HUD Issues Regulatory Waiver Granted for Fourth Quarter of CY2014
Notice of Regulatory Waiver Requests Granted for the Fourth Quarter of Calendar Year 2014
A Notice by the
Publication Date:
Entry Type: Notice
Action: Notice.
Document Citation: 80 FR 17062
Page: 17062 -17072 (11 pages)
Document Number: 2015-07183
Shorter URL: https://federalregister.gov/a/2015-07183
Action
Notice.
Summary
Section 106 of the
FOR FURTHER INFORMATION CONTACT:
For general information about this notice, contact
For information concerning a particular waiver that was granted and for which public notice is provided in this document, contact the person whose name and address follow the description of the waiver granted in the accompanying list of waivers that have been granted in the fourth quarter of calendar year 2014.
SUPPLEMENTARY INFORMATION:
Section 106 of the HUD Reform Act added a new section 7(q) to the
1. Any waiver of a regulation must be in writing and must specify the grounds for approving the waiver;
2. Authority to approve a waiver of a regulation may be delegated by the Secretary only to an individual of Assistant Secretary or equivalent rank, and the person to whom authority to waive is delegated must also have authority to issue the particular regulation to be waived;
3. Not less than quarterly, the Secretary must notify the public of all waivers of regulations that HUD has approved, by publishing a notice in the
a. Identify the project, activity, or undertaking involved;
b. Describe the nature of the provision waived and the designation of the provision;
c. Indicate the name and title of the person who granted the waiver request;
d. Describe briefly the grounds for approval of the request; and
e. State how additional information about a particular waiver may be obtained.
Section 106 of the HUD Reform Act also contains requirements applicable to waivers of HUD handbook provisions that are not relevant to the purpose of this notice.
This notice follows procedures provided in HUD's Statement of Policy on Waiver of Regulations and Directives issued on
This notice covers waivers of regulations granted by HUD from
Where more than one regulatory provision is involved in the grant of a particular waiver request, the action is listed under the section number of the first regulatory requirement that appears in 24 CFR and that is being waived. For example, a waiver of both section 58.73 and section 58.74 would appear sequentially in the listing under section 58.73.
Waiver of regulations that involve the same initial regulatory citation are in time sequence beginning with the earliest-dated regulatory waiver.
Should HUD receive additional information about waivers granted during the period covered by this report (the fourth quarter of calendar year 2014) before the next report is published (the first quarter of calendar year 2015), HUD will include any additional waivers granted for the fourth quarter in the next report.
Accordingly, information about approved waiver requests pertaining to HUD regulations is provided in the Appendix that follows this notice.
Dated:
Principal Deputy General Counsel.
APPENDIX
Listing of Waivers of Regulatory Requirements Granted by Offices of the
Note to Reader:
More information about the granting of these waivers, including a copy of the waiver request and approval, may be obtained by contacting the person whose name is listed as the contact person directly after each set of regulatory waivers granted.
The regulatory waivers granted appear in the following order:
I. Regulatory waivers granted by the
II. Regulatory waivers granted by the
III. Regulatory waivers granted by the
I. Regulatory Waivers Granted by the
Regulation: 24 CFR 58.22(a).
Project/Activity:
Nature of Requirement: The regulation at 24 CFR 58.22(a) provides that no entity may commit HUD assistance under a program listed in section 58.1(b) on any activity or project until HUD or the state has approved the recipient's RROF. In addition, until the RROF has been approved, no entity may commit non-HUD funds on an activity listed in section 58.1(b) if the activity would have an adverse environmental impact. Since the commitment of non-HUD funds violates only the regulation and not the statute, HUD may, if there is good cause, grant a waiver of the affected regulation. A waiver is required because the
Granted By:
Date Granted:
Reason Waived: It was determined that the project would further the HUD mission and advance HUD program goals to develop viable, quality communities. It was further determined that the
Contact:
Regulations: 24 CFR 92.251(c) and 24 CFR 92.504(d).
Project/Activity: HUD, along with the
Nature of Requirements: The regulation at 24 CFR 92.251(c) identifies the property standards for property acquired with HOME assistance. The regulation at 24 CFR 92.504(d) requires the participating jurisdiction to inspect each project at project completion and during the period of affordability to determine that the project meets the property standards of 24 CFR 92.251.
Granted By:
Date Granted:
Reasons Waived: The waiver was granted to reduce duplicative inspection for grantees participating in the Physical Inspection Alignment Pilot Program. HUD estimates that one periodically-scheduled physical inspection may result in 20,000 fewer property inspections per year by federal agencies, which will reduce the cost of program oversight and create efficiencies for the government, property owners, and for residents of affordable housing whose apartments are subject to inspection. The waiver was effective until
Contact:
Regulation: 24 CFR 570.200(h).
Project/Activity: On
Nature of Requirement: The Entitlement CDBG program regulations provide for situations in which a grantee may incur costs against its CDBG grant prior to the award of its grant from HUD. Under the regulations, the effective date of a grantee's grant agreement is either the grantee's program year start date or the date that the grantee's annual action plan is received by HUD, whichever is later. This waiver allowed grantees to treat the effective date of the FY 2015 program year as the grantee's program year start date or date or the date that the grantee's annual action plan is received by HUD, whichever is earlier.
Granted By:
Date Granted:
Reason Waived: Under the provisions of the CPD Notice, a grantee's action plan may not be submitted to (and thus received by) HUD until several months after the grantee's program year start date. Lengthy delays in the receipt of annual appropriations by HUD, and implementation of the policy to delay submission of FY 2015 Action Plans, may have negative consequences for CDBG grantees that intend to incur eligible costs prior to the award of FY 2015 funding. Some activities might otherwise be interrupted while implementing these revised procedures. In addition, grantees might not otherwise be able to use CDBG funds for planning and administrative costs of administering their programs. In order to address communities' needs and to ensure that programs can continue without disturbance, this waiver allowed grantees to incur pre-award costs on a timetable comparable to that under which grantees have operated in past years. HUD advised grantees that this waiver is available for use by any applicable CDBG grantee whose action plan submission is delayed past the normal submission date because of delayed enactment of FY 2015 appropriations for the Department. This waiver authority is only in effect until
Contact:
Regulation: 24 CFR 570.208(a)(l)(vi).
Project/Activity:
Nature of Requirement: HUD's regulation at 24 CFR 570.208(a)(l)(vi) requires that the most recently available decennial census information must be used to the fullest extent feasible, together with the section 8 income limits that would have applied at the time the income information was collected by the
Granted By:
Date Granted:
Reason Waived: The
Contact:
Regulation: 24 CFR 570.208(a)(l)(vi).
Project/Activity:
Nature of Requirement: HUD's regulation at 24 CFR 570.208(a)(l)(vi) requires that the most recently available decennial census information must be used to the fullest extent feasible, together with the section 8 income limits that would have applied at the time the income information was collected by the
Granted By:
Date Granted:
Reason Waived: The request pertained to two infrastructure activities, which had been in the planning stage for many months, and were included in the county's FY 2014 Annual Action Plan. However, funds were not obligated by the county to these activities prior to
Contact:
Regulation: 24 CFR part 576.403(c).
Project/Activity:
Nature of Requirement: The regulation at section 576.403(c) states that the recipient or subrecipient cannot use ESG funds to help a program participant remain in or move into housing that does not meet the ESG minimum habitability standards for permanent housing.
Granted By:
Date Granted:
Reason Waived: HUD recognized that in certain instances, the best way to help program participants avoid homelessness is to keep them in their housing until better housing can be located, or their existing housing can be brought up to code. Legal services provide an important resource for persons who are at risk of homelessness, who need immediate assistance to help them avoid moving to the streets or emergency shelters. In some instances, it is not feasible to inspect a unit to ensure that it meets the habitability standards prior to the provision of the legal services assistance necessary to prevent homelessness for the individual or family. Also in some cases, the habitability requirement actually prohibits eligible program participants from receiving the legal services that could assist them to make the unit habitable and stabilize them in their housing.
Contact:
II. Regulatory Waivers Granted by the Office of Housing--
For further information about the following regulatory waivers, please see the name of the contact person that immediately follows the description of the waiver granted.
Regulation: 24 CFR 219.220(b).
Project/Activity: St. James A.M.
Nature of Requirement: Section 219.220(b)(1995) governs the repayment of operating assistance provided under the
Granted by:
Date Granted:
Reason Waived: The owner requested and was granted waiver of the requirement to defer repayment of the Flexible Subsidy Operating Assistance Loan to allow the much needed preservation and moderate rehabilitation of the project. The project will be preserved as an affordable housing resource of
Contact:
Regulation: 24 CFR 219.220(b).
Project/Activity: CWA Apartments II FHA Number TN43L000016 is a project based Section 8 Loan Management Set-Aside (LMSA) contract encumbering a76-units for low- income families located in
Nature of Requirement: Section 219.220(b) governs the repayment of operating assistance provided under the
Granted by:
Date Granted:
Reason Waived: The owner requested and was granted waiver because good cause was shown that it is in the public's best interest to grant this waiver. The owner executed and recorded a Rental Use Agreement that extended the affordability of the property for 20 years and amended the Residual Receipts Note to reflect the monthly payments. These documents were simultaneously assumed by the purchaser.
Contact:
Regulation: 24 CFR 219.220(b).
Project/Activity: CWA Apartments I Contract number TN43-L000-015 apartments CWA Apartments I is a 176-unit multifamily project which consists of 20 two-bedroom units and 156 three-bedroom units. The property was financed with a mortgage insured pursuant to Section 221(d)(3) of the National Housing Act, which has now matured and is paid in full. The Loan Management Set-Aside (LMSA) Housing Assistance Payments (HAP) contract covers all 176 units. The HAP contact expires on
Nature of Requirement: The regulation at 24 CFR 219.220(b)(1995), which governs the repayment of operating assistance provided under the
Granted by:
Date Granted:
Reason Waived: The owner requested and was granted waiver because good cause was shown that it is in the public's best interest to grant this waiver. The owner executed and recorded a Rental Use Agreement that extended the affordability of the property for 20 years and amended the Residual Receipts Note to reflect the monthly payments. These documents were simultaneously assumed by the purchaser.
Contact:
Regulation: 24 CFR 219.220(b).
Project/Activity: Cathedral Terrace Apartments FHA number 063-44007 is a 240-unit high-rise project for low- income and very low-income tenants. The mortgage was insured pursuant to Section 236(j)(1) of the National Housing Act and received its final endorsement on
Nature of Requirement: The regulation at 24 CFR 219.220(b) (1995), which governs the repayment of operating assistance provided under the
Granted by:
Date Granted:
Reason Waived: The owner requested and was granted waiver to permit the deferment of repayment of the Flexible Subsidy Loans, plus accrued interest for a period of one year. The requested waiver was for the subject property only. The owner executed and recorded a Rental Use Agreement that would be superior to all liens. The Rental Use Agreement extended the project affordability 20 years from the date of the original mortgage maturity.
Contact:
Regulation: 24 CFR 232.7.
Project/Activity: Maple Ride of Plover Memory care is a 20 bed memory care facility. The facility does not meet the FHA "Bathroom "requirements at 24 CFR 232.7. The project is located in
Nature of Requirement: The regulation mandates in a board and care home or assisted living facility that not less than one full bathroom must be provided for every four residents. Also, the bathroom cannot be accessed from a public corridor or area.
Granted By:
Date Granted:
Reason Waived: The project is for memory care, all rooms have half-bathrooms and the resident to full bathroom ratio is 5:1.
Contact:
Regulation: 24 CFR 232.7.
Project/Activity: Senior Suites of
Nature of Requirement: The regulation mandates that in a board and care home or assisted living facility that the not less than one full bathroom must be provided for every four residents. Also, the bathroom cannot be accessed from a public corridor or area.
Granted By:
Date Granted:
Reason Waived: The project is currently FHA insured and presents no additional financial risks to HUD.
Contact:
Regulation: 24 CFR 232.505(a), 232.520, 232.540(b), 232.605 and 232.620.
Project/Activity: Supplemental Loans to Finance Purchase and Installation of Fire Safety Equipment.
Nature of Requirement: Waiver of provisions 232.505(a), 232.520, 232.540(b), 232.605 and 232.620 that do not reflect current processing requirements, as these regulatory procedures and protocols were established in 1974.
Granted By:
Date Granted:
Reason Waived: There is an urgent need to install automatic fire sprinkler systems in nursing homes due to a new federal mandate.
Contact:
Regulation: 24 CFR 891.100(d).
Project/Activity:
Nature of Requirement: Section 891.100(d) prohibits amendment of the amount of the approved capital advance funds prior to closing.
Granted by:
Date Granted:
Reason Waived: The project is economically designed and comparable in cost to similar projects in the area, and the sponsor/owner exhausted all efforts to obtain additional funding from other sources.
Contact:
Regulation: 24 CFR 891.100(d).
Project/Activity:
Nature of Requirement: Section 891.100(d) prohibits amendment of the amount of the approved capital advance funds prior to closing.
Granted by:
Date Granted:
Reason Waived: The project is economically designed and comparable in cost to similar projects in the area, and the sponsor/owner exhausted all efforts to obtain additional funding from other sources.
Contact:
Regulation: 24 CFR 891.100(d).
Project/Activity: Our Lady of Assumption Apts.,
Nature of Requirement: Section 891.100(d) prohibits amendment of the amount of the approved capital advance funds prior to closing.
Granted by:
Date Granted:
Reason Waived: The project is economically designed and comparable in cost to similar projects in the area, and the sponsor/owner exhausted all efforts to obtain additional funding from other sources.
Contact:
Regulation: 24 CFR 891.165.
Project/Activity:
Nature of Requirement: Section 891.165 provides that the duration of the fund reservation of the capital advance is 18 months from the date of issuance with limited exceptions up to 36 months, as approved by HUD on a case-by-case basis.
Granted by:
Date Granted:
Reason Waived: Additional time was needed in order to meet the construction lender's loan requirement for this capital advance upon completion mixed-finance project.
Contact:
Regulation: Requirements of Mortgagee Letter 2011-22, Condominium Project Approval and Processing Guide, Insurance Requirements.
Project/Activity: Extension of initial waiver issued
Nature of Requirement: Section 2.1.9 of the Condominium Project Approval and Processing Guide, Insurance Requirements, defines the condominium project insurance requirements that must be met for issuance of FHA condominium project approval. The extension of the initial waiver allows for acceptance of individual insurance policies issued to the unit owners for
Granted by: <person>Biniam Gebre, Acting Assistant Secretary for Housing-Federal Housing Commissioner.
Date Granted:
Reason Waived: The extension of the waiver previously issued that allows unit owners to obtain and maintain their own insurance coverage is required to ensure the continued availability of a condominium unit as an affordable housing option. Issuance of the extension is consistent with the Department's objectives to expand the availability of FHA mortgage insurance, while providing appropriate safeguards.
Contact:
III. Regulatory Waivers Granted by the
For further information about the following regulatory waivers, please see the name of the contact person that immediately follows the description of the waiver granted.
Regulation: 24 CFR 5.801(d)(1).
Project/Activity:
Nature of Requirement: The regulation establishes certain reporting compliance dates. The audited financial statements are required to be submitted to the Real Estate Assessment Center (REAC) no later than nine months after the housing authority's (HA) fiscal year end (FYE), in accordance with the Single Audit Act and OMB Circular A-133.
Granted By:
Date Granted:
Reason Waived: The final approval of the annual audit was postponed due to three weather related cancellations of meetings of the
Contact:
Regulation: 24 CFR 5.801(d)(1).
Project/Activity: The Municipality of Fajardo (RQ036) Fajardo, PR
Nature of Requirement: The regulation establishes certain reporting compliance dates. The audited financial statements are required to be submitted to the Real Estate Assessment Center (REAC) no later than nine months after the housing authority's (HA) fiscal year end (FYE), in accordance with the Single Audit Act and OMB Circular A-133.
Granted By:
Date Granted:
Reason Waived: The audited reporting requirements were delayed due to the unforeseen death of your predecessor auditor. The additional time was needed to enable the successor auditor to review and process for final approval. Due to the Departments' delayed response and the fact that the audited financial report was approved on
Contact:
Regulation: 24 CFR 5.801(d)(1).
Project/Activity:
Nature of Requirement: The regulation establishes certain reporting compliance dates. The audited financial statements are required to be submitted to the Real Estate Assessment Center (REAC) no later than nine months after the housing authority's (HA) fiscal year end (FYE), in accordance with the Single Audit Act and OMB Circular A-133.
Granted By:
Date Granted:
Reason Waived: The delayed submission was a result of the process to implement a new ERP Integrated Information System during 2013. The agency is component unit and must wait until the city-wide audit was complete before processing the audited financial data. The agency incurred a turnover in staff prior to closing your 2013 books and that additional time was needed for IPA review and final submission. Due to the Department's delayed response and the fact that your audited financial report was approved on
Contact:
Regulation: 24 CFR 5.801(d)(1).
Project/Activity:
Nature of Requirement: The regulation establishes certain reporting compliance dates. The audited financial statements are required to be submitted to the Real Estate Assessment Center (REAC) no later than nine months after the housing authority's (HA) fiscal year end (FYE), in accordance with the Single Audit Act and OMB Circular A-133.
Granted By:
Date Granted:
Reason Waived: The delayed submission was a result of the
Contact:
Regulation: 24 CFR 5.801(d)(1).
Project/Activity:
Nature of Requirement: The regulation establishes certain reporting compliance dates. The audited financial statements are required to be submitted to the Real Estate Assessment Center (REAC) no later than nine months after the housing authority's (HA) fiscal year end (FYE), in accordance with the Single Audit Act and OMB Circular A-133.
Granted By:
Date Granted:
Reason Waived: The delayed submission was due to issues between the independent auditor and the
Contact:
Regulation: Notices PIH 2013-3 and PIH 20013-26:
Project/Activity: PIH Notice 2013-3 was issued to establish temporary guidelines for public housing agencies (PHAs) in fulfilling certain public housing and housing choice voucher requirements during the current and upcoming fiscal year to alleviate some of the burden on already stressed PHA resources. The reduction of burden provided in this notice involved offering PHAs the option to comply with certain alternative requirements to existing regulations, and if they opted to do so the existing regulation would be waived. Issuance of this notice was reported in HUD's Quarterly Regulatory Waiver report published in the
[FR Doc. 2015-07183 Filed 3-30-15;
BILLING CODE 4210-67-P
[*Federal RegisterBF 2015-03-31]
Document incomplete, for more information click this link: https://www.federalregister.gov/articles/2015/03/31/2015-07183/notice-of-regulatory-waiver-requests-granted-for-the-fourth-quarter-of-calendar-year-2014
22BalteroF 150331-1198268
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