[Federal Register Volume 84, Number 24 (Tuesday, February 5, 2019)]
[Notices]
[Pages 1777-1782]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-01077]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-6101-N-03]


Notice of Regulatory Waiver Requests Granted for the Third 
Quarter of Calendar Year 2018

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 July 1, 2018 and ending on September 30, 2018.

FOR FURTHER INFORMATION CONTACT: For general information about this 
notice, contact Ariel Pereira, Associate General Counsel for 
Legislation and Regulations, Department of Housing and Urban 
Development, 451 Seventh Street SW, Room 10282, Washington, DC 20410-
0500, telephone 202-708-3055 (this is not a toll-free number). Persons 
with hearing- or speech-impairments may access this number through TTY 
by calling the toll-free Federal Relay Service at 800-877-8339.
    For information concerning a particular waiver that was granted and 
for which public notice is provided in this document, contact the 
person whose name and address follow the description of the waiver 
granted in the accompanying list of waivers that have been granted in 
the third quarter of calendar year 2018.

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

[[Page 1778]]

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 July 
1, 2018 through September 30, 2018. 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 third quarter of calendar 
year 2018) before the next report is published (the fourth quarter of 
calendar year 2018), 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: January 30, 2019.
J. Paul Compton, Jr.,
General Counsel.

Appendix

Listing of Waivers of Regulatory Requirements Granted by Offices of the 
Department of Housing and Urban Development July 1, 2018 Through 
September 30, 2018

    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 576.106(d)(1).
    Project/Activity: HUD granted a waiver of 24 CFR 576.106(d)(1) 
to the Washington State Department of Commerce to allow its 
subrecipient, the Whatcom County Health Department (WCHD), to use 
Fiscal Year (FY) 2016 and 2017 Emergency Solutions Grants (ESG) 
Program Rapid Re-housing (RRH) and Homelessness Prevention (HP) 
funds in Whatcom County for housing units with rents up to 118 
percent of the HUD-established Fair Market Rent (FMR). The waiver of 
24 CFR 576.106(d)(1) is provided for individuals and families who 
begin receiving ESG rental assistance during the 1-year period 
beginning on the date of the waiver memorandum (August 7, 2018). 
WCHD must still comply with the rent reasonableness requirements in 
24 CFR 576.106(d)(1).
    Nature of Requirement: Under 24 CFR 576.106(d)(1), rental 
assistance cannot be provided unless the total rent is equal to or 
less than the FMR established by HUD, as provided under 24 CFR part 
888, and complies with HUD's standard of rent reasonableness, as 
established under 24 CFR 982.507.
    Granted By: Neal Rackleff, Assistant Secretary for Community 
Planning and Development.
    Date Granted: August 7, 2018.
    Reason Waived: HUD granted the waiver because the recipient 
sufficiently documented its subrecipient's inability to provide 
adequate ESG program rental assistance under the current rental 
market conditions in Whatcom County. Specifically, HUD determined 
that the 1.8 percent rental vacancy rate in Whatcom County, higher-
than-average poverty rate, high demand for low cost rental units, 
and lack of available units at or below FMR have resulted in 
prolonged, costly and often futile housing search efforts, 
participating households remaining homeless for increased periods of 
time, and inability of the subrecipient to expend all of its ESG 
funds.
    Contact: Norm Suchar, Director, Office of Special Needs 
Assistance Programs, Office of Community Planning and Development, 
Department of Housing and Urban Development, 451 Seventh Street SW, 
Room 7262, Washington, DC 20410, telephone (202) 708-4300.
     Regulation: 24 CFR 576.106(d)(1).
    Project/Activity: HUD granted a waiver of 24 CFR 576.106(d)(1) 
to the State of California Department of Housing and Community 
Development (DHCD) to allow its subrecipient, Families in Transition 
(FIT) of Santa Cruz County, to use Fiscal Year (FY) 2016 Emergency 
Solutions Grants (ESG) Program Rapid Re-housing (RRH) funds in Santa 
Cruz County for housing units with rents up to the payment standard 
adopted by the Santa Cruz housing authority. The waiver of 24 CFR 
576.106(d)(1) is provided for individuals and families who begin 
receiving ESG RRH rental assistance during the 1-year period 
beginning on the date of the waiver memorandum (August 7, 2018). 
DHCD and its subrecipients must still comply with the rent 
reasonableness requirements in 24 CFR 576.106(d)(1).
    Nature of Requirement: Under 24 CFR 576.106(d)(1), rental 
assistance cannot be provided unless the total rent is equal to or 
less than the FMR established by HUD, as provided under 24 CFR part 
888, and complies with HUD's standard of rent reasonableness, as 
established under 24 CFR 982.507.
    Granted By: Neal Rackleff, Assistant Secretary for Community 
Planning and Development.
    Date Granted: August 7, 2018.
    Reason Waived: HUD granted the waiver because the recipient 
sufficiently documented its subrecipient's inability to provide 
adequate ESG rental assistance under the current rental market 
conditions in Santa Cruz County. Specifically, HUD determined that 
the 2.4 percent rental vacancy rate in Santa Cruz County, extremely 
high demand for rental units at or below FMR, lack of available 
units at or below FMR, and stringent tenant screening criteria by 
many landlords (such as requiring monthly incomes at least 3 times 
FMR) have resulted in participating households remaining homeless 
for average periods of 9 to 12

[[Page 1779]]

months before being housed, and participants securing only units 
with rents above FMR (for which ESG rental assistance could not be 
used).
    Contact: Norm Suchar, Director, Office of Special Needs 
Assistance Programs, Office of Community Planning and Development, 
Department of Housing and Urban Development, 451 Seventh Street SW, 
Room 7262, Washington, DC 20410, telephone (202) 708-4300.

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

    For further information about the following regulatory waivers, 
please see the name of the contact person that immediately follows 
the description of the waiver granted.
     Regulation: 24 CFR 200.73 (c).
    Project/Activity: Heritage Crossing II, Baltimore, Maryland, 
Project No. 052-35810
    Nature of Requirement: HUD's regulation at 24 CFR 200.73 (c) 
requiring that ``not less than five rental dwelling units [of an FHA 
insured multifamily housing project] shall be on one site. The 
property is a large, scattered-site portfolio of 75 apartment 
properties on 72 separate parcels of which some are contiguous, but 
most are not: 4 of the 72 parcels contain 5 or more single units 
that are contiguously situated (totaling 24 units) and therefore 
comply with HUD ``Scattered Sites'' requirements; however, the 
remaining 68 parcels contain less than 5 units each (totaling 51 
units), and are therefore non-contiguous separate sites.
    Granted by: Brian D. Montgomery, Assistant Secretary for 
Housing-Federal Housing Commissioner.
    Date Granted: August 28, 2018.
    Reason Waived: The waiver will meet HUD's goal of preserving and 
maintaining affordable rental housing for low income families. The 
proposed FHA-insured loan/RAD conversion will preserve and 
rehabilitate necessary affordable housing and will contribute to the 
revitalization of this Baltimore community.
    Contact: Patricia M. Burke, Acting Director, Office of 
Multifamily Production, HTD, Office of Housing, Department of 
Housing and Urban Development, 451 Seventh Street SW, Room 6130, 
Washington, DC 20410, telephone (202)402-5693.
    Regulation: 24 CFR 266.200(b)(2).
    Project/Activity: Federal Financing Bank (FFB) Risk Sharing 
Program regulations for thirteen (13) additional projects for a 
total of 53 projects, Risk Sharing Initiative through Calendar Year 
2019, Substantial Rehabilitation, Massachusetts Housing Finance 
Agency (Mass Housing), Boston, Massachusetts, no project names 
listed.
    Nature of Requirement: The Waiver of 24 CFR 266.200(b)(2), 
Substantial Rehabilitation. The Department will permit the revised 
definition of substantial rehabilitation (S/R) as described in the 
revised MAP Guide published on January 29, 2016, such that S/R is: 
Any scope of work that either (a) Exceeds in aggregate cost a sum 
equal to the `base per dwelling unit limit' times the applicable 
High Cost Factor, or (b) Replacement of two or more building 
systems. `Replacement' is when the cost of replacement work exceeds 
50 percent of the cost of replacing the entire system.
    The High Cost Factors for 2018 were recently published through a 
Housing Notice (HN) on May 23, 2018 and the revised statutory limits 
were published in the Federal Register on November 7, 2017. The 2018 
base dwelling unit amount to determine substantial rehabilitation 
for FHA insured loan programs has been increased from $15,000 
(changed from $6,500 per unit in the 2016 MAP guide) to $15,636. 
This amount will change annually based upon the change in the annual 
Consumer Price Index (CPI), along with the statutory limits or other 
inflation cost index published by HUD.
    Granted By: Brian D. Montgomery, Assistant Secretary for 
Housing- Federal Housing Commissioner.
    Date Granted: September 21, 2018.
    Reason Waived: Granted waivers of certain provisions of the 
Federal Financing Bank (FFB) Risk-Sharing Program regulations for 
thirteen (13) projects utilizing the Federal Financing Bank (FFB) 
Risk-Sharing Initiative through the end of Calendar Year 2019. Under 
this initiative, FFB provides capital to participating Housing 
Finance Agencies (HFAs) to make multifamily loans insured under the 
Multifamily Risk Sharing Program.
    Contact: Patricia M. Burke, Acting Director, Office of 
Multifamily Production, HTD, Office of Housing, Department of 
Housing and Urban Development, 451 Seventh Street SW, Room 6130, 
Washington, DC 20410, telephone (202) 402-5693.
    Regulation: 24 CFR 266.200(b)(2).
    Project/Activity: Federal Financing Bank (FFB) Risk-Sharing 
Program regulations for an additional five (5) projects for a total 
of 25 projects utilizing the Federal Financing Bank (FFB) Risk-
Sharing Initiative through the end of Calendar Year 2019, 
Substantial Rehabilitation, the Massachusetts Housing Partnership 
(MHP), Boston, Massachusetts, no project names listed.
    Nature of Requirement: The Waiver of 24 CFR 266.200(b)(2), 
Substantial Rehabilitation. The Department will permit the revised 
definition of substantial rehabilitation (S/R) as described in the 
revised MAP Guide published on January 29, 2016, such that S/R is: 
Any scope of work that either (a) Exceeds in aggregate cost a sum 
equal to the `base per dwelling unit limit' times the applicable 
High Cost Factor, or (b) Replacement of two or more building 
systems. `Replacement' is when the cost of replacement work exceeds 
50 percent of the cost of replacing the entire system.
    The High Cost Factors for 2018 were recently published through a 
Housing Notice (HN) on May 23, 2018 and the revised statutory limits 
were published in the Federal Register on November 7, 2017. The 2018 
base dwelling unit amount to determine substantial rehabilitation 
for FHA insured loan programs has been increased from $15,000 
(changed from $6,500 per unit in the 2016 MAP guide) to $15,636. 
This amount will change annually based upon the change in the annual 
Consumer Price Index (CPI), along with the statutory limits or other 
inflation cost index published by HUD.
    Granted By: Brian D. Montgomery, Assistant Secretary for 
Housing-Federal Housing Commissioner.
    Date Granted: September 21, 2018.
    Reason Granted: Under this initiative, FFB provides capital to 
participating Housing Finance Agencies (HFAs) to make multifamily 
loans insured under the FHA Multifamily Risk Sharing Program. 
Granted waivers of certain provisions of the Federal Financing Bank 
(FFB) Risk-Sharing Program regulations for five (5) projects 
utilizing the Federal Financing Bank (FFB) Risk-Sharing Initiative 
through the end of Calendar Year 2019.
    Contact: Patricia M. Burke, Acting Director, Office of 
Multifamily Production, HTD, Office of Housing, Department of 
Housing and Urban Development, 451 Seventh Street SW, Room 6130, 
Washington, DC 20410, telephone (202) 402-5693.
     Regulation: 24 CFR 266.200(c)(2).
    Project/Activity: Federal Financing Bank (FFB) Risk Sharing 
Initiative, Equity Take Outs. Massachusetts Housing Finance Agency 
(Mass Housing), Boston, Massachusetts
    Nature of Requirements: The Waiver of 24 CFR 266.200(c)(2), 
Existing Projects ``Equity Take-outs''. The Department will permit 
the insured mortgage to exceed the sum of the total cost of 
acquisition, cost of financing, cost of repairs, and reasonable 
transaction costs, or ``equity take-outs'' in refinances of Mass 
Housing-financed projects and those outside Mass Housing's portfolio 
if the result is preservation with the following conditions:
    1. Occupancy is no less than 93 percent for previous 12 months;
    2. No defaults in the last 12 months of the HFA loan to be 
refinanced;
    3. A 20-year affordable housing deed restriction placed on title 
that conforms to the Section 542(c) statutory definition;
    4. A Property Capital Needs Assessment (PCNA) must be performed 
and funds escrowed for all necessary repairs, and reserves funded 
for future capital needs; and
    5. For projects subsidized by Section 8 Housing Assistance 
Payment (HAP) contracts:
    a. Owner agrees to renew HAP contract(s) for 20-year term, 
(subject to appropriations and statutory authorization, etc.), and
    b. In accordance with regulations in 24 CFR 883.306(e), and 
Housing Notice 2012-14--Use of ``New Regulation'' Section 8 Housing 
Assistance Payments (HAP) Contracts Residual Receipts of Offset 
Project-Based Section 8 Housing Assistance Payments, if at any time 
Mass Housing determines that a project's excess funds (surplus cash) 
after project operations, reserve requirements and permitted 
distributions are met, Mass Housing must place the excess funds into 
a separate interest-bearing account. Upon renewal of a HAP Contract 
the excess funds can be used to reduce future HAP payments or other 
project operations/purposes. When the HAP Contract expires, is 
terminated, or any extensions are terminated, any unused funds 
remaining in the Residual Receipt Account at the time of the 
contract's termination must be returned to HUD.
    Granted By: Brian D. Montgomery, Assistant Secretary for 
Housing-Federal Housing Commissioner.
    Date Granted: September 21, 2018.

[[Page 1780]]

    Reason Waived: Under this Initiative, FFB provides capital to 
participating Housing Finance Agencies (HFAs) to make multifamily 
loans insured under the FHA Multifamily Risk Sharing Program.
    Contact: Patricia M. Burke, Acting Director, Office of 
Multifamily Production, HTD, Office of Housing, Department of 
Housing and Urban Development, 451 Seventh Street SW, Room 6130, 
Washington, DC 20410, telephone (202)402-5693.
     Regulation: 24 CFR 266.200(c)(2).
    Project/Activity: Federal Financing Bank (FFB) Risk Sharing 
Initiative, Equity Take Outs. Massachusetts Housing Partnership 
(MHP), Boston, Massachusetts.
    Nature of Requirement: The Waiver of 24 CFR 266.200(c)(2), 
Existing Projects ``Equity Take-outs''. The Department will permit 
the insured mortgage to exceed the sum of the total cost of 
acquisition, cost of financing, cost of repairs, and reasonable 
transaction costs, or ``equity take-outs'' in refinances of MHP-
financed projects and those outside MHP's portfolio if the result is 
preservation with the following conditions:
    1. Occupancy is no less than 93 percent for previous 12 months;
    2. No defaults in the last 12 months of the HFA loan to be 
refinanced;
    3. A 20-year affordable housing deed restriction placed on title 
that conforms to the Section 542(c) statutory definition;
    4. A Property Capital Needs Assessment (PCNA) must be performed 
and funds escrowed for all necessary repairs, and reserves funded 
for future capital needs; and
    5. For projects subsidized by Section 8 Housing Assistance 
Payment (HAP) contracts:
    a. Owner agrees to renew HAP contract(s) for 20-year term, 
(subject to appropriations and statutory authorization, etc.), and
    b. In accordance with regulations in 24 CFR 883.306(e), and 
Housing Notice 2012-14--Use of ``New Regulation'' Section 8 Housing 
Assistance Payments (HAP) Contracts Residual Receipts of Offset 
Project-Based Section 8 Housing Assistance Payments, if at any time 
MHP determines that a project's excess funds (surplus cash) after 
project operations, reserve requirements and permitted distributions 
are met, MHP must place the excess funds into a separate interest-
bearing account. Upon renewal of a HAP Contract the excess funds can 
be used to reduce future HAP payments or other project operations/
purposes. When the HAP Contract expires, is terminated, or any 
extensions are terminated, any unused funds remaining in the 
Residual Receipt Account at the time of the contract's termination 
must be returned to HUD.
    Granted By: Brian D. Montgomery, Assistant Secretary for 
Housing-Federal Housing Commissioner.
    Date Granted: September 21, 2018.
    Reason Waived: Under this Initiative, FFB provides capital to 
participating Housing Finance Agencies (HFAs) to make multifamily 
loans insured under the FHA Multifamily Risk Sharing Program.
    Contact: Patricia M. Burke, Acting Director, Office of 
Multifamily Production, HTD, Office of Housing, Department of 
Housing and Urban Development, 451 Seventh Street SW, Room 6130, 
Washington, DC 20410, telephone (202) 402-5693.
     Regulation: 24 CFR 266.200(d).
    Project/Activity: Federal Financing Bank (FFB) Risk Sharing 
Initiative, Underwriting of Projects with Section 8 HAP Contracts. 
Massachusetts Housing Finance Agency (Mass Housing), Boston, 
Massachusetts
    Nature of Requirement: The Waivers of 24 CFR 266.200(d), 
Projects receiving Section 8 rental subsidies or other rental 
subsidies. For refinancing of Section 202 projects, and for Public 
Housing Authority (PHA) projects converting to Section 8 through the 
Rental Assistance Demonstration (RAD) Initiative, the Department 
will permit Mass Housing to underwrite the financing using current 
or to be adjusted project-based Section 8 assisted rents, even 
though they exceed the market rates. This is consistent with HUD 
Housing Notice 04-21, ``Amendments to Notice 02-16: Underwriting 
Guidelines for Refinancing of Section 202, and Section 202/8 Direct 
Loan Repayments'', which grants authority only to those lenders 
refinancing with mortgage programs under the National Housing Act.
    Granted By: Brian D. Montgomery, Assistant Secretary for 
Housing-Federal Housing Commissioner.
    Date Granted: September 21, 2018.
    Reason Waived: Under this Initiative, FFB provides capital to 
participating Housing Finance Agencies (HFAs) to make multifamily 
loans insured under the FHA Multifamily Risk Sharing Program.
    Contact: Patricia M. Burke, Acting Director, Office of 
Multifamily Production, HTD, Office of Housing, Department of 
Housing and Urban Development, 451 Seventh Street SW, Room 6130, 
Washington, DC 20410, telephone (202) 402-5693.
     Regulation: 24 CFR 266.200(d).
    Project/Activity: Federal Financing Bank (FFB) Risk Sharing 
Initiative, Underwriting of Projects with Section 8 HAP Contracts. 
Massachusetts Housing Partnership (MHP), Boston, Massachusetts.
    Nature of Requirement: The Waivers of 24 CFR 266.200(d), 
Projects receiving Section 8 rental subsidies or other rental 
subsidies. For refinancing of Section 202 projects, and for Public 
Housing Authority (PHA) projects converting to Section 8 through the 
Rental Assistance Demonstration (RAD) Initiative, the Department 
will permit MHP to underwrite the financing using current or to be 
adjusted project-based Section 8 assisted rents, even though they 
exceed the market rates. This is consistent with HUD Housing Notice 
04-21, ``Amendments to Notice 02-16: Underwriting Guidelines for 
Refinancing of Section 202, and Section 202/8 Direct Loan 
Repayments'', which grants authority only to those lenders 
refinancing with mortgage programs under the National Housing Act.
    Granted By: Brian D. Montgomery, Assistant Secretary for 
Housing-Federal Housing Commissioner.
    Date Granted: September 21, 2018.
    Reason Waived: Under this Initiative, FFB provides capital to 
participating Housing Finance Agencies (HFAs) to make multifamily 
loans insured under the FHA Multifamily Risk Sharing Program.
    Contact: Patricia M. Burke, Acting Director, Office of 
Multifamily Production, HTD, Office of Housing, Department of 
Housing and Urban Development, 451 Seventh Street SW, Room 6130, 
Washington, DC 20410, telephone (202) 402-5693.
     Regulation: 24 CFR 266.410(e).
    Project/Activity: District of Columbia Housing Finance Agency 
(DCHFA), Washington, DC no project name or number.
    Nature of Requirement: The 24 CFR 266.410(e), which requires 
mortgages insured under the 542(c) Housing Finance Agency Risk 
Sharing Program to be fully amortized over the term of the mortgage. 
The waiver would permit DCHFA to use balloon loans that would have a 
minimum term of 17 years and a maximum amortization period of 40 
years for the projects identified in the ``Multifamily Pipeline 
Projects''.
    Granted by: Brian D. Montgomery, Assistant Secretary for 
Housing-Federal Housing Commissioner.
    Date Granted: August 17, 2018.
    Reason Waived: The waiver was granted to allow DCHFA's clients 
additional financing options to their customers and to align DCHFA 
business practices with industry standards. This waiver is effective 
through December 31, 2019. The regulatory waiver is subject to the 
following conditions:
    1. This waiver expires on December 31, 2019.
    2. DCHFA must elect to take 50 percent or more of the risk of 
loss on all transactions.
    3. Loans made under this waiver may have amortization periods of 
up to 40 years, but terms as short as 17 years.
    4. All other requirements of 24 CFR 266.410 remain applicable. 
The waiver is applicable only to loans made under DCHFA's Risk 
Sharing Agreement.
    5. In accordance with 24 CFR 266.200(d), the mortgage may not 
exceed an amount supportable by the lower of the Section 8 or 
comparable unassisted rents.
    6. Projects must comply with Davis-Bacon labor standards in 
accordance with 24 CFR 266.225.
    7. DCHFA must comply with regulations stated in 24 CFR 266.210 
for insured advances or insurance upon completion transactions.
    8. An Affordable Housing Deed restriction for at least 20 years 
must be recorded.
    9. The loans exceeding $50 million require a separate waiver 
request
    Contact: Patricia M. Burke, Acting Director, Office of 
Multifamily Production, HTD, Office of Housing, Department of 
Housing and Urban Development, 451 Seventh Street SW, Room 6130, 
Washington, DC 20410, telephone (202) 402-5693.
     Regulation: 24 CFR 266.620(e).
    Project/Activity: Federal Financing Bank (FFB) Risk Sharing 
Initiative, Termination of Mortgage Insurance. Massachusetts Housing 
Finance Agency (Mass Housing), Boston, Massachusetts
    Nature of Requirement: The waiver of 24 CFR 266.620(e) 
Termination of Mortgage Insurance. As required by the Initiative, 
Mass Housing agrees to indemnify HUD for all amount paid to FFB if 
``the HFA or its successors commit fraud or make a material 
misrepresentation to the Commissioner with

[[Page 1781]]

respect to information culminating in the Contract of Insurance on 
the mortgage, or while the Contract of Insurance is in existence''.
    Granted By: Brian D. Montgomery, Assistant Secretary for 
Housing-Federal Housing Commissioner.
    Date Granted: September 21, 2018.
    Reason Waived: Under this Initiative, FFB provides capital to 
participating Housing Finance Agencies (HFAs) to make multifamily 
loans insured under the FHA Multifamily Risk Sharing Program.
    Contact: Patricia M. Burke, Acting Director, Office of 
Multifamily Production, HTD, Office of Housing, Department of 
Housing and Urban Development, 451 Seventh Street SW, Room 6130, 
Washington, DC 20410, telephone (202) 402-5693.
     Regulation: 24 CFR 266.620(e).
    Project/Activity: Federal Financing Bank (FFB) Risk Sharing 
Initiative, Termination of Mortgage Insurance. Massachusetts Housing 
Partnership (MHP).
    Nature of Requirement: The Waiver of 24 CFR 266.620(e) 
Termination of Mortgage Insurance. As required by the Initiative, 
MHP agrees to indemnify HUD for all amount paid to FFB if ``the HFA 
or its successors commit fraud or make a material misrepresentation 
to the Commissioner with respect to information culminating in the 
Contract of Insurance on the mortgage, or while the Contract of 
Insurance is in existence''.
    Granted By: Brian D. Montgomery, Assistant Secretary for 
Housing-Federal Housing Commissioner.
    Date Granted: September 21, 2018.
    Reason Waived: Under this Initiative, FFB provides capital to 
participating Housing Finance Agencies (HFAs) to make multifamily 
loans insured under the FHA Multifamily Risk Sharing Program.
    Contact: Patricia M. Burke, Acting Director, Office of 
Multifamily Production, HTD, Office of Housing, Department of 
Housing and Urban Development, 451 Seventh Street SW, Room 6130, 
Washington, DC 20410, telephone (202) 402-5693.
     Regulation: 24 CFR part 891.520.
    Project/Activity: Broadway Arms, FHA Contract Number IN36-T801-
033, Lewistown, Illinois. Lewistown Broadway, LLC (Owner) seeks 
approval to rent to all eligible families 18 and over on the subject 
project.
    Nature of Requirement: The regulation at 24 CFR 891.520 defines 
terms applicable to Section 202 loans, and under this section 
``eligible family'' means an elderly or handicapped family that 
meets the project occupancy requirements approved by HUD. 24 CFR 
891.575(a)(1) states that ``during the term of the HAP contract, a 
Borrower shall make available for occupancy by eligible families the 
total number of units for which assistance is committed under the 
HAP contract.''
    Granted by: Brian D. Montgomery, Assistant Secretary for 
Housing--Federal Housing Commissioner.
    Date Granted: September 24, 2018.
    Reason Waived: The owner requested and was granted waiver of the 
requirement to lease units to other than elderly or handicap 
eligible families 18 and over, and waiver of the regulatory 
provision 24 CFR part 891.520 ``definition of eligible family''. The 
waiver enabled the project to better service the housing needs in 
Lewistown, IL.
    Contact: Crystal Martinez, Account Executive, Office of Housing, 
Department of Housing and Urban Development, 451 Seventh Street SW, 
Room 6174, Washington, DC 20410, telephone (202) 402-3718.

IV. 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: 1006.410(a)(2).
    Project: Department of Hawaiian Home Lands (DHHL) request a 60-
day extension of the regulatory deadline to submit the Annual 
Performance Report (APR) on the use of the Native Hawaiian Housing 
Block Grant.
    Nature of Requirement: Pursuant to 24 CFR 1006.410(a)(2), each 
FY, DHHL must submit a performance report to HUD within 60 days of 
the end of DHHL's FY. DHHL's FY ended on June 30, 2018. DHHL 
requests that the APR submission deadline be extended from August 
30, 2018 to October 31, 2018.
    Granted By: Dominique Blom, General Deputy Assistant Secretary 
for Public and Indian Housing.
    Date Granted: August 30, 2018.
    Reason Waived: DHHL requested an extension of the deadline 
because unexpected staff shortages required DHHL to procure an 
external self-monitor to conduct the the required self-monitoring 
that was needed to complete the APR. Pursuant to 24 CFR 1006.30, 
ONAP determined there was good cause to waive the regulatory 
deadline and provide DHHL an additional 60 days to submit their APR.
    Contact: Claudine Allen, Native Hawaiian Program Specialist, HUD 
Honolulu Field Office, Office of Public and Indian Housing, 1132 
Bishop Street, Suite 1400, Honolulu, HI 96813, telephone (808) 457-
4674.
     Regulation: 24 CFR 5.801(c) and 24 CFR 5.801(d)(1).
    Project/Activity: Municipality of San German (RQ030).
    Nature of Requirement: The regulation establishes certain 
reporting compliance dates. The audited financial statements are 
required to be submitted to the Real Estate Assessment Center (REAC) 
no later than nine months after the housing authority's (HA) fiscal 
year end (FYE), in accordance with the Single Audit Act and OMB 
Circular A-133.
    Granted By: Dominique Blom, General Deputy Assistant Secretary 
for Public and Indian Housing.
    Date Granted: August 13, 2018.
    Reason Waived: The HA requested relief from compliance for 
additional to submit its financial reporting requirements for the 
fiscal year end (FYE) of June 30, 2017. The HA is still recovering 
from damages resulting from Hurricane Irma and is in Category C of 
the applicable Major Disaster Declaration for Hurricane Maria. The 
circumstances preventing the HA from submitting its FYE 2017 audited 
financial data by the due date was acceptable. Accordingly, the HA 
has until September 30, 2018, to submit its audited financial 
information to the Department. The approval of the Financial 
Assessment Subsystem (FASS) audited financial submission only 
permits the extension for filing. The HA is required to contact the 
HUDOIG Single Audit Coordinator at 
[email protected] for Single Audit extensions 
applicable to the Federal Audit Clearinghouse.
    Contact: Dee Ann R. Walker, Program Manager, NASS, Real Estate 
Assessment Center, Office of Public and Indian Housing, Department 
of Housing and Urban Development, 550 12th Street SW, Suite 100, 
Washington, DC 20410, telephone (202) 475-7908.
     Regulation: 24 CFR 5.801(c) and 24 CFR 5.801(d)(1).
    Project/Activity: Municipality of Aguas Buenas (RQ082).
    Nature of Requirement: The regulation establishes certain 
reporting compliance dates. The audited financial statements are 
required to be submitted to the Real Estate Assessment Center (REAC) 
no later than nine months after the housing authority's (HA) fiscal 
year end (FYE), in accordance with the Single Audit Act and OMB 
Circular A-133.
    Granted By: Dominique Blom, General Deputy Assistant Secretary 
for Public and Indian Housing.
    Date Granted: August 30, 2018.
    Reason Waived: The HA requested relief from compliance for an 
additional 240-days to submit its financial reporting requirements 
for the fiscal year end (FYE) of June 30, 2017. The HA is still 
recovering from damages resulting from Hurricane Irma and is in 
Category C of the applicable Major Disaster Declaration for 
Hurricane Maria. The circumstances preventing the HA from submitting 
its FYE 2017 audited financial data by the due date was acceptable. 
Accordingly, the HA has until March 31, 2019, to submit its audited 
financial information to the Department. The approval of the 
Financial Assessment Subsystem (FASS) audited financial submission 
only permits the extension for filing. The HA is required to contact 
the HUDOIG Single Audit Coordinator at 
[email protected] for Single Audit extensions 
applicable to the Federal Audit Clearinghouse.
    Contact: Dee Ann R. Walker, Program Manager, NASS, Real Estate 
Assessment Center, Office of Public and Indian Housing, Department 
of Housing and Urban Development, 550 12th Street SW, Suite 100, 
Washington, DC 20410, telephone (202) 475-7908.
     Regulation: 24 CFR 5.801(c) and 24 CFR 5.801(d)(1).
    Project/Activity: Municipality of Yaco (RQ083).
    Nature of Requirement: The regulation establishes certain 
reporting compliance dates. The audited financial statements are 
required to be submitted to the Real Estate Assessment Center (REAC) 
no later than nine months after the housing authority's (HA) fiscal 
year end (FYE), in accordance with the Single Audit Act and OMB 
Circular A-133.
    Granted By: Dominique Blom, General Deputy Assistant Secretary 
for Public and Indian Housing.

[[Page 1782]]

    Date Granted: August 30, 2018.
    Reason Waived: The HA requested relief from compliance for an 
additional 91-days to submit its financial reporting requirements 
for the fiscal year end (FYE) of June 30, 2017. The HA is still 
recovering from damages resulting from Hurricane Irma and is in 
Category C of the applicable Major Disaster Declaration for 
Hurricane Maria. The circumstances preventing the HA from submitting 
its FYE 2017 audited financial data by the due date was acceptable. 
Accordingly, the HA has until October 31, 2018, to submit its 
audited financial information to the Department. The approval of the 
Financial Assessment Subsystem (FASS) audited financial submission 
only permits the extension for filing. The HA is required to contact 
the HUDOIG Single Audit Coordinator at 
[email protected] for Single Audit extensions 
applicable to the Federal Audit Clearinghouse.
    Contact: Dee Ann R. Walker, Program Manager, NASS, Real Estate 
Assessment Center, Office of Public and Indian Housing, Department 
of Housing and Urban Development, 550 12th Street SW, Suite 100, 
Washington, DC 20410, telephone (202) 475-7908.
     Regulation: 24 CFR 960.206(b)(3).
    Project/Activity: Alexandria Redevelopment and Housing Authority 
(ARHA), Virginia.
    Nature of Requirement: This requirement provides that a PHA may 
not adopt a preference for admission of persons with a specific 
disability.
    Granted By: General Deputy Assistant Secretary for Public and 
Indian Housing.
    Date Granted: August 27, 2018.
    Reason Waived: Based upon the information provided, the 
Department determined that good cause existed to allow ARHA to 
implement a tenant selection preference for persons with specific 
disabilities under the public housing program to assist the State of 
Virginia with complying with the requirements set forth in the State 
of Virginia's Olmstead Settlement Agreement.
    Contact: Monica Shepherd, Public Housing Management and 
Occupancy 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 4208, Washington, DC 20410, 
telephone (202) 402-5687 or at [email protected].
     Regulation: 24 CFR 960.206(b)(3).
    Project/Activity: Rockford Housing Authority, Illinois.
    Nature of Requirement: This requirement provides that a PHA may 
not adopt a preference for admission of persons with a specific 
disability.
    Granted By: General Deputy Assistant Secretary for Public and 
Indian Housing.
    Date Granted: September 21, 2018.
    Reason Waived: Based upon the information provided, the 
Department determined that good cause existed to extend the 
previously approved waiver to establish a limited tenant selection 
preference for persons with specific disabilities in its public 
housing and HCV programs in order to assist the State of Illinois 
with complying with the requirements set forth in the State of 
Illinois' Olmstead Coordinated Remedial Plan (the Plan). The Plan is 
pursuant to an agreement with the Department of Justice stemming 
from the Olmstead v. L.C. litigation under Title II of the Americans 
with Disabilities Act (ADA) and three Olmstead-related Consent 
Decrees.
    Contact: Monica Shepherd, Public Housing Management and 
Occupancy 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 4208, Washington, DC 20410, 
telephone (202) 402-5687 or at [email protected].

[FR Doc. 2019-01077 Filed 2-4-19; 8:45 am]
 BILLING CODE 4210-67-P