Regulatory and Administrative Waivers Granted for Public and Indian Housing Programs To Assist With Recovery and Relief in Hurricane Rita Disaster Areas; and Additional Administrative Relief for Hurricane Katrina, 66222-66226 [05-21682]

Agencies

• DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Federal Register Volume 70, Number 210 (Tuesday, November 1, 2005)]
[Notices]
[Pages 66222-66226]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-21682]



[[Page 66221]]

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Part V





Department of Housing and Urban Development





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Regulatory and Administrative Waivers Granted for Public and Indian 
Housing Programs To Assist With Recovery and Relief in Hurricane Rita 
Disaster Areas; and Additional Administrative Relief for Hurricane 
Katrina; Notice

Federal Register / Vol. 70, No. 210 / Tuesday, November 1, 2005 / 
Notices

[[Page 66222]]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5022-N-01]


Regulatory and Administrative Waivers Granted for Public and 
Indian Housing Programs To Assist With Recovery and Relief in Hurricane 
Rita Disaster Areas; and Additional Administrative Relief for Hurricane 
Katrina

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

ACTION: Notice.

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SUMMARY: Similar to HUD's notice published on October 3, 2005, 
regarding administrative actions to bring relief to areas affected by 
Hurricane Katrina, this notice advises the public of HUD regulations 
and other administrative requirements governing HUD's Office of Public 
and Indian Housing (PIH) programs that have been waived in order to 
facilitate the delivery of safe and decent housing under these programs 
to families and individuals who have been displaced from their housing 
by Hurricane Rita. Entities that administer PIH programs, which include 
public housing agencies (PHAs), Indian and tribally designated housing 
entities (TDHEs), and local and tribal governments, and are located in 
an area declared by the President to be a federal disaster area as a 
result of Hurricane Rita, may defer compliance with the regulations and 
other requirements listed in this notice for an initial period of 12 
months or such other period as may be specified in this notice. PIH 
program administrators that are not located in a disaster area but 
assisting with Hurricane Rita recovery and relief may request waiver of 
the regulations and administrative requirements listed in this notice, 
and HUD review and response is available through an expedited waiver 
request and response process. PIH program administrators, located in an 
area declared a federal disaster area as a result of Hurricane Rita, or 
PIH program administrators not located in such an area but assisting 
with Hurricane Rita relief and recovery efforts, may request waiver of 
a regulation or other administrative requirement through the expedited 
waiver process provided in this notice.
    This notice applies only to PIH programs or to cross-cutting 
regulatory or administrative requirements that are applicable to PIH 
program administrators.
    This notice provides in Section III.A.2 for an extension for 
improved performance by certain PHAs located in areas declared a 
federal disaster area as a result of Hurricane Katrina, which 
supplements the waivers made available under the procedures described 
in the October 3, 2005, notice.

DATES: Effective Date: October 25, 2005.

FOR FURTHER INFORMATION CONTACT: PIH Disaster Relief Officer, Office of 
Policy Programs and Legislation, Office of Public and Indian Housing, 
Department of Housing and Urban Development, 451 Seventh Street, SW., 
Room 4116, Washington, DC 20410-5000, telephone number (202) 708-4016, 
extension 4245, or (202) 708-0713, extension 7651. Persons with hearing 
or speech impairments may access this number via TTY by calling the 
Federal Information Relay Service at (800) 877-8339.

SUPPLEMENTARY INFORMATION:

I. Background Information

    In September 2005, Hurricane Rita closely followed Hurricane 
Katrina and once again hit the Gulf Coast area of the United States, 
adding to the damage to property and displacement of individuals and 
families from their homes and communities that already had been caused 
by Hurricane Katrina. The President directed federal agencies to 
include victims of Hurricane Rita in relief and recovery efforts 
underway for victims of Hurricane Katrina, and to eliminate ``red 
tape'' where feasible that will impede the delivery of federal 
financial assistance and other needed benefits.
    Similar to the notice of waiver of regulations and administrative 
requirements that HUD published on October 3, 2005 (70 FR 57716), to 
assist PIH program administrators in Hurricane Katrina disaster areas, 
this notice identifies HUD regulations and other administrative 
requirements governing HUD's PIH programs that are waived or 
temporarily suspended or deferred in an area declared by the President 
to be a federal disaster area as a result of Hurricane Rita (disaster 
area). In addition, HUD will provide an expedited review process to 
waive the requirements listed in this notice upon request from PIH 
program administrators that are not located in disaster areas but are 
assisting with Hurricane Rita recovery and relief efforts.
    HUD's Office of Public and Indian Housing examined the regulations 
governing PIH programs and recommended waiver or temporary suspension 
or deferral of those regulations that the office believes could impede 
PIH program administrators in their effort to expeditiously assist with 
housing current PIH program participants who lost housing as a result 
of Hurricane Rita, as well as others who now need housing assistance 
under PIH programs as a result of the hurricane. PIH program 
administrators that are located in a disaster area may defer compliance 
with the requirements listed in this notice for an initial period of 12 
months under the notification process described in this notice. The 
requirements listed in this notice that have been deferred, or 
temporarily suspended by waiver include regulatory and other 
administrative provisions that require periodic reporting and other 
information delivery by PHAs, Indian tribes, and TDHEs. While such 
reporting is important to ensure effective and efficient administration 
of PIH programs, these requirements have been waived in order that PIH 
program administrators may focus their time and resources on 
identifying and providing decent and safe housing during this period of 
unparalleled displacement of families and individuals.
    For the majority of the regulations and administrative requirements 
listed in this notice and for which a waiver was granted, HUD did not 
waive the requirements entirely but deferred compliance until such time 
as compliance may be feasible; for example, in many cases HUD extended 
deadlines for reports or other documents that PIH program 
administrators must submit to HUD. Because Hurricane Rita compounded 
and exacerbated the damage caused by Hurricane Katrina, the damage to 
the Gulf Coast area remains unprecedented, and the need for housing and 
other basic life saving and sustaining relief is widespread and 
immediate, HUD is relying on its experienced partners in the HUD 
housing-assistance programs who are in the front-line of recovery 
efforts to meet the challenge of providing decent, safe, and sanitary 
housing as expeditiously as possible and to comply to the extent 
possible with the regulations that promote that goal. HUD does not want 
the time and resources of PHAs, Indian tribes, and TDHEs diverted by 
requirements that are important but can be deferred until such time as 
a degree of normalcy in operations returns to the disaster areas. As 
the recovery period proceeds, HUD may identify other regulations for 
which waiver or temporary deferral or suspension is needed or determine 
that other alternative requirements may be necessary to assist with 
facilitation of delivery of housing to those most in need. Any 
additional HUD waivers or suspensions or other alternative requirements 
will be announced by

[[Page 66223]]

direct notice to PIH program administrators and by Federal Register 
publication.
    PIH program administrators that are not located in a disaster area 
but are assisting with Hurricane Rita recovery and relief efforts may 
request waiver of the regulations and administrative requirements 
listed in this notice through the expedited waiver request and response 
process set forth in this notice.
    In addition to the waiver of regulatory requirements, some 
statutory provisions contain built-in waiver provisions that allow 
administrative waiver of the statutory requirements for cause. Certain 
of those provisions are included in Section III.A of this notice.
    This notice lists HUD regulatory and administrative requirements 
that the Office of PIH determined needed to be waived or temporarily 
deferred or suspended during the Hurricane Rita recovery period. If 
PHAs, Indian tribes, and TDHEs, and other PIH program administrators 
identify other regulations that they believe should be waived, they 
should seek a waiver by submitting a waiver request, which specifies 
the need for a waiver, to the email address provided below in Section 
II, which describes the expedited waiver process.

II. Waiver Process

A. For PIH Program Administrators in Declared Disaster Areas

    Entities that administer public or Indian housing or voucher 
programs and are located in the areas declared a federal disaster area 
as a result of Hurricane Rita may defer or suspend compliance with the 
regulations and other administrative requirements listed in this 
notice, with the exception of the waiver of the provision in Section 
III.B.12, upon the effective date of this notice, for an initial period 
of 12 months or for such other period as may be specified in this 
notice. These entities, however, should notify HUD within two weeks of 
determination of the need to utilize the waived requirements in this 
notice, or as soon as possible, by contacting HUD in the manner 
detailed in the following paragraph.
    An official of the PHA, TDHE, tribal or local government that seeks 
the suspension of compliance with requirements listed in this notice 
must contact HUD in writing (email communication is allowed) and 
identify the requirements by section and number utilized in this notice 
(e.g., Section III.A.2., Section III.B. 1, 2, 3, etc., or ``all of the 
waived or suspended requirements in Section III''). The following email 
address has been established in order to expedite the process: Pih--
Ritadisaster--Relief@hud.gov. Please note that this email address is 
different from the email address provided for Hurricane Katrina. In 
addition, a checklist of the waived or suspended requirements is 
available at HUD's Web site at https://www.hud.gov/katrina/
proguidance.cfm, and an eligible PHA can use this checklist to identify 
the waived or suspended requirements that it will utilize.
    This is a notification process only, and HUD asks that this 
notification be made to HUD no later than two weeks after a PHA 
determines the need to rely on one or more or all of the waived or 
suspended requirements in this notice. While, as noted earlier, HUD 
does not want to impose additional administrative requirements on PIH 
program administrators located in the disaster areas during this 
period, it is important and helpful for HUD to know how these entities 
are administering their PIH programs during the recovery period, as HUD 
has tried to make this notification process as easy as possible. HUD 
will maintain information on the names of the PHAs, Indian tribes, or 
TDHEs that have deferred compliance with certain regulatory and 
administrative requirements in accordance with this notice. The 
regulation or administrative requirement will remain inapplicable for a 
period of 12 months and will be considered waived or suspended by HUD 
for an additional three months upon notification to HUD following the 
same notification process described above.

B. For PIH Program Participants in Non-Disaster Declared Areas

    PIH program administrators that are not located in a disaster area 
but are contributing to Hurricane Rita relief and recovery efforts may 
request a waiver of the regulations or administrative requirements 
listed in this notice by sending a request for a waiver to the PIH--
RitaDisaster--Relief@hud.gov email address. The request must specify 
the need, including justification, for the waiver of the requirement. 
Waiver requests submitted through this email address will receive 
priority processing.

C. Regulations and Requirements Not Waived in This Notice

    For any regulation or other administrative requirement not listed 
in this notice for which a PIH program administrator seeks waiver or 
suspension, the program administrator may seek a waiver by sending a 
request to the PIH--RitaDisaster--Relief@hud.gov email address. The 
request must specify the need, including justification, for the waiver 
of the requirement. As noted earlier, waiver requests submitted through 
this email address will receive priority processing, and HUD will 
respond to the requestor by email.
    The expedited waiver process is provided only for waiver or 
suspension of requirements that will assist with the Hurricane Rita 
relief and recovery efforts. HUD will not respond to any waiver 
requests submitted to this email address that are unrelated to relief 
and recovery of the disaster areas.

III. Authority To Grant Waivers

    Generally, waivers of HUD regulations are handled on a case-by-case 
basis. Under statutory requirements set forth in section 7(q) of the 
Department of Housing and Urban Development Act (42 U.S.C. 3535(q)), a 
regulated party that seeks a waiver of a HUD regulation must request a 
waiver from HUD in writing, and the waiver request must specify the 
need for the waiver. HUD then responds to the request in writing and, 
if the waiver is granted, HUD includes a summary of the waiver granted 
(and all regulatory waivers granted during a three-month period) in a 
Federal Register notice that is published quarterly. Since the damage 
to property and the displacement of families and individuals in the 
disaster areas is massive, and the need for regulatory relief in many 
areas pertaining to HUD-assisted housing is readily apparent, HUD is 
suspending its usual regulatory waiver protocols for the disaster areas 
and has substituted an expedited process that meets the requirements of 
section 7(q).
    In a quarterly notice of regulations waived, HUD will identify the 
PIH program administrators in the disaster areas that are utilizing one 
or more of the waived regulations in this notice or other regulations 
for which a waiver was requested or granted. The quarterly notice will 
also identify PIH program administrators that are located in non-
federally declared disaster areas and are contributing to Hurricane 
Rita relief and recovery efforts that requested and were granted 
waivers in accordance with the waiver process provided in this notice.
    The regulatory and administrative requirements set forth in Section 
III of this notice have been waived or temporarily deferred or 
suspended as provided in this notice. This action was determined 
necessary to assist PIH program administrators in the disaster areas in 
facilitating the identification and delivery of housing for families 
and individuals displaced from their homes by Hurricane Rita. PIH 
program

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administrators referenced in Section III of this notice (e.g., PHAs, 
TDHEs), even if, at times, not specifically described as PIH program 
administrators located in a disaster area, refer only to administrators 
located in disaster areas.

A. Statutory Requirements With Built-In Waiver Authority

    This section of the notice provides for one additional waiver, in 
subsection III.A.2, with respect to troubled PHAs that was not listed 
in the notice published on October 3, 2005. This waiver is available to 
the PHAs located in Katrina disaster areas as provided in the October 
3, 2005, notice.
    1. Extension of Deadline for Obligation and Expenditure of Capital 
Funds. Section 9(j)(2) of the U.S. Housing Act of 1937 (42 U.S.C. 
1437g(j)(2)) (1937 Act) authorizes the Secretary to extend the time 
period for obligation of capital funds by PHAs, as set forth in section 
9(j)(1), for such period as the Secretary determines necessary if the 
Secretary determines that the failure of the agency to obligate 
assistance in a timely manner is attributable to, among other criteria 
listed, an event beyond the control of the PHA, or any other reason 
established by the Secretary by notice published in the Federal 
Register. Pursuant to section 9(j)(1) of the 1937 Act, PHAs are 
required to obligate capital funds not later than 24 months after the 
date on which the funds became available, or the date on which the PHA 
accumulates adequate funds to undertake modernization, substantial 
rehabilitation, or new construction of units, plus the period of any 
extension approved under section 9(j)(2). The occurrence of Hurricane 
Rita was beyond the control of the PHAs located in the disaster areas 
and caused such massive and widespread destruction and displacement 
that the obligation deadline under section 9(j)(1) of the 1937 Act is 
hereby extended pursuant to section 9(j)(2) of the 1937 Act for an 
additional 12 months for PHAs located in the areas declared a federal 
disaster area.
    In addition, section 9(j)(5)(A) of the 1937 Act requires a PHA to 
expend capital funds not later than four years after the date on which 
the funds become available for obligation, plus the period of any 
extension approved under section 9(j)(2). The expenditure period under 
section 9(j)(5) is accordingly also extended in the affected areas for 
12 months to include the extension approved under section 9(j)(2). The 
extension of the section 9(j) obligation and extension deadlines made 
in this notice also apply to the implementing regulation for section 
9(j) at 24 CFR 905.120.
    2. Extension of Deadlines for Improvement of PHAs Designated 
Troubled or Substandard (Extension Available for PHAs in Hurricane Rita 
as well as Hurricane Katrina disaster areas). Sections 
6(j)(3)(B)(ii)(I) and (II) of the 1937 Act (42 U.S.C. 
1437d(j)(3)(B)(ii)(I) and (II)) and the implementing regulations for 
these sections at 24 CFR 902.75(d)(1) and (2) require that a PHA 
designated as troubled improve its performance by 50 percent within one 
year of such designation, and improve its performance to no longer be 
designated as troubled within two years of such designation. The 
implementing regulations also apply these one- and two-year deadlines 
for improvement to PHAs designated as overall troubled and substandard. 
The consequences for failure to timely achieve the required 
improvements could require the appointment of a receiver for the PHA 
pursuant to section 6(j)(3)(B)(ii)(III) of the 1937 Act and 24 CFR 
902.77 of the implementing regulations. The apparent meaning of the 
provision is that Congress intended that a troubled PHA would have one 
or two uninterrupted years of continuous operation during which to 
improve its performance so that it is no longer designated as troubled, 
before the actions by the Secretary required under section 
(6)(j)(3)(B)(ii)(III) would be triggered. HUD has determined that 
because the extraordinary conditions created by Hurricanes Katrina and 
Rita cited throughout this notice and the notice published on October 
3, 2005, were caused by acts outside the control of any PHA, and 
outside the control of any government or private entity, and because 
such conditions interrupted the one-or two-year period of contemplated 
continuous operation of the troubled agency in the disaster areas, the 
Secretary will extend by 12 months each of the respective periods for 
improvement under sections 6(j)(3)(B)(ii)(I) and (II) of the 1937 Act 
and the implementing regulations for these sections at 24 CFR 
902.75(d)(1) and (2) for troubled or substandard PHAs in the disaster 
area that were substantially impacted by the effects of Hurricanes 
Katrina and Rita. This action will permit the administrators of 
affected PHAs designated as troubled or substandard to devote their 
attention to the fullest extent necessary to address the problems 
created by the disaster.
    3. Waiver of ICDBG 50 Percent Downpayment Assistance Limitation for 
Low- and Moderate-Income Homebuyers. Section 122 of the Housing and 
Community Development Act of 1974 (42 U.S.C. 5321) authorizes the 
Secretary to suspend requirements for activities to address the damage 
in a Presidentially declared disaster area. Section 105(a)(24)(D) (42 
U.S.C. 5305) permits a grantee to provide downpayment assistance to 
low- and moderate-income homebuyers, but limits the assistance to 50 
percent of the amount of downpayment the homebuyer must provide. 
Because of the extraordinary need for housing among low- and moderate-
income evacuees, HUD finds good cause to permit downpayment assistance 
of up to 100 percent for the purchase of homes in the disaster area.

B. Regulatory Requirements

    1. 24 CFR 5.216(g)(5) (Disclosure and Verification of Social 
Security and Employer Identification Numbers). Section 5.216 addresses 
the disclosure and verification of Social Security Numbers and employer 
identification numbers of applicants for assistance under certain HUD 
assisted housing programs. Section 5.216(g) imposes special 
documentation requirements on applicants, and subsection (g)(5) 
establishes the time limit for submission of this documentation. The 
time period required for submission of verification documents is waived 
for a period of three months in the case of all families and for a 
period not to exceed 12 months with approval.
    2. 24 CFR 5.512(c) (Verification of Eligible Immigration Status; 
Secondary Verification). Section 5.512 provides the process by which 
verification of eligible immigration status must be undertaken for 
families seeking assistance under certain HUD programs. While the 
declaration of eligibility and this verification process is required by 
statute and cannot be waived, HUD does have the authority to waive 
certain deadlines. Section 5.512(d) provides the time frame under which 
a secondary verification must be requested of Immigration and Customs 
Enforcement (ICE) by the responsible entity when the primary 
verification (the automated verification system) is not conclusive of 
immigration status. The responsible entity must request ICE to 
undertake a secondary verification within 10 days of receipt of the 
results of the primary verification, and must provide ICE with all 
records on the applicant evidencing citizen or eligible immigration 
status that the applicant has provided to the responsible entity. This 
notice provides that the time frame under which a secondary 
verification must be requested is expanded from 10 days of

[[Page 66225]]

the date of the results of the primary verification to 90 days from 
such date.
    3. 24 CFR 5.801(c) and 5.801(d)(1) (Uniform Financial Reporting 
Standards (UFRS); Reporting Due Date). These sections establish uniform 
financial reporting standards for PHAs and other owners and 
administrators of HUD-assisted housing. Section 5.801(c) establishes 
the financial information requirements and Sec.  5.801(d)(1) 
establishes the filing deadline for financial information and provides 
that PHAs must submit their unaudited financial information no later 
than 60 days after the end of their fiscal year. This deadline is 
changed from 60 days to 180 days after the end of the PHA's fiscal 
year. In addition, Sec.  5.801(d)(1) requires that PHAs submit their 
audited financial information no later than nine months after the PHA's 
fiscal year end. For PHAs with fiscal years ending December 31, 2004, 
and March 31, 2005, this deadline is changed from nine months to 13 
months after the end of the PHA's fiscal year. Although PHAs are still 
required to submit unaudited and audited financial information pursuant 
to UFRS, they will not be scored under the Public Housing Assessment 
System (PHAS), as more fully discussed in Section III.B.4. below.
    4. 24 CFR part 902 (Public Housing Assessment System (PHAS)). Part 
902 sets out the indicators by which HUD measures the performance of a 
PHA. These indicators measure a PHA's physical condition, financial 
condition, management operations, and resident service and 
satisfaction. For PHAs in the areas declared a federal disaster area 
beginning with fiscal year end September 30, 2005, and for those with 
fiscal years ending March 31, 2005, and June 30, 2005, that have not 
yet received their physical condition inspections for 2005, the PHAS 
score will be the same as their previous year score. However, PHAs are 
still required to submit unaudited and audited information in 
accordance with Section III.B.3.
    5. 24 CFR 903.5 (Annual Plan Submission Deadline). Section 5A(h)(2) 
of the 1937 Act (42 U.S.C. 1437c-1(h)(2)) and 24 CFR 903.5 provide that 
a PHA Annual Plan must be submitted no later than 75 days before the 
commencement of a PHA's fiscal year. Each PHA affected may have a 
different fiscal year and for those PHAs that are approaching this 
submission deadline, this requirement may be impossible to meet because 
the PHAs are not operating. Since this requirement is a statutory one 
and not waivable by HUD without further authority, HUD is seeking 
legislative relief. However, HUD will accept as a submission a letter 
from the PHA stating that HUD should consider its existing annual plan 
to be the plan for the next year or until it submits another annual 
plan. For Capital Fund activities, PHAs may obligate their Capital 
Funds for any activity listed in their existing and approved 5-year 
plan. PHAs should also submit amendments to their 5-year plan to the 
extent necessary.
    6. 24 CFR 905.10(i) (Capital Fund Formula; Limitation of 
Replacement Housing Funds to New Development). Section 905.10 describes 
the Capital Fund formula. Section 905.10(i) limits the use of 
replacement housing funds to the development of new public housing. 
This section is waived to allow replacement housing funds to be used 
for two other areas, public housing modernization and homeownership for 
public housing families, which will help address housing needs as a 
result of the displacement caused by Hurricane Rita.
    7. 24 CFR 941.306 (Maximum Project Cost). Section 941.306 
establishes the calculation of maximum project cost and the calculation 
of the total development cost. In order to facilitate the use of 
capital funds for repairs and construction for needed housing in the 
disaster areas, HUD has waived the total development cost (TDC) and 
housing cost cap limits for all work funded by the Capital Fund and 
HOPE VI funds until issuance of new TDC levels. Until new TDC levels 
are issued, PHAs should strive to keep housing costs reasonable given 
local market conditions.
    8. 24 CFR 965.302 (Requirements for Energy Audits). This section 
establishes the requirement that all PHAs complete an energy audit for 
each PHA-owned project under management, not less than once every five 
years. PHAs that are required to conduct or update an audit this year 
are given an additional 12 months after September 30, 2005, to complete 
the audit. HUD is relieving PHAs of this administrative burden so that 
they may focus on the more urgent need to house impacted families.
    9. 24 CFR 982.54 (Administrative Plan). This section provides that 
a PHA must adopt a written administrative plan that establishes local 
policies for the administration of the Housing Choice Voucher Program 
in accordance with HUD requirements. In order to allow PHAs to exercise 
maximum flexibility with program administration as a result of 
Hurricane Rita, the PHA may temporarily revise the administrative plan 
to address unique circumstances without PHA Board of Commissioners 
approval or other authorized PHA official approval if such Board or 
officials also waive this requirement.
    10. 24 CFR 982.206 (Waiting List; Opening and Public Notice). This 
section requires a PHA to give the public notice that families may 
apply for tenant-based assistance. The regulation requires a PHA to 
publish a notice of the opening of the list in a local newspaper of 
general circulation, and also by minority media and other suitable 
means. The requirement to publish in a newspaper of general circulation 
and also by minority media is waived, and a PHA may provide such 
information on its Web site and at any of its offices and in a voice 
mail message for any callers that may inquire whether a list is opened.
    11. 24 CFR 982.401(d) (Housing Quality Standards: Space 
Requirements). By regulation, Sec.  982.401 establishes housing quality 
standards. Section 982.401(d) provides, among other things, the 
requirement for adequate space for the family. With respect to space, 
this section provides that each dwelling unit must have at least one 
bedroom or living/sleeping room for each two persons. The spacing 
requirements of this section can be waived only if the family 
understands and consents to a waiver of this provision. Again, as noted 
from the outset, the waiver of these regulations does not represent a 
long-term change but rather a temporary suspension of requirements to 
address emergency needs.
    12. 24 CFR 982.503(b) (Waiver of payment standard limit; 
Establishing Payment Standard Amounts). [Waiver of this Provision 
Available through Waiver Request.] Section 982.503(b) imposes a cap on 
the amount a PHA may establish as its payment standard amount at 110 
percent of the published fair market rent (FMR). In order to expand the 
housing available to families displaced by Hurricane Rita, PHAs in 
disaster areas may establish separate payment standard amounts up to 
120 percent of the published FMR. Higher exception rents above 120 
percent may be requested through the described expedited waiver 
process, but must be justified by rental housing data. In all cases, 
the actual gross rent for the unit leased by the family may not exceed 
what is charged for comparable unassisted units in the area.


    Note  that areas whose rental housing markets have been 
significantly affected by families displaced by Hurricane Rita may 
request a waiver through the expedited waiver review process, set 
forth in Section II of this notice, for approval of payment 
standards in excess of 110 percent of the published FMRs. However, 
the PHA must

[[Page 66226]]

provide information indicating that (1) they have a significant 
number of displaced families and (2) area rents have increased.


    13. 24 CFR 984.303 (Contract of Participation; Family Self-
Sufficiency (FSS) Program; Extension of Contract) and 24 CFR 984.105 
(Minimum Program Size). Part 984 of HUD's regulations provide the 
requirements for the Section 8 and Public Housing FSS Program. Section 
984.303 sets out the requirements for the contract of participation and 
Sec.  984.303(d) allows for an extension of the FSS program for a 
period not to exceed two years. For those families at the end of their 
initial contract term, the two-year limitation is waived and PHAs may 
provide an extension for a period not to exceed three years. This 
additional time period would account for any time lost on the FSS 
contract as a result of the displacement of families participating in 
the FSS program. Section 984.105 sets out the requirements for minimum 
FSS program size. This notice exempts PHAs from the minimum program 
size (Sec. Sec.  984.105(a) and (b)) for a period of two years.
    14. 24 CFR part 985 (Section 8 Management Assessment Program 
(SEMAP)). Part 985 sets out the requirements by which section 8 tenant-
based assistance programs are assessed. Similar to the action that HUD 
has taken with respect to the PHAS regulations in 24 CFR part 902, PHAs 
administering a section 8 tenant-based assistance program are eligible 
to defer compliance with the SEMAP requirements for a period of 12 
months.
    15. 24 CFR 990.145 (Dwelling Units with Approved Vacancies). 
Section 990.145 of the revised Operating Fund Program regulation (79 FR 
54984, September 19, 2005) lists the categories of vacant units that 
are eligible to receive operating subsidy and, therefore, are 
considered approved vacancies. PHAs that had vacant units during the 
reporting period that were not ``approved'' vacancies pursuant to Sec.  
990.145, but were available for occupancy, may treat those units as 
approved vacancies if: (1) The PHA anticipates the units will be 
occupied by families and individuals affected by the disaster during 
the upcoming funding year, or (2) the PHA is holding the units vacant 
for families and individuals affected by the disaster.
    16. 24 CFR 1000.156 and 1000.158 Indian Housing Block Grant (IHBG) 
Moderate Design Requirements for Housing Development). The IHBG program 
regulations at Sec. Sec.  1000.156 and 1000.158 require that housing 
developed with IHBG funds must be of moderate design. Under these 
regulatory sections, IHBG recipients must either adopt written moderate 
design standards or comply with the TDC limits issued by HUD. In 
recognition of the higher development costs in communities affected by 
Hurricane Rita, and to facilitate the development of housing for 
families in these communities, these moderate design requirements are 
waived for IHBG recipients until issuance of new TDC levels. Until new 
TDC levels are issued, IHBG recipients should strive to keep housing 
costs reasonable given local market conditions.
    17. 24 CFR 1000.214 (Indian Housing Plan (IHP) Submission 
Deadline). To receive an IHBG formula allocation, an Indian tribe or 
its TDHE must annually submit an IHP to HUD describing the affordable 
housing activities the Indian tribe or TDHE will undertake. Section 
1000.214 requires that the IHP must be submitted to HUD no later than 
July 1 of each year. This section is waived to permit tribes and TDHEs 
to undertake affordable housing activities on behalf of families 
displaced by Hurricane Rita, although these activities may not have 
been identified in the IHP originally submitted by the tribe or TDHE.
    18. 24 CFR 1003.400(c) and Section I.C. of FY 2005 Indian Community 
Development Block Grants (ICDBG) Program Notice of Funding Availability 
(NOFA) (Grant Ceilings for ICDBG Imminent Threat Applications). The 
ICDBG regulations at Sec.  1003.400(c) provide that HUD will establish 
grant ceilings for imminent threat applications. On March 21, 2005 (70 
FR 13655), HUD published its FY 2005 ICDBG NOFA as part of HUD's FY2005 
SuperNOFA. Section I.C. of the FY2005 ICDBG NOFA specifies that the 
grant ceiling for ICDBG imminent threat requests for FY2005 is 
$425,000. This grant ceiling is waived to permit applicants to request 
imminent threat funding in excess of $425,000 if necessary to address 
disaster-related needs in their communities.
    19. 24 CFR 1003.401 and Section I.C. of FY 2005 ICDBG NOFA 
(Application Requirements for ICDBG Imminent Threat Funds). The ICDBG 
regulations at section 1003.401 provide that, in response to 
applications for assistance, HUD may make ICDBG funds available to 
applicants to address imminent threats to health and safety. The 
regulation further provides that applications must contain the 
information specified in the annual ICDBG NOFA. The required 
information that must be contained for imminent threat applications for 
FY 2005 is located in Section I.C. of the FY 2005 ICDBG NOFA. These 
application requirements are waived to permit Indian tribes located in 
areas affected by Hurricane Rita to more expeditiously request and 
receive ICDBG imminent threat funds. Applicants located in these areas 
are still required to submit a request for imminent threat assistance 
to HUD in accordance with section 1003.401 and the FY 2005 ICDBG NOFA, 
but it is no longer necessary for the request to contain the 
information listed in Section I.C. of the NOFA.
    20. 24 CFR 1003.604 (ICDBG Citizen Participation Requirements). The 
ICDBG regulations at Sec.  1003.604 require applicants to consult with 
residents prior to submitting their funding applications. The 
consultation requirements have the potential to delay the ability of 
ICDBG recipients to address urgent housing, health, and safety needs of 
persons displaced by Hurricane Rita. Accordingly, this section is 
waived to permit eligible ICDBG applicants to address disaster-related 
needs without the need for prior resident consultation.

    Dated: October 25, 2005.
Roy A. Bernardi,
Deputy Secretary.
[FR Doc. 05-21682 Filed 10-31-05; 8:45 am]
BILLING CODE 4210-33-P