisfied the environmental review and release of funds
requirements set forth in 24 CFR Part 58, "Environmental Review Procedures for the Community Development Block Grant
Program," and summarized in the 2009 CDBG Management Guide. In addition, construction contracts for non-exempt
activities shall not be executed and construction shall not begin prior to providing the Department with documentation of the
Recipient's compliance with Section 106 of the National Historic Preservation Act and 36 CFR Part 800, "Protection of
Historic Properties" and the Request for Release of Funds is issued. The Recipient shall comply with the Programmatic
Agreement between the Iowa Department of Economic Development and the Iowa State Historic Preservation Office,
applicable to any activities included in this Contract.
6.3 PERMITS AND LICENSES. The Department reserves the right to withhold funds until the Department has
reviewed and approved all documents, such as permits or licenses from other local, state or federal agencies, which may be
required prior to Activity commencement.
6.4 EXCESSIVE FORCE POLICY. The Department, prior to release of funds under this Contract, shall review and
approve the Recipient's policy on protecting individuals engaged in nonviolent civil rights demonstrations from the use of
excessive force by law enforcement agencies within its jurisdiction, and enforcing state and local laws against physically
barring entrance to or exit from a facility or location which is the subject of such nonviolent civil rights demonstrations within
its jurisdiction, consistent with the provisions of Section 906 of the National Affordable Housing Act of 1990 and Subsection
104(1)of the Housing and Community Development Act of 1974,as amended.
6.5 RECIPIENT SUBAGREEMENT APPROVAL. The Recipient will enter into agreements with any Councils of
Government, Counties or Entitlement Cities in their area, as designated by the Department for the administration of this
contract.
ARTICLE 7
REPRESENTATIONS AND WARRANTIES OF RECIPIENT
To induce the Department to make the Grant referred to in this Contract,the Recipient represents, covenants and warrants that:
7.1 AUTHORITY. The Recipient is duly authorized and empowered to execute and deliver the Contract. All action on
the Recipient's part, such as appropriate resolution of its governing board for the execution and delivery of the Contract, has
been effectively taken.
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7.2 FINANCIAL INFORMATION. All financial statements and related materials concerning the Activity that have
been provided to the Department are true and correct in all material respects and completely and accurately represent the
subject matter thereof as of the Effective Date of the statements and related materials, and no material adverse change has
occurred since that date.
7.3 DISASTER RECOVERY FUND APPLICATION. The contents of the Application the Recipient submitted to the
Department for funding is a complete and accurate representation of the proposed Activity as of the date of submission and
there has been no material adverse change in the organization, operation, or key personnel of the Recipient since the date the
Recipient submitted its Disaster Recovery Fund Application to the Department.
7.4 CLAIMS AND PROCEEDINGS. There are no actions, lawsuits or proceedings pending or, to the knowledge of the
Recipient,threatened against the Recipient affecting in any manner whatsoever their rights to execute the Grant or the ability of
the Recipient to make the payments required under the Grant, or to otherwise comply with the obligations of the Grant
contained under the Grant. There are no actions, lawsuits or proceedings at law or in equity, or before any governmental or
administrative authority pending or, to the knowledge of the Recipient, threatened against or affecting the Recipient or any
property involved in the Activity.
7.5 PRIOR AGREEMENTS. The Recipient has not entered into any verbal or written contracts, agreements, or
arrangements of any kind,which are inconsistent with the Contract.
7.6 EFFECTIVE DATE. The covenants, warranties and representations of this Article are made as of the Effective Date
of this Contract and shall be deemed to be renewed and restated by the Recipient at the time of each advance or request for
disbursement of funds.
ARTICLE 8
COVENANTS OF THE RECIPIENT
8.1 AFFIRMATIVE COVENANTS. Until the Activity has been closed out, audited, and approved by IDED, the
Recipient covenants with IDED that:
(a) WORK AND SERVICES. The Recipient shall perform work and services detailed in the Attachment A of
the Contract by the Contract End Date.
(b) REPORTS. The Recipient shall prepare, review and sign the requests and reports as specified below in the
form and content specified by the Department. The requests and reports shall be submitted to the Department by the
15th of the month when due, and for final reports, within sixty (60) days after the Contract End Date. The Recipient
shall review all reimbursement requests and verify that claimed expenditures are allowable costs. The Recipient shall
maintain documentation adequate to support the claimed costs.
REPORT DUE DATE
Request for Payment—Business Report As funds are needed(original and three copies)
Business beneficiary and unit data,entered on statewide All unit information added and updates complete
online system, as specified by IDED as of end of each contract quarter. If the online system
is unavailable,a written report in a form defined
by IDED shall be due.
Final Request for Payment—Business Report Within 60 days of Contract End Date
Final Business Recipient Quarterly Performance Report Within 60 days of Contract End Date
—Activity Status
Section 3 Report Within 60 days of Contract End Date
Updates to the Applicant/Recipient Disclosure Report As needed due to changes
Audit Report Within 30 days of Audit Completion
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(c) RECORDS. The Recipient shall maintain books, records, documents and other evidence pertaining to all
costs and expenses incurred and revenues received under this Contract in sufficient detail to reflect all costs,direct and
indirect, of labor, materials, equipment, supplies, services and other costs and expenses of whatever nature, for which
payment is claimed under this Contract. The Recipient shall maintain books, records and documents in sufficient
detail to demonstrate compliance with the Contract and shall maintain these materials for a period of five (5) years
beyond the date upon which the final audit of the Activity is accepted by IDED. Records for non-expendable property
acquired under this Contract shall be retained for a five(5)year period after the final disposition of property. Records
shall be retained beyond the prescribed period if any litigation or audit is begun or if a claim is instituted involving the
grant or agreement covered by the records. In these instances,the records shall be retained until the litigation,audit or
claim has been finally resolved.
(d) ACCESS TO RECORDS/INSPECTIONS. The Recipient shall, without prior notice and at any time,
permit HUD or its representatives, the General Accounting Office or its representatives, and the Department, its
representatives or the State Auditor to examine, audit and/or copy (i) any plans and work details pertaining to the
Activity,(ii)all of the Recipient's books,records and accounts,and(iii)all other documentation or materials related to
this Grant;the Recipient shall provide proper facilities for making such examination and/or inspection.
(e) USE OF GRANT FUNDS. The Recipient shall expend funds received under the Grant only for the
purposes and activities described in its Attachment A,this Contract and as approved by the Department.
(f) DOCUMENTATION. The Recipient shall deliver to IDED, upon request, (i) copies of all contracts or
agreements relating to the Activity, (ii) invoices, receipts, statements or vouchers relating to the Activity,(iii)a list of
all unpaid bills for labor and materials in connection with the Activity, and (iv) budgets and revisions showing
estimated Activity costs and funds required at any given time to complete and pay for the Activity.
(g) NOTICE OF PROCEEDINGS. The Recipient shall promptly notify IDED of the initiation of any claims,
lawsuits or proceedings brought against the Recipient.
(h) INDEMNIFICATION. The Recipient shall indemnify and hold harmless the Department, its officers and
employees from and against any and all losses in connection with the Activity.
(i) NOTICE TO DEPARTMENT. In the event the Recipient becomes aware of any material alteration in the
Activity, initiation of any investigation or proceeding involving the Activity, or any other similar occurrence, the
Recipient shall promptly notify the Department.
(j) CERTIFICATIONS. The Recipient certifies and assures that the Activity will be conducted and
administered in compliance with all applicable Federal and State laws, regulations and orders. Certain statutes are
expressly made applicable to activities assisted under the Act by the Act itself, while other laws not referred to in the
Act may be applicable to such activities by their own terms. The Recipient certifies and assures compliance with the
applicable orders, laws and implementing regulations, including but not limited to, the following, as modified by the
waivers and alternative requirements published in the Federal Register on February 13,2009:
(i) Financial Management guidelines issued by the U.S. Office of Management and Budget, OMB
Circular A-133 ("Single Audit Act Amendment of 1996"), OMB Circular A-122 ("Cost Principles for
Nonprofit Organizations"),OMB Circular A-87 ("Principles for Determining Costs Applicable to Grants and
Contracts with State, Local and Federally recognized Indian Tribal Governments").
(ii) Title I of the Housing and Community Development Act of 1974 as amended (42 U.S.C. 5301 et
seq.); and regulations which implement these laws, as modified by the waivers and alternative requirements
published in the Federal Register on February 13,2009.
(iii) Title VI of the Civil Rights Act of 1964 as amended(Public Law 88-352;42 U.S.C. 2000d et seq.);
Title VIII of the Civil Rights Act of 1968 as amended(Public Law 90-284;42 U.S.C. 3601 et seq.);the Iowa
Civil Rights Act of 1965; Iowa Code Section 19B.7, and Executive Order #34, dated July 22, 1988; Iowa
Code Chapter 216, Presidential Executive Order 11063, as amended by Executive Order 12259; Presidential
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Executive Order 11246, as amended; Section 504 of the Rehabilitation Act of 19"3 as amended (29 U.S.C.
794); the Age Discrimination Act of 1975 as amended (42 U.S.C. 6101 et seq.); the Americans with
Disabilities Act, as applicable, (P. L. 101-336, 42 U.S.C. 12101-12213); and related Civil Rights and Equal
Opportunity statutes;and regulations which implement these laws.
(iv) Fair Housing Act, Public Law 90-284. The Fair Housing Act is part of Title VIII of the Civil
Rights Act of 1968 as amended (42 U.S.C. 3601 et seq.); Section 109 of the Title I of the Housing and
Community Development Act of 1974, as amended; Section 3 of the Housing and Urban Development Act
of 1968 as amended(12 U.S.C. 1701u);and regulations which implement these laws.
(v) Department of Housing and Urban Development regulations governing the CDBG program, 24
Code of Federal Regulations, Part 570.
(vi) Section 102 of the Department of Housing and Urban Development Reform Act of 1989
(P.L, 101-235),and implementing regulations.
(vii) Lead Based Paint Poisoning Prevention Act(42 U.S.C.4821 -4846),as amended, and
implementing regulations.
(viii) Davis-Bacon Act, as amended (40 U.S.C. 276a - 276a-5), where applicable under Section 110 of
the Housing and Community Development Act of 1974, as amended; Contract Work Hours and Safety
Standards Act(40 U.S.C. 327 et seq.); the Copeland Anti-Kickback Act (18 U.S.C. 874); the Department of
Defense Reauthorization Act of 1986; and regulations which implement these laws.
(ix) National Environmental Policy Act of 1969 and implementing regulations.
(x) Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended,
(URA)(42 U.S.C. 4601 - 4655) and implementing regulations; Section 104(d) of the Housing and
Community Development Act of 1974, as amended, governing the residential anti-displacement and
relocation assistance plan; and Section 105(a)(11)of the Housing and Community Development Act of 1974,
as amended,governing optional relocation assistance.
(xi) Iowa CDBG Program Administrative rules adopted by the Iowa Department of Economic
Development, 261 Iowa Administrative Code, Chapter 23.
(xii) Financial and Program Management guidelines issued by the Iowa Department of Economic
Development;the 2009 CDBG Management Guide and the IDED Audit Guide.
(xiii) Government-wide Restriction on Lobbying Certification [Section 319 of Public Law 101-121] and
implementing regulations.
(xiv) Fair Labor Standards Act and implementing regulations.
(xv) Hatch Act (regarding political partisan activity and federally funded activities) and implementing
regulations.
(xvi) Citizen participation, hearing and access to information requirements found under sections
104(a)(2)and 104(a)(3)of Title I of the Housing and Community Development Act of 1974, as amended and
as modified by the waivers and alternative requirements published in the Federal Register on February 13,
2009.
(xvii) Subsection 104(1) of Title I of the Housing and Community Development Act of 1974, as
amended,regarding the prohibition of the use of excessive force in nonviolent civil rights demonstrations and
the enforcement of state and local laws on barring entrance to or exit from facilities subject to such
demonstrations.
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(xviii) Drug-Free Workplace Act.
(k) MAINTENANCE OF ACTIVITY PROPERTY AND INSURANCE. The following provision shall apply
to Activity Number(s) N/A. The Recipient and any sub-recipient shall maintain the property in good repair and
condition,ordinary wear and tear excepted, and shall not suffer or commit waste or damage upon the property. At the
Department's request, the Recipient or sub-recipient shall pay for and maintain insurance as is customary in their
industry. This insurance shall be in an amount not less than the full insurable value of the property. The sub-recipient
shall name the Recipient and Department as a mortgagee and or an additional loss payee, as appropriate, and the
Recipient shall name the Department as a mortgagee and or an additional loss payee, as appropriate, and submit
copies of the policies to the Department.
8.2 NEGATIVE COVENANTS. During the Contract term the Recipient covenants with IDED that it shall not, without
the prior written disclosure to and prior written consent of IDED,directly or indirectly:
(a) ASSIGNMENT. Assign its rights and responsibilities under this Contract.
(b) ADMINISTRATION. Discontinue administration activities under the Contract.
ARTICLE 9
DEFAULT AND REMEDIES
9.1 EVENTS OF DEFAULT. The following shall constitute Events of Default under this Contract:
(a) MATERIAL MISREPRESENTATION. If at any time any representation, warranty or statement made or
furnished to the Department by. or on behalf of the Recipient in connection with this Contract or to induce the
Department to make a grant to the Recipient shall be determined by the Department to be incorrect, false, misleading
or erroneous in any material respect when made or furnished and shall not have been remedied to the Department's
satisfaction within thirty(30)days after written notice by the Department is given to the Recipient.
(b) NONCOMPLIANCE. If there is a failure by the Recipient to comply with any of the covenants, terms or
conditions contained in this Contract.
(c) CONTRACT END DATE. If the Activity, in the sole judgment of the Department, is not completed on or
before the Contract End Date.
(d) MISSPENDING. If the Recipient expends Grant proceeds for purposes not described in the Disaster
Recovery Fund Application,this Contract,or as authorized by the Department.
(e) INSURANCE. If loss, theft, damage, or destruction of any substantial portion of the property of the
Recipient occurs for which there is either no insurance coverage or for which, in the opinion of the Department, there
is insufficient insurance coverage. This provision shall apply to Activity Number(s)N/A.
9.2 NOTICE OF DEFAULT. In the event of default, IDED shall issue a written notice of default providing therein a
fifteen(15)day period in which the Recipient shall have an opportunity to cure,provided that cure is possible and feasible.
9.3 REMEDIES UPON DEFAULT. If, after opportunity to cure, the default remains, IDED shall have the right, in
addition to any rights and remedies available to it,to do one or more of the following:
(a) exercise any remedy provided by law,
(b) require immediate repayment of up to the full amount of funds disbursed to the Recipient under this Contract,plus
interest.
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9.4 FAILURE TO MEET PERFORMANCE TARGETS. If the Recipient is determined by the Department to be in
default of this Contract due to meeting less than one hundred percent(100%) of its Performance Targets, the Department may
require full Grant repayment or, at its discretion, the Department may require partial repayment of Grant proceeds which
allows partial credit for the performance targets which have been met, or the Department may require other remedies that the
Department determines to be appropriate. Performance targets include income targeting and affordability requirements as
required by Federal law and regulation. No beneficiaries of each activity funded under this contract shall exceed 100 percent
of the higher of the median family income of the county or statewide nonmetropolitan area as determined by the U.S.
Department of Housing and Urban Development, Section 8 income guidelines.
ARTICLE 10
INCORPORATED DOCUMENTS
10.1 DOCUMENTS INCORPORATED BY REFERENCE. The Recipient shall comply with the terms and conditions
of the following documents that are hereby incorporated by reference:
1. Attachment A,"Program Description and Budget."
2. Attachment B,"CDBG Program Disaster Recovery Fund General Provisions,"dated September 23,2008.
3. Attachment C,"CDBG Program Waivers for the Supplemental Appropriations Act of 2008."
4. Attachment E, "Requirements for Business Activities for the CDBG Disaster Recovery Supplemental
Funds."
10.2 ORDER OF PRIORITY. In the event of a conflict between documents of this Contract, the following order of
priority shall govern:
1. Articles 1 through 11 herein.
2. Attachment B,"CDBG Program Disaster Recovery Fund General Provisions,"dated September 23,2008.
3. Attachment C,"CDBG Program Waivers for the Supplemental Appropriations Act of 2008."
4. Attachment A,"Program Description and Budget."
5. Attachment D, "Requirements for Business Activities for the CDBG Disaster Recovery Supplemental
Funds."
ARTICLE 11
MISCELLANEOUS
11.1 LIMIT ON GRANT PROCEEDS ON HAND. The Recipient shall request funds only as needed and shall not have
more than five hundred dollars ($500.00) of Grant proceeds, including earned interest on hand for a period of longer than ten
(10)working days,after which time any surplus amount shall be returned to the Department.
11.2 BINDING EFFECT. This Contract shall be binding upon and shall inure to the benefit of the Department and
Recipient and their respective successors, legal representatives and assigns. The obligations, covenants, warranties,
acknowledgments, waivers, agreements, terms, provisions, and conditions of this Contract shall be jointly and severally
enforceable against the parties to this Contract.
11.3 SURVIVAL OF CONTRACT. If any portion of this Contract is held to be invalid or unenforceable, the remainder
shall be valid and enforceable. The provisions of this Contract shall survive the execution of all instruments herein mentioned
and shall continue in full force until the Activity is completed as determined by the Department.
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11.4 GOVERNING LAW. This Contract shall be interpreted in accordance with the laws of the State of Iowa, and any
action relating to the Contract shall only be commenced in the Iowa District Court for Polk County or the United States District
Court for the Southern District of Iowa.
11.5 NOTICES. Whenever this Contract requires or permits any notice or written request by one party to another,it shall
be in writing, enclosed in an envelope, addressed to the party to be notified at the address heretofore stated (or at such other
address as may have been designated by written notice), properly stamped, sealed and deposited in the United States Mail.
Any such notice given hereunder shall be deemed delivered upon the earlier of actual receipt or two (2) business days after
posting. The Department may rely on the address of the Recipient set forth heretofore,as modified from time to time,as being
the address of the Recipient.
11.6 WAIVERS. No waiver by the Department of any default hereunder shall operate as a waiver of any other default or
of the same default on any future occasion. No delay on the part of the Department in exercising any right or remedy
hereunder shall operate as a waiver thereof. No single or partial exercise of any right or remedy by the Department shall
preclude future exercise thereof or the exercise of any other right or remedy.
11.7 LIMITATION. It is agreed by the Recipient that the Department shall not, under any circumstances, be obligated
financially under this Contract except to disburse funds according to the terms of the Contract.
11.8 HEADINGS. The headings in this Contract are intended solely for convenience of reference and shall be given no
effect in the construction and interpretation of this Contract.
11.9 INTEGRATION. This Contract contains the entire understanding between the Recipient and the Department and
any representations that may have been made before or after the signing of this Contract, which are not contained herein, are
nonbinding,void and of no effect. None of the parties has relied on any such prior representation in entering into this Contract.
11.10 COUNTERPARTS. This Contract may be executed in any number of counterparts, each of which shall be deemed
to be an original,but all of which together shall constitute but one and the same instrument.
IN WITNESS WHEREOF,the parties have executed this Contract as of the Contract Effective Date first stated.
RECIPIENT: City of Waterloo
BY: l / 111• I4t ' )ey Mayo yo r
Tim Hurley,M yor yped or Printed Name add Title
City of Waterloo
City Hall
715 Mulberry Street
Waterloo,IA 50703
IOWA DEPARTMENT OF ECONOMIC DEVELOPMENT:
BY:
Timothy R.Waddell,Division Administrator
Document Prepared By: LTS CDBG Disaster Recovery Fund Contract
Format Approved September 2008
Attachment A
Program Description and Budget
IOWA CDBG DISASTER RECOVERY HOUSING FUND PROGRAM DESCRIPTION & BUDGET
ATTACHMENT A DATE: 12/31/2008
To lie tilled.:;f4 €3ii
�Y
Name of Recipient: City of Waterloo Ongiita :
Airieisine
.. ....... ...
Contract Number: 08-DRB-205 Pioj 9r S gtt
ACTIVITY JESGRIPTION P RF. R A '>IAR T ...UR tVAT[OIV II
�R Q A� MC{~..A GE 5>�IIEAS
O�JI=CTI��
Activity 1: 105 Economic Development
106 ED-Business Rental Assistance UN $735,000
Activity 2:
$0
Activity 3:
$0
Activity 4:
$0
Activity 5:
$0
Activity 6:
$0
Activity 7:
$0
Activity 8:
$0
Activity 9:
$0
GENERAL ADMINISTRATION 181 $15,000
TOTAL BUDGET: $750,000
M:\Lstein\IDED\BRAP\Contracts\Waterloo\Waterloo BRAP Attach A.xlsx
Attachment B
CDBG Program Disaster Recovery
Fund General Provisions dated
September 23, 2008
ATTACHMENT B
GENERAL PROVISIONS
COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM
DISASTER RECOVERY FUND
September 23,2008
1.0 AMENDMENT.
(a) WRITING REQUIRED. The Contract may only be amended through written prior approval of IDED. Examples of situations
where amendments are required include extensions for completion of Activities,changes to the Activities including,but not limited
to,alteration of existing approved Activities and Performance Target Goals or inclusion of new Activities.
(b) UNILATERAL MODIFICATION. Notwithstanding Paragraph(a)above,IDED may unilaterally modify the Contract at will in
order to accommodate any change in the Act or any change in the interpretation of the Act or any applicable Federal,State or local
laws,regulations,rules or policies. A copy of such unilateral modification will be given to the Recipient as an amendment to this
Contract.
(c) IDED REVIEW. IDED will consider whether an amendment request is so substantial as to necessitate reevaluating IDED's
original funding decision on the Activity. An amendment will be denied if it substantially alters the circumstances under which the
Activity funding was originally approved or if it does not meet requirements set forth in 261 Iowa Administrative Code,
Chapter 23.
2.0 AUDIT REQUIREMENTS.
(a) SINGLE AUDIT. The Recipient shall ensure that an audit is performed in accordance with the Single Audit Act Amendment of
1996 and OMB Circular A-I33,as applicable,the IDED's administrative rules for the CDBG Program(261 Iowa Administrative
Code Chapter 23),and the 2009 CDBG Management Guide.
(b) ADDITIONAL AUDIT. As a condition of the grant to the Recipient,IDED reserves the right to require the Recipient to submit to
a post Activity completion audit and review in addition to the audit required above.
3.0 COMPLIANCE WITH LAWS AND REGULATIONS. The Recipient shall comply with all applicable State and Federal laws,rules,
ordinances,regulations and orders.
4.0 UNALLOWABLE COSTS. If IDED determines at any time,whether through monitoring,audit,closeout procedures or by other
means or process that the Recipient has expended funds which are unallowable,the Recipient will be notified of the questioned costs
and given an opportunity to justify questioned costs prior to IDED's final determination of the disallowance of costs. Appeals of any
determinations will be handled in accordance with the provisions of Chapter 17A,Iowa Code. If it is IDED's final determination that
costs previously paid by the IDED are unallowable under the terms of the Contract,the expenditures will be disallowed and the
Recipient shall repay to IDED any and all disallowed costs.
5.0 PROGRAM INCOME. All program income as defined in OMB Circular A-IO2 and 261 Iowa Administrative Code,Chapter 23,shall
be added to the Activity Budget and used to further eligible Activity objectives as defined in the Contract and the Scope of Work in the
Disaster Recovery Application for funding. Program income received after the Contract End Date shall be returned to IDED,or may be
used in another CDBG Contract that is"open"when the Program Income is received. For entitlement cities funded directly by this
contract,program income received after the end date of this contract shall be used as program income for their regular
entitlement city CDBG program. Proceeds totaling less than$25,000 from any CDBG Contract or Contracts received in one year
would not be considered Program Income.
6.0 INTEREST EARNED. To the extent that interest is earned on advances of CDBG funds,this interest shall be returned to IDED,
except that the Recipient may keep interest amounts of up to$100 per year for administrative expenses.
7.0 SUSPENSION. When the Recipient has failed to comply with the Contract,award conditions or standards,IDED may,on reasonable
notice to the Recipient,suspend the Contract and withhold future payments,or prohibit the Recipient from incurring additional
obligations of CDBG funds. Suspension may continue until the Recipient completes the corrective action as required by IDED. IDED
may allow such necessary and proper costs which the Recipient could not reasonably avoid during the period of suspension provided
IDED concludes that such costs meet the provisions of HUD regulations issued pursuant to OMB Circular A-87.
CDBG Contract Number 08-DRB-205
Page 2 of 4
8.0 TERMINATION.
(a) FOR CAUSE. IDED may terminate the Contract in whole,or in part,whenever IDED determines that the Recipient has failed to
comply with the terms and conditions of the Contract.
(b) FOR CONVENIENCE. IDED,the Recipient may terminate the Contract in whole,or in part,when all parties agree that the
continuation of the Activity would not produce beneficial results commensurate with the future disbursement of funds.
(c) DUE TO REDUCTION OR TERMINATION OF CDBG FUNDING. At the discretion of IDED,the Contract may be
terminated in whole,or in part, if there is a reduction or termination of CDBG funds to the State.
9.0 PROCEDURES UPON TERMINATION.
(a) NOTICE. IDED shall provide written notice to the Recipient of the decision to terminate,the reason(s)for the termination,and
the effective date of the termination. If there is a partial termination due to a reduction in funding,the notice will set forth the
change in funding and the changes in the approved budget. The Recipient shall not incur new obligations beyond the effective date
and shall cancel as many outstanding obligations as possible. IDED's share of noncancellable obligations which IDED determines
were properly incurred prior to notice of cancellation will be allowable costs.
(b) RIGHTS IN PRODUCTS. All finished and unfinished documents,data,reports,or other material prepared by the Recipient
under the Contract shall,at IDED option,become the property of IDED.
(c) RETURN OF FUNDS. The Recipient shall return to IDED all unencumbered funds within one week of receipt of the notice of
termination. Any costs previously paid by IDED which are subsequently determined to be unallowable through audit,monitoring,
or closeout procedures shall be returned to IDED within thirty(30)days of the disallowance.
10.0 ENFORCEMENT EXPENSES. The Recipient shall pay upon demand any and all reasonable fees and expenses of the Department,
including the fees and expenses of their attorneys,experts and agents, in connection with the exercise or enforcement of any of the rights
of the Department under this Contract.
11.0 INDEMNIFICATION. The Recipient shall indemnify and hold harmless the Department, its officers and employees,from and against
any and all losses,accruing or resulting from any and all claims subcontractors,laborers and any other person,firm or corporation
furnishing or supplying work,services,materials or supplies in connection with the performance of this Contract,and from any and all
claims and losses accruing or resulting to any person,firm or corporation who may be injured or damaged by the Recipient in the
performance of this Contract.
12.0 CONFLICT OF INTEREST.
(a) GENERAL. Except for the use of CDBG funds to pay salaries and other related administrative or personnel costs,no persons
identified in paragraph(b)below who exercise or have exercised any functions or responsibilities with respect to CDBG assisted
Activities or who are in a position to participate in a decision making process or gain inside information with regard to such
Activities,may obtain a personal or financial interest or benefit from a CDBG assisted Activity,or have an interest in any contract,
subcontract or agreement with respect thereto,or the proceeds thereunder,either for themselves or those with whom they have
family or business ties,during their tenure or for one year thereafter.
(b) PERSONS COVERED. The conflict of interest provisions described above apply to any person who is an employee,agent,
consultant,officer,or elected or appointed official of the Recipient,or of any designated public agencies,or sub-recipients which
are receiving CDBG funds.
(c) CONFLICTS OF INTEREST. Chapter 68B,Code of Iowa,the"Iowa Public Officials Act,"shall be adhered to by the Recipient,
its officials and employees.
13.0 USE OF DEBARRED,SUSPENDED,OR INELIGIBLE CONTRACTORS OR SUB-RECIPIENTS. CDBG funds shall not be
used directly or indirectly to employ,award contracts to,or otherwise engage the service of,or fund any contractor or sub-recipient
during any period of debarment,suspension,or placement in ineligible status under the provisions of 24 CFR Part 24 or any applicable
law or regulation of the Department of Labor.
CDBG Contract Number 08-DRB-205
Page 3 of 4
14.0 CIVIL RIGHTS.
(a) DISCRIMINATION IN EMPLOYMENT. The Recipient shall not discriminate against any qualified employee or applicant for
employment because of race,color,religion,sex,national origin,age,or physical or mental disability. The Recipient may take
affirmative action to ensure that applicants are employed and that employees are treated without regard to their race,color,religion,
sex,national origin,age,or disability. Such action shall include but may not be limited to the following:employment,upgrading,
demotion or transfers;recruitment or recruitment advertising;lay-off or termination;rates of pay or other forms of compensation;
and selection for training, including an apprenticeship. The Recipient agrees to post notices setting forth the provisions of the
nondiscrimination clause in conspicuous places so as to be available to employees.
(b) CONSIDERATION FOR EMPLOYMENT. The Recipient shall,in all solicitations or advertisements for employees placed by
or on behalf of the Recipient,state that all qualified applicants will receive consideration for employment without regard to race,
color,religion,sex,national origin,age,disability,or familial status. Solicitation and Advertisement-The Recipient shall list all
suitable employment openings in the State Employment Service local offices.
(c) CIVIL RIGHTS COMPLIANCE IN EMPLOYMENT. The Recipient shall comply with all relevant provisions of the Iowa
Civil Rights Act of 1965 as amended. Iowa Code Section 19B.7,Federal Executive Order 11246,as amended;Title VI of the U.S.
Civil Rights Act of 1964 as amended(42 U.S.C. Section 2000d et seq.),the Fair Labor Standards Act
(29 U.S.C.Section 201 et seq.),The Americans with Disabilities Act,as applicable,(P.L. 101-336,42 U.S.C. 12101-12213),
Section 504 of the Rehabilitation Act of 1973 as amended(29 U.S.C. Section 794),and the Age Discrimination Act of 1975 as
amended(42 U.S.C. Section 6101 et seq.). The Recipient will furnish all information and reports requested by the State of Iowa or
required by or pursuant to the rules and regulations thereof and will permit access to payroll and employment records by the State
of Iowa to investigate compliance with these rules and regulations.
(d) CERTIFICATION REGARDING GOVERNMENT-WIDE RESTRICTION ON LOBBYING. The Recipient certifies,to the
best of his or her knowledge and belief,that:
i) No Federal appropriated funds have been paid or will be paid,by or on behalf of the Recipient,to any person for influencing
or attempting to influence an officer or employee of any agency,a Member of Congress,an officer or employee of Congress,
or an employee of a Member of Congress in connection with the awarding of any Federal contract,the making of any Federal
grant,the making of any Federal loan,the entering into of any cooperative agreement,and the extension,continuation,
renewal,amendment,or modification of any Federal contract,grant,loan,or cooperative agreement.
ii) If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting
to influence an officer or employee of any agency,a Member of Congress,an officer or employee,or an employee of a
Member of congress in connection with this Federal contract,grant, loan,or cooperative agreement,the Recipient shall
complete and submit Standard Form-LLL,"Disclosure Form to Report Federal Lobbying"in accordance with its instruction.
iii) The Recipient shall require that the language of this certification be included in the award documents for all subawards at all
tiers(including subcontracts,subgrants,and contracts under grants, loans,and cooperative agreements)and that all sub-
recipients shall certify and disclose accordingly.
This certification is a material representation of fact upon which reliance was placed when this transaction was made or
entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by
section 1352,title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of
not less than$10,000 and not more than$100,000 for each such failure.
(e) PROGRAM NONDISCRIMINATION. The Recipient shall conform with requirements of Title VI of the Civil Rights Act of
1964(42 U.S.C.2000d et seq.)and HUD regulations issued pursuant thereto contained in 24 CFR Part 1. No person in the United
States shall on the basis of race,color,national origin,sex or religion or religious affiliation be excluded from participation in,be
denied the benefits of,or be subjected to discrimination under any program or Activity funded in whole or in part with funds made
available through this Contract. Any prohibition against discrimination on the basis of age under the Age Discrimination Act of
1975(42 U.S.C.6101 et.seq.)or with respect to an otherwise qualified individual with a disability as provided in the Americans
with Disabilities Act,as applicable,(P.L. 101-336,42 U.S.C. 12101-12213)or Section 504 of the Rehabilitation Act of 1973
(29 U.S.C.Section 794)shall also apply to any such program or Activity.
(f) FAIR HOUSING. The Recipient shall comply with Title VIII of the Civil Rights Act of 1968(42 U.S.C. 3601 et seq.),generally
known as the Fair Housing Act,and with HUD regulations found at 24 CFR Part 107,issued in compliance with Federal Executive
CDBG Contract Number 08-DRB-205
Page 4 of 4
Order 11063. as amended by Federal Executive Order 12259. The recipient shall also comply with Section 109,Title I of the
Housing and Community Development Act of 1974,as amended.
(g) SECTION 3 COMPLIANCE. The Recipient shall comply with provisions for training,employment,and contracting in
accordance with Section 3 of the Housing and Urban Development Act of 1968(12 U.S.C. 1701u).
(h) NONCOMPLIANCE WITH THE CIVIL RIGHTS LAWS. In the event of the Recipient's noncompliance with the
nondiscrimination clauses of this Contract or with any of the aforesaid rules,regulations,or requests,this Contract may be
canceled,terminated,or suspended either wholly or in part. In addition,the State of Iowa may take further action,imposing other
sanctions and invoking additional remedies as provided by the Iowa Civil Rights Act of 1965(Chapter 216,Code of Iowa 2007)or
as otherwise provided by law.
(i) INCLUSION IN SUBCONTRACTS. The Recipient will include the provisions of the preceding paragraphs of Section 14 in
every subcontract unless exempt by the State of Iowa,and said provisions will be binding on each subcontractor. The Recipient
will take such action with respect to any subcontract as the State of Iowa may direct as a means of enforcing such provisions
including sanctions for noncompliance. In the event the Recipient becomes involved in or is threatened by litigation with a
subcontractor or vendor as a result of such direction by the State of Iowa,the Recipient may request the State of Iowa to enter into
such litigation to protect the interests of the State of Iowa.
15.0 POLITICAL ACTIVITY. No portion of program funds shall be used for any partisan political activity or to further the election or
defeat of any candidate for public office. Neither the program nor the funds provided therefore,nor the personnel employed in the
administration of this Contract,shall be in any way or to any extent,engaged in the conduct of political activities in contravention of
The Hatch Act(5 U.S.C. 15).
16.0 LIMIT ON RECOVERY OF CAPITAL COSTS. The Recipient will not attempt to recover any capital costs of public improvements
assisted in whole or part under this Contract 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
(i)funds received under this Contract 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 Title I of the Housing and Community Development Act
of 1974,as amended,or(ii)for purposes of assessing any amount against properties owned and occupied by persons of low and
moderate income who are not persons of very low income,the Recipient has certified to the Department that it lacks sufficient funds
received under Title I of the Housing and Community Development Act of 1974,as amended,to comply with the requirements of clause
(i)above.
Attachment C
CDBG Program Waivers for the
Supplemental Appropriations Act of 2008
I 7244 Federal Register/Vol. 74, No. 29/Friday, February 13, 2009/Notices
This process is conducted in accordance Visa Waiver Program(VWP)and is authorized by statute and regulations
with 5 CFR 1320.10. requires that VWP travelers provide to waive statutory and regulatory
DATES:Written comments should be information electronically to CBP before requirements and specify alternative
received on or before March 16,2009. embarking on travel to the United requirements for this purpose,upon the
ADDRESSES:Interested persons are States.The recent expansion of the VWP request of the state grantees.This Notice
invited to submit written comments on to include seven additional countries also describes the common application,
the proposed information collection to resulted in a change to the burden hours eligibility,and administrative waivers
of this collection of information. and the common alternative and
the Office of Information and Regulatory
Affairs,Office of Management and Current Actions:This submission is statutory requirements for the grants.
Budget.Comments should be addressed being made to extend the expiration This Notice also grants to additional
to Nathan Lesser,Desk Officer, date. state allocatees the waivers included in
Department of Homeland Security/ Type of Review:Extension(with the Federal Register published on
Customs and Border Protection,and change). September 11,2008 (73 FR 52870).
sent via electronic mail to Affected Public:Individuals. DATES:Effective Date:February 18,
oira submission@omb.eop.gov or faxed Estimated Number of Respondents(I- 2009.
to(202) 395-6974. 94 and I-94W):30,924,380. FOR FURTHER INFORMATION CONTACT:
SUPPLEMENTARY INFORMATION:U.S. Estimated Number of Respondents Jessie Handforth Kome,Director,
Customs and Border Protection(CBP) (ESTA):18,000,000. Disaster Recovery and Special Issues
encourages the general public and Estimated Time per Response(I--94 Division,Office of Block Grant
and I-94W):8 minutes.
affected Federal agencies to submit Estimated Time per Response(ESTA): Assistance,Department of Housing and
written comments and suggestions on Urban Development,451 7th Street,
proposed and/or continuing information 15 minutes.Est SW.,Room 7286,Washington,DC
Hours
collection requests pursuant to the i:8,623,249.mated Total Annual Burden 20410,telephone number 202-708-
Paperwork Reduction Act of 1995 (Pub. Estimated Total Annualized Cost on 3587.Persons with hearing or speech
L.104-13).Your comments should the Public:$185,546,280. impairments may access this number
address one of the following four points: If additional information is required, via TTY by calling the Federal
(1)Evaluate whether the proposed Information Relay Service at 800-877-
contact:Tracey Denning,U.S.Customs
collection of information is necessary and Border Protection, 1300 8339.Facsimile inquiries may be sent to
for the proper performance of the Pennsylvania Avenue,NW.,Room Ms.Kome at 202-401-2044. (Except for
functions of the agency/component, 3.2.C,Washington,DC 20229,at 202- the"800"number,these telephone
including whether the information will 344-1429. numbers are not toll free.)
have practical utility; SUPPLEMENTARY INFORMATION:
(2)Evaluate the accuracy of the Dated:February 6,2009.
agencies/components estimate of the Tracey Denning, Authority To Grant Waivers
burden of the proposed collection of Agency Clearance Officer,Information The Consolidated Security,Disaster
information,including the validity of Services Branch. Assistance,and Continuing
the methodology and assumptions used; [FR Doc.E9-3120 Filed 2-12-09;8:45 am] Appropriations Act, 2009(Pub.L. 110-
(3)Enhance the quality,utility,and BILLING CODE 9111-14-P 329,approved September 30,2008)
clarity of the information to be (hereinafter,"Second 2008 Act"to
collected;and differentiate it from the earlier 2008
(4)Minimize the burden of the DEPARTMENT OF HOUSING AND Supplemental Appropriations Act,Pub.
collections of information on those who URBAN DEVELOPMENT L. 110-252,approved June 30, 2008)
are to respond,including the use of appropriates$6.5 billion,to remain
appropriate automated,electronic, [Docket No.FR-5256-N-01] available until expended,in CDBG
mechanical,or other technological Allocations and Common Application funds for necessary expenses related to
collection techniques or other forms of and Reporting Waivers Granted to and disaster relief,long-term recovery,and
information technology,e.g.,permitting Alternative Requirements for restoration of infrastructure,housing
electronic submission of responses. Community Development Block Grant and economic revitalization in areas
Title:Arrival and Departure Record, (CDBG)Disaster Recovery Grantees affected by hurricanes,flooding,and
Nonimmigrant Visa Waiver Arrival/ Under 2008 Supplemental CDBG other natural disasters that occurred
Departure,the Electronic System for Appropriations during 2008,for which the President
Travel Authorization(ESTA). declared a major disaster under title IV
OMB Number:1651-0111. AGENCY:Office of the Secretary,HUD. of the Robert T.Stafford Disaster Relief
Form Numbers:1-94 and I-94W. ACTION:Notice of allocations,waivers, and Emergency Assistance Act(42
Abstract:Form I-94 (Arrival/ and alternative requirements. U.S.C. 5121 et seq.).A rescission of
Departure Record)and Form I-94W $377,139,920(Pub.L. 110-161,
(Nonimmigrant Visa Waiver Arrival/ SUMMARY:This Notice advises the public approved December 26,2007),and a
Departure Record)are used to document of the initial allocation of grant funds statutory set-aside of$6.5 million for
a traveler's admission into the United for CDBG disaster recovery grants for HUD administrative costs reduces the
States.These forms include date of the purpose of assisting in the recovery amount to be distributed to
arrival,visa classification and the date in areas covered by a declaration of $6,116,360,080.The Second 2008 Act
the authorized stay expires.The forms major disaster under title IV of the authorizes the Secretary to waive,or
are also used by business employers and Robert T. Stafford Disaster Relief and specify alternative requirements for any
other organizations to confirm legal Emergency Assistance Act(42 U.S.C. provision of any statute or regulation
status in the United States.The 5121 et seq.)as a result of natural that the Secretary administers in
Electronic System for Travel disasters that occurred in 2008.As connection with the obligation by the
Authorization(ESTA)applies to aliens described in the SUPPLEMENTARY Secretary or use by the recipient of these
traveling to the United States under the INFORMATION section of this Notice,HUD funds and guarantees,except for
Federal Register/Vol. 74, No. 29/Friday, February 13, 2009/Notices 7245
requirements related to fair housing, justified and published in the Federal disasters occurring in 2008, for which
nondiscrimination,labor standards,and Register. the President declared a major disaster
the environment(including Except as described in this Notice, under title IV of the Robert T.Stafford
requirements concerning lead-based statutory and regulatory provisions Disaster Relief and Emergency
paint),upon a request by the state governing the CDBG program for states, Assistance Act(42 U.S.C.5121 et seq.).
explaining why such waiver is required including those at 24 CFR part 570, The Second 2008 Act further notes:
to facilitate the use of such funds or shall apply to the use of these funds.In
guarantees and a finding by the accordance with the Second 2008 Act, That funds provided under this heading
HUD will reconsider everywaiver in shall be administered through an entity or
Secretary that such a waiver would not entities designated by the Governor of each
be inconsistent with the overall purpose this Notice on the 2 year anniversary of state* * *Provided further,that funds
of Title I of the Housing and Community the day this Notice is published. allocated under this heading shall not
Development Act of 1974(HCD Act). Additional Waivers adversely affect the amount of any formula
Additionally,regulatory waiver assistance received by a state under the
Each state receiving an allocation may Community Development Fund:Provided
authority is provided by 24 CFR 5.110,
request additional waivers from the further,that each state may use upto 5
91.600,and 570.5.The following Department as needed to address the percent of its allocation for admiistrative
application and reporting waivers and specific needs related to that state's costs.
alternative requirements are in response recovery activities.The Department will
to requests from the states receiving an respond separately to the state's HUD computes allocations based on
allocation under this Notice. requests for waivers of provisions not data that are generally available and that
The Secretary finds that the following covered in this Notice,after working cover all the eligible affected areas.
waivers and alternative requirements,as with the state to tailor the program to Congress also required that states devote
described below,are necessary to best meet the unique disaster recovery "not less than 650,000,000"to support
facilitate use of the funds for the needs in its impacted areas. "repair,rehabilitation,and
statutorypurposes and are not reconstruction(including demolition,
P P Allocations site clearance and remediation)of the
inconsistent with the overall purpose of This Notice makes available$2.145 affordable rental housing stock
Title I of the HCD Act or the Cranston billion of the$6.1165 billion of (including public and other HUD-
Gonzalez National Affordable Housing supplemental appropriation for the assisted housing) in the impacted areas
Act,as amended. CDBG program for necessary expenses where there is a demonstrated need as
Under the requirements of the Second related to disaster relief,long-term determined by the Secretary."HUD
2008 Act and the Department of recovery,and restoration of expects each grantee receiving an
Housing and Urban Development infrastructure,housing,and economic allocation to use the prorated share
Reform Act of 1989(the HUD Reform revitalization in areas affected by indicated in the allocation table for
Act),regulatory waivers must be hurricanes,floods,and other natural affordable rental housing activities.
Affordable
State Allocation housing
minimum•
Arkansas $20,294,857 $2,156,733
Florida 17,457,005 1,855,155
Georgia 4,570,779 485,736
Illinois 41,984,121 4,461,649
Indiana 95,042,622 10,100,172
Iowa 125,297,142 13,315,318
Kentucky 3,217,686 341,943
Louisiana 438,223,344 46,569,962
Mississippi 6,283,404 667,737
Missouri 13,979,941 1,485,647
Puerto Rico 17,982,887 1,911,040
Tennessee 20,636,056 2,192,992
Texas 1,314,990,193 139,743,911
Wisconsin 25,039,963 2,660,995
Total 2,145,000,000 227,948,990
In determining the allocations,HUD damaged homes in areas where more proceed to prepare and submit an
focused on two factors: than 20 percent of the homes Action Plan for disaster recovery in
• Unmet housing needs.This is each experienced damage. accordance with this Notice,although
state's(or Puerto Rico's)relative share of In the first quarter of calendar year HUD will not be able to make the grant
estimated unmet housing needs for 2009,HUD will make a final review of until the allocations and waivers are
property owners experiencing serious long-term disaster recovery needs for all published in the Federal Register.
damage to their homes;and states affected by disasters in 2008 to Therefore,HUD commits to swiftly
• Concentrated damage.To determine allocate the remaining$3.972 billion. determining,announcing,and
infrastructure and economic This review will include unmet publishing the additional allocations
revitalization needs,HUD focused on housing,infrastructure,and economic once the data are available.
areas of particular concentration of revitalization needs. HUD invites each grantee receiving an
damage—specifically,each state's(or A state included in the subsequent allocation under the Second 2008 Act to
Puerto Rico's)share of seriously announcement may immediately submit an Action Plan for Disaster
7246 Federal Register/Vol. 74, No. 29/Friday, February 13, 2009/Notices
Recovery in accordance with this Each state eligible for a disaster at 70 percent of the aggregate of the
Notice. recovery grant receives annual CDBG funds used for support of activities
The Second 2008 Act requires funds allocations,has a consolidated plan,a producing benefit to low-and moderate-
be used only for specific purposes.The citizen participation plan,a monitoring income persons. Since extensive
statute directs that each grantee will plan,and has made CDBG certifications. damage to community structures and
describe,in its Action Plan for Disaster HUD encourages each CDBG disaster housing affected those with varying
Recovery,criteria for eligibility and how recovery grantee to carry out CDBG incomes,and income-producing jobs are
the use of the grant funds will address disaster recovery activities in the often lost for a period of time following
long-term recovery and infrastructure context of its ongoing community a disaster,HUD is waiving the 70
restoration,housing,and economic development program to the extent percent overall benefit requirement and
revitalization.HUD will monitor feasible(for example,by selecting establishing the 50 percent requirement
compliance with this direction and may activities consistent with the in order to give grantees even greater
be compelled to disallow expenditures consolidated plan,by providing overall flexibility to carry out recovery
if it finds uses of funds do not meet the benefit to at least 70 percent low-and activities within the confines of the
statutory purposes,or that funds moderate-income persons,and by CDBG program's national objectives.
allocated duplicate other benefits.HUD holding hearings or meetings to solicit HUD may provide additional waivers of
encourages grantees to contact their public comment). this requirement only if the Secretary
assigned HUD offices for guidance in The waivers,alternative requirements, specifically finds a compelling need to
complying with these requirements and statutory changes described in this further reduce or eliminate the
duringdevelopment of their Action Notice apply only to the CDBG
Plans or Disaster Recoveryor if theysupplemental disaster recovery fundsrequiremen percentage requirement.The
have any questions regaring meetin appropriated in the Second 2008 Act of the three national objectives of the
t each activity meet ne
these requirements. • and,where applicable,the
As provided for in the Second 2008
CDBG program is not waived.
.Supplemental Appropriations Act,2008
Act,the funds may not be used for (Pub.L. 110-252,approved June 30, Consistency With the Consolidated Plan
activities reimbursable by or for which 2008),and not to funds provided under
funds are made available by the Federal the regular CDBG program or those HUD is waiving the requirement for
Emergency Management Agency provided under any other component of consistency with the consolidated plan
(FEMA)or the Army Corps of Engineers. the CDBG program,such as the because the effects of a major disaster
Further,none of the funds may be used Neighborhood Stabilization Program. usually alter a grantee's priorities for
as the required match,share,or These actions provide additional meeting housing,employment,and
contribution for another federal flexibility in program design and infrastructure needs.To emphasize that
program. implementation and implement uses of grant funds must be consistent
statutory requirements unique to this with the overall purposes of the HCD
Prevention of Fraud,Abuse,and appropriation. Act,HUD is limiting the scope of the
Duplication of Benefits Application for Allocations Under the waiver for consistency with the
The Second 2008 Act also directs the Second 2008 Act consolidated plan;the waiver applies
Secretary to: only until the grantee first updates its
These waivers and alternative consolidated plan priorities following
Establish procedures to prevent recipients requirements streamline the pre-grant the disaster.
from receiving any duplication of benefits process and set the guidelines for states'
and report quarterly to the Committees on applications for their allocations.HUD Action Plan for Disaster Recovery
Appropriations with regard to all steps taken encourages each grantee that receives an
to prevent fraud and abuse of funds made HUD is waiving the CDBG action plan
available under this headingincludingallocation to submit an Action Plan for
Disaster Recoveryto HUD as soon as requirements and substituting an Action
duplication of benefits. Plan for Disaster Recovery.This will
practicable following an allocation
To meet this directive,HUD is announcement. allow rapid implementation of disaster
pursuing four courses of action.First, recovery grant programs and ensure
this Notice includes specific reporting, Overall Benefit to Low-and Moderate- conformance with provisions of the
Income Persons Second 2008 Act.Where possible,the
written procedures,monitoring,and
internal audit requirements for grantees. Pursuant to explicit authority in the Action Plan for Disaster Recovery,
Second,to the extent its resources Second 2008 Act,HUD is granting an including certifications,does not repeat
allow,HUD will institute risk analysis overall benefit waiver that allows for up common action-plan elements the
and on-site monitoring of grantee to 50 percent of the grant to assist grantee has already committed to carry
management of the grants and of the activities under the urgent need or out as part of its annual CDBG
specific uses of funds.Third,HUD will prevention or elimination of slums or submission.Although a state as the
be extremely cautious in considering blight national objectives,rather than grantee may designate an entity or
any waiver related to basic financial the 30 percent allowed under the annual entities to administer the funds,the
management requirements.The state CDBG program.The primary state is responsible for compliance with
standard,time-tested CDBG financial objective of Title I of the HCD Act and federal requirements.During the course
requirements will continue to apply. of the funding program of each grantee of the grant,HUD will monitor the
Fourth,HUD is collaborating with the is"development of viable urban state's use of funds and its actions for
HUD Office of Inspector General to plan communities,by providing decent consistency with the Action Plan.The
and implement oversight of these funds. housing and a suitable living state may submit an initial partial
Waiver Justification environment and expanding economic Action Plan and amend it one or more
opportunities,principally for persons of times subsequently until the Action
This section of the Notice briefly low and moderate income."The statute Plan describes uses for the total grant
describes the basis for each waiver and goes on to set the standard of amount.The state may also amend
related alternative requirements,if any. performance for this primary objective activities in its Action Plan.
I
Federal Register/Vol. 74, No. 29/Friday, February 13, 2009/Notices 7247
Citizen Participation submits it to HUD. (Funds can be drawn identified the use of subrecipients as a
The citizen participation waiver and from the line of credit only for an practice that increases the risk of abuse
activity that is established in an Action of funds.However,HUB's experience is alternative requirements will permit a
more streamlined public process,but Plan in DRGR.) that this risk can be successfully
one that still provides for reasonable After completing the environmental managed by following the CDBG
public notice,appraisal,examination, reviews)pursuant to 24 CFR part 58 entitlement requirements and related
and comment on the activities proposed and as applicable,receiving from HUD guidance.Therefore,HUD is requiring
for the use of CDBG disaster recovery or the state an approved Request for that when using subrecipients,a state
grant funds.The waiver removes the Release of Funds and certification,the taking advantage of the waiver allowing
requirement at both the grantee and grantee may draw down funds from the it to carry out activities directly must
state grant recipient levels for public line of credit. follow the alternative requirements
hearings or meetings as the method for Grantees are cautioned that,despite drawn from the CDBG entitlement rule
the expedited application and plan
disseminating information or collecting process,they are still responsible for and specified in this Notice.
citizen comments. ensuring that all citizens have equal Re ortin
Normally,in the CDBG program,a access to information about the P g
grantee takes at least 30 days soliciting programs.Among other things,this HUD is waiving the annual reporting
comment from its citizens before it means that each grantee must ensure requirement because Congress requires
submits an annual action plan to HUD, that program information is available in quarterly reports from the grantees and
which then has 45 days to accept or the appropriate languages for the from HUD on various aspects of the uses
reject the plan.To expedite the process geographic area served by the of funds and on the activities funded
and to ensure that the disaster recovery jurisdiction.This will be an issue with these grants.Many of the data
grants are awarded in a timely manner, particularly for states that this notice is elements the grantees will report to
while preserving reasonable citizen allowing to make grants throughout the Congress quarterly are the same as those
participation,HUD is waiving the state,including into regular CDBG that HUD will use to exercise oversight
requirement that the grantee follow its entitlement areas if these entitlements g
citizen participationplan to the extent for compliance with the requirements of
P P are included in a relevant disaster this Notice and for revention of fraud,
necessary to allow for a grantee to declaration.Because regular state CDBG P
abuse of funds,and duplication of
submit an Action Plan for Disaster
funds are not used in entitlement areas, benefits.To collect these data elements
Recovery in an expedited manner.HUD state CDBG staffs may not be aware of
is shortening the minimum time for limited-English-proficient(LEP) and to meet its reporting requirements,
citizen comments and is requiring the speaking populations in those HUD is requiring each grantee to report
proposed Action Plan for Disaster metropolitan jurisdictions. to HUD quarterly using the online DRGR
Recovery and any amendment thereof to system,which uses a streamlined,
be posted on the grantee's official Web Administration Limitation Internet-based format.Grantees will also
site as the plan or amendment is State program administration use the recently enhanced DRGR to
developed,published,and submitted to requirements must be modified to be record obligations and to make draws of
HUD. consistent with the Second 2008 Act, funds from the line of credit established
In combination,this Notice's which allows up to 5 percent of the for each grant.HUD will use the
alternative requirements provide the grant to be used for administrative costs, transactional data from DRGR and from
following expedited steps for disaster whether by the state,by entities grantee reports to monitor for anomalies
recovery grants: designated by the state,by units of local or performance problems that suggest
• Proposed Action Plan for Disaster government,or by subrecipients.The fraud,abuse of funds,and duplication
Recovery published via the usual provisions at 42 U.S.C.5306(d)and 24 of benefits;to reconcile budgets,
methods and on the Internet for no less CFR 570.489(a)(1)(i)and(iii)will not obligations,funding draws,and
than 7 calendar days of public apply to the extent that they cap state expenditures;to calculate applicable
comment; administration expenditures and require administrative and public service
• Final Action Plan posted on the a dollar-for-dollar match of state funds limitations and the overall percent of
Internet and submitted to HUD(grant for administrative costs exceeding benefit to low-and moderate-income
application includes Standard Form 424 $100,000.HUD does not waive 24 CFR persons;to report to Congress and the
(SF-424)and certifications;other parts 570.489(a)(3),which will allow the state public; and as a basis for risk analysis
of the Action Plan may initially be to fund planning activities that may in determining a monitoring plan. r
submitted either via Disaster Recovery exceed the 5 percent limitation on Thegrantee mustpost the quarterly
Grant Reporting(DRGR)or paper); general administrative costs. q y
• HUD expedites review; report on an Internet site for its citizens
• HUD accepts the plan and prepares Use of Subrecipients within 3 days of the report's submission
a cover letter,grant agreement,and The state CDBG program rule does not to HUD. If a grantee chooses,it may use
grant conditions; make specific provision for the this report,together with a statement
• Grant agreement signed by HUD treatment of entities called regarding any sole source procurements,
and immediately transmitted to the "subrecipients"in the CDBG as its required quarterly submission to
grantee; entitlement program.The waiver the Committees on Appropriations.
• Grantee signs and returns the grant allowing the state to directly carry out Each quarter,HUD will submit to the
agreements; activities creates a situation in which Committees a summary description of
• HUD establishes the line of credit the state may use subrecipients to carry its report reviews,of other HUD
and the grantee requests and receives out activities in a manner similar to monitoring and technical assistance
DRGR access (if the grantee does not entitlement communities rather than activities undertaken during the quarter,
already have it); use a method of distributing funds to and of any significant conclusions
• If it has not already done so,grantee local governments.HUD and its Office related to fraud or abuse of funds or
creates an Action Plan in DRGR and of Inspector General have long duplication of benefits.
7248 Federal Register/Vol. 74, No. 29/Friday, February 13, 2009/Notices
Eligibility—Housing Related related to acquisition and relocation or certificate),provided that the tenant
The waiver of Section 105(a)of the requirements under the Uniform is also provided with referrals to
1974 Act to allow new housing Relocation Assistance and Real Property suitable,available rental replacement
construction,and of Section 105(a)(24), Acquisition Policies Act of 1970,as dwellings where the owner is willing to
to allow homeownership assistance for amended, (42 U.S.C.4601 et seq.) participate in the TBRA program,and
families whose income is up to 120 (URA),and the replacement of housing the period of authorized assistance is at
and relocation assistance provisions least 42 months.Failure to grant the percent of median income and payment
of up to 100 percent of a housing down under section 104(d)of the HCD Act(42 waiver would impede disaster recovery
payment,is necessary following major U.S.C.5304(d)).The states asked for whenever TBRA program subsidies are
disasters in which large numbers of waivers to help promote the acquisition available but funds for cash relocation
of real property and relocation of assistance are limited.This waiver gives affordable housing units have been
damaged or destroyed,as is the case in displaced persons in a timely and states an additional relocation resource
the disasters eligible under this Notice. efficient manner. option.
The broadening of the Section CDBG funds are federal financial The URA and implementing
105(a)(24)waiver,in accordance with assistance.Therefore,CDBG-assisted regulations are waived to the extent that
the states'requests,will allow each state programs or projects are subject to the they require a grantee to offer a person
to implement mixed-use housing URA and the governmentwide displaced from a dwelling the option to
recovery programs included in its HUD- implementing regulations at 49 CFR part receive a"moving expense and
accepted action plan. 24.The URA's protection and assistance dislocation allowance"based on the
apply to acquisitions of real property current schedule of allowances prepared
Anti-Pirating and displacements resulting from the by the Federal Highway Administration,
The limited waiver of the job acquisition,rehabilitation,or provided that the grantee establishes
relocation requirements allows the demolition of real property for CDBG- and offers the person a moving expense
flexibility for a state to provide assisted programs or projects.The URA and dislocation allowance under a
assistance to a business located in provides assistance and protections to schedule of allowances that is
another state or another market area individuals and businesses affected by reasonable for the jurisdiction and takes
within the same state if the business federal or federally assisted projects. into account the number of rooms in the
was displaced from a declared area HUD is waiving the following URA displacement dwelling,whether the
within the state by the disaster and requirements to help promote person owns and must move the
wishes to return.This waiver is accessibility to suitable decent,safe,and furniture,and,at a minimum,the kinds
necessary to allow a grantee affected by sanitary housing for victims of of expenses described in 49 CFR 24.301.
a major disaster to rebuild its hurricanes and flooding in 2008. Failure to suspend this provision would
employment base. The acquisition requirements of the impede disaster recovery by requiring
URA and implementing regulations are grantees to offer allowances that do not
Expanded Distribution and Direct waived so that they do not apply to an reflect current local labor and
Action arm's length voluntary purchase carried transportation costs.Persons displaced
The waivers and alternative out by a person who does not have the from a dwelling remain entitled to
requirements allowing distribution of power of eminent domain,in choose a payment for actual reasonable
funds by a state to entitlement connection with the purchase and moving and related expenses if they
communities and Indian tribes,and to occupancy of a principal residence by find that approach preferable to the
allow a state to carry out activities that person.The failure to suspend locally established moving expense and
directly,rather than distribute all funds these requirements would impede dislocation allowance.
to units of local government,are disaster recovery and may result in In addition to the URA waivers,HUD
consistent with waivers granted for windfall payments. is waiving requirements of section
previous,similar disaster recovery A limited waiver is granted of the 104(d)of the HCD Act dealing with one-
cases.HUD believes that,in using very URA's implementing regulations to the for-one replacement of lower-income
similar statutory language to that used extent that they require grantees to dwelling units demolished or converted
for the CDBG supplemental provide URA financial assistance in connection with a CDBG-assisted
appropriations for Hurricane Katrina, sufficient to reduce the displaced development project for housing units
Rita,and Wilma recovery,Congress is person's post-displacement rent/utility damaged by one or more disasters.HUD
signaling its intent that the states under cost to 30 percent of household income. is waiving this requirement because it
this appropriation also be able to carry The failure to suspend these one-size- does not take into account the large,
out activities directly.Therefore,HUD is fits-all requirements could impede sudden changes a major disaster may
waiving program requirements in order disaster recovery.To the extent that a cause to the local housing stock,
to support this intent.HUD is also tenant has been paying rent in excess of population,or local economy.Further,
including in this Notice the necessary 30 percent of household income without the requirement does not take into
complementary waivers and alternative demonstrable hardship,rental account the threats to public health and
requirements related to subrecipients,to assistance payments to reduce tenant safety and to economic revitalization
ensure proper management and costs to 30 percent would not be that may be caused by the presence of
disposition of funds during grant required. disaster-damaged housing structures
execution and at closeout. The URA and implementing that are unsuitable for rehabilitation.As
regulations are waived to the extent it stands,the requirement would
Relocation Requirements necessary to permit a grantee to meet all impede disaster recovery and
The states have indicated that they or a portion of a grantee's replacement discourage grantees from converting or
plan or wish to facilitate the ability of housing financial assistance obligation demolishing disaster-damaged housing
their local government grantees to to a displaced renter by offering rental because of excessive costs that would
engage in voluntary acquisition and housing through a tenant-based rental result from replacing all such units
relocation activities (in a form often assistance(TBRA)housing program within the specified time frame.HUD is
called"buyouts"),by using waivers subsidy(e.g.,Section 8 rental voucher also waiving the relocation assistance
Federal Register/Vol. 74, No. 29/Friday, February 13. 2009/Notices 7249
requirements contained in section uses the funds for additional eligible Applicable Rules,Statutes,Waivers,
104(d)of the HCD Act to the extent that activities under the annual CDBG and Alternative Requirements;Pre-
they differ from those of the URA(42 program.The HCD Act allows the state Grant Process
U.S.C.4601 et seq.).This change will to require return of the program income 1. General note.Prerequisites to a
simplify implementation while to the state under certain circumstances. grantee's receipt of CDBG disaster
preserving statutory protections for This Notice waives the existing statute recovery assistance include adoption of
persons displaced by projects assisted and regulations to give the states,in all a citizen participation plan;publication
with CDBG disaster recovery grant circumstances,the choice of whether a of its proposed Action Plan for Disaster
funds. local government receiving a Recovery;public notice and comment;
Although the Second 2008 Act distribution of CDBG disaster recovery and submission to HUD of an Action
precludes the use of these disaster funds and using program income for Plan for Disaster Recovery,including
recovery CDBG grants for federal cost activities in the Action Plan may retain certifications.Except as described in
share or match,some disaster recovery this income and use it for additional this Notice,statutory and regulatory
CDBG funds used to support buyouts disaster recovery activities.In addition, provisions governing the CDBG program
and relocation activities may be used in this Notice allows program income to for states,including those at 42 U.S.C.
support of programs receiving FEMA the disaster recovery grant generated by 5301 et seq.and 24 CFR part 570,shall
funding.The statutory requirements of activities undertaken directly by the apply to the use of these funds.
the URA are also applicable to the state or its agent(s),to retain the original 2. Overall benefit waiver and
administration of FEMA mitigation disaster recovery grant's alternative
funding,and disparities in rental requirements and waivers and to remain alternative requirement.The
assistance payments for activities under the state's discretion until grant requirements at 42 U.S.C. 5301(c),42
funded by HUD and FEMA will thus be closeout,at which point any program U.S.C. 5304(b)(3)(A),and 24 CFR
eliminated.FEMA is subject to the income on hand or received 570.484 that 70 percent of funds are for
requirements of the URA.Pursuant to subsequently will become program activities that benefit low-and
this authority,FEMA requires that income to the state's annual CDBG moderate income persons are waived to
rental assistance payments be calculated program.The alternative requirements stipulate that at least 50 percent of
on the basis of the amount necessary to provide all the necessary conforming disaster recovery grant funds are for
lease or rent comparable housing for a changes to the program income activities that principally benefit low-
period of 42 months.HUD is also regulations. and moderate-income persons.
subject to these requirements,but is also 3.Direct grant administration by
covered by alternative relocation Certifications states and means of carrying out eligible
provisions authorized under 42 U.S.C. HUD is waiving the standard activities.Requirements at 42 U.S.C.
• 5304(d)(2)(A)(iii)and(iv),and certifications and substituting 5306 are waived to the extent necessary
implementing regulations at 24 CFR alternative ones.The alternative to allow a state to use its disaster
42.350.These alternative relocation certifications are tailored to CDBG recovery grant allocation directly to
benefits,available to low-and moderate- disaster recovery grants and remove carry out state-administered activities
income displacees opting to receive certifications and references that are eligible under this Notice.Activities
them in certain HUD programs,require redundant or appropriate to the annual eligible under this Notice may be
the calculation of similar rental CDBG formula program. undertaken,subject to state law,by the
assistance payments on the basis of 60 Waivers and Alternative Requirements recipient through its employees,or
months,rather than 42 months,thereby for Grants Under the Supplemental through procurement contracts,or
creating a disparity between the through loans or grants under
available benefits offered by HUD and Appropriations Act,2008 agreements with subrecipients,or by
FEMA(although not always an actual In HUD's December 19,2008 Federal one or more entities that are designated
cash difference).The waiver assures Register notice(73 FR 77818),HUD by the chief executive officer of the
uniform and equitable treatment by published supplemental disaster state.Unless a waiver provides
allowing the URA benefits requirements recovery allocations and notified the otherwise,activities made eligible under
to be the standard for assistance under states that received an initial fund section 105(a)(15) of the HCD Act,as
this Notice. allocation under that Notice that they amended,may only be undertaken by
could apply the waivers and alternative entities specified in that section,
Program Income requirements of HUD's September 11, whether the assistance is provided to
A combination of CDBG provisions 2008 Federal Register notice(73 FR such an entity from the state or from a
limits the flexibility available to the 52870),if they requested those waivers unit of general local government.
states for the use of program income. from HUD.Today's Federal Register 4. Consolidated Plan waiver.
Prior to 2002,program income earned Notice notifies Congress and the public Requirements at 42 U.S.C.12706 and 24
on disaster recovery grants had usually that the states receiving initial CFR 91.325(a)(5),that housing activities
been program income in accordance allocations under the December 19, undertaken with CDBG funds be
with the rules of the regular CDBG 2008 Notice have,with one exception, consistent with the strategic plan,are
program of the applicable state and had requested all the waivers and alternative waived.Further,42 U.S.C.5304(e),to
lost its disaster recovery grant identity, requirements under HUD's September the extent that it would require HUD to
thus losing use of the waivers and 11,2008 notice,and that HUD is annually review grantee performance
streamlined alternative requirements. granting them.The exception is the under the consistency criteria,also is
Also,the state CDBG program rule and State of Minnesota,which did not waived.These waivers apply only until
law are designed for a program in which request the waivers that would allow it the time that the grantee first updates
the state distributes all funds rather than to carry out activities directly or to the consolidated plan priorities
carrying out activities directly.The HCD facilitate flood buyouts.Those waivers following the disaster.
Act specifically provides for a local and alternative requirements,therefore, 5. Citizen participation waiver and
government receiving CDBG grants from do not apply to Minnesota's grant;all alternative requirement.Provisions of
a state to retain program income if it the others do. 42 U.S.C. 5304(a)(2)and(3),42 U.S.C.
7250 Federal Register/Vol. 74, No. 29/Friday, February 13, 2009/Notices
12707, 24 CFR 570.486,and 24 CFR During the term of this grant,the grantee undertake to address emergency sheiter
91.115(b),with respect to citizen will provide citizens,affected local and transitional housing needs of
participation requirements,are waived governments,and other interested homeless individuals and families
and replaced by the requirements parties with reasonable and timely (including subpopulations),to prevent
below.The streamlined requirements do access to information and records low-income individuals and families
not mandate public hearings at either relating to the Action Plan and to the with children(especially those with
the state or local government level,but grantee's use of this grant. incomes below 30 percent of median)
do require providing a reasonable e.The grantee will provide a timely from becoming homeless,to help
opportunity(at least 7 days)for citizen written response to every citizen homeless persons make the transition to
comment and ongoing citizen access to complaint.Such response will be permanent housing and independent
information about the use of grant provided within 15 working days of the living,and to address the special needs
funds.The streamlined citizen receipt of the complaint,if practicable. of persons who are not homeless
participation requirements for this grant 6.Modify requirement for identified in accordance with 24 CFR
are: consultation with local governments. 91.315(d);
a.Before the grantee adopts the action Currently,the statute and regulations c.Monitoring standards and
plan for this grant or any substantial require consultation with affected units procedures that are sufficient to ensure
amendment to this grant,the grantee of local government in the program requirements,including non-
will publish the proposed plan or nonentitlement area of the state duplication of benefits,are met and that
amendment(including the information regarding the state's proposed method of provide for continual quality assurance,
required in this Notice for an Action distribution.HUD is waiving 42 U.S.C. investigation,and internal audit
Plan for Disaster Recovery).The manner 5306(d)(2)(C)(iv),24 CFR 91.325(b),and functions with responsible staff
of publication must include prominent 24 CFR 91.110,with the alternative reporting independently to the Governor
posting on the state,local,or other requirement that the state consult with of the state or,at a minimum,to the
relevant Internet site and must afford all disaster-affected units of general chief officer of the governing body of
citizens,affected local governments,and local government,including any CDBG- any designated administering entity;
other interested parties a reasonable entitlement communities,in d.A description of the steps the state
opportunity to examine the plan or determining the use of funds. will take to avoid or mitigate
amendment's contents.Subsequent to 7.Action Plan waiver and alternative occurrences of fraud,abuse,and
publication,the grantee must provide a requirement.The requirements at 42 mismanagement.especially with respect
reasonable time frame and method(s) U.S.C. 12705(a)(2),42 U.S.C. 5304(a)(1), to accounting,procurement,and
(including electronic submission)for 42 U.S.C. 5304(m),42 U.S.C. accountability,with a description of
receiving comments on the plan or 5306(d)(2)(C)(iii),24 CFR 1003.604,and how the state will provide for increasing
substantial amendment.The grantee's 24 CFR 91.320 are waived for these the capacity for implementation and
plans to minimize displacement of disaster recovery grants.Each state must compliance of local government grant
persons or entities and to assist any submit to HUD an Action Plan for recipients,subrecipients,subgrantees,
persons or entities displaced must be Disaster Recovery that describes: contractors,and any other entity
published with the Action Plan. a.The effects of the covered disasters, responsible for administering activities
b.In the Action Plan,each grantee especially in the most affected areas and under this grant;and
will specify its criteria for determining populations,and the greatest recovery e.Method of distribution.The state's
what changes in the grantee's activities needs resulting from the covered method of distribution shall include
constitute a substantial amendment to disasters that have not been addressed descriptions of the method of allocating
the plan.At a minimum,adding or by insurance proceeds,other federal funds to units of local government and
deleting an activity or changing the assistance,or any other funding source; descriptions of specific projects the state
planned beneficiaries of an activity will b.The grantee's overall plan for will carry out directly,as applicable.
constitute a substantial change.The disaster recovery including: The descriptions will include:
grantee may modify or substantially (1)How the state will promote sound (1)When funds are to be allocated to
amend the Action Plan if it follows the short-and long-term recovery planning units of local government,all criteria
same procedures required in this Notice at the state and local levels,especially used to select applications from local
for the preparation and submission of an land-use decisions that reflect governments for funding,including the
Action Plan for Disaster Recovery.The responsible flood plain management, relative importance of each criterion,
grantee must notify HUD,but is not removal of regulatory barriers to and a description of how the disaster
required to notify the public,when it reconstruction,and prior coordination recovery grant resources will be
makes any plan amendment that is not with planning requirements of other allocated among all funding categories
substantial. state and federal programs and entities; and the threshold factors and grant size
c.The grantee must consider all (2)How the state will encourage limits that are to be applied;and
comments received on the Action Plan construction methods that emphasize (2)When the state will carry out
or any substantial amendment and high quality,durability,energy activities directly,the projected uses for
submit to HUD a summary of those efficiency,sustainability,and mold the CDBG disaster recovery funds,by
comments and the grantee's response, resistance,including how the state will responsible entity,activity,and
with the Action Plan or substantial promote enactment and enforcement of geographic area;
amendment, modern building codes and mitigation (3)How the method of distribution to
d.The grantee must make the Action of flood risk,where appropriate;and local governments or use of funds
Plan,any substantial amendments,and (3)How the state will provide or described in accordance with the above
all performance reports available to the encourage provision of adequate,flood- subparagraphs will result in eligible
public on the Internet and on request.In resistant housing for all income groups uses of grant funds related to long-term
addition,the grantee must make these that lived in the disaster-affected areas recovery from specific effects of the
documents available in a form prior to the incident date(s)of the disaster(s)or restoration of
accessible to persons with disabilities applicable disaster(s),including a infrastructure,housing,and economic
and non-English-speaking persons. description of the activities it plans to revitalization;and
Federal Register/Vol. 74, No. 29/Friday. February 13, 2009/Notices 7251
(4)Sufficient information so that instead to distribute funds to activities government,that was constructed or
citizens,units of general local assisting a declared county or counties improved with CDBG funds,less the
government,and other eligible and eligible under this Notice without costs incidental to the generation of the
subgrantees or subrecipients will be able regard to the status of a local income;
to understand and comment on the government or Indian tribe under any (v)Payments of principal and interest
Action Plan and,if applicable,be able Other CDBG program. on loans made using CDBG funds;
to prepare responsive applications to b.Additionally,because the state (vi)Proceeds from the sale of loans
the state. grantees under this appropriation have made with CDBG funds;
f.Required certifications (see the requested a waiver to carry out activities (vii)Proceeds from the sale of
applicable Certifications section of this directly,HUD is applying the obligations secured by loans made with
Notice);and regulations at 24 CFR 570.480(c)with CDBG funds;
g.A completed and executed federal respect to the basis for HUD (viii)Interest earned on program
form SF-424. determining whether the state has failed income pending disposition of the
8.Allow reimbursement for pre- to carry out its certifications so that income,but excluding interest earned
agreement costs.The provisions of 24 such basis shall be that the state has on funds held in a revolving fund
CFR 570.489(b)are applied to permit a failed to carry out its certifications in account;
grantee to reimburse itself for otherwise compliance with applicable program (ix)Funds collected through special
allowable costs incurred on or after the requirements.Also,24 CFR 570.494 assessments made against properties
incident date of the covered disaster. regarding timely distribution of funds is owned and occupied by households not
9. Clarifying note on the process for waived.However,HUD expects each of low-and moderate-income,where the
environmental release of funds when a state grantee to expeditiously obligate special assessments are used to recover
state carries out activities directly. and expend all funds,including any all or part of the CDBG portion of a
Usually,a state distributes CDBG funds recaptured funds or program income, public improvement;and
to units of local government and takes and to carry out activities in a timely (x)Gross income paid to a state,tribe,
on HUD's role in receiving manner. or a unit of general local government or
environmental certifications from the 12.Program income alternative subrecipient from the ownership
grant recipients and approving releases requirement.42 U.S.C. 5304(j)and 24 interest in a for-profit entity acquired in
of funds.For this grant,HUD will allow CFR 570.489(e)are waived to the extent return for the provision of CDBG
a state grantee to also carry out activities necessary to allow additional flexibility assistance.
directly instead of distributing them to in the administration of program (2) "Program income"does not
other governments.According to the income. include the following:
environmental regulations at 24 CFR a.Program income. (i)The total amount of funds which
58.4,when a state carries out activities (1)For the purposes of this subpart, is less than$25,000 received in a single
directly,the state must submit the "program income"is defined as gross year,that is retained by a unit of general
certification and request for release of income received by a state,a unit of local government,tribe,or subrecipient;
funds to HUD for approval. general local government,a tribe or a (ii)Amounts generated by activities
10.Duplication of benefits.In general, subrecipient of a state,a unit of general eligible under section 105(a)(15)of the '
42 U.S.C.5155 (section 312 of the local government or a tribe that was HCD Act and carried out by an entity
Robert T.Stafford Disaster Assistance generated from the use of CDBG funds, under the authority of section 105(a)(15)
and Emergency Relief Act,as amended) except as provided in paragraph(a)(2)of of the HCD Act;
prohibits any person,business concern, this section.When income is generated (3)The state may permit the unit of
or other entity from receiving financial by an activity that is only partially general local government or tribe which
assistance with respect to any part of a assisted with CDBG funds,the income receives or will receive program income
loss resulting from a major disaster as to shall be prorated to reflect the to retain the program income,subject to
which he has received financial percentage of CDBG funds used(e.g., a the requirements of paragraph(a)(3)(ii)
assistance under any other program or single loan supported by CDBG funds of this section,or the state may require
from insurance or any other source.The and other funds;a single parcel of land the unit of general local government or
Second 2008 Act stipulates that funds purchased with CDBG funds and other tribe to pay the program income to the
may not be used for activities funds).Program income includes,but is state.
reimbursable by or for which funds have not limited to,the following: (i)Program income paid to the state.
• been made available by FEMA or by the (i)Proceeds from the disposition by Program income that is paid to the state
Army Corps of Engineers. sale or long-term lease of real property or received by the state is treated as
11. Waiver and alternative purchased or improved with CDBG additional disaster recovery CDBG
requirement for distribution to CDBG funds; funds subject to the requirements of this
metropolitan cities and urban counties. (ii)Proceeds from the disposition of Notice and must be used by the state or
a. Section 5302(a)(7) of title 42,U.S.C. equipment purchased with CDBG funds; distributed to units of general local
(definition of"nonentitlement area") (iii)Gross income from the use or government in accordance with the
and provisions of 24 CFR part 570 that rental of real or personal property state's Action Plan for Disaster
would prohibit a state from distributing acquired by the unit of general local Recovery.To the maximum extent
CDBG funds to units of general local government or tribe or subrecipient of a feasible,program income shall be used
government regardless of their status in state,a tribe or a unit of general local or distributed before the state makes
the entitlement CDBG program and to government with CDBG funds,less the additional withdrawals from the U.S.
Indian tribes,are waived,including 24 costs incidental to the generation of the Treasury,except as provided in
CFR 570.480(a),to the extent that such income; paragraph(b) of this section.
provisions limit the distribution of (iv)Gross income from the use or (ii)Program income retained by a unit
funds to units of general local rental of real property owned by a state, of general local government or tribe.
government located in entitlement areas tribe,or the unit of general local (A)Program income that is received
and to state or federally recognized government or a subrecipient of a state, and retained by the unit of general local
Indian tribes.The state is required tribe or unit of general local government or tribe before closeout of
7252 Federal Register/Vol. 74, No. 29/Friday, February 13, 2009/Notices
the grant that generated the program c.Transfer of program income. must be,and the initial Action Plan for
income is treated as additional disaster Notwithstanding other provisions of this Disaster Recovery may be,submitted in
recovery CDBG funds and is subject to Notice,the state may transfer program hard copy.)As additional information
the requirements of this Notice. income before closeout of the grant that about uses of funds becomes available to
(B)Program income that is received generated the program income to its the grantee,the grantee must enter such
and retained by the unit of general local own annual CDBG program or to any detail into DRGR,in sufficient detail to
government or tribe after closeout of the annual CDBG-funded activities serve as the basis for acceptable
grant that generated the program administered by a unit of general local performance reports.
income,but that is used to continue the government or Indian tribe within the b.Each grantee must submit a
disaster recovery activity that generated state. quarterly performance report,as HUD
the program income,is subject to the d.Program income on hand at the prescribes,no later than 30 days
waivers and alternative requirements of state or at its subrecipients at the time following each calendar quarter,
this Notice. of grant closeout by HUD and program beginning after the first full calendar
(C)All other program income is income received by the state after such quarter after grant award and continuing
subject to the requirements of 42 U.S.C. grant closeout shall be program income until all funds have been expended and
5304(j)and subpart I of 24 CFR part 570. to the most recent annual CDBG all expenditures reported.Each
(D)The state shall require units of program grant of the state. quarterly report will include
general local government or tribes,.to 13.Note that use of grant funds must information about the uses of funds
the maximum extent feasible,to relate to the purposes of the Second during the applicable quarter including
disburse program income that is subject 2008 Act.In addition to being eligible (but not limited to)the project name,
to the requirements of this Notice before under 42 U.S.C. 5305(a)or this Notice activity,location,and national
requesting additional funds from the and meeting a CDBG national objective, objective;funds budgeted,obligated,
state for activities,except as provided in the Second 2008 Act requires that drawn down,and expended;the
paragraph(b)of this section. activities funded under this Notice must funding source and total amount of any
b.Revolving funds. also be for necessary expenses related to non-CDBG disaster funds;beginning
(1)The state may establish or permit disaster relief,long-term recovery,and and ending dates of activities;and
units of general local government or restoration of infrastructure,housing, performance measures such as numbers
tribes to establish revolving funds to and economic revitalization in areas of low-and moderate-income persons or
carry out specific,identified activities. affected by hurricanes,flooding,and households benefiting.Quarterly reports
A revolving fund,for this purpose,is a other natural disasters that occurred in to HUD must be submitted using HUD's
separate fund(with a set of accounts 2008,for which the President declared Internet-based DRGR system and,within
that are independent of other program a major disaster under title IV of the 3 days of submission,be posted on the
accounts)established to carry out Robert T.Stafford Disaster Relief and grantee's official Internet site open to
specific activities which,in turn, Emergency Assistance Act(42 U.S.C. the public.
generate payments to the fund for use in 5121 et seq.)as a result of the specific 15. Use of subrecipients.The
carrying out such activities.These natural disaster or disasters for which following alternative requirement
payments to the revolving fund are the state received a funding allocation. applies for any activity that a state
program income and must be 13a.Note on change to administration carries out directly by funding a
substantially disbursed from the limitation.Up to 5 percent of the grant subrecipient:
revolving fund before additional grant amount may be used for administrative a. 24 CFR 570.503,except that
funds are drawn from the U.S.Treasury costs.The provisions of 42 U.S.C. specific references to 24 CFR parts 84
for revolving fund activities.Such 5306(d)and 24 CFR 570.489(a)(1)(i)and and 85 need not be included in
program income is not required to be (iii)will not apply to the extent that subrecipient agreements.
disbursed for nonrevolving fund they cap state administration b. 24 CFR 570.502(b),except that
activities. expenditures,limit a state's ability to HUD recommends but does not require
(2)The state may also establish a charge a de minimis application fee for application of the requirements of 24
revolving fund to distribute funds to grant applications for activities the state CFR part 84.
units of general local government or carries out directly,and require a dollar- 16.Record keeping.Recognizing that
tribes to carry out specific,identified for-dollar match of state funds for the state may carry out activities
activities.A revolving fund,for this administrative costs exceeding directly, 24 CFR 570.490(b) is waived in
purpose,is a separate fund(with a set $100,000.HUD does not waive 24 CFR such a case and the following
of accounts that are independent of 570.489(a)(3),which will allow the state alternative provision shall apply:State
other program accounts)established to to carry out planning activities that may records.The state shall establish and
fund grants to units of general local exceed the 5 percent limitation on maintain such records as may be
government to carry out specific general administrative costs. necessary to facilitate review and audit
activities which,in turn,generate by HUD of the state's administration of
payments to the fund for additional Reporting CDBG disaster recovery funds under 24
grants to units of general local 14. Waiver of performance report and CFR 570.493. Consistent with applicable
government to carry out such activities. alternative requirement.The statutes,regulations,waivers and
Program income in the revolving fund requirements for submission of a alternative requirements,and other
must be disbursed from the fund before Performance Evaluation Report(PER) federal requirements,the content of
additional grant funds are drawn from pursuant to 42 U.S.C. 12708 and 24 CFR records maintained by the state shall be
the U.S.Treasury for payments to units 91.520 are waived.The alternative sufficient to:enable HUD to make the
of general local government that could requirement is that: applicable determinations described at
be funded from the revolving fund. a.Each grantee must submit its Action 24 CFR 570.493;make compliance
(3)A revolving fund established by Plan for Disaster Recovery,includingdeterminations for
activities carried ou
t
either the state or unit of general local performance measures,into HUD's UD's directly by the state;and show how government shall not be directly funded Internet-based DRGR system. (The activities funded are consistent with the
or capitalized with grant funds. signed certifications and the SF-424 descriptions of activities proposed for
Federal Register/Vol. 74, No. 29/Friday, February 13, 2009/Notices 7253
funding in the Action Plan.For fair a. One-for-one replacement provided that the grantee establishes
housing and equal opportunity requirements at 42 U.S.C. 5304(d)(2) and offers the person a moving expense
purposes,and as applicable,such and (d)(3),and 24 CFR 42.375(a)are and dislocation allowance under a
records shall include data on the racial, waived for lower-income dwelling schedule of allowances that is
ethnic,and gender characteristics of units:(1) damaged by the disaster, (2) reasonable for the jurisdiction and takes
persons who are applicants for, for which CDBG funds are used for into account the number of rooms in the
participants in,or beneficiaries of the conversion or demolition,and(3)which displacement dwelling,whether the
program. are not suitable for rehabilitation. person owns and must move the
17. Change of use of real property. b.Relocation assistance requirements furniture,and,at a minimum,the kinds
This waiver conforms the change of use at 42 U.S.C. 5304(d)(2)(A)and 24 CFR of expenses described in 49 CFR 24.301.
of real property rule to the waiver 42.350 are waived,to the extent that 22.Notes on flood buyouts:
allowing a state to carry out activities they differ from those of the URA and a.Payment of pre-flood values for
directly.For purposes of this program, its implementing regulation at 49 CFR buyouts.HUD disaster recovery state
in 24 CFR 570.489(j), (j)(1),and the last Part 24,for activities involving buyouts grant recipients and Indian tribes have
sentence of(j)(2),"unit of general local and other activities covered by the URA the discretion to pay pre-flood or post-
government"shall be read as"unit of and related to disaster recovery flood values for the acquisition of
activities assisted by the funds covered properties located in a floodway or
general local government or state."
18.Responsibility for state review and by this Notice and included in an floodplain.In using CDBG disaster
handling of noncompliance.This approved Action Plan. recovery funds for such acquisitions,the
c.The requirements at 49 CFR grantee must uniformlyapply
change conforms the rule with the PP Y
waiver allowing the state to carry out 24.101(b)(2)(i)—(ii)are waived to the whichever valuation method it chooses.
activities directly. 24 CFR 570.492 is extent that they apply to an arm's length b.Ownership and maintenance of
voluntary purchase carried out by a acquired property.Any property
waived and the following alternative
requirement applies:The state shall person who does not have the power of acquired with disaster recovery grants
eminent domain,in connection with the funds being used to match FEMA
make reviews and audits,including on
purchase and occupancy of a principal Section 404 Hazard Mitigation Grant
site reviews of any subrecipients,
units of residence by that person. Program funds is subject to section
designatedel public c agencies,
, andma be d.The requirements at sections 204(a) 404(b)(2) of the Robert T.Stafford
general localo agppropriate to meet the and 206 of the URA.49 CFR 24.2, Disaster Relief and Emergency
nt of section 104(e)(21m of the 24.402(b)(2),and 24.404 are waived to Assistance Act,as amended,which
HCD Act,requirementsa amended, s modified bythe extent that they require the state to requires that such property be dedicated
provide URA financial assistance and maintained in perpetuity for a use
this Notice.In the case of sufficient to reduce the displaced that is compatible with open space,
noncompliance with these person's post-displacement rent/utility recreational,or wetlands management
requirements,the state shall take such cost to 30 percent of household income. practices.In addition,with minor
actions as may be appropriate to prevent To the extent that a tenant has been exceptions,no new structure may be
a continuance of the deficiency,mitigate paying rent in excess of 30 percent of erected on the property and no
any adverse effects or consequences, household income without subsequent application for federal
and prevent a recurrence.The state shall demonstrable hardship,rental disaster assistance may be made for any
establish remedies for noncompliance assistance payments to reduce tenant purpose.The acquiring entity may want
by any designated public agencies or costs to 30 percent would not be to lease such property to adjacent
units of general local governments and required.Before using this waiver,the property owners or other parties for
for its subrecipients. state must establish a definition of compatible uses in return for a
19.Housing-related eligibility waivers. "demonstrable hardship." maintenance agreement.Although
42 U.S.C.5305(a)is waived to the extent e.The requirements of sections 204 federal policy encourages leasing rather
necessary to allow homeownership and 205 of the URA,and 49 CFR than selling such property,the property
assistance for households with up to 24.402(b)are waived to the extent maybe sold.In all cases,a deed
120 percent of area median income and necessary to permit a grantee to meet all restriction or covenant running with the
downpayment assistance for up to 100 or a portion of a grantee's replacement land must require that the property be
percent of the down payment(42 U.S.C. housing financial assistance obligation dedicated and maintained for
5305(a)(24)(D))and to allow new to a displaced tenant by offering rental compatible uses in perpetuity.Although
housing construction. housing through a TBRA housing the funds under this Notice may not be
20. Waiver and modification of the job program subsidy(e.g.,Section 8 rental used as a match or cost share for FEMA
relocation clause to permit assistance to voucher or certificate),provided that the programs,HUD urges grantees carrying
help a business return.42 U.S.C. tenant is also provided referrals to out buyouts with funds under this
5305(h)and 24 CFR 570.482 are hereby suitable,available rental replacement Notice to consider implementing the
waived only to allow the grantee to dwellings where the owner is willing to same or similar use restrictions on
provide assistance under this grant to participate in the TBRA program,and properties acquired under CDBG-
any business that was operating in the the period of authorized assistance is at assisted buyouts.
covered disaster area before the incident least 42 months. c.Future federal assistance to owners
date of the applicable disaster and has f.The requirements of section 202(b) remaining in floodplain.
since moved,in whole or in part,from of the URA and 49 CFR 24.302 are (1) Section 582 of the National Flood
the affected area to another state or to waived to the extent that they require a Insurance Reform Act of 1994,as
a labor market area within the same grantee to offer a person displaced from amended, (42 U.S.C. 5154a)prohibits
state to continue business. a dwelling the option to receive a flood disaster assistance in certain
"moving expense and dislocation circumstances.In general,it provides
Relocation Requirements
allowance"based on the current that no federal disaster relief assistance
21. Waiver of one-for-one replacement schedule of allowances prepared by the made available in a flood disaster area
of units damaged by disaster. Federal Highway Administration, may be used to make a payment
7254 Federal Register/Vol. 74, No. 29/Friday, February 13, 2009/Notices
(including any loan assistance payment) assistance provided with respect to the d.The state certifies that the Action
to a person for repair,replacement,or property. Plan for Disaster Recovery is authorized
restoration for damage to any personal, d.The notification requirements under state law and that the state,and
residential,or commercial property if apply to personal,commercial,or any entity or entities designated by the
that person at any time has received residential property for which federal state,possess(es)the legal authority to
federal flood disaster assistance that was disaster relief assistance made available carry out the program for which it is
conditional on the person first having in a flood disaster area has been seeking funding,in accordance with
obtained flood insurance under provided,prior to the date on which the applicable HUD regulations and this
applicable federal law and the person property is transferred,for repair, Notice.
has subsequently failed to obtain and replacement,or restoration of the e.The state certifies that it will
maintain flood insurance as required property,if such assistance was comply with the acquisition and
under applicable federal law on such conditioned upon obtaining flood relocation requirements of the URA,as
property. (Section 582 is self- insurance in accordance with applicable amended,and implementing regulations
implementing without regulations.)This federal law with respect to such at 49 CFR part 24, except where waivers
means that a grantee may not provide property. or alternative requirements are provided
disaster assistance for the above- e.The term"Federal disaster relief for this grant.
mentioned repair,replacement, or assistance"applies to HUD or other f.The state certifies that it will
restoration to a person who has failed to federal assistance for disaster relief in comply with section 3 of the Housing
meet this requirement. "flood disaster areas."The term"flood and Urban Development Act of 1968(12
(2)Section 582 also implies a disaster area"is defined in section U.S.C. 1701u),and implementing
responsibility for a grantee that receives 582(d)(2)of the National Flood regulations at 24 CFR part 135.
CDBG disaster recovery funds or that, Insurance Reform Act of 1994,as g.The state certifies that it is
under 42 U.S.C.5321,designates amended,to include an area receiving a following a detailed citizen
annually appropriated CDBG funds for presidential declaration of a major participation plan that satisfies the
disaster recovery.That responsibility is disaster or emergency as a result of requirements of 24 CFR 91.115 (except
to inform property owners receiving flood conditions. as provided for in notices providing
disaster assistance that triggers the flood 23.Information collection approval waivers and alternative requirements for
insurance purchase requirement that note.HUD has approval for information this grant),and that each unit of general
they have a statutory responsibility to collection requirements in accordance local government that is receiving -
notify any transferee of the requirement with the Paperwork Reduction Act of assistance from the state is following a
to obtain and maintain flood insurance, 1995 (44 U.S.C. 3501-3520)under OMB detailed citizen participation plan that
and that the transferring owner maybe control number 2506-0165.In satisfies the requirements of 24 CFR
liable if he or she fails to do so.These accordance with the Paperwork 570.486(except as provided for in
requirements are described below. Reduction Act,HUD may not conduct or notices providing waivers and
(3)Duty to notify.In the event of the sponsor,nor is a person required to alternative requirements for this grant).
transfer of any property described in respond to,a collection of information, h.The state certifies that it has
paragraph d.,the transferor shall,not unless the collection displays a valid consulted with affected units of local
later than the date on which such control number. government in counties designated in
transfer occurs,notify the transferee in covered major disaster declarations in
Certifications
writing of the requirements to: the nonentitlement,entitlement,and
(i)Obtain flood insurance in 24. Certifications for state tribal areas of the state in determining
accordance with applicable federal law governments,waiver,and alternative the method of distribution of funding.
with respect to such property,if the requirement.Section 91.325 of title 24 i.The state certifies that it is
property is not so insured as of the date of the Code of Federal Regulations is complying with each of the following
on which the property is transferred; waived.Each state must make the criteria:
and following certifications prior to (1)Funds will be used solely for
(ii)Maintain flood insurance in receiving a CDBG disaster recovery necessary expenses related to disaster
accordance with applicable federal law grant: relief,long-term recovery,and
with respect to such property.Such a.The state certifies that it will restoration of infrastructure in areas
written notification shall be contained affirmatively further fair housing,which covered by a declaration of major
in documents evidencing the transfer of means that it has or will conduct an disaster under title IV of the Robert T.
ownership of the property. analysis to identify impediments to fair Stafford Disaster Relief and Emergency
(4)Failure to notify.If a transferor housing choice within the state,take Assistance Act(42 U.S.C.5121 et seq.)
fails to provide notice as described appropriate actions to overcome the as a result of natural disasters that
above and,subsequent to the transfer of effects of any impediments identified occurred and were declared in 2008.
the property: through that analysis,and maintain (2)With respect to activities expected
(i)The transferee fails to obtain or records reflecting the analysis and to be assisted with CDBG disaster
maintain flood insurance,in accordance actions in this regard. (See 24 CFR recovery funds,the Action Plan has
with applicable federal law,with 570.487(b)(2).) been developed so as to give the
respect to the property; b.The state certifies that it has in maximum feasible priority to activities
(ii)The property is damaged by a effect and is following a residential anti- that will benefit low-and moderate-
flood disaster;and displacement and relocation assistance income families.
(iii)Federal disaster relief assistance plan in connection with any activity (3)The aggregate use of CDBG disaster
is provided for the repair,replacement, assisted with funding under the CDBG recovery funds shall principally benefit
or restoration of the property as a result program. low-and moderate-income families in a
of such damage,the transferor shall be c.The state certifies its compliance manner that ensures that at least 50
required to reimburse the Federal with restrictions on lobbying required percent of the amount is expended for
Government in an amount equal to the by 24 CFR part 87,together with activities that benefit such persons
amount of the federal disaster relief disclosure forms,if required by part 87. during the designated period.
Federal Register/Vol. 74, No. 29/Friday, February 13, 2009/Notices 7255
(4)The state will not attempt to Grant of Waivers for Grants Under the calling the toll-free Federal Information
recover any capital costs of public Supplemental Appropriations Act,2008 Relay Service at 800-877-8339.
improvements assisted with CDBG The states receiving initial allocations Dated:February 10,2009.
disaster recovery grant funds,by under HUD's Federal Register notice Shaun Donovan,
assessing any amount against properties published on December 19, 2003, (73 FR Secretary.
owned and occupied by persons of low- 77818)have,with one exception,
and moderate-income,including any fee [FR C.E9-3216 Filed 2-11-09;11:15 am]
charged or assessment made as a requested all the waivers and alternative BILLING CODE 4210-67-P
HD's
condition of obtaining access to such requirements provided by al Reg
public improvements,unless:(A) September 11,2008,Federal Register
disaster recovery grant funds are used to notice(73 FR.The e,and HUD is DEPARTMENT OF THE INTERIOR
pay the proportion of such fee or granting them.The exception is the
assessment that relates to the capital State of Minnesota,which did not Fish and Wildlife Service
costs of suchpublic improvements that request the waivers that would allow it
p to carry out activities directly or to IDS-R9-EA-2008-N0019;97600-9792-
are financed from revenue sources other 0000-5d]
facilitate flood buyouts.Those waivers
than
a under this tale;or again)for purposes and alternative requirements,therefore, Sport Fishing and Boating Partnership
of owned and occupied bydo not apply to Minnesota's grant;all Council
properties p the others do.
persons of moderate income,the grantee AGENCY:Fish and Wildlife Service,
certifies to the Secretary that it lacks Duration of Funding Interior.
sufficient CDBG funds(in any form)to Availability of funds provisions in 31 ACTION:Notice of meeting.
comply with the requirements of clause U.S.C. 1551-1557,added by section
(A). 1405 of the National Defense SUMMARY:We,Fish and Wildlife
j.The state certifies that the grant will Authorization Act for Fiscal Year 1991 Service,announce a public meeting of
be conducted and administered in (Pub.L. 101-510),limit the availability the Sport Fishing and Boating
conformity with title VI of the Civil of certain appropriations for Partnership Council(Council).
Rights Act of 1964(42 U.S.C.2000d) expenditure.This limitation may not be DATES:The meeting will be held on
and the Fair Housing Act(42 U.S.C. waived.However,the Second 2008 Act Monday,March 2,2009,from 1 p.m.to
3601-3619)and implementing for these grants directs that these funds 5 p.m.and Tuesday,March 3,2009 from
regulations. be available until expended unless,in 8:30 a.m.to 1:30 p.m.(Eastern Time).
k.The state certifies that it has and accordance with 31 U.S.C. 1555,HUD Members of the public wishing to
that it will require units of general local determines that the purposes for which participate in the meeting must notify
government that receive grant funds to the appropriation has been made have Douglas Hobbs by close of business on
certify that they have adopted and are been carried out and no disbursement Monday,February 23,2009,per
enforcing: has been made against the appropriation instructions under SUPPLEMENTARY
A prohibiting the use of for 2 consecutive fiscal years.In such a INFORMATION.
(1) policy
ex(1)Ave force by law enforcement case,HUD shall close out the grant prior ADDRESSES:The meeting will be held at
agencies within its jurisdiction against to expenditure of all funds. the Department of the Interior,in the
any individuals engaged in nonviolent Catalog of Federal Domestic Assistance Room 5160, 1849 C Street,NW.,
civil rights demonstrations;and Washington,DC;telephone(703)358-
The Catalog of Federal Domestic 2336.
(2)A policy of enforcing applicable Assistance numbers for the disaster
state and local laws against physically recovery grants under this Notice are as FOR FURTHER INFORMATION CONTACT:
barring entrance to or exit from a facility follows: 14.219; 14.228. Douglas Hobbs,Council Coordinator,
or location that is the subject of such 4401 North Fairfax Drive,Mailstop
nonviolent civil rights demonstrations Finding of No Significant Impact 3103-AEA,Arlington,VA 22203;
within its jurisdiction. A Finding of No Significant Impact telephone(703)358-2336;fax(703)
1.The state certifies that each state (FONSI)with respect to the 358-2548;or via e-mail at
grant recipient or administering entity
environment has been made in doug_hobbs@fws.gov.
has the capacity to carry out disaster accordance with HUD regulations at 24 SUPPLEMENTARY INFORMATION:In f
recovery activities in a timely manner, CFR part 50,which implement section accordance with the requirements of the
or the state has a plan to increase the 102(2)(C)of the National Environmental Federal Advisory Committee Act,5
capacity of any state grant recipient or Policy Act of 1969(42 U.S.C.4332).The U.S.C.App.,we announce that the Sport
administering entity who lacks such FONSI is available for public inspection Fishing and Boating Partnership
capacity. between 8 a.m.and 5 p.m.weekdays in Council will hold a meeting on Monday,
the Regulations Division,Office of March 2, 2009,from 1 p.m.to 5 p.m.
m.The state certifies that it will not General Counsel,Department of and Tuesday,March 3,2009 from 8:30
use CDBG disaster recovery funds for Housing and Urban Development,451 a.m.to 1:30 p.m.(Eastern time).
any activity in an area delineated as a 7th Street, SW.,Room 10276, The Council was formed in January
special flood hazard area in FEMA's Washington,DC 20410-0500.Due to 1993 to advise the Secretary of the
most current flood advisory maps, security measures at the HUD Interior,through the Director,U.S.Fish
unless it also ensures that the action is Headquarters building,an advance and Wildlife Service,on nationally-
designed or modified to minimize harm appointment to review the docket file significant recreational fishing,boating,
to or within the floodplain,in must be scheduled by calling the and aquatic resource conservation
accordance with Executive Order 11988 Regulations Division at 202-708-3055 issues.The Council represents the
and 24 CFR part 55. (this is not a toll-free number).Hearing- interests of the public and private
n.The state certifies that it will or speech-impaired individuals may sectors of the sport fishing,boating,and
comply with applicable laws. access this number through TTY by conservation communities and is
Attachment D
Requirement for Business Activities for
the CDBG Disaster Recovery
Supplemental Funds
CHAPTER 79
DISASTER RECOVERY BUSINESS RENTAL ASSISTANCE PROGRAM
261-79.1(15) Purpose. The purpose of the disaster recovery business rental assistance program is to
provide financial assistance to a business located in or planning to locate in a business rental space
that was physically damaged by the 2008 natural disaster(s). Assistance will be in the form of rental
assistance to help offset building rental lease payments for a maximum of six months, not to exceed a
total award amount of $50,000. In-home businesses are not eligible for the funds pursuant to this
chapter.
261-79.2(15)Definitions.
"Administrative entity"means a selected city that administers a local disaster recovery program or
a council of government as established in Iowa Code section 28H.1.
"Business"means a corporation, a professional corporation, a limited liability company, a
partnership,a sole proprietorship, or a nonprofit corporation.
"Department"means the Iowa department of economic development established by Iowa Code
chapter 15.
"Disaster-damaged space"means a business rental space that was physically damaged by the
2008 natural disaster(s). This definition includes upper stories of a building that was physically
damaged in the basement or ground floor, or both, as\A ell as a building constructed at the same site to
replace a building that was destroyed due to damage resulting from the 2008 natural disaster(s). In-
home businesses are not eligible for funds pursuant to this chapter.
"Physically damaged"for the purpose of this program means physical damage caused by
flooding, including overland flow, or physical damage caused by tornado. Damage caused by sanitary
or storm sewer backup is not included unless the department determines that such damage was a direct
result of the 2008 natural disaster(s).
261-79.3(15)Eligible business; application review.
79.3(1)An eligible business is a business that:
a. Is located in or planning to locate in a business rental space that was physically damaged by
the 2008 natural disaster(s); and
b. Has entered into or intends to enter into a minimum one-year,market-rate lease.
79.3(2) Applications received from businesses located in or planning to locate in a building in
which the only damage incurred was a result of sanitary or storm sewer backup are subject to review
by the department to determine eligibility. Factors used by the department to determine eligibility
include, but are not limited to, review of insurance claims filed, damage to critical infrastructure and
review of prior sanitary or storm sewer backup.
79.3(3)Applications received from businesses located in or planning to locate in a building that is
zoned residential are subject to review by the department to determine eligibility. Factors used by the
department to determine eligibility include, but are not limited to, review of the rental lease
agreement, business plan and community comprehensive plan.
261-79.4(15)Eligible program activities; maximum amount of assistance.
79.4(1) An eligible business may apply for rental assistance to help offset building rental lease
payments for a maximum of six months.
79.4(2) The maximum amount of program funds available for rental assistance per business is the
equivalent of six months' rent up to a maximum of$50,000.
261-79.5(15)Distribution of funds to administrative entities.
79.5(1) Types of financial assistance available. An administrative entity shall provide financial
assistance to an eligible business in compliance with the terms and conditions described in this rule.
An administrative entity may award funds in the form of a forgivable loan to a business that has
entered into a minimum one-year,market-rate lease agreement. A forgivable loan is a loan that will be
forgiven if the business remains open for the duration of the six-month period for which rental
assistance is awarded.
79.5(2) Allocation of funds_by an administrative entity. Applications will be processed by an
administrative entity. Funds will be distributed upon request to the department from an administrative
entity. The department will process requests for funds as received from an administrative entity no
more frequently than once per week per administrative entity.
79.5(3)Program termination. Funds for this program shall be available through April 30, 2010.
261-79.6(15) Program administration; reporting requirements. Each local administrative entity
shall enter into a contract with an eligible business to provide assistance. The contract shall include
terms and conditions that meet the requirements of these rules as well as provisions to require
repayment if funds are not used in compliance with the program. Each local administrative entity shall
provide oversight and contract administration to ensure that the recipients of program funds are
meeting the contract requirements. Each local administrative entity shall collect data and submit
reports to the department about the program in the form and content required by law.
These rules are intended to implement Iowa Code section 15.109.
CDBG Environmental Review
1. Compliance documentation checklist
a. Complete the contact name and contact phone number
2. Request for release of funds
a. Signature of recipient official
b. Typed/printed name and title
c. Date
If you have any questions about the environmental review documents
please contact Benton Quade at 515.725.3073 or by email at
benton.quade@iowalifechanging.com.
EXEMPT PROJECTS AND
CATEGORICALLY EXCLUDED NOT SUBJECT TO THE RELATED LAWS AND AUTHORITIES
COMPLIANCE DOCUMENTATION CHECKLIST
Complete this checklist ONLY for projects that are either Exempt or Categorically Excluded Not Subject to the Related
Laws and Authorities. If you will complete an EA or if your project is Categorically Excluded Subject to the Related Laws
and Authorities you will asses the effects of these requirements in other environmental reviews.
Recipient Name: City of Waterloo Contract Number: 08-DRB-205
For information on this request, contact:
Contact Name: Contact Phone Number:
Level of Environmental Review Determination: (check one)
• Exempt per 24 CFR 58.34
❑ Categorically Excluded Not Subject to Statutes per 58.35 (b)
You must include this form and pertinent documentation in your Environmental Review Record(ERR).
Runway Clear Zones:
If the project involves assistance, subsidy, or insurance for construction, land purchase or sale, and development;does any of
the following exist within one mile of the project area:
1. Designated primary/commercial airports in Iowa:
Primary Airports
Burlington Burlington Regional
Cedar Rapids The Eastern Iowa International
Des Moines Des Moines International
Dubuque Dubuque Regional
Fort Dodge Fort Dodge Regional
Mason City Mason City Municipal
Sioux City Sioux Gateway
Waterloo Waterloo Municipal
2. Other Commercial Service Airports
Carroll Arthur N.Neu
Ottumwa Ottumwa Industrial
Sheldon Sheldon Municipal
Sioux Center Sioux Center Municipal
Spencer Spencer Municipal
3. Military Airfields
If yes:
1. Contact the airport and acquire a copy of the Runway Clear Zone map(aka runway protection zone)from a non-
military airfield or a Clear Zone map from a military airfield. It is HUD Policy not to provide assistance for projects
located in these zones if they will be occupied frequently by people:
• If the project property is within this zone and not occupied frequently by people,the buyer must sign a
document acknowledging they received the following information about the property:
1. If an aircraft accident were to occur it is more likely to occur within the zone than other areas
around the airport.
2. The airport operator may wish to purchase the property at some point in the future as part of a
clear zone acquisition program.
Keep all documentation in the ERR.
• If the project property is not within this zone: document this in the ERR,compliance is achieved.
Flood Disaster Protection Act of 1973: (42 U.S.C. 40001-4128):
Not applicable because the responsible entity is receiving money as part of a formula grant made to a state.
National Flood Insurance Reform Act of 1994: (42 U.S.0 5154(a)): Certify that assistance in a special flood hazard area as
determined by FEMA will not be used to make a payment to a person for repair, replacement or restoration from flood damage
to any personal,residential, replacement or commercial property if the person has previously received federal flood disaster
assistance and the person failed to obtain and maintain flood insurance.
Costal Barrier Resource Act(16 U.S.0 3501):Not applicable because Iowa is not part of the Costal Barrier Resource system.
FINDING OF CATEGORICAL EXCLUSION: NOT SUBJECT TO
RELATED FEDERAL LAWS AND AUTHORITIES
REQUEST FOR RELEASE OF FUNDS FORM
Recipient: City of Waterloo Contract Number: 08-DRB-205
A finding of categorical exclusion has been made for the following approved activities:
(provide title and description of activities)
Disaster Recovery Business Rental Assistance Program—tenant based rental assistance
This finding is based on the following:
(see instructions for list of categorically excluded activities that are not subject to related Federal
laws and Authorities)
24 CFR, part 58.34(b)(1)
An Environmental Review Record(ERR)supporting the above finding has been prepared and is
available for IDED review and public inspection at the address of the recipient.
As the duly designated certing official of the recipient, I cert that: 1 am authorized to and do consent to
assume the status of responsible federal official under the National Environmental Policy Act of 1969 and each
provision of law designated in the 24 CFR 58.5 list of NEPA-related authorities insofar as the provision of these
laws apply to the HUD responsibilities for environmental review, decision-making and actions that have been
assumed by the grantee. I am authorized to and do accept, on behalf of the recipient and personally, the
jurisdiction of the federal courts for the enforcement of all these responsibilities, in my capacity as certing
officer of the recipient.
�ljln l7 07
Signature of Recipient Official Date
le Q a
Typed/Printed Name and T t e