Notice of Regulatory Waiver Requests Granted for the Third Quarter of Calendar Year 2005, 8746-8780 [06-1362]

Agencies

• DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Federal Register Volume 71, Number 33 (Friday, February 17, 2006)]
[Notices]
[Pages 8746-8780]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 06-1362]



[[Page 8745]]

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Part III





Department of Housing and Urban Development





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Notice of Regulatory Waiver Requests Granted for the Third Quarter of 
Calendar Year 2005; Notice

Federal Register / Vol. 71, No. 33 / Friday, February 17, 2006 / 
Notices

[[Page 8746]]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-4997-N-03]


Notice of Regulatory Waiver Requests Granted for the Third 
Quarter of Calendar Year 2005

AGENCY: Office of the General Counsel, HUD.

ACTION: Notice.

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SUMMARY: Section 106 of the Department of Housing and Urban Development 
Reform Act of 1989 (the HUD Reform Act) requires HUD to publish 
quarterly Federal Register notices of all regulatory waivers that HUD 
has approved. Each notice covers the quarterly period since the 
previous Federal Register notice. The purpose of this notice is to 
comply with the requirements of section 106 of the HUD Reform Act. This 
notice contains a list of regulatory waivers granted by HUD during the 
period beginning on July 1, 2005, and ending on September 30, 2005.

FOR FURTHER INFORMATION CONTACT: For general information about this 
notice, contact Aaron Santa Anna, Assistant General Counsel for 
Regulations, Department of Housing and Urban Development, 451 Seventh 
Street, SW., Room 10276,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 Information Relay Service at 800-877-8339.
    For information concerning a particular waiver that was granted and 
for which public notice is provided in this document, contact the 
person whose name and address follow the description of the waiver 
granted in the accompanying list of waivers that have been granted in 
the third quarter of calendar year 2005.

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) (1991 Policy Statement). This notice covers waivers of 
regulations granted by HUD from July 1, 2005, through September 30, 
2005. For ease of reference, the waivers granted by HUD are listed by 
HUD program office (for example, the Office of Community Panning 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 regulatory waivers 
granted during the period covered by this report (the third quarter of 
calendar year 2005) before the next report is published (the fourth 
quarter of calendar year 2005), HUD will include any additional waivers 
granted for the third quarter in the next report.
    Accordingly, information about approved waiver requests pertaining 
to HUD regulations is provided in the Appendix that follows this 
notice.

    Dated: February 8, 2006.
Keith E. Gottfried,
General Counsel.

Appendix--Listing of Waivers of Regulatory Requirements Granted by 
Offices of the Department of Housing and Urban Development July 1, 
2005, Through September 30, 2005

    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 who immediately follows the 
description of the waiver granted.

     Regulation: 24 CFR 91.15(a)(2).
    Project/Activity: The County of Milwaukee, Wisconsin, requested 
waiver of 24 CFR 91.15(a)(2) of the consolidated plan submission 
regulations.
    Nature of Requirements: Section 91.15(a)(2) requires a 
participating jurisdiction to submit its consolidated plan no later 
than August 16 of the federal fiscal year for which grant funds were 
appropriated.
    Granted by: Pamela H. Patenaude, Assistant Secretary for Community 
Planning and Development.
    Date Granted: July 28, 2005.
    Reasons Waived: The County of Milwaukee sought a waiver of 24 CFR 
91.15(a)(2) to extend its submission deadline for its FY2004 
consolidated action plan until 45 days after it is notified of HUD's 
approval of its waiver request. The waiver of this provision allows the 
county to amend its FY2004 consolidated action plan to include its 
FY2003 and FY2004 American Dream Downpayment Initiative (ADDI) 
programs, and enables the county to use its FY2003 and FY2004 ADDI 
program funds to assist first time homebuyers.
    Contact: Virginia Sardone, Office of Community Planning and 
Development, Department of Housing and Urban Development, 451 Seventh 
Street, SW.,

[[Page 8747]]

Washington, DC 20410-7000, telephone (202) 708-2684.

     Regulation: 24 CFR 92.500(d)(1)(C).
    Project/Activity: The Commonwealth of Puerto Rico, through the 
Puerto Rico Department of Housing (PRDH), requested waiver of 24 CFR 
92.500(d)(1)(C) of the HOME regulations.
    Nature of Requirement: Section 92.500(d)(1)(C) requires HUD to 
reduce or recapture any HOME funds in a participating jurisdiction's 
HOME Investment Trust Fund that are not extended within five years 
after the last day of the month that HUD notifies the participating 
jurisdiction of HUD's execution of the HOME Investment Participation 
Agreement.
    Granted by: Pamela H. Patenaude, Assistant Secretary for Community 
Planning and Development.
    Date Granted: August 1, 2005.
    Reasons Waived: The Commonwealth has addressed numerous performance 
and compliance deficiencies, reorganized the administration of its HOME 
program, and implemented a new financial management system that meets 
federal standards. With the granting of the waiver, PRDH now has the 
capacity to successfully implement the HOME program to provide 
affordable housing for low-income families.
    Contact: Ginger Macomber, Office of Community Planning and 
Development, Department of Housing and Urban Development, 451 Seventh 
Street, SW., Washington, DC 20410-7000, telephone (202) 708-2684.

     Regulation: 24 CFR 91.15(a)(2).
    Project/Activity: City of Yonkers, New York, requested a waiver of 
24 CFR 91.15(a)(2) of the Consolidated Plan regulations.
    Nature of Requirement: Section 91.15(a)(2) requires a participating 
jurisdiction to submit its consolidated action plan no later than 
August 16 of the federal fiscal year for which grant funds were 
appropriated.
    Granted by: Pamela H. Patenaude, Assistant Secretary for Community 
Planning and Development.
    Date Granted: August 1, 2005.
    Reasons Waived: The City of Yonkers sought a waiver of 24 CFR 
91.15(a)(2) to extend its submission deadline for its FY2004 
consolidated action plan until 45 days after it is notified of HUD's 
approval of its waiver request. The waiver allows the city to amend its 
FY2004 consolidated action plan to include its FY2003 and FY2004 ADDI 
programs, and enables the city to use its FY2003 and FY2004 ADDI 
program funds to assist first time homebuyers.
    Contact: Martha Murray, Office of Community Planning and 
Development, Department of Housing and Urban Development, 451 Seventh 
Street, SW., Washington, DC 20410-7000, (202) 708-2684.

     Regulation: 24 CFR 92.214(a)(6).
    Project/Activity: The City of Houston, Texas, requested a waiver 
under 24 CFR 92.214(a)(6) of the HOME program regulations.
    Nature of Requirement: Section 92.214 of the HOME program 
regulations states that except for up to one year after project 
completion, HOME assistance may not be provided to a previously 
assisted HOME project during the period of affordability.
    Granted by: Pamela H. Patenaude, Assistant Secretary for Community 
Planning and Development.
    Date Granted: August 1, 2005.
    Reasons Waived: Since HUD issued its monitoring report, the city 
has taken corrective actions to inspect the single-family housing 
purchased with HOME downpayment assistance and to correct property 
standards violations.
    Contact: Martha Murray, Office of Community Planning and 
Development, Department of Housing and Urban Development, 451 Seventh 
Street, SW., Washington, DC 20410-7000, telephone (202) 708-2684.

     Regulation: 24 CFR 92.503(b).
    Project/Activity: Dakota County Consortium, Minnesota, requested 
waiver of 24 CFR 92.503(b) of the HOME program regulations.
    Nature of Requirements: Section 92.503(b) of the HOME program 
regulations requires that any HOME funds invested in a project that 
fails to meet the affordability requirements for the period specified 
in 24 CFR 92.252 be repaid by the participating jurisdiction to its 
HOME account.
    Granted by: Pamela H. Patenaude, Assistant Secretary for Community 
Planning and Development.
    Date Granted: September 20, 2005.
    Reasons Waived: In lieu of repayment, the Dakota County Consortium 
requested a waiver to enable it to substitute a comparable property for 
a HOME-assisted property. In addition to being comparable, the 
substitute property must have received no federal aid. The granting of 
the waiver allowed the consortium to transfer the HOME affordability 
requirements to the substitute property for the remainder of the 
affordability period.
    Contact: Shawna Burrell, Office of Community Planning and 
Development, Department of Housing and Urban Development, 451 Seventh 
Street, SW., Washington, DC 20410-7000, telephone (202) 708-2684.

     Regulation: 24 CFR 570.380(a).
    Project/Activity: The City of Carmel, Indiana requested a waiver of 
the Community Development Block Grant (CDBG) program regulations at 24 
CFR 570.308(a).
    Granted by: Pamela H. Patenaude, Assistant Secretary for Community 
Planning and Development.
    Date Granted: September 21, 2005.
    Reasons Waived: The granting of the waiver permitted consideration 
by HUD of a joint request from Carmel and Hamilton County to include 
the City as part of the urban county during FY2006 for the purpose of 
planning and implementing a joint community development and housing 
program.
    Contact: Gloria Coates, Office of Community Planning and 
Development, Department of Housing and Urban Development, 451 Seventh 
Street, SW., Washington, DC 20410-7000, telephone (202) 708-1577.

     Regulation: 24 CFR 574.310(d) and 574.320(a)(1).
    Project/Activity: Marin County, California requests a waiver of the 
HOPWA resident rent payment and maximum subsidy regulations at 24 CFR 
574.310(d) and 574.320(a)(1).
    Granted by: Nelson Bregon, General Deputy Assistant Secretary for 
Community Planning and Development.
    Date Granted: July 8, 2005.
    Reasons Waived: The waiver permits Marin County to increase the 
resident rent payment from 30 percent to 40 percent of the program 
recipient's monthly-adjusted income for the purposes of lowering the 
subsidy amount HOPWA clients receive for rental assistance. This action 
allows Marin County to continue providing rental housing assistance to 
its current 50 clients with maximum rental assistance subsidy without 
terminating rental assistance for up to 18 clients.
    Contact: David Vos, Office of Community Planning and Development, 
Department of Housing and Urban Development, 451 7th Street, SW., 
Washington, DC 20410-7000, telephone (202) 708-1934.

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

    For further information about the following regulatory waivers, 
please see the name of the contact person that immediately follows the 
description of the waiver granted.
     Regulation: 24 CFR 200.40(d)(1).
    Project/Activity: The following projects requested waivers to the 
application fee at 24 CFR 200.40(d)(1).

[[Page 8748]]



------------------------------------------------------------------------
             FHA No.                      Project              State
------------------------------------------------------------------------
03135237........................  Arlington Arms           NJ
                                   Apartments.
10235180........................  Brookridge Plaza         KS
                                   Apartments.
01335126........................  Elizabeth Square         NY
                                   Apartments.
06135383........................  Moultrie Manor           GA
                                   Apartments.
12335118........................  Mountain View            AZ
                                   Apartments.
02336613........................  Lena Park (Granite       MA
                                   Package 7).
11744034........................  Rolling Meadows of Enid  OK
05135350........................  Garrison Woods.........  VA
06435006........................  Sunlight Manor           LA
                                   Apartments.
09435014........................  Dakota Estates           ND
                                   Retirement Center.
05335440........................  Arcadia Village          NC
                                   Apartments.
07335416........................  Gary NSA III Apartments  IN
07135469........................  Englewood Eden Green...  IL
07335255........................  The Oaks Apartments III  IN
03444055........................  Interfaith Heights.....  PA
06444112........................  Gulfway Terrace          LA
                                   Apartments.
11535159........................  Donna Village            TX
                                   Apartments.
05435494........................  Standpoint Vista         SC
                                   Apartments.
01257308........................  Villa Alejandrina......  NY
07335596........................  Cambridge Estates Phase  IN
                                   IV.
07335299........................  Gardens of Greenbriar    IN
                                   Apartments.
07335371........................  Beacon Heights.........  IN
01735090........................  Hill Central Community   CT
                                   Cooperative.
01257346........................  Mother Zion Apartments.  NY
08635179........................  Margaret Robertson       TN
                                   Apartments.
11335067........................  Gholson Hotel..........  TX
01232258........................  Maplewood Apartments...  NY
11235330........................  Cove Village Apartments  TX
05335319........................  Alamance Plaza.........  NC
07135568........................  Austin Renaissance.....  IL
04744016........................  Pinebrook Manor........  MI
03444017........................  Garden Court Apartments  PA
05635077........................  Manati Plaza Apartments  PR
06135382........................  Capitol Towers.........  GA
05335406........................  Rochelle Manor           NC
                                   Apartments.
12735359........................  Broadway Plaza           WA
                                   Apartments.
05635110........................  San Cristobal            PR
                                   Apartments.
11435322........................  Colonial Park            TX
                                   Apartments.
03535082........................  Park Plaza Apartments..  NJ
07135441........................  Madison Terrace          IL
                                   Apartments.
10911006........................  Del Mar Apartments.....  WY
07135483........................  Washington Scene         IL
                                   Apartments.
10935045........................  Cheyenne North           WY
                                   Apartments.
08435253........................  Kings Cove Apartments..  MO
06235209........................  Cedars Green Apartments  AL
07135436........................  Roosevelt Independence.  IL
04635170........................  Hi-Land Terrace          OH
                                   Apartments.
10135274........................  California Park East...  CO
06535351........................  Canton Estates           MS
                                   Apartments.
06235283........................  Normandale Apartments..  AL
03335151........................  Evergreen Arbors.......  PA
04235405........................  West Park Senior Center  OH
05935181........................  Bond House.............  LA
05938005........................  Wellington Square......  LA
12735360........................  New Central Hotel......  WA
01435059........................  Roosevelt Apartments...  NY
02335268........................  Piedmont Brightside      MA
                                   Apartments.
05235367........................  Windsor Gardens........  MD
06694016........................  Federal Apartments.....  FL
10935062........................  Springhill I Apartments  WY
10935063........................  Springhill II            WY
                                   Apartments.
10935064........................  Springhill III           WY
                                   Apartments.
04335287........................  Melanie Manor..........  OH
11344071........................  Western Heights          TX
                                   Apartments.
08535391........................  College Hill Apartments  MO
02336612........................  Washington Columbia      MA
                                   Apartments.
04235402........................  Brookside Village......  OH
08335176........................  Cambridge Square         KY
                                   Apartments.
05635123........................  Villa Machuelo.........  PR
06535362........................  George E. Lewis Estates  MS
05635131........................  Brisas De San Alfonso..  PR
05635113........................  Trujillo Alto Gardens..  PR
07335585........................  Mill Run Apartments....  IN
04335162........................  The Orchards II........  OH

[[Page 8749]]

 
05235362........................  Upton Druid Apartments.  MD
04335182........................  The Orchards I.........  OH
03135235........................  Broadway Manor           NJ
                                   Apartments.
07335600........................  Cloverdale Heights       IN
                                   Apartments II.
12735346........................  Jackson Apartments.....  WA
08535251........................  Union Sarah Rehab SS II  MO
07535313........................  Renaissance Apartments.  WI
03435210........................  Daniel Scott Commons...  PA
00035334........................  Benning Heights........  DC
06544042........................  Northwood Village......  MS
12135678........................  Mercy Terrace..........  CA
01435002........................  Metro Interfaith.......  NY
01335120........................  Schuyler Court           NY
                                   Apartments.
10935006........................  Sertoma Senior Citizens  WY
                                   Housing, Inc..
01257338........................  Brownsville Gardens....  NY
01332004........................  Providence Hall........  NY
08735141........................  Ivy Avenue Apartments..  TN
05935039........................  Cooper Road Plaza        LA
                                   Apartments.
07335624........................  Fairington of Fort       IN
                                   Wayne.
07335531........................  River Run Apartments...  IN
06144148........................  Shy Manor Apartments...  GA
06535040........................  Eastgate Garden          MS
                                   Apartments.
06144197........................  Blakewood Apartments...  GA
05235350........................  Barclay Greenmount.....  MD
06135312........................  Oakwood Apartments.....  GA
04735006........................  Neighborhood Apartments  MI
03135244........................  Hampshire House........  NJ
10110557........................  Birchwood Manor........  CO
08335012........................  Highland Heights         KY
                                   Apartments.
08344081........................  Belmont Court            KY
                                   Apartments.
06144040........................  Holsey Cobb Village      GA
                                   Apartments.
08335033........................  Woodland Heights.......  KY
04535004........................  Abram-King Memorial      WV
                                   Apartments.
03344088........................  Grant Towers...........  PA
06544802........................  Madonna Manor..........  MS
05235312........................  Cumberland Manor.......  MD
07355120........................  Eden Green Apartments..  IN
08344024........................  Edgewood Village         KY
                                   Apartments.
12735200........................  Lake Chelan Community    WA
                                   Apartments.
12135758........................  La Serena Apartments...  CA
07335591........................  Jamestown Square of      IN
                                   Washington.
07344403........................  Fowler Apartments......  IN
07335605........................  Cambridge Square of      IN
                                   Bedford.
04335289........................  Beasley Mills            OH
                                   Apartments.
04535159........................  West View Manor........  WV
04235403........................  Highland Crest           OH
                                   Apartments.
06244012........................  Alta Vista Apartments..  AL
07344166........................  Troy Manor Cooperative   IN
                                   II.
07344167........................  Troy Manor Cooperative   IN
                                   III.
06535091........................  Southwest Village        MS
                                   Apartments.
04344061........................  Rosa Parks Apartments..  OH
09135016........................  Townhouse Apartments...  SD
04292505........................  Marshall Plaza II......  OH
09135026........................  Fairlane Apartments....  SD
08635189........................  Southfield Apartments..  TN
12135737........................  Flores Gardens           CA
                                   Apartments.
07335229........................  Cambridge Square of      IN
                                   Marion.
07435229........................  Oak Hill Manor.........  IA
00035427........................  Cavalier Apartments....  DC
07335459........................  Gary NSA V.............  IN
12344027........................  Broadway House.........  AZ
06435246........................  Stonehenge Apartments..  LA
05392503........................  Park Heights Apartments  NC
01257216........................  Malcolm X 11-Phase A     NY
                                   Apartments.
09338006........................  Glacier Manor..........  MT
06144105........................  Cedar Avenue Apartments  GA
07344175........................  Vinton Woods             IN
                                   Cooperative III.
04535154........................  Manor House Apartments.  WV
11535198........................  Fifty Oaks Apartments..  TX
06592501........................  William H. Bell          MS
                                   Apartments.
11535163........................  Alamo Village            TX
                                   Apartments.
11535338........................  Fox Run Apartments.....  TX
06411067........................  Pine Hill Estates......  LA
11535245........................  Castle Manor Apartments  TX

[[Page 8750]]

 
05935196........................  Stone Vista Apartments.  LA
11744094........................  Town and Country         OK
                                   Apartments.
12144371........................  Villa Fontana            CA
                                   Apartments.
04535074........................  Freedom Place I........  WV
02336614........................  Field Corner Granite...  MA
07335286........................  Camelot Court of Paoli.  IN
02335279........................  Ashland Commons........  MA
01332005........................  Amsterdam Sr. Citizen    NY
                                   Housing.
06535012........................  Susie B. West            MS
                                   Apartments.
06535082........................  Edgewood Manor           MS
                                   Apartments.
03435212........................  Monte Vista Apartments.  PA
06135031........................  Eastgate Apartments....  GA
01257322........................  Woodycrest Courts II...  NY
01235541........................  New Square Family        NY
                                   Housing.
04544014........................  Vandalia Terrace         WV
                                   Apartments.
01257017........................  Friendset Apartments...  NY
07135254........................  Ridgewood Towers         IL
                                   Apartments.
07392002........................  South Towne Square       IN
                                   Apartments.
07435003........................  Oakridge Neighborhood    IA
                                   (DMACC).
04535069........................  Dunbar Towers..........  WV
04535018........................  Calhoun Homes..........  WV
02336616........................  Quincy Geneva--Granite   MA
                                   11B.
12344044........................  Hartford Apartments....  AZ
06544052........................  Broadway Estates.......  MS
08635013........................  East Gate Apartments...  TN
05392508........................  Spring Valley            NC
                                   Apartments.
10335020........................  Valentine Apartments...  NE
07344071........................  Garden Estates West....  IN
01335128........................  Fulton Mill Apartments.  NY
11535162........................  Rio Hondo Village......  TX
10235105........................  Concordia II Apartments  KS
10244092........................  Concordia Apartments...  KS
01444056........................  Corning Mews Apartments  NY
01444043........................  Apple Blossom Acres....  NY
06111135........................  Wisdom Woods Apartments  GA
06535005........................  Francis Street           MS
                                   Apartments.
08635149........................  Algood Manor Apartments  TN
11344016........................  Woodland Village         TX
                                   Apartments.
04535007........................  Miracle Acres..........  WV
07344119........................  Gardenside Terrace       IN
                                   Cooperative II.
07344118........................  Gardenside Terrace       IN
                                   Cooperative I.
06135536........................  Amberwood Apartments...  GA
07135426........................  Concord Commons          IL
                                   Apartments.
06235323........................  Claiborne Arms           AL
                                   Apartments.
09344055........................  Thompson Falls Lions     MT
                                   Manor.
05335009........................  Zion Hills Apartments..  NC
06744125........................  Palm Avenue Baptist      FL
                                   Apartments.
09335035........................  Sunset Capital           MT
                                   Apartments.
08144038........................  Tyson Park Apartments..  TN
04644005........................  Asbury Apartments......  OH
08611043........................  Buena Vista Manor        TN
                                   Apartments.
05294031........................  York Park Apartments...  MD
01257288........................  McKinley Manor           NY
                                   Apartments.
08635015........................  Haynes Garden            TN
                                   Apartments.
04335098........................  Garden Manor Apartments  OH
01435035........................  Touraine Apartments....  NY
07335018........................  Greenwood Apartments...  IN
05335047........................  Stewart's Creek          NC
                                   Apartments.
09335092........................  Crestwood Inn..........  MT
04244054........................  Channelwood Village      OH
                                   (aka Callis Tower).
08635062........................  Spring Haven Apartments  TN
08344019........................  Heather Hills II Apts    KY
                                   (aka Danville II).
08335344........................  Countryview Apartments.  KY
10235111........................  Greenway Park            KS
                                   Apartments.
04535078........................  Montani Towers.........  WV
08335222........................  Holley Manor Annex       KY
                                   Apartments.
04635046........................  Parkview Arms I........  OH
11435007........................  Louis Manor Apartments.  TX
11735033........................  Columbia Square          OK
                                   Apartments.
04244043........................  Moody Manor............  OH
04255046........................  Marshall Plaza I.......  OH
01257324........................  McGee Hill Apartments..  NY
06592002........................  South Park Village       MS
                                   Apartments.
03135246........................  Spruce Park Apartments.  NJ

[[Page 8751]]

 
11835117........................  James B. Milam           OK
                                   Apartments.
11244063........................  Liberty Arms Apartments  TX
11844044........................  Coweta Apartments......  OK
08644021........................  Knollcrest Manor         TN
                                   Apartments.
04238002........................  Firelands Retirement     OH
                                   Center.
06535066........................  Delta Apartments.......  MS
08535294........................  Kirksville Heights       MO
                                   Apartments.
09144048........................  Village Green..........  SD
04635265........................  Carl Apartments........  OH
04235029........................  Regina Manor...........  OH
04244020........................  Pentecostal Apartments.  OH
13335002........................  Northcrest Apartments..  TX
01232230........................  Armory Plaza...........  NY
08211012........................  The Pines Apartments...  AR
05335046........................  Elizabeth Manor          NC
                                   Apartments.
08638005........................  Madison View Towers....  TN
12235580........................  Strathern Court........  CA
05935038........................  Lakeside Garden          LA
                                   Apartments.
12135750........................  Rumrill Gardens........  CA
03232002........................  Quaker Hill Place......  DE
08144035........................  Creekwood Village        TN
                                   Apartments.
08335030........................  Parkway Villa            KY
                                   Apartments.
10535071........................  Milford Haven            UT
                                   Apartments.
07335226........................  Hammond Elderly          IN
                                   Apartments.
11844075........................  Beard Estates..........  OK
07335557........................  Twyckenham Apartments..  IN
10235131........................  Clinton Parkway........  KS
11335075........................  Peppertree Acres.......  TX
04535089........................  Pleasantview Towers....  WV
08435204........................  Catalpa Tree Apartments  MO
06135215........................  Ashley House Apartments  GA
08655001........................  CWA I Apartments.......  TN
09235331........................  Maplewood Gardens......  MN
04635566........................  Wilmington Green III...  OH
04635585........................  St. Francis Court        OH
                                   Apartments.
03135173........................  Aspen Temple...........  NJ
04335262........................  Jeffersonville Green II  OH
09235252........................  Raintree West            MN
                                   Apartments.
10535035........................  Stonehedge I...........  UT
06435341........................  Winnsboro Homes........  LA
07344088........................  Grandville Cooperative   IN
                                   III.
04235013........................  Kenmore Village I......  OH
07344059........................  Grandville Cooperative   IN
                                   I.
07344087........................  Grandville Cooperative   IN
                                   II.
01257312........................  James Alston (SEBCO      NY
                                   Banana Kelly).
11544138........................  Villa San Benito         TX
                                   Apartments.
04635666........................  La Luz Apartments......  OH
05435343........................  Manning Gardens........  SC
08511059........................  Mexico Housing for the   MO
                                   Elderly.
04744066........................  Oak Tree Village.......  MI
17155001........................  Tri-Cities Low Cost      WA
                                   Housing.
12235488........................  East 35th Street         CA
                                   Apartments.
03135162........................  Aspen Stratford A......  NJ
08535460........................  Cape Gardens Apartments  MO
04744090........................  Briar Hills Apartments.  MI
09332003........................  Serendipity............  MT
05335016........................  Park View Terrace......  NC
01257246........................  Union Avenue Apartments  NY
08635166........................  Greentree Apartments...  TN
06444093........................  Haydel Heights           LA
                                   Apartments.
05435399........................  Laurens Villa            SC
                                   Apartments.
08535234........................  HDC Retirement Village.  MO
08335633........................  Meadowbrook Apartments.  KY
10144803........................  NEDCO for the Elderly    CO
                                   dba Liggins Tower.
04635474........................  The Terraces Apartments  OH
05335248........................  Sir Walter Apartments..  NC
04535102........................  Market Manor...........  WV
12138108........................  Wesley Manor...........  CA
01335127........................  Park Drive Manor II....  NY
08335631........................  Sycamore Terrace.......  KY
08335621........................  Richmond Manor           KY
                                   Apartments.
04635482........................  Camden Way I...........  OH
11435047........................  Eastwood Terrace.......  TX
05435514........................  Heritage Court.........  SC

[[Page 8752]]

 
05938007........................  Cedar Hill Apartments..  LA
05311135........................  Arrowhead Apartments...  NC
11335239........................  Blue Water Garden        TX
                                   Apartments.
11644025........................  Sunset 1600 Apartments.  NM
05335739........................  Clinton Housing for the  NC
                                   Elderly.
11235117........................  Roxton Arms Apartments.  TX
12135785........................  Terman Apartments......  CA
04635017........................  Shelton Gardens........  OH
07335284........................  Camelot Court of French  IN
                                   Lick.
05335428........................  Greentree Village        NC
                                   Apartments.
05655046........................  Water Guts Homes.......  VI
06135230........................  Jefferson Apartments...  GA
05655029........................  Lagoon Street Homes....  VI
06135250........................  Sandy Springs            GA
                                   Apartments.
04244135........................  Community Circle I.....  OH
17144902........................  Orchard Villa            ID
                                   Apartments.
03535086........................  New Sharon Woods.......  NJ
13635613........................  Marymead Park            CA
                                   Apartments.
08535274........................  Wellston Townhouses....  MO
01735232........................  Fairhaven Elderly        CT
                                   Apartments.
05155005........................  Fairhills Apartments...  VA
01257247........................  Washington Plaza.......  NY
01257193........................  Felisa Rincon De         NY
                                   Gautier.
07235043........................  Sunnycrest Manor.......  IL
06435045........................  Bacmonila Garden         LA
                                   Apartments.
00035313........................  Ivy City Apartments....  DC
05435339........................  Fleetwood Manor........  SC
04635486........................  Village Park...........  OH
07311275........................  Briarwood Village......  IN
07335588........................  Austin Village           IN
                                   Apartments.
07435131........................  Autumn Park Apartments.  IA
10335069........................  Empire Apartments......  NE
04535072........................  Parkland Place.........  WV
11535108........................  Robinhood Apartments...  TX
04344088........................  Maplewood Apartments...  OH
01435064........................  Springside Meadows.....  NY
04335148........................  Northwood Apartments...  OH
04335268........................  Pleasant View, Ltd.....  OH
08335243........................  Madison Avenue           KY
                                   Apartments.
08435188........................  Cameron Estates........  MO
04544038........................  North Park Apartments..  WV
08444129........................  Sherri Estates.........  MO
12135638........................  Rancho Sol.............  CA
12135639........................  Rancho Luna............  CA
08144018........................  Corning Village          TN
                                   Apartments.
03135248........................  Highview Terrace.......  NJ
04535116........................  Ravenswood Station.....  WV
06694031........................  Driftwood Terrace        FL
                                   Apartments.
04535115........................  Senior Towers..........  WV
10135245........................  Allison Village........  CO
12135641........................  Hayward Villa..........  CA
12135647........................  Fairway Apartments.....  CA
07311199........................  100 Center Hi-Rise       IN
                                   Apartments.
01257286........................  Battle Hill Houses.....  NY
07135499........................  Clifton Apartments.....  IL
04235432........................  South Toledo Homes.....  OH
05635053........................  Muneki I...............  PR
08344098........................  Valley View Apartments.  KY
01438002........................  Linwood Congregate.....  NY
05635054........................  Joanne Gardens (aka      PR
                                   Jardines De Joanne).
05135393........................  Shockoe Hill Apartments  VA
                                   II.
09135068........................  Valley Hi Apartments...  SD
01335074........................  Auburn Heights           NY
                                   Apartments.
10335070........................  Regency Place..........  NE
03335094........................  Towne Towers...........  PA
04235423........................  Palmer Gardens.........  OH
08535237........................  New Madrid Villa.......  MO
08535240........................  Malden Villa Apartments  MO
04235283........................  Indian Village           OH
                                   Apartments.
08535238........................  Lilbourn Villa.........  MO
01257319........................  Fulton Street South....  NY
01235352........................  Woodland Townhouses....  NY
01211266........................  2059 Madison Avenue....  NY
------------------------------------------------------------------------


[[Page 8753]]

    Nature of Requirement: Section 200.40 establishes fees to be 
applied to Mark-to-Market transactions with FHA insured mortgages. The 
intent of this provision is to provide an extra incentive to encourage 
owner cooperation with the process in a timely manner.
    Granted by: Brian D. Montgomery, Assistant Secretary for Housing--
Federal Housing Commissioner.
    Date Granted: August 2, 2005.
    Reason Waived: The projects listed above were FHA insured and 
incentives were necessary to encourage cooperation.
    Contact: Norman Dailey, Office of Affordable Housing Preservation, 
Department of Housing and Urban Development, 451 Seventh Street, SW., 
Washington, DC 20410-8000; telephone (202) 708-0614, ext. 8371.

     Regulation: 24 CFR 200.40(h).
    Project/Activity: The following projects requested waivers to the 
application fee CFR at 200.40(h).

------------------------------------------------------------------------
             FHA No.                      Project              State
------------------------------------------------------------------------
01257324........................  McGee Hill Apartments..  NY
06592002........................  South Park Village       MS
                                   Apartments.
03135246........................  Spruce Park Apartments.  NJ
11835117........................  James B. Milam           OK
                                   Apartments.
11244063........................  Liberty Arms Apartments  TX
11844044........................  Coweta Apartments......  OK
08644021........................  Knollcrest Manor         TN
                                   Apartments.
04238002........................  Firelands Retirement     OH
                                   Center.
06535066........................  Delta Apartments.......  MS
08535294........................  Kirksville Heights       MO
                                   Apartments.
09144048........................  Village Green..........  SD
04635265........................  Carl Apartments........  OH
04235029........................  Regina Manor...........  OH
04244020........................  Pentecostal Apartments.  OH
13335002........................  Northcrest Apartments..  TX
01232230........................  Armory Plaza...........  NY
08211012........................  The Pines Apartments...  AR
05335046........................  Elizabeth Manor          NC
                                   Apartments.
08638005........................  Madison View Towers....  TN
12235580........................  Strathern Court........  CA
05935038........................  Lakeside Garden          LA
                                   Apartments.
12135750........................  Rumrill Gardens........  CA
03232002........................  Quaker Hill Place......  DE
08144035........................  Creekwood Village        TN
                                   Apartments.
08335030........................  Parkway Villa            KY
                                   Apartments.
10535071........................  Milford Haven            UT
                                   Apartments.
07335226........................  Hammond Elderly          IN
                                   Apartments.
11844075........................  Beard Estates..........  OK
07335557........................  Twyckenham Apartments..  IN
10235131........................  Clinton Parkway........  KS
11335075........................  Peppertree Acres.......  TX
04535089........................  Pleasantview Towers....  WV
08435204........................  Catalpa Tree Apartments  MO
06135215........................  Ashley House Apartments  GA
08655001........................  CWA I Apartments.......  TN
09235331........................  Maplewood Gardens......  MN
04635566........................  Wilmington Green III...  OH
04635585........................  St. Francis Court        OH
                                   Apartments.
03135173........................  Aspen Temple...........  NJ
04335262........................  Jeffersonville Green II  OH
09235252........................  Raintree West            MN
                                   Apartments.
10535035........................  Stonehedge I...........  UT
06435341........................  Winnsboro Homes........  LA
07344088........................  Grandville Cooperative   IN
                                   III.
04235013........................  Kenmore Village I......  OH
07344059........................  Grandville Cooperative   IN
                                   I.
07344087........................  Grandville Cooperative   IN
                                   II.
01257312........................  James Alston (SEBCO      NY
                                   Banana Kelly).
11544138........................  Villa San Benito         TX
                                   Apartments.
04635666........................  La Luz Apartments......  OH
05435343........................  Manning Gardens........  SC
08511059........................  Mexico Housing for the   MO
                                   Elderly.
04744066........................  Oak Tree Village.......  MI
17155001........................  Tri-Cities Low Cost      WA
                                   Housing.
12235488........................  East 35th Street         CA
                                   Apartments.
03135162........................  Aspen Stratford A......  NJ
08535460........................  Cape Gardens Apartments  MO
04744090........................  Briar Hills Apartments.  MI
09332003........................  Serendipity............  MT
05335016........................  Park View Terrace......  NC
01257246........................  Union Avenue Apartments  NY
08635166........................  Greentree Apartments...  TN

[[Page 8754]]

 
06444093........................  Haydel Heights           LA
                                   Apartments.
05435399........................  Laurens Villa            SC
                                   Apartments.
08535234........................  HDC Retirement Village.  MO
08335633........................  Meadowbrook Apartments.  KY
10144803........................  NEDCO for the Elderly    CO
                                   dba Liggins Tower.
04635474........................  The Terraces Apartments  OH
05335248........................  Sir Walter Apartments..  NC
04535102........................  Market Manor...........  WV
12138108........................  Wesley Manor...........  CA
01335127........................  Park Drive Manor II....  NY
08335631........................  Sycamore Terrace.......  KY
08335621........................  Richmond Manor           KY
                                   Apartments.
04635482........................  Camden Way I...........  OH
11435047........................  Eastwood Terrace.......  TX
05435514........................  Heritage Court.........  SC
05938007........................  Cedar Hill Apartments..  LA
05311135........................  Arrowhead Apartments...  NC
11335239........................  Blue Water Garden        TX
                                   Apartments.
11644025........................  Sunset 160 Apartments..  NM
05335739........................  Clinton Housing for the  NC
                                   Elderly.
11235117........................  Roxton Arms Apartments.  TX
12135785........................  Terman Apartments......  CA
04635017........................  Shelton Gardens........  OH
07335284........................  Camelot Court of French  IN
                                   Lick.
05335428........................  Greentree Village        NC
                                   Apartments.
05655046........................  Water Guts Homes.......  VI
06135230........................  Jefferson Apartments...  GA
05655029........................  Lagoon Street Homes....  VI
06135250........................  Sandy Springs            GA
                                   Apartments.
04244135........................  Community Circle I.....  OH
17144902........................  Orchard Villa            ID
                                   Apartments.
03535086........................  New Sharon Woods.......  NJ
13635613........................  Marymead Park            CA
                                   Apartments.
08535274........................  Wellston Townhouses....  MO
01735232........................  Fairhaven Elderly        CT
                                   Apartments.
05155005........................  Fairhills Apartments...  VA
01257247........................  Washington Plaza.......  NY
01257193........................  Felisa Rincon De         NY
                                   Gautier.
07235043........................  Sunnycrest Manor.......  IL
06435045........................  Bacmonila Garden         LA
                                   Apartments.
00035313........................  Ivy City Apartments....  DC
05435339........................  Fleetwood Manor........  SC
04635486........................  Village Park...........  OH
07311275........................  Briarwood Village......  IN
07335588........................  Austin Village           IN
                                   Apartments.
07435131........................  Autumn Park Apartments.  IA
10335069........................  Empire Apartments......  NE
04535072........................  Parkland Place.........  WV
11535108........................  Robinhood Apartments...  TX
04344088........................  Maplewood Apartments...  OH
01435064........................  Springside Meadows.....  NY
04335148........................  Northwood Apartments...  OH
04335268........................  Pleasant View, Ltd.....  OH
08335243........................  Madison Avenue           KY
                                   Apartments.
08435188........................  Cameron Estates........  MO
04544038........................  North Park Apartments..  WV
08444129........................  Sherri Estates.........  MO
12135638........................  Rancho Sol.............  CA
12135639........................  Rancho Luna............  CA
08144018........................  Corning Village          TN
                                   Apartments.
03135248........................  Highview Terrace.......  NJ
04535116........................  Ravenswood Station.....  WV
06694031........................  Driftwood Terrace        FL
                                   Apartments.
04535115........................  Senior Towers..........  WV
10135245........................  Allison Village........  CO
12135641........................  Hayward Villa..........  CA
12135647........................  Fairway Apartments.....  CA
07311199........................  100 Center Hi-Rise       IN
                                   Apartments.
01257286........................  Battle Hill Houses.....  NY
07135499........................  Clifton Apartments.....  IL
04235432........................  South Toledo Homes.....  OH
05635053........................  Muneki I...............  PR
08344098........................  Valley View Apartments.  KY
01438002........................  Linwood Congregate.....  NY

[[Page 8755]]

 
05635054........................  Joanne Gardens (aka      PR
                                   Jardines De Joanne).
05135393........................  Shockoe Hill Apartments  VA
                                   II.
09135068........................  Valley Hi Apartments...  SD
01335074........................  Auburn Heights           NY
                                   Apartments.
10335070........................  Regency Place..........  NE
03335094........................  Towne Towers...........  PA
04235423........................  Palmer Gardens.........  OH
08535237........................  New Madrid Villa.......  MO
08535240........................  Malden Villa Apartments  MO
04235283........................  Indian Village           OH
                                   Apartments.
08535238........................  Lilbourn Villa.........  MO
01257319........................  Fulton Street South....  NY
01235352........................  Woodland Townhouses....  NY
01211266........................  2059 Madison Avenue....  NY
------------------------------------------------------------------------

    Nature of Requirement: Section 200.40 establishes fees to be 
applied to Mark-to-Market transactions with FHA insured mortgages. The 
intent of this provision is to provide an extra incentive to encourage 
owner cooperation with the process in a timely manner.
    Granted by: Brian D. Montgomery, Assistant Secretary for Housing--
Federal Housing Commissioner.
    Date Granted: August 2, 2005.
    Reason Waived: The projects listed above were FHA insured and 
incentives were necessary to encourage cooperation.
    Contact: Norman Dailey, Office of Affordable Housing Preservation, 
Department of Housing and Urban Development, 451 Seventh Street, SW., 
Washington, DC 20410-8000; telephone (202) 708-0614, ext. 8371.

     Regulation: 24 CFR 203.371(b)(3), 203.414, 203.402(g)(2).
    Project/Activity: Assist victims of Hurricane Katrina impacted by 
above provisions.
    Nature of Requirement: These sections that address partial claims 
were waived to assist in dealing with Hurrican Disaster Relief.
    Granted by: Brian D. Montgomery, Assistant Secretary for Housing--
Federal Housing Commissioner.
    Date Granted: September 22, 2005.
    Reason Waived: To assist in dealing with Hurricane Disaster Relief.
    Contact: Ray D. Washington, Office of Single Family Housing Asset 
Management, Department of Housing and Urban Development, 451 Seventh 
Street, SW., Washington, DC 20410-8000; telephone (202) 708-0614, ext. 
2378.

     Regulation: 24 CFR 203.37(a).
    Project/Activity: Presidential declared disaster areas caused by 
Hurricane Katrina.
    Nature of Requirement: HUD regulations at 24 CFR 203.37a(b)(2) 
provides that properties that have a resale date 90 days or less 
following the date of acquisition by the seller are not eligible for an 
FHA insured mortgage.
    Granted by: Brian D. Montgomery, Assistant Secretary for Housing--
Federal Housing Commissioner.
    Date Granted: September 28, 2005.
    Reason Waived: It is recognized that safe and adequate housing is a 
major factor in the restoration and stabilization of communities 
following a natural disaster. Investors and developers can play a major 
role in the recovery of housing stock in the hurricane ravaged areas. 
The urgent need to increase housing stock outweighs the property 
flipping issues in this case.
    Contact: Margaret E. Burns, Director, Single Family Program 
Development, Department of Housing and Urban Development, 451 Seventh 
Street, SW., Washington, DC 20410-8000; telephone (202) 708-0614, ext. 
3989.

     Regulation: 24 CFR 219.220(b).
    Project/Activity: Wellesley Townhouses Cooperative, Romulus, 
Michigan, Project numbers 044-55058, 044-55059, 044-55060, 044-55061; 
and 044-55062.
    Nature of Requirement: Section 219.220(b) governs the repayment of 
operating assistance provided under the Flexible Subsidy Program for 
Troubled Projects prior to May 1, 1996 states: ``Assistance that has 
been paid to a project owner under this subpart must be repaid at the 
earlier of the expiration of the term of the mortgage, termination of 
mortgage insurance, prepayment of the mortgage, or sale of the 
project.'' These actions would typically terminate FHA involvement with 
the property, and the Flexible Subsidy loan would be repaid, in whole, 
at that time.
    Granted by: Brian D. Montgomery, Assistant Secretary for Housing--
Federal Housing Commissioner.
    Date Granted: September 28, 2005.
    Reason Waived: The Assistant Secretary for Housing granted waiver 
of this request. Wellesley Townhouses Cooperative has requested 
prepayment approval of the insured mortgage to refinance with a non-
insured lender. Refinancing will provide sufficient funds for the 
Cooperative's capital improvement and repair program and allow the 
property to continue as a well-maintained source of affordable housing. 
The property will mature on December 1, 2011. The owner proposes to 
extend the property's current affordable use restriction for an 
additional 30 years, through December 1, 2041. Ninety-five percent of 
the residents have incomes below the market interest rate income level. 
If this waiver were not granted, those residents not receiving Section 
8 assistance could be adversely affected by an increase in their rent 
to cover the cost of immediate repayment of the Flexible Subsidy loan 
in full.
    Contact: Beverly J. Miller, Director, Office of Asset Management, 
Department of Housing and Urban Development, 451 Seventh Street, SW., 
Washington, DC 20410-7000, telephone (202) 708-3730, ext. 2598.

     Regulation: 24 CFR 234.1(a).
    Project/Activity: Kokanee Creek Condominiums (formerly known as 
Airport Road Townhomes), Everett, WA.
    Nature of Requirement: HUD's regulations at 24 CFR 234.1(a) 
excludes manufactured homes from being insured as individual units 
under section 234 of the National Housing Act.
    Granted by: Brian D. Montgomery, Assistant Secretary for Housing--
Federal Housing Commissioner.
    Date Granted: September 27, 2005.
    Reason Waived: The homes had received extensive engineering 
analyses including HUD approval of an alternate construction request to 
build townhouse type construction. The project was strongly supported 
by the local housing authority by providing land and other financial 
resources.
    Contact: Margaret E. Burns, Director, Single Family Program 
Development, Department of Housing and Urban

[[Page 8756]]

Development, 451 Seventh Street, SW., Washington, DC 20410-8000; 
telephone (202) 708-0614, ext. 3989.

     Regulation: 24 CFR 401.461(b)(1).
    Project/Activity: The following project requested a waiver to the 
simple interest requirement on the second mortgage to allow compound 
interest at the applicable Federal Rate. (24 CFR 401.461):

------------------------------------------------------------------------
             FHA No.                      Project              State
------------------------------------------------------------------------
034-35185.......................  Cobbs Creek NSA........  PA
------------------------------------------------------------------------

    Nature of Requirement: Section 401.461 requires that the second 
mortgages have an interest rate not more than the applicable federal 
rate. Section 401.461(b)(1) states that interest will accrue but not 
compound. The intent of simple interest instead of compound interest is 
to limit the size of the second mortgage accruals to increase the 
likelihood of long-term financial and physical integrity.
    Granted by: Brian D. Montgomery, Assistant Secretary for Housing--
Federal Housing Commissioner.
    Date Granted: July 13, 2005.
    Reason Waived: This regulatory restriction would be construed as a 
form of federal subsidy, thereby creating a loss of tax credit equity. 
This loss will adversely affect the ability to close the Restructuring 
Plan and could cause the loss or deterioration of these affordable 
housing projects. Therefore, compound interest is necessary for the 
owner to obtain Low Income Housing Tax Credits under favorable terms 
and in order to maximize the savings to the Federal Government.
    Contact: Dennis Manning, Office of Affordable Housing Preservation, 
Department of Housing and Urban Development, 451 Seventh Street, SW., 
Washington, DC 20410-8000; telephone (202) 708-0614, ext. 8381.

     Regulation: 24 CFR 401.461(b)(1).
    Project/Activity: The following project requested a waiver to the 
simple interest requirement on the second mortgage to allow compound 
interest at the applicable Federal Rate. (24 CFR 401.461):

------------------------------------------------------------------------
             FHA No.                      Project              State
------------------------------------------------------------------------
034-35213.......................  Breslyn Apartments.....  PA
------------------------------------------------------------------------

    Nature of Requirement: Section 401.461 requires that the second 
mortgages have an interest rate not more than the applicable Federal 
Rate. Section 401.461(b)(1) states that interest will accrue but not 
compound. The intent of simple interest instead of compound interest is 
to limit the size of the second mortgage accruals to increase the 
likelihood of long-term financial and physical integrity.
    Granted by: Brian D. Montgomery, Assistant Secretary for Housing--
Federal Housing Commissioner.
    Da