Notice of Regulatory Waiver Requests Granted for the Third Quarter of Calendar Year 2016
Notice.
Citation: "81 FR 88262"
Document Number: "Docket No. FR-5946-N-03"
Page Number: "88262"
"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 third quarter of calendar year 2016.
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
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 third quarter of calendar year 2016) before the next report is published (the fourth quarter of calendar year 2016), HUD will include any additional waivers granted for the third 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:
Acting 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
IV. 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:
Nature of Requirement: Funds may not be spent prior to the completion of the environmental review process to avoid choice-limiting actions. The regulation allows for a waiver of that requirement if the grantee can demonstrate good cause and no harm.
Granted By:
Date Granted:
Reason Waived: The grantee met the regulatory requirements for the waiver and demonstrated good cause for its granting.
Contact:
* Regulation: 24 CFR 58.22.
Project/Activity: Former
Nature of Requirement: The regulation provides that "Neither a recipient nor any participant in the development process, including public or private nonprofit or for-profit entities, or any of their contractors, may commit HUD assistance under [the State CDBG-DR grant program] on an activity or project until HUD or the state has approved the recipient's Request for Release of Funds (RROF) and the related certification from the responsible entity. In addition, until the RROF and the related certification have been approved, neither a recipient nor any participant in the development process may commit non-HUD funds on or undertake an activity or project under [the State CDBG-DR grant program] if the activity or project would have an adverse environmental impact or limit the choice of reasonable alternatives." In this situation, the City, as grant recipient, committed non-HUD funds to acquire real property, the former Phenix Elementary school property, subsequent to the award of a State CDBG-DR grant but prior to the City receiving an approved Request for Release of Funds and Certification (RROF) from the State.
Granted By:
Date Granted:
Reason Waived: The violation is regulatory in nature, not statutory. Implementation of the proposed project is consistent with HUD's mission and will advance HUD program goals related to community development, economic development and support of the city's affordable housing supply. The project will benefit the community by preserving a historic landmark, the
Contact:
* Regulation: 24 CFR 92.500(d)(1)(C)--HOME Expenditure Requirement.
Project/Activity: The
Nature of Requirement: 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: The Commonwealth repaid
Contact:
* Regulation: 24 CFR 91.15(a)(2)--Consolidated Plan Requirements.
Project/Activity:
Nature of Requirement: As a condition of receiving funding, each HTF grantee is required to submit an HTF allocation plan to HUD, the requirements of which are incorporated into the consolidated plan regulations under 24 CFR part 91. The provisions at 24 CFR 91.15(a)(2) require that each grantee submit its HTF allocation plan to HUD no later than
Granted By:
Date Granted:
Reason Waived: FY 2016 is the first year in which funding is being made available for the HTF program. HUD published CPD Notice 16-07 Guidance for HTF Grantees on Fiscal Year 2016
GranteeName New DeadlineAmerican Samoa August 31, 2016 .Commonwealth of Puerto Rico November 14, 2016 .State of Arkansas September 30, 2016 .State of California September 30, 2016 .State of New Hampshire September 14, 2016 .State of Texas October 17, 2016 .
Contact:
II. Regulatory Waivers Granted by
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 115.305(a).
Project/Activity:
Nature of Requirement: 24 CFR 115.305(a) allows grants of Special Enforcement Efforts (SEE) funds to participants in the
Granted By: Assistant Secretary
Date Granted:
Reason Waived: The waiver allows FHEO to provide certain FHAP agencies with SEE funds above the amount set forth in the regulation in order to support ongoing, protracted, or complex litigation associated with the enforcement of their substantially equivalent fair housing laws.
Contact:
III. 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 200.73(c).
Project/Activity:
Nature of Requirement: The 24 CFR part 200.73(c) which, states that a site must contain no less than 5 rental dwelling units. Section 3.1.CC of the MAP Guide permits a project with two or noncontiguous parcels of land when the parcels comprise one marketable, manageable real estate entity.
Granted By:
Date Granted:
Reason Waived: The waiver was granted to allow the
Contact:
* Regulation: 24 CFR 200.73(c).
Project/Activity:
Nature of Requirement: The 24 CFR part 200.73(c) which, states that a site must contain no less than 5 rental dwelling units. Section 3.1.O.l.CC of the MAP Guide permits a project with two or more contiguous parcels of land when the parcels comprise one marketable, manageable real estate entity.
Granted By:
Date Granted:
Reason Waived: The waiver was granted to allow much needed preservation in an historic section of
Contact:
* Regulation: 24 CFR 219.220(b).
Project/Activity:
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 a waiver of the requirement to repay the Flexible Subsidy Operating Assistance Loan in full when it became due. Deferring the loan payment will preserve this affordable housing resource for an additional 20 years through the execution and recordation of a Rental Use Agreement.
Contact:
* Regulation: 24 CFR 219.220(b).
Project/Activity:
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 a waiver of the requirement to repay the Flexible Subsidy Operating Assistance Loan in full when it became due. Deferring the loan payment will preserve this affordable housing resource for an additional 20 years through the execution and recordation of a Rental Use Agreement.
Contact:
* Regulation: 24 CFR 219.220(b)
Project/Activity:
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 a waiver of the requirement to repay the Flexible Subsidy Operating Assistance Loan in full when it became due. Deferring the loan payment will preserve this affordable housing resource for an additional 20 years through the execution and recordation of a Rental Use Agreement.
Contact:
* Regulation: 24 CFR 219.220(b).
Project/Activity:
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 a waiver of the requirement to repay the Flexible Subsidy Operating Assistance Loans in full when they became due. Deferring the loan payments will preserve these affordable housing resources for an additional 35 years through the execution and recordation of a Rental Use Agreement.
Contact:
* Regulation: 24 CFR 232.7.
Project/Activity: CountryHouse of
Nature of Requirement: The regulation at 24 CFR 232.7 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 ratio of residents to full bathroom rooms is 6.75/1. The memory care residents need assistance with bathing. The project meets the
Contact:
* Regulation: 24 CFR 232.7.
Project/Activity:
Nature of Requirement: The regulation at 24 CFR 232.7 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 ratio of residents to full bathroom rooms is 7:1. The memory care residents need assistance with bathing. The project meets the
Contact:
* Regulation: 24 CFR 232.7.
Project/Activity: White Pines of
Nature of Requirement: The regulation at 24 CFR 232.7 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 ratio of residents to full bathroom rooms is 7:1. The memory care residents need assistance with bathing. The project meets the
Contact:
* Regulation: 24 CFR 232.1005.
Project/Activity:
Nature of Requirement: The regulation at 24 CFR 232.1005 mandates that all accounts deriving from the operation of the property, including operator accounts and including all funds received from any source or derived from the operation of the facility, are project assets subject to control under the insured mortgage loan's transactional documents, including, without limitation, the operator's regulatory agreement.
Granted By:
Date Granted:
Reason Waived: The waiver of the requirement, in part, is required to allow the projects to refinance. The bond trustee agreed to release the licenses associated with the projects from the collateral securing the bond obligation. However, all accounts receivable associated with the revenue generated as a result of the care provided continue to secure the bond obligation. All other accounts will be pledged in accordance with the Department's requirements. The service provider for the two projects agreed to provide a corporate guarantee to guarantee both loans.
Contact:
* Regulation: 24 CFR 242.21.
Project/Activity:
Nature of Requirement: The regulation mandates that application fees accompanying Section 242 applications cannot be refunded, in whole or in part.
Granted By:
Date Granted:
Reason Waived:
Contact:
* Regulation: 24 CFR 266.200(c)(2).
Project/Activity:
Nature of Requirement: 24 CFR 266.200(c)(2) HUD's regulation at 24 CFR 266.200(c)(2) allows existing projects to be refinanced if certain criteria are met. If the property is subject to an HFA financed loan to be refinanced and such refinancing will result in the preservation of affordable housing, refinancing of these properties is permissible if project occupancy is not less than 93 percent (to include consideration of rent in arrears), based on the average occupancy in the project over the most recent 12 months, and the mortgage does not exceed an amount supportable by the lower of the unit rents being collected under the rental assistance agreement or the unit rents being collected at unassisted projects in the market area that are similar in amenities and location to the project for which insurance is being requested. The HUD-insured mortgage may not exceed the sum of the existing indebtedness, cost of refinancing, the cost of repairs and reasonable transaction costs as determined by the Commissioner. If a loan to be refinanced has been in default within the 12 months prior to application for refinancing, the HFA must assume not less than 50 percent of the risk.
Equity take-outs for existing projects (refinance transactions): Permit 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 542(c) statutory definition;
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, etc.,), 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: Necessary to effectuate the
Contact:
* Regulation: 24 CFR 290.30(a).
Project/Activity:
Nature of Requirement: The regulation at 24 CFR 290.30(a), which governs the sale of HUD-held mortgages, states that "[e]xcept as otherwise provided in Section 290.31(a)(2), HUD will sell HUD-held multifamily mortgages on a competitive basis."
Granted by:
Date Granted:
Reason Waived: The owner requested and was granted a waiver of the non-competitive sale of two HUD-held multifamily mortgages. A waiver allows the Department to assign the mortgages to the owner's new mortgagee to avoid paying mortgage recording tax in the
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 to meet other requirements of the
Contact:
IV. 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(c)(1) and 24 CFR 5.801(d)(1).
Project/Activity: Brown County North East Kansas Community Action Program (KS168).
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: Brown County North Kansas Community Action Program, NEK-CAP (HA), a Section 8 only entity, requested an extension to submit its audited financial data for the fiscal year end (FYE) of
This FASS audited financial 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 date.
Contact:
* Regulation: 24 CFR 902.25.
Project/Activity:
Nature of Requirement: Physical inspections are required to ensure that public housing units are decent, safe, sanitary and in good repair, as determined by an inspection conducted in accordance with HUD's Uniform Physical Condition Standards (UPCS). Baseline inspections will have all properties inspected regardless of previous PHAS designation or physical inspection scores.
Granted By:
Date Partially Granted:
Reason Waived:
Pursuant to 24 CFR 5.110, the HA was granted a partial waiver for good cause of the PHAS and physical inspection score for its FYE
Contact:
* Regulation: 24 CFR 902.25.
Project/Activity:
Nature of Requirement: Physical inspections are required to ensure that public housing units are decent, safe, sanitary and in good repair, as determined by an inspection conducted in accordance with HUD's Uniform Physical Condition Standards (UPCS). Baseline inspections will have all properties inspected regardless of previous PHAS designation or physical inspection scores.
Granted By:
Date Partially Granted:
Reason Waived:
Pursuant to 24 CFR 5.110, the HA was granted a partial waiver for good cause of the PHAS and physical inspection score for its FYE
Contact:
* Regulation: 24 CFR 982.251(c).
Project/Activity:
Nature of Requirement: 24 CFR 982.251(c) states that a PHA shall select families to receive PBV assistance from its waiting list.
Granted By:
Date Granted:
Reason Waived: This regulation was waived so that the
Contact:
* Regulation: 24 CFR 982.251(c).
Project/Activity:
Nature of Requirement: 24 CFR 982.251(c) states that a PHA shall select families to receive PBV assistance from its waiting list.
Granted By:
Date Granted:
Reason Waived: This regulation was waived so that the
Contact:
* Regulation: 24 CFR 982.503(c).
Project/Activity:
Nature of Requirement: This regulation requires certain conditions prior to the approval of area-wide exception payment standards which the
Granted By:
Date Granted:
Reason Waived: This waiver was granted because in 2016 the separate FMRs for
Contact:
* Regulations: 24 CFR 982.503(c)(4)(ii), 982.503(c)(5) and 982.503(c)(3)(i)(B).
Project/Activity: Housing Authority of the
Nature of Requirement: These regulations require: (1) A six-month wait until payment standards could go above the basic range; (2) exception payment standards could not include more than 50 percent of the
Granted By:
Date Granted:
Reason Waived: These waivers were granted because of a shock to the rental housing market caused by increased economic activity in the
Contact:
* Regulation: 24 CFR 982.503(e)(1).
Project/Activity: Housing Works in
Nature of Requirement: 24 CFR 982.505(e)(1) states that a public housing agency (PHA) may obtain
Granted By:
Date Granted:
Reason Waived: One of the counties in the
Contact:
* Regulation: 24 CFR 982.505(c)(4).
Project/Activity:
Nature of Requirement: 24 CFR 982.505(c)(4) states that if the payment standard amount is increased during the term of the housing assistance payment contract, the increased payment standard shall be used to calculate the monthly housing assistance payment for the family beginning at the effective date of the family's first regular reexamination on or after the effect date of the increase in the payment standard amount.
Granted By:
Date Granted:
Reason Waived: This regulation was waived as a reasonable accommodation to allow a disabled participant to receive housing assistance and pay no more than 40 percent of its adjusted income toward the family share subsequent to the owner's rent increase prior to the annual recertification.
Contact:
* Regulation: 24 CFR 982.505(d).
Project/Activity:
Nature of Requirement: 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 no more than 120 percent of the
Granted By:
Date Granted:
Reason Waived: This regulation was waived as a reasonable accommodation to allow a disabled participant to receive housing assistance and pay no more than 40 percent of its adjusted income toward the family share.
Contact:
* Regulation: 24 CFR 982.505(d).
Project/Activity:
Nature of Requirement: 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 no more than 120 percent of the
Granted By:
Date Granted:
Reason Waived: This regulation was waived as a reasonable accommodation to allow a disabled participant to receive housing assistance and pay no more than 40 percent of its adjusted income toward the family share.
Contact:
* Regulation: 24 CFR 982.505(d).
Project/Activity: Housing Authority of the
Nature of Requirement: 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 no more than 120 percent of the
Granted By:
Date Granted:
Reason Waived: This regulation was waived as a reasonable accommodation to allow a disabled participant to receive housing assistance and pay no more than 40 percent of its adjusted income toward the family share.
Contact:
* Regulation: 24 CFR 982.505(d).
Project/Activity: Housing Authority of
Nature of Requirement: 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 no more than 120 percent of the
Granted By:
Date Granted:
Reason Waived: This regulation was waived as a reasonable accommodation to allow a disabled participant to receive housing assistance and pay no more than 40 percent of its adjusted income toward the family share.
Contact:
* Regulation: 24 CFR 982.505(d).
Project/Activity: Bellingham Whatcom County Housing Authorities in
Nature of Requirement: 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 no more than 120 percent of the
Granted By:
Date Granted:
Reason Waived: This regulation was waived as a reasonable accommodation to allow a disabled participant to receive housing assistance and pay no more than 40 percent of its adjusted income toward the family share.
Contact:
* Regulation: 24 CFR 982.505(d).
Project/Activity:
Nature of Requirement: 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 no more than 120 percent of the
Granted By:
Date Granted:
Reason Waived: This regulation was waived as a reasonable accommodation to allow a disabled participant to receive housing assistance and pay no more than 40 percent of its adjusted income toward the family share.
Contact:
* Regulation: 24 CFR 982.505(d).
Project/Activity:
Nature of Requirement: 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 no more than 120 percent of the
Granted By:
Date Granted:
Reason Waived: This regulation was waived as a reasonable accommodation to allow a disabled participant to receive housing assistance and pay no more than 40 percent of its adjusted income toward the family share.
Contact:
* Regulation: 24 CFR 982.505(d).
Project/Activity:
Nature of Requirement: 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 no more than 120 percent of the
Granted By:
Date Granted:
Reason Waived: This regulation was waived as a reasonable accommodation to allow a disabled participant to receive housing assistance and pay no more than 40 percent of its adjusted income toward the family share.
Contact:
* Regulation: 24 CFR 982.505(d).
Project/Activity:
Nature of Requirement: 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 no more than 120 percent of the
Granted By:
Date Granted:
Reason Waived: This regulation was waived as a reasonable accommodation to allow a disabled participant to receive housing assistance and pay no more than 40 percent of its adjusted income toward the family share.
Contact:
* Regulation: 24 CFR 985.101(a).
Project/Activity:
Nature of Requirement: 24 CFR 985.101(a) states a PHA must submit the HUD-required SEMAP certification form within 60 calendar days after the end of its fiscal year.
Granted By:
Date Granted:
Reason Waived: This waiver was granted for the FHC's fiscal year ending
Contact:
* Regulation: 24 CFR 985.101(a).
Project/Activity:
Nature of Requirement: 24 CFR 985.101(a) states a PHA must submit the HUD-required SEMAP certification form within 60 calendar days after the end of its fiscal year.
Granted By:
Date Granted:
Reason Waived: This waiver was granted for the THA's fiscal year ending
Contact:
* Regulation: 24 CFR 1000.224.
Project/Activity:
Nature of Requirement: HUD has the general authority under Section 101(b)(2) of NAHASDA to waive any IHP requirement when an
Granted By:
Date Granted:
Reason Waived: A waiver was requested and granted to extend the due date for
Contact:
* Regulation: 24 CFR 1006.410(a)(2).
Project/Activity: Native Hawaiian Housing Block Grant Program Annual Performance Report (APR)
Nature of Requirement: Each fiscal year the
Granted By:
Date Granted:
Reason Waived: DHHL was granted a 30-day extension to the due date to complete the subrecipient monitoring and allow public comment on the APR.
Contact:
[FR Doc. 2016-29354 Filed 12-6-16;
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