CDBG-DR Consolidated Notice quick guide for 2020, 2021, and 2022 disasters
DownloadHUD released the May 2023 CDBG-DR Federal Register notice on May 18, 2023, announcing allocations of $3,391,220,000 from Public Laws 117-180 and 117-328 (collectively, the “Appropriations Acts”) for disasters occurring in 2022.
The May 2023 notice also covers:
- Allocation Announcement Notice identifies grant requirements for the 2022 disasters funded with CDBG-DR as well as a limited number of amendments that apply to the CDBG-DR grants for disasters occurring in 2020, 2021, and 2022.
- Consolidated Notice, Appendix B is the same as previous notices.
Changes from the January 2023 Consolidated Notice carried forward
- Allows for use of administrative funds across multiple grants as well as interchangeability of program funding in overlapping Most Impacted and Distressed (MID) areas.
- Allows the funding of privately-owned, for-profit utilities as long as additional requirements are followed.
- Pre-award and pre-application costs of potential applicants can be incurred within one year after the applicability date of the Notice that announced the initial allocation of CDBG–DR funds (or within one year after the date of the disaster, whichever is later).
Key takeaways from the May 2023 Consolidated Notice
- Duplication of Benefits (DOB).
- HUD reminds 2022 grantees that the Disaster Recovery Reform Act of 2018 (DRRA) loan exception does not apply to disasters occurring in 2022; therefore, subsidized loans may be a duplication of benefits.
- HUD reviews the DOB process thoroughly including:
- IV.A.1. Duplication of Benefits.
- IV.A.1.(a). The Stafford Act.
- IV.A.1.(d). Basic Duplication of Benefits Calculation Framework.
- IV.A.1.(d)(i). Assess Applicant Need.
- IV.A.1.(d)(ii). Identify Total Assistance.
- IV.A.1.(d)(iii). Exclude Non-Duplicative Amounts.
- IV.A.1.(d)(iii)(1). Funds for a Different Purpose.
- IV.A.1.(d)(iii)(2). Funds for Same Purpose, Different Allowable Use.
- IV.A.1.(d)(iv). Identify DOB Amount and Calculate the Total CDBG-DR Award.
- IV.A.1.(d)(v). Reassess Unmet Need When Necessary.
- IV.A.1.(e). Special Considerations including subsidized loans.
- Multiple disasters in the same areas and DOB documentation.
When two disasters occur in the same area, and the applicant has not fully recovered from the first disaster before the second disaster occurs: Applicants are not required to maintain documentation related to the use of public disaster assistance (federal, state, and local) beyond the period required by the agency that provided the assistance. If documentation cannot be provided, the grantee may accept a self-certification regarding how the applicant used the other agency’s assistance, provided that the applicant is advised of the criminal and civil penalties that apply in cases of false claims and fraud, and the grantee determines that the applicant’s total need is consistent with data the grantee has about the nature of damage caused by the disasters (e.g., flood inundation levels).
- Additional green building standard.
In the 2020, 2021, and 2022 notices, HUD inadvertently omitted a standard. Grantees can use either the ICC–700 National Green Building Standard (NGBS) Green or NGBS Green+ Resilience standard, among other industry recognized standards.
- Clarification of the use of “uncapped” income limits.
HUD clarifies that the annual uncapped income limits applies to CDBG-DR funded activities in the 10 jurisdictions covered by the uncapped limits, including jurisdictions that receive disaster recovery funds from a state CDBG-DR grantee. This alternative requirement applies to grants made in response to disasters occurring in 2020, 2021, and 2022.
Download the guide and use it to navigate the requirements in the May 2023 Notice. Filter by chapter, category, or section to quickly find a summary of the requirements and the page number in the Notice for reference.
