[Federal Register Volume 71, Number 63 (Monday, April 3, 2006)]
[Notices]
[Pages 16660-16661]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 06-3168]



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Part III





Department of Housing and Urban Development





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Disaster Voucher Program; Notice of Statutory and Regulatory Waivers 
for Public Housing Agencies Assisting With Recovery and Relief in 
Hurricanes Katrina and Rita Disaster Areas; Notice

  Federal Register / Vol. 71, No. 63 / Monday, April 3, 2006 / 
Notices  

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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5061-N-01]


Disaster Voucher Program; Notice of Statutory and Regulatory 
Waivers for Public Housing Agencies Assisting With Recovery and Relief 
in Hurricanes Katrina and Rita Disaster Areas

AGENCY: Office of the Assistant Secretary for Public and Indian 
Housing, HUD.

ACTION: Notice.

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SUMMARY: This notice advises the public of the implementation of 
certain statutory and regulatory waivers pursuant to the Department of 
Defense Appropriations Act, 2006, enacted into law on December 30, 
2005. This act provides $390 million for rental voucher assistance 
under section 8(o) of the United States Housing Act of 1937 to families 
that, prior to Hurricanes Katrina or Rita, were receiving housing 
assistance under certain HUD housing programs or were homeless or in 
emergency shelters in the declared disaster areas. The $390 million 
rental voucher assistance program is referred to as the Disaster 
Voucher Program (DVP).
    More detailed information about DVP and the operating requirements 
that govern its administration by public housing agencies (PHAs) are 
contained in PIH Notice 2006-12, which can be accessed from the HUD Web 
site at http://www.hud.gov/pih. The operating requirements explain in 
full detail the design features of DVP. The operating requirements also 
address the DVP funding process and administrative fees; PHA 
administrative responsibilities; and recordkeeping requirements. Any 
supplemental guidance for the DVP will be posted on HUD's Web site in 
order to ensure the effective administration and implementation of the 
program and its goals.

DATES: Effective Date: DVP became effective on January 27, 2006.

FOR FURTHER INFORMATION CONTACT: David Vargas, Director, Office of 
Voucher Programs, Department of Housing and Urban Development, 451 
Seventh Street, SW., Room 4226, Washington, DC 20410; telephone (202) 
708-2815 (this is not a toll-free number). Persons with hearing or 
speech impairments may access this number through TTY by calling the 
Federal Information Relay Service at (800) 877-8339.

SUPPLEMENTARY INFORMATION:

I. Background Information

    In late August 2005, Hurricane Katrina struck the Gulf Coast area 
of the United States causing unprecedented and catastrophic damage to 
property, significant loss of life, and the displacement of tens of 
thousands of individuals from their homes and communities. In September 
2005, Hurricane Rita closely followed Hurricane Katrina and once again 
hit the Gulf Coast area of the United States, adding to the damage to 
property and displacement of individuals and families from their homes 
and communities.
    Recognizing that moving displaced families out of temporary 
shelters into more permanent housing is a key element in helping 
families return to some degree of normalcy, the Federal Emergency 
Management Agency (FEMA), through a Mission Assignment, tasked HUD to 
assume a major role in the initial relief effort through the 
administration of the Katrina Disaster Housing Assistance Program 
(KDHAP). Under the KDHAP, HUD provided rent subsidy assistance, 
including security deposit assistance, utility deposit assistance, and 
housing search assistance, through local Public Housing Agencies (PHAs) 
currently administering the Housing Choice Voucher program to both HUD 
assisted families displaced from their homes by Hurricane Katrina and 
pre-disaster homeless families.
    The Department of Defense Appropriations Act, 2006, (Public Law 
109-148, enacted December 30, 2005) (DoD Appropriations Act) 
appropriated $390 million to HUD for rental voucher assistance under 
section 8(o) of the United States Housing Act of 1937 (the 1937 Act) to 
families that, prior to Hurricanes Katrina or Rita, were receiving 
housing assistance under certain HUD housing programs or were homeless 
or in emergency shelters in the declared disaster areas. The funding is 
rental voucher assistance designed to help families displaced by the 
disaster on a temporary basis, while repairs or rebuilding is completed 
on their former housing. The DVP replaces the KDHAP. Families that 
participated in KDHAP who were eligible for the DVP had their KDHAP 
assistance converted to DVP assistance.
    In addition to appropriating funding, the DoD Appropriations Act 
authorized statutory waivers for the DVP. In administering DVP 
assistance, the Secretary of Housing and Urban Development is 
authorized to waive requirements for income eligibility and tenant 
contribution for families receiving DVP assistance for up to 18 months. 
The 18-months timeframe shall commence from the date that a family 
initially receives assistance under the DVP.

II. Waiver Authority

    To further assist families in sustaining and obtaining housing 
during the recovery efforts, the DoD Appropriations Act provides the 
Secretary of Housing and Urban Development with the discretion to waive 
statutory requirements for income eligibility and tenant contribution 
under section 8 of the 1937 Act with respect to administration of the 
DVP. HUD implemented this waiver authority on January 27, 2006, which 
marked the commencement of DVP. The implementation of HUD's waiver 
authority provides eligible families additional time to recover from 
the economic impact of Hurricanes Katrina and Rita. In addition, the 
implementation of HUD's waiver authority assists in reducing 
impediments that may otherwise delay the speedy transition to and 
implementation of the DVP for families affected by Hurricanes Katrina 
and Rita.
    Waivers of Statutory Provisions. For PHAs assisting Hurricanes 
Katrina and Rita disaster victims who are eligible for DVP, and 
consistent with the waiver authority provided by the DoD Appropriations 
Act, HUD has waived the following statutory provisions of the 1937 Act:

1. Section 8(o)(2): Amount of Monthly Assistance Payment
2. Section 8(o)(3): 40 Percent Limit
3. Section 8(o)(4): Eligible Families
4. Section 8(o)(5): Annual Review of Family Income

    In addition, any duplicative or clearly interrelated statutory 
provisions are also waived.\1\ For instance, section 3(a)(1) of the 
1937 Act provides, in part, that only low-income families may be 
assisted under the 1937 Act, a requirement that is also contained, in 
far more detail, in section 8(o)(4) of the 1937 Act. Similarly, section 
3(a)(3) of the 1937 Act establishes a minimum tenant rent requirement 
that is referenced in section 8(o)(2) of the 1937 Act.\2\
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    \1\ A number of statutory definitions, e.g., the definition of 
adjusted income in section 3(b)(5) of the 1937 Act, do not apply to 
the DVP due to the waivers covering income eligibility and family 
contribution.
    \2\ In addition section 16(b) of the 1937 Act generally provides 
that of the families initially provided tenant-based assistance by a 
PHA under section 8 in a fiscal year, not less than 75 percent shall 
be extremely low income. Since income eligibility requirements do 
not apply to the DVP, any families assisted under this program are 
not included in determining a PHA's compliance with the targeting 
requirement in section 16(b).

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    Under Sec.  5.110 of HUD's regulations in title 24 of the Code of 
Federal Regulations (CFR), HUD's regulations in 24 CFR may be waived 
upon a determination of good cause, subject to statutory limitations. 
Waiver of several regulations in 24 CFR part 5, subpart F, were 
determined necessary to give effect to the waiver of statutory income 
eligibility and tenant contribution requirements described above.
    In order to simplify the administration of the DVP, HUD made a 
finding of good cause to waive certain regulations in 24 CFR part 982 
that govern the Housing Choice Voucher (HCV) program. Waiver of several 
of the HCV program regulations provide flexibility in administration of 
the DVP; assist in reducing impediments that may otherwise delay the 
speedy transition to and implementation of DVP for families affected by 
Hurricanes Katrina and Rita; and help provide eligible families with 
additional time to recover from the economic impact of the hurricanes. 
There are other regulatory provisions in 24 CFR part 982 that are 
either obsolete (e.g., 24 CFR 982.518, Regular Tenancy: How to 
Calculate the Housing Assistance Payment) or clearly inapplicable to 
DVP (e.g., 24 CFR 982.104, HUD Review of Application). Such provisions 
were therefore waived to provide clarity with respect to DVP 
administration.
    Further, this notice advises that because DVP provides rental 
voucher assistance that is designed to help families displaced by the 
disaster on a temporary basis, DVP rental assistance may not be used 
for homeownership as provided in HUD's regulations in 24 CFR part 982, 
specifically in Sec. Sec.  982.625 through 982.643, nor may DVP 
assistance be used for project-based voucher assistance as provided in 
24 CFR part 983.
    Therefore, consistent with the authority in 24 CFR 5.110, the 
following regulatory provisions were waived on January 27, 2006:

A. Housing Choice Voucher Program

1. 24 CFR 982.101: Allocation of Funding
2. 24 CFR 982.102: Allocation of Budget Authority for Renewal of 
Expiring Consolidated CACC Funding Increments
3. 24 CFR 982.103: PHA Application for Funding
4. 24 CFR 982.104: HUD Review of Application
5. 24 CFR 982.201: Eligibility and Targeting
6. 24 CFR 982.202: How Applicants are Selected: General Requirements
7. 24 CFR 982.203: Special Admission (Non-Waiting List): Assistance 
Targeted by HUD
8. 24 CFR 982.204: Waiting list: Administration of Waiting List
9. 24 CFR 982.205: Waiting List: Different Program
10. 24 CFR 982.206: Waiting List: Opening and Closing; Public Notice
11. 24 CFR 982.207: Waiting List: Local Preferences in Admission to 
Program
12. 24 CFR 982.317: Lease-Purchase Agreements
13. 24 CFR 982.352(a)(2): Ineligible Housing
14. 24 CFR 982.355: Portability: Administration by Receiving PHA
15. 24 CFR 982.401(d): Housing Quality Standards; Space and Security
16. 24 CFR 982.504 Voucher Tenancy: Payment Standard for Family in 
Restructured Subsidized Multifamily Project
17. 24 CFR 982.505 Voucher Tenancy: How to Calculate Housing Assistance 
Payment
18. 24 CFR 982.508: Maximum Family Share at Initial Occupancy
19. 24 CFR 982.515: Family Share: Family Responsibility
20. 24 CFR 982.516: Family Income and Composition: Regular and Interim 
Examinations
21. 24 CFR 982.518: Regular Tenancy: How to Calculate Housing 
Assistance Payment
22. 24 CFR 982.519: Regular Tenancy: Annual Adjustment of Rent to Owner
23. 24 CFR 982.520: Regular Tenancy: Special Adjustment of Rent to 
Owner
24. 24 CFR 982.619: Cooperative Housing
25. 24 CFR 982.622: Manufactured Home Space Rental: Rent to Owner
26. 24 CFR 982.623: Manufactured Home Space Rental: Housing Assistance 
Payment
27. 24 CFR 982.624: Manufactured Home Space Rental: Utility Allowance 
Schedule

B. Part 5, Subpart F: Section 8 and Public Housing and Other HUD 
Assisted Housing Serving Persons with Disabilities: Family Income and 
Family Payment; Occupancy Requirements for Section 8 Project-Based 
Assistance

1. 24 CFR 5.601: Purpose and Applicability
2. 24 CFR 5.603: Definitions
3. 24 CFR 5.609: Annual Income
4. 24 CFR 5.611: Adjusted Income
5. 24 CFR 5.613: Public Housing Program and Section 8: PHA Cooperation 
with Welfare Agency
6. 24 CFR 5.615: How Welfare Benefit Reduction affects Family Income
7. 24 CFR 5.617: Self-Sufficiency Incentives for Persons with 
Disabilities-Disallowance of Increase in Annual Income
8. 24 CFR 5.628: Total Tenant Payment
9. 24 CFR 5.630: Minimum Rent \3\

    \3\ Two regulatory provisions in 24 CFR part 5, subpart F (24 
CFR 5.632 (Utility Reimbursement) and 24 CFR 5.634 (Tenant Rent)) 
explicitly provide that they do not apply to the voucher program and 
thus need not be waived.
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    In addition, 24 CFR 5.512(d), Verification of Eligible Immigration 
Status: Secondary Verification, was waived for the limited purpose of 
expanding the time under which a secondary verification must be 
requested of Immigration and Customs Enforcement by the responsible 
entity when the primary verification (the automated verification 
system) is not conclusive of immigration status. Specifically, under 
the DVP, the time under which a secondary verification must be 
requested was expanded from 10 days of the date of the results of the 
primary verification to 90 days from such date.
    All waivers pertaining to income eligibility and tenant 
contribution in the voucher program (e.g., 24 CFR 982.505, 982.508, 
982.515, 982.516, 5.609 and 5.611) are applicable for an 18-month 
period for each family assisted under the DVP. All other waivers are 
effective for the duration of the DVP.

    Dated: March 27, 2006.
Orlando J. Cabrera,
Assistant Secretary for Public and Indian Housing.
[FR Doc. 06-3168 Filed 3-31-06; 8:45 am]
BILLING CODE 4210-67-P