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Federal Register / Vol. 86, No. 117 / Tuesday, June 22, 2021 / Notices
site reviews of any subrecipients, designated public agencies, local governments and other entities as may be necessary or appropriate to meet the requirements of section 104e2 of the HCDA, as amended, and as modified by this notice. In the case of noncompliance with these requirements, the grantee shall take such actions as may be appropriate to prevent a continuance of the deficiency, mitigate any adverse effects or consequences, and prevent a recurrence.
The grantee shall establish remedies for noncompliance by any designated subrecipients, public agencies, or local governments.
Each CDBGDR grantee shall attend and require subrecipients to attend fraud-related training provided by HUD
OIG to assist in the proper management of CDBGDR grant funds. The prior participation of the grantee or a subrecipient in this training for purposes of the grantees CDBGMIT
grant or CDBGDR grants provided pursuant to Public Laws 11556 and 115123 shall satisfy this requirement.
V.A.12. Relocation, and real property acquisition requirements. Activities and projects undertaken with CDBGDR
funds are subject to the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended, 42 U.S.C. 4601 et seq.
URA and section 104d of the HCDA 42 U.S.C. 5304d Section 104d. The implementing regulations for the URA are at 49 CFR part 24. The regulations for section 104d are at 24
CFR part 42, subpart C. The Department recognizes that these waivers and alternative requirements are likely to have limited application in a grantees implementation of electrical power system improvements. Nonetheless, in the course of implementing electrical power system improvements, these waivers and alternative requirements may continue to be necessary. For the purpose of promoting the availability of decent, safe, and sanitary housing, HUD
is waiving the following URA and section 104d requirements with respect to the use of CDBGDR funds:
V.A.12.a. Relocation assistance. The relocation assistance requirements at section 104d2A of the HCDA and 24
CFR 42.350 are waived to the extent that they differ from the requirements of the URA and implementing regulations at 49 CFR part 24, as modified by this notice, for activities related to electrical power system improvements. Without this waiver, disparities exist in relocation assistance associated with activities typically funded by HUD and FEMA e.g., acquisition and relocation.
Both FEMA and CDBG funds are subject
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to the requirements of the URA;
however, CDBG funds are subject to section 104d, while FEMA funds are not. The URA provides at 49 CFR
24.402b that a displaced person is eligible to receive a rental assistance payment that is calculated to cover a period of 42 months. By contrast, section 104d allows a lower-income displaced person to choose between the URA rental assistance payment and a rental assistance payment calculated over a period of 60 months. This waiver of the section 104d relocation assistance requirements assures uniform and equitable treatment by setting the URA and its implementing regulations as the sole standard for relocation assistance for CDBGDR funds.
V.A.12.b. Arms length voluntary purchase. The requirements at 49 CFR
24.101b2i and ii are waived to the extent that they apply to an arms length voluntary purchase carried out by a person who was allocated CDBGDR
funds and does not have the power of eminent domain, in connection with the purchase and occupancy of a principal residence by that person. Given the often-large-scale acquisition needs of grantees, this waiver is necessary to reduce burdensome administrative requirements to implement electrical improvement activities. Grantees are reminded that tenants occupying real property acquired through voluntary purchase may be eligible for relocation assistance.
V.A.12.c. Optional relocation policies.
The regulation at 24 CFR 570.606d is waived to the extent that it requires optional relocation policies to be established at the grantee level. Unlike the regular CDBG program, States may carry out electrical improvement activities directly or through subrecipients, but 24 CFR 570.606d does not account for this distinction.
This waiver makes clear that grantees receiving CDBGDR funds may establish optional relocation policies or permit their subrecipients to establish separate optional relocation policies. This waiver is intended to provide grantees with maximum flexibility in developing optional relocation policies with CDBG
DR funds.
V.A.12.d. Waiver of Section 414 of the Stafford Act. Section 414 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act 42 U.S.C.
5121 et seq.. Section 414 of the Stafford Act 42 U.S.C. 5181 provides that Notwithstanding any other provision of law, no person otherwise eligible for any kind of replacement housing payment under the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 Pub. L.

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91646 42 U.S.C. 4601 et seq.
URA shall be denied such eligibility as a result of his being unable, because of a major disaster as determined by the President, to meet the occupancy requirements set by the URA.
Accordingly, homeowner occupants and tenants displaced from their homes as a result of the identified disaster and who would have otherwise been displaced as a direct result of any acquisition, rehabilitation, or demolition of real property for a Federally funded program or project may become eligible for a replacement housing payment notwithstanding their inability to meet occupancy requirements prescribed in the URA.
Section 414 of the Stafford Act including its implementing regulation at 49 CFR 24.403d1, is waived to the extent that it would apply to real property acquisition, rehabilitation, or demolition of real property for a CDBG
DR funded project, undertaken by the grantee or subrecipient, commencing more than one year after the Presidentially declared disaster, provided that the project was not planned, approved, or otherwise underway prior to the disaster. For purposes of this paragraph, a CDBGDR
funded project shall be determined to have commenced on the earliest of: 1
The date of an approved Request for Release of Funds and certification, RROF/C, or 2 the date of completion of the site-specific review when a program utilizes tiered environmental reviews, or 3 the date of sign-off by the Responsible Entity Agency Official when a project converts to exempt under 24 CFR 58.34a12. The Secretary has the authority to waive provisions of the Stafford Act and its implementing regulations that the Secretary administers in connection with the obligation of CDBGDR funds covered under this waiver and alternative requirement, or the grantees use of these funds. The Department has determined that good cause exists for a waiver and that such waiver is not inconsistent with the overall purposes of title I of the HCDA.
The waiver will simplify the administration of the disaster recovery process and reduce the administrative burden associated with the implementation of Stafford Act Section 414 requirements for projects commencing more than one year after the date of the Presidentially declared disaster, considering the majority of such persons displaced by the disaster will have returned to their dwellings or found another place of permanent residence. This waiver does not apply with respect to persons that meet the
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