Hurricane Sandy Community Development Block Grant Disaster Recovery Grants (CDBG-DR)

The overall CDBG program objective is to develop viable urban communities, by providing decent housing and a suitable living environment, and by expanding economic opportunities, principally for persons of low and moderate income.

CDBG DR program funds appropriated by P.L.

113-2 are for
necessary expenses related to disaster relief, long-term recovery, restoration of infrastructure and housing, and economic revitalization in the most impacted and distressed areas resulting from a major disaster declared pursuant to the due to Hurricane Sandy and other eligible events in calendar years 2011, 2012, and 2013.

Agency - Department of Housing and Urban Development

The Department of Housing and Urban Development's mission is to increase homeownership, support community development and increase access to affordable housing free from discrimination. HUD fulfills this mission through high ethical standards, management and accountability, and by forming partnerships with community organizations.

Office - See Regional Agency Offices.

None.

Contact appropriate HUD Field Office listed in Appendix IV of the Catalog.


Program Accomplishments

Fiscal Year 2012: Not applicable. Fiscal Year 2013: During FY13, 27 CDBG DR grants were allocated to local governments and states impacted by Hurricane Sandy and other qualifying events occurring in 2011, 2012, and 2013.. Fiscal Year 2014: Not available.

Uses and Use Restrictions

Recipients may undertake a wide range of activities directed toward disaster relief, long-term recovery, restoration of infrastructure and housing, and economic revitalization.

However, CDBG DR funds may not be used for activities reimbursable by or for which funds are made available by the Federal Emergency Management Agency or the Army Corps of Engineers.

Grantees must conduct an assessment of community impacts and unmet needs to guide the development and prioritization of planned recovery activities and develop their own programs and funding priorities as long as programs/activities conform to the statutory standards and program regulations.

Some of the specific activities that can be carried out with Community Development Block Grant Disaster recovery (CDBG DR) funds include buying damaged properties in a flood plain and relocating residents to safer areas; relocation payments for people and businesses displaced by the disaster; debris removal not covered by FEMA; rehabilitation of homes and buildings damaged by the disaster; buying, constructing, or rehabilitating public facilities such as streets, neighborhood centers, and water, sewer and drainage systems; code enforcement; homeownership activities such as down payment assistance, interest rate subsidies and loan guarantees for disaster victims; public services (generally limited to no more than 15 percent of the grant); helping businesses retain or create jobs in disaster impacted areas; and planning and administration costs (limited to no more than 20 percent of the grant).

Eligible activities must meet at least one of three program national objectives: benefit persons of low and moderate income, aid in the prevention or elimination of slums or blight, or meet other urgent community development needs because existing conditions pose a serious and immediate threat to the health and welfare of the community where other financial resources are not available.

CDBG Disaster Recovery grants primarily benefit low-income residents in and around communities that have experienced a natural disaster.

Generally, grantees must use at least half of Disaster Recovery funds for activities that principally benefit low-and moderate-income persons.

These can be either activities in which all or the majority of people who benefit have low or moderate incomes or activities that benefit an area or service group in which at least 51 percent of the populous are of low- and moderate-income.

Recipients may contract with other local agencies or nonprofit organizations to carry out components of their programs.

Recipients may only carry out eligible activities as listed in 24 CFR 570.201-207 or for which a waiver or alternative requirement has been granted by the Secretary, based upon a determination that good cause exists and that the waiver or alternative requirement is not inconsistent with the overall purposes of Title I of the HCD Act.

Eligibility Requirements

Applicant Eligibility

CDBG Disaster Recovery funds are made available to States and units of general local governments designated by the President of the United States as disaster areas.

These communities must have significant unmet recovery needs and the capacity to carry out a disaster recovery program (usually these are governments that already receive HOME or Community Development Block Grant allocations).

Grantees may use CDBG Disaster Recovery funds for recovery efforts involving housing, economic development, infrastructure and prevention of further damage to affected areas.

However, CDBG DR funds may not be used for activities reimbursable by or for which funds are made available by the Federal Emergency Management Agency or the Army Corps of Engineers.

Beneficiary Eligibility

The principal beneficiaries of CDBG DR funds are low- and moderate-income persons (generally defined as a member of a family having an income equal to or less than the Section 8 low income limit established by HUD) in communities that have experienced a disaster event. Generally, grantees must use at least half of Disaster Recovery funds for activities that principally benefit low-and moderate-income persons. These can be either activities in which all or the majority of people who benefit have low or moderate incomes or activities that benefit an area or service group in which at least 51 percent of the populous are of low- and moderate-income.

Credentials/Documentation

Recipients must certify they will meet program requirements and applicable federal requirements. OMB Circular No. A-87 applies to this program.

Aplication and Award Process

Preapplication Coordination

As a condition of making any grant under this appropriation, the Secretary is required to certify in advance that grantees have in place proficient financial controls and procurement processes and have established adequate procedures to prevent any duplication of benefits as defined by section 312 of the Robert T.

Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C.

5155), to ensure timely expenditure of funds, to maintain comprehensive websites regarding all disaster recovery activities assisted with these funds, and to detect and prevent waste, fraud, and abuse of funds.

An environmental impact assessment is required for this program.

This program is excluded from coverage under E.O.

12372.

Application Procedures

OMB Circular No. A-102 applies to this program. OMB Circular No. A-110 applies to this program. OMB Circular No. A-102 applies to this program. OMB Circular No. A-110 applies to this program. Recipients submit an Action Plan for Disaster Recovery, SF Form 424, and certifications to HUD. In the Action Plan for Disaster Recovery, grantees must describe uses and activities that are authorized under Title I of the Housing and Community Development Act of 1974 (42 U.S.C. 5301 et seq.) (HCD Act) or allowed by a waiver or alternative requirement published in the federal register notice covering the grant funds and also respond to a disaster-related impact. HUD reviews grantee Action Plans within 45 days of receipt and approves the Plan according to criteria identified in the federal register notice covering the grant funds.

Award Procedures

P.L. 113-2 provides that funds shall be awarded directly to a State or unit of general local government (UGLG) at the discretion of the Secretary. To comply with statutory direction that funds be used for disaster-related expenses in the most impacted and distressed areas, the Department computed allocations based on the best available data that cover all the eligible affected areas. States and local governments receiving a CDBG DR allocation may carry out programs and/or activities directly or through subrecipients, including local governments, governmental agencies, and non-profit entities.

Deadlines

Contact the headquarters or regional office, as appropriate, for application deadlines.

Authorization

Disaster Relief Appropriations Act, 2013, Public Law 113-2.

Range of Approval/Disapproval Time

After a grantee receives an allocation under a published Federal Register notice, it must submit an initial Action Plan for Disaster Recovery no later than 90 days after the effective date of the notice.

Appeals

Administrative appeals process followed if grant funds are withheld or reduced, or repayment proposed for non-compliance or non-performance.

Renewals

Not Applicable.

Assistance Considerations

Formula and Matching Requirements

Statutory Formula: Title 24, Chapter 570. To comply with statutory direction that funds be used for disaster-related expenses in the most impacted and distressed areas, HUD computed allocations based on the best available data that cover all the eligible affected areas. P.L. 113-2 specifies that the CDBG DR funds be used ""for necessary expenses related to disaster relief, long-term recovery, restoration of infrastructure and housing, and economic revitalization in the most impacted and distressed areas resulting from a major disaster and further specifies that the funds are not to be used for activities reimbursable by FEMA or the Corps of Engineers. For this allocation, similar to prior CDBG DR allocations, the Department makes a determination of unmet needs by estimating unmet needs related to the main intended uses of the funds, including restoration of housing, economic revitalization, and restoration of infrastructure. These estimated needs are then summed together and an allocation is made among the grantee universe based on their proportional share of ""unmet needs. .
This program has no matching requirements. This program has no matching requirements.
This program does not have MOE requirements. This program does not have MOE requirements.

Length and Time Phasing of Assistance

To ensure the timely expenditure of funds, section 904(c) under Title IX of P.L. 113-2 that all funds be expended within two years of the date HUD obligates funds to a grantee (funds are obligated to a grantee upon HUD s signing of the grantee s CDBG DR grant agreement). Action Plans must demonstrate how funds will be fully expended within two years of obligation. For any funds that the grantee believes will not be expended by the deadline, it must submit a letter to HUD justifying why it is necessary to extend the deadline for a specific portion of funds. Additionally, P.L. 113-2 requires that HUD obligate all funds provided under Chapter 9, Community Development Fund, not later than September 30, 2017. Method of awarding/releasing assistance: by letter of credit.

Post Assistance Requirements

Reports

HUD requires grantees to enter information in HUD s Disaster Recovery Grant Reporting (DRGR) system in sufficient detail to permit the Department s review of grantee performance on a quarterly basis through a Quarterly Performance Report (QPR).

HUD reviews these quarterly reports to assess grantee compliance and performance.

Quarterly reports include information on obligation, expenditures, drawdowns, and accomplishments for all grantee activities.

Each grantee must submit a QPR through the DRGR system no later than 30 days following the end of each calendar quarter.

No cash reports are required.

No progress reports are required.

The Quarterly Performance Report (QPR), submitted by grantees on a quarterly basis through HUD"s Disaster Recovery Grant Reporting (DRGR) system includes information on expenditures for all their activities.

The Department performs regular performance monitoring of grantees both remotely and through annual on-site reviews.

The Department determines on-site monitoring priorities based on a risk-analysis of the grantees portfolio of activities or known high-risk areas.

For all Headquarters-held grants under this appropriation, HUD staff will conduct at least one annual on-site monitoring review.
The Office of Community Planning and Development"s CPD Notice CPD -12-02, "Implementing Risk Analysis for Monitoring Community Planning and Development Grant Programs" describes the Department"s risk analysis process.Monitoring exhibits can be found in Chapter 6 of HUD"s Community Planning and Development (CPD) Grantee Monitoring Handbook.

Audits

In accordance with the provisions of OMB Circular No. A-133 (Revised, June 27, 2003), "Audits of States, Local Governments, and Non-Profit Organizations," nonfederal entities that expend financial assistance of $500,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Nonfederal entities that expend less than $500,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in Circular No. A-133. The auditee may elect to have a program-specific audit conducted under certain limited circumstances. CDBG DR grantees shall make reviews and audits, including onsite reviews of any subrecipients, designated public agencies, and UGLGs, as may be necessary or appropriate to meet the requirements of 42 U.S.C. 5304(e)(2), as amended, and as modified by the federal notice covering grant funds. Additionally, grantees must have an internal audit function in place for the detection of fraud, waste, and abuse where the responsible audit staff report independently to the chief officer or board of the organization designated to administer the CDBG DR award.

Records

Grantees must maintain records with regard to eligibility, national objectives, financial management, citizen participation, relocation, other resources, acquisition, housing assistance to dwelling units and households, equal opportunity, environmental impact, labor standards and other requirements set forth in the program regulations. Records shall be retained for a period of four years after submission of the report in which the activity is reported as completed, except as otherwise prescribed in the regulations.

Financial Information

Account Identification

86-0162-0-1-451.

Obigations

(Formula Grants) FY 12 $0; FY 13 est $1,646,236,000; and FY 14 Estimate Not Available - The Department has obligated $1,646,236,000 as of July 9, 2013 and expects to obligate an additional $445,412,149 by September 2013. These funds represent a portion of the first round of Hurricane Sandy allocations, totaling $5,400,000,000, to States of New York, New Jersey, Rhode Island, Connecticut, and Maryland and New York City. Additionally, the Department has made $514,012,000 in allocations to communities impacted by disasters in calendar years 2011 and 2012; however, these funds will not be obligated until the Department has approved grantee action plans for disaster recovery covering these allocations.

Range and Average of Financial Assistance

From low of $ 3,240,000 for the State of Rhode Island to a high of $ 1,829,520,000 for the State of New Jersey.

Regulations, Guidelines, and Literature

Administrative Regulations for Community Development Block Grants, 24 CFR 570 and the following Federal Register notices: 78 FR 14329, 78 FR 32262, 78 FR 23578.

Information Contacts

Regional or Local Office

See Regional Agency Offices. None. Contact appropriate HUD Field Office listed in Appendix IV of the Catalog.

Headquarters Office

Bennett R. Hilley 451 7th Street SW, Room 7282
, Washington, District of Columbia 20410 Email: bennett.r.hilley@hud.gov Phone: 202- 708-3587 Fax: 202-401-2044

Criteria for Selecting Proposals

Not Applicable.



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