H.R. 8291

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8291 Introduced in House (IH)]

<DOC>

119th CONGRESS
2d Session
H. R. 8291

To establish a community disaster assistance fund for housing and 
community development and to authorize the Secretary of Housing and 
Urban Development to provide, from the fund, assistance through a 
community development block grant disaster recovery program, and for 
other purposes.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

April 15, 2026

Mr. Green of Texas introduced the following bill; which was referred to 
the Committee on Financial Services, and in addition to the Committee 
on Appropriations, for a period to be subsequently determined by the 
Speaker, in each case for consideration of such provisions as fall 
within the jurisdiction of the committee concerned

_______________________________________________________________________

A BILL

To establish a community disaster assistance fund for housing and 
community development and to authorize the Secretary of Housing and 
Urban Development to provide, from the fund, assistance through a 
community development block grant disaster recovery program, and for 
other purposes.

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Reforming Disaster Recovery Act''.

SEC. 2. FINDINGS.

Congress finds that--
(1) following a major disaster declared by the President 
under section 401 of the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act (42 U.S.C. 5170), the subset of 
communities that are most impacted and distressed as a result 
of the disaster face critical social, economic, and 
environmental obstacles to recovery, including insufficient 
public and private resources to address disaster-related 
housing and community development needs for lower income 
households and distressed communities;
(2) unmet disaster recovery needs, including housing 
assistance needs, can be especially widespread among persons 
with extremely low-, low-, and moderate-incomes;
(3) economic, social, and housing hardships that affect 
communities before disasters are exacerbated during crises and 
can delay and complicate long-term recovery, especially after 
catastrophic major disasters;
(4) States, units of local government, and Indian Tribes 
within the most impacted and distressed areas resulting from 
major disasters benefit from flexibility to design programs 
that meet local needs, but face inadequate financial, 
technical, and staffing capacity to plan and carry out 
sustained recovery, restoration, and mitigation activities;
(5) the speed and effectiveness considerations of long-term 
recovery from catastrophic major disasters is improved by 
predictable investments that support disaster relief, long-term 
recovery, restoration of housing and infrastructure, and 
economic revitalization, primarily for the benefit of low- and 
moderate-income persons;
(6) undertaking activities that mitigate the effects of 
future natural disasters and extreme weather and increase the 
stock of affordable housing, including affordable rental 
housing, as part of long-term recovery can significantly reduce 
future fiscal and social costs, especially within high-risk 
areas, and can help to address outstanding housing and 
community development needs by creating jobs and providing 
other economic and social benefits within communities that 
further promote recovery and resilience; and
(7) the general welfare and security of the United States 
and the health and living standards of its people require 
targeted resources to support State and local governments in 
carrying out their responsibilities in disaster recovery and 
mitigation through interim and long-term housing and community 
development activities that primarily benefit low- and 
moderate-income persons.

SEC. 3. DEFINITIONS.

In this Act:
(1) Department.--The term ``Department'' means the 
Department of Housing and Urban Development.
(2) Fund.--The term ``Fund'' means the Long-Term Disaster 
Recovery Fund established under section 5.
(3) Secretary.--The term ``Secretary'' means the Secretary 
of Housing and Urban Development.

SEC. 4. DUTIES OF THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT.

(a) In General.--The offices and officers of the Department shall 
be responsible for--
(1) leading and coordinating the disaster-related 
responsibilities of the Department under the National Response 
Framework, the National Disaster Recovery Framework, and the 
National Mitigation Framework;
(2) coordinating and administering programs, policies, and 
activities of the Department related to disaster relief, long-
term recovery, resiliency, and mitigation, including disaster 
recovery assistance under title I of the Housing and Community 
Development Act of 1974 (42 U.S.C. 5301 et seq.);
(3) supporting disaster-impacted communities as those 
communities specifically assess, plan for, and address the 
housing stock and housing needs in the transition from 
emergency shelters and interim housing to permanent housing of 
those displaced, especially among vulnerable populations and 
extremely low-, low-, and moderate-income households;
(4) collaborating with the Federal Emergency Management 
Agency and the Small Business Administration and across the 
Department to align disaster-related regulations and policies, 
including incorporation of consensus-based codes and standards 
and insurance purchase requirements, and ensuring coordination 
and reducing duplication among other Federal disaster recovery 
programs;
(5) promoting best practices in mitigation and land use 
planning, including consideration of traditional, natural, and 
nature-based infrastructure alternatives;
(6) coordinating technical assistance, including 
mitigation, resiliency, and recovery training and information 
on all relevant legal and regulatory requirements, to entities 
that receive disaster recovery assistance under title I of the 
Housing and Community Development Act of 1974 (42 U.S.C. 5301 
et seq.) that demonstrate capacity constraints; and
(7) supporting State, Tribal, and local governments in 
developing, coordinating, and maintaining their capacity for 
disaster resilience and recovery and developing pre-disaster 
recovery and hazard mitigation plans, in coordination with the 
Federal Emergency Management Agency and other Federal agencies.
(b) Establishment of the Office of Disaster Management and 
Resiliency.--Section 4 of the Department of Housing and Urban 
Development Act (42 U.S.C. 3533) is amended by adding at the end the 
following:
``(i) Office of Disaster Management and Resiliency.--
``(1) Establishment.--There is established, in the Office 
of the Secretary, the Office of Disaster Management and 
Resiliency.
``(2) Duties.--The Office of Disaster Management and 
Resiliency shall--
``(A) be responsible for oversight and coordination 
of all departmental disaster preparedness and response 
responsibilities; and
``(B) coordinate with the Federal Emergency 
Management Agency, the Small Business Administration, 
and the Office of Community Planning and Development 
and other offices of the Department in supporting 
recovery and resilience activities to provide a 
comprehensive approach in working with communities.''.

SEC. 5. LONG-TERM DISASTER RECOVERY FUND.

(a) Establishment.--There is established in the Treasury of the 
United States an account to be known as the Long-Term Disaster Recovery 
Fund.
(b) Deposits, Transfers, and Credit.--
(1) In general.--The Fund shall consist of amounts 
appropriated, transferred, and credited to the Fund.
(2) Transfers.--The following may be transferred to the 
Fund:
(A) Amounts made available through section 
106(c)(4) of the Housing and Community Development Act 
of 1974 (42 U.S.C. 5306(c)(4)) as a result of actions 
taken under section 104(e), 111, or 123(j) of such Act.
(B) Any unobligated balances available until 
expended remaining or subsequently recaptured from 
amounts appropriated for any disaster and related 
purposes under the heading ``Community Development 
Fund'' in any Act prior to the establishment of the 
Fund.
(3) Use of transferred amounts.--Amounts transferred to the 
Fund shall be used for the eligible uses described in 
subsection (c).
(c) Eligible Uses of Fund.--
(1) In general.--Amounts in the Fund shall be available--
(A) to provide assistance in the form of grants 
under section 123 of the Housing and Community 
Development Act of 1974, as added by section 6; and
(B) for activities of the Department that support 
the provision of such assistance, including necessary 
salaries and expenses, information technology, capacity 
building and technical assistance (including assistance 
related to pre-disaster planning), and readiness and 
other pre-disaster planning activities that are not 
readily attributable to a single major disaster.
(2) Set aside.--Of each amount appropriated for or 
transferred to the Fund, 2 percent shall be made available for 
activities described in paragraph (1)(B), which shall be in 
addition to other amounts made available for those activities.
(3) Transfer of funds.--Amounts made available for use in 
accordance with paragraph (2)--
(A) may be transferred to the account under the 
heading for ``Program Offices--Community Planning and 
Development'', or any successor account, for the 
Department to carry out activities described in 
paragraph (1)(B); and
(B) may be used for the activities described in 
paragraph (1)(B) and for the administrative costs of 
administering any funds appropriated to the Department 
under the heading ``Community Planning and 
Development--Community Development Fund'' for any major 
disaster declared under section 401 of the Robert T. 
Stafford Disaster Relief and Emergency Assistance Act 
(42 U.S.C. 5170) in any Act before the establishment of 
the Fund.
(d) Interchangeability of Prior Administrative Amounts.--Any 
amounts appropriated in any Act prior to the establishment of the Fund 
and transferred to the account under the heading ``Program Offices 
Salaries and Expenses--Community Planning and Development'', or any 
predecessor account, for the Department for the costs of administering 
funds appropriated to the Department under the heading ``Community 
Planning and Development--Community Development Fund'' for any major 
disaster declared under section 401 of the Robert T. Stafford Disaster 
Relief and Emergency Assistance Act (42 U.S.C. 5170) shall be available 
for the costs of administering any such funds provided by any prior or 
future Act, notwithstanding the purposes for which those amounts were 
appropriated and in addition to any amount provided for the same 
purposes in other appropriations Acts.
(e) Availability of Amounts.--Amounts appropriated, transferred, 
and credited to the Fund shall remain available until expended.
(f) Formula Allocation.--Use of amounts in the Fund for grants 
shall be made by formula allocation in accordance with the requirements 
of section 123(a) of the Housing and Community Development Act of 1974, 
as added by section 6.
(g) Authorization of Appropriations.--There are authorized to be 
appropriated to the Fund such sums as may be necessary to respond to 
current or future major disasters declared under section 401 of the 
Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 
U.S.C. 5179) for grants under section 123 of the Housing and Community 
Development Act of 1974, as added by section 6.

SEC. 6. ESTABLISHMENT OF CDBG DISASTER RECOVERY PROGRAM.

Title I of the Housing and Community Development Act of 1974 (42 
U.S.C. 5301 et seq.) is amended--
(1) in section 102(a) (42 U.S.C. 5302(a))--
(A) in paragraph (20)--
(i) by redesignating subparagraph (B) as 
subparagraph (C);
(ii) in subparagraph (C), as so 
redesignated, by inserting ``or (B)'' after 
``subparagraph (A)''; and
(iii) by inserting after subparagraph (A) 
the following:
``(B) The term `persons of extremely low income' means 
families and individuals whose income levels do not exceed 
household income levels determined by the Secretary under 
section 3(b)(2) of the United States Housing Act of 1937 (42 
U.S.C. 1437a(b)(2)(C)), except that the Secretary may provide 
alternative definitions for the Commonwealth of Puerto Rico, 
Guam, the Commonwealth of the Northern Mariana Islands, the 
United States Virgin Islands, and American Samoa.''; and
(B) by adding at the end the following:
``(25) The term `major disaster' has the meaning given the 
term in section 102 of the Robert T. Stafford Disaster Relief 
and Emergency Assistance Act (42 U.S.C. 5122).'';
(2) in section 106(c)(4) (42 U.S.C. 5306(c)(4))--
(A) in subparagraph (A)--
(i) by striking ``declared by the President 
under the Robert T. Stafford Disaster Relief 
and Emergency Assistance Act'';
(ii) inserting ``States for use in 
nonentitlement areas and to'' before 
``metropolitan cities''; and
(iii) inserting ``major'' after ``affected 
by the'';
(B) in subparagraph (C)--
(i) by striking ``metropolitan city or'' 
and inserting ``State, metropolitan city, or'';
(ii) by striking ``city or county'' and 
inserting ``State, city, or county''; and
(iii) by inserting ``major'' before 
``disaster'';
(C) in subparagraph (D), by striking ``metropolitan 
cities and'' and inserting ``States, metropolitan 
cities, and'';
(D) in subparagraph (F)--
(i) by striking ``metropolitan city or'' 
and inserting ``State, metropolitan city, or''; 
and
(ii) by inserting ``major'' before 
``disaster''; and
(E) in subparagraph (G), by striking ``metropolitan 
city or'' and inserting ``State, metropolitan city, 
or'';
(3) in section 122 (42 U.S.C. 5321), by striking ``disaster 
under title IV of the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act'' and inserting ``major disaster''; 
and
(4) by adding at the end the following:

``SEC. 123. COMMUNITY DEVELOPMENT BLOCK GRANT DISASTER RECOVERY 
PROGRAM.

``(a) Authorization, Formula, and Allocation.--
``(1) Authorization.--The Secretary is authorized to make 
community development block grant disaster recovery grants from 
the Long-Term Disaster Recovery Fund established under section 
5 of the Reforming Disaster Recovery Act (hereinafter referred 
to as the `Fund') for necessary expenses for activities 
authorized under subsection (f)(1) 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 a catastrophic major 
disaster.
``(2) Grant awards.--Grants shall be awarded under this 
section to States, units of general local government, and 
Indian tribes based on capacity and the concentration of 
damage, as determined by the Secretary, to support the 
efficient and effective administration of funds.
``(3) Section 106 allocations.--Grants under this section 
shall not be considered relevant to the formula allocations 
made pursuant to section 106.
``(4) Federal register notice.--
``(A) In general.--Not later than 30 days after the 
date of enactment of this section, the Secretary shall 
issue a notice in the Federal Register containing the 
latest formula allocation methodologies used to 
determine the total estimate of unmet needs related to 
housing, economic revitalization, and infrastructure in 
the most impacted and distressed areas resulting from a 
catastrophic major disaster.
``(B) Public comment.--If 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 
not more than 30 percent of the total estimate 
of unmet needs.
``(5) Regulations.--
``(A) In general.--The Secretary shall, by 
regulation, establish a formula to allocate assistance 
from the Fund to the most impacted and distressed areas 
resulting from a catastrophic major disaster.
``(B) Formula requirements.--The 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 the 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 30 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 science and data.
``(C) Minimum allocation threshold.--The Secretary 
shall, by regulation, establish a minimum allocation 
threshold.
``(D) Interim allocation.--Until 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 equal to 15 percent of the total 
estimate of unmet need.
``(6) Allocation of funds.--
``(A) In general.--The 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, the Secretary shall 
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.--If amounts are 
available in the Fund at the time the Secretary 
determines that the major disaster is catastrophic and 
qualifies for assistance under the formula described in 
paragraph (4) or (5), the Secretary shall immediately 
announce an allocation for a grant under this section.
``(C) Additional amounts.--If additional amounts 
are appropriated to the Fund after amounts are 
allocated under subparagraph (B), the Secretary shall 
announce an allocation or additional allocation (if a 
prior allocation under subparagraph (B) was less than 
the formula calculation) within 15 days of any such 
appropriation.
``(7) Preliminary funding.--
``(A) In general.--To speed recovery, the Secretary 
is authorized to allocate and award preliminary grants 
from the Fund before making a determination under 
paragraph (6)(A) if the Secretary projects, based on a 
preliminary assessment of impact and distress, that a 
major disaster is catastrophic and would likely qualify 
for funding under the formula described in paragraph 
(4) or (5).
``(B) Amount.--
``(i) Maximum.--The Secretary may award 
preliminary funding under subparagraph (A) in 
an amount that is not more than $5,000,000.
``(ii) Sliding scale.--The Secretary shall, 
by regulation, establish a sliding scale for 
preliminary funding awarded under subparagraph 
(A) based on the size of the preliminary 
assessment of impact and distress.
``(C) Use of funds.--The 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 funding.--Preliminary 
funding awarded under subparagraph (A)--
``(i) is not subject to the certification 
requirements of subsection (h)(1); 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)(2).
``(E) Waiver.--To expedite the use of preliminary 
funding for activities described in this paragraph, the 
Secretary may waive or specify alternative requirements 
to the requirements of this section in accordance with 
subsection (i).
``(F) Amended award.--
``(i) In general.--An award for preliminary 
funding under subparagraph (A) may be amended 
to add any subsequent amount awarded because of 
a determination by the Secretary that a major 
disaster is catastrophic and qualifies for 
assistance under the formula.
``(ii) Applicability.--Notwithstanding 
subparagraph (D), amounts provided by an 
amendment under clause (i) are subject to the 
requirements under subsections (f)(1) and 
(h)(1) and other requirements on grant funds 
under this section.
``(G) Technical assistance.--Concurrent with the 
allocation of any preliminary funding awarded under 
this paragraph, the Secretary shall assign or provide 
technical assistance to the recipient of the grant.
``(b) Interchangeability.--
``(1) In general.--The Secretary is authorized to approve 
the use of grants under this section to be used interchangeably 
and without limitation for the same activities in the most 
impacted and distressed areas resulting from a declaration of 
another catastrophic major disaster that qualifies for 
assistance under the formula established under paragraph (4) or 
(5) of subsection (a) or a major disaster for which the 
Secretary allocated funds made available under the heading 
`Community Development Fund' in any Act prior to the 
establishment of the Fund.
``(2) Requirements.--The Secretary shall establish 
requirements to expedite the use of grants under this section 
for the purpose described in paragraph (1).
``(3) Emergency designation.--Amounts repurposed pursuant 
to this subsection that were previously designated by Congress 
as an emergency requirement pursuant to the Balanced Budget and 
Emergency Deficit Control Act of 1985 or a concurrent 
resolution on the budget are designated by Congress as an 
emergency requirement pursuant to section 4001(a)(1) of S. Con. 
Res. 14 (117th Congress) and legislation establishing fiscal 
year 2026 budget enforcement in the House of Representatives.
``(c) Grantee Plans.--
``(1) Requirement.--Not 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 
322 of the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act (42 U.S.C. 5165);
``(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 consultation.--To permit public examination 
and appraisal of the plan described in paragraph (1), to 
enhance the public accountability of grantee, 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;
``(C) consider comments received before submission 
to the Secretary;
``(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) Approval.--The 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 funds.--Not 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.--The Secretary shall, by 
regulation, establish protocols consistent with the 
findings of section 2 of the Reforming Disaster 
Recovery Act to prioritize the use of funds by a 
grantee under this section to meet the needs of low- 
and moderate-income persons and businesses serving 
primarily persons of low and moderate income.
``(5) Prioritization.--The 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, 
emphasizing those with the most severe needs;
``(B) address affordable housing, including 
affordable rental housing, needs arising from a 
disaster, or those needs present prior to a disaster;
``(C) prolong the life of housing and 
infrastructure;
``(D) use cost-effective means of preventing harm 
to people and property and incorporate protective 
features, redundancies, and energy savings; and
``(E) other measures that will assure the 
continuation of critical services during future 
disasters.
``(6) Proportional allocation.--
``(A) In general.--A grantee under this section 
shall allocate grant funds proportional to unmet needs 
between housing activities, economic revitalization, 
and infrastructure, unless the Secretary--
``(i) specifically finds that--
``(I) there is a compelling need 
for a disproportional allocation among 
those unmet needs; and
``(II) the disproportional 
allocation described in subclause (I) 
is not inconsistent with the 
requirements under paragraph (4); and
``(ii) issues a waiver and alternative 
requirement pursuant to subsection (i) to allow 
for the disproportional allocation described in 
clause (i)(I).
``(B) Housing activities.--With respect to housing 
activities described in subparagraph (A)(i), grantees 
should address proportional needs between homeowners 
and renters, including low-income households in public 
housing and federally subsidized housing.
``(7) Disaster risk mitigation.--
``(A) Definition.--In 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.--The Secretary, in 
consultation with the Administrator of the Federal 
Emergency Management Agency, shall establish minimum 
construction standards, insurance purchase 
requirements, and other requirements for the use of 
grant funds in hazard-prone areas.
``(C) Special flood hazards.--
``(i) In general.--For the areas described 
in subparagraph (A)(ii), the insurance purchase 
requirements established under subparagraph (B) 
shall meet or exceed the requirements under 
section 102(a) of the Flood Disaster Protection 
Act of 1973 (42 U.S.C. 4012a(a)).
``(ii) Treatment as financial assistance.--
All grants under this section shall be treated 
as financial assistance for purposes of section 
3(a)(3) of the Flood Disaster Protection Act of 
1973 (42 U.S.C. 4003(a)(3)).
``(D) Consideration of future risks.--The Secretary 
may consider future risks to protecting property and 
health, safety, and general welfare, and the likelihood 
of those risks, when making the determination of or 
modification to hazard-prone areas under this 
paragraph.
``(8) Relocation.--
``(A) In general.--The Uniform Relocation 
Assistance and Real Property Acquisition Policies Act 
of 1970 (42 U.S.C. 4601 et seq.) shall apply to 
activities assisted under this section to the extent 
determined by the Secretary in regulation, or as 
provided in waivers or alternative requirements 
authorized in accordance with subsection (i).
``(B) Policy.--Each 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) Certifications.--Any 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 extremely low-, low-, and moderate-income families 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);
``(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 104 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 title 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 general.--The Secretary shall, on not less 
frequently than an annual basis, 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 title 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.--The Secretary shall develop and 
make publicly available critical performance targets for 
review, which shall include spending thresholds for each year 
from the date on which funds are obligated by the Secretary to 
the grantee until such time all funds have been expended.
``(3) Failure to meet targets.--
``(A) Suspension.--If a grantee under this section 
fails to meet 1 or more critical performance targets 
under paragraph (2), the Secretary may temporarily 
suspend the grant.
``(B) Performance improvement plan.--If the 
Secretary suspends a grant under subparagraph (A), the 
Secretary shall provide to the grantee a performance 
improvement plan with the specific requirements needed 
to lift the suspension within a defined time period.
``(C) Report.--If a grantee fails to meet the 
spending thresholds established under paragraph (2), 
the grantee shall submit to the Secretary, the 
appropriate committees of Congress, and each member of 
Congress who represents a district or State of the 
grantee a written report identifying technical 
capacity, funding, or other Federal or State 
impediments affecting the ability of the grantee to 
meet the spending thresholds.
``(4) Collection of information and reporting.--
``(A) Requirement to report.--A grantee under this 
section shall provide to the Secretary such information 
as the Secretary may determine necessary for adequate 
oversight of the grant program under this section.
``(B) Public availability.--Subject to subparagraph 
(D), the Secretary shall make information submitted 
under subparagraph (A) available to the public and to 
the Inspector General for the Department of Housing and 
Urban Development, disaggregated by activity, income, 
geography, and all classes of individuals protected 
under section 109 and the Fair Housing Act.
``(C) Summary status reports.--To increase 
transparency and accountability of the grant program 
under this section the Secretary shall, on not less 
frequently than an annual basis, post on a public 
facing dashboard summary status reports for all active 
grants under this section that includes--
``(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.--In carrying out this 
paragraph, the Secretary--
``(i) shall take such actions as may be 
necessary to ensure that personally 
identifiable information regarding applicants 
for assistance provided from funds made 
available under this section is not made 
publicly available; and
``(ii) may make full and unredacted 
information available to academic institutions 
for the purpose of researching into the 
equitable distribution of recovery funds and 
adherence to civil rights protections.
``(f) Eligible Activities.--
``(1) In general.--Activities assisted under this section--
``(A) may include activities permitted under 
section 105 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.--Grant funds under this section may not 
be used for costs reimbursable by, or for which funds have been 
made available by, the Federal Emergency Management Agency, or 
the United States Army Corps of Engineers.
``(3) Administrative costs, technical assistance and 
planning.--
``(A) In general.--The Secretary shall establish in 
regulation the maximum grant amounts a grantee may use 
for administrative costs, technical assistance and 
planning activities, taking into consideration size of 
grant, complexity of recovery, and other factors as 
determined by the Secretary, but not to exceed 10 
percent for administration and 20 percent in total.
``(B) Availability.--Amounts available for 
administrative costs for a grant under this section 
shall be available for eligible administrative costs of 
the grantee for any grant made under this section, 
without regard to a particular disaster.
``(4) Program income.--Notwithstanding 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 title upon closeout of the grant.
``(5) Prohibition on use of assistance for employment 
relocation activities.--
``(A) In general.--Grants under this section may 
not be used to assist directly in the relocation of any 
industrial or commercial plant, facility, or operation, 
from one area to another area, if the relocation is 
likely to result in a significant loss of employment in 
the labor market area from which the relocation occurs.
``(B) Applicability.--The prohibition under 
subparagraph (A) shall not apply to a business that was 
operating in the disaster-declared labor market area 
before the incident date of the applicable disaster and 
has since moved, in whole or in part, from the affected 
area to another State or to a labor market area within 
the same State to continue business.
``(6) Requirements.--Grants under this section are subject 
to the requirements of this section, the other provisions of 
this title that apply to assistance under this section, and 
other applicable laws, unless modified by waivers or 
alternative requirements in accordance with subsection (i).
``(g) Environmental Review.--
``(1) Adoption.--A recipient of funds provided under this 
section that uses the funds to supplement Federal assistance 
provided under section 203, 402, 403, 404, 406, 407, 408(c)(4), 
428, or 502 of the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act (42 U.S.C. 5170a, 5170b, 5170c, 5172, 
5173, 5174(c)(4), 5189f, 5192) may adopt, without review or 
public comment, any environmental review, approval, or permit 
performed by a Federal agency, and that adoption shall satisfy 
the responsibilities of the recipient with respect to the 
environmental review, approval, or permit under section 
104(g)(1).
``(2) Approval of release of funds.--Notwithstanding 
section 104(g)(2), the Secretary or a State may, upon receipt 
of a request for release of funds and certification, 
immediately approve the release of funds for an activity or 
project to be assisted under this section if the recipient has 
adopted an environmental review, approval, or permit under 
paragraph (1) or the activity or project is categorically 
excluded from review under the National Environmental Policy 
Act of 1969 (42 U.S.C. 4321 et seq.).
``(3) Units of general local government.--The provisions of 
section 104(g)(4) shall apply to assistance under this section 
that a State distributes to a unit of general local government.
``(h) Financial Controls and Procedures.--
``(1) In general.--The 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
``(C) maintains a comprehensive and publicly 
accessible website.
``(2) Certification.--Before making a grant under this 
section, the Secretary shall certify that the grantee has in 
place proficient processes and procedures to comply with the 
requirements developed under paragraph (1), as determined by 
the Secretary.
``(3) Compliance before allocation.--The Secretary may 
permit a State, unit of general local government, or Indian 
tribe to demonstrate compliance with the requirements for 
adequate financial controls developed under paragraph (1) 
before a disaster occurs and before receiving an allocation for 
a grant under this section.
``(4) Duplication of benefits.--
``(A) In general.--Funds made available under this 
section shall be used in accordance with section 312 of 
the Robert T. Stafford Disaster Relief and Emergency 
Assistance Act (42 U.S.C. 5155), as amended by section 
1210 of the Disaster Recovery Reform Act of 2018 
(division D of Public Law 115-254), and such rules as 
may be prescribed under such section 312.
``(B) Penalties.--In 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 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.
``(C) Failure to comply.--Any grantee provided 
funds under this section or from prior Appropriations 
Acts under the heading `Community Development Fund' for 
purposes related to major disasters that fails to 
comply with section 312 of the Robert T. Stafford 
Disaster Relief and Emergency Assistance Act (42 U.S.C. 
5155) or fails to satisfy penalties to resolve a 
duplication of benefits shall be subject to remedies 
for noncompliance under section 111, unless the 
Secretary publishes a determination in the Federal 
Register that it is not in the best interest of the 
Federal Government to pursue remedial actions.
``(i) Waivers.--
``(1) In general.--In administering grants under this 
section, the Secretary may waive, or specify alternative 
requirements for, any provision of any statute or regulation 
that the Secretary administers in connection with the 
obligation by the Secretary or the use by the grantee of those 
funds (except for requirements related to fair housing, 
nondiscrimination, labor standards, the environment, and the 
requirements of this section that do not expressly authorize 
modifications by waiver or alternative requirement), if the 
Secretary makes a public finding that good cause exists for the 
waiver or alternative requirement and the waiver or alternative 
requirement would not be inconsistent with the findings in 
section 2 of the Reforming Disaster Recovery Act.
``(2) Effective date.--A waiver or alternative requirement 
described in paragraph (1) shall not take effect before the 
date that is 5 days after the date of publication of the waiver 
or alternative requirement on the website of the Department of 
Housing and Urban Development or the effective date for any 
regulation published in the Federal Register.
``(3) Public notification.--The Secretary shall notify the 
public of all waivers or alternative requirements described in 
paragraph (1) in accordance with the requirements of section 
7(q)(3) of the Department of Housing and Urban Development Act 
(42 U.S.C. 3535(q)(3)).
``(j) Unused Amounts.--
``(1) Deadline to use amounts.--A grantee under this 
section shall use an amount equal to the grant within 6 years 
beginning on the date on which the Secretary obligates the 
amounts to the grantee, as such period may be extended under 
paragraph (4).
``(2) Recapture.--The 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 funds.--Notwithstanding paragraph (1), 
the Secretary may allow a grantee under this section to 
retain--
``(A) amounts needed to close out grants; and
``(B) 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 funds.--The 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 Committees on Appropriations 
of Senate and the House of Representatives that 
specifies the period of that extension.''.

SEC. 7. REGULATIONS.

(a) Proposed Rules.--Following consultation with the Federal 
Emergency Management Agency, the Small Business Administration, and 
other Federal agencies, not later than 6 months after the date of 
enactment of this Act, the Secretary shall issue proposed rules to 
carry out this Act and the amendments made by this Act and shall 
provide a 90-day period for submission of public comments on those 
proposed rules.
(b) Final Rules.--Not later than 1 year after the date of enactment 
of this Act, the Secretary shall issue final regulations to carry out 
section 123 of the Housing and Community Development Act of 1974, as 
added by section 6.

SEC. 8. COORDINATION OF DISASTER RECOVERY ASSISTANCE, BENEFITS, AND 
DATA WITH OTHER FEDERAL AGENCIES.

(a) Coordination of Disaster Recovery Assistance.--In order to 
ensure a comprehensive approach to Federal disaster relief, long-term 
recovery, restoration of housing and infrastructure, economic 
revitalization, and mitigation in the most impacted and distressed 
areas resulting from a catastrophic major disaster, the Secretary shall 
coordinate with the Federal Emergency Management Agency, to the 
greatest extent practicable, in the implementation of assistance 
authorized under section 123 of the Housing and Community Development 
Act of 1974, as added by section 6.
(b) Data Sharing Agreements.--To support the coordination of data 
to prevent duplication of benefits with other Federal disaster recovery 
programs while also expediting recovery and reducing burden on disaster 
survivors, the Department shall establish data sharing agreements that 
safeguard privacy with relevant Federal agencies to ensure disaster 
benefits effectively and efficiently reach intended beneficiaries, 
while using effective means of preventing harm to people and property.
(c) Data Transfer From FEMA and SBA to HUD.--As permitted and 
deemed necessary for efficient program execution, and consistent with a 
computer matching agreement entered into under subsection (f)(1), the 
Administrator of the Federal Emergency Management Agency and the 
Administrator of the Small Business Administration shall provide data 
on disaster applicants to the Department, including, when necessary, 
personally identifiable information, disaster recovery needs, and 
resources determined eligible for, and amounts expended, to the 
Secretary for all major disasters declared by the President pursuant to 
section 401 of Robert T. Stafford Disaster Relief and Emergency 
Assistance Act (42 U.S.C. 5170) for the purpose of providing additional 
assistance to disaster survivors and prevent duplication of benefits.
(d) Data Transfers From HUD to HUD Grantees.--The Secretary is 
authorized to provide to grantees under section 123 of the Housing and 
Community Development Act of 1974, as added by section 6, offices of 
the Department, technical assistance providers, and lenders information 
that in the determination of the Secretary is reasonably available and 
appropriate to inform the provision of assistance after a major 
disaster, including information provided to the Secretary by the 
Administrator of the Federal Emergency Management Agency, the 
Administrator of the Small Business Administration, or other Federal 
agencies.
(e) Data Transfers From HUD Grantees to HUD, FEMA, and SBA.--
(1) Reporting.--Grantees under section 123 of the Housing 
and Community Development Act of 1974, as added by section 6, 
shall report information requested by the Secretary on 
households, businesses, and other entities assisted and the 
type of assistance provided.
(2) Sharing information.--The Secretary shall share 
information collected under paragraph (1) with the Federal 
Emergency Management Agency, the Small Business Administration, 
and other Federal agencies to support the planning and delivery 
of disaster recovery and mitigation assistance and other 
related purposes.
(f) Privacy Protection.--The Secretary may make and receive data 
transfers authorized under this section, including the use and 
retention of that data for computer matching programs, to inform the 
provision of assistance, assess disaster recovery needs, and prevent 
the duplication of benefits and other waste, fraud, and abuse, provided 
that--
(1) the Secretary enters an information sharing agreement 
or a computer matching agreement, when required by section 522a 
of title 5, United States Code (commonly known as the ``Privacy 
Act of 1974''), with the Administrator of the Federal Emergency 
Management Agency, the Administrator of the Small Business 
Administration, or other Federal agencies covering the transfer 
of data;
(2) the Secretary publishes intent to disclose data in the 
Federal Register; and
(3) notwithstanding paragraphs (1) and (2), section 552a of 
title 5, United States Code, or any other law, the Secretary is 
authorized to share data with an entity identified in 
subsection (d), and the entity is authorized to use the data as 
described in this section, if the Secretary enters a data 
sharing agreement with the entity before sharing or receiving 
any information under transfers authorized by this section, 
which data sharing agreement shall--
(A) in the determination of the Secretary, include 
measures adequate to safeguard the privacy and 
personally identifiable information of individuals; and
(B) include provisions that describe how the 
personally identifiable information of an individual 
will be adequately safeguarded and protected, which 
requires consultation with the Secretary and the head 
of each Federal agency the data of which is being 
shared subject to the agreement.
<all>