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signed by President Obama. This letter
provides your FY 2009 allocations for the Office of Community Planning and Development' s
Community Development Block Grant (CDBG); HOME Investment
CPD' s) formula programs:
Partnerships; Housing Opportunities for Persons With AIDS ( HOPWA); and Emergency Shelter
Grants ( ESG). These programs provide funding for housing, community and economic
development activities, and assistance for low- and moderate -income persons and special
populations across the country.
HUD' s budget for FY 2009 is included in the Omnibus Appropriations Act, 2009 (Public Law
111 -8). The amounts available include reallocated funds for the CDBG and HOME programs.
There is no funding for the American Dream Downpayment Initiative ( ADDI) in FY 2009. The
following amounts reflect the level of funding available for these programs in your community:
142, 221
Community Development Block Grant $
HOME Investment Partnerships $ 0
0
Housing Opportunities for Persons With AIDS $
0
Emergency Shelter Grants $
This letter provides an opportunity for HUD to highlight several important issues. First, HUD
continues to emphasize the importance of effective performance measurements in all of its formula
grant programs. Grantees must report outcome indicators for all open activities in the Integrated
Disbursement and Information System (IRIS) to assess their performance toward achieving their
objectives and outcomes in their Consolidated Annual Performance and Evaluation Report. It is
vitally important that HUD have complete performance measurement data to report to Congress, the
Office of Management and Budget, and the public at large. The Obama Administration' s
Your
commitment to transparency and accountability underscores the importance of this data.
ongoing attention to ensuring complete and accurate reporting of performance measurement data
will be crucial to HUD's ability to demonstrate the effectiveness of its formula grant programs.
Second, problems in the subprime mortgage markets and resulting property foreclosures are
having significant impacts on a number of local governments. CDBG and HOME funds represent a
resource that local governments may use to address some of the consequences of these problems,
particularly for lower income families and neighborhoods. HUD urges its formula grantees, as part
www.hud.gov espanol. hud. gov
of the consolidated plan process, to examine their use of these grant funds to either reinforce
activities that help stabilize homeownership at the local level or to consider establishing such
activities in the coning year. HUD is committed to using the flexibility of these programs to aid
communities in addressing the potential impact of these problems and urges grantees to contact the
appropriate CPD field office to discuss any ideas or concerns on the use of formula funds for these
purposes.
Additionally, these funds are separate from funds appropriated under the American Recovery
and Reinvestment Act (Recovery Act). The Recovery Act provided funds for the CDBG program
and several other initiatives managed by CPD, such as the Homelessness Prevention Fund and the
Tax Credit Assistance Program. These Recovery Act funds have already been allocated on a
formula basis and HUD has issued guidance on how to access and use these funds. If your
jurisdiction is receiving funds under any of the Recovery Act programs, please review the
appropriate guidance by visiting HUD' s Recovery Act website at www.bud.gov.
Finally, the Department again urges grantees to consider the needs of our returning veterans
and their families in the design and administration of these formula programs. Over the past seven
years, several hundred thousand of our fellow Americans have served our nation on the battlefields
of Iraq and Afghanistan and countless other places around the globe. Many veterans are returning
to our communities with wounds and injuries that may make it difficult for them to find housing or
support themselves and/ or their families. I am confident that you will consider their sacrifice and
ensure that these men and women receive the utmost consideration in the use of these funds at the
local level.
I look forward to continuing our partnership to assist lower income residents in your
community. As always, HUD is available to provide any assistance you require in implementing
your programs. If you or any member of your staff have questions, please contact your local CPD
office director.
Sincerely,
Nelson R. Bregon
General Deputy Assistant Secretary
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Docket No. FR- 5309 -N -011
Notice of Program Requirements for
Community Development Block Grant Program
Funding Under the American Recovery and Reinvestment Act of 2009
AGENCY: Office of the Assistant Secretary for Community Planning and Development,
HUD.
ACTION: Notice.
SUMMARY: This notice advises the public of the statutory and regulatory waivers granted
to grantees under the American Recovery and Reinvestment Act of 2009 ( Recovery Act).
The Recovery Act appropriated $ 1 billion in Community Development Block Grant ( CDBG)
funds to states and local governments to carry out, on an expedited basis, eligible activities
under the CDBG program. HUD is authorized by statute to specify alternative requirements
and make regulatory waivers for this purpose. This notice also explains statutory issues
affecting program design and implementation. The Department is also using this notice to
provide grantees information about other ways in which the requirements for this grant vary
from regular CDBG program rules. Except as described in this Notice, the statutory and
regulatory provisions governing the CDBG program apply to this program.
DATES: Entitlement grantees, Insular Areas, and non -entitlement counties in Hawaii are to
submit the substantial amendments to their program year (PY) 2008 action plans to their
HUD field office by June 5, 2009. States are to submit the substantial amendments to their
PY2008 action plans to their HUD field office by June 29, 2009. The deadline for the
Homelessness Prevention and Rapid Re- housing Program ( HPRP) funding pursuant to
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HUD' s March 19, 2009, Federal Re ister notice is May 18. Grantees that wish to submit a
single substantial amendment for both programs must do so by May 18, 2009.
FOR FURTHER INFORMATION CONTACT: Stanley Gimont, Director, Office of
Block Grant Assistance, Office of Community Planning and Development, Department of
Housing and Urban Development, 451 7th Street, SW, Room 7286, Washington, DC 20410;
telephone 202 -708 -3587 ( this is not a toll -free number). Persons with hearing or speech
impainnents may access this number through TTY by calling the toll -free Federal
Information Relay Service at 800 -877 -8339. Interested parties may also visit the CDBG -R
web page on HUD' s Recovery Act website, h":// www.hud.gov/ recoveM/, for updated
information and resources. Questions regarding the CDBG -R program may be submitted to
HudRecoveryAct@hud. gov.
SUPPLEMENTARY INFORMATION:
Authority to Provide Alternative Requirements and Grant Regulatory Waivers
Title XII of Division A of the American Recovery and Reinvestment Act of 2009
Public Law 111 -005, approved February 17, 2009) appropriates $ 1 billion to carry out the
CDBG program under Title I of the Housing and Community Development Act of 1974 ( 42
U.S. C. 5301, et seq.) ( the HCDA) on an expedited basis. These funds will be distributed to
grantees that received CDBG funding in Fiscal Year (FY) 2008 in accordance with the
provisions of 42 U. S. C. 5306. The grant program under Title XII is commonly referred to as
the CDBG Recovery (CDBG -R) program. When referring to a provision of the
appropriations statute itself, this notice will refer to the Recovery Act; when referring to the
grants, grantees, assisted activities, and implementation rules, this notice will use the term
CDBG -R.
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In administering CDBG -R funds, the Secretary may waive or specify alternative
requirements for any provision of any statute or regulation in connection with the obligation
by the' Secretary or the use by the recipient of these funds except for requirements related to
fair housing, nondiscrimination, labor standards, and the enviroru-nent, upon a finding that
such waiver is necessary to expedite or facilitate the timely use of such funds and would not
be inconsistent with the overall purpose of the statute. Such regulatory relief as HUD
deemed necessary and is authorized to provide under 24 CFR 5. 110 and 24 CFR 91. 600 to
pen-nit implementation of CDBG --
R is provided in this notice.
The Secretary finds that the alternative requirements outlined in Section 11. of this
notice are necessary to expedite the use of these funds for their required purposes.
Except as described in this notice, statutory and regulatory provisions governing the
CDBG program, including those at 24 CFR part 570 subpart 1 for states and those at 24 CFR
part 570 subparts A, C, D, E, F, J, K, and O for CDBG entitlement communities, as
appropriate, shall apply to the use of these funds. Subpart M, concerning the Section 108
Loan Guarantee program, is not applicable to CDBG -R. Other sections of the notice will
provide further details of the changes, the majority of which deal with adjustments
necessitated by Recovery Act provisions to expedite the use of CDBG -R funds.
Ensuring_Responsible Spending of Recovery Act Funds
Funding available under the Recovery Act has clear purposes T- to stimulate the
economy through measures that modernize the Nation' s infrastructure, improve energy
efficiency, and expand educational opportunities and access to health care. In implementing
the Recovery Act, Federal agencies are undertaking unprecedented measures to ensure
transparency and accountability in the use of the funds. Concurrently, Federal agencies must
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ensure that the funds are employed in a prudent manner consistent with applicable program
requirements.
The Department desires that CDBG -R grantees carefully evaluate proposed projects
for consistency with the overarching goals of the Recovery Act, especially the above -cited
purposes. To this extent, HUD strongly urges grantees to use CDBG -R funds for hard
development costs associated with infrastructure activities that provide basic services to
residents or activities that promote energy efficiency and conservation through rehabilitation
or retrofitting of existing buildings. While the full range of
