[Federal Register Volume 62, Number 27 (Monday, February 10, 1997)]
[Notices]
[Pages 6082-6088]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-3158]



[[Page 6081]]

_______________________________________________________________________

Part III





Department of Housing and Urban Development





_______________________________________________________________________



Regulatory Waiver Requests; Notice

  Federal Register / Vol. 62, No. 27 / Monday, February 10, 1997 / 
Notices  

[[Page 6082]]



DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-4098-N-03]


Notice of Regulatory Waiver Requests Granted

AGENCY: Office of the Secretary, HUD.

ACTION: Public notice of the granting of regulatory waivers from July 
1, 1996 through September 30, 1996.

-----------------------------------------------------------------------

SUMMARY: Under the Department of Housing and Urban Development Reform 
Act of 1989 (Reform Act), the Department (HUD) is required to make 
public all approval actions taken on waivers of regulations. This 
notice is the twenty-third in a series, being published on a quarterly 
basis, providing notification of waivers granted during the preceding 
reporting period. The purpose of this notice is to comply with the 
requirements of Section 106 of the Reform Act.

FOR FURTHER INFORMATION CONTACT: For general information about this 
notice, contact Camille E. Acevedo, Assistant General Counsel for 
Regulations, Room 10276, Department of Housing and Urban Development, 
451 Seventh Street, SW, Washington, DC 20410; telephone 202-708-3055. 
(This is not a toll-free number.); Hearing-and speech-impaired persons 
may call HUD's TTY toll-free number at 1-800-877-8391.
    For information concerning a particular waiver action for which 
public notice is provided in this document, contact the person whose 
name and address is set out for the particular item, in the 
accompanying list of waiver-grant actions.

SUPPLEMENTARY INFORMATION: As part of the Housing and Urban Development 
Reform Act of 1989, the Congress adopted, at HUD's request, legislation 
to limit and control the granting of regulatory waivers by the 
Department. Section 106 of the Act (Section 7(q)(3)) of the Department 
of Housing and Urban Development Act, 42 U.S.C. 3535(q)(3), 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 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.
    Section 106 also contains requirements applicable to waivers of HUD 
handbook provisions that are not relevant to the purpose of today's 
document.
    Today's document follows publication of HUD's Statement of Policy 
on Waiver of Regulations and Directives issued by HUD (56 FR 16337, 
April 22, 1991). This is the twenty-third notice of its kind to be 
published under Section 106. This notice updates HUD's waiver-grant 
activity from July 1, 1996 through September 30, 1996.
    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 91.402 (involving the waiver of a provision in 24 CFR part 
91) would come early in the sequence, while waivers of 24 CFR part 990 
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. 92.2 and 
Sec. 92.214(a)(3) would appear sequentially in the listing under 
Sec. 92.2.) Waiver-grant actions involving the same initial regulatory 
citation are in time sequence beginning with the earliest-dated waiver 
grant action.
    Should the Department receive 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, as well as those that occur between October 1, 1996 through 
December 31, 1996.
    Accordingly, information about approved waiver requests pertaining 
to regulations of the Department is provided in the Appendix that 
follows this notice.

    Dated: January 28, 1997.
Dwight P. Robinson,
Acting Secretary.

Appendix--Listing of Waivers of Regulatory Requirements Granted by 
Officers of the Department of Housing and Urban Development July 1, 
1996 Through September 30, 1996

    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 before each set of waivers granted.

    For Items 1 Through 33, Waivers Granted for 24 CFR Parts 91, 92, 
291, 570, 572, and 576, Contact: Debbie Ann Wills, Field Management 
Officer, U.S. Department of Housing and Urban Development, Office of 
Community Planning and Development, 451 7th Street, S.W., Room 7152, 
Washington, D.C. 20410-7000, Telephone: (202) 708-2565, Hearing-and 
speech-impaired persons may call HUD's TTY toll-free number at 1-800-
877-8391.

1. Regulation: 24 CFR 91.402

    Project/Activity: The Montgomery County/Kettering Consortium of 
Ohio requested a waiver of 24 CFR 91.402 of the Consolidated Plan 
regulations to allow the Consortium until FY 1999 to complete the 
transition of aligning the start of the program year for all its 
Consortium members.
    Nature of Requirement: The regulations at 24 CFR 91.402 state that 
all units of local government that are members of the consortium must 
be on the same program year for CDBG, HOME, Emergency Shelter Grants 
(ESG) and Housing Opportunities for Persons with Aids (HOPWA).
    Granted By: Andrew Cuomo, Assistant Secretary for Community 
Planning and Development.
    Date Granted: July 31, 1996.
    Reasons Waived: The Assistant Secretary found good cause to grant 
the waiver of the regulations which requires that all Consortium 
members must have the same program start dates.

2. Regulation: 24 CFR 91.402

    Project/Activity: The Auburn and King County Consortium of 
Washington requested a waiver of 24 CFR 91.402 of the Consolidated 
Plan, to allow the City of Auburn, which is a member of the Consortium, 
until FY 1999 to complete the transition of the City aligning the start 
of its program year with the Consortium.
    Nature of Requirement: The regulations at 24 CFR 91.402, state that 
all units of local government that are members of the consortium must 
be on

[[Page 6083]]

the same program year for CDBG, HOME, Emergency Shelter Grants (ESG) 
and Housing Opportunities for Persons with Aids (HOPWA).
    Granted By: Andrew Cuomo, Assistant Secretary for Community 
Planning and Development.
    Date Granted: September 16, 1996.
    Reasons Waived: The Assistant Secretary found good cause to grant 
the waiver of the regulations that requires that all consortium members 
must have the same program start dates.

3. Regulation: 24 CFR 91.520(a)

    Project/Activity: Hartford, Connecticut, requested an extension of 
the deadline to submit its annual CDBG performance report to HUD.
    Nature of Requirement: The regulations, at 24 CFR 91.520(a) of the 
CDBG regulations, require that each grant recipient submit a 
performance report to HUD within 90 days after the close of the 
grantee's program year.
    Granted By: Andrew Cuomo, Assistant Secretary for Community 
Planning and Development.
    Date Granted: September 16, 1996.
    Reasons Waived: The Assistant Secretary determined that failure to 
grant the requested waiver would adversely affect the purposes of the 
Act, because the City would not be able to submit a complete and 
accurate performance report on its 1995 program year.

4. Regulation: 24 CFR 92.2

    Project/Activity: Knox County, Tennessee, on behalf of Child and 
Family Services, Inc., requested a waiver of 24 CFR 92.2 regulations 
that establish the composition of Community Housing Development 
Organization (CHDO) Boards.
    Nature of Requirement: The regulations at 24 CFR 92.2 require that 
one-third of the CHDO Board members must be residents of low-income 
neighborhoods.
    Granted by: Andrew Cuomo, Assistant Secretary for Community 
Planning and Development.
    Date Granted: August 21, 1996.
    Reasons Waived: A determination was made that undue hardship would 
result if the non-profit organization was not designated as a CHDO.

5. Regulation: 24 CFR 92.214(a)(3)

    Project/Activity: The State of North Dakota requested a waiver of 
the match provision of the HOME program.
    Nature of Requirement: The regulations, at 24 CFR 92.214(a)(3) of 
the HOME regulations, implement the statutory provision that HOME 
program funds may not be used as a non-federal matching contribution 
under any other federal program.
    Granted By: Andrew Cuomo, Assistant Secretary for Community 
Planning and Development.
    Date Granted: September 30, 1996.
    Reasons Waived: Sections 208 and 234 of the Multifamily Property 
Disposition Reform Act of 1994 authorize HUD to suspend certain 
statutory and regulatory provisions that would otherwise apply to the 
use of CDBG and HOME funds, to address the damage in an area that the 
President has declared a disaster under Title IV of the Robert T. 
Stafford Disaster Relief and Emergency Assistance Act.

6. Regulation: 24 CFR 92.251

    Project/Activity: The State of Arkansas requested a waiver to 
permit a rehabilitation project, which utilizes HOME funds, to use FHA 
Single Family Minimum Property Requirements in lieu of HQS for its HOME 
assisted homebuyer activities.
    Nature of Requirement: The regulations at 24 CFR 92.251 provide 
that housing assisted with HOME funds meet, at a minimum, HUD housing 
quality standards (HQS), and provide other minimum standards for 
substantial rehabilitation and new construction.
    Granted By: Andrew Cuomo, Assistant Secretary for Community 
Planning and Development.
    Date Granted: August 22, 1996.
    Reasons Waived: The waiver was granted because the State does not 
have the staff capacity to inspect all potential HOME properties for 
HQS compliance. It would also be difficult to locate qualified 
inspectors to perform HQS inspections in rural parts of the State. 
Finally, there would be an added cost on low-income borrowers to pay 
for a third-party inspection. The waiver was granted because the 
Assistant Secretary deemed that these factors would adversely affect 
the purposes of the Act.

7. Regulation: 24 CFR 92.252(a)(5)

    Project/Activity: Madison, Wisconsin, requested a waiver to 24 CFR 
92.252(a)(5), which requires that a HOME assisted project must remain 
affordable without regard to the term of any mortgage or the transfer 
of ownership for not less than the applicable affordability period.
    Nature of Requirement: The HOME regulations, at 24 CFR 
92.252(a)(5), state that the project is subject to a ten-year 
affordability period, which is enforced by a deed restriction.
    Granted By: Andrew Cuomo, Assistant Secretary for Community 
Planning and Development.
    Date Granted: August 22, 1996.
    Reasons Waived: The waiver was granted because the hotel burned to 
the ground. The primary owners of the hotel determined that the hotel 
could not be rebuilt with the deed restriction and that they would 
repay the city the HOME assistance.

8. Regulation: 24 CFR 92.254(a)(ii)(A)

    Project/Activity: Cook County, Illinois, requested a waiver to 24 
CFR 92.254(a)(ii)(A), which requires that housing that is for purchase 
by a family qualifies as affordable housing only if the housing is 
subject to minimum periods of resale restrictions or recapture 
provision of the locality.
    Nature of Requirement: The HOME regulations, at 24 CFR 
92.254(a)(ii)(A), state that a participating jurisdiction must recoup 
all or a portion of the HOME assistance to the homebuyers, if the 
housing does not continue to be the principal residence of the family 
for the duration of the period of affordability.
    Granted By: Andrew Cuomo, Assistant Secretary for Community 
Planning and Development.
    Date Granted: August 22, 1996.
    Reasons Waived: The waiver was granted because it was determined 
the restructuring provisions proposed by Cook County did not adversely 
affect the purposes of the HOME program.

9. Regulation: 24 CFR 92.258

    Project/Activity: Sacramento Housing and Redevelopment Agency of 
Sacramento, California, requested a waiver of 24 CFR 92.258 of the HOME 
regulations, to waive the 30-year affordability period for low-income 
homebuyers receiving HOME assistance.
    Nature of Requirement: The regulations, at 24 CFR 92.258, provide a 
limitation on the use of HOME funds with FHA mortgage insurance for a 
period of time equal to the term of the HUD-insured mortgage.
    Granted By: Andrew Cuomo, Assistant Secretary for Community 
Planning and Development.
    Date Granted: August 21, 1996.
    Reasons Waived: The application of Sec. 92.258 of the HOME 
regulations to the Agency's program would create an undue hardship for 
the City of Sacramento and its potential homeowners, and adversely 
affect the purposes of the Act.

10. Regulation: 24 CFR 92.258

    Project/Activity: The City of Euclid, Ohio, requested a waiver of 
24 CFR 92.258 of the HOME regulations to waive the 30-year 
affordability period for low-income homebuyers receiving HOME 
assistance.

[[Page 6084]]

    Nature of Requirement: The regulations, at 24 CFR 92.258, provide a 
limitation on the use of HOME funds with FHA mortgage insurance for a 
period of time equal to the term of the HUD insured mortgage.
    Granted By: Andrew Cuomo, Assistant Secretary for Community 
Planning and Development.
    Date Granted: July 1, 1996.
    Reasons Waived: The application of Sec. 92.258 of the HOME 
regulations to the City's program would create an undue hardship for 
the City of Euclid and its potential homeowners, and adversely affect 
the purposes of the Act.

11. Regulation: 24 CFR 92.258

    Project/Activity: Sacramento Housing and Redevelopment Agency of 
Sacramento, California, requested a waiver of 24 CFR 92.258 of the HOME 
regulations, to waive the 30-year affordability period for low-income 
homebuyers receiving HOME assistance.
    Nature of Requirement: The regulations, at 24 CFR 92.258, provide a 
limitation on the use of HOME funds with FHA mortgage insurance for a 
period of time equal to the term of the HUD insured mortgage.
    Granted By: Andrew Cuomo, Assistant Secretary for Community 
Planning and Development.
    Date Granted: August 21, 1996.
    Reasons Waived: The application of Sec. 92.258 of the HOME 
regulations to the Agency's program would create an undue hardship for 
the City of Sacramento and its potential homeowners, and adversely 
affect the purposes of the Act.

12. Regulation: 24 CFR 92.258

    Project/Activity: The City of Indianapolis, Indiana, requested a 
waiver of 24 CFR 92.258 of the HOME regulations, to waive the 30-year 
affordability period for low-income homebuyers receiving HOME 
assistance.
    Nature of Requirement: The regulations, at 24 CFR 92.258, provide a 
limitation on the use of HOME funds with FHA mortgage insurance for a 
period of time equal to the term of the HUD-insured mortgage.
    Granted By: Andrew Cuomo, Assistant Secretary for Community 
Planning and Development.
    Date Granted: September 30, 1996.
    Reasons Waived: The application of Sec. 92.258 of the HOME 
regulations to the City's program would create an undue hardship for 
the City of Indianapolis and its potential homeowners, and adversely 
affect the purposes of the Act.

13. Regulation: 24 CFR 291.400(a)

    Project/Activity: The Anoka County Community Action Program 
requested a waiver of the 24-month residency for a tenant in a single 
family property leased under the single family property disposition 
homeless program.
    Nature of Requirement: The regulations, at 24 CFR 291.400(a), 
prohibit a non-profit organization or a community participating in the 
Single Family Property Disposition Leasing Program from extending a 
lease to the same tenant for a period beyond 24 months.
    Granted By: Andrew Cuomo, Assistant Secretary for Community 
Planning and Development.
    Date Granted: September 16, 1996.
    Reasons Waived: The waiver will allow a formerly homeless family 
more time to find permanent housing.

14. Regulation: 24 CFR 570.207

    Project/Activity: Caryville, Florida, requested a waiver of the 
CDBG regulation to allow the town to use CDBG to reconstruct the 
damaged town hall on a new site outside of the 100 year flood plain.
    Nature of Requirement: The regulations, at 24 CFR 570.207 of the 
CDBG regulations, prohibit the use of CDBG funds in buildings used for 
the general conduct of government.
    Granted By: Andrew Cuomo, Assistant Secretary for Community 
Planning and Development.
    Date Granted: September 16, 1996.
    Reasons Waived: Sections 208 and 234 of the Multifamily Property 
Disposition Reform Act of 1994 authorize HUD to suspend certain 
statutory and regulatory provisions that would otherwise apply to the 
use of CDBG and HOME funds, to address the damage in an area that the 
President has declared a disaster under Title IV of the Robert T. 
Stafford Disaster Relief and Emergency Assistance Act.

15. Regulation: 24 CFR 570.208(a)(3)

    Project/Activity: The City of Dallas, Texas requested a waiver of 
the CDBG regulations at 24 CFR 570.208(a)(3), to permit it to use CDBG 
funds for American Beauty Flour Mill which is an intown housing 
program. Thirty-three percent of the units will be set aside for low-
and moderate-income persons.
    Nature of Requirement: The regulations at 24 CFR 570.208(a)(3) 
require, as a general rule, that CDBG-assisted housing structures 
principally benefit low-and moderate-income households.
    Granted By: Andrew Cuomo, Assistant Secretary for Community 
Planning and Development.
    Date Granted: September 16, 1996.
    Reasons Waived: The application of the regulations would create 
undue hardship and adversely affect the purposes of the Act because it 
would impede the provision of affordable housing in the central 
business district. Denial of the request would further affect the 
City's ability to comply with the court ordered consent decree which 
directs the City to provide a wider range of low-income housing 
opportunities throughout the City.

16. Regulation: 24 CFR 570.483(b)(3)

    Project/Activity: The State of Connecticut, on behalf of the Town 
of Thompson, requested a waiver of the national objective regulations 
of the State Community Development Block Grant Program.
    Nature of Requirement: 24 CFR 570.483(b)(3) of the State CDBG 
regulations lists the methodology for determining low-and moderate-
income benefit for housing activities funded with CDBG funds.
    Granted By: Andrew Cuomo, Assistant Secretary for Community 
Planning and Development.
    Date Granted: August 22, 1996.
    Reasons Waived: The State was granted the waiver to permit the Town 
to use CDBG funds for acquisition of a mobile home site, which will be 
occupied by low-and moderate-income residents. The Assistant Secretary 
determined that failure to grant the requested waiver would adversely 
affect the purposes of the Act.

17. Regulation: 24 CFR 570.483(b)(3)

    Project/Activity: The State of Rhode Island requested a waiver of 
the State CDBG regulations at 24 CFR 570.483(b)(3).
    Nature of Requirement: The State requested a waiver of the 
regulations that set the standards for meeting national objectives.
    Granted By: Andrew Cuomo, Assistant Secretary for Community 
Planning and Development.
    Date Granted: September 16, 1996.
    Reasons Waived: The State was granted the waiver to permit the Four 
Seasons Mobile Home Cooperative to use CDBG funds for acquisition of a 
mobile home site, which will be occupied by low-and moderate-income 
residents.

18. Regulation: 24 CFR 572.115(a)(1)

    Project/Activity: Acorn Housing Corporation of Little Rock, 
Arkansas, requested a waiver to extend the time permitted for the 
transfer of HOPE 3 properties to eligible families.
    Nature of Requirement: The regulations, at 24 CFR 572.115(a)(1), 
require that units in eligible properties must be transferred to 
eligible families

[[Page 6085]]

within two years of the effective date of the HOPE 3 implementation 
grant. The HUD field office may approve a request for an extension of a 
period not to exceed one year of that deadline.
    Granted By: Andrew Cuomo, Assistant Secretary for Community 
Planning and Development.
    Date Granted: July 15, 1996.
    Reasons Waived: Based on progress made in transferring the subject 
properties, the Assistant Secretary found good cause to extend the 
property transfer deadline for one year.

19. Regulation: 24 CFR 572.115(a)(1)

    Project/Activity: The City of Austin, Texas, requested a waiver to 
extend the time permitted for the transfer of HOPE 3 properties to 
eligible families.
    Nature of Requirement: The regulations, at 24 CFR 572.115(a)(1), 
require that units in eligible properties must be transferred to 
eligible families within two years of the effective date of the HOPE 3 
implementation grant. The HUD field office may approve a request for an 
extension of a period not to exceed one year of that deadline.
    Granted By: Andrew Cuomo, Assistant Secretary for Community 
Planning and Development.
    Date Granted: July 15, 1996.
    Reasons Waived: Based on progress made in transferring the subject 
properties, the Assistant Secretary found good cause to extend the 
property transfer deadline for one year.

20. Regulation: 24 CFR 572.115(a)(1)

    Project/Activity: Rural Housing Improvement, Inc. of Winchendon, 
Massachusetts, requested a waiver to extend the time permitted for the 
transfer of HOPE 3 properties to eligible families.
    Nature of Requirement: The regulations, at 24 CFR 572.115(a)(1), 
require that units in eligible properties must be transferred to 
eligible families within two years of the effective date of the HOPE 3 
implementation grant. The HUD field office may approve a request for an 
extension of a period not to exceed one year of that deadline.
    Granted By: Andrew Cuomo, Assistant Secretary for Community 
Planning and Development.
    Date Granted: September 16, 1996.
    Reasons Waived: Based on progress made in transferring the subject 
properties, the Assistant Secretary found good cause to extend the 
property transfer deadline for one year.

21. Regulation: 24 CFR 572.115(a)(1)

    Project/Activity: The Housing Authority of High Point, North 
Carolina, requested a waiver to extend the time permitted for the 
transfer of HOPE 3 properties to eligible families.
    Nature of Requirement: The regulations at 24 CFR 572.115(a)(1), 
require that units in eligible properties must be transferred to 
eligible families within two years of the effective date of the HOPE 3 
implementation grant. The HUD field office may approve a request for an 
extension of a period not to exceed one year of that deadline.
    Granted By: Andrew Cuomo, Assistant Secretary for Community 
Planning and Development.
    Date Granted: July 22, 1996.
    Reasons Waived: Based on progress made in transferring the subject 
properties, the Assistant Secretary found good cause to extend the 
property deadline transfer for one year.

22. Regulation: 24 CFR 572.115(a)(1)

    Project/Activity: The City of Tucson, Arizona, requested a waiver 
to extend the time permitted for the transfer of HOPE 3 properties to 
eligible families.
    Nature of Requirement: The regulations, at 24 CFR 572.115(a)(1), 
require that units in eligible properties must be transferred to 
eligible families within two years of the effective date of the HOPE 3 
implementation grant. The HUD field office may approve a request for an 
extension of a period not to exceed one year of that deadline.
    Granted By: Andrew Cuomo, Assistant Secretary for Community 
Planning and Development.
    Date Granted: July 22, 1996.
    Reasons Waived: Based on progress made in transferring the subject 
properties, the Assistant Secretary found good cause to extend the 
property deadline transfer for one year.

23. Regulation: 24 CFR 572.115(a)(1)

    Project/Activity: Crowley Ridge Development Council of Arkansas 
requested a waiver to extend the time permitted for the transfer of 
HOPE 3 properties to eligible families.
    Nature of Requirement: The regulations, at 24 CFR 572.115(a)(1), 
require that units in eligible properties must be transferred to 
eligible families within two years of the effective date of the HOPE 3 
implementation grant. The HUD field office may approve a request for an 
extension of a period not to exceed one year of that deadline.
    Granted By: Andrew Cuomo, Assistant Secretary for Community 
Planning and Development.
    Date Granted: September 16, 1996.
    Reasons Waived: Based on progress made in transferring the subject 
properties, the Assistant Secretary found good cause to extend the 
property deadline transfer for one year.

24. Regulation: 24 CFR 572.115(a)(1)

    Project/Activity: The City of Milwaukee, Wisconsin, requested a 
waiver to extend the time permitted for the transfer of HOPE 3 
properties to eligible families.
    Nature of Requirement: The regulations, at 24 CFR 572.115(a)(1), 
require that units in eligible properties must be transferred to 
eligible families within two years of the effective date of the HOPE 3 
implementation grant. The HUD field office may approve a request for an 
extension of a period not to exceed one year of that deadline.
    Granted By: Andrew Cuomo, Assistant Secretary for Community 
Planning and Development.
    Date Granted: September 20, 1996.
    Reasons Waived: Based on progress made in transferring the subject 
properties, the Assistant Secretary found good cause to extend the 
property deadline transfer for one year.

25. Regulation: 24 CFR 576.21

    Project/Activity: The Government of Puerto Rico requested a waiver 
of the Emergency Shelter Grants regulations at 24 CFR 576.21.
    Nature of Requirement: The Government requested a waiver of the ESG 
expenditure limitation on essential services.
    Granted By: Andrew Cuomo, Assistant Secretary for Community 
Planning and Development.
    Date Granted: July 22, 1996.
    Reasons Waived: Under the Stewart B. McKinney Homeless Assistance 
Act, amended by the National Affordable Housing Act, the 30 percent cap 
on essential services may be waived if the grantee ``demonstrates that 
the other eligible activities under the program are already being 
carried out in the locality with other resources''. The Government 
provided a letter that demonstrated that other categories of ESG 
activities will be carried out locally with other resources, therefore, 
it was determined that the waiver was appropriate.

26. Regulation: 24 CFR 576.21

    Project/Activity: Hennepin County, Minnesota, requested a waiver of 
the Emergency Shelter Grants regulations at 24 CFR 576.21.
    Nature of Requirement: The County requested a waiver of the ESG 
expenditure limitation on essential services.
    Granted By: Andrew Cuomo, Assistant Secretary for Community 
Planning and Development.
    Date Granted: July 22, 1996.
    Reasons Waived: Under the Stewart B. McKinney Homeless Assistance 
Act,

[[Page 6086]]

amended by the National Affordable Housing Act, the 30 percent cap on 
essential services may be waived if the grantee ``demonstrates that the 
other eligible activities under the program are already being carried 
out in the locality with other resources''. The County provided a 
letter that demonstrated that other categories of ESG activities will 
be carried out locally with other resources, therefore, it was 
determined that the waiver was appropriate.

27. Regulation: 24 CFR 576.21

    Project/Activity: Honolulu County, Hawaii, requested a waiver of 
the Emergency Shelter Grants regulations at 24 CFR 576.21.
    Nature of Requirement: The County requested a waiver of the ESG 
expenditure limitation on essential services.
    Granted By: Andrew Cuomo, Assistant Secretary for Community 
Planning and Development.
    Date Granted: July 22, 1996.
    Reasons Waived: Under the Stewart B. McKinney Homeless Assistance 
Act, amended by the National Affordable Housing Act, the 30 percent cap 
on essential services may be waived if the grantee ``demonstrates that 
the other eligible activities under the program are already being 
carried out in the locality with other resources''. The County provided 
a letter that demonstrated that other categories of ESG activities will 
be carried out locally with other resources, therefore, it was 
determined that the waiver was appropriate.

28. Regulation: 24 CFR 576.21

    Project/Activity: Morris County, New Jersey, requested a waiver of 
the Emergency Shelter Grants regulations at 24 CFR 576.21.
    Nature of Requirement: The County requested a waiver of the ESG 
expenditure limitation on essential services.
    Granted By: Andrew Cuomo, Assistant Secretary for Community 
Planning and Development.
    Date Granted: July 22, 1996.
    Reasons Waived: Under the Stewart B. McKinney Homeless Assistance 
Act, amended by the National Affordable Housing Act, the 30 percent cap 
on essential services may be waived if the grantee ``demonstrates that 
the other eligible activities under the program are already being 
carried out in the locality with other resources''. The County provided 
a letter that demonstrated that other categories of ESG activities will 
be carried out locally with other resources, therefore, it was 
determined that the waiver was appropriate.

29. Regulation: 24 CFR 576.21

    Project/Activity: The State of Massachusetts requested a waiver of 
the Emergency Shelter Grants Regulations at 24 CFR 576.21.
    Nature of Requirement: The State requested a waiver of the ESG 
expenditure limitation on essential services.
    Granted By: Andrew Cuomo, Assistant Secretary for Community 
Planning and Development.
    Date Granted: July 22, 1996.
    Reasons Waived: Under the Stewart B. McKinney Homeless Assistance 
Act, amended by the National Affordable Housing Act, the 30 percent cap 
on essential services may be waived if the grantee ``demonstrates that 
the other eligible activities under the program are already being 
carried out in the locality with other resources''. The State provided 
a letter that demonstrated that other categories of ESG activities will 
be carried out locally with other resources, therefore, it was 
determined that the waiver was appropriate.

30. Regulation: 24 CFR 576.21

    Project/Activity: The City of Onondaga, New York, requested a 
waiver of the Emergency Shelter Grants Regulations at 24 CFR 576.21.
    Nature of Requirement: The City requested a waiver of the ESG 
expenditure limitation on essential services.
    Granted By: Andrew Cuomo, Assistant Secretary for Community 
Planning and Development.
    Date Granted: August 22, 1996.
    Reasons Waived: Under the Stewart B. McKinney Homeless Assistance 
Act, amended by the National Affordable Housing Act, the 30 percent cap 
on essential services may be waived if the grantee ``demonstrates that 
the other eligible activities under the program are already being 
carried out in the locality with other resources''. The City provided a 
letter that demonstrated that other categories of ESG activities will 
be carried out locally with other resources, therefore, it was 
determined that the waiver was appropriate.

31. Regulation: 24 CFR 576.21

    Project/Activity: The Municipality of Caguas, Puerto Rico, 
requested a waiver of the Emergency Shelter Grants Regulations at 24 
CFR 576.21.
    Nature of Requirement: The City requested a waiver of the ESG 
expenditure limitation on essential services.
    Granted By: Andrew Cuomo, Assistant Secretary for Community 
Planning and Development.
    Date Granted: August 22, 1996.
    Reasons Waived: Under the Stewart B. McKinney Homeless Assistance 
Act, amended by the National Affordable Housing Act, the 30 percent cap 
on essential services may be waived if the grantee ``demonstrates that 
the other eligible activities under the program are already being 
carried out in the locality with other resources''. The City provided a 
letter that demonstrated that other categories of ESG activities will 
be carried out locally with other resources, therefore, it was 
determined that the waiver was appropriate.

32. Regulation: 24 CFR 576.21

    Project/Activity: The State of New York requested a waiver of the 
Emergency Shelter Grants Regulations at 24 CFR 576.21.
    Nature of Requirement: The State requested a waiver of the ESG 
expenditure limitation on essential services.
    Granted By: Andrew Cuomo, Assistant Secretary for Community 
Planning and Development.
    Date Granted: September 20, 1996.
    Reasons Waived: Under the Stewart B. McKinney Homeless Assistance 
Act, amended by the National Affordable Housing Act, the 30 percent cap 
on essential services may be waived if the grantee ``demonstrates that 
the other eligible activities under the program are already being 
carried out in the locality with other resources''. The State provided 
a letter that demonstrated that other categories of ESG activities will 
be carried out locally with other resources, therefore, it was 
determined that the waiver was appropriate.

33. Regulation: 24 CFR 576.55(a)(2)(ii)

    Project/Activity: Morris County, New Jersey requested a waiver of 
the Emergency Shelter Grants Regulations at 24 CFR 576.55(a)(2)(ii).
    Nature of Requirement: The Stewart B. McKinney Homeless Assistance 
Act requires that each local recipient spend all of its grant amount 
within 24 months of the date on which the County made the grant amounts 
available to the County recipient.
    Granted By: Andrew Cuomo, Assistant Secretary for Community 
Planning and Development.
    Date Granted: July 22, 1996.
    Reasons Waived: The County received a waiver of the 24 month ESG 
expenditure deadline because it needed to expand the shelter and 
provide the necessary facilities to accommodate homeless families and 
handicapped individuals. Therefore, the homeless population would 
suffer undue hardship without the renovation and

[[Page 6087]]

expansion monies from the ESG needed for the expansion and renovation 
of this facility.
    For Items 34 and 35, Waivers Granted for 24 CFR Part 950, Contact: 
Mr. Dominic Nessi, Deputy Assistant Secretary for Native American 
Programs, National Office of Native American Programs, 1999 Broadway, 
Suite 3390, Box 90, Denver, CO 80202, (303) 675-1600, Hearing- and 
speech-impaired persons may call HUD's TTY toll-free number at 1-800-
877-8391.

34. Regulation: 24 CFR 950.455(b)(1)

    Project/Activity: Conversion of Indian housing units at Fort 
McDowell Mohave-Apache Housing Authority Indian Housing.
    Nature of Requirement: Dwelling units must be in ``decent, safe and 
sanitary condition'' prior to their conversion from the Rental Program 
to the Mutual Help Homeownership Opportunity Program.
    Granted By: Kevin Emanuel Marchman, Acting Assistant Secretary for 
Public and Indian Housing.
    Date Granted: July 29, 1996.
    Reasons Waived: This waiver was granted to permit the conversion 
and subsequent conveyance to homebuyers of the subject dwelling units. 
The homebuyers have sufficient financial resources to bring the 
conversion units into decent, safe and sanitary condition without HUD's 
assistance.

35. Regulation: 24 CFR 950.455(b)(2)

    Project/Activity: Conversion of Indian housing units at Fort 
McDowell Mohave-Apache Housing Authority Indian Housing.
    Nature of Requirement: This regulation requires tenants or other 
applicants to qualify as homebuyers in order to be eligible for 
conversion.
    Granted By: Kevin Emanuel Marchman, Acting Assistant Secretary for 
Public and Indian Housing.
    Date Granted: July 29, 1996.
    Reasons Waived: Permits current tenants to qualify for the program 
despite outstanding tenant accounts receivable because these potential 
homebuyers now possess the financial capability to maintain the homes 
that will be conveyed to them.
    For Items 36 Through 41, Waivers Granted for 24 CFR Part 990, 
Contact: Mary Ann Russ, Deputy Assistant Secretary, Office of Public 
and Assisted Housing Operations, Department of Housing and Urban 
Development, 451 Seventh Street, SW., Room 4226, Washington, DC 20410, 
(202) 708-1842 (THIS IS NOT A TOLL-FREE NUMBER). Hearing- and speech-
impaired persons may call HUD's TTY toll-free number at 1-800-877-8391.

36. Regulation: 24 CFR 990.108(b)(2)(iv)

    Project/Activity: Tennessee Valley Regional Housing Authority. In 
determining the operating subsidy eligibility, a request was made for 
funding more than one site in a project approved for non-dwelling use 
to promote an anti-drug program.
    Nature of Requirement: The operating subsidy calculation limits 
funding for units removed from the dwelling rental inventory for 
economic self-sufficiency or anti-drug programs to one site per 
project.
    Granted By: Kevin Emmanuel Marchman, Acting Assistant Secretary for 
Public and Indian Housing.
    Date Granted: August 14, 1996.
    Reason Waived: To take into account the size of developments in a 
housing authority when determining the number of sites funded in a 
project. Because this was a large project, three additional sites were 
approved to be used for crafts, educational videos and films, special 
speakers and programs, adult education classes, and the youth sports 
program.

37. Regulation: 24 CFR 990.108(b)(2)(iv)

    Project/Activity: Seattle, WA, Housing Authority. In determining 
the operating subsidy eligibility, a request was made for funding more 
than one site in a project approved for non-dwelling use to promote an 
anti-drug program.
    Nature of Requirement: The operating subsidy calculation limits 
funding for units removed from the dwelling rental inventory for 
economic self-sufficiency or anti-drug programs to one site per 
project.
    Granted By: Kevin Emmanuel Marchman, Acting Assistant Secretary for 
Public and Indian Housing.
    Date Granted: September 23, 1996.
    Reasons Waived: To take into account the size of developments in a 
housing authority when determining the number of sites funded in a 
project. Because this was a large project, four additional sites were 
approved to be used for Economic Self-Sufficiency and Anti-Drug 
programs.

38. Regulation: 24 CFR 990.108(e)

    Project/Activity: Housing Authority of New Orleans, LA.
    Nature of Requirement: When unit months are lost through combining 
small units into larger units, they must be removed from the 
calculation of unit months available in the PFS subsidy calculation.
    Granted By: Michael B. Janis, General Deputy Assistant Secretary 
for Public and Indian Housing.
    Date Granted: August 12, 1996.
    Reasons Waived: Because of problems the HA has experienced filling 
vacant efficiency units for the elderly, the HA converted them to one-
bedroom units which could rent. In order to support the HA's efforts to 
reduce vacancies, approval was granted for the HA to include the 
Allowable Expense Level for the number of unit months which would be 
lost through this conversion in future PFS calculations.

39. Regulation: 24 CFR 990.109

    Project/Activity: Housing Authority of the City of Oakland, CA. A 
request was made to permit the Authority to benefit from energy 
performance contracting for developments which have tenant-paid 
utilities. The HA estimates that it could increase savings 
substantially if it were able to undertake energy performance 
contracting for both PHA-paid and tenant-paid utilities.
    Nature of Requirement: Under 24 CFR part 990, the Performance 
Funding System (PFS) energy conservation incentive that relates to 
energy performance contracting currently applies only to PHA-paid 
utilities. The OHA has both PHA-paid and tenant-paid utilities.
    Granted By: Kevin Emanuel Marchman, Acting Assistant Secretary for 
Public and Indian Housing.
    Date Granted: September 25, 1996.
    Reasons Waived: The waiver was granted because the OHA presented a 
sound and reasonable methodology for PHAs with tenant-paid utilities to 
participate in energy cost reduction incentives that will benefit both 
PHAs and HUD. The waiver permits the OHA to exclude from its PFS 
calculation of rental income increased rental income due to the 
difference between updated baseline utility allowances (before 
implementation of the energy conservation measures) and revised 
allowances (after implementation of the measures) for the project(s) 
involved for the duration of the contract period, which cannot exceed 
12 years.

40. Regulation: 24 CFR 990.109(b)(3)(iv)

    Project/Activity: Kinsley, Kansas Housing Authority. A request was 
made to use the HA's actual occupancy rate and recalculate its 
operating subsidy eligibility.
    Nature of Requirement: The Regulation requires a Low Occupancy PHA 
without an approved Comprehensive Occupancy Plan to use a projected 
occupancy percentage of 97%.
    Granted By: Kevin Emanuel Marchman, Acting Assistant Secretary for 
Public and Indian Housing.

[[Page 6088]]

    Date Granted: August 2, 1996.
    Reasons Waived: The Kinsley Housing Authority is a small HA which 
has pursued many vacancy reduction strategies during the past several 
years. The HA was allowed to use its actual occupancy percentage to 
prevent undue hardships while it continues its efforts to reduce 
vacancies.

41. Regulation: 24 CFR 990.109(b)(3)(iv)

    Project/Activity: Breckenridge, MN, Housing and Redevelopment 
Authority. A request was made to use the HA's actual occupancy rate of 
94% and recalculate its operating subsidy eligibility.
    Nature of Requirement: The regulation requires a Low Occupancy PHA 
without an approved Comprehensive Occupancy Plan to use a projected 
occupancy percentage of 97%.
    Granted By: Kevin Emanuel Marchman, Acting Assistant Secretary for 
Public and Indian Housing.
    Date Granted: August 28, 1996.
    Reasons Waived: Breckenridge is a small HA which has pursued many 
vacancy reduction strategies for the past several years. The HA was 
allowed to use its actual occupancy percentage to prevent undue 
hardships while it continues its efforts to reduce vacancies. The HA 
was also notified that for its subsequent budget years beginning with 
4/1/97, it will be subject to the provisions of the new Vacancy Rule, 
dated 4/1/96. Therefore, if the HA continues to experience vacancy 
problems attributable to circumstances or actions beyond its control, 
it may have to consider its vacant units as being long-term vacancies 
and eligible only for reduced subsidy.

[FR Doc. 97-3158 Filed 2-7-97; 8:45 am]
BILLING CODE 4210-32-P