[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5940 Introduced in House (IH)]
<DOC>
118th CONGRESS
1st Session
H. R. 5940
To establish a community disaster assistance fund for housing and
community development and to authorize the Secretary of Housing and
Urban Development to provide, from the fund, assistance through a
community development block grant disaster recovery program, and for
other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
October 12, 2023
Mr. Green of Texas introduced the following bill
October 25, 2023
Referred to the Committee on Financial Services, and in addition to the
Committee on Appropriations, for a period to be subsequently determined
by the Speaker, in each case for consideration of such provisions as
fall within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To establish a community disaster assistance fund for housing and
community development and to authorize the Secretary of Housing and
Urban Development to provide, from the fund, assistance through a
community development block grant disaster recovery program, and for
other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Reforming Disaster Recovery Act''.
SEC. 2. FINDINGS.
Congress finds that--
(1) following a major disaster declared by the President
under section 401 of the Robert T. Stafford Disaster Relief and
Emergency Assistance Act (42 U.S.C. 5170), the subset of
communities that are most impacted and distressed as a result
of the disaster face critical social, economic, and
environmental obstacles to recovery, including insufficient
public and private resources to address disaster-related
housing and community development needs for lower income
households and distressed communities;
(2) unmet disaster recovery needs, including housing
assistance needs, can be especially widespread among persons
with extremely low-, low-, and moderate-incomes;
(3) economic, social, and housing hardships that affect
communities before disasters are exacerbated during crises and
can delay and complicate long-term recovery, especially after
catastrophic major disasters;
(4) States, units of local government, and Indian Tribes
within the most impacted and distressed areas resulting from
major disasters benefit from flexibility to design programs
that meet local needs, but face inadequate financial,
technical, and staffing capacity to plan and carry out
sustained recovery, restoration, and mitigation activities;
(5) the speed and effectiveness considerations of long-term
recovery from catastrophic major disasters is improved by
predictable investments that support disaster relief, long-term
recovery, restoration of housing and infrastructure, and
economic revitalization, primarily for the benefit of low- and
moderate-income persons;
(6) undertaking activities that mitigate the effects of
future natural disasters and extreme weather and increase the
stock of affordable housing, including affordable rental
housing, as part of long-term recovery can significantly reduce
future fiscal and social costs, especially within high-risk
areas, and can help to address outstanding housing and
community development needs by creating jobs and providing
other economic and social benefits within communities that
further promote recovery and resilience; and
(7) the general welfare and security of the United States
and the health and living standards of its people require
targeted resources to support State and local governments in
carrying out their responsibilities in disaster recovery and
mitigation through interim and long-term housing and community
development activities that primarily benefit low- and
moderate-income persons.
SEC. 3. DEFINITIONS.
In this Act:
(1) Department.--The term ``Department'' means the
Department of Housing and Urban Development.
(2) Fund.--The term ``Fund'' means the Long-Term Disaster
Recovery Fund established under section 5.
(3) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
SEC. 4. DUTIES OF THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT.
(a) In General.--The offices and officers of the Department shall
be responsible for--
(1) leading and coordinating the disaster-related
responsibilities of the Department under the National Response
Framework, the National Disaster Recovery Framework, and the
National Mitigation Framework;
(2) coordinating and administering programs, policies, and
activities of the Department related to disaster relief, long-
term recovery, resiliency, and mitigation, including disaster
recovery assistance under title I of the Housing and Community
Development Act of 1974 (42 U.S.C. 5301 et seq.);
(3) supporting disaster-impacted communities as those
communities specifically assess, plan for, and address the
housing stock and housing needs in the transition from
emergency shelters and interim housing to permanent housing of
those displaced, especially among vulnerable populations and
extremely low-, low-, and moderate-income households;
(4) collaborating with the Federal Emergency Management
Agency and the Small Business Administration and across the
Department to align disaster-related regulations and policies,
including incorporation of consensus-based codes and standards
and insurance purchase requirements, and ensuring coordination
and reducing duplication among other Federal disaster recovery
programs;
(5) promoting best practices in mitigation and land use
planning, including consideration of traditional, natural, and
nature-based infrastructure alternatives;
(6) coordinating technical assistance, including
mitigation, resiliency, and recovery training and information
on all relevant legal and regulatory requirements, to entities
that receive disaster recovery assistance under title I of the
Housing and Community Development Act of 1974 (42 U.S.C. 5301
et seq.) that demonstrate capacity constraints; and
(7) supporting State, Tribal, and local governments in
developing, coordinating, and maintaining their capacity for
disaster resilience and recovery and developing pre-disaster
recovery and hazard mitigation plans, in coordination with the
Federal Emergency Management Agency and other Federal agencies.
(b) Establishment of the Office of Disaster Management and
Resiliency.--Section 4 of the Department of Housing and Urban
Development Act (42 U.S.C. 3533) is amended by adding at the end the
following:
``(i) Office of Disaster Management and Resiliency.--
``(1) Establishment.--There is established, in the Office
of the Secretary, the Office of Disaster Management and
Resiliency.
``(2) Duties.--The Office of Disaster Management and
Resiliency shall--
``(A) be responsible for oversight and coordination
of all departmental disaster preparedness and response
responsibilities; and
``(B) coordinate with the Federal Emergency
Management Agency, the Small Business Administration,
and the Office of Community Planning and Development
and other offices of the Department in supporting
recovery and resilience activities to provide a
comprehensive approach in working with communities.''.
SEC. 5. LONG-TERM DISASTER RECOVERY FUND.
(a) Establishment.--There is established in the Treasury of the
United States an account to be known as the Long-Term Disaster Recovery
Fund.
(b) Deposits, Transfers, and Credit.--
(1) In general.--The Fund shall consist of amounts
appropriated, transferred, and credited to the Fund.
(2) Transfers.--The following may be transferred to the
Fund:
(A) Amounts made available through section
106(c)(4) of the Housing and Community Development Act
of 1974 (42 U.S.C. 5306(c)(4)) as a result of actions
taken under section 104(e), 111, or 123(j) of such Act.
(B) Any unobligated balances available until
expended remaining or subsequently recaptured from
amounts appropriated for any disaster and related
purposes under the heading ``Community Development
Fund'' in any Act prior to the establishment of the
Fund.
(3) Use of transferred amounts.--Amounts transferred to the
Fund shall be used for the eligible uses described in
subsection (c).
(c) Eligible Uses of Fund.--
(1) In general.--Amounts in the Fund shall be available--
(A) to provide assistance in the form of grants
under section 123 of the Housing and Community
Development Act of 1974, as added by section 6; and
(B) for activities of the Department that support
the provision of such assistance, including necessary
salaries and expenses, information technology, capacity
building and technical assistance (including assistance
related to pre-disaster planning), and readiness and
other pre-disaster planning activities that are not
readily attributable to a single major disaster.
(2) Set aside.--Of each amount appropriated for or
transferred to the Fund, 2 percent shall be made available for
activities described in paragraph (1)(B), which shall be in
addition to other amounts made available for those activities.
(3) Transfer of funds.--Amounts made available for use in
accordance with paragraph (2)--
(A) may be transferred to the account under the
heading for ``Program Offices--Community Planning and
Development'', or any successor account, for the
Department to carry out activities described in
paragraph (1)(B); and
(B) may be used for the activities described in
paragraph (1)(B) and for the administrative costs of
administering any funds appropriated to the Department
under the heading ``Community Planning and
Development--Community Development Fund'' for any major
disaster declared under section 401 of the Robert T.
Stafford Disaster Relief and Emergency Assistance Act
(42 U.S.C. 5170) in any Act before the establishment of
the Fund.
(d) Interchangeability of Prior Administrative Amounts.--Any
amounts appropriated in any Act prior to the establishment of the Fund
and transferred to the account under the heading ``Program Offices
Salaries and Expenses--Community Planning and Development'', or any
predecessor account, for the Department for the costs of administering
funds appropriated to the Department under the heading ``Community
Planning and Development--Community Development Fund'' for any major
disaster declared under section 401 of the Robert T. Stafford Disaster
Relief and Emergency Assistance Act (42 U.S.C. 5170) shall be available
for the costs of administering any such funds provided by any prior or
future Act, notwithstanding the purposes for which those amounts were
appropriated and in addition to any amount provided for the same
purposes in other appropriations Acts.
(e) Availability of Amounts.--Amounts appropriated, transferred,
and credited to the Fund shall remain available until expended.
(f) Formula Allocation.--Use of amounts in the Fund for grants
shall be made by formula allocation in accordance with the requirements
of section 123(a) of the Housing and Community Development Act of 1974,
as added by section 6.
(g) Authorization of Appropriations.--There are authorized to be
appropriated to the Fund such sums as may be necessary to respond to
current or future major disasters declared under section 401 of the
Robert T. Stafford Disaster Relief and Emergency Assistance Act (42
U.S.C. 5179) for grants under section 123 of the Housing and Community
Development Act of 1974, as added by section 6.
SEC. 6. ESTABLISHMENT OF CDBG DISASTER RECOVERY PROGRAM.
Title I of the Housing and Community Development Act of 1974 (42
U.S.C. 5301 et seq.) is amended--
(1) in section 102(a) (42 U.S.C. 5302(a))--
(A) in paragraph (20)--
(i) by redesignating subparagraph (B) as
subparagraph (C);
(ii) in subparagraph (C), as so
redesignated, by inserting ``or (B)'' after
``subparagraph (A)''; and
(iii) by inserting after subparagraph (A)
the following:
``(B) The term `persons of extremely low income' means
families and individuals whose income levels do not exceed
household income levels determined by the Secretary under
section 3(b)(2) of the United States Housing Act of 1937 (42
U.S.C. 1437a(b)(2)(C)), except that the Secretary may provide
alternative definitions for the Commonwealth of Puerto Rico,
Guam, the Commonwealth of the Northern Mariana Islands, the
United States Virgin Islands, and American Samoa.''; and
(B) by adding at the end the following:
``(25) The term `major disaster' has the meaning given the
term in section 102 of the Robert T. Stafford Disaster Relief
and Emergency Assistance Act (42 U.S.C. 5122).'';
(2) in section 106(c)(4) (42 U.S.C. 5306(c)(4))--
(A) in subparagraph (A)--
(i) by striking ``declared by the President
under the Robert T. Stafford Disaster Relief
and Emergency Assistance Act'';
(ii) inserting ``States for use in
nonentitlement areas and to'' before
``metropolitan cities''; and
(iii) inserting ``major'' after ``affected
by the'';
(B) in subparagraph (C)--
(i) by striking ``metropolitan city or''
and inserting ``State, metropolitan city, or'';
(ii) by striking ``city or county'' and
inserting ``State, city, or county''; and
(iii) by inserting ``major'' before
``disaster'';
(C) in subparagraph (D), by striking ``metropolitan
cities and'' and inserting ``States, metropolitan
cities, and'';
(D) in subparagraph (F)--
(i) by striking ``metropolitan city or''
and inserting ``State, metropolitan city, or'';
and
(ii) by inserting ``major'' before
``disaster''; and
(E) in subparagraph (G), by striking ``metropolitan
city or'' and inserting ``State, metropolitan city,
or'';
(3) in section 122 (42 U.S.C. 5321), by striking ``disaster
under title IV of the Robert T. Stafford Disaster Relief and
Emergency Assistance Act'' and inserting ``major disaster'';
and
(4) by adding at the end the following:
``SEC. 123. COMMUNITY DEVELOPMENT BLOCK GRANT DISASTER RECOVERY
PROGRAM.
``(a) Authorization, Formula, and Allocation.--
``(1) Authorization.--The Secretary is authorized to make
community development block grant disaster recovery grants from
the Long-Term Disaster Recovery Fund established under section
5 of the Reforming Disaster Recovery Act (hereinafter referred
to as the `Fund') for necessary expenses for activities
authorized under subsection (f)(1) related to disaster relief,
long-term recovery, restoration of housing and infrastructure,
economic revitalization, and mitigation in the most impacted
and distressed areas resulting from a catastrophic major
disaster.
``(2) Grant awards.--Grants shall be awarded under this
section to States, units of general local government, and
Indian tribes based on capacity and the concentration of
damage, as determined by the Secretary, to support the
efficient and effective administration of funds.
``(3) Section 106 allocations.--Grants under this section
shall not be considered relevant to the formula allocations
made pursuant to section 106.
``(4) Federal register notice.--
``(A) In general.--Not later than 30 days after the
date of enactment of this section, the Secretary shall
issue a notice in the Federal Register containing the
latest formula allocation methodologies used to
determine the total estimate of unmet needs related to
housing, economic revitalization, and infrastructure in
the most impacted and distressed areas resulting from a
catastrophic major disaster.
``(B) Public comment.--If the Secretary has not
already requested public comment on the formula
described in the notice required by subparagraph (A),
the Secretary shall solicit public comments on--
``(i) the methodologies described in
subparagraph (A) and seek alternative methods
for formula allocation within a similar total
amount of funding;
``(ii) the impact of formula methodologies
on rural areas and Tribal areas;
``(iii) adjustments to improve targeting to
the most serious needs;
``(iv) objective criteria for grantee
capacity and concentration of damage to inform
grantee determinations and minimum allocation
thresholds; and
``(v) research and data to inform an
additional amount to be provided for mitigation
depending on type of disaster, which shall be
not more than 30 percent of the total estimate
of unmet needs.
``(5) Regulations.--
``(A) In general.--The Secretary shall, by
regulation, establish a formula to allocate assistance
from the Fund to the most impacted and distressed areas
resulting from a catastrophic major disaster.
``(B) Formula requirements.--The formula
established under subparagraph (A) shall--
``(i) set forth criteria to determine that
a major disaster is catastrophic, which
criteria shall consider the presence of a high
concentration of damaged housing or businesses
that individual, State, Tribal, and local
resources could not reasonably be expected to
address without additional Federal assistance
or other nationally encompassing data that the
Secretary determines are adequate to assess
relative impact and distress across geographic
areas;
``(ii) include a methodology for
identifying most impacted and distressed areas,
which shall consider unmet serious needs
related to housing, economic revitalization,
and infrastructure;
``(iii) include an allocation calculation
that considers the unmet serious needs
resulting from the catastrophic major disaster
and an additional amount up to 30 percent for
activities to reduce risks of loss resulting
from other natural disasters in the most
impacted and distressed area, primarily for the
benefit of low- and moderate-income persons,
with particular focus on activities that reduce
repetitive loss of property and critical
infrastructure; and
``(iv) establish objective criteria for
periodic review and updates to the formula to
reflect changes in available science and data.
``(C) Minimum allocation threshold.--The Secretary
shall, by regulation, establish a minimum allocation
threshold.
``(D) Interim allocation.--Until such time that the
Secretary issues final regulations under this
paragraph, the Secretary shall--
``(i) allocate assistance from the Fund
using the formula allocation methodology
published in accordance with paragraph (4); and
``(ii) include an additional amount for
mitigation equal to 15 percent of the total
estimate of unmet need.
``(6) Allocation of funds.--
``(A) In general.--The Secretary shall--
``(i) except as provided in clause (ii),
not later than 90 days after the President
declares a major disaster, use best available
data to determine whether the major disaster is
catastrophic and qualifies for assistance under
the formula described in paragraph (4) or (5),
unless data is insufficient to make this
determination; and
``(ii) if the best available data is
insufficient to make the determination required
under clause (i) within the 90-day period
described in that clause, the Secretary shall
determine whether the major disaster qualifies
when sufficient data becomes available, but in
no case shall the Secretary make the
determination later than 120 days after the
declaration of the major disaster.
``(B) Announcement of allocation.--If amounts are
available in the Fund at the time the Secretary
determines that the major disaster is catastrophic and
qualifies for assistance under the formula described in
paragraph (4) or (5), the Secretary shall immediately
announce an allocation for a grant under this section.
``(C) Additional amounts.--If additional amounts
are appropriated to the Fund after amounts are
allocated under subparagraph (B), the Secretary shall
announce an allocation or additional allocation (if a
prior allocation under subparagraph (B) was less than
the formula calculation) within 15 days of any such
appropriation.
``(7) Preliminary funding.--
``(A) In general.--To speed recovery, the Secretary
is authorized to allocate and award preliminary grants
from the Fund before making a determination under
paragraph (6)(A) if the Secretary projects, based on a
preliminary assessment of impact and distress, that a
major disaster is catastrophic and would likely qualify
for funding under the formula described in paragraph
(4) or (5).
``(B) Amount.--
``(i) Maximum.--The Secretary may award
preliminary funding under subparagraph (A) in
an amount that is not more than $5,000,000.
``(ii) Sliding scale.--The Secretary shall,
by regulation, establish a sliding scale for
preliminary funding awarded under subparagraph
(A) based on the size of the preliminary
assessment of impact and distress.
``(C) Use of funds.--The uses of preliminary
funding awarded under subparagraph (A) shall be limited
to eligible activities that--
``(i) in the determination of the
Secretary, will support faster recovery,
improve the ability of the grantee to assess
unmet recovery needs, plan for the prevention
of improper payments, and reduce fraud, waste,
and abuse; and
``(ii) may include evaluating the interim
housing, permanent housing, and supportive
service needs of the disaster impacted
community, with special attention to vulnerable
populations, such as homeless and low- to
moderate-income households, to inform the
grantee action plan required under subsection
(c).
``(D) Consideration of funding.--Preliminary
funding awarded under subparagraph (A)--
``(i) is not subject to the certification
requirements of subsection (h)(1); and
``(ii) shall not be considered when
calculating the amount of the grant used for
administrative costs, technical assistance, and
planning activities that are subject to the
requirements under subsection (f)(2).
``(E) Waiver.--To expedite the use of preliminary
funding for activities described in this paragraph, the
Secretary may waive or specify alternative requirements
to the requirements of this section in accordance with
subsection (i).
``(F) Amended award.--
``(i) In general.--An award for preliminary
funding under subparagraph (A) may be amended
to add any subsequent amount awarded because of
a determination by the Secretary that a major
disaster is catastrophic and qualifies for
assistance under the formula.
``(ii) Applicability.--Notwithstanding
subparagraph (D), amounts provided by an
amendment under clause (i) are subject to the
requirements under subsections (f)(1) and
(h)(1) and other requirements on grant funds
under this section.
``(G) Technical assistance.--Concurrent with the
allocation of any preliminary funding awarded under
this paragraph, the Secretary shall assign or provide
technical assistance to the recipient of the grant.
``(b) Interchangeability.--
``(1) In general.--The Secretary is authorized to approve
the use of grants under this section to be used interchangeably
and without limitation for the same activities in the most
impacted and distressed areas resulting from a declaration of
another catastrophic major disaster that qualifies for
assistance under the formula established under paragraph (4) or
(5) of subsection (a) or a major disaster for which the
Secretary allocated funds made available under the heading
`Community Development Fund' in any Act prior to the
establishment of the Fund.
``(2) Requirements.--The Secretary shall establish
requirements to expedite the use of grants under this section
for the purpose described in paragraph (1).
``(3) Emergency designation.--Amounts repurposed pursuant
to this subsection that were previously designated by Congress
as an emergency requirement pursuant to the Balanced Budget and
Emergency Deficit Control Act of 1985 or a concurrent
resolution on the budget are designated by Congress as an
emergency requirement pursuant to section 4001(a)(1) of S. Con.
Res. 14 (117th Congress) and legislation establishing fiscal
year 2024 budget enforcement in the House of Representatives.
``(c) Grantee Plans.--
``(1) Requirement.--Not later than 90 days after the date
on which the Secretary announces a grant allocation under this
section, unless an extension is granted by the Secretary, the
grantee shall submit to the Secretary a plan for approval
describing--
``(A) the activities the grantee will carry out
with the grant under this section;
``(B) the criteria of the grantee for awarding
assistance and selecting activities;
``(C) how the use of the grant under this section
will address disaster relief, long-term recovery,
restoration of housing and infrastructure, economic
revitalization, and mitigation in the most impacted and
distressed areas;
``(D) how the use of the grant funds for mitigation
is consistent with hazard mitigation plans submitted to
the Federal Emergency Management Agency under section
322 of the Robert T. Stafford Disaster Relief and
Emergency Assistance Act (42 U.S.C. 5165);
``(E) the estimated amount proposed to be used for
activities that will benefit persons of low and
moderate income;
``(F) how the use of grant funds will repair and
replace existing housing stock for vulnerable
populations, including low- to moderate-income
households;
``(G) how the grantee will address the priorities
described in paragraph (5);
``(H) how uses of funds are proportional to unmet
needs, as required under paragraph (6);
``(I) for State grantees that plan to distribute
grant amounts to units of general local government, a
description of the method of distribution; and
``(J) such other information as may be determined
by the Secretary in regulation.
``(2) Public consultation.--To permit public examination
and appraisal of the plan described in paragraph (1), to
enhance the public accountability of grantee, and to facilitate
coordination of activities with different levels of government,
when developing the plan or substantial amendments proposed to
the plan required under paragraph (1), a grantee shall--
``(A) publish the plan before adoption;
``(B) provide citizens, affected units of general
local government, and other interested parties with
reasonable notice of, and opportunity to comment on,
the plan, with a public comment period of not less than
14 days;
``(C) consider comments received before submission
to the Secretary;
``(D) follow a citizen participation plan for
disaster assistance adopted by the grantee that, at a
minimum, provides for participation of residents of the
most impacted and distressed area affected by the major
disaster that resulted in the grant under this section
and other considerations established by the Secretary;
and
``(E) undertake any consultation with interested
parties as may be determined by the Secretary in
regulation.
``(3) Approval.--The Secretary shall--
``(A) by regulation, specify criteria for the
approval, partial approval, or disapproval of a plan
submitted under paragraph (1), including approval of
substantial amendments to the plan;
``(B) review a plan submitted under paragraph (1)
upon receipt of the plan;
``(C) allow a grantee to revise and resubmit a plan
or substantial amendment to a plan under paragraph (1)
that the Secretary disapproves;
``(D) by regulation, specify criteria for when the
grantee shall be required to provide the required
revisions to a disapproved plan or substantial
amendment under paragraph (1) for public comment prior
to resubmission of the plan or substantial amendment to
the Secretary; and
``(E) approve, partially approve, or disapprove a
plan or substantial amendment under paragraph (1) not
later than 60 days after the date on which the plan or
substantial amendment is received by the Secretary.
``(4) Low- and moderate-income overall benefit.--
``(A) Use of funds.--Not less than 70 percent of a
grant made under this section shall be used for
activities that benefit persons of low and moderate
income unless the Secretary--
``(i) specifically finds that--
``(I) there is compelling need to
reduce the percentage for the grant;
and
``(II) the housing needs of low-
and moderate-income persons have been
addressed; and
``(ii) issues a waiver and alternative
requirement specific to the grant pursuant to
subsection (i) to lower the percentage.
``(B) Regulations.--The Secretary shall, by
regulation, establish protocols consistent with the
findings of section 2 of the Reforming Disaster
Recovery Act to prioritize the use of funds by a
grantee under this section to meet the needs of low-
and moderate-income persons and businesses serving
primarily persons of low and moderate income.
``(5) Prioritization.--The grantee shall prioritize
activities that--
``(A) assist persons with extremely low-, low-, and
moderate-incomes and other vulnerable populations to
better recover from and withstand future disasters,
emphasizing those with the most severe needs;
``(B) address affordable housing, including
affordable rental housing, needs arising from a
disaster, or those needs present prior to a disaster;
``(C) prolong the life of housing and
infrastructure;
``(D) use cost-effective means of preventing harm
to people and property and incorporate protective
features, redundancies, and energy savings; and
``(E) other measures that will assure the
continuation of critical services during future
disasters.
``(6) Proportional allocation.--
``(A) In general.--A grantee under this section
shall allocate grant funds proportional to unmet needs
between housing activities, economic revitalization,
and infrastructure, unless the Secretary--
``(i) specifically finds that--
``(I) there is a compelling need
for a disproportional allocation among
those unmet needs; and
``(II) the disproportional
allocation described in subclause (I)
is not inconsistent with the
requirements under paragraph (4); and
``(ii) issues a waiver and alternative
requirement pursuant to subsection (i) to allow
for the disproportional allocation described in
clause (i)(I).
``(B) Housing activities.--With respect to housing
activities described in subparagraph (A)(i), grantees
should address proportional needs between homeowners
and renters, including low-income households in public
housing and Federally subsidized housing.
``(7) Disaster risk mitigation.--
``(A) Definition.--In this paragraph, the term
`hazard-prone areas'--
``(i) means areas identified by the
Secretary, in consultation with the
Administrator of the Federal Emergency
Management Agency, at risk from natural hazards
that threaten property damage or health,
safety, and welfare, such as floods, wildfires
(including Wildland-Urban Interface areas),
earthquakes, lava inundation, tornados, and
high winds; and
``(ii) includes areas having special flood
hazards as identified under the Flood Disaster
Protection Act of 1973 (42 U.S.C. 4002 et seq.)
or the National Flood Insurance Act of 1968 (42
U.S.C. 4001 et seq.).
``(B) Hazard-prone areas.--The Secretary, in
consultation with the Administrator of the Federal
Emergency Management Agency, shall establish minimum
construction standards, insurance purchase
requirements, and other requirements for the use of
grant funds in hazard-prone areas.
``(C) Special flood hazards.--
``(i) In general.--For the areas described
in subparagraph (A)(ii), the insurance purchase
requirements established under subparagraph (B)
shall meet or exceed the requirements under
section 102(a) of the Flood Disaster Protection
Act of 1973 (42 U.S.C. 4012a(a)).
``(ii) Treatment as financial assistance.--
All grants under this section shall be treated
as financial assistance for purposes of section
3(a)(3) of the Flood Disaster Protection Act of
1973 (42 U.S.C. 4003(a)(3)).
``(D) Consideration of future risks.--The Secretary
may consider future risks to protecting property and
health, safety, and general welfare, and the likelihood
of those risks, when making the determination of or
modification to hazard-prone areas under this
paragraph.
``(8) Relocation.--
``(A) In general.--The Uniform Relocation
Assistance and Real Property Acquisition Policies Act
of 1970 (42 U.S.C. 4601 et seq.) shall apply to
activities assisted under this section to the extent
determined by the Secretary in regulation, or as
provided in waivers or alternative requirements
authorized in accordance with subsection (i).
``(B) Policy.--Each grantee under this section
shall establish a relocation assistance policy that--
``(i) minimizes displacement and describes
the benefits available to persons displaced as
a direct result of acquisition, rehabilitation,
or demolition in connection with an activity
that is assisted by a grant under this section;
and
``(ii) includes any appeal rights or other
requirements that the Secretary establishes by
regulation.
``(d) Certifications.--Any grant under this section shall be made
only if the grantee certifies to the satisfaction of the Secretary
that--
``(1) the grantee is in full compliance with the
requirements under subsection (c)(2);
``(2) for grants other than grants to Indian tribes, the
grant will be conducted and administered in conformity with the
Civil Rights Act of 1964 (42 U.S.C. 2000a et seq.) and the Fair
Housing Act (42 U.S.C. 3601 et seq.);
``(3) the projected use of funds has been developed so as
to give maximum feasible priority to activities that will
benefit extremely low-, low-, and moderate-income families and
activities described in subsection (c)(5), and may also include
activities that are designed to aid in the prevention or
elimination of slum and blight to support disaster recovery,
meet other community development needs having a particular
urgency because existing conditions pose a serious and
immediate threat to the health or welfare of the community
where other financial resources are not available to meet such
needs, and alleviate future threats to human populations,
critical natural resources, and property that an analysis of
hazards shows are likely to result from natural disasters in
the future;
``(4) the grant funds shall principally benefit persons of
low and moderate income as described in subsection (c)(4);
``(5) for grants other than grants to Indian Tribes, within
24 months of receiving a grant or at the time of its 3- or 5-
year update, whichever is sooner, the grantee will review and
make modifications to its non-disaster housing and community
development plans and strategies required by subsections (c)
and (m) of section 104 to reflect the disaster recovery needs
identified by the grantee and consistency with the plan under
subsection (c)(1);
``(6) the grantee will not attempt to recover any capital
costs of public improvements assisted in whole or part under
this section by assessing any amount against properties owned
and occupied by persons of low and moderate income, including
any fee charged or assessment made as a condition of obtaining
access to such public improvements, unless--
``(A) funds received under this section are used to
pay the proportion of such fee or assessment that
relates to the capital costs of such public
improvements that are financed from revenue sources
other than under this chapter; or
``(B) for purposes of assessing any amount against
properties owned and occupied by persons of moderate
income, the grantee certifies to the Secretary that the
grantee lacks sufficient funds received under this
section to comply with the requirements of subparagraph
(A);
``(7) the grantee will comply with the other provisions of
this title that apply to assistance under this section and with
other applicable laws;
``(8) the grantee will follow a relocation assistance
policy that includes any minimum requirements identified by the
Secretary; and
``(9) the grantee will adhere to construction standards,
insurance purchase requirements, and other requirements for
development in hazard-prone areas described in subsection
(c)(7).
``(e) Performance Reviews and Reporting.--
``(1) In general.--The Secretary shall, on not less
frequently than an annual basis, make such reviews and audits
as may be necessary or appropriate to determine whether a
grantee under this section has--
``(A) carried out activities using grant funds in a
timely manner;
``(B) met the performance targets established by
paragraph (2);
``(C) carried out activities using grant funds in
accordance with the requirements of this section, the
other provisions of this title that apply to assistance
under this section, and other applicable laws; and
``(D) a continuing capacity to carry out activities
in a timely manner.
``(2) Performance targets.--The Secretary shall develop and
make publicly available critical performance targets for
review, which shall include spending thresholds for each year
from the date on which funds are obligated by the Secretary to
the grantee until such time all funds have been expended.
``(3) Failure to meet targets.--
``(A) Suspension.--If a grantee under this section
fails to meet 1 or more critical performance targets
under paragraph (2), the Secretary may temporarily
suspend the grant.
``(B) Performance improvement plan.--If the
Secretary suspends a grant under subparagraph (A), the
Secretary shall provide to the grantee a performance
improvement plan with the specific requirements needed
to lift the suspension within a defined time period.
``(C) Report.--If a grantee fails to meet the
spending thresholds established under paragraph (2),
the grantee shall submit to the Secretary, the
appropriate committees of Congress, and each member of
Congress who represents a district or State of the
grantee a written report identifying technical
capacity, funding, or other Federal or State
impediments affecting the ability of the grantee to
meet the spending thresholds.
``(4) Collection of information and reporting.--
``(A) Requirement to report.--A grantee under this
section shall provide to the Secretary such information
as the Secretary may determine necessary for adequate
oversight of the grant program under this section.
``(B) Public availability.--Subject to subparagraph
(D), the Secretary shall make information submitted
under subparagraph (A) available to the public and to
the Inspector General for the Department of Housing and
Urban Development, disaggregated by activity, income,
geography, and all classes of individuals protected
under section 109 and the Fair Housing Act.
``(C) Summary status reports.--To increase
transparency and accountability of the grant program
under this section the Secretary shall, on not less
frequently than an annual basis, post on a public
facing dashboard summary status reports for all active
grants under this section that includes--
``(i) the status of funds by activity;
``(ii) the percentages of funds allocated
and expended to benefit low- and moderate-
income communities;
``(iii) performance targets, spending
thresholds, and accomplishments; and
``(iv) other information the Secretary
determines to be relevant for transparency.
``(D) Considerations.--In carrying out this
paragraph, the Secretary--
``(i) shall take such actions as may be
necessary to ensure that personally
identifiable information regarding applicants
for assistance provided from funds made
available under this section is not made
publicly available; and
``(ii) may make full and unredacted
information available to academic institutions
for the purpose of researching into the
equitable distribution of recovery funds and
adherence to civil rights protections.
``(f) Eligible Activities.--
``(1) In general.--Activities assisted under this section--
``(A) may include activities permitted under
section 105 or other activities permitted by the
Secretary by waiver or alternative requirement pursuant
to subsection (i); and
``(B) shall be related to disaster relief, long-
term recovery, restoration of housing and
infrastructure, economic revitalization, and mitigation
in the most impacted and distressed areas resulting
from the major disaster for which the grant was
awarded.
``(2) Prohibition.--Grant funds under this section may not
be used for costs reimbursable by, or for which funds have been
made available by, the Federal Emergency Management Agency, or
the United States Army Corps of Engineers.
``(3) Administrative costs, technical assistance and
planning.--
``(A) In general.--The Secretary shall establish in
regulation the maximum grant amounts a grantee may use
for administrative costs, technical assistance and
planning activities, taking into consideration size of
grant, complexity of recovery, and other factors as
determined by the Secretary, but not to exceed 10
percent for administration and 20 percent in total.
``(B) Availability.--Amounts available for
administrative costs for a grant under this section
shall be available for eligible administrative costs of
the grantee for any grant made under this section,
without regard to a particular disaster.
``(4) Program income.--Notwithstanding any other provision
of law, any grantee under this section may retain program
income that is realized from grants made by the Secretary under
this section if the grantee agrees that the grantee will
utilize the program income in accordance with the requirements
for grants under this section, except that the Secretary may--
``(A) by regulation, exclude from consideration as
program income any amounts determined to be so small
that compliance with this paragraph creates an
unreasonable administrative burden on the grantee; or
``(B) permit the grantee to transfer remaining
program income to the other grants of the grantee under
this title upon closeout of the grant.
``(5) Prohibition on use of assistance for employment
relocation activities.--
``(A) In general.--Grants under this section may
not be used to assist directly in the relocation of any
industrial or commercial plant, facility, or operation,
from one area to another area, if the relocation is
likely to result in a significant loss of employment in
the labor market area from which the relocation occurs.
``(B) Applicability.--The prohibition under
subparagraph (A) shall not apply to a business that was
operating in the disaster-declared labor market area
before the incident date of the applicable disaster and
has since moved, in whole or in part, from the affected
area to another State or to a labor market area within
the same State to continue business.
``(6) Requirements.--Grants under this section are subject
to the requirements of this section, the other provisions of
this title that apply to assistance under this section, and
other applicable laws, unless modified by waivers or
alternative requirements in accordance with subsection (i).
``(g) Environmental Review.--
``(1) Adoption.--A recipient of funds provided under this
section that uses the funds to supplement Federal assistance
provided under section 203, 402, 403, 404, 406, 407, 408(c)(4),
428, or 502 of the Robert T. Stafford Disaster Relief and
Emergency Assistance Act (42 U.S.C. 5170a, 5170b, 5170c, 5172,
5173, 5174(c)(4), 5189f, 5192) may adopt, without review or
public comment, any environmental review, approval, or permit
performed by a Federal agency, and that adoption shall satisfy
the responsibilities of the recipient with respect to the
environmental review, approval, or permit under section
104(g)(1).
``(2) Approval of release of funds.--Notwithstanding
section 104(g)(2), the Secretary or a State may, upon receipt
of a request for release of funds and certification,
immediately approve the release of funds for an activity or
project to be assisted under this section if the recipient has
adopted an environmental review, approval, or permit under
paragraph (1) or the activity or project is categorically
excluded from review under the National Environmental Policy
Act of 1969 (42 U.S.C. 4321 et seq.).
``(3) Units of general local government.--The provisions of
section 104(g)(4) shall apply to assistance under this section
that a State distributes to a unit of general local government.
``(h) Financial Controls and Procedures.--
``(1) In general.--The Secretary shall develop requirements
and procedures to demonstrate that a grantee under this
section--
``(A) has adequate financial controls and
procurement processes;
``(B) has adequate procedures to detect and prevent
fraud, waste, abuse, and duplication of benefit; and
``(C) maintains a comprehensive and publicly
accessible website.
``(2) Certification.--Before making a grant under this
section, the Secretary shall certify that the grantee has in
place proficient processes and procedures to comply with the
requirements developed under paragraph (1), as determined by
the Secretary.
``(3) Compliance before allocation.--The Secretary may
permit a State, unit of general local government, or Indian
tribe to demonstrate compliance with the requirements for
adequate financial controls developed under paragraph (1)
before a disaster occurs and before receiving an allocation for
a grant under this section.
``(4) Duplication of benefits.--
``(A) In general.--Funds made available under this
section shall be used in accordance with section 312 of
the Robert T. Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5155), as amended by section
1210 of the Disaster Recovery Reform Act of 2018
(division D of Public Law 115-254), and such rules as
may be prescribed under such section 312.
``(B) Penalties.--In any case in which the use of
grant funds under this section results in a prohibited
duplication of benefits, the grantee shall--
``(i) apply an amount equal to the
identified duplication to any allowable costs
of the award consistent with actual, immediate
cash requirement;
``(ii) remit any excess amounts to the
Secretary to be credited to the obligated,
undisbursed balance of the grant consistent
with requirements on Federal payments
applicable to such grantee; and
``(iii) if excess amounts under clause (ii)
are identified after the period of performance
or after the closeout of the award, remit such
amounts to the Secretary to be credited to the
Fund.
``(C) Failure to comply.--Any grantee provided
funds under this section or from prior Appropriations
Acts under the heading `Community Development Fund' for
purposes related to major disasters that fails to
comply with section 312 of the Robert T. Stafford
Disaster Relief and Emergency Assistance Act (42 U.S.C.
5155) or fails to satisfy penalties to resolve a
duplication of benefits shall be subject to remedies
for noncompliance under section 111, unless the
Secretary publishes a determination in the Federal
Register that it is not in the best interest of the
Federal Government to pursue remedial actions.
``(i) Waivers.--
``(1) In general.--In administering grants under this
section, the Secretary may waive, or specify alternative
requirements for, any provision of any statute or regulation
that the Secretary administers in connection with the
obligation by the Secretary or the use by the grantee of those
funds (except for requirements related to fair housing,
nondiscrimination, labor standards, the environment, and the
requirements of this section that do not expressly authorize
modifications by waiver or alternative requirement), if the
Secretary makes a public finding that good cause exists for the
waiver or alternative requirement and the waiver or alternative
requirement would not be inconsistent with the findings in
section 2 of the Reforming Disaster Recovery Act.
``(2) Effective date.--A waiver or alternative requirement
described in paragraph (1) shall not take effect before the
date that is 5 days after the date of publication of the waiver
or alternative requirement on the website of the Department of
Housing and Urban Development or the effective date for any
regulation published in the Federal Register.
``(3) Public notification.--The Secretary shall notify the
public of all waivers or alternative requirements described in
paragraph (1) in accordance with the requirements of section
7(q)(3) of the Department of Housing and Urban Development Act
(42 U.S.C. 3535(q)(3)).
``(j) Unused Amounts.--
``(1) Deadline to use amounts.--A grantee under this
section shall use an amount equal to the grant within 6 years
beginning on the date on which the Secretary obligates the
amounts to the grantee, as such period may be extended under
paragraph (4).
``(2) Recapture.--The Secretary shall recapture and credit
to the Fund any amount that is unused by a grantee under this
section upon the earlier of--
``(A) the date on which the grantee notifies the
Secretary that the grantee has completed all activities
identified in the disaster grantee's plan under
subsection (c); or
``(B) the expiration of the 6-year period described
in paragraph (1), as such period may be extended under
paragraph (4).
``(3) Retention of funds.--Notwithstanding paragraph (1),
the Secretary may allow a grantee under this section to
retain--
``(A) amounts needed to close out grants; and
``(B) up to 10 percent of the remaining funds to
support maintenance of the minimal capacity to launch a
new program in the event of a future disaster and to
support pre-disaster long-term recovery and mitigation
planning.
``(4) Extension of period for use of funds.--The Secretary
may extend the 6-year period described in paragraph (1) by not
more than 4 years, or not more than 6 years for mitigation
activities, if--
``(A) the grantee submits to the Secretary--
``(i) written documentation of the exigent
circumstances impacting the ability of the
grantee to expend funds that could not be
anticipated; or
``(ii) a justification that such request is
necessary due to the nature and complexity of
the program and projects; and
``(B) the Secretary submits a written justification
for the extension to the Committees on Appropriations
of Senate and the House of Representatives that
specifies the period of that extension.''.
SEC. 7. REGULATIONS.
(a) Proposed Rules.--Following consultation with the Federal
Emergency Management Agency, the Small Business Administration, and
other Federal agencies, not later than 6 months after the date of
enactment of this Act, the Secretary shall issue proposed rules to
carry out this Act and the amendments made by this Act and shall
provide a 90-day period for submission of public comments on those
proposed rules.
(b) Final Rules.--Not later than 1 year after the date of enactment
of this Act, the Secretary shall issue final regulations to carry out
section 123 of the Housing and Community Development Act of 1974, as
added by section 6.
SEC. 8. COORDINATION OF DISASTER RECOVERY ASSISTANCE, BENEFITS, AND
DATA WITH OTHER FEDERAL AGENCIES.
(a) Coordination of Disaster Recovery Assistance.--In order to
ensure a comprehensive approach to Federal disaster relief, long-term
recovery, restoration of housing and infrastructure, economic
revitalization, and mitigation in the most impacted and distressed
areas resulting from a catastrophic major disaster, the Secretary shall
coordinate with the Federal Emergency Management Agency, to the
greatest extent practicable, in the implementation of assistance
authorized under section 123 of the Housing and Community Development
Act of 1974, as added by section 6.
(b) Data Sharing Agreements.--To support the coordination of data
to prevent duplication of benefits with other Federal disaster recovery
programs while also expediting recovery and reducing burden on disaster
survivors, the Department shall establish data sharing agreements that
safeguard privacy with relevant Federal agencies to ensure disaster
benefits effectively and efficiently reach intended beneficiaries,
while using effective means of preventing harm to people and property.
(c) Data Transfer From FEMA and SBA to HUD.--As permitted and
deemed necessary for efficient program execution, and consistent with a
computer matching agreement entered into under subsection (f)(1), the
Administrator of the Federal Emergency Management Agency and the
Administrator of the Small Business Administration shall provide data
on disaster applicants to the Department, including, when necessary,
personally identifiable information, disaster recovery needs, and
resources determined eligible for, and amounts expended, to the
Secretary for all major disasters declared by the President pursuant to
section 401 of Robert T. Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5170) for the purpose of providing additional
assistance to disaster survivors and prevent duplication of benefits.
(d) Data Transfers From HUD to HUD Grantees.--The Secretary is
authorized to provide to grantees under section 123 of the Housing and
Community Development Act of 1974, as added by section 6, offices of
the Department, technical assistance providers, and lenders information
that in the determination of the Secretary is reasonably available and
appropriate to inform the provision of assistance after a major
disaster, including information provided to the Secretary by the
Administrator of the Federal Emergency Management Agency, the
Administrator of the Small Business Administration, or other Federal
agencies.
(e) Data Transfers From HUD Grantees to HUD, FEMA, and SBA.--
(1) Reporting.--Grantees under section 123 of the Housing
and Community Development Act of 1974, as added by section 6,
shall report information requested by the Secretary on
households, businesses, and other entities assisted and the
type of assistance provided.
(2) Sharing information.--The Secretary shall share
information collected under paragraph (1) with the Federal
Emergency Management Agency, the Small Business Administration,
and other Federal agencies to support the planning and delivery
of disaster recovery and mitigation assistance and other
related purposes.
(f) Privacy Protection.--The Secretary may make and receive data
transfers authorized under this section, including the use and
retention of that data for computer matching programs, to inform the
provision of assistance, assess disaster recovery needs, and prevent
the duplication of benefits and other waste, fraud, and abuse, provided
that--
(1) the Secretary enters an information sharing agreement
or a computer matching agreement, when required by section 522a
of title 5, United States Code (commonly known as the ``Privacy
Act of 1974''), with the Administrator of the Federal Emergency
Management Agency, the Administrator of the Small Business
Administration, or other Federal agencies covering the transfer
of data;
(2) the Secretary publishes intent to disclose data in the
Federal Register;
(3) notwithstanding paragraphs (1) and (2), section 552a of
title 5, United States Code, or any other law, the Secretary is
authorized to share data with an entity identified in
subsection (d), and the entity is authorized to use the data as
described in this section, if the Secretary enters a data
sharing agreement with the entity before sharing or receiving
any information under transfers authorized by this section,
which data sharing agreement shall--
(A) in the determination of the Secretary, include
measures adequate to safeguard the privacy and
personally identifiable information of individuals; and
(B) include provisions that describe how the
personally identifiable information of an individual
will be adequately safeguarded and protected, which
requires consultation with the Secretary and the head
of each Federal agency the data of which is being
shared subject to the agreement.
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