US. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
asses Fon ‘NOY 10 2008
“The Honorable Rick Perry
Governor of Tex
P.O. Box 12028
Austin, TX. 787H-2128
Dear Governor Per:
| regret to inform you that the Departmint isnot accepting the State of Texas's Amendment
1 1o ts Acton Plan for more than $1.7 billion of Community Development Block Grant (CDBG)
Disaster Recovery stpplemental funding, as ukmitted on September 30,2009, The proposed
Ameodmeat 1,38 submited, i substantially inomplete ast does not comply with applicable ation
plan and citizen parspation requirements.
Amenulment | provides the State's alleation methodology of CDBG disaster recovery
fands to Councils of Governments (COGs), butdoes not include a method of distribution to units of|
general local government. In addition, while itis clear thatthe State has undertaken citizen
participation inthe development of is amendment, the State has not provided citizens with public
hotie and the opportunity to comment on the COGS methods of distribution to units of general
local government, Tre Federal Register noticesannouncing the first two allocations of disaster
recovery funds require a state to submit an Acton Plan or Amended Action Plan that includes
“desriptions ofthe ricthod of allocating funds i nits of local goverment and provide for
reasonable public notice, appraisal, examinaticoand comment on the activities proposed forthe we
of the CDBG disaster recovery grant funds. 74Fed. Reg. 7244, 7250 and 74 Fed. Reg. 41146,
4151
Upon review of Texas's Action Plan silmited in March, the Department determined that
the Plan did not incline a description ofthe med of allocating funds to units of general local
wvemment, as required by the Federal Registernotice, Accordingly, the State did not meet the
zen participation requirement as citizens didnt receive adequate information on the proposed
use of the funds or how they could benefit fromihe proposed activities. Due to Texas's need for
immediate assistance, however, HUD approvedihe Action Plan, in part. The Department