42 USC 5324 - Community development block grant disaster recovery program

View all text of Chapter 69 [§ 5301 - § 5324]

§ 5324. Community development block grant disaster recovery program

(a) Authorization, formula, and allocation

(1) Authorization

(2) Grant awards

(3) Section 5306 allocations

(4) Federal Register notice

(A) In general

(B) Public commentIf 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 up to 18 percent of the total estimate of unmet needs.

(5) Regulations

(A) In general

(B) Formula requirementsThe 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 18 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 data.

(D) Interim allocationUntil 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 of up to 18 percent of the total estimate of unmet need.

(6) Allocation of funds

(A) In generalThe 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, 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

(7) Preliminary funding

(A) In general

(B) Amount

(i) Maximum

(ii) Sliding scale

(C) Use of fundsThe 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 fundingPreliminary funding awarded under subparagraph (A)—

(i) is not subject to the certification requirements of subsection (h)(2); 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)(3).

(E) Waiver

(F) Amended award

(i) In general

(ii) Applicability

(G) Technical assistance

(b) Interchangeability

(1) In general

(2) Requirements

(3) Emergency designation

(1) RequirementNot 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 5165 of this title;

(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 consultationTo permit public examination and appraisal of the plan described in paragraph (1), to enhance the public accountability of grantee,1

1 So in original. Probably should be preceded by “the”.

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;

(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) ApprovalThe 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 fundsNot 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

(5) PrioritizationThe 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;

(B) address housing needs arising from a disaster, or those needs present prior to a disaster, including the needs of both renters and homeowners;

(D) use cost-effective means of preventing harm to people and property and incorporate protective features and redundancies; and

(E) other measures that will assure the continuation of critical services during future disasters.

(6) Proportional allocationFor each specific disaster, a grantee under this section shall allocate grant funds proportional to unmet needs between housing activities for renters and homeowners, economic revitalization, and infrastructure unless the Secretary specifically finds that—

(A) there is a compelling need for a disproportional allocation among those unmet needs; and

(B) the disproportional allocation described in subparagraph (A) is not inconsistent with the requirements under paragraph (4).

(7) Disaster risk mitigation

(A) DefinitionIn 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

(i) In general

(ii) Treatment as financial assistance

(D) Consideration of future risks

(8) Relocation

(A) In general

(B) PolicyEach 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) CertificationsAny 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 recipients described in subsection (c)(4)(A) 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)(A);

(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 5304 of this title 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 chapter 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 generalThe Secretary shall, on not less frequently than an annual basis until the closeout of a particular grant allocation, 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 chapter 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

(3) Failure to meet targets

(A) Suspension

(B) Performance improvement plan

(4) Collection of information and reporting

(A) Requirement to report

(B) Public availability

(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

(E) Research partnerships

(i) In general

(ii) Privacy protections

(f) Eligible activities

(1) In generalActivities assisted under this section—

(A) may include activities permitted under section 5305 of this title 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

(3) Administrative costs, technical assistance, and planning

(A) In general

(B) Availability

(i) In general

(ii) Use of funds

(iii) Waivers

(4) Program incomeNotwithstanding 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 chapter upon closeout of the grant.

(5) Prohibition on use of assistance for employment relocation activities

(A) In general

(B) Applicability

(6) Requirements

(g) Environmental review

(1) Adoption

(2) Approval of release of funds

(3) Units of general local government

(h) Financial controls and procedures

(1) In generalThe 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

(2) Certification

(3) Compliance before allocation

(4) Duplication of benefits

(A) In general

(B) PenaltiesIn 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 an 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.

(i) Waivers and alternative requirements

(1) In general

(2) Effective date

(3) Public notification

(j) Unused amounts

(1) Deadline to use amounts

(2) RecaptureThe 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 fundsNotwithstanding paragraph (1), the Secretary—

(A) shall allow a grantee under this section to retain amounts needed to close out grants; and

(B) may allow a grantee under this section to retain 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 fundsThe 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 Committee on Appropriations and the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Appropriations and the Committee on Financial Services of the House of Representatives that specifies the period of that extension.

(k) Definition

(Pub. L. 93–383, title I, § 124, as added Pub. L. 119–101, title V, § 504(d)(4), July 11, 2026, 140 Stat. 933.)