[Federal Register Volume 59, Number 94 (Tuesday, May 17, 1994)]
[Unknown Section]
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From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-11899]


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[Federal Register: May 17, 1994]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Office of the Secretary
[Docket No. N-94-3038; FR-2736-N-12]

 

Regulatory Waiver Requests Granted

AGENCY: Office of the Secretary, HUD.

ACTION: Public Notice of the Granting of Regulatory Waivers.

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SUMMARY: Under section 106 of the Department of Housing and Urban 
Development Reform Act of 1989 (Reform Act), the Department is required 
to make public all approval actions taken on waivers of regulations. 
This Notice provides notification of waivers granted during the period 
from October 1 to December 31, 1993.

FOR FURTHER INFORMATION CONTACT: For general information about this 
Notice, contact Myra L. Ransick, Assistant General Counsel for 
Regulations, Room 10276, Department of Housing and Urban Development, 
451 Seventh Street, SW, Washington, DC 20410; (202) 708-3055, (TDD) 
(202) 708-3259. (These are not toll-free numbers.) For information 
concerning a particular waiver action, contact the person whose name 
and address is set out for the particular item in the accompanying list 
of waiver-grant actions.

SUPPLEMENTARY INFORMATION: Section 106 of the Reform Act amended 
Section 7 of the Department of Housing and Urban Development Act (42 
U.S.C. 3535(q)(3)) to provide:
    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 rank 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 the Department 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;
    e. State how additional information about a particular waiver grant 
action may be obtained.
    Today's document notifies the public of HUD's waiver-grant activity 
from October 1 to December 30, 1993. The next Notice, which will be 
published in the near future, will cover the period from January 1, 
through March 31, 1994.
    For ease of reference, waiver requests granted by departmental 
officials authorized to grant waivers are listed in a sequence keyed to 
the section number of the HUD regulation involved in the waiver action. 
For example, a waiver-grant action involving exercise of authority 
under 24 CFR 24.200 (involving the waiver of a provision in part 24) 
would come early in the sequence, while waivers in the Section 8 and 
Section 202 programs (24 CFR chapter VIII) would be among the last 
matters listed. 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 in Title 24 that 
is being waived as part of the waiver-grant action. (For example, a 
waiver of both Sec. 811.105(b) and Sec. 811.107(a) would appear 
sequentially in the listing under Sec. 811.105(b).) Waiver-grant 
actions involving the same initial regulatory citation are in time 
sequence beginning with the earliest-dated waiver-grant action.
    Should the Department received additional reports of waiver actions 
taken during the period covered by this report before the next report 
is published, the next updated report will include these earlier 
actions.
    Accordingly, information about approved waiver requests pertaining 
to regulations of the Department is provided in the Appendix to this 
Notice.

    Dated: May 6, 1994.
Henry G. Cisneros,
Secretary.

Appendix--Listing of Waivers of Regulatory Requirements Granted by 
Officers of the Department of Housing and Urban Development October 1, 
1993 Through December 31, 1993

    Note to the Reader: The person to be contacted for additional 
information about these waivers is:

Robert J. Coyle, Director, Title I Insurance Division, Department of 
Housing and Urban Development, 490 L'Enfant Plaza East, Suite 3214, 
Washington, DC 20024, Telephone 202-755-7400

    1. Regulation: 24 CFR 201.23(a).
    Project/Activity: Title I manufactured home loan to provide 
replacement housing for victims of the flooding along the 
Mississippi River.
    Nature of Requirement: Section 201.23(a) of the Title I 
regulations permits manufactured home purchasers to use borrowed 
funds for the downpayment, provided that the loan is secured by 
property or collateral other than the manufactured home.
    Granted By: Nicolas P. Retsinas, Assistant Secretary of Housing-
Federal Housing Commissioner.
    Date Granted: October 1, 1993.
    Reason Waived: As a result of flooding along the Mississippi 
River and its tributaries, the borrowers' manufactured home was 
destroyed. The Federal Emergency Management Agency certified the 
borrowers as being eligible for an unsecured Small Business 
Administration loan. The proceeds of the SBA loan were used to pay 
off the outstanding loan on their manufactured home, and left enough 
money to make a downpayment on a new manufactured home, to be 
financed with a Title I loan. Because of the urgent need to assist 
families displaced by the Mississippi River flooding, HUD agreed to 
waive the limitation on using an unsecured loan for the downpayment.

    2. Regulation: 24 CFR 201.23(a).
    Project/Activity: Title I manufactured home loan to provide 
replacement housing for victims of the flooding along the 
Mississippi River.
    Nature of Requirement: Section 201.23(a) of the Title I 
regulations permits manufactured home purchasers to use borrowed 
funds for the downpayment, provided that the loan is secured by 
property or collateral other than the manufactured home.
    Granted By: Nicolas P. Retsinas, Assistant Secretary of Housing-
Federal Housing Commissioner.
    Date Granted: November 12, 1993.
    Reason Waived: As a result of flooding along the Mississippi 
River and its tributaries, the borrowers' manufactured home was 
destroyed. The Federal Emergency Management Agency certified the 
borrowers as being eligible for an unsecured Small Business 
Administration loan. The proceeds of the SBA loan were used to pay 
off the outstanding loan on their manufactured home, and left enough 
money to make a downpayment on a new manufactured home, to be 
financed with a Title I loan. Because of the urgent need to assist 
families displaced by the Mississippi River flooding, HUD agreed to 
waive the limitation on using an unsecured loan for the downpayment.

    Note to Reader: The person to be contacted for additional 
information about these waivers is:

Morris E. Carter, Director, Single Family Development Division, 
Office of Insured Single Family Housing, U.S. Department of Housing 
and Urban Development, 451 Seventh Street, SW., Washington, DC 
20410, Phone: (202) 708-2700, TDD: (202) 708-4594.

    3-4. Regulation: 24 CFR 203.49(c).
    Project/Activity: CTX Mortgage Company and Adjustable Rate 
Mortgages.
    Nature of Requirement: The regulation, cited above, requires 
that interest rate adjustments must occur on an annual basis, except 
that the first adjustment may occur no sooner than 12 months and no 
later than 18 months from the due date of the mortgagor's first 
monthly payment.
    Granted By: Nicolas P. Retsinas, Assistant Secretary for 
Housing--Federal Housing Commissioner.
    Date Granted: December 9, 1993.
    Reason Waived: CTX Mortgage Company requested a waiver in order 
to extend the initial adjustment date on one loan in order to make 
it eligible for placement in a GNMA pool. Ineligibility for the pool 
would result in a financial hardship to the mortgagee. Extension of 
the date would not have an adverse effect on the mortgagor. 
Therefore, to facilitate the continuing participation of this 
mortgagee in the FHA Adjustable Rate Mortgage Program, a waiver was 
granted conditioned on the mortgagee obtaining written consent from 
the mortgagors to the modification of the initial adjustment date.

    Note to Reader: The person to be contacted for additional 
information about these waivers is:

Janice D. Rattley, Director, Office of Construction, Rehabilitation 
and Maintenance, Office of Public and Indian Housing, Department of 
Housing and Urban Development, 451 Seventh Street, SW., Washington 
DC 20410, Phone: (202) 708-1800 (This is not a toll-free number)

    5. Regulation: 24 CFR 941.404, 502, and 503.
    Project/Activity: Public Housing Development, Project Number VA 
7-28, Richmond Redevelopment and Housing Authority (RRDH).
    Nature of Requirement: Requires prior HUD review and approval of 
design documents, construction contracts, etc.
    Granted By: JOseph. Shuldiner, Assistant Secretary for Public 
and Indian Housing.
    Date Granted: November 4, 1993.
    Reason Waived: To allow the RRDH to acquire HUD-owned properties 
within 60 days of an offer to purchase requirement of the Housing 
Office of Property Disposition.

    Note to Reader: The person to be contacted for additional 
information about these waivers is:

Mr. Dom Nessi, Director, Office of Nature American Programs, 
Department of Housing and Urban Development, 451 Seventh Street, 
SW., Washington, DC 20410, Phone: (202) 708-1015, TDD: (202) 708-
0850 (These are not toll-free numbers)

    6. Regulation: 24 CFR 905.325.
    Project/Activity: Establishment of ceiling rents for the Oneida 
Housing Authority.
    Nature of the Requirement: Waiver of the Regulation cited above 
is required to allow establishment of ceiling rents for their Rental 
Program.
    Granted By: Joseph Schuldiner, Assistant Secretary.
    Date Granted: October 20, 1993.
    Reason Waived: This waiver was requested and granted to allow 
the Oneida Housing Authority to establish ceiling rents for their 
rental program in accordance with PIH Notice 89-21, which provides 
for the establishment of ceiling rents in a rental Indian housing 
program.

    Note to Reader: The person to be contacted for additional 
information about these waivers is:

John Comerford, Director, Financial Management Division, Office of 
Assisted Housing, Office of Public and Indian Housing, Department of 
Housing and Urban Development, 451 Seventh Street, SW., Washington, 
DC 20410, Phone: (202) 708-1872, TDD: (202) 708-0850 (These are not 
toll-free numbers)

    7. Regulation: 24 CFR 990.110.
    Project/Activity: Breckenridge Housing Authority, MN In 
determining the operating subsidy eligibility, a request was made to 
extend the deadline for submission of a request for adjustment to 
the Allowable Expense Level.
    Nature of Requirement: The Final Rule for PFS Allowable Expense 
Level appeals imposed a sixty day deadline on submission of request 
for adjustment.
    Granted By: Joseph Shuldiner, Assistant Secretary.
    Date Granted: October 4, 1993.
    Reason Waiver: The Housing Authority Fee Accountant completed 
the appeal and mailed it to the Housing Authority, however, the 
package was not received by the Housing Authority. This waiver was 
granted based on this circumstance and the Housing Agency's 
eligibility for an adjustment.

    8. Regulation: 24 CFR 990.104.
    Project/Activity: Montgomery Housing Authority, AL In 
determining the operating subsidy eligibility, a request was made 
for funding for six units approved for economic self-sufficiency and 
anti-drug programs.
    Nature of Requirement: The operating subsidy calculation 
excludes funding for units removed from the dwelling rental 
inventory.
    Granted By: Joseph Shuldiner, Assistant Secretary.
    Date Granted: October 7, 1993.
    Reason Wavier: To allow additional subsidy for units approved 
for non-dwelling use to promote economic self-sufficiency services 
and anti-drug programs pending publication of a final rule 
implementing this change to the regulation.

    9. Regulation: 24 CFR 990.109(b)(3)(iv).
    Project/Activity: A request was made by the Breckenridge, MN 
Housing and Redevelopment Authority to use its actual occupancy rate 
of 76% in determining its operating subsidy eligibility for its 
fiscal year ending 3/31/93 and its actual occupancy rate of 70% for 
its fiscal year ending 3/31/94.
    Nature of Requirement: A Public House Agency that has completed 
a Comprehensive Occupancy Plan (COP) without achieving a 97% 
occupancy percentage or having an average of five or fewer vacant 
units must use a projected occupancy rate of 97%.
    Granted By: Joseph Shuldiner, Assistant Secretary.
    Date Granted: October 18, 1993.
    Reason Waived: The Breckenridge Housing and Redevelopment 
Authority is a small Authority with 78 units of elderly housing. It 
has been experiencing a vacancy problem for the past several years 
during which it has pursued many vacancy reduction strategies 
without success. Previous waivers have been issued permitting the 
Authority to use a lower occupancy percentage.

    10. Regulation: 24 CFR 990.104.
    Project/Activity: Marquette Housing Commission, MI In 
determining the operating subsidy eligibility, a request was made 
for funding for two units approved for economic self-sufficiency and 
anti-drug programs.
    Nature of Requirement: The operating subsidy calculation 
excludes funding for units removed from the dwelling rental 
inventory.
    Granted By: Joseph Shuldiner, Assistant Secretary.
    Date Granted: October 20, 1993.
    Reason Waived: To allow additional subsidy for units approved 
for non-dwelling use to promote economic self-sufficiency services 
and anti-drug programs pending publication of a final rule 
implementing this change to the regulation.

    11. Regulation: 24 CFR 990.104.
    Project/Activity: Richmond Redevelopment and Housing Authority, 
MI. In determining the operating subsidy eligibility, a request was 
made for authority to approve funding for twenty units approved for 
an anti-drug program.
    Nature of Requirement: The operating subsidy calculation 
excludes funding for units removed from the dwelling rental 
inventory.
    Granted By: Joseph Shuldiner, Assistant Secretary.
    Date Granted: October 22, 1993.
    Reason Waived: To allow additional subsidy for units approved 
for non-dwelling use to promote economic self-sufficiency services 
and anti-drug program pending publication of a final rule 
implementing this change to the regulation.

    12. Regulation: 24 CFR 990.104.
    Project/Activity: Muskegon Heights Housing Authority, MI. In 
determining the operating subsidy eligibility, a request was made 
for funding for one unit approved for an anti-drug program.
    Nature of Requirement: The operating subsidy calculation 
excludes funding for units removed from the dwelling rental 
inventory.
    Granted By: Joseph Shuldiner, Assistant Secretary.
    Date Granted: November 17, 1993.
    Reason Waived: To allow additional subsidy for units approved 
for non-dwelling use to promote economic self-sufficiency services 
and anti-drug program pending publication of a final rule 
implementing this change to the regulation.

    13. Regulation: 24 CFR 990.104.
    Project/Activity: Charleston Housing Authority, WV. In 
determining the operating subsidy eligibility, a request was made 
for funding for eight units approved for an anti-drug program.
    Nature of Requirement: The operating subsidy calculation 
excludes funding for units removed from the dwelling rental 
inventory.
    Granted By: Joseph Shuldiner, Assistant Secretary.
    Date Granted: November 24, 1993.
    Reason Waived: To allow additional subsidy for units approved 
for non-dwelling use to promote economic self-sufficiency services 
and anti-drug program pending publication of a final rule 
implementing this change to the regulation.

    14. Regulation: 24 CFR 990.118(d).
    Project/Activity: Cuyahoga Metropolitan Housing Authority, OH. 
In determining operating subsidy eligibility, a request was made to 
terminate the existing Comprehensive Occupancy Plan as of December 
31, 1992.
    Nature of Requirement: The regulation cites limited conditions 
under which the timeframe for a Comprehensive Occupancy Plan can be 
changed.
    Granted By: Joseph Shuldiner, Assistant Secretary.
    Date Granted: December 7, 1993.
    Reason Waived: The Housing Authority's thirteen year 
Comprehensive Occupancy Plan (COP) was the longest term of any COP 
for a Housing Authority. The relative inflexibility of the COP has 
caused the Plan to become obsolete over time. Recognition has not 
been given to changes in modernization schedules, to new funding 
approaches such as the Comprehensive Grant formula and to new 
programs such as the Urban Revitalization Demonstration and Vacancy 
Reduction Programs. The Authority would be better off without a COP 
because it could then use an occupancy rate based on 97% reduced by 
the number of units that are in a funded, on-schedule modernization 
program. Since it is very difficult for a large, troubled authority 
to adhere to a long term plan with fixed occupancy goals, approval 
was granted to terminate the COP and use an occupancy percentage 
adjusted for units in funded, on-schedule modernization programs.

    15. Regulation: 24 CFR 990.109(b)(3)(iv).
    Project/Activity: A request was made by the Gilbert, MN Housing 
and Redevelopment Authority to use its actual occupancy rate of 88% 
in determining its operating subsidy eligibility for its fiscal year 
ending 6/30/94.
    Nature of Requirement: A Housing Authority that has completed a 
Comprehensive Occupancy Plan (COP) without achieving a 97% occupancy 
percentage or having an average of five or fewer vacant units must 
use a projected occupancy rate of 97%.
    Granted By: Joseph Shuldiner, Assistant Secretary.
    Date Granted: December 17, 1993.
    Reason Waived: The Gilbert Housing and Redevelopment Authority 
is a small Authority with 49 units. It has been experiencing a 
vacancy problem for the past several years during which it has 
pursued many vacancy reduction strategies without success. Previous 
waivers have been issued permitting the Authority to use a lower 
occupancy percentage.

    16. Regulation: 24 CFR 990.109(b)(3)(iv).
    Project/Activity: Indianapolis Housing Authority, IN. In 
determining operating subsidy eligibility, a request was made to 
allow a team comprised of Headquarters, Regional and Field Office 
staff to consult with the Housing Authority in order to develop a 
suitable approach to the vacancy problems of the Housing Authority.
    Nature of Requirement: The regulation requires a Low Occupancy 
PHA without an approved Comprehensive Occupancy Plan (COP) to use a 
projected occupancy percentage of 97%.
    Granted By: Joseph Shuldiner, Assistant Secretary.
    Date Granted: December 20, 1993.
    Reason Waived: The Department has found that large troubled 
Housing Authorities often have vacancy problems of such a magnitude 
and complexity that long term planning is very difficult. COPs for 
such authorities quickly become obsolete. Agreement was reached on 
an alternative approach to a COP in which the Housing Authority uses 
a lower occupancy percentage and at least 60% of the resulting 
increase in operating subsidy is to be used for specific, 
identifiable actions to increase occupancy. The Housing Authority is 
responsible for developing a vacancy reduction strategy which will 
be approved by HUD. HUD will also conduct an on-site review in 
November 1994 to review progress. Based on this agreement an 
occupancy percentage of 73% was approved for the fiscal year ending 
12/31/93 and 75% for the fiscal year ending 12/31/94.

    17. Regulation: 24 CFR 990.104.
    Project/Activity: York Housing Authority, PA. In determining the 
operating subsidy eligibility, a request was made for funding for 
one unit approved for an anti-drug program.
    Nature of Requirement: The operating subsidy calculation 
excludes funding for units removed from the dwelling rental 
inventory.
    Granted By: Joseph Shuldiner, Assistant Secretary.
    Date Granted: December 22, 1993.
    Reason Waived: To allow additional subsidy for units approved 
for non-dwelling use to promote economic self-sufficiency services 
and anti-drug programs pending publication of a final rule 
implementing this change to the regulation.

    18. Regulation: 24 CFR 990.104.
    Project/Activity: Arkadelphia Housing Authority, AR. In 
determining the operating subsidy eligibility, a request was made 
for funding for one unit approved for an anti-drug program.
    Nature of Requirement: The operating subsidy calculation 
excludes funding for units removed from the dwelling rental 
inventory.
    Granted By: Joseph Shuldiner, Assistant Secretary.
    Date Granted: December 22, 1993.
    Reason Waived: To allow additional subsidy for units approved 
for non-dwelling use to promote economic self-sufficiency services 
and anti-drug programs pending publication of a final rule 
implementing this change to the regulation.

    19. Regulation: 24 CFR 990.104.
    Project/Activity: Texarkana Housing Authority, AR. In 
determining the operating subsidy eligibility, a request was made 
for funding for one unit approved for an anti-drug program.
    Nature of Requirement: The operating subsidy calculation 
excludes funding for units removed from the dwelling rental 
inventory.
    Granted By: Joseph Shuldiner, Assistant Secretary.
    Date Granted: December 28, 1993.
    Reason Waived: To allow additional subsidy for units approved 
for non-dwelling use to promote economic self-sufficiency services 
and anti-drug programs pending publication of a final rule 
implementing this change to the regulation.

    20. Regulation: 24 CFR 990.104.
    Project/Activity: Fort Worth Housing Authority, TX. In 
determining the operating subsidy eligibility, a request was made 
for funding for one unit approved for anti-drug programs.
    Nature of Requirement: The operating subsidy calculation 
excludes funding for units removed from the dwelling rental 
inventory.
    Granted By: Joseph Shuldiner, Assistant Secretary.
    Date Granted: December 28, 1993.
    Reason Waived: To allow additional subsidy for units approved 
for non-dwelling use to promote economic self-sufficiency services 
and anti-drug programs pending publication of a final rule 
implementing this change to the regulation.

    Note to Reader: The person to be contacted for additional 
information about these waivers is:

Gary Van Buskirk, Director, Homeownership Division, Office of 
Resident Initiatives, Department of Housing and Urban Development, 
451 Seventh Street, SW., Room 4112, Washington, DC 20410, Phone: 
(202) 708-4233 (This is not a toll-free number)

    21. Regulation: 24 CFR 904 Subpart B (Turnkey III Homeownership 
Opportunity Program) and Corresponding Provisions of the Turnkey III 
Handbook (7495.3).
    Project/Activity: Dayton, Ohio Metropolitan Housing Authority, 
Turnkey III Homeownership Opportunity Programs Projects OH5-22, 5-
25, 5-27, 5-29, 5-30A, 5-30B, and 5-33.
    Nature of Requirement: 24 CFR 904 Subpart B and the Turnkey III 
Handbook require that upon sale of a homeownership unit that the 
monies received be remitted to HUD to reduce the capital 
indebtedness on the project. Excess Residual Receipts and or 
Operating Reserves are also to be remitted to HUD.
    Granted By: Joseph Shuldiner, Assistant Secretary for Public and 
Indian Housing.
    Date Granted: October 20, 1993.
    Reason Waived: Project debt forgiveness was authorized by the 
provisions of Section 3004 of the Housing and Community Development 
Reconciliation. Amendments of 1985, (the Amendments) P.L. 99-272 
(April 7, 1986) which amends Section 4 of the United States Housing 
Act of 1937. The Amendments authorized the Secretary of HUD to 
forgive outstanding principal and interest on loans made by the 
Secretary to Public Housing Agencies (PHAs)/Indian Housing 
Authorities (IHAs) and to cancel the terms of any contract with 
respect to repayment.
    Turnkey III debt forgiveness, as authorized above, is 
implemented according to existing HUD procedures.
    The housing authority has shown good cause and demonstrated 
compliance with all applicable regulatory requirements for debt 
forgiveness.

    22. Regulation: 24 CFR 904 Subpart B (Turnkey III Homeownership 
Opportunity Program) and Corresponding Provisions of the Turnkey III 
Handbook (7495.3).
    Project/Activity: Gilbert, Minnesota Housing and Redevelopment 
Authority, Turnkey III Homeownership Opportunity Programs Project MN 
117001.
    Nature of Requirement: 24 CFR 904 Subpart B and the Turnkey III 
Handbook require that upon sale of a homeownership unit that the 
monies received be remitted to HUD to reduce the capital 
indebtedness on the project. Excess Residual Receipts and or 
Operating Reserves are also to be remitted to HUD.
    Granted By: Joseph Shuldiner, Assistant Secretary for Public and 
Indian Housing.
    Date Granted: October 20, 1993.
    Reason Waived: Project debt forgiveness was authorized by the 
provisions of Section 3004 of the Housing and Community Development 
Reconciliation Amendments of 1985, (the Amendments) P.L. 99-272 
(April 7, 1986) which amends Section 4 of the United States Housing 
Act of 1937. The Amendments authorized the Secretary of HUD to 
forgive outstanding principal and interest on loans made by the 
Secretary to Public Housing Agencies (PHAs)/Indian Housing 
Authorities (IHAs) and to cancel the terms of any contract with 
respect to repayment.
    Turnkey III debt forgiveness, as authorized above, is 
implemented according to existing HUD procedures.
    The housing authority has shown good cause and demonstrated 
compliance with all applicable regulatory requirements for debt 
forgiveness.

    23. Regulation: 24 CFR 904 Subpart B (Turnkey III Homeownership 
Opportunity Program) and Corresponding Provisions of the Turnkey III 
Handbook (7495.3).
    Project/Activity: Saint Paul, Minnesota Public Housing Agency, 
Turnkey III Homeownership Opportunity Programs Projects MN 01-21 and 
MN 01-25.
    Nature of Requirement: 24 CFR 904 Subpart B and the Turnkey III 
Handbook require that upon sale of a homeownership unit that the 
monies received be remitted to HUD to reduce the capital 
indebtedness on the project. Excess Residual Receipts and or 
Operating Reserves are also to be remitted to HUD.
    Granted By: Joseph Shuldiner, Assistant Secretary for Public and 
Indian Housing.
    Date Granted: October 20, 1993.
    Reason Waived: Project debt forgiveness was authorized by the 
provisions of Section 3004 of the Housing and Community Development 
Reconciliation Amendments of 1985, (the Amendments) P.L. 99-272 
(April 7, 1986) which amends Section 4 of the United States Housing 
Act of 1937. The Amendments authorized the Secretary of HUD to 
forgive outstanding principal and interest on loans made by the 
Secretary to Public Housing Agencies (PHAs)/Indian Housing 
Authorities (IHAs) and to cancel the terms of any contract with 
respect to repayment.
    Turnkey III debt forgiveness, as authorized above, is 
implemented according to existing HUD procedures.
    The housing authority has shown good cause and demonstrated 
compliance with all applicable regulatory requirements for debt 
forgiveness.

    Note to Reader: The person to be contacted for additional 
information about these waivers is:

Anthony P. DeVito, Field Coordination Officer, Department of Housing 
and Urban Development, Officer of Community Planning and 
Development, 451 7th Street, SW., Washington, DC 20410-7000, 
Telephone: (202) 708-2565 (This is not a toll-free number)

    24. Regulation: 24 CFR 291.400.
    Project/Activity: Anoka County, Minneapolis requested a waiver 
of the disposition rules for HUD-acquired one-to four-family 
properties which restrict occupancy by a homeless lessee in 
transition to a maximum of 24 months.
    Nature of Requirement: The purpose of the program described in 
24 CFR 291.400 is to assist individuals and families who are 
homeless by providing them with transitional housing. Use of HUD-
acquired properties by lessees must be with the understanding that 
the housing provided under this program is transitional and the 
occupants are expected to seek and obtain permanent housing 
resources within two years.
    Granted By: Jacquie M. Lawing, Deputy Assistant Secretary for 
Economic Development.
    Date Granted: June 11, 1993.
    Reasons Waived: The waiver was granted for good cause to 
facilitate a planned move of a tenant from transitional to permanent 
housing. An extension of 12 months was granted to allow time for 
implementation of the permanent housing plan, with a review at the 
six months point to ensure the permanent housing plan was on track.

    25. Regulation: 24 CFR 92.218(a).
    Project/Activity: City of Los Angeles request for waiver of 
matching funds contribution for the HOME Program due to a local 
disaster.
    Nature of Requirement: Section 220(d)(5) of the Cranston-
Gonzalez National Affordable Housing Act was added by Section 210(c) 
of the Housing and Community Development Act of 1992. Section 
220(d)(5) authorizes the Secretary to reduce a participating 
jurisdiction's matching requirement for the HOME Program by up to 
100 percent for a fiscal year if the jurisdiction is in an area in 
which a declaration of a disaster pursuant to the Robert T. Stafford 
Disaster Relief and Emergency Assistance Act (the Stafford Act) is 
in effect for any part of the fiscal year.
    Granted By: Mark C. Gordon, Deputy Assistant Secretary for 
Operations.
    Date Granted: June 30, 1993.
    Reasons Waived: The Department previously responded to the 
waiver request in a January 19, 1993, letter to Mayor Bradley and 
indicated that the requested waiver could not be granted until the 
Department had issued regulations implementing the provision. An 
interim rule for the HOME Program, which included this provision, 
was published June 23, 1993; this rule became effective July 23, 
1993. The Department has a copy of former President Bush's 
declaration under the Stafford Act that a major disaster exists in 
the City of Los Angeles and Los Angeles County.
    Pursuant to the authority at 24 CFR 92.3 and 92.222(b), there is 
good cause to grant the requested waiver of 24 CFR 92.218(a) and to 
reduce the matching requirement for the City of Los Angeles, 
California's HOME Program by 100 percent for Fiscal Years 1993 and 
1994.

    26. Regulation: 24 CFR 570.303(f).
    Project/Activity: Saginaw, Michigan requested a waiver to permit 
the City to change the period to meet the primary objective of the 
CDBG program to benefit low and moderate income persons.
    Nature of Requirement: 24 CFR 570.303(f) requires each grantee 
to expend at least 70 percent of its CDBG funds for activities that 
benefit low- and moderate-income persons. To comply with this 
requirement, 24 CFR 570.303(f) provides that each CDBG grantee must 
certify that it will achieve the primary objective during a period 
of one, two or three consecutive program years. Each grantee is 
permitted to identify the period it will use for this purpose.
    Granted By: Andrew Cuomo, Assistant Secretary for Community 
Planning and Development.
    Date Granted: July 8, 1993.
    Reasons Waived: The City of Saginaw has typically identified a 
one-year period during which it will meet the primary objective of 
the CDBG program. However, because the City plans to undertake a 
large project that will meet the national objective of prevention or 
elimination of slums or blight, it has found that it will not be 
able to meet the primary objective in a one-year period. Therefore, 
it has requested a waiver to extend the period of its certification 
to a three-year period beginning with its 1992 program year.
    The City has indicated that if its request for a waiver is not 
granted, it would have to curtail slum/blight activity to 
rehabilitate a parking garage located in the downtown business 
district. Use of the garage is now restricted because of its need 
for rehabilitation to correct deterioration and corrosion. The City 
has indicated that it does not have other resources available to 
rehabilitate this structure and failure to complete the 
rehabilitation would result in the loss of business (and the jobs 
provided by those businesses) if parking is not made available for 
business customers. The City requested that a waiver be authorized 
to cover its 1992 program year but a waiver cannot be granted 
retroactively; therefore, the request was denied.
    Clearly the potential loss of businesses and jobs in downtown 
Saginaw would constitute an undue hardship and adversely affect the 
purposes of the Act. A waiver was granted for the City to amend the 
certification required by 24 CFR 570.303(f) in its 1993 final 
statement to include its 1993, 1994, and 1995 program years.

    27. Regulation: 24 CFR 291.415.
    Project/Activity: Phoenix Arizona. Request to waive the 24 month 
Maximum Period of Occupant Tenancy in the Single Family Property 
Disposition Homeless Initiative for five families in five 
properties.
    Nature of Requirement: The purpose of the program is to assist 
families who are homeless by providing them with transitional 
housing. Use of HUD-acquired properties by lessees must be with the 
understanding that the housing provided under this program is 
transitional and the occupants are expected to seek and obtain 
permanent housing resources within two years.
    Granted By: Andrew Cuomo, Assistant Secretary for Community 
Planning and Development.
    Date Granted: August 5, 1993.
    Reasons Waived: The need to find stable permanent housing in 
Phoenix will require more time, therefore, for good cause a lease 
extension was approved for 12 months for four families and 6 months 
for one family.
    28. Regulation: 24 CFR 92.256.
    Project/Activity: Elizabeth, New Jersey request for an waiver of 
the HOME Investment Partnership Program (HOME) regulation for a 
project located in that city. The cited regulation requires that in 
a mixed-use project, at least 51 percent of the project space must 
be used for residential purposes.
    Nature of Requirement: The requirement that a minimum of 51 
percent of the space in mixed-use projects be for residential 
purposes was meant to help ensure that the primary HOME Program goal 
of creation of affordable housing is met. However, it is also 
recognized that there are instances in which it would be appropriate 
to allow a project containing a lower percentage to be included. 
This is particularly true when the project is a part of a larger 
overall plan.
    Granted By: Andrew Cuomo, Assistant Secretary for Community 
Planning and Development.
    Date Granted: August 20, 1993.
    Reasons Waived: The project for which the waiver is being sought 
is not an isolated project, but one that is located in a 
neighborhood revitalization area. This area contains several other, 
proximately located, residential projects that are being included in 
the revitalization effort. Further, the commercial space in the 
subject project is reportedly typical of normal, neighborhood-based 
enterprises that would support the economic and residential 
viability of the area.
    24 CFR 92.3 provides that the Department of Housing and Urban 
Development may waive, for good cause, any provision of the 
regulation that is not required by the statue. The circumstances 
outlined in the request from the City of Elizabeth, New Jersey 
constitute good cause. Therefore, the regulation regarding the 
minimum residential living space requirement in a mixed-use project 
was waived to allow HOME funds to be used in the project located at 
17--174 First Street, Elizabeth, New Jersey 07206, which is 
comprised of no less than 36 percent residential living space.

    29. Regulation: 24 CFR 570.507(a)(2)(A) & 24 CFR 570.5.
    Project/Activity: The City of Los Angeles, California, request 
for a waiver of the submission deadline for the Community 
Development Block Grant Program (CDBG) Grantee Performance Report 
(GPR) to allow it to complete conversion to HUD's new automated GPR 
system.
    Nature of Requirement: The GPR is an important part of HUD's 
process of monitoring the CDBG program and of informing the City's 
citizens about program performance.
    CDBG regulations allow a waiver of any requirement not required 
by law whenever it is determined that undue hardship will result 
from applying the requirement and where application of the 
requirement would adversely affect the purpose of the Housing and 
Community Development Act of 1974, as amended.
    Granted By: Andrew Cuomo, Assistant Secretary for Community 
Planning & Development.
    Date Granted: September 3, 1993.
    Reasons Waived: The City has cooperated with the Department in 
reviewing and deciding to change management practices or 
administrative procedures that prevent it from complying with 
program requirements. It will clearly be in the best interest of the 
City, the Department, and of those served by the CDBG program if, at 
the earliest possible time, the City develops the capacity to 
produce timely and accurate reports.
    For the above reasons, failure to grant a waiver of the 
regulation would cause undue hardship and adversely affect the 
purposes of the Act. Therefore, the deadline was waived to allow the 
City to submit its GPR as late as December 22, 1993.

    30. Regulation: 24 CFR 576.55(b)(1).
    Project/Activities: Waiver of the Emergency Shelter Grants (ESG) 
Program Deadline for the City of St. Louis to Obligate FY 1993 ESG 
funds.
    Nature of the Requirement: The regulations state that the 
formula cities, counties, and territories have 180 days from the 
time of grant award by HUD to obligate ESG funds. To meet this 
deadline, these grantees, according to the definition of obligation 
as stated at 24 CFR 576.3 must have ``placed orders, awarded 
contracts, received services, or entered transactions that require 
payment from the grant amount.''
    Granted By: Andrew Cuomo, Assistant Secretary for Community 
Planning and Development.
    Date Granted: October 7, 1993.
    Reason Waived: The City of St. Louis's FY 1993 ESG funds were 
not obligated by the September 1, 1993 deadline due to the City's 
Department of Human Services' (DHS) extensive involvement in flood 
relief efforts.
    The ESG Program regulations at 24 CFR 576.5 provided that the 
Secretary may waive any requirement of the regulations that is not 
required by law, whenever undue hardship will result from applying 
the requirement, or where application of the requirement would 
adversely affect the purposes of the program. Due to the City's need 
to address the extraordinary consequences of the flood and the need 
for flood relief, failure to grant this extension would cause undue 
hardship for the city of St. Louis and would adversely affect the 
purposes of Title IV of the Stewart B. McKinney Homeless Assistance 
Act, since the City of St. Louis would not otherwise receive its ESG 
allocation. Therefore, the regulations concerning the 180-day 
obligation deadline were waived and the obligation deadline extended 
until October 31, 1993.

[FR Doc. 94-11899 Filed 5-16-94; 8:45 am]
BILLING CODE 4210-32-M