[Federal Register Volume 84, Number 78 (Tuesday, April 23, 2019)]
[Notices]
[Pages 16874-16882]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-08170]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-6101-N-04]


Notice of Regulatory Waiver Requests Granted for the Fourth 
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 October 1, 2018 and ending on December 31, 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 fourth 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 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, 2018 through December 31, 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 fourth quarter of 
calendar year 2018) before the next report is published (the first 
quarter of calendar year 2019), HUD will include any additional waivers 
granted for the fourth 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: April 16, 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 October 1, 
2018 Through December 31, 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 92.252(d)(1) Utility Allowance 
Requirements.

[[Page 16875]]

    Project/Activity: The City of Fitchburg, Massachusetts, 
requested a waiver of 24 CFR 92.252(d)(1) to allow use of the 
utility allowance established by local public housing agency for two 
HOME-assisted projects--Fitchburg Yarn Lofts and Ivory Keys 
Apartments.
    Nature of Requirement: The regulation at 24 CFR 92.252(d)(1) 
requires participating jurisdictions to establish maximum monthly 
allowances for utilities and services (excluding telephone) and 
update the allowances annually. However, participating jurisdictions 
are not permitted to use the utility allowance established by the 
local public housing authority for HOME-assisted rental projects for 
which HOME funds were committed on or after August 23, 2013.
    Granted By: Neal J. Rackleff, Assistant Secretary for Community 
Planning and Development.
    Date Granted: October 3, 2018.
    Reason Waived: The HOME requirements for establishing a utility 
allowances conflict with Project Based Voucher program requirements. 
It is not possible to use two different utility allowances to set 
the rent for a single unit and it is administratively burdensome to 
require a project owner establish and implement different utility 
allowances for HOME-assisted units and non-HOME assisted units in a 
project.
    Contact: Virginia Sardone, Director, Office of Affordable 
Housing Programs, Office of Community Planning and Development, 
Department of Housing and Urban Development, 451 Seventh Street SW, 
Room 10170, Washington, DC 20410, telephone (202) 708-2684.
     Regulation: 24 CFR 91.500(a) and corresponding 
provisions in section III.B. of 83 FR 40314.
    Project/Activity: HUD's CDBG-DR Action Plan Review Period 
Deadline for State of Florida, Commonwealth of Puerto Rico, and the 
U.S. Virgin Islands.
    Nature of Requirement: This waiver extended HUD's review period 
from 45 days to 60 days from the date of receipt of the Action Plan 
Amendment, which is the period in 42 U.S.C. 12705(c)(1). Based on 
HUD's receipt date of November 16, 2018, 24 CFR 91.500(a) would 
require HUD to complete its review of Florida's and Puerto Rico's 
CDBG DR Action Plan Amendments by December 30, 2018; and the 
Department extended the period for those reviews to January 14, 
2019. Based on HUD's receipt date of November 20, 2018, 24 CFR 
91.500(a) would require HUD to complete its review of the U.S. 
Virgin Islands' CDBG DR Action Plan Amendment by January 3, 2019; 
and the Department extended that review period to January 18, 2019.
    Granted By: David Woll Jr., Principal Deputy Assistant Secretary 
for Community Planning and Development.
    Date Granted: December 21, 2018.
    Reason Waived: The devasting impact of Hurricanes Irma and Maria 
upon Florida, Puerto Rico, and the U.S. Virgin Islands is well 
established and the need for CDBG-DR funds is great to achieve long-
term recovery. HUD may disapprove an amendment if it is incomplete. 
HUD works with grantees to resolve or provide additional information 
during the review period to avoid the need to disapprove the Action 
Plan or Action Plan Amendment. There were several issues related to 
the Action Plan Amendment, as submitted, that further discussion and 
revision during the review extension provided by this waiver would 
resolve, rather than HUD disapproving the Amendment which would have 
required grantees to take additional time to revise and resubmit 
their respective amendments. Additionally, the review period was 
curtailed by several holidays and the uncertainty of a federal 
government shutdown. This waiver avoided these delays in the award 
of the CDBG-DR funds to communities that continue to recovery from 
the hurricanes. As such, good cause was established, and the waiver 
was granted.
    Contact: Claudette Fernandez, Director, Office of Block Grant 
Assistance, Office of Community Planning and Development, Department 
of Housing and Urban Development, 451 Seventh Street SW, Room 7272, 
Washington DC 20410, telephone (202) 402-4592.
     Regulation: 24 CFR 91.500(a) and corresponding 
provisions in section III.B. of 83 FR 40314.
    Project/Activity: HUD's CDBG-DR Action Plan Review Period 
Deadline for State of Texas.
    Nature of Requirement: This waiver extended HUD's review period 
from 45 days to 60 days from the date of receipt of the Action Plan 
Amendment, which is the period in 42 U.S.C. 12705(c)(1). Based on 
HUD's receipt date of October 12, 2018, 24 CFR 91.500(a) would 
require HUD to complete its review of Texas's CDBG DR Action Plan 
Amendment by November 26, 2018; and the Department extended the 
period for that review to December 11, 2018.
    Granted By: David Woll Jr., Principal Deputy Assistant Secretary 
for Community Planning and Development.
    Date Granted: November 30, 2018.
    Reason Waived: The devasting impact of Hurricane Harvey upon 
Texas is well known and the need for CDBG-DR funds for Houston and 
Harris County is great to achieve long-term recovery. HUD may 
disapprove an amendment if it is incomplete. HUB works with grantees 
to resolve or provide additional information during the review 
period to avoid the need to disapprove the Action Plan or Action 
Plan Amendment. There were several issues related to the Action Plan 
Amendment, as submitted, that further discussion and revision during 
the review extension provided by this waiver would resolve, rather 
than HUD disapproving the Amendment which would have required the 
State to take additional time to revise and resubmit the Amendment. 
This waiver avoided this delay in the award of the CDBG-DR funds for 
the city of Houston and Harris County to recover from Hurricane 
Harvey. As such, good cause was established, and the waiver was 
granted.
    Contact: Claudette Fernandez, Director, Office of Block Grant 
Assistance, Office of Community Planning and Development, Department 
of Housing and Urban Development, 451 Seventh Street SW, Room 7272, 
Washington DC 20410, telephone (202) 402-4592.

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 219.220(b).
    Project/Activity: Riverview Apartments I, FHA Project Number 
033-SH014; and Riverview Apartments II, FHA Project Number 033-
44052, Pittsburgh, PA. Riverview Apartments, Incorporated (Owner) 
seeks approval to defer repayment of the Flexible Subsidy Operating 
Assistance Loans on the subject projects.
    Nature of Requirement: The regulation at 24 CFR 219.220(b) 
(1995), which governs the repayment of operating assistance provided 
under the Flexible Subsidy Program for Troubled Properties, 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.''
    Granted by: Brian D. Montgomery, Assistant Secretary for 
Housing--Federal Housing Commissioner.
    Date Granted: November 15, 2018.
    Reason Waived: The owner requested and was granted waiver of the 
requirement to repay the Flexible Subsidy Operating Assistance Loans 
in full when they became due. Deferring the loan payments will 
preserve these affordable housing resources for an additional 35 
years through the execution and recordation of a Rental Use 
Agreement.
    Contact: Cindy Bridges, Senior Account Executive, Office of 
Housing, Department of Housing and Urban Development, 451 Seventh 
Street SW, Room 6168, Washington, DC 20410, telephone (202) 402-
2603.
    Regulation: 24 CFR 219.220(b).
    Project/Activity: Springvale Terrace, FHA Project Number 000-
43072, Silver Spring, MD. Springvale Terrace, Incorporated (Owner) 
seeks approval to defer repayment of the Flexible Subsidy Operating 
Assistance Loan on the subject project.
    Nature of Requirement: The regulation at 24 CFR 219.220(b) 
(1995), which governs the repayment of operating assistance provided 
under the Flexible Subsidy Program for Troubled Properties, 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.''
    Granted by: Brian D. Montgomery, Assistant Secretary for 
Housing--Federal Housing Commissioner.
    Date Granted: November 15, 2018.
    Reason Waived: The owner requested and was granted waiver of the 
requirement to repay the Flexible Subsidy Operating Assistance Loan 
in full when it became due. Deferring the loan payment will preserve 
the affordable housing resource for an additional 40 years through 
the execution and recordation of a Rental Use Agreement.
    Contact: Cindy Bridges, Senior Account Executive, Office of 
Housing, Department of

[[Page 16876]]

Housing and Urban Development, 451 Seventh Street SW, Room 6168, 
Washington, DC 20410, telephone (202) 402-2603.
     Regulation: 24 CFR 219.220(b).
    Project/Activity: Lyon County Retirement Home, FHA Project 
Number 092-SH023T, Marshall, Minnesota. Lyon County Retirement Home, 
Incorporated (Owner) seeks approval to defer repayment of the 
Flexible Subsidy Operating Assistance Loan on the subject project.
    Nature of Requirement: The regulation at 24 CFR 219.220(b) 
(1995), which governs the repayment of operating assistance provided 
under the Flexible Subsidy Program for Troubled Properties, 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.''
    Granted by: Brian D. Montgomery, Assistant Secretary for 
Housing--Federal Housing Commissioner.
    Date Granted: December 17, 2018.
    Reason Waived: The owner requested and was granted waiver of the 
requirement to repay the Flexible Subsidy Operating Assistance Loan 
in full when it became due. Deferring the loan payment will preserve 
this affordable housing resource for an additional 20 years through 
the execution and recordation of a Rental Use Agreement.
    Contact: Nathaniel Johnson, Senior Account Executive, Office of 
Housing, Department of Housing and Urban Development, 451 Seventh 
Street SW, Room 6172, Washington, DC 20410, telephone (202) 402-
5156.
     Regulation: 24 CFR 266.200(b)(2).
    Project/Activity: The Federal Financing Bank (FFB) Risk-Sharing 
Program regulations for 40 projects utilizing the Federal Financing 
Bank (FFB) Risk-Sharing Initiative through the end of Calendar Year 
2019, Substantial Rehabilitation, Pennsylvania Housing Finance 
Agency (PHFA), Harrisburg, Pennsylvania, 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: December 21, 2018.
    Reason Waived: Granted waivers of certain provisions of the 
Federal Financing Bank (FFB) Risk-Sharing Program regulations for 
forty (40) 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, 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 fifteen (15) projects for a 
total of 40 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: December 17, 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 fifteen (15) 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, 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: The Federal Financing Bank (FFB) Risk-Sharing 
Program regulations for an additional four (4) projects for a total 
of 30 projects utilizing the Federal Financing Bank (FFB) Risk-
Sharing Initiative through the end of Calendar Year 2019, 
Substantial Rehabilitation, California Housing Finance Agency 
(CalHFA), Sacramento, California, 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: December 17, 2018.
    Reason Waived: Granted waivers of certain provisions of the 
Federal Financing Bank (FFB) Risk-Sharing Program regulations for 
four (4) 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, 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: The Federal Financing Bank (FFB) Risk-Sharing 
Program regulations for an additional 20 projects for a total of 38 
projects utilizing the Federal Financing Bank (FFB) Risk-Sharing 
Initiative through the end of Calendar Year 2019, Substantial 
Rehabilitation, Minnesota Housing Finance Agency (Minnesota 
Housing), St. Paul, Minnesota, 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

[[Page 16877]]

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: December 17, 2018.
    Reason Waived: Granted waivers of certain provisions of the 
Federal Financing Bank (FFB) Risk-Sharing Program regulations for 
twenty (20) 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, 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. Pennsylvania Housing Finance Agency 
(PHFA), Harrisburg, Pennsylvania.
    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 PHFA-
financed projects and those outside PHFA'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 
PHFA determines that a project's excess funds (surplus cash) after 
project operations, reserve requirements and permitted distributions 
are met, PHFA 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: December 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, Office of Housing, Department of Housing and 
Urban Development, 451 Seventh Street SW, Room 6130, Washington, DC 
20410, telephone (202) 402-5693.
     Regulation: 24CFR 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: December 17, 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, 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. California Housing Finance Agency 
(CalHFA), Sacramento, California
    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 CalHFA-
financed projects and those outside CalHFA'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 
CalHFA determines that a project's excess funds (surplus cash) after 
project operations, reserve requirements and permitted distributions 
are met, CalHFA 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.

[[Page 16878]]

    Granted By: Brian D. Montgomery, Assistant Secretary for 
Housing--Federal Housing Commissioner.
    Date Granted: December 17, 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, 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. Minnesota Housing Finance Agency 
(Minnesota Housing), St. Paul, Minnesota
    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 
Minnesota Housing-financed projects and those outside Minnesota 
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 
Minnesota Housing determines that a project's excess funds (surplus 
cash) after project operations, reserve requirements and permitted 
distributions are met, Minnesota 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: December 17, 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, 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. 
Pennsylvania Housing Finance Agency (PHFA), Harrisburg, 
Pennsylvania.
    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 PHFA 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: December 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, 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: December 17, 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, 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. 
California Housing Finance Agency (CalHFA), Sacramento, California.
    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 CalHFA 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: December 17, 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, 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. 
Minnesota Housing Finance Agency (Minnesota Housing), St. Paul, 
Minnesota.
    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 Minnesota 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.

[[Page 16879]]

    Granted By: Brian D. Montgomery, Assistant Secretary for 
Housing--Federal Housing Commissioner.
    Date Granted: December 17, 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, 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: Illinois Housing Development Authority (IHDA), 
Chicago, Illinois, 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 IHDA 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: D Brian D. Montgomery, Assistant Secretary for 
Housing--Federal Housing Commissioner.
    Date Granted: December 6, 2018.
    Reason Waived: The waiver was granted to allow IHDA's clients 
additional financing options to their customers and to align IHDA 
business practices with industry standards. This waiver is effective 
through October 31, 2020. The regulatory waiver is subject to the 
following conditions:
    1. The waiver is limited to thirty (30) transactions and expires 
on October 31, 2020.
    2. Illinois Housing Development Authority must elect to take 50 
percent or more of the risk of loss on all transactions;
    3. Mortgages made under this waiver may have amortization 
periods of up to 40 years, but with a minimum term of 17 years;
    4. All other requirements of 24 CFR 266.410--Mortgage Provision 
remain applicable. The waiver is applicable only to loans made under 
Illinois Housing Development Authority'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. Illinois Housing Development Authority must comply with 
regulations stated in 24 CFR 266.210 for insured advances or 
insurance upon completion transactions;
    8. The loans exceeding $50 million require a separate waiver 
request;
    9. Occupancy is no less than 93 percent for previous 12 months;
    10. No defaults in the last 12 months of the HFA loan to be 
refinanced;
    11. A 20-year affordable housing deed restriction placed on 
title that conforms to the Section 542(c) statutory definition;
    12. A Property Capital Needs Assessment (PCNA) must be performed 
and funds escrowed for all necessary repairs, and reserves funded 
for future capital needs; and
    13. For projects subsidized by Section 8 Housing Assistance 
Payment (HAP) contracts:
    i. 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 
IHDA determines that a project's excess funds (surplus cash) after 
project operations, reserve requirements and permitted distributions 
are met, IHDA 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.
    Contact: Patricia M. Burke, Acting Director, Office of 
Multifamily Production, 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: California Housing Finance Agency (CalHFA), 
Sacramento, California, 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 CalHFA 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: December 17, 2018.
    Reason Waived: The waiver was granted to allow CalHFA's clients 
additional financing options to their customers and to align CalHFA 
business practices with industry standards. The regulatory waiver is 
subject to the following conditions:
    1. The waiver is limited to forty (40) transactions and expires 
on December 31, 2019.
    2. CalHFA must elect to take 50 percent or more of the risk of 
loss on all transactions;
    3. Mortgages made under this waiver may have amortization 
periods of up to 40 years, but with a minimum term of 17 years;
    4. All other requirements of 24 CFR 266.410--Mortgage Provision 
remain applicable. The waiver is applicable only to loans made under 
CalHFA'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. CalHFA must comply with regulations stated in 24 CFR 266.210 
for insured advances or insurance upon completion transactions;
    8. The loans exceeding $50 million require a separate waiver 
request;
    9. Occupancy is no less than 93 percent for previous 12 months;
    10. No defaults in the last 12 months of the HFA loan to be 
refinanced;
    11. A 20-year affordable housing deed restriction placed on 
title that conforms to the Section 542(c) statutory definition;
    12. A Property Capital Needs Assessment (PCNA) must be performed 
and funds escrowed for all necessary repairs, and reserves funded 
for future capital needs; and
    13. For projects subsidized by Section 8 Housing Assistance 
Payment (HAP) contracts:
    i. 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 
CalHFA determines that a project's excess funds (surplus cash) after 
project operations, reserve requirements and permitted distributions 
are met, CalHFA 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.
    Contact: Patricia M. Burke, Acting Director, Office of 
Multifamily Production, HTD, Office of Housing, Department of 
Housing and Urban Development, 451 Seventh Street SW, 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. Pennsylvania Housing 
Finance Agency (PHFA), Harrisburg, Pennsylvania
    Nature of Requirement: The Waiver of 24 CFR 266.620(e) 
Termination of Mortgage Insurance. As required by the Initiative, 
PHFA 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: December 21, 2018.
    Reason Waived: Under this Initiative, FFB provides capital to 
participating Housing Finance Agencies (HFAs) to make

[[Page 16880]]

multifamily loans insured under the FHA Multifamily Risk Sharing 
Program.
    Contact: Patricia M. Burke, Acting Director, Office of 
Multifamily Production, Office of Housing, Department of Housing and 
Urban Development, 451 Seventh Street SW, Room 6130, Room 
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: December 17, 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, Office of Housing, Department of Housing and 
Urban Development, 451 Seventh Street SW, Room 6130, Room 
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. California Housing 
Finance Agency, Sacramento, California.
    Nature of Requirement: The Waiver of 24 CFR 266.620(e) 
Termination of Mortgage Insurance. As required by the Initiative, 
CalHFA 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: December 17, 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, Office of Housing, Department of Housing and 
Urban Development, 451 Seventh Street SW, Room 6130, Room 
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. Minnesota Housing 
Finance Agency (Minnesota Housing), St. Paul, Minnesota.
    Nature of Requirement: The Waiver of 24 CFR 266.620(e) 
Termination of Mortgage Insurance. As required by the Initiative, 
Minnesota 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 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: December 17, 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, Department of Housing and Urban Development, 
451 Seventh Street SW, Room 6130, Washington, DC 20410, telephone 
(202) 402-5693.
     Regulation: 24 CFR 881.205 (c).
    Project/Activity: SouthPark Apartments, FHA Number 043-35441, 
Columbus, Ohio. Lewistown Broadway, LLC (Owner) seeks approval to 
allow for new equity associated with the 4% Tax Credits and bonds 
from Ohio Housing Finance Agency to be infused into the project to 
be considered as ``owner initial equity'' for the purpose of 
calculating distributions.
    Nature of Requirement: The regulation at 24 CFR 881.205 (c) 
defines terms applicable to determining the allowable distribution, 
and under this section ``an owner's equity investment in a project 
is deemed to be 10 percent of the replacement cost of the part of 
the project attributable to dwelling use accepted by HUD at cost 
certification (see Sec.  881.405), unless the owner justifies a 
higher equity contribution by cost certification documentation in 
accordance with HUD mortgage insurance procedures.''
    Granted by: Brian D. Montgomery, Assistant Secretary for 
Housing--Federal Housing Commissioner.
    Date Granted: December 14, 2018.
    Reason Waived: The owner requested and was granted waiver of the 
requirement to allow for ``new'' equity infused by Tax Credits and 
bonds to be included in the calculation of the owner's distribution 
to be considered under the allowable equity as described in section 
24 CFR 881.205 (c). Granting this waiver is consistent with both 
programmatic objectives and the Secretary's goal of maintaining 
affordable housing for low-income persons.
    Contact: Kimberly Britt, Supervisory Branch Chief, Office of 
Housing, Department of Housing and Urban Development, 451 Seventh 
Street SW, Room 6178, Washington, DC 20410, telephone (202) 402-
7576.

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: 24 CFR 1000.240 and 24 CFR 1000.242.
    Project/Activity: Iowa Tribe of Kansas and Nebraska Housing 
Authority of White Cloud, Kansas, requested a waiver of the 
requirement to enter into a local cooperation agreement with 
Doniphan County, Kansas, covering services for IHBG-assisted housing 
in the County.
    Nature of Requirement: 24 CFR 1000.240 and 24 CFR 1000.242 
require IHBG recipients to enter into local cooperation agreements 
with the appropriate taxing authorities and ensure IHBG-assisted 
units are exempt from taxation. These requirements can be waived 
pursuant to Section 101(c) of NAHASDA and 24 CFR 1000.244.
    Granted By: Dominique Blom, General Deputy Assistant Secretary 
for Public and Indian Housing.
    Date Granted: December 20, 2018.
    Reason Waived: Waiver of the requirement was approved because 
the Housing Authority demonstrated a good faith effort to fulfill 
the local cooperation agreement requirements.
    Contact: Wayne Sims, Administrator, Office of Public and Indian 
Housing, Department of Housing and Urban Development, 301 NW 6th 
Street, Suite 200, Oklahoma City, OK 73102, telephone (405) 609-
8520.
     Regulation: 24 CFR 965.653(a).
    Project/Activity: Missouri Valley Housing Authority (MVHA).
    Nature of Requirement: This requirement states that public 
housing agencies (PHAs) must implement a policy prohibiting the use 
of prohibited tobacco products in all public housing living units 
and interior areas, as well as in outdoor areas within 25 feet of 
dwelling units and administrative buildings.
    Granted By: General Deputy Assistant Secretary for Public and 
Indian Housing.
    Date Granted: October 11, 2018.
    Reason Waived: Based upon the information provided, the 
Department determined that good cause existed to allow MVHA to 
maintain a Designated Smoking Area (DSA) less than 25 feet from the 
development as the structure was constructed prior to the 
finalization of the rule and finds that moving the DSA would be cost 
prohibitive.
    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.
     Regulation: 24 CFR 965.653(a).
    Project/Activity: Branson Housing Authority (BHA), Missouri.
    Nature of Requirement: This requirement states that public 
housing agencies (PHAs) must implement a policy prohibiting the use 
of prohibited tobacco products in all public housing living units 
and interior areas, as well as in outdoor areas within 25 feet of 
dwelling units and administrative buildings.
    Granted By: Dominique Blom, General Deputy Assistant Secretary 
for Public and Indian Housing.
    Date Granted: November 15, 2018.
    Reason Waived: Based upon the information provided, the 
Department determined that good cause existed to allow BHA to waive 
the requirement to prohibiting the use of prohibited tobacco 
products areas

[[Page 16881]]

within 25 feet of dwelling units and administrative buildings as 
this perimeter exceeds the PHA property boundary line and requiring 
residents to smoke in areas beyond BHA's property line would result 
in significant safety issues.
    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.
     Regulation: 24 CFR 982.355(b).
    Project/Activity: Shasta Housing Authority (SHA) in Redding, 
California, requested a waiver of regulation 24 CFR 982.355(b) to 
allow the agency to stop accepting income portability families into 
its voucher program.
    Nature of Requirement: The regulation 24 CFR 982.355(b) states 
that a receiving public housing authority (PHA) cannot refuse to 
assist incoming portable families or direct them to another 
neighboring PHA for assistance but that HUD may determine, in 
certain instances, that a PHA is not required to accept incoming 
portable families, such as a PHA in a declared disaster area. 
However, the PHA must have approval in writing from HUD before 
refusing any incoming portable families.
    Granted By: Dominique Blom, General Deputy Assistant Secretary 
for Public and Indian Housing.
    Date Granted: October 4, 2018.
    Reason Waived: This waiver was approved because Shasta and 
Trinity Counites are presidentially declared disaster areas due to 
the Car fire burning in Northern California.
    Contact: Becky Primeaux, 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 4216, Washington, DC 20410, 
telephone (202) 708-0477.
     Regulation: 24 CFR 985.101(a).
    Project/Activity: Willimantic Housing Authority in Willimantic, 
Connecticut, requested a waiver of regulation 24 CFR 985.101(a) to 
allow them to submit the HUD required SEMAP certification after to 
the 60-day deadline.
    Nature of Requirement: The regulation 24 CFR 985.101(a) requires 
public housing agencies (PHAs) to submit the HUD-required Section 
Eight Management Assessment Program (SEMAP) certification within 60 
calendar days after the end of its fiscal year.
    Granted By: Dominique Blom, General Deputy Assistant Secretary 
for Public and Indian Housing.
    Date Granted: October 23, 2018.
    Reason Waived: This waiver was approved due to confirmation from 
the Hartford Field office that the WHA submitted their SEMAP 
certification prior to the deadline but experienced technical issues 
on HUD's side of the system.
    Contact: Becky Primeaux, 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 4216, Washington, DC 20410, 
telephone (202) 708-0477.
     Regulation: 24 CFR 983.301(f)(2)(ii) and 24 CFR 
982.517.
    Project/Activity: North Little Rock Housing Authority (NLRHA) 
requested a waiver of 24 CFR 983.301(f)(2)(ii) and 24 CFR 982.517 to 
establish a site-specific utility allowance at Holt District Homes, 
which is a Rental Assistance Demonstration (RAD) conversion site.
    Nature of Requirement: The Public and Indian Housing (PIH) 
Notice--2018-11, H-2018-05, provides program requirements for the 
demonstration, which includes that a PHA may request a waiver from 
HUD for the aforementioned regulations in order to establish a site-
specific utility allowance schedule at RAD conversion sites that 
also have non-RAD PBV units at the property.
    Granted By: Dominique Blom, General Deputy Assistant Secretary 
for Public and Indian Housing.
    Date Granted: October 4, 2018.
    Reason Waived: This waiver was approved based on the finding 
that utility allowances, as currently calculated, would be excessive 
thus discouraging conservation and efficient use of HAP funds. 
Information submitted to HUD, by the NLRHA provides justification 
for the request.
    Contact: Becky Primeaux, 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 4216, Washington, DC 20410, 
telephone (202) 708-0477.
     Regulation: 24 CFR 982.503(a)(3).
    Project/Activity: The Housing Authority of the County of Los 
Angeles (HACoLA) in Alhambra, California, requested a waiver of the 
regulation 24 CFR 982.503(a)(3) for its HUD-VASH program so it could 
increase its payment standards for that program to 140 percent of 
the 2018 40th percentile Fair Market Rents (FMRs).
    Nature of Requirement: The regulation, 24 CFR 982.503(a)(3) 
states that a public housing agency (PHA) voucher payment standard 
schedule shall establish a single payment standard amount for each 
unit size. For each unit size, the PHA may establish a single 
payment standard amount for the whole FMR area or may establish a 
separate payment standard amount for each designated part of the FMR 
area.
    Granted By: Dominique Blom, General Deputy Assistant Secretary 
for Public and Indian Housing.
    Date Granted: October 16, 2018.
    Reason Waived: This waiver was approved because of the rising 
rents throughout the Los Angeles area and to better serve HUD-VASH 
families.
    Contact: Becky Primeaux, 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 4216, Washington, DC 20410, 
telephone (202) 708-0477.
     Regulation: 24 CFR 982.505(c)(4).
    Project/Activity: Housing Authority of the City of Los Angeles 
(HACLA) requested a waiver of 24 CFR 982.505 (c)(4) to allow their 
agency to apply the increased payment standard to the subsidy 
calculation at the time the rent increase is approved instead of 
waiting until the family's first regular reexamination.
    Nature of Requirement: The regulation 24 CFR 982.505(c)(4) 
states that, if the payment standard amount is increased during the 
term of the HAP contract, the increased payment standard amount 
shall be used to calculate the monthly HAP for the family beginning 
at the effective date of the family's first regular reexamination on 
or after the effective date of the increased in the payment standard 
amount.
    Granted By: Dominique Blom, General Deputy Assistant Secretary 
for Public and Indian Housing.
    Date Granted: October 16, 2018.
    Reason Waived: This waiver was approved to allow assisted 
families to remain in their units at an affordable rent and minimize 
the disruption and cost of relocating in an extremely tight market 
with a less than 4 percent vacancy rate. Additionally, HACLA has 
sufficient funding to support this proposal to use the increased 
payment standards between regularly scheduled reexaminations.
    Contact: Becky Primeaux, 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 4216, Washington, DC 20410, 
telephone (202) 708-0477.
     Regulation: 24 CFR 985.101(a).
    Project/Activity: Albany Housing Authority (AHA) in, Albany New 
York, requested a waiver of regulation 24 CFR 985.101(a) due to an 
oversight and to prove that they submitted the HUD required SEMAP 
certification in a timely manner.
    Nature of Requirement: The regulation 24 CFR 985.101(a) requires 
public housing agencies (PHAs) to submit the HUD-required Section 
Eight Management Assessment Program (SEMAP) certification within 60 
calendar days after the end of its fiscal year.
    Granted By: Dominique Blom, General Deputy Assistant Secretary 
for Public and Indian Housing.
    Date Granted: October 23, 2018.
    Reason Waived: This waiver was approved due to documentation of 
technical issues within PIC system.
    Contact: Becky Primeaux, 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 4216, Washington, DC 20410, 
telephone (202) 708-0477.
     Regulation: 24 CFR 982.503(a)(3) and 24 CFR 
982.503(c)(2).
    Project/Activity: Burbank Housing Authority (BHA) in Burbank, 
California, requested a waiver of the regulation 24 CFR 
982.503(a)(3) and 24 CFR 982.503(c)(2) for its HUD-VASH program so 
it could increase its payment standards for that program to 120

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percent of the 2018 Fair Market Rents (FMRs) for zero and one-
bedroom units.
    Nature of Requirement: The regulation, 24 CFR 982.503(a)(3). 
states that a public housing agency (PHA) voucher payment standard 
schedule shall establish a single payment standard amount for each 
unit size. For each unit size, the PHA may establish a single 
payment standard amount for the whole FMR area or may establish a 
separate payment standard amount for each designated part of the FMR 
area. A waiver of this regulation is necessary to establish a 
separate payment standard for the HUD-VASH program. The second 
regulation 24 CFR 982.503(c)(2) states that the HUD office may 
approve an exception payment standard amount from 110 percent of the 
published FMR to 120 percent of the published FMR if the HUD Field 
Office determines that approval is justified by either the median 
rent method of the 40th of 50th percentile rent method and that such 
approval is also supported by an appropriated program justification.
    Granted By: Dominique Blom, General Deputy Assistant Secretary 
for Public and Indian Housing.
    Date Granted: December 4, 2018.
    Reason Waived: This waiver was approved because of the rising 
rents throughout the Los Angeles area and to better serve HUD-VASH 
families.
    Contact: Becky Primeaux, 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 4216, Washington, DC 20410, 
telephone (202) 708-0477.
     Regulation: 24 CFR 5.801(c) and 24 CFR 5.801(d)(1).
    Project/Activity: Puerto Rico Housing Finance Authority (RQ911).
    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: October 1, 2018.
    Reason Waived: The HA requested relief from compliance for 
additional time 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 hurricanes which began 
September 20, 2017 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: Puerto Rico Department of Housing (RQ901).
    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: October 1, 2018.
    Reason Waived: The HA requested relief from compliance for 
additional time 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 hurricanes which began 
September 20, 2017 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.

[FR Doc. 2019-08170 Filed 4-22-19; 8:45 am]
BILLING CODE 4210-67-P