An activity is generally considered ineligible if it meets any one of the following criteria:
Is not located in a Presidentially-declared area;
Does not respond to a disaster-related impact;
Is explicitly prohibited by the appropriation law;
Is ineligible under the applicable CDBG regulations (and a waiver has not been granted);
Fails to meet a national objective; or
Purchasing equipment is typically ineligible. Some equipment may eligible, for example: fire protection equipment considered to be an integral part of a public facility, equipment that constitutes all or part of a public service, or equipment that is attached to a structure and becomes an integral fixture.
Additionally, CDBG-DR prohibits:
Providing compensation to beneficiaries for losses or other disaster related impacts,
Repaying the balance of a mortgage loan prior to using assistance to rehabilitate or reconstruct their home,
Rehabilitating second homes, and
Assisting privately-owned utilities.
Test your understanding and retention of the key concepts covered in Section 2: Eligible Activities by taking this quiz.
Correct. Eligible Activities generally fall into these categories.
Incorrect. Eligible Activities generally fall into three categories: Housing, Restoration of Infrastructure, and Economic Revitalization
Incorrect. There is not an Action Plan Standard for the construction of new housing construction. However, grantees must describe the connection between unmet needs and how the allocation of CDBG–DR funds for new construction will meet those needs in the action plan.
Correct. All new construction of residential buildings must meet the Green and Resilient Building Standard to improve long-term community resilience and protect communities from future disasters.
Incorrect. A grantee must address in its action plan how funds for housing activities will incorporate hazard mitigation measures into its recovery efforts. However, this is not a specific standard.
Incorrect. Affordability periods apply to the new construction of affordable rental housing when there are five or more units, or if the grantee constructs new homes for LMI households for homeownership that will be owned and occupied by LMI homeowners upon completion. Grantees are also reminded that a grantee must define ‘‘affordable rents’’ in its action plan and that the applicable affordability standards must be enforceable and imposed by recorded deed restrictions, covenants, or other similar mechanisms. The affordability requirements do not apply to housing units (newly constructed or reconstructed) for an owner-occupant when the grantee is replacing the owner-occupant’s home that was damaged by the disaster.
Partially correct. If new construction of homes includes affordability requirements, this should not be the only requirement established in a grantee’s initial action plan.
Partially correct. Grantees should establish resale or recapture requirements and describe those requirements in their initial action plan, but more information is required.
Incorrect. Grantees are not required to define Critical Actions in the action plan. HUD defines a critical action in the Consolidated Notice as “any activity for which even a slight chance of flooding would be too great, because such flooding might result in loss of life, injury to persons or damage to property”. Additionally, the notice establishes specific Elevation Standards for new construction of homes and their chance for flooding.
Correct. If new construction of homes includes affordability requirements, the initial action plan should also describe the resale or recapture requirements.
Incorrect. Grantees must sufficiently document the disaster-related impacts and clearly show how the activity addresses the disaster impact (e.g., data about job loss or businesses closing after the disaster, how pre-disaster economic stressors were aggravated by the disaster).
Incorrect. While grantees can choose to offer a reimbursement program, grantees must sufficiently document the disaster-related impacts and clearly show how the activity addresses the disaster impact (e.g., data about job loss or businesses closing after the disaster, how pre-disaster economic stressors were aggravated by the disaster).
Incorrect. Grantees must sufficiently document the disaster-related impacts and clearly show how the activity addresses the disaster impact (e.g., data about job loss or businesses closing after the disaster, how pre-disaster economic stressors were aggravated by the disaster).
Correct. Grantees must sufficiently document the disaster-related impacts and clearly show how the activity addresses the disaster impact (e.g., data about job loss or businesses closing after the disaster, how pre-disaster economic stressors were aggravated by the disaster).
Partially correct. Though this is true, this is not the only distinction.
Partially correct. Though this is true, this is not the only distinction.
Partially correct. Though this is true, this is not the only distinction.
This is the best answer. All three choices are key distinctions between a buyout and an acquisition.
Incorrect. Buyout activities are acquisitions for the purpose of reducing risk of property damage from future hazards. To designate a Disaster Risk Reduction Area for a buyout, grantees must establish criteria for considering evidence that demonstrates the hazard is a predictable environmental threat to the safety and well-being of beneficiaries, including members of protected classes, vulnerable populations, and underserved communities. Impacts specific to targeted Section 3 workers do not have to be considered.
Correct. When designing and implementing a buyout activity, grantees do not have to consider how buyout activities specifically affect targeted Section 3 workers. To designate a Disaster Risk Reduction Area for a buyout, grantees must establish criteria for considering evidence that demonstrates the hazard is a predictable environmental threat to the safety and well-being of beneficiaries, including members of protected classes, vulnerable populations, and underserved communities.
A Guide on How CDBG-DR Grantees Can Meet the Requirements of the Consolidated Notice