Federal Register / Vol. 85, No. 224 / Thursday, November 19, 2020 / Notices
Granted by: Len Wolfson, Acting Assistant
Secretary for Housing—Federal Housing
Date Granted: June 3, 2020.
Reason Waived: The waiver of the
requirement in 24 CFR 203.255(b)(11) that
states the mortgagee must certify, as
prescribed on the 92900–A, at the time of
insurance endorsement that the loan is in
compliance with all FHA origination and
underwriting requirements solely to the
extent that the borrower’s employment status
and ability to make mortgage payments, will
permit the mortgagee that grants the borrower
an Accommodation as defined at 4021 of the
Coronavirus Aid, Relief, and Economic
Security Act (CARES Act) for forbearance of
mortgage payments, after closing of the
mortgage transaction to be in compliance
with all FHA origination and underwriting
Contact: Kevin Stevens, Acting Director
Single Family Program Development, Office
of Housing, Department of Housing and
Urban Development, 451 Seventh Street SW,
Room 9266, Washington, DC 20410,
telephone (202) 402–4317.
•Regulation: 24 CFR 219.220(b).
Project/Activity: City View Park Walnut I,
FHA Project Number 083–14002; City View
Park Chestnut II, FHA Project Number 083–
12004; and City View Park Acorn III, FHA
Project Number 083–12005, Louisville, KY.
The owner of City View Park I, II, and III
seeks approval to defer repayment of the
Flexible Subsidy Operating Assistance Loans
on the subject projects.
Nature of Requirement: The regulation at
24 CFR 219.220(b) (1995), which governs the
repayment of operating assistance provided
under the Flexible Subsidy Program for
Troubled Properties, states ‘‘Assistance that
has been paid to a project owner under this
subpart must be repaid at the earlier of the
expiration of the term of the mortgage,
termination of mortgage insurance,
prepayment of the mortgage, or a sale of the
Granted by: Brian D. Montgomery,
Assistant Secretary for Housing—Federal
Date Granted: January 31, 2020.
Reason Waived: The owner requested and
was granted 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 40 years through the
execution and recordation of a Rental Use
Contact: Walter D. Wynn, Director, FAMD,
Office of Housing, Department of Housing
and Urban Development, 451 7th Street SW,
Room 6164, Washington, DC 20410,
telephone (202) 402–2231.
•Regulation: 24 CFR 242.17(c)(2).
Project/Activity: Maimonides Medical
Center, Brooklyn, New York.
Nature of Requirement: 24 CFR
242.17(c)(2) prohibits FHA from extending
Commitments for Insurance of Advances for
more than 180 days following the original
Granted By: Brian D. Montgomery,
Assistant Secretary for Housing—Federal
Date Granted: April 28, 2020.
Reason Waived: Initial Endorsement of
Maimonides Medical Center’s supplement
(Section 241) loan was delayed due to the
Covid-19 pandemic. The waiver allowed the
Federal Housing Administration to schedule
closing of Maimonides Medical Center’s
supplemental (Section 241) construction loan
for August 2020.
Contact: Paul Giaudrone, Underwriting
Director, Office of Hospital Facilities, Office
of Healthcare Programs, Office of Housing,
Department of Housing and Urban
Development, 409 3rd Street SW,
Washington, DC 20024, telephone (202) 708–
0599 Ext. 5684.
•Regulation: 24 CFR 266.200(b)(2).
Project/Activity: Massachusetts Housing
Partnership (MHP) The Department requires,
in 24 CFR 266.200(b)(2), Substantial
Rehabilitation, that substantial rehabilitation
(S/R) is defined as any combination of the
following work to an existing facility of a
project that aggregates to at least 15 percent
of the project’s value after the rehabilitation
and that results in material improvement of
the project’s economic life, livability,
marketability, and profitability. Boston,
Massachusetts. There is no project number.
Nature of Requirement: The Waiver of 24
CFR 266.200(b)(2), Substantial
Rehabilitation. The waiver would permit
Mass Housing Partnership (MHP) to use the
revised definition published in the Revised
MAP Guide on January 29, 2016, such that
S/R is: Any scope of work that either (a)
exceeds in aggregate cost a sum equal to the
‘base per dwelling unit limit’ times the
applicable *High Cost Factor, or (b)
replacement of two or more building systems.
Replacement is when the cost of replacement
work exceeds 50 percent of the cost of
replacing the entire system.
*The High Cost Factors for 2019 were
published through a Housing Notice (HN) on
May 20, 2019, and the revised statutory limits
were recently published in the Federal
Register on January 1, 2018. The 2019 base
dwelling unit amount to determine
substantial rehabilitation for FHA insured
loan programs has been increased from
$15,933 (changed from $6,500 per unit in the
2016 MAP guide) to $15,933. This amount
will change annually based upon the change
in the annual Consumer Price Index (CPI),
along with the statutory limits or other
inflation cost index published by HUD.
The regulatory waiver is subject to the
1. The waiver is limited to forty-eight (48)
projects and expires on December 31, 2023
for waiver request related to regulation 24
CFR 266.200(b)(2) and (c)(2).
2. MHP must elect to take 50 percent or
more of the risk of loss on all transactions.
3. Mortgages made under this waiver may
have amortization periods of up to 40 years,
but with a minimum term of 17 years.
4. All other requirements of 24 CFR
266.410—Mortgage Provision remain
applicable. The waiver is applicable only to
loans made under MHP’s Risk Sharing
5. Projects must comply with Davis-Bacon
labor standards in accordance with 24 CFR
6. MHP must comply with regulations
stated in 24 CFR 266.210 for insured
advances or insurance upon completion
7. The loans exceeding $50 million require
a separate waiver request.
8. Occupancy is no less than 93 percent for
previous 12 months.
9. No defaults in the last 12 months of the
HFA loan to be refinanced.
10. A 20-year affordable housing deed
restriction placed on title that conforms to
the Section 542(c) statutory definition.
11. A Property Capital Needs Assessment
(PCNA) must be performed and funds
escrowed for all necessary repairs, and
reserves funded for future capital needs; and
12. For projects subsidized by Section 8
Housing Assistance Payment (HAP)
a: Owner agrees to renew HAP contract(s)
for 20-year term, (subject to appropriations
and statutory authorization, etc.), and b: In
accordance with regulations in 24 CFR
883.306(e), and Housing Notice 2012–14—
Use of ‘‘New Regulation’’ Section 8 Housing
Assistance Payments (HAP) Contracts
Residual Receipts of Offset Project-Based
Section 8 Housing Assistance Payments, if at
any time MHP determines that a project’s
excess funds (surplus cash) after project
operations, reserve requirements and
permitted distributions are met, MHP must
place the excess funds into a separate
interest-bearing account. Upon renewal of a
HAP Contract the excess funds can be used
to reduce future HAP payments or other
project operations/purposes. When the HAP
Contract expires, is terminated, or any
extensions are terminated, any unused funds
remaining in the Residual Receipt Account at
the time of the contract’s termination must be
Granted By: Len Wolfson, Acting Assistant
Secretary for Housing-Federal Housing
Date Granted: June 30, 2020.
Reason Waived: The Department is
approving your request for forty-eight (48)
insured under the 542(c) HFA Risk Sharing
Program expiring on December 31, 2023. The
waiver of 24 CFR 266.200(b)(2) would permit
MHP to use the revised definition published
in the Revised MAP Guide on January 29,
2016, such that S/R is: Any scope of work
that either (a) exceeds in aggregate cost a sum
equal to the ‘base per dwelling unit limit’
times the applicable *High Cost*High Cost
Factor, or (b) replacement of two or more
building systems. Replacement is when the
cost of replacement work exceeds 50 percent
of the cost of replacing the entire system.
Contact: Patricia M. Burke, Director, Office
of Multifamily Production, HTD, Office of
Housing, Department of Housing and Urban
Development, 451 Seventh Street SW, Room
6132, Washington, DC 20410, telephone (202)
•Regulation: 24 CFR 266.200(c)(2).
Project/Activity: The Waiver of 24 CFR
266.200(c)(2), Existing Project ‘‘Equity Take-
out’’, that the refinancing of HFA refinance
loan is permissible if the preservation is the
result, with certain conditions: (1)
Occupancy at least 93 percent for previous 12
months; (2) underwrite to the lower of
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