04 NCAC 19 agency communication

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Travis Wiggs, Rules Review Commission Counsel,
Office of Administrative Hearings
[email protected]

RE: Readoption Schedule for the North Carolina Department of Commerce’s CDBG Rules

November 12, 2025

The Community Development Block Grant (CDBG) division is housed within the Rural and Economic Development Division (REDD) of the Department of Commerce (DOC). CDBG’s rules are found in 04 NCAC 19L. On June 26, 2025, the Rules Review Commission (RRC) voted to adopt DOC’s Periodic Review Report for the CDBG rules, and on September 11, 2025, DOC received communication from RRC Counsel that the Periodic Review Report had been finalized and that the process for readopting those CDBG rules deemed “necessary” was to begin. Pursuant to N.C.G.S. § 150B-21.3A and 26 NCAC 05 .0212, DOC requests a deadline of April 1, 2028, to complete the readoption process for CDBG rules in accordance with the timeline listed below and offers the following rulemaking priorities for RRC’s approval.

Please note that the proposed timeline ends prior to the requested final deadline of April 1, 2028. This contemplates the occurrence of any unexpected delays in the readoption process.

Rulemaking Priorities

The current CDBG rules follow and expand on federal guidance but contain outdated references in various sections. As such, the focus of DOC’s readoption efforts will be on modernizing provisions and ensuring that all rules accurately reflect federal regulations and programmatic practices.

• Address technical corrections (e.g., update division names that have changed since the previous rules adoption period)
• Align administrative and Cost Principles with 2 CFR Part 200 (e.g., remove references to OMB Circulars and replace with current Uniform Guidance)
• Codify the 70% LMI Benefit Requirement
• Clarify Environmental Review Authority

Thank you for your consideration of DOC’s proposed timeline and rulemaking priorities for the CDBG rules (04 NCAC 19L). Please do not hesitate to contact me with any questions you may have.

Sincerely,

Reginald Speight
Assistant Secretary for Rural

Burgos, Alexander N

Thank you very much for your response and assistance Mr. Wiggs!

Reginald

Reginald Speight
Assistant Secretary
Rural Economic Development Division
N. C. Department of Commerce
252-290-9992 Cell
301 North Wilmington Street
4301 Mail Service Center
Raleigh, NC 27699-4301

Thank you, Mr. Speight,

I’m satisfied with the proposed readoption timeline submitted by your agency. The RRC will plan to vote on the agreed readoption deadline of April 1, 2028 at its next meeting on November 20, 2025 at 10am.

Please let me know if you have any questions.

Thanks,

Travis C. Wiggs
Rules Review Commission Counsel
Office of Administrative Hearings

Telephone: 984-236-1929
Email: [email protected]

From: Speight, Reginald L <[email protected]>
Sent: Wednesday, November 12, 2025 3:11 PM
To: Wiggs, Travis C <[email protected]>
Cc: Buskirk, Harper S <[email protected]>; Claxton, Lorenzo S <[email protected]>
Subject: CDBG Readoption of Rules Submission

Good afternoon to you Mr. Wiggs.

Please find the N. C. Commerce Rural Economic Development Division’s Readoption of Rules signed document for your review and record.

Please advise if additional information is required and/or if there are any questions regarding this submission.

Respectfully submitted,

Reginald Speight
Assistant Secretary
Rural Economic Development Division

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