[Federal Register Volume 79, Number 51 (Monday, March 17, 2014)]
[Notices]
[Pages 14726-14732]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-05803]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5711-N-04]


Notice of Regulatory Waiver Requests Granted for the Fourth 
Quarter of Calendar Year 2013

AGENCY: Office of the General Counsel, HUD.

ACTION: Notice.

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SUMMARY: Section 106 of the Department of Housing and Urban Development 
Reform Act of 1989 (the HUD Reform Act) requires HUD to publish 
quarterly Federal Register notices of all regulatory waivers that HUD 
has approved. Each notice covers the quarterly period since the 
previous Federal Register notice. The purpose of this notice is to 
comply with the requirements of section 106 of the HUD Reform Act. This 
notice contains a list of regulatory waivers granted by HUD during the 
period beginning on October 1, 2013, and ending on December 31, 2013.

FOR FURTHER INFORMATION CONTACT: For general information about this 
notice, contact Camille E. Acevedo, Associate General Counsel for 
Legislation and Regulations, Department of Housing and Urban 
Development, 451 7th Street SW., Room 10282, Washington, DC 20410-0500, 
telephone 202-708-1793 (this is not a toll-free number). Persons with 
hearing- or speech-impairments may access this number through TTY by 
calling the toll-free Federal Relay Service at 800-877-8339.
    For information concerning a particular waiver that was granted and

[[Page 14727]]

for which public notice is provided in this document, contact the 
person whose name and address follow the description of the waiver 
granted in the accompanying list of waivers that have been granted in 
the fourth quarter of calendar year 2013.

SUPPLEMENTARY INFORMATION: Section 106 of the HUD Reform Act added a 
new section 7(q) to the Department of Housing and Urban Development Act 
(42 U.S.C. 3535(q)), which provides that:
    1. Any waiver of a regulation must be in writing and must specify 
the grounds for approving the waiver;
    2. Authority to approve a waiver of a regulation may be delegated 
by the Secretary only to an individual of Assistant Secretary or 
equivalent rank, and the person to whom authority to waive is delegated 
must also have authority to issue the particular regulation to be 
waived;
    3. Not less than quarterly, the Secretary must notify the public of 
all waivers of regulations that HUD has approved, by publishing a 
notice in the Federal Register. These notices (each covering the period 
since the most recent previous notification) shall:
    a. Identify the project, activity, or undertaking involved;
    b. Describe the nature of the provision waived and the designation 
of the provision;
    c. Indicate the name and title of the person who granted the waiver 
request;
    d. Describe briefly the grounds for approval of the request; and
    e. State how additional information about a particular waiver may 
be obtained.
    Section 106 of the HUD Reform Act also contains requirements 
applicable to waivers of HUD handbook provisions that are not relevant 
to the purpose of this notice.
    This notice follows procedures provided in HUD's Statement of 
Policy on Waiver of Regulations and Directives issued on April 22, 1991 
(56 FR 16337). In accordance with those procedures and with the 
requirements of section 106 of the HUD Reform Act, waivers of 
regulations are granted by the Assistant Secretary with jurisdiction 
over the regulations for which a waiver was requested. In those cases 
in which a General Deputy Assistant Secretary granted the waiver, the 
General Deputy Assistant Secretary was serving in the absence of the 
Assistant Secretary in accordance with the office's Order of 
Succession.
    This notice covers waivers of regulations granted by HUD from 
October 1, 2013 through December 31, 2013. For ease of reference, the 
waivers granted by HUD are listed by HUD program office (for example, 
the Office of Community Planning and Development, the Office of Fair 
Housing and Equal Opportunity, the Office of Housing, and the Office of 
Public and Indian Housing, etc.). Within each program office grouping, 
the waivers are listed sequentially by the regulatory section of title 
24 of the Code of Federal Regulations (CFR) that is being waived. For 
example, a waiver of a provision in 24 CFR part 58 would be listed 
before a waiver of a provision in 24 CFR part 570.
    Where more than one regulatory provision is involved in the grant 
of a particular waiver request, the action is listed under the section 
number of the first regulatory requirement that appears in 24 CFR and 
that is being waived. For example, a waiver of both Sec.  58.73 and 
Sec.  58.74 would appear sequentially in the listing under Sec.  58.73.
    Waiver of regulations that involve the same initial regulatory 
citation are in time sequence beginning with the earliest-dated 
regulatory waiver.
    Should HUD receive additional information about waivers granted 
during the period covered by this report (the fourth quarter of 
calendar year 2013) before the next report is published (the first 
quarter of calendar year 2014), HUD will include any additional waivers 
granted for the third quarter in the next report.
    Accordingly, information about approved waiver requests pertaining 
to HUD regulations is provided in the Appendix that follows this 
notice.

    Dated: March 10, 2014.
Damon Y. Smith,
Acting General Counsel.

APPENDIX

Listing of Waivers of Regulatory Requirements Granted by Offices of the 
Department of Housing and Urban Development October 1, 2013 through 
December 31, 2013

    Note to Reader: More information about the granting of these 
waivers, including a copy of the waiver request and approval, may be 
obtained by contacting the person whose name is listed as the 
contact person directly after each set of regulatory waivers 
granted.
    The regulatory waivers granted appear in the following order:
    I. Regulatory waivers granted by the Office of Community 
Planning and Development.
    II. Regulatory waivers granted by the Office of Housing.
    III. Regulatory waivers granted by the Office of Public and 
Indian Housing.

I. Regulatory Waivers Granted by the Office of Community Planning and 
Development

    For further information about the following regulatory waivers, 
please see the name of the contact person that immediately follows 
the description of the waiver granted.

     Regulation: 24 CFR 58.22(a).
    Project/Activity: The Texas Department of Housing and Community 
Affairs (TDHCA) requested a waiver of HUD's environmental 
regulations at 24 CFR 58.22(a), limitations on activities pending 
clearance, for land acquisition in La Feria, Texas. This project 
became subject to 24 CFR part 58 on March 1, 2012, when Sunrise 
Terrace L.P. applied for a $1,444,000 HOME loan through TDHCA as 
part of the project financing. Other funds were used to close the 
sale of the property on September 11, 2012, prior to obtaining HUD's 
approval of a Request for Release of Funds (RROF).
    Nature of Requirement: Section 58.22 addresses limitations on 
activities pending clearance. Section 58.22(a) provides that neither 
a recipient nor any participant in the development process, 
including public or private nonprofit or for-profit entities, or any 
of their contractors, may commit HUD assistance under a program 
listed in 24 CFR 58.1(b) on an activity or project until HUD or the 
state has approved the recipient's RROF and the related 
certification from the responsible entity. In addition, until the 
RROF and the related certification have been approved, neither a 
recipient nor any participant in the development process may commit 
non-HUD funds on or undertake an activity or project under a program 
listed in 24 CFR 58.1(b) if the activity or project would have an 
adverse environmental impact or limit the choice of reasonable 
alternatives.
    Granted By: Mark Johnston, Deputy Assistant Secretary for 
Special Needs Programs.
    Date Granted: December 20, 2013.
    Reason Waived: It was determined that the project would further 
the HUD mission and would advance HUD program goals to develop 
viable, quality communities and affordable housing. It was further 
determined that the grantee unknowingly violated the regulation; no 
HUD funds were committed; and based on the environmental assessments 
and the HUD field inspection no adverse environmental impact 
resulted from the procedural error.
    Contact: Nelson A. Rivera, Office of Environment and Energy, 
Office of Community Planning and Development, Department of Housing 
and Urban Development, 451 7th Street SW., Room 7248, Washington, DC 
20410, telephone (202) 708-4225.

     Regulation: 24 CFR 58.22(a).
    Project/Activity: The City of Coralville, IO requested a waiver 
of HUD's environmental regulations at 24 CFR 58.22(a), limitations 
on activities pending clearance, for the Cedar Rapids and Iowa City 
Railroad Bridge flood control project along the Iowa River. This 
project became subject to 24 CFR Part 58 when the City applied for a 
$2.5 million CDBG grant through the Iowa Economic Development 
Administration (IEDA) as part of the project financing. The U.S. 
Department of Commerce Economic Development Administration (EDA) 
funds were used to begin construction of the project in August 2012, 
including the portion to which CDBG funds were targeted, prior to 
completion of HUD's environmental review requirements.

[[Page 14728]]

    Nature of Requirement: Section 58.22 addresses limitations on 
activities pending clearance. Section 58.22(a) provides that neither 
a recipient nor any participant in the development process, 
including public or private nonprofit or for-profit entities, or any 
of their contractors, may commit HUD assistance under a program 
listed in 24 CFR 58.1(b) on an activity or project until HUD or the 
state has approved the recipient's RROF and the related 
certification from the responsible entity. In addition, until the 
RROF and the related certification have been approved, neither a 
recipient nor any participant in the development process may commit 
non-HUD funds on or undertake an activity or project under a program 
listed in 24 CFR 58.1(b) if the activity or project would have an 
adverse environmental impact or limit the choice of reasonable 
alternatives.
    Granted By: Mark Johnston, Deputy Assistant Secretary for 
Special Needs Programs.
    Date Granted: November 21, 2013.
    Reason Waived: The flood control project furthers the HUD 
mission and advances HUD program goals to develop viable, quality 
communities by protecting businesses and residents from flooding; 
the grantee unknowingly violated the regulation; and based on the 
environmental assessments and the HUD field inspection no adverse 
environmental impact resulted from the procedural error.
    Contact: Nelson A. Rivera, Office of Environment and Energy, 
Office of Community Planning and Development, Department of Housing 
and Urban Development, 451 7th Street, SW., Room 7248, Washington, 
DC 20410, telephone (202) 708-4225.

     Regulations: 24 CFR 92.500 (d)(1)(B) and 24 CFR 
92.500(d)(1)(C).
    Project/Activity: Jefferson Parish Consortium, LA requested a 
waiver of 24 CFR 92.500(d)(1)(B) and 24 CFR 92.500(d)(1)(C) to 
provide additional time to commit and expend its annual allocation 
of HOME funds in order to facilitate the ongoing recovery from the 
devastation caused by Hurricane Isaac.
    Nature of Requirements: 24 CFR 92.500 (d)(1)(B) requires a HOME 
participating jurisdiction to commit its annual allocation of HOME 
funds within 24 months after HUD notifies the participating 
jurisdiction that it has executed the HOME Investment Partnership 
Agreement. 24 CFR 92.500(d)(1)(C) requires a HOME participating 
jurisdiction to expend its annual allocation of HOME funds within 
five years after HUD notifies the participating jurisdiction that it 
has executed the HOME Investment Partnership Agreement.
    Granted By: Mark Johnston, Deputy Assistant Secretary for 
Special Needs Programs.
    Date Granted: November 8, 2013.
    Reasons Waived: The waivers were granted to ensure the community 
is able to retain the HOME Investment Partnership funds and has 
sufficient time to complete housing activities that are needed to 
address the damage caused by Hurricane Isaac. In 2012, the 
Consortium was awarded an additional $16,453,000 of Community 
Development Block Grant Disaster Relief funds. Consequently, the 
Consortium was required to commit and expend a large amount of funds 
in a short period of time.
    Contact: Virginia Sardone, Director, Office of Affordable 
Housing Programs, Office of Community Planning and Development, 
Department of Housing and Urban Development, 451 7th Street, SW., 
Room 7164, Washington, DC 20410, telephone (202) 708-2684.

     Regulation: 24 CFR 570.200(h).
    Project/Activity: On December 13, 2013, HUD issued a CPD Notice 
implementing revised procedures to govern the submission and review 
of consolidated plans and action plans for FY 2014 funding prior to 
the enactment of a FY 2014 HUD appropriation bill. These procedures 
apply to any grantee whose program year start date for FY 2014 
funding occurs during the period starting October 1, 2013, and 
ending August 16, 2014 or 60 days after HUD announcement of FY 2014 
allocation amounts for CDBG, ESG, HOME and HOPWA formula funding 
(whichever comes first). Any grantee with an FY 2014 program year 
start date during the period starting October 1, 2013, and ending 
August 16, 2014 or 60 days after HUD announcement of FY 2014 
allocation amounts (whichever comes first), is advised not to submit 
its consolidated plan/action plan until the FY 2014 formula 
allocations have been announced.
    This waiver will apply to any Entitlement, Insular or Hawaii 
nonentitlement CDBG grantee whose program year start date for FY 
2014 funding occurs during the period starting October 1, 2013, and 
ending August 16, 2014 or 60 days after HUD announcement of FY 2014 
allocation amounts for formula program funding (whichever comes 
first). This waiver is available for use by any applicable CDBG 
grantee whose action plan submission is delayed past the normal 
submission date because of delayed enactment of FY 2014 
appropriations for the Department. This waiver authority is only in 
effect until August 16, 2014.
    Nature of Requirement: The Entitlement CDBG program regulations 
provide for situations in which a grantee may incur costs against 
its CDBG grant prior to the award of its grant from HUD. Under 24 
CFR 570.200(h) of the regulations, the effective date of a grantee's 
grant agreement is either the grantee's program year start date or 
the date that the grantee's annual action plan is received by HUD, 
whichever is later. This waiver allows grantees to treat the 
effective date of the FY 2014 program year as the grantee's program 
year start date or the date that the grantee's annual action plan is 
received by HUD, whichever is earlier.
    Granted By: Mark Johnston, Deputy Assistant Secretary for 
Special Needs Programs.
    Date Granted: December 13, 2013.
    Reason Waived: Under the provisions of the Notice, a grantee's 
action plan may not be submitted to (and thus received by) HUD until 
several months after the grantee's program year start date. Lengthy 
delays in the receipt of annual appropriations by HUD, and 
implementation of the policy to delay submission of FY 2014 Action 
Plans, may have negative consequences for CDBG grantees that intend 
to incur eligible costs prior to the award of FY 2014 funding. Some 
activities might otherwise be interrupted while implementing these 
revised procedures. In addition, grantees might not otherwise be 
able to use CDBG funds for planning and administrative costs of 
administering their programs. In order to address communities' needs 
and to ensure that programs can continue without disturbance, this 
waiver will allow grantees to incur pre-award costs on a timetable 
comparable to that under which grantees have operated in past years.
    Contact: Steve Johnson, Director, Entitlement Communities 
Division, Office of Block Grant Assistance, Office of Community 
Planning and Development, 451 7th Street SW., Room 7282, Washington, 
DC 20410, telephone (202) 708-1577.

     Regulation: 24 CFR part 576.403(c).
    Project/Activity: In response to a request from the City of 
Rockford, IL, Du Page County, IL, and the State of Illinois, HUD 
granted a limited waiver of Sec.  576.403(c) to allow Prairie State 
Legal Services to provide legal services under the homelessness 
prevention component to program participants who want to stay in 
their units, even if the units do not meet the habitability 
standards. The limited waiver also allows those program participants 
receiving the legal services to receive ESG-funded case management, 
as required by Sec.  576.401(d) and (e), even if their units do not 
meet the habitability standards. However, the limited waiver is 
contingent upon the commitment of the recipients, their 
subrecipient, Prairie State Legal Services, and the subrecipient(s) 
providing the required case management to work with the property 
owners to bring the units into compliance with the habitability 
standards or assist the program participants to move if the units 
are unsafe.
    Nature of Requirement: The regulation at Sec.  576.403(c) states 
that the recipient or subrecipient cannot use ESG funds to help a 
program participant remain in or move into housing that does not 
meet the ESG minimum habitability standards for permanent housing.
    Granted By: Mark Johnston, Deputy Assistant Secretary for 
Special Needs Programs.
    Date Granted: November 29, 2013.
    Reason Waived: HUD recognizes that in certain instances, the 
best way to help program participants avoid homelessness is to keep 
them in their housing until better housing can be located, or their 
existing housing can be brought up to code. Legal services provide 
an important resource for persons who are at risk of homelessness, 
who need immediate assistance to help them avoid moving to the 
streets or emergency shelters. In some instances, it is not feasible 
to inspect a unit to ensure that it meets the habitability standards 
prior to the provision of the legal services assistance necessary to 
prevent homelessness for the individual or family. Also in some 
cases, the habitability requirement actually prohibits eligible 
program participants from receiving the legal services that could 
assist them to make the unit habitable and stabilize them in their 
housing.

[[Page 14729]]

    Contact: Ann M. Oliva, Director, Office of Special Needs 
Assistance Programs, Office of Community Planning and Development, 
Department of Housing and Urban Development, 451 7th Street SW., 
Room 7262, Washington, DC 20410, telephone number (202) 708-4300.

II. Regulatory Waivers Granted by the Office of Housing--Federal 
Housing Administration (FHA)

    For further information about the following regulatory waivers, 
please see the name of the contact person that immediately follows 
the description of the waiver granted.

     Regulations: 24 CFR 5.801(c)(3), 202.5(g)(1), and 
202.6(c)(2).
    Program/Activity: Annual Recertifications and Renewal Fees
    Nature of Requirement: HUD's regulations at 24 CFR 5.801(c)(3), 
202.5(g)(1), and 202.6(c)(2) require Title I and Title II lenders 
and mortgagees to file their annual recertification package and 
annual renewal fees within 90 days of the end of their fiscal year.
    Granted By: Carol J. Galante, Assistant Secretary for Housing--
Federal Housing Commissioner.
    Date Granted: November 27, 2013.
    Reason Waived: All FHA-approved lenders and mortgagees with a 
fiscal year end of December 31, 2013 or later must use the Lender 
Electronic Assessment Portal (LEAP) to complete the annual 
certification, submit financial reports and pay recertification 
fees, however, because LEAP recertification functionality will not 
be deployed until after March 31, 2014, lenders and mortgagees with 
a fiscal year end of December 31, 2013 will be unable to access LEAP 
within the required timeframe. Therefore, a waiver of the 90 day 
deadline for FHA-approved lenders and mortgagees with a fiscal year 
end of December 31, 2013, was necessary and the filing date was 
extended until 30 days after the deployment of LEAP recertification 
functionality.
    Contact: Joy Hadley, Director of Office of Lender Activities and 
Program Compliance, Department of Housing and Urban Development, 451 
7th Street SW., Room 3214, Washington, DC 20410, telephone (202) 
708-1515.

     Regulation: Mortgagee Letter 2011-22.
    Program/Activity: Certain FHA-Insured Condominiums
    Nature of Requirement: HUD's Mortgagee Letter 2011-22 requires 
master/blanket hazard, flood, liability and other insurance 
requirements for Manufactured Housing Condominium Projects (MHCP), 
Detached Condominium Housing Projects (DCHP), and Common Interest 
Housing Development (CIHD).
    Granted By: Carol J. Galante, Assistant Secretary for Housing--
Federal Housing Commissioner.
    Date Granted: November 27, 2013.
    Reason Waived: The waiver of the master/blanket hazard, flood, 
liability and other insurance requirements contained in Mortgagee 
Letter 2011-22 was necessary because MHCPs, DCHPs, and CIHDs could 
not practicably satisfy these requirements. Therefore, it was 
determined that allowing the individual unit owner to obtain and 
maintain their own insurances should be allowed.
    Contact: Joanne Kuczma, Office of Housing, Department of Housing 
and Urban Development, 451 7th Street SW., Room 9278, Washington, DC 
20410, telephone (202) 708-2121.

     Regulation: 24 CFR 219.220(b).
    Project/Activity: Oak Creek Townhomes, FHA Project Number 013-
030NI, Auburn, New York. The owners have requested deferral of 
repayment of the Flexible Subsidy Operating Assistance Loan on this 
project due to their inability to repay the loan in full upon 
maturity.
    Nature of Requirement: Section 219.220(b) governs the repayment 
of operating assistance provided under the Flexible Subsidy Program 
for Troubled Projects prior to May 1, 1996 states: ``Assistance that 
has been paid to a project owner under this subpart must be repaid 
at the earlier of the expiration of the term of the mortgage, 
termination of mortgage insurance, prepayment of the mortgage, or a 
sale of the project . . .'' Either of these actions would typically 
terminate FHA involvement with the property, and the Flexible 
Subsidy Loan would be repaid, in whole, at that time.
    Granted By: Carol J. Galante, Assistant Secretary for Housing--
Federal Housing Commissioner.
    Date Granted: November 21, 2013.
    Reason Waived: The owner requested and was granted waiver of the 
requirement to defer repayment of the Flexible Subsidy Operating 
Assistance Loan to allow the much needed preservation and moderate 
rehabilitation of the project. The project will be preserved as an 
affordable housing resource for an additional 32 years for the 
residents of Auburn.
    Contact: Mark B. Van Kirk, Director, Office of Asset Management, 
Office of Housing, Department of Housing and Urban Development, 451 
7th Street SW., Room 6160, Washington, DC 20410, telephone (202) 
708-3730.

     Regulation: 24 CFR 219.220(b).
    Project/Activity: Canaan Village Apartments, FHA Project Number 
064-35452, Shreveport, Louisiana. The owner has requested to defer 
repayment of the Flexible Subsidy Operating Assistance Loan due to 
their inability to pay the loan in full upon maturity.
    Nature of Requirement: Section 219.220(b) governs the repayment 
of operating assistance provided under the Flexible Subsidy Program 
for Troubled Projects prior to May 1, 1996 states: ``Assistance that 
has been paid to a project owner under this subpart must be repaid 
at the earlier of the expiration of the term of the mortgage, 
termination of mortgage insurance, prepayment of the mortgage, or a 
sale of the project . . .'' Either of these actions would typically 
terminate FHA involvement with the property, and the Flexible 
Subsidy Loan would be repaid, in whole, at that time.
    Granted By: Carol J. Galante, Assistant Secretary for Housing--
Federal Housing Commissioner.
    Date Granted: October 29, 2013.
    Reason Waived: Waiver of this regulation has been granted 
because the Owner has demonstrated that deferral of repayment of the 
Flexible Subsidy Operating Assistance Loan will allow the re-
amortization of the loan and completion of much needed repairs at 
the project. Waiving the requirement will recapitalize the project 
and provide its long-term preservation as an affordable housing 
resource to 40 years.
    Contact: Mark B. Van Kirk, Director, Office of Asset Management, 
Office of Housing, Department of Housing and Urban Development, 451 
7th Street SW., Room 6160, Washington, DC 20410, telephone (202) 
708-3730.

     Regulation: 24 CFR 219.220(b).
    Project/Activity: Christ Church Apartments, FHA Project Number 
083-44087, Lexington, Kentucky. The owner has requested deferral of 
repayment of the Flexible Subsidy Operating Assistance Loan due to 
their inability to pay the loan in full upon maturity.
    Nature of Requirement: Section 219.220(b) governs the repayment 
of operating assistance provided under the Flexible Subsidy Program 
for Troubled Projects prior to May 1, 1996 states: ``Assistance that 
has been paid to a project owner under this subpart must be repaid 
at the earlier of the expiration of the term of the mortgage, 
termination of mortgage insurance, prepayment of the mortgage, or a 
sale of the project . . .'' Either of these actions would typically 
terminate FHA involvement with the property, and the Flexible 
Subsidy Loan would be repaid, in whole, at that time.
    Granted By: Carol J. Galante, Assistant Secretary for Housing--
Federal Housing Commissioner.
    Date Granted: November 7, 2013.
    Reason Waived: It was determined that providing for waiver of 
this regulation would allow the owner to defer repayment of the 
Flexible Subsidy Operating Assistance Loan and preserve the project 
as affordable housing for the elderly and handicapped citizens of 
Lexington, Kentucky. The deferment would assure the property's 
affordability for an additional 20 years.
    Contact: Mark B. Van Kirk, Director, Office of Asset Management, 
Office of Housing, Department of Housing and Urban Development, 451 
7th Street SW., Room 6160, Washington, DC 20410, telephone (202) 
708-3730.

     Regulation: 24 CFR 219.220(b).
    Project/Activity: Allegheny Union Baptist, FHA Project Number 
033-SH009, Pittsburgh, Pennsylvania. The owner has requested 
deferral of repayment of the Flexible Subsidy Operating Assistance 
Loan due to their inability to pay the loan in full upon maturity.
    Nature of Requirement: Section 219.220(b) governs the repayment 
of operating assistance provided under the Flexible Subsidy Program 
for Troubled Projects prior to May 1, 1996 states: ``Assistance that 
has been paid to a project owner under this subpart must be repaid 
at the earlier of the expiration of the term of the mortgage, 
termination of mortgage insurance, prepayment of the mortgage, or a 
sale of the project . . .'' Either of these actions would typically 
terminate FHA involvement with the property, and the Flexible 
Subsidy Loan would be repaid, in whole, at that time.

[[Page 14730]]

    Granted By: Carol J. Galante, Assistant Secretary for Housing--
Federal Housing Commissioner.
    Date Granted: November 4, 2013.
    Reason Waived: The owner requested and was granted waiver of the 
requirement to defer repayment of the Flexible Subsidy Operating 
Assistance Loan because there were insufficient funds available to 
repay the loan upon maturity. The owner advised that it planned to 
rehabilitate the senior building, creating more spacious units, 
using energy-efficient practices and providing vital amenities that 
allow the elderly residents to age in place. The deferment would 
assure the property's affordability for an additional 20 years.
    Contact: Mark B. Van Kirk, Director, Office of Asset Management, 
Office of Housing, Department of Housing and Urban Development, 451 
7th Street SW., Room 6160, Washington DC 20410, telephone (202) 708-
3730.

     Regulation: 24 CFR 219.220(b).
    Project/Activity: Quincy Point Homes III, FHA Project Number 
023-44809, Quincy, Maine. The owners have requested deferral of 
repayment of the Flexible Subsidy Operating Assistance Loan on this 
project due to their inability to repay the loan in full upon 
maturity.
    Nature of Requirement: Section 219.220(b) governs the repayment 
of operating assistance provided under the Flexible Subsidy Program 
for Troubled Projects prior to May 1, 1996 states: ``Assistance that 
has been paid to a project owner under this subpart must be repaid 
at the earlier of the expiration of the term of the mortgage, 
termination of mortgage insurance, prepayment of the mortgage, or a 
sale of the project . . .'' Either of these actions would typically 
terminate FHA involvement with the property, and the Flexible 
Subsidy Loan would be repaid, in whole, at that time.
    Granted By: Carol J. Galante, Assistant Secretary for Housing--
Federal Housing Commissioner.
    Date Granted: December 20, 2013.
    Reason Waived: The owner requested and was granted waiver of the 
requirement to defer repayment of the Flexible Subsidy Operating 
Assistance Loan to allow the much needed preservation and moderate 
rehabilitation of the project. The project will be preserved as an 
affordable housing resource for an additional 20 years for the 
residents of Quincy.
    Contact: Minnie Monroe-Baldwin, Director of Preservation, Office 
of Affordable Housing Preservation, Office of Housing, Department of 
Housing and Urban Development, 451 7th Street SW., Washington, DC 
20410, telephone (202) 402-2636.

     Regulation: 24 CFR 232.7.
    Project/Activity: Dolan Residential Care (Dolan) serves dementia 
care residents and operates out of five separate buildings. The 
facilities are licensed for 51 residents in total. The buildings are 
located in St. Louis, MO.
    Nature of Requirement: The regulation mandates in a board and 
care home or assisted living facility that the not less than one 
full bathroom must be provided for every four residents. Also, the 
bathroom cannot be accessed from a public corridor or area.
    Granted By: Carol J. Galante, Assistant Secretary for Housing--
Federal Housing Commissioner.
    Date Granted: November 27, 2013.
    Reason Waived: It was determine that the dementia care residents 
of Dolan all need assistance with bathing. The bathrooms/shower 
rooms provide enough space for staff to safely assist the residents. 
Dolan has concluded that this arrangement is safer for the 
residents.
    Contact: Vance T. Morris, Special Assistant, Office of 
Healthcare Program, Office of Housing, Department of Housing and 
Urban Development, 451 7th Street SW., Room 2337, Washington, DC 
20410, telephone (202) 402-2419.

     Regulation: 24 CFR 290.30.
    Project/Activity: San Augustine Development Center (located in 
the County of San Augustine, in the State of Texas) has been in two 
different Note Sales--at which time the Office of Healthcare 
Programs (OHP) has not accepted the bids. OHP has now received a 
proposal from the County (coordinated by County Judge Samye Johnson) 
to purchase the note in an amount greater than the two competitive 
bids. This proposal was made on a non-competitive basis and 
therefore does not meet the requirement in 24 CFRSec.  290.30, which 
requires that HUD sell HUD-held multifamily mortgages on a 
competitive basis.
    Nature of Requirement: Section 290.30 of HUD's regulations 
requires that HUD shall sell HUD-held multifamily mortgages on a 
competitive basis.
    Granted By: Carol J. Galante, Assistant Secretary for Housing--
Federal Housing Commissioner.
    Date Granted: December 18, 2013.
    Reason Waived: It was determined that the amount proposed by the 
County would be substantially higher than the highest bids in the 
previous attempts to sell the note competitively, and the County 
proposed to use the facility to promote services to the residents of 
the County, which is in line with HUD's mission.
    Contact: Vance T. Morris, Special Assistant, Office of 
Healthcare Program, Office of Housing, Department of Housing and 
Urban Development, 451 7th Street SW., Room 2337, Washington, DC 
20410, telephone (202) 402-2419.

     Regulation: 24 CFR 891.100(d).
    Project/Activity: Valor Apartments, Seattle, WA, Project Number: 
127-HD045/WA19-Q101-004.
    Nature of Requirement: Section 891.100(d) prohibits amendment of 
the amount of the approved capital advance funds prior to closing.
    Granted By: Carol J. Galante, Assistant Secretary for Housing--
Federal Housing Commissioner.
    Date Granted: December 16, 2013.
    Reason Waived: The project is economically designed and 
comparable in cost to similar projects in the area, and the sponsor/
owner exhausted all efforts to obtain additional funding from other 
sources.
    Contact: Catherine M. Brennan, Director, Office of Housing 
Assistance and Grant Administration, Office of Housing, Department 
of Housing and Urban Development, 451 7th Street SW., Room 6134, 
Washington, DC 20410-8000, telephone (202) 708-3000.

     Regulation: 24 CFR 891.165.
    Project/Activity: Westcliff Heights Senior Apartments, Las 
Vegas, NV, Project Number: 125-EE131/NV25-S081-001.
    Nature of Requirement: Section 891.165 provides that the 
duration of the fund reservation of the capital advance is 18 months 
from the date of issuance with limited exceptions up to 36 months, 
as approved by HUD on a case-by-case basis.
    Granted By: Carol J. Galante, Assistant Secretary for Housing--
Federal Housing Commissioner.
    Date Granted: November 1, 2013.
    Reason Waived: Additional time was needed due to unexpected 
construction cost increases and complexities involved in the 
proposed financing structure for this capital advance upon 
completion project to reach initial closing.
    Contact: Catherine M. Brennan, Director, Office of Housing 
Assistance and Grant Administration, Office of Housing, Department 
of Housing and Urban Development, 451 7th Street SW., Room 6134, 
Washington, DC 20410, telephone (202) 708-3000.

III. Regulatory Waivers Granted by the Office of Public and Indian 
Housing

    For further information about the following regulatory waivers, 
please see the name of the contact person that immediately follows 
the description of the waiver granted.

     Regulation: 24 CFR 941.606(n)(1)(ii).
    Project/Activity: South Mississippi Housing and Development 
Corporation, MS/Sanderson Village Homes.
    Nature of Requirement: The provision requires that the PHA shall 
submit certifications and assurances warranting that it ``will use 
an open and competitive process to select the partner and/or the 
owner entity and shall ensure that there is no conflict of 
interested involved in the PHA's selection or the partner and/or 
ownership entity to develop and operate the proposed public housing 
units.''
    Granted By: Sandra B. Henriquez, Assistant Secretary for Public 
and Indian Housing.
    Date Granted: October 21, 2013.
    Reason Waived: HUD reviewed, and acknowledged South Mississippi 
Housing and Development Corporation (SMHD) decisions to procure 
Landmark development Services, LLC through a noncompetitive 
proposal, as permitted under 24 CFR 85.36(d)(4). As a result of this 
action, SMHD could not submit the required certifications and 
assurances that it would use an open and competitive process to 
select its partners, as required under 24 CFR 941.606(n)(l)(ii), as 
part of its mixed-finance proposal for Sanderson Village Homes. 
Therefore, good cause was found to waive 24 CFR 941.606(n)(l)(ii) 
for the limited purpose of selecting Landmark Development Services, 
LLC as the development partner for this project.
    Contact: Dominique Blom, Deputy Assistant Secretary for the 
Office of Public Housing Investments, Office of Public and

[[Page 14731]]

Indian Housing, Department of Housing and Urban Development, 451 7th 
Street SW., Room 4130, Washington, DC 20140, telephone (202) 402-
4181.

     Regulation: 24 CFR 982.503(c), 982.503(c)(4)(ii) and 
982.503(c)(5).
    Project/Activity: Burleigh County Housing Authority (BCHA), 
Burleigh County, ND.
    Nature of Requirement: Section 982.503(c) of HUD's regulations 
establishes the methodology for establishing exception payment 
standards for an area. Section 982.503(c)(4)(ii) states that HUD 
will only approve an exception payment standard amount after six 
months from the date of HUD approval of an exception payment 
standard amount above 110 percent to 120 percent of the published 
fair market rent (FMR). Section 982.503(c)(5) states that the total 
population of a HUD-approved exception area in an FMR area may not 
include more than 50 percent of the population of the FMR area.
    Granted By: Sandra B. Henriquez, Assistant Secretary for Public 
and Indian Housing.
    Date Granted: November 26, 2013.
    Reason Waived: These waivers were granted because on June 6, 
2012, due a shock to the rental housing market in the Bismarck, ND, 
the fair market rent (FMR) area caused by increased economic 
activity due to natural resource exploration. These waivers were 
allowed to remain in effect since the conditions originally cited 
still exist.
    Contact: Laure Rawson, Director, Housing Voucher Management and 
Operations Division, Office of Public Housing and Voucher Programs, 
Office of Public and Indian Housing, Department of Housing and Urban 
Development, 451 7th St. SW., Room 4216, Washington, DC 20410, 
telephone (202) 708-0477.

     Regulation: 24 CFR 982.505(d).
    Project/Activity: Howard County Housing Commission (HCHC), 
Columbia, MD.
    Nature of Requirement: Section 982.505(d) of HUD's regulations 
states that a public housing agency may only approve a higher 
payment standard for a family as a reasonable accommodation if the 
higher payment standard is within the basic range of 90 to 110 
percent of the fair market rent (FMR) for the unit size.
    Granted By: Sandra B. Henriquez, Assistant Secretary for Public 
and Indian Housing.
    Date Granted: December 11, 2013.
    Reason Waived: The participant, who is a person with 
disabilities, required an exception payment standard to move to a 
two-bedroom unit (although only eligible for a one-bedroom voucher) 
that met her needs. To provide this reasonable accommodation so that 
the client could move to a new unit and pay no more than 40 percent 
of its adjusted income toward the family share, the HCHC was allowed 
to approve an exception payment standard that exceeded the basic 
range of 90 to 110 percent of the FMR.
    Contact: Laure Rawson, Director, Housing Voucher Management and 
Operations Division, Office of Public Housing and Voucher Programs, 
Office of Public and Indian Housing, Department of Housing and Urban 
Development, 451 7th Street SW., Room 4216, Washington, DC 20410, 
telephone (202) 708-0477.

     Regulation: 24 CFR 982.505(d).
    Project/Activity: Housing Authority of Grays Harbor County 
(HAGHC), Aberdeen, WA.
    Nature of Requirement: Section 982.505(d) states that a public 
housing agency may only approve a higher payment standard for a 
family as a reasonable accommodation if the higher payment standard 
is within the basic range of 90 to 110 percent of the fair market 
rent (FMR) for the unit size.
    Granted By: Sandra B. Henriquez, Assistant Secretary for Public 
and Indian Housing.
    Date Granted: November 4, 2013.
    Reason Waived: The participant, who is a person with 
disabilities, required an exception payment standard to move to a 
unit that met her needs. To provide this reasonable accommodation so 
that the client could move to a new unit and pay no more than 40 
percent of her adjusted income toward the family share, the HAGHC 
was allowed to approve an exception payment standard that exceeded 
the basic range of 90 to 110 percent of the FMR.
    Contact: Laure Rawson, Director, Housing Voucher Management and 
Operations Division, Office of Public Housing and Voucher Programs, 
Office of Public and Indian Housing, Department of Housing and Urban 
Development, 451 7th Street SW., Room 4216, Washington, DC 20410, 
telephone (202) 708-0477.

     Regulation: 24 CFR 983.259(a).
    Project/Activity: Michigan State Housing Development Authority 
(MSHDA), Lansing, MI.
    Nature of Requirement: This regulation states that in the 
project-based voucher (PBV) program, the PHA's subsidy standards 
determine the appropriate unit size for the family size and 
composition. If the PHA determines that a family is occupying a 
wrong-size unit, the PHA must promptly notify the family and owner 
of this determination and of the PHA's offer of continued assistance 
in another unit which could include PBV assistance in an 
appropriate-size unit in the same or other building, other project-
based assistance, tenant-based rental assistance, or other 
comparable public or private tenant-based assistance.
    Granted By: Sandra B. Henriquez, Assistant Secretary for Public 
and Indian Housing.
    Date Granted: December 6, 2013.
    Reason Waived: This regulation was waived in order to protect 
families (many elderly and/or disabled) living in PBV units that 
would be affected by MSHDA's change in subsidy standards by 
requiring them to move. If and when these families move from their 
current PBV units, the new subsidy standards would apply.
    Contact: Laure Rawson, Director, Housing Voucher Management and 
Operations Division, Office of Public Housing and Voucher Programs, 
Office of Public and Indian Housing, Department of Housing and Urban 
Development, 451 7th Street SW., Room 4210, Washington, DC 20410, 
telephone (202) 708-0477.

     Regulation: 24 CFR 984.303(d).
    Project/Activity: Vacaville Housing Authority (VHA), Vacaville, 
CA.
    Nature of Requirement: This regulation limits extensions of 
Family Self-Sufficiency (FSS) contracts by a public housing agency 
to two years beyond the initial five-year term of the FSS contract.
    Granted By: Sandra B. Henriquez, Assistant Secretary for Public 
and Indian Housing.
    Date Granted: December 19, 2013.
    Reason Waived: The failure to complete the contract within the 
contract term was due to an injury at work and the elimination of 
the FSS participant's job position. Therefore, additional time was 
approved for the completion of the FSS contract.
    Contact: Laure Rawson, Director, Housing Voucher Management and 
Operations Division, Office of Public Housing and Voucher Programs, 
Office of Public and Indian Housing, Department of Housing and Urban 
Development, 451 7th Street SW., Room 4210, Washington, DC 20410, 
telephone (202) 708-0477.

     Regulation: 24 CFR 984.303(b)(1).
    Project/Activity: Housing Opportunities Commission of Montgomery 
County (HOC), Kensington, MD.
    Nature of Requirement: This regulation states that the Family 
Self-Sufficiency (FSS) contract of participation shall be in the 
form prescribed by HUD. The form prescribed by HUD (form HUD-52650) 
requires the effective date to be the first day of the month 
following the date the contract was signed by the family and the 
PHA's representative.
    Granted By: Sandra B. Henriquez, Assistant Secretary for Public 
and Indian Housing.
    Date Granted: November 21, 2013.
    Reason Waived: The FSS participant's contract was lost due to no 
fault of her own and the contract would have had an effective date 
of March 1, 2013. Therefore, the contract was allowed to have an 
effective date of March 1, 2013.
    Contact: Laure Rawson, Director, Housing Voucher Management and 
Operations Division, Office of Public Housing and Voucher Programs, 
Office of Public and Indian Housing, Department of Housing and Urban 
Development, 451 Seventh Street SW., Room 4210, Washington, DC 
20410, telephone (202) 708-0477.

     Regulation: 24 CFR 985.101(a).
    Project/Activity: City of Crescent City Housing Authority 
(CCCHA), Crescent City, CA.
    Nature of Requirement: Section 985.101(a) states a PHA must 
submit the HUD-required Section Eight Management Assessment Program 
(SEMAP) certification form within 60 calendar days after the end of 
its fiscal year.
    Granted By: Sandra B. Henriquez, Assistant Secretary for Public 
and Indian Housing.
    Date Granted: November 4, 2013.
    Reason Waived: This waiver was granted since the Executive 
Director was on maternity leave and no one else had rights in the 
Public and Indian Housing Information Center to submit the SEMAP 
certification. CCCHA was permitted to submit its SEMAP certification 
after the due date.

[[Page 14732]]

    Contact: Laure Rawson, Director, Housing Voucher Management and 
Operations Division, Office of Public Housing and Voucher Programs, 
Office of Public and Indian Housing, Department of Housing and Urban 
Development, 451 7th Street SW., Room 4210, Washington, DC 20410, 
telephone (202) 708-0477.

     Regulation: 24 CFR 985.101(a).
    Project/Activity: Spartanburg Housing Authority (SHA), 
Spartanburg, SC.
    Nature of Requirement: Section 985.101(a) states a PHA must 
submit the HUD-required Section Eight Management Assessment Program 
(SEMAP) certification form within 60 calendar days after the end of 
its fiscal year.
    Granted By: Sandra B. Henriquez, Assistant Secretary for Public 
and Indian Housing.
    Date Granted: December 23, 2013.
    Reason Waived: This waiver was granted since the Section 8 
Program Manager attempted to submit the SEMAP certification on 
November 25, 2013, but the program timed out. Subsequently, her 
husband became very ill and she was unable to complete the task; in 
addition, she did not make anyone in the office aware of her failure 
to submit. SHA was permitted to submit its SEMAP certification after 
the due date.
    Contact: Laure Rawson, Director, Housing Voucher Management and 
Operations Division, Office of Public Housing and Voucher Programs, 
Office of Public and Indian Housing, Department of Housing and Urban 
Development, 451 7th Street SW., Room 4210, Washington, DC 20410, 
telephone (202) 708-0477.

     Regulation: FR-5729-N-01: Partial Section Eight 
Management Assessment Program (SEMAP) Indicator Waiver; Family Self-
Sufficiency (FSS) Program Demonstration.
    Project/Activity: The waiver, Partial Section Eight Management 
Assessment Program (SEMAP) Indicator Waiver; Family Self-Sufficiency 
(FSS) Program Demonstration, published on December 30, 2013, at 78 
FR 79310, was issued to establish a temporary modification to the 
rating of enrollment and escrow accounts for public housing agencies 
(PHAs) with mandatory Housing Choice Voucher (HCV) Family Self-
Sufficiency (FSS) programs that voluntarily participate in HUD's 
study of the FSS program to facilitate the participation of PHAs in 
the study. The PHAs participating in the study have the option to 
comply with certain alternative requirements to existing 
regulations, and if they opted to do so the existing regulations 
would be waived.
    Nature of Requirement: The modification to the requirements that 
were offered under the waiver were the following: The waiver allows 
the rating of SEMAP indicator, ``Family self-sufficiency (FSS) 
enrollment and escrow accounts'', to be calculated solely by the 
percentage of mandatory FSS slots that have been filled for 
participating PHAs during the second and third full reporting 
periods ending after the PHA's enrollment in the study, which would 
be a waiver of the requirement to calculate the rating using also 
the percent of FSS families with escrow balances in 24 CFR 985.3(o). 
The waiver would allow PHAs participating in the study to elect to 
have the SEMAP performance indicator for FSS enrollment and escrow 
accounts rated in this manner by refraining from submitting data for 
SEMAP indicator item 14b of form HUD-52648, which is a partial 
waiver of the requirement that all PHAs administering a Section 8 
tenant-based assistance program are required annually to submit a 
SEMAP Certification form concerning performance under the fourteen 
SEMAP indicators in 24 CFR 985.101.
    Granted By: Sandra B. Henriquez, Assistant Secretary for Public 
and Indian Housing.
    Date Granted: December 30, 2013.
    Reason Waived: The waivers and alternative requirements were 
granted because they would help facilitate the participation of PHAs 
in a study to determine whether FSS program features, rather than 
the characteristics of the participating families, cause participant 
incomes to increase. PHAs participating in the study may experience 
unintended consequences including a decreased rating on the Section 
8 Management Assessment Program (SEMAP) performance indicator that 
specifically measures for the percentage of families with escrow 
balances, and the waiver eliminates this concern.
    Contact: Regina Gray, PhD, Office of Policy Development and 
Research, Office of Public and Indian Housing, Department of Housing 
and Urban Development, 451 7th Street SW., Room 8132, Washington, DC 
20410, telephone number (202) 402-2876.

[FR Doc. 2014-05803 Filed 3-14-14; 8:45 am]
BILLING CODE 4210-67-P