Notice of Regulatory Waiver Requests Granted for the Fourth Quarter of Calendar Year 2020
| Published date | 03 June 2021 |
| Citation | 86 FR 29792 |
| Record Number | 2021-11616 |
| Section | Notices |
| Court | Housing And Urban Development Department |
Federal Register, Volume 86 Issue 105 (Thursday, June 3, 2021)
[Federal Register Volume 86, Number 105 (Thursday, June 3, 2021)]
[Notices]
[Pages 29792-29802]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-11616]
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-6210-N-04]
Notice of Regulatory Waiver Requests Granted for the Fourth
Quarter of Calendar Year 2020
AGENCY: Office of the General Counsel, HUD.
ACTION: Notice.
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SUMMARY: Section 106 of the Department of Housing and Urban Development
Reform Act of 1989 (the HUD Reform Act) requires HUD to publish
quarterly Federal Register notices of all regulatory waivers that HUD
has approved. Each notice covers the quarterly period since the
previous Federal Register notice. The purpose of this notice is to
comply with the requirements of section 106 of the HUD Reform Act. This
notice contains a list of regulatory waivers granted by HUD during the
period beginning on October 1, 2020 and ending on December 31, 2020.
FOR FURTHER INFORMATION CONTACT: For general information about this
notice, contact Aaron Santa Anna, Associate General Counsel for
Legislation and Regulations, Department of Housing and Urban
Development, 451 Seventh Street SW, Room 10276, Washington, DC 20410-
0500, telephone 202-708-3055 (this is not a toll-free number). Persons
with hearing- or speech-impairments may access this number through TTY
by calling the toll-free Federal Relay Service at 800-877-8339.
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 2020.
SUPPLEMENTARY INFORMATION: Section 106 of the HUD Reform Act added a
new section 7(q) to the Department of Housing and Urban Development Act
(42 U.S.C. 3535(q)), which provides that:
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 Federal Register. These notices (each covering the period
since the most recent previous notification) shall:
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 April 22, 1991
(56 FR 16337). In accordance with those procedures and with the
requirements of section 106 of the HUD Reform Act, waivers of
regulations are granted by the Assistant Secretary with jurisdiction
over the regulations for which a waiver was requested. In those cases
in which a General Deputy Assistant Secretary granted the waiver, the
General Deputy Assistant Secretary was serving in the absence of the
Assistant Secretary in accordance with the office's Order of
Succession.
This notice covers waivers of regulations granted by HUD from
October 1, 2020 through December 31, 2020. For ease of reference, the
waivers granted by HUD are listed by HUD program office (for example,
the Office of Community Planning and Development, the Office of Fair
Housing and Equal Opportunity, the Office of Housing, and the Office of
Public and Indian Housing, etc.). Within each program office grouping,
the waivers are listed sequentially by the regulatory section of title
24 of the Code of Federal Regulations (CFR) that is being waived. For
example, a waiver of a provision in 24 CFR part 58 would be listed
before a waiver of a provision in 24 CFR part 570.
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 Sec. 58.73 and
Sec. 58.74 would appear sequentially in the listing under Sec. 58.73.
Waiver of regulations that involve the same initial regulatory
citation are in time sequence beginning with the earliest-dated
regulatory waiver.
Additionally, this notice includes waivers made pursuant to the
Coronavirus Aid, Relief and Economic Security Act (CARES Act), not
previously published in the Federal Register. These waivers are listed
separately from other individual waivers within each program office
grouping, as CARES Act waivers broadly covered all affected parties
rather than individual, case-by-case situations. The lists include
additional Memoranda and Notices issued regarding broad CARES Act
waivers provided by HUD since the enactment of the Act on March 27,
2020. In addition, the lists provide a short, two- or three-line
description of each memo or notice, identifying the specific CARES Act
authority and purpose of the waivers addressed therein.
Should HUD receive additional information about waivers granted
during the period covered by this report (the fourth quarter of
calendar year 2020) before the next report is published (the first
quarter of calendar year 2021), 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.
Damon Y. Smith,
Principal Deputy General Counsel.
Appendix
Listing of Waivers of Regulatory Requirements Granted by Offices of the
Department of Housing and Urban Development October 1, 2020 Through
December 31, 2020
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.
[[Page 29793]]
The regulatory waivers granted appear in the following order:
I. Regulatory waivers granted by the Office of Community
Planning and Development.
II. Regulatory waivers granted by the Office of Housing.
III. Regulatory waivers granted by the Office of Public and
Indian Housing.
I. Regulatory Waivers Granted by the Office of Community Planning and
Development
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 92.203(a)(1) and (2), 24 CFR
92.64(a).
Project/Activity: Source documentation for HOME Investment
Partnerships Program (HOME) income determinations.
Nature of Requirement: The regulations require initial income
determinations for HOME beneficiaries and annual income
determination for a TBRA tenant by examining source documentation
covering the most recent two months.
Granted By: John Gibbs, Principal Deputy Assistant Secretary for
Community Planning and Development.
Date Granted: December 4, 2020.
Reason Waived: The waiver permits participating jurisdictions,
upon notifying the Department, to accept self-certification of
income in lieu of source documentation to determine the eligibility
for HOME assistance of persons where source documentation does not
accurately reflect current income and/or when social distancing
measures make submission of source documentation unduly difficult.
Many families affected by actions taken to reduce the spread of
COVID-19, such as business closures resulting in loss of employment
or lay-offs, will not have documentation that accurately reflects
current income and may not be able to qualify for HOME assistance if
the requirement remains effective. Additionally, the waiver is
necessary to help participating jurisdictions comply with national,
state, or local health authorities' recommendations on social
distancing to reduce the risk of spreading COVID-19.
Applicability: The waiver applies to individuals and families
who are applying for admission to a HOME rental unit or a HOME
tenant-based rental assistance program, and individuals and families
that are existing tenants of HOME rental projects or current
recipients of tenant-based rental assistance, who would be placed at
risk or experience hardship by submission of source documentation,
as determined by the participating jurisdiction, in consideration of
national, state or local health authorities' COVID-19 guidelines. A
participating jurisdiction that chooses to use this waiver must
ensure that the income self-certification takes into consideration
all income, including any unemployment and emergency benefits that
the Department determines to be income under 24 CFR 5.609(c)(9). The
participating jurisdiction must conduct rent and income reviews in
accordance with 24 CFR 92.203(a)(1) and (2) within 120 days after
the end of the extended waiver period. The participating
jurisdiction must include tenant income self-certifications in each
project file.
The waiver is effective from December 4, 2020, through September
30, 2021. The waiver is available to all HOME participating
jurisdictions.
Contact: Virginia Sardone, Director, Office of Affordable
Housing Programs, Office of Community Planning and Development,
Department of Housing and Urban Development, 451 Seventh Street SW,
Room 7160, Washington, DC 20410, telephone (202) 708-2684.
Regulation: 24 CFR 92.203(a)(2) and 24 CFR 92.64(a)
(Insular Areas).
Project/Activity: Income determinations for HOME Tenant-Based
Rental Assistance (TBRA).
Nature of Requirement: The regulations require the participating
jurisdiction to determine a TBRA tenant's annual income by examining
at least 2 months of source documentation evidencing income and
projecting anticipated income forward for the next 12 months. This
waiver permits participating jurisdictions to follow the regulations
at 24 CFR 92.203(a)(1)(ii) in lieu of requiring a review of source
documentation. The HOME regulations at 24 CFR 92.203(a)(1)(ii) allow
the participating jurisdiction to obtain a written statement of the
amount of the family's anticipated annual income and household size,
along with a certification that the information is complete and
accurate.
Granted By: John Gibbs, Principal Deputy Assistant Secretary for
Community Planning and Development.
Date Granted: December 4, 2020.
Reason Waived: Given the economic disruptions caused by the
COVID-19 pandemic, source documentation from the past two months may
not reflect the current financial circumstances of many households.
Requiring participating jurisdictions to determine an individual's
annual income using source documentation would be administratively
burdensome, may not reflect current or anticipated income, and may
result in individuals or families being incorrectly disqualified
from receiving TBRA. In addition, social distancing measures may
make submission of source documentation unduly difficult.
Applicability: This waiver is applicable to TBRA provided to
individuals or families experiencing financial hardship. This
requirement is waived through September 30, 2021, for tenant-based
rental assistance provided in response to the COVID-19 pandemic. The
participating jurisdiction must ensure that the tenant's self-
certification indicates how the tenant's financial situation has
changed, (i.e., job loss or reduced wages), and includes all income,
including any unemployment and emergency benefits that the
Department determines to be income under 24 CFR 5.609(c)(9).
If the household will continue to receive TBRA beyond the waiver
period, the participating jurisdiction must determine the
household's income eligibility in accordance with 24 CFR
92.203(a)(2) prior to executing a new TBRA contract. The
participating jurisdiction must include tenant income certifications
in each project file. This waiver is effective from the date of this
memorandum and remains in effect through the end of the waiver
period.
Contact: Virginia Sardone, Director, Office of Affordable
Housing Programs, Office of Community Planning and Development,
Department of Housing and Urban Development, 451 Seventh Street SW,
Room 7160, Washington, DC 20410, telephone (202) 708-2684.
Regulation: 24 CFR 92.205(e)(2) and 24 CFR 92.64(a).
Project/Activity: Four-year project completion deadline.
Nature of Requirement: The regulations require that projects
assisted with HOME funds be completed within four years of the date
that HOME funds were committed. If the project is not complete, in
accordance with the definition of ``project completion'' at 24 CFR
92.2, by the deadline, the project is involuntarily terminated in
HUD's Integrated Data Information System (IDIS), and the
participating jurisdiction must repay all funds invested in the
project. The regulations permit a participating jurisdiction to
request an extension of the deadline for up to one-year. 24 CFR
92.64(a) applies these requirements to Insular Areas.
Granted By: John Gibbs, Principal Deputy Assistant Secretary for
Community Planning and Development.
Date Granted: December 4, 2020.
Reason Waived: This waiver is necessary to provide additional
time to permit completion of HOME-assisted projects that may be
delayed due the effect of COVID-19 on project timelines.
Applicability: This waiver applies to projects with 4-year
project completion deadlines that occurred or will occur on after
April 10, 2020, including projects with deadlines that were extended
for one-year pursuant to an approved request under 24 CFR
92.205(e)(2) if such extension was in effect on or after April 10,
2020. The completion deadlines for covered projects are extended to
September 30, 2021. The waiver is available to all HOME
participating jurisdictions.
Contact: Virginia Sardone, Director, Office of Affordable
Housing Programs, Office of Community Planning and Development,
Department of Housing and Urban Development, 451 Seventh Street SW,
Room 7160, Washington, DC 20410, telephone (202) 708-2684.
Regulation: 24 CFR 92.209(a) and (h) and 24 CFR
92.64(a).
Project/Activity: Eligible tenant-based rental assistance costs
and maximum TBRA subsidy.
Nature of Requirement: The regulations state that eligible TBRA
costs include rental assistance and security deposit payments made
to income-eligible households. Participating jurisdictions can also
use HOME funds to provide utility deposit assistance if such
assistance is provided in conjunction with TBRA or a security
deposit payment. The amount of monthly utility costs included in
TBRA is limited by the utility allowance established by the
participating jurisdiction for its TBRA program. The maximum amount
of monthly assistance may not exceed the difference
[[Page 29794]]
between the participating jurisdiction's rent standard and 30
percent of the tenant's monthly adjusted income. The participating
jurisdiction must establish a minimum tenant contribution to rent,
and a rent standard that is based on local market conditions or the
subsidy standards under the Section 8 Housing Choice Voucher
Program. The HOME regulations at 24 CFR 92.64(a) apply these
requirements to Insular Areas.
This waiver allows participating jurisdictions to pay the full
cost of monthly utilities in addition to rental assistance and
security deposit payments for new and existing TBRA families
affected by the COVID-19 pandemic. Participating jurisdictions may
provide up to 100 percent subsidy for rent, security deposit
payments, and utilities for tenants affected by a reduction or loss
of income from the COVID-19 pandemic. In addition, this waiver
allows participating jurisdictions to pay past-due rent and fees,
including any late fees, as defined in the tenant's lease. This
waiver also permits the payment of utility costs, late fees
associated with overdue utilities, as well as necessary costs to
restore utility service. All costs must still comply with 2 CFR part
200, subpart E, including the requirement that HOME assistance not
be used to pay costs when other sources, including federal, state,
or local assistance have already been provided to pay the same
costs. The waiver also eliminates the need for the participating
jurisdiction to establish utility allowances for different types and
sizes of units for its TBRA program, which eliminates a significant
administrative burden.
Granted By: John Gibbs, Principal Deputy Assistant Secretary for
Community Planning and Development.
Date Granted: December 4, 2020.
Reason Waived: The COVID-19 pandemic has caused widespread loss
or reduction of income, significantly affecting the financial
stability of households, including existing TBRA families, and
rendering many unable to pay rent and/or utilities. Households must
be able to maintain the basic utilities required to ensure housing
remains safe and sanitary. Permitting participating jurisdictions to
use HOME funds to pay for utilities will enable affected households
to maintain decent, safe, and sanitary housing, which necessarily
requires electricity, water, and/or gas service during the pandemic.
As individuals experience financial hardship, the amount of
assistance required to ensure they remain housed will often exceed
the participating jurisdiction's payment standard. In addition,
individuals may be unable to pay the participating jurisdiction's
minimum required tenant contribution toward rent. Requiring
participating jurisdictions to establish or revise payment standards
and the minimum tenant contribution to rent policies in the current
emergency would be burdensome and delay the provision of TBRA in
response to the pandemic.
Applicability: This waiver is applicable to TBRA provided to
individuals or families experiencing financial hardship, including
existing TBRA families that have experienced a loss or reduction in
income due to the COVID-19 pandemic. This requirement is waived
through September 30, 2021, for rental assistance provided in
response to the COVID-19 pandemic. Participating jurisdictions using
this waiver authority must execute a rental assistance contract with
the owner or tenant for a term mutually agreed upon by all parties,
but not to exceed the waiver period ending on September 30, 2021.
The waiver is available to all HOME participating jurisdictions.
The participating jurisdiction may pay past-due rent and fees,
including late fees, in accordance with the tenant's lease and
federal requirements, due on or after January 27, 2020, the
effective date of the public health emergency declared by the
Secretary of Health and Human Services for the COVID-19 pandemic
until the end of the extended waiver period. Participating
jurisdictions should establish a timeframe for TBRA assistance
during the extended waiver period based on the circumstances in
their jurisdiction. In accordance with the Coronavirus Aid, Relief,
and Economic Security Act (CARES Act, Pub. L. 116-136) moratorium on
fees, after the effective date of the rental assistance contract,
the participating jurisdiction may not pay and an owner may not
charge, any fees associated with nonpayment of rent from March 27,
2020 until after July 24, 2020. The participating jurisdiction must
document the amount(s) and payment date(s) of any past-due rent and
fees in the TBRA tenant file. The file should also include evidence
that the fees comply with federal requirements, including the CARES
Act, 2 CFR part 200, subpart E, and tenant's lease. The
participating jurisdiction may make utility payments, including any
past-due payments, late fees and utility restoration costs due on or
after January 27, 2020, directly to the tenant or utility company
based on utility bills submitted for the assisted unit, either by
mail or electronically. The participating jurisdiction must document
the amount(s) and payment date(s) of any utility payments and fees
in the TBRA tenant file.
Contact: Virginia Sardone, Director, Office of Affordable
Housing Programs, Office of Community Planning and Development,
Department of Housing and Urban Development, 451 Seventh Street SW,
Room 7160, Washington, DC 20410, telephone (202) 708-2684.
Regulation: 24 CFR 92.209(e) and 24 CFR 92.64(a)
(Insular Areas).
Project/Activity: Term of rental assistance contract.
Nature of Requirement: The regulations establish requirements
for the term of rental assistance contracts, including that the term
must begin on the first day of the term of the lease. For a rental
assistance contract between a participating jurisdiction and an
owner, the term of the contract must terminate upon termination of
the lease. For a rental assistance contract between a participating
jurisdiction and a family, the term of the contract is not required
to terminate upon the termination of the lease, but no payments may
be made after lease termination until the family executes a new
lease. The HOME regulations at 24 CFR 92.64(a) apply these
requirements to Insular Areas.
Granted By: John Gibbs, Principal Deputy Assistant Secretary for
Community Planning and Development.
Date Granted: December 4, 2020.
Reason Waived: The waiver eliminates the requirement that the
rental assistance contract begin on the first day of the term of the
lease. This waiver is necessary to enable participating
jurisdictions to assist tenants that are currently housed, including
existing TBRA households, but have experienced sudden financial
hardship as a result of the COVID-19 pandemic. Because affected
households already have an executed lease, it is impossible for the
TBRA contract to begin on the first day of the term of the lease.
Applicability: This requirement is waived through September 30,
2021, for tenant-based rental assistance (TBRA) provided in response
to the COVID-19 pandemic. The participating jurisdiction's
requirement to execute a rental assistance contract with the owner
or tenant is not waived. Participating jurisdictions using this
waiver authority must execute a rental assistance contract with the
owner or tenant for a term mutually agreed upon by all parties, but
not to exceed the waiver period. The waiver is available to all HOME
participating jurisdictions.
Contact: Virginia Sardone, Director, Office of Affordable
Housing Programs, Office of Community Planning and Development,
Department of Housing and Urban Development, 451 Seventh Street SW,
Room 7160, Washington, DC 20410, telephone (202) 708-2684.
Regulation: 24 CFR 92.209(f) and 24 CFR 92.64(a).
Project/Activity: HOME TBRA rent reasonableness.
Nature of Requirement: The regulations require that a
participating jurisdiction must disapprove a lease if the rent is
not reasonable, based on an assessment of rents charged for
comparable unassisted rental units. The HOME regulations at 24 CFR
92.64(a) applies this requirement to Insular Areas.
Granted By: John Gibbs, Principal Deputy Assistant Secretary for
Community Planning and Development.
Date Granted: December 4, 2020.
Reason Waived: The waiver permits participating jurisdictions to
provide immediate rental assistance without requiring an assessment
of rents charged for comparable unassisted rental units. Given the
unprecedented need for rental assistance for individuals facing
financial hardship during the pandemic, requiring participating
jurisdictions to conduct a rent comparison prior to providing rental
assistance presents an undue administrative burden.
Applicability: The waiver is applicable to TBRA provided to
individuals and tenant households experiencing financial hardship
because of a reduction or loss of income. The requirement is waived
through September 30, 2021. Participating jurisdictions using this
waiver authority must execute a rental assistance contract with the
owner or tenant. The waiver is available to all participating
jurisdictions.
Contact: Virginia Sardone, Director, Office of Affordable
Housing Programs, Office of Community Planning and Development,
[[Page 29795]]
Department of Housing and Urban Development, 451 Seventh Street SW,
Room 7160, Washington, DC 20410, telephone (202) 708-2684.
Regulation: 24 CFR 92.209(g) and 24 CFR 92.64(a).
Project/Activity: HOME TBRA tenant protections--lease.
Nature of Requirement: The regulations require that each HOME-
assisted tenant have a lease that complies with the tenant
protection requirements of 24 CFR 92.253(a) and (b). In accordance
with 24 CFR 92.253(a), there must be a lease between the tenant and
the owner of rental housing assisted with HOME TBRA. The lease must
have a term of not less than one year, unless both parties mutually
agree to a shorter period. The lease cannot contain any of the
prohibited lease terms defined in 24 CFR 92.253(b). The HOME
regulations at 24 CFR 92.64(a) apply these requirements to Insular
Areas.
Granted By: John Gibbs, Principal Deputy Assistant Secretary for
Community Planning and Development.
Date Granted: December 4, 2020.
Reason Waived: The waiver permits participating jurisdictions to
assist individuals currently housed but facing financial hardship,
where an executed lease is already in place. During the COVID-19
pandemic, participating jurisdictions may assist individuals that
are already in rental units but are unable to pay rent and/or
utilities due to job loss or reduced wages. These individuals
already have an executed lease that may include one or more of the
prohibited lease terms included in 24 CFR 92.253(b). Requiring
participating jurisdictions to immediately execute or amend leases
creates an undue administrative burden and may disqualify some in-
place tenants from receiving TBRA.
Applicability: In response to the COVID-19 pandemic, the
requirement that a tenant assisted by TBRA have a lease that
complies with the requirements of 24 CFR 92.253(b) is waived through
September 30, 2021, for rental assistance provided to tenants
already housed who have an executed lease. The participating
jurisdictions using this waiver authority are required to execute a
rental assistance contract with the tenant for a term mutually
agreed upon by all parties, but not to exceed the waiver period
ending on September 30, 2021. The lease provisions at 24 CFR
92.253(a) are not waived. A household receiving TBRA must have an
executed lease with the project owner for a term of not less than
one year, unless both parties agree to a shorter term. In addition,
the participating jurisdiction must still comply with all VAWA
requirements contained in 24 CFR 92.359 by including, at a minimum,
a lease addendum that addresses all VAWA requirements.
Contact: Virginia Sardone, Director, Office of Affordable
Housing Programs, Office of Community Planning and Development,
Department of Housing and Urban Development, 451 Seventh Street SW,
Room 7160, Washington, DC 20410, telephone (202) 708-2684.
Regulation: 24 CFR 92.209(i) and 24 CFR 92.64(a).
Project/Activity: HOME TBRA housing quality standards.
Nature of Requirement: The regulations require that all housing
occupied by households receiving HOME TBRA must meet the housing
quality standards (HQS) at 24 CFR 982.401. The participating
jurisdiction is required to inspect the unit for compliance prior to
occupancy and annually thereafter. The HOME regulations at 24 CFR
92.64(a) apply these requirements to Insular Areas.
Granted By: John Gibbs, Principal Deputy Assistant Secretary for
Community Planning and Development.
Date Granted: December 4, 2020.
Reason Waived: The COVID-19 pandemic has created an
unprecedented need for rental assistance for tenant households
facing financial hardship. Participating jurisdictions must act
quickly to address these needs and requiring HQS inspections of all
units where HOME TBRA assistance is provided would create an
administrative burden and reduce participating jurisdictions'
ability to respond timely to the housing needs created by the
pandemic. In addition, requiring initial HQS inspections would
increase housing inspectors' risk of contracting or spreading the
COVID-19 virus.
Applicability: This waiver is applicable to TBRA provided to
tenant households experiencing financial hardship. This requirement
is waived through September 30, 2021, for rental assistance provided
in response to the COVID-19 pandemic. The lead-safe housing
requirements of 24 CFR part 35, subpart M, made applicable to units
leased by recipients of HOME TBRA by the HOME regulation at 24 CFR
92.355, cannot be waived. Consequently, units built before 1978 must
undergo visual evaluation and paint repair in accordance with 24 CFR
part 35, subpart M. Participating jurisdictions using this waiver
authority must establish procedures to minimize the risk that
tenants are in housing that does not meet HQS. If TBRA to the
household will continue beyond September 30, 2021, the participating
jurisdiction must conduct an HQS Inspection, in accordance with the
HOME requirements at 24 CFR 92.209(i), prior to executing a new TBRA
contract.
Contact: Virginia Sardone, Director, Office of Affordable
Housing Programs, Office of Community Planning and Development,
Department of Housing and Urban Development, 451 Seventh Street SW,
Room 7160, Washington, DC 20410, telephone (202) 708-2684.
Regulation: 24 CFR 92.210(a) and (b) and 24 CFR
92.64(a).
Project/Activity: Use of HOME funds for operating reserves for
troubled HOME projects.
Nature of Requirement: The regulations establish provisions to
permit HOME rental projects that are not financially viable (i.e.,
projects for which operating costs significantly exceed operating
revenue) to be the preserved through the use of HOME funds to
recapitalize project reserves. The regulations also require HUD to
review market needs, available resources, and the likelihood of
long-term viability of the project before approving this use of HOME
funds. In addition, a written memorandum of agreement between HUD
and the participating jurisdiction is a precondition of this funding
and the regulation places certain limitations on the amount of
funding. 24 CFR 92.64(a) applies these requirements to Insular
Areas.
Granted By: John Gibbs, Principal Deputy Assistant Secretary for
Community Planning and Development.
Date Granted: December 4, 2020.
Reason Waived: The waiver is necessary to enable participating
jurisdictions to take rapid action to preserve the financial
viability of HOME-assisted affordable rental projects currently
under a HOME period of affordability. Because existing tenants in
HOME units may be unable to meet their rent obligations due to the
economic impact of the COVID-19 pandemic, HOME rental projects may
experience operating deficits due to the sudden decrease in rental
revenue. The waiver is also necessary to enable participating
jurisdictions to recapitalize operating reserves to account for
increased operating costs related to the COVID-19 pandemic, such as
lost revenue due to the closure of amenities and/or more intensive
cleaning and disinfection of common areas.
Applicability: The waiver applies to HOME-assisted rental
projects currently within the period of affordability established in
the HOME written agreement. Participating jurisdictions will not be
required to obtain HUD approval or execute a memorandum of agreement
with HUD before providing this assistance. Participating
jurisdiction may only exercise this waiver authority when the
project owner agrees to forego: (1) Any distributions of residual
receipts resulting from the project throughout the waiver period and
for a period of 6 months thereafter; (2) any right under the
existing lease agreement or State or local law to pursue legal
action against tenants of HOME-assisted units for non-payment of
rent and the collection of any fees associated with late payments
without prior approval of the participating jurisdiction; and (3)
any adverse credit reporting against tenants of HOME-assisted units
for nonpayment of rent or fees without prior approval of the
participating jurisdiction. To clarify, per the waiver and 2 CFR
part 200 requirements, costs paid for by other sources are
ineligible and cannot be paid for by HOME funds. Private sources
include rent received from HOME-assisted tenants. To prevent the
misuse of HOME funds to pay for costs paid with other sources and to
maintain the eligibility of costs paid for by HOME assistance, the
owner must reduce the amount of any back rent owed by tenants by the
amount of HOME operating reserve assistance deposits. The amount
expended to pay operating reserve assistance must not exceed the
share of operating costs attributable to the HOME-assisted units. If
the owner pursues and receives back rent from a HOME-assisted
tenant, the owner must repay the amount of operating reserve
assistance equal to the amount of back rent received.
The participating jurisdiction may provide additional HOME funds
to recapitalize operating deficit reserves for HOME-assisted rental
projects if the participating jurisdiction determines that the
project is experiencing operating deficits related to the economic
[[Page 29796]]
effects of the COVID-19 pandemic during the waiver period. The
participating jurisdiction may only provide this assistance to
projects experiencing operating deficits that will not be covered by
insurance or other sources (e.g., other private, local, state, or
federal funds). The maximum amount of HOME assistance that may be
provided is equal to the total of the project's operating expenses,
previously scheduled payments to a replacement reserve, and actual
debt service (excluding debt service of loans in forbearance)
multiplied by the proportionate share of HOME-assisted units to the
total number of units in the project for the period beginning on
April 1, 2020 to September 30, 2021.
Project operating expenses may be demonstrated by one of the
following: Owner's most recent year-to-date financials for the
project; Certified project-level accounting records covering the
most recent 3 months; or Copies of project-level bank statements
covering the most recent 3 months. Project operating expenses may
also be adjusted due to COVID-19-related expenditures and foregone
expenses due to social distancing measures and other COVID-19-
related impacts. An owner may demonstrate these expenses with recent
receipts, copies of work orders, revised budgets that have been
certified by the project owner as true, accurate representations of
current expenditures. In order to take advantage of this waiver,
participating jurisdictions must amend the HOME written agreement
with the project owner to include the amount of HOME funds that will
be provided to an operating reserve (i.e., the proportion of total
costs attributable to HOME units as described in the paragraph
above), the costs eligible to be paid with HOME funds in the
operating reserve (i.e., operating expenses, scheduled payments to a
replacement reserve, and qualifying debt service), and the
documentation the participating jurisdiction is required to maintain
to demonstrate the allowable amounts and eligibility of costs paid
with the HOME funds in the operating reserve. The written agreement
must specify that the owner must forego: (1) Any distributions of
residual receipts during the period this waiver is in effect and for
a period of 6 months thereafter; (2) any right under the existing
lease agreement or State or local law to pursue legal action against
tenants of HOME-assisted units for non-payment of rent and the
collection of any fees associated with late payments without prior
approval of the participating jurisdiction; and (3) any adverse
credit reporting against tenants of HOME-assisted units for
nonpayment of rent or fees without prior approval of the
participating jurisdiction. Within 6 months following the waiver
period, the participating jurisdiction must review the project's
records of actual revenue and operating expenses, total amount of
HOME funds expended from the operating reserve, and the eligibility
of expenses by examining invoices and receipts. The written
agreement must require the project owner to repay any expenditures
for costs determined to be ineligible (which includes costs paid for
by other sources) and any balance of HOME funds remaining in the
reserve after the extended waiver period. Any HOME funds repaid to
the participating jurisdiction must be deposited in the local HOME
account and reported as program income in IDIS. The waiver is
effective through September 30, 2021.
The waiver is available to all HOME participating jurisdictions.
Contact: Virginia Sardone, Director, Office of Affordable
Housing Programs, Office of Community Planning and Development,
Department of Housing and Urban Development, 451 Seventh Street SW,
Room 7160, Washington, DC 20410, telephone (202) 708-2684.
Regulation: 24 CFR 92.252(h) and 24 CFR 92.64(a)
(Insular Areas).
Project/Activity: Source documentation for income re-
examinations.
Nature of Requirement: The regulations require re-examination of
income of each tenant using source documentation in accordance with
Sec. 92.203(a)(1)(i) in every sixth year of the affordability
period where an owner of a multifamily project with an affordability
period of 10 years of more re-examine tenant's annual income through
a statement and certification in accordance with Sec.
92.203(a)(1)(ii). 24 CFR 92.64(a) applies these requirements to
Insular Areas.
Granted By: John Gibbs, Principal Deputy Assistant Secretary for
Community Planning and Development.
Date Granted: December 4, 2020.
Reason Waived: This waiver permits the use of self-certification
of income, as provided at Sec. 92.203(a)(1)(ii), in lieu of source
documentation to re-examine the income of tenants residing in a HOME
multifamily project with a period of affordability of 10 years or
more, if the reexamination of tenant income required in every sixth
year of the project's period of affordability occurs on or before
September 30, 2021.
This waiver is necessary because source documentation may not
accurately reflect the current income of existing tenants and/or
social distancing measures may make submission of source
documentation unduly difficult. Many families affected by actions
taken to reduce the spread of COVID-19, such as business closures
resulting in loss of employment or lay-offs, will not have
documentation that accurately reflects current income and will not
be able to qualify for HOME assistance if the requirement remains in
effect. Additionally, the waiver is necessary to help participating
jurisdictions comply with national, state, or local health
authorities' recommendations on social distancing to reduce the risk
of spreading COVID-19.
Applicability: This waiver applies to an owner of a HOME
multifamily rental project with a period of affordability of 10
years or more to use self-certification of income if a reexamination
of tenant income required in every sixth year of the project's
period of affordability occurs on or before September 30, 2021. This
is to accommodate a tenant with source documentation that does not
accurately reflect current income and/or where individuals and
families would be placed at risk or experience hardship by
submission of source documentation to the owner, as determined by
the participating jurisdiction, in consideration of national, state
or local health authorities' COVID-19 guidelines. The waiver is
available to all HOME participating jurisdictions.
Contact: Virginia Sardone, Director, Office of Affordable
Housing Programs, Office of Community Planning and Development,
Department of Housing and Urban Development, 451 Seventh Street SW,
Room 7160, Washington, DC 20410, telephone (202) 708-2684.
Regulation: 24 CFR 92.254(a)(3) and 24 CFR 92.64(a).
Project/Activity: Nine-month deadline for sale of HOME-assisted
homebuyer units.
Nature of Requirement: The regulations require that a homebuyer
housing unit developed with HOME funds have a ratified contract for
sale to an eligible homebuyer within nine months of the date of
completion of construction or rehabilitation. If there is no
ratified sales contract with an eligible homebuyer within 9 months
of completion of construction or rehabilitation, the housing must be
rented to an eligible tenant in accordance with Sec. 92.252. 24 CFR
92.64(a) applies these requirements to Insular Areas.
Granted By: John Gibbs, Principal Deputy Assistant Secretary for
Community Planning and Development.
Date Granted: December 4, 2020.
Reason Waived: Many participating jurisdictions will not be able
to meet this deadline due to the effect the COVID-19 pandemic will
have on the ability of eligible households to qualify for mortgages
as a result of income losses or the inability to schedule
inspections, title searches, or closings during periods of business
closures. The waiver is necessary to prevent the loss of
homeownership opportunities for HOME-eligible families and
temporarily suspend the required corrective action of repayment of
HOME funds or conversion of the homebuyer units to rental housing.
Applicability: The waiver applies to projects for which the
nine-month homebuyer sale deadline occurs on or after the date of
this memorandum and extends the deadline for those projects to
September 30, 2021. The waiver is available to all HOME
participating jurisdictions. This waiver does not apply to the
remaining requirements of the regulation, including that a homebuyer
must receive housing counseling, and that a participating
jurisdiction must determine eligibility of a family by including the
income of all persons living in the housing.
Contact: Virginia Sardone, Director, Office of Affordable
Housing Programs, Office of Community Planning and Development,
Department of Housing and Urban Development, 451 Seventh Street SW,
Room 7160, Washington, DC 20410, telephone (202) 708-2684.
Regulation: 24 CFR 92.504(d)(1)(ii) and 24 CFR
92.64(a).
Project/Activity: On-site inspections of HOME-assisted rental
housing.
Nature of Requirement: The regulations require that during the
period of affordability participating jurisdictions perform on-site
inspections of HOME-assisted rental housing at least once every
three years to determine
[[Page 29797]]
compliance with the property standards and to verify the information
submitted by the owners in accordance with the income and rent
requirements. 24 CFR 92.64(a) applies these requirements to Insular
Areas.
Granted By: John Gibbs, Principal Deputy Assistant Secretary for
Community Planning and Development.
Date Granted: December 4, 2020.
Reason Waived: Waiving the requirement to perform ongoing on-
site inspections will help protect participating jurisdiction staff
and limit the spread of COVID-19. To protect participating
jurisdiction staff and reduce the spread of COVID-19, this waiver
extends the timeframe for participating jurisdictions to perform on-
going periodic inspections and on-site reviews to determine a HOME
rental project's compliance with property standards and rent and
income requirements.
Applicability: The waiver is applicable to ongoing periodic
inspections and does not waive the requirement to perform initial
inspections of rental properties upon completion of construction or
rehabilitation. Within 120 days of the end of this waiver period,
participating jurisdictions must physically inspect units that would
have been subject to on-going inspections during the waiver period.
The waiver is also applicable to on-site reviews to determine a HOME
rental project's compliance with rent and income requirements if the
project owner is unable to make documentation available
electronically. The waiver is in effect through September 30, 2021.
The waiver is available to all HOME participating jurisdictions.
Contact: Virginia Sardone, Director, Office of Affordable
Housing Programs, Office of Community Planning and Development,
Department of Housing and Urban Development, 451 Seventh Street SW,
Room 7160, Washington, DC 20410, telephone (202) 708-2684.
Regulation: 24 CFR 92.504(d)(1)(iii); 24 CFR 92.209(i)
and 24 CFR 92.64(a).
Project/Activity: Housing Quality Standards--Initial and annual
inspection of units occupied by recipients of HOME tenant-based
rental assistance (TBRA).
Nature of Requirement: The regulations require participating
jurisdictions to initially inspect each unit to be occupied by a
recipient of HOME TBRA and annually re-inspect each unit occupied by
a recipient of HOME TBRA. 24 CFR 92.64(a) applies these requirements
to Insular Areas.
Granted By: John Gibbs, Principal Deputy Assistant Secretary for
Community Planning and Development.
Date Granted: December 4, 2020.
Reason Waived: Waiving the requirement that HQS inspections be
performed before a HOME TBRA recipient leases and occupies a rental
unit and annually re-inspect according to schedule will protect the
health of both inspectors and TBRA tenants by observing physical
distancing recommendations to limit the spread of COVID-19.
Applicability: The waiver is applicable to initial and annual
housing quality standards inspections required to occur from April
10, 2020, through September 30, 2021. The waiver is available to all
HOME participating jurisdictions.
Participating jurisdictions using this waiver authority for
families assisted under TBRA are not required to inspect for
compliance with HQS in accordance with 24 CFR 982.401. Participating
jurisdiction shall make reasonable efforts to address any tenant-
reported health and safety issues during the waiver period. At the
conclusion of the extended waiver period, all housing occupied by
households receiving HOME TBRA must meet the housing quality
standards (HQS) at 24 CFR 982.401. However, this waiver does not
apply to the requirements at 24 CFR 35.1215. Consequently, units
built before 1978 must undergo visual evaluation and paint repair in
accordance with 24 CFR part 35, subpart M. Participating
jurisdictions using this waiver authority must establish procedures
to minimize the risk that tenants are in housing that does not meet
HQS.
Contact: Virginia Sardone, Director, Office of Affordable
Housing Programs, Office of Community Planning and Development,
Department of Housing and Urban Development, 451 Seventh Street SW,
Room 7160, Washington, DC 20410, telephone (202) 708-2684.
Regulation: 24 CFR 92.504(d)(1)(iii); 24 CFR 92.209(i)
and 24 CFR 92.64(a).
Project/Activity: Annual inspection of units occupied by
recipients of HOME tenant-based rental assistance (TBRA).
Nature of Requirement: Provisions require participating
jurisdictions to annually inspect each unit occupied by a recipient
of HOME TBRA.
Granted By: John Gibbs, Principal Deputy Assistant Secretary for
Community Planning and Development.
Date Granted: December 4, 2020.
Reason Waived: Waiving the requirement that annual HQS
inspections be performed according to schedule will protect the
health of both inspectors and TBRA tenants by observing physical
distancing recommendations to limit the spread of COVID-19.
Applicability: The waiver is applicable to annual HQS
inspections required to occur from April 10, 2020 through September
30, 2021. Participating jurisdictions using this waiver authority
are not required to inspect for compliance with HQS in accordance
with 24 CFR 982.401. Participating jurisdictions shall make
reasonable efforts to address any tenant reported health and safety
issues during the waiver period. All housing that will continue to
be occupied by HOME TBRA households after the end of the extended
waiver period, must be inspected for compliance with HQS prior to
executing a new TBRA contract.
Contact: Virginia Sardone, Director, Office of Affordable
Housing Programs, Office of Community Planning and Development,
Department of Housing and Urban Development, 451 Seventh Street SW,
Room 7160, Washington, DC 20410, telephone (202) 708-2684.
Regulation: 24 CFR 92.551(b)(1) and 24 CFR 92.64(a).
Project/Activity: Timeframe for a HOME participating
jurisdiction's response to findings of noncompliance.
Nature of Requirement: The regulations require that if HUD
determines that a participating jurisdiction has not met a provision
of the HOME regulations, the participating jurisdiction must be
notified and given an opportunity to respond within a time period
prescribed by HUD, not to exceed 30 days. 24 CFR 92.64(a) applies
this requirement to Insular Areas.
Granted By: John Gibbs, Principal Deputy Assistant Secretary for
Community Planning and Development.
Date Granted: December 4, 2020.
Reason Waived: The waiver is necessary to permit HUD to provide
participating jurisdictions with an extended period to respond to
findings of noncompliance in recognition of the unanticipated
circumstances created by the COVID-19 pandemic. Requiring
participating jurisdictions to respond to all findings of
noncompliance within 30 days may interfere with a participating
jurisdiction's ability to address the unprecedented housing needs
caused by the COVID-19 pandemic.
Applicability: The waiver applies to all findings of HOME
regulatory noncompliance issued from April 10, 2020, through
September 30, 2021. In the notice of findings, HUD will specify a
time period for the participating jurisdiction's response. HUD may
also extend time periods imposed before April 10, 2020. The waiver
is available to all HOME participating jurisdictions.
Contact: Virginia Sardone, Director, Office of Affordable
Housing Programs, Office of Community Planning and Development,
Department of Housing and Urban Development, 451 Seventh Street SW,
Room 7160, Washington, DC 20410, telephone (202) 708-2684.
Regulation: 24 CFR 92.252(d)(1) Utility Allowance
Requirements.
Project/Activity: The County of Santa Clara, the City of
Mountain View, and the County of San Luis Obispo, California,
requested a waiver of 24 CFR 92.252(d)(1) to allow use of the
utility allowance established by a local public housing agency (PHA)
for three HOME-assisted projects: Orchard Ranch Apartments in Santa
Clara County, Shorebreeze II Family Apartments in Mountain View, and
Courtyard at the Meadows in San Luis Obispo County.
Nature of Requirement: The regulation at 24 CFR 92.252(d)(1)
requires participating jurisdictions to establish maximum monthly
allowances for utilities and services (excluding telephone) and
update the allowances annually. However, participating jurisdictions
are not permitted to use the utility allowance established by the
local public housing authority for HOME-assisted rental projects for
which HOME funds were committed on or after August 23, 2013.
Granted By: John Gibbs, Principal Deputy Assistant Secretary for
Community Planning and Development.
Date Granted: November 17, 2020.
Reason Waived: The HOME requirements for establishing a utility
allowances conflict with Project Based Voucher program requirements.
It is not possible to use two different utility allowances to set
the rent for a single unit and it is administratively burdensome to
require a project owner establish and implement different utility
allowances for HOME-assisted units and non-HOME assisted units in a
project.
[[Page 29798]]
Contact: Virginia Sardone, Director, Office of Affordable
Housing Programs, Department of Housing and Urban Development, 451
Seventh Street SW, Room 7160, Washington, DC 20410, telephone (202)
402-4606.
Regulation: 24 CFR 578.3, definition of permanent
housing, 24 CFR 578.51(1)(1).
Project/Activity: The one-year lease requirement is waived for
leases executed between the date of this memorandum and March 31,
2021, so long as the initial term of all leases is at least one
month.
Nature of Requirement: Program participants residing in PSH must
be the tenant on a lease for a term of at least one year that is
renewable and terminable for cause.
Granted By: John Gibbs, Acting Assistant Secretary for Community
Planning and Development.
Date Granted: December 29, 2020.
Reason Waived: HUD originally waived this requirement for 6-
months on March 31, 2020 and again until December 31, 2020 on
September 30, 2020 to help recipients more quickly identify
permanent housing for individuals and families experiencing
homelessness, which is helpful in preventing the spread of COVID-19.
Extending this waiver is necessary because recipients continue to
need to help program participants identify housing quickly to help
prevent the spread of COVID-19.
Contact: Norm Suchar, Director, Office of Special Needs
Assistance Programs, Office of Community Planning and Development,
Department of Housing and Urban Development, 451 Seventh Street SW,
Room 7262, Washington, DC 20410, telephone (202) 708-4300.
Regulation: 24 CFR 578.33(c).
Project/Activity: The requirement that the renewal grant amount
be based on the budget line items in the final year of the grant
being renewed is further waived for all projects that amend their
grant agreement between January 1, 2021 and March 31, 2021 to move
funds between budget line items in a project in response to the
COVID-19 pandemic. Recipients may then apply in the next FY CoC
Program funding cycle based on the budget line items in the grants
before they were amended.
Nature of Requirement: 24 CFR 578.33(c) requires that budget
line item amounts a recipient is awarded for renewal in the CoC
Program Competition will be based on the amounts in the final year
of the prior funding period of the project.
Granted By: John Gibbs, Acting Assistant Secretary for Community
Planning and Development.
Date Granted: December 29, 2020.
Reason Waived: HUD originally waived this requirement for grant
agreement amendments signed between March 31, 2020 and October 1,
2020 to allow recipients to move funds between budget line items in
a project in response to the COVID-19 pandemic and still apply for
renewal in the next FY CoC Program funding cycle based on the budget
line items in the grants before they were amended. HUD again waived
this requirement for all grant agreements signed from October 1,
2020 until December 31, 2020. Recipients continue to report needing
to shift budget line items to respond to the COVID-19 pandemic
(e.g., providing different supportive service necessitated by the
pandemic or serving fewer people because the layout of the housing
does not meet local social distancing recommendations) without
changing the original design of the project when it is not operating
in a public health crisis and can resume normal operations.
Contact: Norm Suchar, Director, Office of Special Needs
Assistance Programs, Office of Community Planning and Development,
Department of Housing and Urban Development, 451 Seventh Street SW,
Room 7262, Washington, DC 20410, telephone (202) 708-4300.
Regulation: 24 CFR 578.37(a)(l)(ii)(F).
Project/Activity: The requirement in 24 CFR 578.37(a)(1)(ii)(F)
that projects require program participants to meet with case
managers not less than once per month is waived for all permanent
housing-rapid re-housing projects until March 31, 2021.
Nature of Requirement: Recipients must require program
participants of permanent housing-rapid re-housing projects to meet
with a case manager at least monthly.
Granted By: John Gibbs, Acting Assistant Secretary for Community
Planning and Development.
Date Granted: December 29, 2020.
Reason Waived: HUD originally waived this requirement for 2-
months on March 31, 2020. On May 22, 2020 HUD again waived this
requirement for an additional 3 months and on September 30, 2020 HUD
once again waived this requirement until December 31, 2020.
Recipients are continuing to report limited staff capacity as staff
members are home for a variety of reasons related to COVID-19 (e.g.,
quarantining, children home from school, working elsewhere in the
community to manage the COVID-19 response). In addition, not all
program participants have capacity to meet via phone or internet.
Waiving the monthly case management requirement as specified below
will allow recipients to provide case management on an as needed
basis and reduce the possible spread and harm of COVID-19.
Contact: Norm Suchar, Director, Office of Special Needs
Assistance Programs, Office of Community Planning and Development,
Department of Housing and Urban Development, 451 Seventh Street SW,
Room 7262, Washington, DC 20410, telephone (202) 708-4300.
Regulation: 24 CFR 578.49(b)(2).
Project/Activity: The Fair Market Rent (FMR) restriction
continues to be waived for any lease executed by a recipient or
subrecipient to provide transitional or permanent supportive housing
until March 31, 2021. The affected recipient or subrecipient must
still ensure that rent paid for individual units that are leased
with leasing dollars meet the rent reasonableness standard in 24 CFR
578.49(b)(2).
Nature of Requirement: Rent payments for individual units with
leasing dollars may not exceed (FMR).
Granted By: John Gibbs, Acting Assistant Secretary for Community
Planning and Development.
Date Granted: December 29, 2020.
Reason Waived: HUD originally waived this requirement for 6-
months on March 31, 2020. On September 30, 2020 HUD again waived
this requirement until December 31, 2020. Extending this waiver of
the limit on using grant leasing funds to pay above FMR for
individual units, but not greater than reasonable rent, will assist
recipients in locating additional units to house individuals and
families experiencing homelessness and reduce the spread and harm of
COVID-19.
Contact: Norm Suchar, Director, Office of Special Needs
Assistance Programs, Office of Community Planning and Development,
Department of Housing and Urban Development, 451 Seventh Street SW,
Room 7262, Washington, DC 20410, telephone (202) 708-4300.
Regulation: 24 CFR 578.75(b)(1).
Project/Activity: The waiver of the requirement in 24 CFR
578.75(b)(1) that the recipient or subrecipient physically inspect
each unit to assure that the unit meets Housing Quality Standards
(HQS) before providing assistance on behalf of a program participant
is in effect until March 31, 2021 for recipients and subrecipients
that are able to obtain certification from the owner that they have
no reasonable basis to have knowledge that life-threatening
conditions exist in the unit or units in question; and the recipient
or subrecipient has written policies to physically inspect the unit
within 3 months after the health officials determine special
measures to prevent the spread of COVID-19 are no longer necessary.
Nature of Requirement: 24 CFR 278.75(b)(1) requires that
recipients or subrecipients physically inspect each unit to assure
that it meets HQS before any assistance will be provided for that
unit on behalf of a program participant.
Granted By: John Gibbs, Acting Assistant Secretary for Community
Planning and Development.
Date Granted: December 29, 2020.
Reason Waived: On March 31, 2020, HUD waived the physical
inspection requirement at 24 CFR 578.75(b)(l) for 6-months so long
as recipients or subrecipients were able to visually inspect the
unit using technology to ensure the unit met HQS before any
assistance was provided and recipients or subrecipients had written
policies in place to physically reinspect the unit within 3 months
after the health officials determined special measures to prevent
the spread of COVID-19 are no longer necessary. However, this
standard still relies on program participants or landlords having
the technology to carry out this virtual inspection. Waiving the
initial inspection requirement at 24 CFR 578.75(b)(l) as further
specified below will allow recipients to move people from the
streets and shelters into housing more quickly, which enables social
distancing, and helps prevent the spread of COVID-19.
Contact: Norm Suchar, Director, Office of Special Needs
Assistance Programs, Office of Community Planning and Development,
Department of Housing and Urban Development, 451 Seventh Street SW,
Room 7262, Washington, DC 20410, telephone (202) 708-4300.
[[Page 29799]]
Regulation: 24 CFR 578.75(c) and 24 CFR
982.401(d)(2)(ii) as required by 24 CFR 578.75(b)
Project/Activity: The requirement that each unit assisted with
CoC Program funds or YHDP funds have at least one bedroom or living/
sleeping room for each two persons is waived for recipients
providing Permanent Housing-Rapid Rehousing assistance for leases
and occupancy agreements executed by recipients and subrecipients
between the date of this memorandum and March 31, 2021 and extending
only until the later of (1) the end of the initial term of the lease
or occupancy agreement; or (2) March 31, 2021. Recipients are still
required to follow State and local occupancy laws.
Nature of Requirement: 24 CFR 578.75(c), suitable dwelling size,
and 24 CFR 982.401(d)(2)(ii) as required by 24 CFR 578.75(b),
Housing Quality Standards, requires units funded with CoC Program
funds to have at least one bedroom or living/sleeping room for each
two persons.
Granted By: John Gibbs, Acting Assistant Secretary for Community
Planning and Development.
Date Granted: December 29, 2020.
Reason Waived: On September 30, 2020, HUD waived the
requirements at 24 CFR 982.401(d)(2)(ii) and 24 CFR 578.75(c) to
allow households experiencing homelessness to obtain permanent
housing that is affordable and that they assess is adequate.
Recipients continue to report that households experiencing
homelessness remain unable to afford the limited supply of
affordable housing in many jurisdictions across the country and this
has been made even more challenging due to the economic impact of
COVID-19. HUD is waiving the requirements at 24 CFR
982.401(d)(2)(ii) and 24 CFR 578.75(c) as further specified below to
reduce the spread of COVID-19 by allowing households to move into
housing instead of staying in congregate shelter. Consistent with
the Executive Order on Fighting the Spread of COVID-19 by Providing
Assistance to Renters and Homeowners, grantees should balance use of
this waiver with the recommendations of public health officials to
limit community spread and reduce risks to high-risk populations.
For example, a large unit with rooms than can be partitioned for
privacy and distancing, or the waiver can be applied for units that
will house only one family household.
Contact: Norm Suchar, Director, Office of Special Needs
Assistance Programs, Office of Community Planning and Development,
Department of Housing and Urban Development, 451 Seventh Street SW,
Room 7262, Washington, DC 20410, telephone (202) 708-4300.
Regulation: 24 CFR 578.103(a)(7)(iv).
Project/Activity: The waiver of the requirement at 24 CFR
578.103(a)(7)(iv) that the recipient or subrecipient may only rely
on program participant self-certification of income if the other
permitted types of documentation are unobtainable when conducting
the initial or subsequent rent or occupancy charge calculations is
in effect until March 31, 2021. During this time, 24 CFR
578.103(a)(7)(iv) is waived to the extent necessary to allow
recipients or subrecipients to document annual income with the
written certification by the program participant of the amount of
income that the program participant is reasonably expected to
receive over the 3-month period following the evaluation, even if
source documents and third-party verification, are obtainable.
Nature of Requirement: 24 CFR 578.103(a)(7) requires the
recipient or subrecipient to keep records of the program
participant's income and the back-up documentation they relied on to
determine income. The regulation establishes an order of preference
for the type of documentation that recipients can rely upon. Only if
source documents and third-party verification are unobtainable is a
written certification from the program participant acceptable
documentation of income. HUD is waiving ``To the extent that source
documents and third-party verification are unobtainable'' in
578.103(a)(7)(iv).
Granted By: John Gibbs, Acting Assistant Secretary for Community
Planning and Development.
Date Granted: December 29, 2020.
Reason Waived: On September 30, 2020, HUD waived the requirement
to attempt to document that third-party verification of income was
unobtainable in order for recipients and subrecipients to a program
participant's own self-certification of income until December 31,
2020 because that documentation may be difficult to obtain as a
result of COVID-19 pandemic and housing program participants quickly
was important to prevent the spread of COVID-19. It continues to be
important to move people into their own housing quickly to enable
social distancing and prevent the spread of COVID-19; therefore,
waiving the requirement that source documents and third-party
documentation be unobtainable in order for recipients or
subrecipients to rely on a program participant's own certification
of their income.
Contact: Norm Suchar, Director, Office of Special Needs
Assistance Programs, Office of Community Planning and Development,
Department of Housing and Urban Development, 451 Seventh Street SW,
Room 7262, Washington, DC 20410, telephone number (202) 708-4300.
II. Regulatory Waivers Granted by the Office of Housing--Federal
Housing Administration (FHA)
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: New Hope Properties, Hopkinsville, Kentucky,
Project No. 083-35769.
Nature of Requirement: 24 CFR 200.73(c) requiring that ``not
less than five rental dwelling units [of an FHA insured multifamily
housing project] shall be on one site''. Section 3.1.CC of the 2016
MAP Guide permits a project with two or more non-contiguous parcels
of land when the parcels comprise one marketable, manageable real
estate entity. AGM Financial Services, Inc. applied for mortgage
insurance under the Section 221(d)(4) substantial rehabilitation
program. The proposed insured loan is estimated at $26,000,000. The
project will also be financed with $20,760,447 of equity from the
sale of 4% Low Income Housing Tax Credits (LIHTC), a $2,700,000 loan
from the Kentucky Housing Trust Fund, and a $500,000 Affordable
Housing Program loan. The Hendersonville Housing Authority (HHA)
plans to convert their public housing inventory to project-based
Section 8 rental housing through the Rental Assistance Demonstration
(RAD) program. New Hope Properties consists of 454 affordable
housing units in nine (9) developments with the nine referenced
developments being located on more than 24 parcels of land.
Granted By: Dana T. Wade, Assistant Secretary for Housing--
Federal Housing Commissioner.
Date Granted: November 25, 2020.
Reason Waived: The waiver will meet HUD's goal of preserving and
maintaining affordable rental housing for low-income families. The
project is a low risk to the Department due to its continuing
availability of project Section 8 rental housing through the Rental
Assistance Demonstration Program (RAD) assistance for most units.
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) 402-5693.
Regulation: 24 CFR 200.73(c).
Project/Activity: Friends/VVA Apartments, Columbus, Ohio,
Project No. 043-11259.
Nature of Requirement: 24 CFR 200.73(c) requiring that ``not
less than five rental dwelling units [of an FHA insured multifamily
housing project] shall be on one site.'' Section 3.1.CC of the 2016
MAP Guide permits a project with two or more non-contiguous parcels
of land when the parcels comprise one marketable, manageable real
estate entity. Orix Real Estate Capital, LLC (OREC) applied for
mortgage insurance under the Section 223(f) program for Friends/VVA
Apartments. Friends/VVA is a 16-unit complex owned by the nonprofit
developer Columbus Housing Partnership, Inc. and is in Columbus,
Ohio. It is comprised of two sites.
Granted By: Dana T. Wade, Assistant Secretary for Housing--
Federal Housing Commissioner.
Date Granted: October 28, 2020.
Reason Waived: The waiver will meet HUD's goal of preserving and
maintaining affordable rental housing for low-income families.
Eligible tenants are very low-income elderly or disabled. The
project is a low risk to the Department due to its continuing
availability of project Section 8 rental housing assistance for all
units.
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) 402-5693.
Regulation: 24 CFR 203.602.
Project/Activity: Delinquency Notices to Mortgagors.
Nature of Requirement: This is a temporary waiver of the
requirements in 24 CFR 203.602 for borrowers provided a COVID-19
[[Page 29800]]
Forbearance. This temporarily waives the requirement that a
mortgagee shall give notice to any mortgagor in default no later
than the end of the second month of any delinquency in payments
under the mortgage during the period of the COVID-19 Forbearance.
Granted By: Dana T. Wade, Assistant Secretary for Housing--
Federal Housing Commissioner.
Date Granted: December 21, 2020.
Reason Waived: This waiver has been issued to address potential
confusion and uncertainty surrounding mortgage servicing policy
changes enacted due to the Coronavirus Disease 2019 (COVID-19)
pandemic.
Applicability: This waiver is applicable to mortgages where the
Borrower is on an FHA COVID-19 Forbearance.
Contact: Elissa Saunders, Acting Director, Office of Single
Family Asset Management, Office of Housing, Department of Housing
and Urban Development, 451 Seventh Street SW, Room 9172, Washington,
DC 20410, telephone (202) 402-2378.
Regulation: 24 CFR 206.55(d)(1).
Project/Activity: The requirement that an Eligible Non-Borrowing
Spouse for a Home Equity Conversion Mortgage (HECM) must, within 90
days from the death of the last surviving borrower, establish legal
ownership or other ongoing legal right to remain for life in the
property securing the HECM.
Nature of Requirement: This is a partial waiver of the
requirement in 24 CFR 206.55(d)(1) that an Eligible Non-Borrowing
Spouse must, within 90 days from the death of the last surviving
borrower, establish legal ownership or other ongoing legal right to
remain for life in the property securing the HECM.
Granted By: Dana T. Wade, Assistant Secretary for Housing--
Federal Housing Commissioner.
Date Granted: October 1, 2020.
Reason Waived: This partial waiver has been issued due to public
health concerns around the spread of Coronavirus Disease 2019
(COVID-19), the declaration of a National Emergency and the
resulting closures of courthouses and government offices necessary
to meet the requirement of 24 CFR 206.55(d)(1).
Applicability: The partial waiver does not apply to any
provisions of 24 CFR 206.55 other than 24 CFR 206.55(d)(1). The
partial waiver is limited to a 12-month period from the date of
issuance.
Regulation: 24 CFR 219.220(b).
Project/Activity: Superbia Retirement Village, FHA Project
Number 117-SH006T, Oklahoma City, OK. The Foundation for Senior
Citizens, Incorporated (Owner) seeks approval to defer repayment of
the Flexible Subsidy Operating Assistance Loan on the subject
project.
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 Projects, 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 project.''
Granted By: Dana T. Wade, Assistant Secretary for Housing--
Federal Housing Commissioner.
Date Granted: November 19, 2020.
Reason Waived: The owner requested and was granted waiver of the
requirement to repay the Flexible Subsidy Operating Assistance Loan
in full when it became due. Deferring the loan payment will preserve
the affordable housing resource for an additional 35 years through
the execution and recordation of a Rental Use Agreement.
Contact: Crystal Martinez, Senior Account Executive, Office of
Housing, Department of Housing and Urban Development, 451 Seventh
Street SW, Room 6174, Washington, DC 20410, telephone (202) 402-
3718.
Regulation: 24 CFR 266.410(e).
Project/Activity: Housing Opportunities Commission of Montgomery
County (HOC) no project name or number listed.
Nature of Requirement: The 24 CFR 266.410(e), which requires
mortgages insured under the 542(c) Housing Finance Agency Risk
Sharing Program to be fully amortized over the term of the mortgage.
The waiver would permit HOC to use balloon loans that would have a
minimum term of 17 years and a maximum amortization period of 40
years for the projects identified in the ``Multifamily Pipeline
Projects''.
Granted By: Dana T. Wade, Assistant Secretary for Housing--
Federal Housing Commissioner.
Date Granted: November 19, 2020.
Reason Waived: The waiver was granted to allow Housing
Opportunities Commission of Montgomery County's (HOC) clients
additional financing options to their customers and to align HOC
business practices with industry standards, thus furthering the
creation of a preservation of affordable housing throughout
Maryland.
The regulatory waiver is subject to the following conditions:
1. The waiver is limited to ten (10) transactions and expires on
December 31, 2025.
2. Housing Opportunities Commission of Montgomery County 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
Housing Opportunities Commission of Montgomery County's Risk Sharing
Agreement.
5. In accordance with 24 CFR 266.200(d), the mortgage may not
exceed an amount supportable by the lower of the Section 8 or
comparable unassisted rents.
6. Projects must comply with Davis-Bacon labor standards in
accordance with 24 CFR 266.225.
7. Housing Opportunities Commission of Montgomery County must
comply with regulations stated in 24 CFR 266.210 for insured
advances or insurance upon completion transactions.
8. The loans exceeding $50 million require a separate waiver
request.
9. Occupancy is no less than 93 percent for previous 12 months
of the HFA loan to be refinanced.
10. No defaults in the last 12 months of the HFA loan to be
refinanced.
11. A 20-year affordable housing deed restriction placed on
title that conforms to the Section 542(c) statutory definition.
12. A Property Capital Needs Assessment (PCNA) must be
performed, and funds escrowed for all necessary repairs, and
reserves funded for future capital needs; and
13. For projects subsidized by Section 8 Housing Assistance
Payment (HAP) contracts:
i. 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
Housing Opportunities Commission of Montgomery County determines
that a project's excess funds (surplus cash) after project
operations, reserve requirements and permitted distributions are
met, Housing Opportunities Commission of Montgomery County 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 returned.
Regulation: 24 CFR 266.410(e).
Project/Activity: Illinois Housing Development Authority (IHDA)
no project name or number listed.
Nature of Requirement: The 24 CFR 266.410(e), which requires
mortgages insured under the 542(c) Housing Finance Agency Risk
Sharing Program to be fully amortized over the term of the mortgage.
The waiver would permit IHDA to use balloon loans that would have a
minimum term of 17 years and a maximum amortization period of 40
years for the projects identified in the ``Multifamily Pipeline
Projects''.
Granted By: Dana T. Wade, Assistant Secretary for Housing--
Federal Housing Commissioner.
Date Granted: October 21, 2020.
Reason Waived: The waiver was granted to allow Illinois Housing
Development Authority's (IHDA) clients additional financing options
to their customers and to align IHDA business practices with
industry standards, thus furthering the creation of a preservation
of affordable housing throughout Illinois.
The regulatory waiver is subject to the following conditions:
1. The waiver is limited to thirty (30) transactions and expires
on October 31, 2025.
2. Illinois Housing Development Authority 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.
[[Page 29801]]
4. All other requirements of 24 CFR 266.410--Mortgage Provision
remain applicable. The waiver is applicable only to loans made under
Illinois Housing Development Authority's Risk Sharing Agreement.
5. In accordance with 24 CFR 266.200(d), the mortgage may not
exceed an amount supportable by the lower of the Section 8 or
comparable unassisted rents.
6. Projects must comply with Davis-Bacon labor standards in
accordance with 24 CFR 266.225.
7. Illinois Housing Development Authority must comply with
regulations stated in 24 CFR 266.210 for insured advances or
insurance upon completion transactions.
8. The loans exceeding $50 million require a separate waiver
request.
9. Occupancy is no less than 93 percent for previous 12 months
of the HFA loan to be refinanced.
10. No defaults in the last 12 months of the HA loan to be
refinanced.
11. A 20-year affordable housing deed restriction placed on
title that conforms to the Section 542(c) statutory definition.
12. A Property Capital Needs Assessment (PCNA) must be
performed, and funds escrowed for all necessary repairs, and
reserves funded for future capital needs; and
13. For projects subsidized by Section 8 Housing Assistance
Payment (HAP) contracts:
1. 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
Illinois Housing Development Authority determines that a project's
excess funds (surplus cash) after project operations, reserve
requirements and permitted distributions are met, Illinois Housing
Development Authority 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 returned.
Regulation: 24 CFR 3282.14(b).
Project/Activity: Manufactured Housing Production, Nationwide.
Nature of Requirement: The Office of Manufactured Housing
Programs (OMHP) received several individual requests through the
Alternative Construction (AC) process outlined in the Code of
Federal Regulations (CFR) at 24 CFR 3282.14. This regulation
requires each manufacturer to submit a request for Alternative
Construction consideration. Rather, OMHP provided an Alternative
Construction approval that may be used by any manufacturer
experiencing supply chain issues for 25 ampere circuit breakers with
code compliant water heater appliances.
Granted By: Dana T. Wade, Assistant Secretary for Housing--
Federal Housing.
Date Granted: December 18, 2020.
Reason Waived: In order to resolve this matter for the whole
industry in an expedient manner while protecting the health and
safety of consumers and maintaining durability of the homes, a
regulatory waiver of 24 CFR 3282.14(b), Request for Alternative
Construction, provides resolution for all affected manufacturers.
This temporary regulatory waiver of 24 CFR 3282.14(b) allows OMHP to
issue the industry-wide AC Letter that allows 25 ampere circuit
breakers with code compliant water heater appliances to be used for
the construction of HUD Code-compliant manufactured homes through
June 30, 2021.
Contact: Jason McJury, Deputy Administrator, Office of
Manufactured Housing Programs, Office of Housing, Department of
Housing and Urban Development, 451 Seventh Street SW, Room 9170,
Washington, DC 20410, telephone (202) 402-2480.
III. Regulatory Waivers Granted by the Office of Public and Indian
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 982.517; 24 CFR 983.301(f)(2)(ii).
Project/Activity: Housing Authority of the City of San
Buenaventura (HACSB) requested a project-specific utility allowance
for a Project Based Voucher (PBV) project.
Nature of Requirement: For the Housing Choice Voucher (HCV)
program, 24 CFR 982.517 requires that a PHA maintain a utility
allowance schedule for all tenant-paid utilities, and the utility
allowance schedule must be determine based on the typical cost of
utilities and services paid by energy-conserving households that
occupy units of similar size and type in the same locality. For the
PBV program, 24 CFR 983.301(f)(2)(ii) requires that PHAs may not
establish or apply different utility allowance amounts for the PBV
program, and that the same PHA utility allowance schedule applies to
both the tenant-based and PBV programs.
Granted By: R. Hunter Kurtz, Assistant Secretary for Public and
Indian Housing.
Date Granted: November 18, 2020.
Reason Waived: The PHA requested a waiver to establish a site-
specific utility allowance for a PBV project and provided
justification for the request. The PHA submitted an analysis of
utility rates for the community and consumption data of project
residents. Due to the energy efficient upgrades at the project, the
community consumption estimates are significantly higher than the
consumption expected at the site. The PHA demonstrated good cause
that the utility allowance provided under the HCV program would
discourage conservation and ultimately lead to inefficient use of
HAP funds at the PBV project. Thus, pursuant to the waiver authority
provided at 24 CFR 5.110, HUD determined that there was good cause
to waive 24 CFR 983.301(f)(2)(ii) and 24 CFR 982.5 17.
Contact: Danielle Bastarache, Deputy Assistant Secretary for
Office of Public Housing and Voucher Programs, Office of Public and
Indian Housing, Department of Housing and Urban Development, 451
Seventh Street SW, Room 4204, Washington, DC 20410, telephone (202)
402-5264.
Regulation: 24 CFR 983.3.
Project/Activity: The New York City Housing Authority (NYCHA) is
undertaking a large-scale preservation of 1,718 units across sixteen
(16) project sites in Manhattan, commonly known as the Permanent
Affordability Commitment Together (PACT) Manhattan Bundle (the
``Redevelopment''). For the purposes of determining the number of
Housing Assistance Payments (HAP) contracts required to be used for
the Redevelopment, NYCHA requested the use of an alternative
definition of ``project'' in order to be operationally efficient,
reduce administrative burden, and overcome potential confusion for
property management.
Nature of Requirement: ``Project'' is defined in PBV regulations
at 24 CFR 983.3 as a single building, multiple contiguous buildings,
or multiple buildings on contiguous parcels of land. Contiguous in
the definition of project includes ``adjacent to,'' and touching
along a boundary or a point. PHAs may define a PBV project in their
administrative plan within the bounds of the regulatory definition.
Granted By: R. Hunter Kurtz, Assistant Secretary, Public and
Indian Housing.
Date Granted: November 23, 2020.
Reason Waived: NYCHA proposed an alternative definition of
``project'' that would group any buildings within a radius of
approximately eight blocks for the purpose of placing them under
individual HAP Contracts. Due to the nature of NYCHA's public
housing developments, which often include multiple buildings over
several blocks, the subject regulations would require NYCHA to enter
into multiple HAP Contracts for each public housing project and/or
building undergoing conversion. For the Redevelopment, without the
regulatory waiver, NYCHA would be required to execute 25 HAP
Contracts (RAD and non-RAD PBV combined), despite several of the
buildings being closely clustered and currently administered as a
single project under the public housing program. Through the waiver,
NYCHA would reduce the number of overall HAP contracts for the
Redevelopment from twenty-five to thirteen RAD and non-RAD PBV HAP
Contracts. In addition, due to the magnitude of the NYCHA Section 8
program, the proposed grouping would save an estimated 11,000 hours
of staff time and cost during construction, 540 hours on monthly
administration, and 720 hours on additional annual administration.
Therefore, HUD determined good cause to waive 24 CFR 983.3 so that
NYCHA may use the proposed definition of project for the PACT
Manhattan Bundle that includes the 16 sites and 1,718 units
identified in the waiver request.
Contact: Danielle Bastarache, Deputy Assistant Secretary, Office
of Public Housing and Voucher Programs, Office of Public and Indian
Housing, Room 4204, Department of Housing and Urban Development, 451
Seventh Street SW, Room 4204, Washington, DC 20410, telephone (202)
402-5264.
[[Page 29802]]
Regulation: 24 CFR 983.51(b)(1).
Project/Activity: Ark-Tex Council of Governments (ATCOG), a
partner voucher agency, requested a waiver to award PBVs to a Public
Housing project that repositioned through a Section 22 Streamlined
Voluntary Conversion (SVC) action approved by HUD on June 24, 2020.
Nature of Requirement: 24 CFR 983.51(b)(1) requires a Public
Housing Agency (PHA) to award Project-Based Vouchers (PBVs) via a
competitive selection.
Granted By: R. Hunter Kurtz, Assistant Secretary, Public and
Indian Housing.
Date Granted: November 18, 2020.
Reason Waived: The Mount Pleasant Housing Authority (MPHA) is
the Public Housing-only agency that received the SVC approval for
the 145 units, which comprise MPHA's entire Public Housing
portfolio. Under the SVC approval, MPHA is required to ensure that
the 145 units at the property are developed and operated as
affordable housing for low-income families with incomes at or below
80 percent of area median income for not less than 30 years. To
accomplish this, MPHA proposed to place the property under a PBV
Housing Assistance Payments (HAP) contract. However, since ATCOG
does not have an ownership interest in the project, the Housing
Opportunity Through Modernization Act requirements for non-
competitive selection, as detailed in PIH 2017-21, Attachment L, are
not met. ATCOG serves nine northeast Texas counties and one
southwest Arkansas county, covering over 6,400 square miles. Based
on this, ATCOG expected that there is a strong likelihood that the
PBVs could be awarded to a project other than MPHA's converted
project. Thus, HUD determined good cause to waive 24 CFR
983.51(b)(1) so that ATCOG may select MPHA's Section 22 SVC-approved
project for an award of PBVs without following a competitive
process.
Contact: Danielle Bastarache, Deputy Assistant Secretary for
Office of Public Housing and Voucher Programs, Office of Public and
Indian Housing, Department of Housing and Urban Development, 451
Seventh Street SW, Room 4204, Washington, DC 20410, telephone (202)
402-5264.
Regulation: 24 CFR 983.152(c).
Project/Activity: Massachusetts Department of Housing and
Community Development (MDHCD) requested to allow environmental
remediation activities required by the Massachusetts Department of
Environmental Protection (MDEP) commence at a project prior to an
Agreement to Enter into a Housing Assistance Payment (AHAP)
contract.
Nature of Requirement: 24 CFR 983.152(c) requires that a public
housing agency (PHA) may not enter into an AHAP contract if
construction or rehabilitation has commenced after proposal
submission.
Granted By: R. Hunter Kurtz, Assistant Secretary, Public and
Indian Housing.
Date Granted: November 18, 2020.
Reason Waived: The Haywood Homes project consists of
construction of 55 new housing units for Section 18 disposition. As
part of the disposition review process and planning activities for
the project, Newton Housing Authority (NHA) discovered that the
property contains a concentration of mercury that exceeds the
reporting threshold under the Massachusetts Contingency Plan and the
project was subject to required reporting and remediation. The scope
of the environmental remediation and related work is specified in an
engineering report dated May 20, 2020. NHA has been unable to enter
into an AHAP with the project owner because various key proposed
financing awards and commitments are still ongoing for the subsidy
layering review (SLR). Project-based voucher (PBV) program
regulations require the completion of an SLR prior to AHAP execution
(24 CFR 983.55(b)). Therefore, HUD determined good cause to waive 24
CFR 983.152(c) so that the work identified in the May 20, 2020
engineering report may be performed, prior to entering into an AHAP
for the Haywood Homes project.
Contact: Danielle Bastarache, Deputy Assistant Secretary for
Office of Public Housing and Voucher Programs, Office of Public and
Indian Housing, Department of Housing and Urban Development, 451
Seventh Street SW, Room 4204, Washington, DC 20410, telephone (202)
402-5264.
Regulation: 24 CFR 983.152(c).
Project/Activity: Cuyahoga Metropolitan Housing Authority
requested to allow their development partners to commence certain
remediation activities prior to an Agreement to Enter into a Housing
Assistance Payment (AHAP) contract.
Nature of Requirement: 24 CFR 983.152(c) requires that a public
housing agency (PHA) may not enter into an AHAP contract if
construction or rehabilitation has commenced after proposal
submission.
Granted By: R. Hunter Kurtz, Assistant Secretary, Public and
Indian Housing.
Date Granted: November 9, 2020.
Reason Waived: On January 9, 2020, the CMHA's Board of
Commissioners authorized the award of 60 PBVs for the redevelopment
of a project, known as the Blanket Mills project. On March 29, 2020,
a severe storm partially collapsed an adjoining building that now
needs to be demolished (Piano building), and according to an
engineering report dated April 2, 2020, the main building (Blanket
Mills building) needs to be preserved/restored and made weather
tight until anticipated restoration work can begin. CMHA has been
unable to enter into an AHAP with the project owner because various
key proposed financing awards and commitments are still ongoing for
the subsidy layering review (SLR). Project-based voucher (PBV)
program regulations require the completion of an SLR prior to AHAP
execution (24 CFR 983.55(b)). Therefore, HUD determined good cause
to waive 24 CFR 983.152(c) so that the work identified in the April
2, 2020 engineering report may be performed, prior to CMHA entering
into an AHAP for the rehabilitation of the Blanket Mills main
building.
Contact: Danielle Bastarache, Deputy Assistant Secretary for
Office of Public Housing and Voucher Programs, Office of Public and
Indian Housing, Department of Housing and Urban Development, 451 7th
Street SW, Room 4204, Washington, DC 20410, telephone (202) 402-
5264.
HUD's Summary of CARES Act Notices Providing Waivers: 10/1/20 to 12/31/
20
Authority: Coronavirus Aid, Relief, and Economic Security Act
(CARES Act) and regulatory waiver authority is also provided by 24
CFR 5.110 and 91.600.
CARES Act Waiver: PIH Notice 2020-13, HCV-4; 24 CFR 982.305(c).
Description: The Southern Nevada Regional Housing Authority
(SNRHA) requested a waiver for five cases in which the HAP Contract
was executed more than 120 days after the lease start date (the
regulatory requirement is 60 days and the alternative requirement in
the CARES Act Waiver Notice is 120 days). The delay was due to
staffing issues and unforeseen circumstances related to COVID-19.
Authority: 24 CFR 982.305(c)(4) states that any Housing
Assistance Payment (HAP) Contract executed more than 60 days after
the lease term begins will be void and the public housing agency
(PHA) may not pay any HAP to the owner. PIH Notice 2020-13: COVID-19
Statutory and Regulatory Waivers and Alternative Requirements for
the Public Housing, Housing Choice Voucher, Indian Housing Block
Grant and Indian Community Development Block Grant programs,
Suspension of Public Housing Assessment System and Section Eight
Management Assessment Program, Revision 1, provided an alternative
requirement for 24 CFR 982.305(c), provides an alternative
requirement that HAP Contracts must be executed within 120 days,
instead of 60 days, to provide additional time due to the impact of
the coronavirus on PHA operations.
Granted By: R. Hunter Kurtz, Assistant Secretary, Public and
Indian Housing.
Date Granted: November 18, 2020.
Purpose/Reason Waived: SNRHA requested a waiver for five cases
in which the HAP Contract was executed more than 120 days after the
lease start date due to staffing issues and unforeseen circumstances
related to COVID-19. In the waiver request, SNRHA provided specific
details regarding the circumstances of the delay in executing the
HAP Contract for each case. SNRHA also provided details regarding
their operations during COVID-19, stating that the agency is
operating at a 68 percent staffing rate and 15 employees were absent
due to COVID-19 exposure or diagnosis. The information SNRHA
submitted to the Department provided justification for the request.
HUD determined that there was good cause to waive 24 CFR
982.305(c)(4) for the five cases listed in the PHA's waiver request
based on the specific data provided on the agency's staffing
challenges related to COVID-19. This waiver applied only to the five
cases listed in the request and did not extend to future cases.
Contact: Danielle Bastarache, Deputy Assistant Secretary, Office
of Public Housing and Voucher Programs, Room 4204, Department of
Housing and Urban Development.
[FR Doc. 2021-11616 Filed 6-2-21; 8:45 am]
BILLING CODE 4210-67-P
