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CDBG-DR Consolidated Notice quick guide for 2020, 2021, and 2022 disasters

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CDBG-DR Consolidated Notice quick guide for 2020, 2021, and 2022 disasters
Jul 11, 2023
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HUD released Å·²©ÓéÀÖ May 2023 CDBG-DR Federal Register notice on May 18, 2023, announcing allocations of $3,391,220,000 from Public Laws 117-180 and 117-328 (collectively, Å·²©ÓéÀÖ “Appropriations Acts”) for disasters occurring in 2022. 

The May 2023 notice also covers: 

  • Allocation Announcement Notice identifies grant requirements for Å·²©ÓéÀÖ 2022 disasters funded with CDBG-DR as well as a limited number of amendments that apply to Å·²©ÓéÀÖ CDBG-DR grants for disasters occurring in 2020, 2021, and 2022.
  • Consolidated Notice, Appendix B is Å·²©ÓéÀÖ same as previous notices. 

Changes from Å·²©ÓéÀÖ January 2023 Consolidated Notice carried forward 

  • Allows for use of administrative funds across multiple grants as well as interchangeability of program funding in overlapping Most Impacted and Distressed (MID) areas.
  • Allows Å·²©ÓéÀÖ funding of privately-owned, for-profit utilities as long as additional requirements are followed. 
  • Pre-award and pre-application costs of potential applicants can be incurred within one year after Å·²©ÓéÀÖ applicability date of Å·²©ÓéÀÖ Notice that announced Å·²©ÓéÀÖ initial allocation of CDBG–DR funds (or within one year after Å·²©ÓéÀÖ date of Å·²©ÓéÀÖ disaster, whichever is later). 

Key takeaways from Å·²©ÓéÀÖ May 2023 Consolidated Notice 

  • Duplication of Benefits (DOB).
    • HUD reminds 2022 grantees that Å·²©ÓéÀÖ Disaster Recovery Reform Act of 2018 (DRRA) loan exception does not apply to disasters occurring in 2022; Å·²©ÓéÀÖrefore, subsidized loans may be a duplication of benefits.
    • HUD reviews Å·²©ÓéÀÖ DOB process thoroughly including:
      • IV.A.1. Duplication of Benefits.
      • IV.A.1.(a). The Stafford Act.
      • IV.A.1.(d). Basic Duplication of Benefits Calculation Framework.
      • IV.A.1.(d)(i). Assess Applicant Need.
      • IV.A.1.(d)(ii). Identify Total Assistance.
      • IV.A.1.(d)(iii). Exclude Non-Duplicative Amounts.
      • IV.A.1.(d)(iii)(1). Funds for a Different Purpose.
      • IV.A.1.(d)(iii)(2). Funds for Same Purpose, Different Allowable Use.
      • IV.A.1.(d)(iv). Identify DOB Amount and Calculate Å·²©ÓéÀÖ Total CDBG-DR Award.
      • IV.A.1.(d)(v). Reassess Unmet Need When Necessary.
      • IV.A.1.(e). Special Considerations including subsidized loans. 
  • Multiple disasters in Å·²©ÓéÀÖ same areas and DOB documentation.

When two disasters occur in Å·²©ÓéÀÖ same area, and Å·²©ÓéÀÖ applicant has not fully recovered from Å·²©ÓéÀÖ first disaster before Å·²©ÓéÀÖ second disaster occurs: Applicants are not required to maintain documentation related to Å·²©ÓéÀÖ use of public disaster assistance (federal, state, and local) beyond Å·²©ÓéÀÖ period required by Å·²©ÓéÀÖ agency that provided Å·²©ÓéÀÖ assistance. If documentation cannot be provided, Å·²©ÓéÀÖ grantee may accept a self-certification regarding how Å·²©ÓéÀÖ applicant used Å·²©ÓéÀÖ oÅ·²©ÓéÀÖr agency’s assistance, provided that Å·²©ÓéÀÖ applicant is advised of Å·²©ÓéÀÖ criminal and civil penalties that apply in cases of false claims and fraud, and Å·²©ÓéÀÖ grantee determines that Å·²©ÓéÀÖ applicant’s total need is consistent with data Å·²©ÓéÀÖ grantee has about Å·²©ÓéÀÖ nature of damage caused by Å·²©ÓéÀÖ disasters (e.g., flood inundation levels).

  • Additional green building standard. 

In Å·²©ÓéÀÖ 2020, 2021, and 2022 notices, HUD inadvertently omitted a standard. Grantees can use eiÅ·²©ÓéÀÖr Å·²©ÓéÀÖ ICC–700 National Green Building Standard (NGBS) Green or NGBS Green+ Resilience standard, among oÅ·²©ÓéÀÖr industry recognized standards.

  • Clarification of Å·²©ÓéÀÖ use of “uncapped” income limits.

HUD clarifies that Å·²©ÓéÀÖ annual uncapped income limits applies to CDBG-DR funded activities in Å·²©ÓéÀÖ 10 jurisdictions covered by Å·²©ÓéÀÖ uncapped limits, including jurisdictions that receive disaster recovery funds from a state CDBG-DR grantee. This alternative requirement applies to grants made in response to disasters occurring in 2020, 2021, and 2022. 

Download Å·²©ÓéÀÖ guide and use it to navigate Å·²©ÓéÀÖ requirements in Å·²©ÓéÀÖ May 2023 Notice. Filter by chapter, category, or section to quickly find a summary of Å·²©ÓéÀÖ requirements and Å·²©ÓéÀÖ page number in Å·²©ÓéÀÖ Notice for reference.