Notice of Regulatory Waiver Requests Granted for the First Quarter of Calendar Year 2015
Notice.
Citation: "80 FR 35660"
Document Number: "Docket No. FR-5871-N-01"
Page Number: "35660"
"Notices"
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 first quarter of calendar year 2015.
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 first 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
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 first quarter of calendar year 2015) before the next report is published (the second quarter of calendar year 2015), HUD will include any additional waivers granted for the first 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
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 58.22(a).
Project/Activity: The
Nature of Requirement: The second sentence of HUD's regulation at
Granted By:
Date Granted:
Reason Waived: The above project will further the HUD mission and will advance HUD program goals to develop viable, quality communities--specifically, by constructing a much needed landfill and closing the existing, uncontrolled open dumpsite; the
Contact:
* Regulation: 24 CFR 84.22(g), 85.21, and Appendix I, section N.2 of the Neighborhood Stabilization Program 2 (NSP2) Notice of funding Availability (NOFA).
Project/Activity: HUD regulations at 24 CFR 84.22(g), 24 CFR 85.21, and
Nature of Requirement: The regulations at 24 CFR 84.22(g) and 24 CFR 85.21 state that recipients shall disburse funds available from repayments to and interest earned on a revolving fund, program income, rebates, refunds, contract settlements, audit recoveries and interest earned on such funds before requesting additional cash payments.
Granted By:
Date Granted:
Reason Waived: Compliance with these program requirements has hindered NSP2 grantees' ability to rapidly expend their line of credit funds as many have successfully generated substantial amounts of program income. Unlike the line of credit funds, program income is not subject to the
Contact:
* Regulation: 24 CFR 92.500(d)(1)(C) .
Project/Activity:
Nature of Requirement: The regulation at 24 CFR 92.500(d)(1)(C) requires that a participating jurisdiction expend its annual allocation of HOME funds within five years after HUD notifies the participating jurisdiction that HUD has executed the jurisdiction's HOME Investment Partnership Agreement. The regulation at 24 CFR 92.500(d)(1)(C) requires HUD to reduce or recapture any HOME funds in a participating jurisdiction's
Granted By:
Date Granted:
Reason Waived: HUD instructed the County to cease HOME disbursements pending the resolution of HUD monitoring findings and the County could not disburse funds to the project for a two year period. The waiver was granted because deobligation of
Contact:
* Regulation: 24 CFR 570.208(a)(l)(ii) and CPD Notice 14-11.
Project/Activity: The
Nature of Requirement: HUD's regulations at 24 CFR 570.208(a)(1)(ii) allow metropolitan cities and urban counties to qualify an activity under
Granted By:
Date Granted:
Reason Waived: The city has documented that the majority of census tract 18.02, as well as all of its population and households, is physically located within the city of
Contact:
* Regulation: 24 CFR 570.208(a)(l)(vi) and CPD Notice 14-11.
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 an infrastructure activity in the City of Monroe, which had been in the planning stage for many months, and was included in the county's Fiscal Year (FY) 2014 Annual Action Plan. The county had dedicated significant time and effort to designing this activity and ensuring that this activity met all applicable programmatic requirements. However, funds could not be obligated by the county to this activity prior to
Contact:
* Regulation: Neighborhood Stabilization Program 3 (NSP 3) Notice published on
Project/Activity:
Nature of Requirement: Section II.H.3.F of the NSP3 Notice provides that a grantee may not use more than ten percent of its grant for demolition activities.
Granted By:
Date Granted:
Reason Waived:
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) (1995).
Project/Activity:
Nature of Requirement: HUD's 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 regulation was waived to permit the deferment of the repayment of the Flexible Subsidy Loan, plus accrued interest.
Contact:
* Regulation: 24 CFR 219.220(b) (1995).
Project/Activity:
Nature of Requirement: HUD's regulation at 24 CFR 219.220(b) (1995), which governs the repayment of operating assistance provided under the
Granted by:
Date Granted: February, 2015.
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.
Contact:
* Regulation: 24 CFR 266.200(b).
Project/Activity:
Nature of Requirement: HUD's regulation at 24 CFR 266.200(b) Substantial Rehabilitation Defined. The following changes apply to both Level I and II Housing Finance Agencies Definition of Substantial Rehabilitation (S/R) revised as: Work that exceeds either: (a)
Granted By:
Date Granted:
Reason Waived: The waiver was necessary to effectuate the
Contact:
* Regulation: 24 CFR 266.200(c).
Project/Activity:
Nature of Requirement: HUD's regulation at 24 CFR 266.200(c) addresses equity take-outs for existing projects (refinance transactions), and permits the insured mortgage to exceed the sum of the total cost of acquisition, cost of financing, cost of repairs, and reasonable transaction costs or "equity take-outs" in refinances of HFA-financed projects and those outside of HFA's portfolio if the result is preservation with the following conditions: (1) Occupancy is no less than 93% for previous 12 months; (2) no defaults in the last 12 months of the HFA loan to be refinanced; (3) a 20 year affordable housing deed restriction placed on title that conforms to the statutory definition in section 542(c) of the Housing and Community Development Act of 1992; (4) a Property Capital Needs Assessment (PCNA) must be performed and funds escrowed for all necessary repairs, and reserves funded for future capital needs; and (5) for projects subsidized by Section 8 Housing Assistance Payment (HAP) contracts, owner agrees to renew HAP contract(s) for 20 year term, (subject to appropriations and statutory authorization), and existing and post-refinance HAP residual receipts are set aside to be used to reduce future HAP payments.
Granted By:
Date Granted:
Reason Waived: Waiver of the regulation was necessary to effectuate the
Contact:
* Regulation: 24 CFR 266.200(d).
Project/Activity:
Nature of Requirement: HUD's regulation at 24 CFR 266.200(d) addresses projects with Section 8 rental subsidies or other rental subsidies, and provides that refinancing of Section 202 projects the HFA is permitted to underwrite the mortgage using current or to be adjusted project-based Section 8 assisted rents, even though the rents exceed the market rates. This is consistent with HUD Housing Notice 2013-17--Updated Requirements for Prepayment and Refinance of Section 202 Direct Loans.
Granted By:
Date Granted:
Reason Waived: The waiver was necessary to effectuate the
Contact:
* Regulation: 24 CFR 266.620(e).
Project/Activity:
Nature of Requirement: HUD's regulation at 24 CFR 266.620(e), addresses termination of mortgage insurance provision (required for FFB Initiative), and in accordance with this regulation only Level I HFAs rated "A" or higher are permitted to substitute an indemnification agreement or similar document binding the
Granted By:
Date Granted:
Reason Waived: The waiver was necessary to effectuate the
Contact:
* Regulation: 24 CFR 266.200(c).
Project/Activity:
Nature of Requirement: HUD's regulation at 24 CFR 266.200(c) addresses equity take-outs for existing projects (refinance transactions), and permits the insured mortgage to exceed the sum of the total cost of acquisition, cost of financing, cost of repairs, and reasonable transaction costs or "equity take-outs" in refinances of HFA-financed projects and those outside of HFA's portfolio if the result is preservation with the following conditions: (1) Occupancy is no less than 93% for previous 12 months; (2) no defaults in the last 12 months of the HFA loan to be refinanced; (3) a 20 year affordable housing deed restriction placed on title that conforms to the statutory definition in section 542(c) of the Housing and Community Development Act of 1992; (4) a Property Capital Needs Assessment (PCNA) must be performed and funds escrowed for all necessary repairs, and reserves funded for future capital needs; and (5) for projects subsidized by Section 8 Housing Assistance Payment (HAP) contracts, owner agrees to renew HAP contract(s) for 20 year term, (subject to appropriations and statutory authorization), and existing and post-refinance HAP residual receipts are set aside to be used to reduce future HAP payments.
Granted By:
Date Granted:
Reason Waived: The waiver was necessary to effectuate the
Contact:
* Regulation: 24 CFR 266.200(d).
Project/Activity:
Nature of Requirement: HUD's regulation at 24 CFR 266.200(d) addresses projects with Section 8 rental subsidies or other rental subsidies, and provides that refinancing of Section 202 projects the HFA is permitted to underwrite the mortgage using current or to be adjusted project-based Section 8 assisted rents, even though the rents exceed the market rates. This is consistent with HUD Housing Notice 2013-17--Updated Requirements for Prepayment and Refinance of Section 202 Direct Loans.
Granted By:
Date Granted:
Reason Waived: The waiver was necessary to effectuate the
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 891.130(b).
Project/Activity:
Nature of Requirement: Section 891.130(b) prohibits an identify of interest between the sponsor or owner (or borrower, as applicable) and any development team member or between development team members until two years after final closing.
Granted by:
Date Granted:
Reason Waived: The entities are all affiliated, non-profit, and have non-compensated officers. They meet HUD requirements.
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.
* Regulations: 24 CFR 5.216(b), 5.508(h) and 5.609.
Project/Activity:
Nature of Requirement: These regulations require applicants for and participation in covered HUD programs to disclose and submit documentation to verify their Social Security Numbers and immigration status, and for the public housing authority to obtain income information about the applicant or participant prior to determining eligibility.
Granted By:
Reason Waived: In accordance with 24 CFR 5.110 and by virtue of section B.1 of the Redelegation of Authority to the Deputy Assistant Secretaries for Public and
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: Pursuant to 24 CFR 5.110, the request to waive the reporting compliance deadlines under 24 CFR 5.801 and remove the LPF score of zero was granted. The circumstances that prevented resubmitting and correcting the audited financial data by the due date are acceptable. The agency had made good faith efforts during the submission process.
Contact:
* Regulation: 24 CFR 5.801(d)(1).
Project/Activity: Housing Authority of the
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 circumstances that prevented the HA from resubmitting and correcting the unaudited financial data to be available for review by the auditor were beyond the agency's control. The agency made good faith efforts during the submission process. However, this Financial Assessment Subsystem (FASS) audited submission waiver (extension) does not apply to Single Audit submissions to the Federal Audit Clearinghouse. The HA is required to meet the Single Audit due dates.
Contact:
* Regulation: 24 CFR 902.20.
Project/Activity:
Nature of Requirement: The objective of this regulation is to determine whether a housing authority (HA) is meeting the standard of decent, safe, sanitary, and in good repair. The Real Estate Assessment Center (REAC) provides for an independent physical inspection of a HA's property of properties that includes a statistically valid sample of the units.
Granted By:
Date Granted:
Reason Waived: The circumstances surrounding the waiver request are unusual and beyond the agency's control. No physical inspections will be conducted for the HA's FYE
Contact:
* Regulation: 24 CFR 943.115(b)(3).
Project/Activity:
Nature of Requirement: This regulation states that a public housing agency may not participate in a consortium in its capacity as an owner of a Section 8 project
Granted By:
Date Granted:
Reason Waived: These 20 project-based vouchers would provide decent, safe and sanitary housing for low-income elderly families that may not otherwise be obtainable due to the shrinking vacancy rate and oil and gas expansion and overall increase in economic activity.
Contact:
* Regulation: 24 CFR 982.207(b)(1)(ii).
Project/Activity:
Nature of Requirement: This regulation states that a residency preference is a preference for admissions of persons who reside in a specific geographic area ("residency preference area"). A county or municipality may be used as a residency preference area; however, the regulation stipulates that "an area smaller than a county or municipality may not be used as a residency preference area."
Granted By:
Date Granted:
Reason Waived: The area known as Community Block 11 has a population of more than 120,000 which would rant in the top one percent of municipalities nationwide. Nearly 50 percent of seniors in CB11 live at or below the federal poverty level compared with just under 30 percent of seniors in the larger borough of
Contact:
* Regulation: 24 CFR 982.505(d).
Project/Activity:
Nature of Requirement: HUD's regulation at 24 CFR 982.505(d) states that a public housing agency may only approve a higher payment standard for a family as a reasonable accommodation if the higher payment standard is within the basic range of 90 to 110 percent of the fair market rent (FMR) for the unit size.
Granted By:
Date Granted:
Reason Waived: The participant, who is a person with disabilities, required an exception payment standard to remain in his current unit that meets his needs. To provide this reasonable accommodation so that the client could remain in his current unit and pay no more than 40 percent of his adjusted income toward the family share, the BHA was allowed to approve an exception payment standard that exceeded the basic range of 90 to 110 percent of the FMR.
Contact:
* Regulation: 24 CFR 982.505(d).
Project/Activity: Housing Authority of the
Nature of Requirement: HUD's regulation at 24 CFR 982.505(d) states that a public housing agency may only approve a higher payment standard for a family as a reasonable accommodation if the higher payment standard is within the basic range of 90 to 110 percent of the fair market rent (FMR) for the unit size.
Granted By:
Date Granted:
Reason Waived: The participant, who is a person with disabilities, required an exception payment standard to move to a new unit that meets her needs. To provide this reasonable accommodation so that the client could move to this unit and pay no more than 40 percent of her adjusted income toward the family share, the HACA was allowed to approve an exception payment standard that exceeded the basic range of 90 to 110 percent of the FMR.
Contact:
* Regulation: 24 CFR 982.505(d).
Project/Activity: Housing Authority of the County of
Nature of Requirement: HUD's regulation at 24 CFR 982.505(d) states that a public housing agency may only approve a higher payment standard for a family as a reasonable accommodation if the higher payment standard is within the basic range of 90 to 110 percent of the fair market rent (FMR) for the unit size.
Granted By:
Date Granted:
Reason Waived: The participant, who is a person with disabilities, required an exception payment standard to remain in his current unit that meets his needs. To provide this reasonable accommodation so that the client could remain in his current unit and pay no more than 40 percent of his adjusted income toward the family share, the HACA was allowed to approve an exception payment standard that exceeded the basic range of 90 to 110 percent of the FMR.
Contact:
* Regulation: 24 CFR 982.505(d).
Project/Activity:
Nature of Requirement: HUD's regulation at 24 CFR 982.505(d) states that a public housing agency may only approve a higher payment standard for a family as a reasonable accommodation if the higher payment standard is within the basic range of 90 to 110 percent of the fair market rent (FMR) for the unit size.
Granted By:
Date Granted:
Reason Waived: The participant, who is a person with disabilities, required an exception payment standard to move to a more accessible unit that met her needs. To provide this reasonable accommodation so that the client could move to this new unit and pay no more than 40 percent of her adjusted income toward the family share, the BHA was allowed to approve an exception payment standard that exceeded the basic range of 90 to 110 percent of the FMR.
Contact:
* Regulation: 24 CFR 982.505(d).
Project/Activity: Housing Authority of the County of
Nature of Requirement: HUD's regulation at 24 CFR 982.505(d) states that a public housing agency may only approve a higher payment standard for a family as a reasonable accommodation if the higher payment standard is within the basic range of 90 to 110 percent of the fair market rent (FMR) for the unit size.
Granted By:
Date Granted:
Reason Waived: The participant, who is a person with disabilities, required an exception payment standard to remain in his current unit that meets his needs. To provide this reasonable accommodation so that the client could remain in his current unit and pay no more than 40 percent of his adjusted income toward the family share, the HACA was allowed to approve an exception payment standard that exceeded the basic range of 90 to 110 percent of the FMR.
Contact:
* Regulation: 24 CFR 982.505(d).
Project/Activity: South Metro Housing Options (SMHO),
Nature of Requirement: HUD's regulation at 24 CFR 982.505(d) states that a public housing agency may only approve a higher payment standard for a family as a reasonable accommodation if the higher payment standard is within the basic range of 90 to 110 percent of the fair market rent (FMR) for the unit size.
Granted By:
Date Granted:
Reason Waived: The applicant, who is a person with disabilities, required an exception payment standard to remain in her mobile home and rent the manufactured home space. To provide this reasonable accommodation so that the client could remain in her current unit and pay no more than 40 percent of her adjusted income toward the family share, SMHO was allowed to approve an exception payment standard that exceeded the basic range of 90 to 110 percent of the FMR.
Contact:
* Regulation: 24 CFR 982.505(d).
Project/Activity:
Nature of Requirement: HUD's regulation at 24 CFR 982.505(d) states that a public housing agency may only approve a higher payment standard for a family as a reasonable accommodation if the higher payment standard is within the basic range of 90 to 110 percent of the fair market rent (FMR) for the unit size.
Granted By:
Date Granted:
Reason Waived: The applicant, who is a person with disabilities, required an exception payment standard to rent her manufactured home space for her mobile home. To provide this reasonable accommodation so that the client could remain in her current unit and pay no more than 40 percent of her adjusted income toward the family share, BHA was allowed to approve an exception payment standard that exceeded the basic range of 90 to 110 percent of the FMR.
Contact:
* Regulation: 24 CFR 983.53(a)(2).
Project/Activity:
Nature of Requirement: This regulation states that the public housing agency may not attach or pay project-based voucher assistance for units on the grounds of a penal, reformatory, medical, mental or similar public or private institutions.
Granted By:
Date Granted:
Reason Waived: The project is part of the
Contact:
* Regulation: 24 CFR 985.101(a).
Project/Activity:
Nature of Requirement: HUD's regulation at 24 CFR 985.101(a) states a PHA must submit the HUD-required Section Eight Management Assessment Program (SEMAP) certification form within 60 calendar days after the end of its fiscal year.
Granted By:
Date Granted:
Reason Waived: This waiver was granted because for its fiscal year ending
Contact:
* Regulation: 24 CFR 985.101(a).
Project/Activity:
Nature of Requirement: HUD's regulation at 24 CFR 985.101(a) states a PHA must submit the HUD-required Section Eight Management Assessment Program (SEMAP) certification form within 60 calendar days after the end of its fiscal year.
Granted By:
Date Granted:
Reason Waived:
Contact:
* Regulation: 24 CFR 985.101(a).
Project/Activity:
Nature of Requirement: HUD's regulation at 24 CFR 985.101(a) states a PHA must submit the HUD-required Section Eight Management Assessment Program (SEMAP) certification form within 60 calendar days after the end of its fiscal year.
Granted By:
Date Granted:
Reason Waived: FTHA is a small deregulated PHA with 230 voucher units. FTHA submitted its last SEMAP certification for its fiscal year ending
Contact:
* Regulation: 24 CFR 985.101(a).
Project/Activity:
Nature of Requirement: HUD's regulation at 24 CFR 985.101(a) states a PHA must submit the HUD-required Section Eight Management Assessment Program (SEMAP) certification form within 60 calendar days after the end of its fiscal year.
Granted By:
Date Granted:
Reason Waived: This waiver was granted since the SEMAP certification could not be submitted due to an issue with the Information Management System/Public and
Contact:
[FR Doc. 2015-15324 Filed 6-19-15;
BILLING CODE 4210-67-P


Advisor News
- Help women break through their retirement roadblocks
- Advisors await SEC decision on Vanguard fair fund distribution
- What to do when adult children become the client
- Judge rules insurers not liable for Newport Group’s AME Church pension lawsuit
- Why vacation homes are becoming a major blind spot for advisors
More Advisor NewsAnnuity News
- Legacy Marketing Group partners with Malibu Life USA for annuity launch
- Best’s Market Segment Report: Global Life/Annuity Reinsurers Remained Poised for Steady Growth
- When technology becomes easy to rent, what still separates life and annuity carriers?
- Legacy Marketing Group® and Malibu Life USA Announce Distribution Partnership for New Fixed Indexed Annuity Platform
- Empower Annuity Insurance Company of America Trademark Application for “EMPOWER WHAT’S NEXT” Filed: Empower Annuity Insurance Company of America
More Annuity NewsHealth/Employee Benefits News
Life Insurance News
- How advisors can get clients to act sooner on life insurance
- AM Best Affirms Credit Ratings of Crum & Forster Insurance Group’s Members and Monitor Life Insurance Company of New York
- AM Best Affirms Credit Ratings of Life Insurance Company Centras Life JSC
- AM Best Withdraws Credit Ratings of New Providence Life Insurance Company
- When technology becomes easy to rent, what still separates life and annuity carriers?
More Life Insurance News