Agenda - Council Work Session - 03/08/2022

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Federal Register/Vol. 87, No. 18/Thursday, January 27, 2022/Rules and Regulations 4347 used in programs such as the families living in QCTs or receiving governments were presumed to be Community Development Block Grant services from Tribal governments were disproportionately impacted,Treasury (CDBG)Program. disproportionately impacted by the emphasizes that under the interim final In defining moderate income,the final pandemic.While many commenters rule recipients could also identify other rule uses both the FPG and AMI to supported the interim final rule's households,populations, or geographic account for national trends and regional recognition of disproportionate impacts areas that were disproportionately differences.While there are different of the pandemic on low-income impacted by the pandemic and provide definitions of moderate income, 300 communities,many commenters services to respond. percent of FPG falls within the range disagreed with treating QCTs as the only The final rule maintains the commonly used by researchers.29 presumed eligible group of presumptions identified in the interim Analysis of median wages among a disproportionately impacted final rule,as well as recipients' ability sample of occupations likely impacted households,apart from households to identify other impacted or by the pandemic also suggests that an served by Tribal governments. While disproportionately impacted classes. income cutoff of 300 percent of FPG acknowledging a potential increase in The final rule also allows recipients to would include many households with administrative burden, commenters presume that low-income households workers in such occupations.30 recommended that Treasury presume were disproportionately impacted, and Moreover,the metric of 300 percent of other households or geographic areas,in as discussed above, defines low-and FPG covers households that,while addition to QCTs,were moderate-income. Finally,under the above the poverty line,often lack disproportionately impacted; final rule recipients may also presume economic security.31 Treasury suggestions included all low-and that households residing in the U.S. determined the AMI threshold for moderate-income households, territories or receiving services from moderate income by maintaining the geographic areas designated as territorial governments were same ratio of FPG multiplier to AMI Opportunity Zones,Difficult disproportionately impacted. multiplier as in the definition of low Development Areas (DDAs), areas with Households presumed to be impacted: income. This anchors the threshold to a certain amount of Real Estate Impacted households are those that the existing definitions of moderate Advantage Program(REAP)recipients, experienced a public health or negative income from the literature while taking or use of eligibility criteria from the economic impact from the pandemic. into account geographical variation in Community Reinvestment Act. One With regard to public health impacts, income and expenses in the same commenter generally recommended that recipients may presume that the general manner as the definition of low income. a clearer definition of public experienced public health "disproportionately impacted" should impacts from the pandemic for the Eligibility Presumptions be provided and that any definition purposes of providing services for Public Comment:Many commenters should include communities of color COVID-19 mitigation and behavioral believed that a broader range of groups and people of limited means. Another health. In other words,recipients may should be considered presumptively recommended specific eligibility for provide a wide range of enumerated impacted and disproportionately people that had recently interacted with eligible uses in these categories to the impacted,arguing that many the criminal justice system.Many general public without further analysis. representing Tribal commenters re households had been affected by the p g a As discussed in the introduction, pandemic and that broader presumed governments and groups recommended COVID-19 as a disease has directly eligibility would help recipients provide a presumption of eligibility for all Tribal affected the health of tens of millions of assistance quickly and effectively. uses of funds,clarification that off Americans,and efforts to prevent and reservation members remained eligible, mitigate the spread of the disease are Treasury also received many g comments on the presumption that and broad flexibility on use of funds. needed and in use across the country. Additionally,commenters noted that Further,the stress of the pandemic and 29 For instance,Melissa Kearney et al.(2013)cap some areas are technically eligible to be resulting recession have affected nearly the"struggling lower middle-income class"at 250 QCTs but fall short because of the all Americans. Accordingly,the final percent of the federal poverty level,while Isabel aggregate population of eligible tracts. rule presumes that the general public Sawhill and Edward Rodrigue(2015)define the One commenter noted that these areas are impacted by and eligible for services "middle class"as those with incomes of at least 300 should be considered the same as QCTs to respond to COVID-19 mitigation and percent of the poverty line.Melissa Kearney et al., "A Dozen Facts about America's Struggling Lower- for the purpose of SLFRF funds. Some prevention needs, as well as behavioral Middle Class,"The Hamilton Project(December commenters argued that rural counties health needs. 2013),https://www.hamiltonproject.org/assets/ typically have few QCTs despite high With regard to negative economic legacy/files/downloads_and_links/THP 12Low levels of poverty and disruption caused impacts, as with the interim final rule, IncomeFacts_Final.pdf;Isabel Sawhill and Edward Rodrigue,"An Agenda for Reducing Poverty and by the COVID-19 pandemic. Other rural under the final rule recipients may Improving Opportunity,"Brookings Institution, commenters recommended that the presume that a household or population https://www.brookings.edu/wp-content/uploads/ designation be by county rather than at that experienced unemployment, 2016/07/Sawhill_FINAL.pdf. a more granular level,arguing that the experienced increased food or housing 30 Data on median annual wages from:U.S. insecurity, or is low-or moderate- Bureau of Labor and Statistics,Occupational QCT designation is biased towards y, Employment and Wage Statistics,available at urban areas and understates the harm income experienced negative economic https://www.bls.govloes/currentloes_nat.htm(last done to rural America. Many impacts resulting from the pandemic. visited December 7,2021). commenters representing Tribal The final rule's definition of low-and 31 For instance,households earning between 200 governments supported the moderate-income,by providing and 300 percent of the FPG have significantly standard metrics based on widely higher rates of food and housing insecurity than presumption that services provided by y those earning above 300 percent of the FPG.Table Tribal governments respond to available data,is intended to simplify 1,Kyle J.Caswell and Stephen Zuckerman,Food disproportionate impacts. administration for recipients. Insecurity,Housing Hardship,and Medical Care Households presumed to be Utilization,Urban Institute(June 2018),https:// Treasury Response disproportionately impacted: www.urban.org/sites/default/files/publication/ 98701/2001896 foodinsecurity_housinghardship_ Summary:While households residing Disproportionately impacted medicalcareutilization finalized.pdf. in QCTs or served by Tribal households are those that experienced a