1179 Community development block grant disaster recovery funds program guidelines; proposed amendments

DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT

Community Development Block Grant Disaster Recovery Funds Program Guidelines; Proposed Amendments

[35 Pa.B. 3431]

   The Department of Community and Economic Development (Department) proposes two minor amendments to the Commonwealth's Action Plan for Federal Fiscal Year (FFY) 2005 and the Program Year that starts on January 1, 2005. The 2005 Action Plan is an update of the Commonwealth's Consolidated Plan for FFY 2004-2008. These amendments: 1) revise how the Commonwealth will utilize HOME funds in the 2005 Action Plan and updates documents previously submitted to the United States Department of Housing and Urban Development (HUD); and 2) summarize the method of distribution for special disaster recovery funds the Department proposes to administer through the Community Development Block Grant (CDBG) program.

HOME Program

   The Department, under a subrecipient agreement, will reserve a greater portion of the 2005 HOME allocation for distribution by PHFA for homebuyer projects (12.4%) and existing owner occupied rehabilitation housing activities (40%) in addition to the portion previously allocated for rental housing development (35%). Additionally, the allocation of 2005 American Dream Downpayment Initiative funds and any unallocated prior year funds will be provided for distribution by PHFA. During the first 6 months of this change, PHFA will not alter the priorities, goal statements or method of distribution of HOME funds. PHFA will operate in collaboration with the Department to award funds consistent with the process as the Department has been or would have awarded those funds.

CDBG Disaster Recovery Grant

   The Department has applied to HUD for $2,528,243 in CDBG Disaster Recovery Grant funds to assist communities in recovering from a series of severe storms, flooding, Tropical Storms and Tropical Depressions that affected this Commonwealth between September 15, 2003, and October 1, 2004. This funding is administered under a special Congressional appropriation of CDBG program funds and subsequent regulations that were published at 69 FR 72100 (December 10, 2004).

   Notice of availability of this funding was announced at 35 Pa.B. 1589 (March 5, 2005), through the Department's website and e-mail to a large number of potential applicants. The Department developed guidelines to evaluate applications, established priority activities and established a scoring system. This process identified activities to repair and rehabilitate housing as priority activities. Twenty applications for funding consideration were received. If the Department is awarded this funding from HUD, the Department will contract with ten municipalities which have submitted applications which were determined to have identified the greatest disaster recovery need.

   These minor amendments are anticipated to become effective as of July 1, 2005.

   Individuals who wish to comment on these amendments may send those comments to Karen Smith, Department of Community and Economic Development, 4th Floor, Commonwealth Keystone Building, Harrisburg, PA, 17120.

DENNIS YABLONSKY,   
Secretary

[Pa.B. Doc. No. 05-1179. Filed for public inspection June 17, 2005, 9:00 a.m.]