ICF Quick Guide to CDBG-DR Federal Register Notices
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ICF Quick Guide to the CDBG-DR Federal Register Notices
Last Updated 2/20/18
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Public Law 115-31 Federal Register Notice (FR 6074-N-01)—published 12/27/17—Allocation of remaining funds from $400,000,000 for 2015, 2016 and 2017 or later presidentially declared disasters to the State of Texas in response to Hurricane Harvey with $46,240,000 designated to go to Harris County and $11,560,000 to other impacted counties.
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Grantee(s)SummaryDescriptionCitation/Page #
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AllConditions for funding follow 82 FR 36812 III.A – rescinds III.A.iii82 FR 36812 III. A. requires that HUD would not evaluate 2017 disaster for qualifications to receive CDBG DR funds until III: I. a presidential declaration of the disaster was made; ii. the number of FEMA IA applications exceed $13 million in a single county; and, iii. allowed enough and time for HUD to gather data that the disaster meets the eligibility thresholds established in the methodologyPage 61321
Waiver of FR-6039-N-01 Section III. A. iii.
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AllAllocation amount taken from 82 FR 5591 -amount will be the lesser of 100% or serious unmet needs or remaining funds available from Public Law 115-31.HUD waived the methodology in Appendix A based on FEMA data unmet need exceeds the allocation of $57.8 million. 61321
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State of TexasAction Plan submission - 82 FR 36812 Section III describes the requirements for the submission of an Action Plan.The State submitted an Action Plan for 2016 disasters that met the requirements therefore HUD will allow HUD to adopt and incorporate into its Action Plan for the funds allocated under this notice any relevant information from the action plan completed for its 2016 disaster. The scale of the analysis for this allocation may be commensurate with the amount of the allocation and the limited data available.61321
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State of TexasAction Plan Submission for use of funds as in 81 FR 83254 Requires grantees to include criteria for eligibility and how the use of the funds will address long term recovery in infrastructure, housing and economic revitalization. HUD will allow the grantee to adopt and incorporate applicable sections and any other relevant information from its Action Plan for 2016 disasters. Grantee must include updated information specific to the 2017 disasters.61321
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AllUses and activities Must be authorized under Title 1 of HCDA or be waived and respond to a disaster related impact to housing, infrastructure, and economic revitalization in the most impacted and distressed areas. 61321
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State of TexasUpdate assessment of community impacts and unmet needs to guide the development and prioritization of planned activities required in 81 FR 83254 Section VI.A.2.aModified the requirement to allow the scale of analysis to be commensurate with the amount of the allocation and the limited data available61321
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State of TexasCertifications identified in PL 115-31 Modifies the requirement under PL 115-31 – Certifications along with supporting documentation that; grantee has in place: proficient financial controls procurement processes; procedures to prevent duplication of benefits; procedures to ensure timely expenditure of funds; capacity to maintain a comprehensive web site; procedures to detect and prevent fraud, waste and abuse.
Grantees may submit new certification to HUD that the certification submitted for its CDBG-DR grant for 2016 disasters remains unchanged or provide a supplement updating its previous certification to indicate any changes.
61322
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State of TexasDocumentation of risk analysis and certification as required in 81 FR 83254Risk analysis to document certification of a grantee's capacity to administer CDBG-DR funds. Grantees may submit new certification to HUD that the certification submitted for its CDBG-DR grant for 2016 disasters remains unchanged or provide a supplement updating its previous certification to indicate any changes.61321
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State of TexasExpenditure timelineMust expend 100% of the 2017 disaster allocation within 6 years of HUD’s execution of the grant agreement61322
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State of TexasAction Plan DevelopmentMay adopt and incorporate applicable sections from approved Action Plan for 2016 disasters.61322
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State of TexasGrant processMust meet grant process requirements in 81 FR 83254, which includes:61322
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1. Consultation with affected citizens, stakeholders, local governments, public housing authorities to assess needs;
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2. Publish Action Plan described in FR 83254 Section VI.A.4.a. including on official website for no less than 14 days – accessible to persons with disabilities and/or limited English proficiency- with reasonable opportunity to review and provide feedback;
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3. Respond to public comment and submit Action Plan no later than 90 days after effective date of notice;
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4. HUD approves Action Plan within 45 days of receipt and send grant agreement for signature with conditions – if not approved a letter will be sent notifying grantee of deficiencies to be corrected followed by submission within 45 days;
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5. Enter activities in to DRGR;
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6. Sign and return grant agreement to HUD;
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7. Post approved Action Plan on official website;
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8. HUD establishes line of credit and state may draw down funds;
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9. Amend published Action Plan to include projection of expenditures and outcomes within 90 days of approval.
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AllRules, statutes, waivers and alternative requirements Waivers contained in 82 FR 36812, 82 FR 5591 and 81 FR 83254 (see chart of highlights for each of these FRs) will be effective 5 days after publication.61322
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AllDuration of funding If the Secretary or the President determines that the purposes for which the appropriation has been made have been carried out and no disbursements have been made against the appropriation for two consecutive fiscal years, any remaining balance will be made unavailable for obligation or expenditure. Grantees must expend 100 percent of their allocation of CDBG-DR funds on eligible activities within 6 years of HUD's execution of the grant agreement. 61322
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Housing
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AllTechnical correction to low – and moderate – income (LMI) national objective for buyouts and housing incentives identified in 82 FR 3813 beginning in Section VAmended to read: For a buyout award or housing incentive to meet the new LMB and LMHI national objectives, grantees must demonstrate the following:61322-61323
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1. The CDBG–DR funds have been provided for an eligible activity that benefits LMI households by supporting their move from high risk areas. The following activities shall qualify under this criterion, and must also meet the eligibility criteria of the notices governing the use of the CDBG–DR funds: a) Low/Mod Buyout (LMB). When CDBG–DR funds are used for a buyout award to acquire housing owned by a qualifying LMI household, where the award amount is greater than post-disaster (current) fair market value of that property; b) Low/Mod Housing Incentive (LMHI). When CDBG–DR funds are used for a housing incentive award, tied to the voluntary buyout or other voluntary acquisition of housing owned by a qualifying LMI household, for which the housing incentive is for the purpose of moving outside of the affected floodplain or to a lower-risk area; or when the housing incentive is for the purpose of providing or improving residential structures that, upon completion, will be occupied by an LMI household.
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2. Activities that meet the above criteria will be considered to benefit low- and moderate-income persons unless there is substantial evidence to the contrary. Any activities that meet the newly established national objective criteria described above will count towards the calculation of a CDBG–DR grantee’s overall LMI benefit to comply with the primary objective described in 24 CFR 570.200(a)(3) and 24 CFR 570.484(b).
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Public Law 115-56 Federal Register Notice (FR-6066-N-01) Summary - Published 2/1/18 - Provides a total of $7.39 billion to assist in the long term recovery from 2017 disasters. Allocations to: Texas ($5,042,215,000); Florida ($615,922,000); Commonwealth of Puerto Rico ($1,507,179,000); U.S. Virgin Islands ($242,684)
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Grantee(s)SummaryDescriptionCitation/Page #
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General
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AllFocus on unmet housing needsGiven the extent of damage to housing in the eligible disaster areas and the very limited data at present regarding unmet infrastructure and economic revitalization needs, this notice requires each grantee to primarily consider and address its unmet housing recovery needs.5844
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AllAll programs must link to restoration of housing May also allocate funds to address unmet economic revitalization and infrastructure needs, but in doing so, the grantee must identify how unmet housing needs will be addressed or how its economic revitalization or infrastructure activities will contribute to the long-term recovery and restoration of housing in the most impacted and distressed areas. 5844
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AllAllocation methodologyPursuant to the Appropriations Act, HUD has identified the most impacted and distressed areas based on the best available data for all eligible affected areas. A detailed explanation of HUD's allocation methodology is provided in Appendix A (page 5868) of this notice.5845
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All, but VIResources to support most impacted areasAt least 80 percent of the total funds provided to the grantees under this notice must address unmet disaster needs within the HUD-identified most impacted and distressed areas, as identified in the last column in Table 1.5845
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VIResources to support most impacted areasThe United States Virgin Islands must use 100 percent of the total funds provided under this notice to address unmet disaster needs within the HUD-identified most impacted and distressed areas.5845
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All, but VI5% for grant administration (all but VI must expend 80% in the most impacted and distressed areas)Grantees may use up to 5 percent of the total grant award for grant administration. Therefore, other than for the United States Virgin Islands, HUD will include 80 percent of a grantee's expenditures for grant administration in its determination that 80 percent of the total award has been expended in the most impacted and distressed areas identified in Table 1.5845
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Grantees that received prior allocationAction Plan due in 90 daysGrantees that received an allocation from Prior Appropriations must submit an action plan for disaster recovery not later than 90 days after the effective date of this notice5845
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Grantees with no prior allocationAction Plan due in 120 daysAll other grantees receiving an allocation under this notice must submit an action plan not later than 120 days after the effective date of this notice. 5845
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AllUse of FundsUse funds that:5845
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1. Are authorized under title I of the HCD Act or allowed by a waiver or alternative requirement published in this notice; and
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2. Respond to a disaster-related impact to infrastructure, housing, or economic revitalization in the most impacted and distressed areas. To inform the plan, grantees must conduct an assessment of community impacts and unmet needs to guide the development and prioritization of planned recovery activities, pursuant to paragraph A.2.a. in section VI below.
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CDBG-DR funds may not be used for activities reimbursable by or for which funds are made available by the Federal Emergency Management Agency (FEMA) or the US Army Corps of Engineers (USACE). As such, the grantee must verify whether FEMA or USACE funds are available prior to awarding CDBG-DR funds to specific activities or beneficiaries.5845
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Consistent with the policy framework of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (Stafford Act), HUD is underscoring that disaster recovery is a partnership between Federal, state and local government, and reminding CDBG-DR grantees they should invest in their own recovery. In developing this Notice, HUD evaluated options to promote policies that require state and local financial participation to ensure their shared commitment and responsibility for long-term recovery and future disaster risk reduction. HUD expects grantees to financially contribute to their recovery through the use of reserve or "rainy day" funds, borrowing authority, or retargeting of existing financial resources. 5845
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AllManagement and Oversight of FundsThe Appropriations Act requires the Secretary to certify, in advance of signing a grant agreement, that the grantee has in place proficient financial controls and procurement processes, and adequate procedures for proper grant management as detailed in paragraph A.l.a of section VI.5846
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Until grant closeout, all grantees shall adhere to the controls, processes, and procedures described in the grantee's financial controls and procurement processes, unless amended with HUD's approval. 5846
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In advance of signing a grant agreement, HUD will evaluate each grantee's capacity to effectively manage the funds through a review of the grantee's implementation plan and capacity assessment detailed in paragraph A.l.b of section VI. 5846
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Grantee shall adhere to the description of its implementation plan and capacity assessment documentation until grant closeout, unless amended with HUD's approval.5846
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HUD will undertake an annual risk analysis as well as on-site monitoring of grantee management.5846
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AllGrant ProcessTo begin expending of CDBG-DR funds, the following expedited steps are necessary: 5846 - 5847
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1. Grantee follows citizen participation plan for disaster recovery;
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2. Conducts consultation (s) with stakeholders;
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3. Certification submitted within 60 days;
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4. Submission of implementation plan and capacity assessment within 60 days;
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5. Action plan published on website for no less than 14 days for public comment;
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6. Response to public comment and submission of action plan and projections of expenditures and outcomes;
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7. Request and approval of DRGR access;
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8. HUD review within 45 days;
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9. Approval and grant agreement sent to the grantee or a notification of deficiencies with a request to resubmit within 45 days;
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10. Executed grant agreement sent to HUD;
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11. Approved action plan posted on website;
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12. HUD establishes line of credit;
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13. Approved CDBG-DR activities entered in to DRGR;
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14. Draft and publish policies and procedures of programs and key operations implemented by grantee and funded with CDBG-DR;
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15. Complete applicable environmental reviews and receive HUD AUGF; and
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16. Begin to draw down funds no later than 180 days from date of FR notice.
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Applicable Rules, Statues, Waivers and Alternative Requirements
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General
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AllAdditional waiver requestsGrantees may request additional waivers and alternative requirements from the Department as needed to address specific needs related to their recovery activities, accompanied by data to support the request. Grantees should work with the assigned CPD representative to request any additional waivers or alternative requirements from HUD headquarters. 5847
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AllEffective date of waiverUnder the requirements of the Appropriations Act, waivers and alternative requirements are effective five days after they are published in the Federal Register.5847
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Grant Administration
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AllCertification of financial controls, procurement processes, and procedures for proper grant managementThe Appropriations Act requires that the Secretary certify, in advance of signing a grant agreement, that the grantee has in place proficient financial controls and procurement processes and has established adequate procedures to prevent any duplication of benefits as defined by section 312 of the Stafford Act, 42 U.S.C. 5155, to ensure timely expenditure of funds, maintain a comprehensive website regarding all disaster recovery activities assisted with these funds, and detect and prevent waste, fraud, and abuse of funds. 5847
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This information must be submitted within 60 days of the effective date of this notice, or with the grantee's submission of its action plan, whichever date is earlier. If HUD recently certified the controls, processes, and procedures for a grantee, the grantee may request that HUD rely on its previous certification(s) and supporting documentation. In either case, the grantee must certify to the accuracy of its documentation as required by paragraph E.51 of section VI of this notice. 5847
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Grantee must submit certification and documentation with its action plan to support the requirements of items (1) through (6) below, along with a table that clearly indicates which unit and personnel are responsible for each task along with contact information:5847-5848
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1. Proficient financial controls;
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2. Procurement processed/standards to determine that they uphold the principles of full and open competition and include an evaluation of the cost or price;
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3. Adequate procedures to prevent the duplication of benefits;
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4. Adequate procedures to determine timely expenditure of funds;
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5. Adequate procedures to maintain a comprehensive DR website; and
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6. Procedures to detect fraud, waste and abuse.
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AllImplementation Plan and Capacity AssessmentBefore signing a grant agreement, HUD is requiring each grantee to demonstrate that it has sufficient capacity to manage these funds and the associated risks.5848
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Evidence of grantee management capacity will be provided through the grantee's implementation plan and capacity assessment submissions based on: 5848 - 5849
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1. Timely information on application status; and
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2. Implementation plan that includes: a capacity assessment; staffing assessment; description of how it will ensure effective communications between all parties; how it will procure and provide technical assistance for any personnel not employed at the time of the action plan; and identification of the lead agency responsible for implementation of the CDBG-DR award. This must be submitted within 60 days of the effective date of this notice or with the grantee's submission of its action plan, whichever date is earlier.
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AllAction Plan for DR waiver Requirements for CDBG actions plans, located at 42 U.S.C. 5304(a)(l), 42 U.S.C. 5304(m), 42 U.S.C. 5306(d)(2)(C)(iii), 42 U.S.C. 5306(a)(l), 42 U.S.C. 12705(a)(2}, and 24 CFR 91.320, are waived.5849
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AllAction Plan alternative requirementsGrantees must submit to HUD an action plan for disaster recovery which will describe disaster recovery programs that conform to applicable requirements as specified in this notice. Secretary may disapprove an action plan if it idoes not satisfy all the required elements identified in this notice. HUD will monitor the grantee's actions and use of funds for consistency with the plan, as well as meeting the performance and timeliness objectives.5849
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AllAction Plan components
An impact and unmet needs assessment that:
5849 - 5850
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1. Evaluates all aspects of recovery including housing, infrastructure and economic development,
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2. Estimates the unmet needs to ensure CDBG-DR funds meet the needs not addressed by other sources,
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3. Assesses whether public services are necessary to complement the DR activities and how those services are made accessible to individuals with disabilities,
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4. Describes how expenditure for planning will benefit most impacted and distressed are,
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5. Describes impacts geographically, and
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6. Takes into account cost of incorporating mitigation and resilience measures
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A description of connection between unmet needs and allocation of CDBG-DR funds:
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(a) Must primarily address unmet housing needs,
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(b) May allocate to economic revitalization and infrastructure but must identify how any remaining unmet housing need will be address or how economic revitalization and infrastructure activities will contribute to the long term recovery and restoration of housing.
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AllAction Plan componentsDescription of how it will identify and address rehabilitation, reconstruction, replacement, and new construction of housing and shelters: (a) includes affordable LMI rental housing, public housing, emergency shelters for the homeless, market rate units receiving project base assistance or tenant with Section 8 Housing Choice Vouchers; any other HUD assisted housing.5849 - 5851
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Description of how programs will promote housing for vulnerable populations: (a) transitions, permanent supportive and permanent housing for the homeless and at-risk of homelessness; prevention of LMI and extremely low income households from becoming homeless; supportive housing for non-homeless special needs persons; persons with HIV/AIDS, and public housing residents. Assess how planning may affect protected classes, racially and ethically concentrated areas, concentrated areas of poverty and how it will promote availability of affordable housing in low poverty, non-minority areas. How will the plan respond to natural hazard-related impacts, meet accessibility standard and related considerations.
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How plan minimizes displacement and assist displaced persons or entities
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