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PA Bulletin, Doc. No. 20-606

NOTICES

DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT

Extended Citizen Comment Period for the Draft 2020 Annual Action Plan

[50 Pa.B. 2285]
[Saturday, May 2, 2020]

 The Department of Community and Economic Development (Department) wishes to announce an extended citizen comment period for the Commonwealth's Draft Federal Fiscal Year 2020 Annual Action Plan (Plan), due to the release of the Commonwealth's allocation for the Federal Housing Trust Fund. The Plan is submitted to the United States Department of Housing and Urban Development (HUD) as the annual application for Federal funds administered by the Commonwealth. The HUD funding programs covered by the Plan and administered by the Department are the Community Development Block Grant (CDBG), the HOME Investment Partnership (HOME), the Emergency Solutions Grant (ESG) programs, Community Development Block Grant—Disaster Recovery (CDBG-DR) and Neighborhood Stabilization Program (NSP). Also covered by the Plan is the Housing Opportunities for Persons with AIDS (HOPWA) program which the Department of Health administers and the National Housing Trust Fund (HTF) which is administered by the Pennsylvania Housing Finance Agency (PHFA). This year an additional resource is being added to the Federal programs, the Recovery Housing Program under the SUPPORT for Patients and Communities Act (Pub.L. No. 115-271).

 This summary is designed to provide an opportunity for citizens, local governmental officials and interested organizations of the Commonwealth to comment about the Plan prior to its submission to HUD. Comments may be electronically submitted to the Department by means of RA-DCEDcdbghomequestions@pa.gov. Written comments should be submitted to Megan L. Snyder, Center for Community and Housing Development, Department of Community and Economic Development, 400 North Street, 4th Floor, Commonwealth Keystone Building, Harrisburg, PA 17120-0225. Electronic and written comments must be received by close of business on Wednesday, June 3, 2020, at 4 p.m. to be included as testimony in the Plan.

 Note that the Plan has been updated to cover the Commonwealth's response to the novel coronavirus (COVID-19) crisis and to provide the flexibility to the grantees to respond to their individual municipal needs. The affected Federal Community Planning and Development programs can only address these needs within the parameters of their guidelines. The Department and the Department of Health have requested and received approval of waivers as HUD has allowed but most of the requirements of the programs remain in place.

Purpose

 The Plan takes the strategy developed in the Consolidated Plan of 2019—2023 and applies it to the administration of the CDBG, HOME, ESG, CDBG-DR, NSP, HOPWA and HTF programs for 2020 as well as the Recovery Housing Program. HUD must approve the Plan in order for the Commonwealth to receive funding under the identified HUD programs.

 The draft 2020 Plan may be found on the Department's web site at http://dced.pa.gov and was made available to its stakeholders on April 17, 2020. Following are the allocations and proposed changes to the methods of distribution for each program.

 The Department reserves the right to divert any recaptured funds and all uncommitted competitive funds to respond to State or Federally declared natural disasters or emergency declarations.

CDBG—$42,023,599
 Entitlement
—No Changes
Competitive—No Changes

CDBG-DR—No Changes

HOME—$19,932,078

 1. Maximum funding availability varies by HOME eligible activity.

 a. Applicants seeking Existing Owner-Occupied Housing Rehabilitation and Homebuyer activities funding will be limited to a maximum of $500,000 as a town, borough or township. Cities and county applicants are limited to $750,000.

 b. Applicants seeking rental housing and homebuyer—new construction activities will be limited to a maximum funding request of the per unit subsidy limits for the Metropolitan Statistical Area for the proposed activity.

 2. All rental housing applicants must demonstrate matching contributions equal to 25% or greater for all HOME rental projects. Eligible match contributions may include cash contributions from non-Federal sources, value of donated property, forbearance of fees, cost of onsite infrastructure improvements directly required for the HOME-assisted project and other eligible sources more specifically detailed in 24 CFR 92.220 (relating to form of matching contribution).

 3. Rental housing developments funded by the Department competitive process will be limited to projects consisting of less than 10 total units. All other rental housing activities, for 10 units and above may be submitted to PHFA and following PHFA's Penn HOMES application process.

 4. A Community Housing Development Organization (CHDO) can receive up to 50% of its annual operating budget or $50,000 whichever is greater as CHDO operating funds. (Note: The Department HOME Program has capped all CHDO operating assistance at $100,000 per CHDO Set-Aside project per current round.)

ESG—$5,776,990

 1. Remove the Department minimum allocation percentage for the rapid rehousing activity (40%).

 2. No more than 60% of the annual Federal allocation may be used for emergency shelter activities (including operations, essential services and street outreach).

 3. Remove Department maximum of 20% of allocation for emergency shelter activities (operations, essential services and street outreach) and remove cap of operational support as a percentage of overall operating budget.

 4. Allow Federal direct-entitlement ESG grantees to seek funding in these years for either rapid rehousing activities or homeless prevention activities. Rapid rehousing must still represent at least 40% of the overall use of ESG funds for direct entitlement communities only.

 5. Each applicant must demonstrate coordination of their efforts with the local Continuum of Care priorities.

 6. Regional activities must benefit service areas greater than one county.

 7. Funding target—housing locator services

 Housing locator services focus on services or activities necessary to assist program participants in locating, obtaining and retaining suitable permanent housing and increasing housing stability and self-sufficiency. Services should include: assessment, arranging, coordinating, housing stability plan development; with an emphasis on acting as a liaison to secure and maintain housing; employment; a connection to mainstream resources and services; coordination with other providers; monitoring of progress; and advocating on behalf of the client. Services should also focus on building a set of supports that can help prevent the recurrence of a housing crisis.

 8. The Department will grant award amounts based on the evaluations until all grant funds are awarded. Applicants who have previously returned funds will receive a reduction of 25 points on their application.

 9. ESG funds may become available for reallocation as a result of poor grantee performance, voluntary returns, funds returned at the end of the contract period, repayment of ineligible expenses or HUD approved reallocation of expired funds. The Department will utilize its Reallocation Policy to allocate available funds.

HOPWA—$3,078,584

 Beginning in 2020, the Department of Health is no longer the Alternate Grantee for the HUD HOPWA funding for the Bensalem Township EMSA. The City of Philadelphia, Division of Community and Planning Development is now the Alternate Grantee for the 2020 HUD HOPWA funding and going forward.

HTF—$9,729,334

 The method of distribution and rehabilitation standards for the HTF program will remain the same.

RECOVERY HOUSING—$1,200,000

 Allocation has been made through the Recovery Housing Program under the SUPPORT for Patients and Communities Act to assist with temporary housing for persons affected by the Opioid crisis. Waiting on guidelines from HUD.

Modification to the citizen participation process for the consolidated plan and action plan:

Other special project grants or emergency declaration:

 In the event that other Federal special programs are awarded to the Commonwealth or if an emergency declaration is made that affects the administration of the existing Federal programs, that are authorized under the Housing and Community Development Act of 1974, as amended (42 U.S.C.A. §§ 5301—5322), Cranston-Gonzales National Affordable Housing Act of 1990, as amended (42 U.S.C.A. §§ 12701—12713) or McKinney-Vento Homeless Assistance Act of 1987, as amended (42 U.S.C.A. §§ 11301—11435), or both, and administered by the Department, the citizen participation requirements will be followed in accordance with either the statute or regulations set forth in the program. If HUD may allow for or provides opportunities to request waivers to specific elements of the citizen participation process the Department will determine whether a waiver is necessary and seek use of the waiver authority in accordance with information provided by HUD. Once the waiver is granted by HUD to the Commonwealth, the special conditions will be passed to its grantees, if necessary, to streamline the citizen participation process in accordance with the regulations in place.

 To take advantage of the granted waiver authority, the grantee must amend their Citizen Participation Plan to meet the minimum standards included in the waiver if the required action is not already covered in their Citizen Participation Plan.

Amendment—4-2020—Coronavirus Aid, Relief, and Economic Security Act (CARES Act) (Pub.L. No. 116-136) Authorization:

Emergency declaration citizen participation and expedited modification process:

 The CARES Act allows for a grantee to adopt and use expedited procedures to prepare, propose, modify or amend its statement of activities to the Fiscal Year (FY) 2019 and FY 2020 grant and new CARES Act funding related to the use of funding to address emerging COVID-19 response.

 As long as National or local health authorities recommend social distancing and limiting public gatherings for public health reasons, grantees do not need to hold in-person public hearings but ''shall provide citizens with notice and a reasonable opportunity to comment of no less than 5 calendar days. A grantee may create virtual public hearings to fulfill applicable hearing requirements for all grants from funds made available under this law.'' Any virtual hearing ''shall provide reasonable notification and access for citizens in accordance with the grantee's certifications, timely responses from local officials to all citizen questions and issues, and public access to all questions and responses.''

 The 2020 Plan is available on the Internet or electronically for public comment from April 18, 2020, through June 3, 2020.

DENNIS M. DAVIN, 
Secretary

[Pa.B. Doc. No. 20-606. Filed for public inspection May 1, 2020, 9:00 a.m.]



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