Notice of Regulatory Waiver Requests Granted for the Fourth Quarter of Calendar Year 2005, 27350-27377 [06-4289]

Agencies

• DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Federal Register Volume 71, Number 90 (Wednesday, May 10, 2006)]
[Notices]
[Pages 27350-27377]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 06-4289]



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Part III





Department of Housing and Urban Development





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

Federal Register / Vol. 71 , No. 90 / Wednesday, May 10, 2006 / 
Notices

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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-4997-N-04]


Notice of Regulatory Waiver Requests Granted for the Fourth 
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 October 1, 2005, and ending on December 31, 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 fourth 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 October 1, 2005, Through December 31, 
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 fourth quarter of 
calendar year 2005) before the next report is published (the first 
quarter of calendar year 2006), HUD will include any additional waivers 
granted for the fourth quarter of 2005 in the first report for 2006.
    Accordingly, information about approved waiver requests pertaining 
to HUD regulations is provided in the Appendix that follows this 
notice.

    Dated: May 1, 2006.
Keith E. Gottfried,
General Counsel.

Appendix--Listing of Waivers of Regulatory Requirements Granted by 
Offices of the Department of Housing and Urban Development October 1, 
2005, Through December 31, 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 91.105(c)(2)
    Project/Activity: The cities of Moss Point, Gulfport, and Biloxi, 
Mississippi, requested a waiver of Sec.  91.105(c)(2) of the 
Consolidated Plan regulations (24 CFR part 91), which addresses the 
public comment period on substantial amendments to consolidated plan 
action plans.
    Nature of Requirement: Section 91.105(c)(2) of HUD's Consolidated 
Plan regulations requires grantees' citizen participation plans to 
provide citizens with reasonable notice and an opportunity to comment 
on substantial amendments to consolidated plan action plans. The 
regulation requires a period of not less than 30-days to receive 
comments on substantial amendments before any amendments are 
implemented.
    Granted By: Pamela H. Patenaude, Assistant Secretary for Community 
Planning and Development.
    Date Granted: December 21, 2005.
    Reasons Waived: The cities of Moss Point, Gulfport, and Biloxi were 
severely impacted by the hurricanes and needed relief from the 30-day 
comment period to address the sudden needs

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caused by hurricane related damage. Given the unexpected nature of this 
situation, the grantees' consolidated plans did not include activities 
designed to address these needs and expenses. In order to quickly 
address these costs, these entitlement grantees sought approval to 
waive the 30-day public comment period standard in order to amend 
approved consolidated plans. HUD was unable to totally waive this 
statutory requirement but the waiver granted reduces the comment period 
to 10-days.
    Contact: Mark Walling, 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 91.105(c)(2), 24 CFR 91.115(c)(2)
    Project/Activity: The states of Alabama, Louisiana Mississippi (and 
the communities in these states) requested waiver of 24 CFR 
91.105(c)(2), 24 CFR 91.115(c)(2) of the Consolidated Plan regulations 
to reduce public comment period after amendments to consolidated plans.
    Nature of requirement: These regulatory provisions require a public 
comment period of 30 days on amendments to consolidated plan.
    Granted By: Pamela H. Patenaude, Assistant Secretary for Community 
Planning and Development.
    Date Granted: October 13, 2005.
    Reasons Waived: Reducing the public comment period after changes in 
the consolidated plan from 30 days to 3 days gives these states, 
devastated by the hurricanes, the flexibility and the ability to 
streamline their citizen participation process and expedite the 
provision of relief and disaster recovery assistance. This is a re-
issuance of the Hurricane Katrina waivers signed on September 5, 2005 
(for Entitlement communities) and September 21, 2005 (for States), 
making the provision applicable to Hurricane Rita.
    Contact: Steve Johnson, Director, State and Small Cities Division, 
Office of Block Grant Assistance, Community Planning and Development, 
Department of Housing and Urban Development, 451 Seventh Street, SW., 
Room 7184, Washington, DC 20410-7000, telephone (202) 708-1322.
 Regulation: 24 CFR 91.225(a)(6), 24 CFR 570.903, and a 
statutory suspension of 42 U.S.C. 12706
    Project/Activity: The city of Gulfport, Mississippi, requested a 
waiver of 24 CFR 91.225(a)(6), 24 CFR 570.903, and a statutory 
suspension of 42 U.S.C. 12706, regarding jurisdictions that must 
certify that their housing activities are consistent with their 
strategic plans.
    Nature of Requirement: HUD's Consolidated Plan regulation at 24 CFR 
91225(a)(6) and its CDBG regulation at 24 CFR 570.903 require 
jurisdictions to submit a certification that its housing activities are 
consistent with its strategic plan.
    Granted By: Pamela H. Patenaude, Assistant Secretary for Community 
Planning and Development.
    Date Granted: December 21, 2005.
    Reasons Waived: Since submission of its last five-year consolidated 
plan, the city of Gulfport's housing and other community development 
needs suddenly changed due to the impact of Hurricane Katrina. It was 
determined unreasonable to hold the city to the previously identified 
needs and the waivers were granted concurrently with the statutory 
suspension that allows the city of Gulfport to respond to emergency 
needs without assuring consistency with its strategic plan.
    Contact: Mark Walling, 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 92.300(a)(1)
    Project/Activity: The State of Wisconsin's compliance with HOME 
program requirements.
    Nature of Requirements: Section 92.300(a)(1) of the HOME program 
regulations (24 CFR part 92) permits PJs to award community housing 
development organizations (CHDOs) to set-aside funds to limited 
partnerships that include a qualified CHDO as the managing general 
partner.
    Granted By: Pamela H. Patenaude, Assistant Secretary for Community 
Planning and Development.
    Date Granted: November 9, 2005.
    Reasons Waived: The State of Wisconsin sought to permit its CHDOs 
to use the limited liability corporation (LLC) form of ownership rather 
than limited partnerships, because it is less expensive to form an LLC. 
The waiver was granted on the basis of the state's assurances that 
these CHDOs (or a wholly owned subsidy of these CHDOs) would be the 
sole managing members of the LLCs, and therefore in compliance with the 
requirement that CHDOs have effective management control of projects 
for which they receive CHDO set-aside funds.
    Contact: Virginia Sardone, 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 92.300(a)(1)
    Project/Activity: The city of Lake Charles, Louisiana, compliance 
with the HOME program requirements.
    Nature of Requirements: Section 92.300(a)(1) of the HOME program 
regulations (24 CFR part 92) requires that a PJ reserve not less than 
15 percent of each annual allocation for housing owned, sponsored or 
developed by CHDOs within 24 months after HUD notifies the PJ that HUD 
has executed the jurisdiction's HOME Investment Partnership Agreement.
    Granted By: Pamela H. Patenaude, Assistant Secretary for Community 
Planning and Development.
    Date Granted: December 21, 2005.
    Reasons Waived: Although the city had met its 24-month CHDO 
reservation requirement, the approved waiver allows the FY 2001-2004 
and FY 2007 CHDO reservation requirements to be met as well as ensure 
that the needed HOME funds are not deobligated. Many of the city's 
CHDOs are no longer operational due to Hurricane Katrina and the city 
needed the flexibility to address the rebuilding of its devastated 
areas as well as adequate time to rebuild its CHDO capacity.
    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 570.208(a)(3)
    Project/Activity: The city of Minneapolis, Minnesota, requested a 
waiver of 24 CFR 570.208(a)(3) to allow an owner-occupied multiple 
building project, to be considered a single structure as is allowed for 
multiple rental buildings for the purpose of meeting the housing 
national objective for low- and moderate-income persons.
    Nature of Requirements: The national objective regulation of the 
Community Development Block Grant (CDBG) program at 24 CFR 570.208 
(a)(3) generally requires that at least 51 percent of the units in 
multi-unit residential structures and 100 percent of single-unit 
residential structures be occupied by low- and moderate-income 
households.
    Granted By: Pamela H. Patenaude, Assistant Secretary for Community 
Planning and Development.
    Date Granted: December 21, 2005.
    Reasons Waived: The granting of the waiver allowed six separate 
owner-occupied residential buildings to be considered a single 
structure for

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purposes of determining compliance with the national objectives. 
Completion of the project allows low- and moderate-income households to 
occupy at least 33 of the 64 units.
    Contact: Otis Collins, 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 570.207(b)(4)
    Project/Activity: San Diego County requested a waiver on behalf of 
the city of Poway, California, regarding income payments to expand the 
emergency grant payment period.
    Nature of Requirements: Section 570.207(b)(4) permits emergency 
grant payments for a period of up to three consecutive months and these 
payments must be made to the provider of such items or services on 
behalf of individuals or families.
    Granted By: Pamela H. Patenaude, Assistant Secretary for Community 
Planning and Development.
    Date Granted: November 21, 2005.
    Reasons Waived: Due to a substantial number of Hurricane Katrina 
evacuees having relocated to the city of Poway, this waiver was 
granted. The city of Poway is a participating community in San Diego 
County's CDBG Urban County program. The city requested that the county 
approve reallocation of $106,167 in CDBG funds to assist a minimum of 
five families for up to a year with emergency grant payments.
    Contact: Michael Kelly, 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 570.207(b)(1)
    Project/Activity: The city of Moss Point, Mississippi, requested a 
waiver of 24 CFR 570.207(b)(1) regarding the purchase of equipment with 
CDBG funds.
    Nature of Requirement: The CDBG regulation at Sec.  570.207(b)(1) 
generally prohibits the purchase of equipment with CDBG funds.
    Granted By: Pamela H. Patenaude, Assistant Secretary for Community 
Planning and Development.
    Date Granted: December 21, 2005.
    Reasons Waived: The city of Moss Point, like many communities 
impacted by Hurricane Katrina, did not have a steady source of 
electricity or other means of power, long after the hurricane. Having 
generators as a back up to power failures enabled sanitary and water 
systems to continue to operate and function, reducing the health risk 
to the community. A waiver of 24 CFR 570.207(b)(1)(iii) permitted the 
purchase of equipment such as emergency generators for municipal water 
and sewer facilities to be used for public purposes.
    Contact: Mark Walling, 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 570.207(b)(3)
    Project/Activity: The cities of Moss Point and Gulfport, 
Mississippi, requested a waiver of 24 CFR 570.207(b)(3), concurrent to 
a statutory suspension of 105(a) of the Housing and Community 
Development Act of 1974, regarding new housing construction.
    Nature of Requirement: Under Sec.  570.207(b)(3), CDBG funds may 
not be used for the construction of new permanent residential 
structures or for any program to subsidize or assist new construction 
directly by grantees.
    Granted By: Pamela H. Patenaude, Assistant Secretary for Community 
Planning and Development.
    Date Granted: December 21, 2005.
    Reasons Waived: Given the widespread destruction of housing units, 
it was determined in the community's best interest to be able to use 
all potential funding sources to provide new housing units for its 
residents.
    Contact: Mark Walling, 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 570.208(a)(4)(ii), 24 CFR 
570.208(a)(4)(iv)(A)(1) and (B) and (a)(4)(v)
    Project/Activity: The city of Gulfport, Mississippi, requested a 
waiver of 24 CFR 570.208(a)(4)(ii), and 24 CFR 570.208(a)(4)(iv)(A)(1) 
and (B) and (a)(4)(v), regarding documentation requirements for job 
creation and retention activities.
    Nature of Requirement: The CDBG regulations at 24 CFR 
570.208(a)(4)(i) and 24 CFR 570.208(a)(4)(ii) set forth the 
requirements for demonstrating compliance of benefit to low- and 
moderate-income persons pursuant to Housing and Community Development 
Act of 1974. The regulations provide that for job retention, at the 
time of CDBG assistance, at least 51 percent of the jobs are either: 
(1) Known to be held by low- and moderate-income persons; or (2) can be 
expected to turnover within the following two years and be filled by, 
or made available to, low-or moderate-income persons; and (3) removes 
the requirement that ``* * * the recipient must document that the jobs 
would actually be lost without the CDBG assistance * * *'' The 
provisions of 24 CFR 570.208(a)(4)(iv)(A)(1) and (B) and (a)(4)(v) 
include criteria that presume low-or moderate-income benefit based on 
the location of the individual beneficiaries or assisted businesses. 
For job creation and/or retention activities, in addition to the 
presumption already allowed, a city may presume any census tract as 
meeting the criteria of paragraph 24 CFR 570.208(a)(4)(v), if at least 
51 percent of the residents of the tract are of low- and moderate-
income, according to either the latest low/mod income summary data 
(LMISD) or a more recent survey.
    Granted By: Pamela H. Patenaude, Assistant Secretary for Community 
Planning and Development.
    Date Granted: December 21, 2005.
    Reasons Waived: The impact of the hurricanes on the city of 
Gulfport's economy was so severe that the city may presume that jobs 
would actually be lost from businesses that have been destroyed or 
whose continued operation is endangered. The Housing and Community 
Development Act of 1974, describes situations in which jobs may be 
presumed to principally benefit low- and moderate-income persons. The 
degree of socioeconomic and physical distress that now exists in 
Gulfport is functionally equivalent to the degree of distress 
recognized by the statutory criteria allowing such presumptions.
    Contact: Mark Walling, 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 570.483(b)(4)(ii), 24 CFR 
570.483(b)(4)(A)(1) and 24 CFR 570.483(b)(4)(v) and 24 CFR 
570.483(b)(1)(v)(D) and 24 CFR 570.483(e)(5)(i)
    Project/Activity: The states of Louisiana and Mississippi requested 
waiver of 24 CFR 570.483(b)(4)(ii) of the job retention requirement.
    Nature of Requirement: These regulatory provisions require units of 
general local government, for job retention activities, to document 
that either or both of the following conditions apply to at least 51 
percent of the jobs at the time CDBG assistance is provided: (1) the 
jobs are known to be held by low-or moderate-income persons, or (2) the 
jobs can be expected to turn over within two years and be

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filled by or made available to low or moderate income persons upon 
turnover.
    Granted By: Pamela H. Patenaude, Assistant Secretary for Community 
Planning and Development.
    Date Granted: November 9, 2005.
    Reasons Waived: HUD recognized that the impact of the hurricane on 
the economies of the states of Louisiana and Mississippi (and on 
individual businesses) was so severe that, absent substantial evidence 
to the contrary, the states may presume that jobs would actually be 
lost from businesses that have been put out of operation or whose 
continued operation is endangered. The Housing and Community 
Development Act of 1974 describes certain situations in which jobs may 
be presumed to principally benefit low- and moderate-income persons. 
The degree of socioeconomic and physical distress that continues to 
exist in many communities, devastated by the hurricanes, is 
functionally equivalent to the degree of distress recognized by the 
statutory criteria allowing such presumptions. Similarly, HUD 
recognized that the degree of socioeconomic and physical distress that 
continues to exist in many communities, devastated by the hurricanes, 
is functionally equivalent to that envisioned by HUD when the community 
revitalization strategy concept was added to the regulations.
    Contact: Steve Johnson, Director, State and Small Cities Division, 
Office of Block Grant Assistance, Community Planning and Development, 
Department of Housing and Urban Development, 451 Seventh Street, SW., 
Room 7184, Washington, DC 20410-7000, telephone (202) 708-1322.
 Regulation: 24 CFR 570.484, 24 CFR 91.325(b)(4)(ii)
    Project/Activity: The state of Louisiana requested a change to the 
timeframe needed to demonstrate compliance with 24 CFR 570.484 of the 
CDBG regulations, and 24 CFR 91.325(b)(4)(ii) of the Consolidated Plan 
regulations, the requirement that 70 percent of funds must be expended 
for activities that benefit low- and moderate-income persons.
    Nature of Requirement: These regulatory provisions require 
certification by a state that not less than 70 percent of CDBG will be 
used for activities that benefit low- and moderate-income persons.
    Granted By: Pamela H. Patenaude, Assistant Secretary for Community 
Planning and Development.
    Date Granted: October 28, 2005.
    Reason Waived: Allowing the state of Louisiana to change the 
timeframe to demonstrate compliance allowed the state to use a higher 
percentage of funds for activities meeting the urgent need or slum/
blight national objective.
    Contact: Steve Johnson, Director, State and Small Cities Division, 
Office of Block Grant Assistance, Community Planning and Development, 
Department of Housing and Urban Development, 451 Seventh Street, SW., 
Room 7184, Washington, DC 20410-7000, telephone (202) 708-1322.
 Regulation: 24 CFR 570.486(a)(5), 24 CFR 91.115(b)(3), 24 CFR 
91.115(b)(4)
    Project/Activity: The state of Louisiana requested waiver of 24 CFR 
570.486(a)(5), 24 CFR 91.115(b)(3), and 24 CFR 91.115(b)(4) relating to 
the length of the public comment period, and the requirement for 
hearings (including an addition public hearing for its 2006 action 
plan) prior to the submission of an application to the State. The state 
of Mississippi requested waiver of 24 CFR 570.486(a)(5), and 24 CFR 
91.115(b)(4) regarding the length of the public comment period, and the 
requirement for hearings prior to the submission of an application to 
the state.
    Nature of Requirement: The regulatory provisions require full 
citizen participation in the proposed use of CDBG funds, and a 30-day 
public comment period to allow for changes to the action plan.
    Granted By: Pamela H. Patenaude, Assistant Secretary for Community 
Planning and Development.
    Date Granted: October 28, 2005, for the state of Louisiana and 
November 9, 2005, for the state of Mississippi.
    Reasons Waived: Reducing the public comment period from 30 days to 
3 days gave these states, devastated by hurricanes, the flexibility and 
the ability to streamline their citizen participation process as well 
as that of local governments; and permits one public hearing, which 
still allows for adequate public input.
    Contact: Steve Johnson, Director, State and Small Cities Division, 
Office of Block Grant Assistance, Community Planning and Development, 
Department of Housing and Urban Development, 451 Seventh Street, SW., 
Room 7184, Washington, DC 20410-7000, telephone (202) 708-1322.

 Regulations: 24 CFR 582.105(e)
    Project/Activity: The City of Fort Worth Housing Authority, TX, 
requests waiver of 24 CFR 582.105(e) of the homeless Shelter Plus Care 
requirements.
    Nature of Requirements: Section 582.105(e) of the Shelter Plus Care 
regulations states that up to 8 percent of the grant amount may be used 
to pay the administrative costs of administering housing assistance. 
Eligible administrative costs include processing rental payments to 
landlords, examining participant income and family composition, 
providing housing information and assistance, inspecting units for 
compliance with housing quality standards, and receiving new 
participants into the program.
    Granted By: Pamela H. Patenaude, Assistant Secretary for Community 
Planning and Development.
    Date Granted: December 1, 2005
    Reasons Waived: The Fort Worth Housing Authority extended the term 
the grant to serve homeless households for close to an additional year. 
The Shelter Plus Care regulations anticipated the 8 percent 
administrative fee would be spent over a five-year period. In this 
case, the five-year period has been completed but the ``no-cost'' 
extension did not provide for any additional administrative costs. The 
waiver permits an increase in the 8 percent cap to 9.6 percent to allow 
them to continue to administer the grant for the entire projected term 
of the extension.
    Contact: Mark Johnston, Office of Community Planning and 
Development, Department of Housing and Urban Development, 451 Seventh 
Street, SW., Washington, DC 20410-7000, telephone (202) 708-4300.
 Statutes and Regulations: 42 U.S.C. 5304(d)(2), 42 U.S.C. 
5304(d)(3), and 24 CFR 42.375, 24 CFR 42.350
    Project/Activity: The states of Louisiana and Mississippi requested 
suspension of 42 U.S.C. 5304(d)(2), 42 U.S.C. 5304(d)(3), and waiver 24 
CFR 42.375, 24 CFR 42.350 of the one-for-one replacement requirements 
for low- and moderate-income housing units that are demolished or 
converted to another use.
    Nature of Requirement: These statutory provisions and corresponding 
regulatory provisions require that one-for-one replacement requirements 
provisions be adhered for the low- and moderate-income housing units 
that are demolished or converted to another use.
    Granted By: Pamela H. Patenaude, Assistant Secretary for Community 
Planning and Development.
    Date Granted: October 28, 2005, for the state of Louisiana and 
November 9, 2005, for the state of Mississippi.
    Reasons Suspended and Waived: These suspensions and waivers were 
determined necessary to relieve the state

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and local governments of requirements that impede disaster recovery, 
discourage local governments from acquiring, demolishing or 
rehabilitating disaster-damaged housing and thereby inhibiting recovery 
efforts designed to address health and safety problems. The waiver 
still assures uniform and equitable treatment for all such tenants.
    Contact: Steve Johnson, Director, State and Small Cities Division, 
Office of Block Grant Assistance, Community Planning and Development, 
Department of Housing and Urban Development, 451 Seventh Street, SW., 
Room 7184, Washington, DC 20410-7000, telephone (202) 708-1322.
 Statutes and Regulations: 42 U.S.C. 5304(j) and 24 CFR 
570.489(e)(3)
    Project/Activity: The states of Louisiana and Mississippi requested 
suspension of 42 U.S.C. 5304(j) and waiver of 24 CFR 570.489(e)(3) to 
permit retaining program income at the state level.
    Nature of Requirement: This statutory provision and corresponding 
regulatory provision require units of general local government to 
return all program income not under contract to the state, allowing the 
state to manage the allocation of resources to areas of greatest needs.
    Granted By: Pamela H. Patenaude, Assistant Secretary for Community 
Planning and Development.
    Date Granted: October 28, 2005, for the state of Louisiana and 
November 9, 2005, for the state of Mississippi.
    Reasons Waived: Requiring units of general local governments to 
return all program income will allow these states, devastated by 
hurricanes, to manage the allocation of resources to the greatest 
needs. The waiver only applies to funding not under contract to units 
of general local government.
    Contact: Steve Johnson, Director, State and Small Cities Division, 
Office of Block Grant Assistance, Community Planning and Development, 
U.S. Department of Housing and Urban Development, 451 Seventh Street, 
SW., Room 7184, Washington, DC 20410-7000, telephone (202) 708-1322.
    Contact: Steve Johnson, Director, State and Small Cities Division, 
Office of Block Grant Assistance, Community Planning and Development, 
Department of Housing and Urban Development, 451 Seventh Street, SW., 
Room 7184, Washington, DC 20410-7000, telephone (202) 708-1322.

 Statute: 42 U.S.C. 5305(a)
    Project/Activity: The states of Louisiana and Mississippi requested 
suspension of 42 U.S.C. 5305(a) to permit construction of new housing.
    Nature of Requirement: This statutory provision restricts the use 
of State CDBG for construction of new housing pursuant to section 
105(a) of the Housing and Community Development Act of 1974.
    Granted By: Pamela H. Patenaude, Assistant Secretary for Community 
Planning and Development.
    Date Granted: October 28, 2005, for the state of Louisiana, and 
November 9, 2005, for the state of Mississippi.
    Reason Suspended: Given the widespread destruction of housing units 
by the hurricanes, it was determined in the best interest of the states 
to allow them to use all potential funding sources to provide housing 
units for its residents.
    Contact: Steve Johnson, Director, State and Small Cities Division, 
Office of Block Grant Assistance, Community Planning and Development, 
Department of Housing and Urban Development, 451 Seventh Street, SW., 
Room 7184, Washington, DC 20410-7000, telephone (202) 708-1322.

 Statute: 42 U.S.C. 5305(a)
    Project/Activity: The state of Mississippi requested suspension of 
42 U.S.C. 5305(a) to permit the purchase of equipment.
    Nature of Requirement: This statutory provision restricts the use 
of State CDBG funds for the purchase of new equipment pursuant to 
section 105(a) of the Housing and Community Development Act of 1974.
    Granted By: Pamela H. Patenaude, Assistant Secretary for Community 
Planning and Development.
    Date Granted: November 9, 2005.
    Reasons Waived: Many communities impacted by Katrina, well after 
the hurricanes, did not have a steady source of electricity or other 
means of power. Using State CDBG funds for the purchase of generators 
to use, as back up to power failures enabled sanitary and water systems 
to continue to operate and function reducing the health risk to the 
community.
    Contact: Steve Johnson, Director, State and Small Cities Division, 
Office of Block Grant Assistance, Community Planning and Development, 
Department of Housing and Urban Development, 451 Seventh Street, SW., 
Room 7184, Washington, DC 20410-7000, telephone (202) 708-1322.

 Statute: 42 U.S.C. 5305(a)(24)(D) (formerly 42 U.S.C. 
5305(a)(25)(D))
    Project/Activity: The state of Louisiana requested suspension of 42 
U.S.C. 5305(a)(24)(D), which limits downpayment assistance for direct 
homeownership assistance to low- and moderate-income homebuyers.
    Nature of Requirement: This statutory provision places a 50 percent 
limit to down payment assistance for direct homeownership assistance to 
low- and moderate-income homebuyers.
    Granted By: Pamela H. Patenaude, Assistant Secretary for Community 
Planning and Development.
    Date Granted: October 28, 2005.
    Reason Suspended: Based on the large number of persons anticipated 
to need homeownership assistance, it was determined in the best 
interest of the state to suspend the statute to provide for higher 
levels of down payment assistance as needed.
    Contact: Steve Johnson, Director, State and Small Cities Division, 
Office of Block Grant Assistance, Community Planning and Development, 
Department of Housing and Urban Development, 451 Seventh Street, SW., 
Room 7184, Washington, DC 20410-7000, Telephone (202) 708-1322.

 Statute: 42 U.S.C. 5305(a)(8)
    Project/Activity: The states of Alabama, Mississippi, and Louisiana 
requested suspension of 42 U.S.C. 5305(a)(8) of the cap on public 
services expenditures.
    Nature of requirement: This statutory provision places a 15 percent 
cap on public services expenditure.
    Granted By: Pamela H. Patenaude, Assistant Secretary for Community 
Planning and Development.
    Date Granted: October 13, 2005.
    Reasons Waived: The damage attributable to Hurricane Rita was so 
great and widespread that it caused an exodus from the declared 
disaster areas. Addressing the damage caused by the federally declared 
disaster involved addressing the needs of the population displaced by 
the disaster. Many of the needs are public services expenses and 
activities eligible under the CDBG program. This is a re-issuance of 
the Hurricane Katrina waiver signed on September 5, 2005, making the 
provision applicable to Hurricane Rita.
    Contact: Steve Johnson, Director, State and Small Cities Division, 
Office of Block Grant Assistance, Community Planning and Development, 
Department of Housing and Urban Development, 451 Seventh Street, SW, 
Room 7184, Washington, DC 20410-7000, telephone (202) 708-1322.

[[Page 27355]]

 Statutes and Regulations: 42 U.S.C. 5306(d)(3)(A), 42 U.S.C. 
5306(d)(5), 42 U.S.C. 5306(d)(6); 24 CFR 570.489(a)(1)(i) and 24 CFR 
570.489(a)(1)(iii)
    Project/Activity: The states of Louisiana and Mississippi requested 
suspension of 42 U.S.C. 5306(d)(3)(A), 42 U.S.C. 5306(d)(5), 42 U.S.C. 
5306(d)(6), and waiver of 24 CFR 570.489(a)(1)(i), 24 CFR 
570.489(a)(1)(iii) of the matching funds used for State Administration 
and the limit for combined State Administrative expenses and technical 
assistance.
    Nature of Requirement: These statutory provisions and corresponding 
regulatory provisions require that a state must match the amount of 
funds used for State Administration exceeding $100,000 and adhere to 
the three percent limit for State Administrative expenses and technical 
assistance combined. There is a 20 percent overall cap for 
administrative and technical assistance funds.
    Granted By: Pamela H. Patenaude, Assistant Secretary for Community 
Planning and Development.
    Date Granted: October 28, 2005, for the state of Louisiana and 
November 9, 2005, for the state of Mississippi.
    Reasons Suspended and Waived: By waiving the State Administration 
and Technical Assistance costs cap and allowing the use of matched 
funds for other purposes, HUD assisted the states of Louisiana and 
Mississippi in administering their program and using funds as best 
needed in affected communities. The 20 percent overall administrative 
cap was not waived.
    Contact: Steve Johnson, Director, State and Small Cities Division, 
Office of Block Grant Assistance, Community Planning and Development, 
Department of Housing and Urban Development, 451 Seventh Street, SW., 
Room 7184, Washington, DC 20410-7000, telephone (202) 708-1322.
 Statues and Regulations: 42 U.S.C. 12705(a)(2), 42 U.S.C. 
5304(m), 42 U.S.C. 5306(d)(2)(C)(iii); and 24 CFR 91.10, 24 CFR 
91.320(c), 24 CFR 91.320(g)(1), 24 CFR 91.325(b)(2)(iv), 24 CFR 
91.325(b)(3), 24 CFR 91.325(b)(2)(v)
    Project/Activity: The states of Louisiana and Mississippi requested 
suspension of 42 U.S.C. 12705(a)(2), 42 U.S.C. 5304(m), 42 U.S.C. 
5306(2)(C)(iii), and waiver of 24 CFR 91.10, 24 CFR 91.320(c), 24 CFR 
91.320(g)(1), 24 CFR 91.325(b)(2)(iv), 24 CFR 91.325(c)(3), 24 CFR 
91.325(b)(2)(v) of the action plan requirements.
    Nature of Requirement: These statutory provisions and corresponding 
regulatory provisions require a state to submit annual action plan and 
adhere to citizen participation requirements.
    Granted By: Pamela H. Patenaude, Assistant Secretary for Community 
Planning and Development.
    Date Granted: October 28, 2005, for the state of Louisiana, and 
November 9, 2005, for the state of Mississippi.
    Reasons Suspended and Waived: These suspensions and waivers allowed 
the states of Louisiana and Mississippi to streamline their 2006 
program year action plans and amendments to 2005 action plans, and to 
expedite the distribution of funds to meet communities' emergency and 
long-term recovery needs.
    Contact: Steve Johnson, Director, State and Small Cities Division, 
Office of Block Grant Assistance, Community Planning and Development, 
Department of Housing and Urban Development, 451 Seventh Street, SW., 
Room 7184, Washington, DC 20410-7000, telephone (202) 708-1322.
 Statutes and Regulations: 42 U.S.C. 12706 and 24 CFR 
91.325(a)(6)
    Project/Activity: The states of Louisiana and Mississippi requested 
suspension of 42 U.S.C. 12706 and waiver of 24 CFR 91.325(a)(6), 
concerning the strategic plan.
    Nature of Requirement: The provisions require that housing 
activities be consistent with the strategic plan.
    Granted By: Pamela H. Patenaude, Assistant Secretary for Community 
Planning and Development.
    Date Granted: October 28, 2005, for the State of Louisiana and 
November 9, 2005, for the State of Mississippi.
    Reasons Waived: Since the housing and other community development 
needs of the states suddenly changed due to the aftermath of Hurricanes 
Katrina and Rita, it was determined unreasonable to expect the states 
to thoroughly reinventory all of their needs and to finalize new 
strategies to address those needs. The states needed flexibility to 
respond to needs as soon as possible.
    Contact: Steve Johnson, Director, State and Small Cities Division, 
Office of Block Grant Assistance, Community Planning and Development, 
Department of Housing and Urban Development, 451 Seventh Street, SW., 
Room 7184, Washington, DC 20410-7000, telephone (202) 708-1322.

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 200.217(a)
    Project/Activity: FHA Project 093-13003 North Valley Hospital, 
Whitefish, Montana.
    Nature of Requirement: Electronic submission of previous 
participation certificate (HUD-2530)
    Granted By: Brian D. Montgomery, Assistant Secretary for Housing--
Federal Housing Commissioner.
    Date Granted: December 9, 2005.
    Reason Waived: The lender was not set up timely in the new 
electronic system. If electronic filing had been required, there would 
have been a delay of several weeks before initial closing could occur. 
That delay could have imposed a financial hardship on the hospital by 
delaying the availability of funding to continue construction and 
leaving the hospital low on its operating cash on hand. For these 
reasons, a paper filing was permitted.
    Contact: John Whitehead, Director, Program Support Division, 
Department of Housing and Urban Development, 451 Seventh Street, SW., 
Washington, DC 20410-8000; telephone (202) 708-0614.
 Regulation: 24 CFR 203.37a (b)(2)
    Project/Activity: The Federal Emergency Management Agency (FEMA) 
declared individual assistance disaster areas affected by Hurricanes 
Katrina, Rita, and Wilma.
    Nature of Requirement: Section 203.37a (b)(2) prohibits properties 
acquired and subsequently resold by the seller within 90 days of the 
acquisition from being eligible for FHA mortgage insurance. The 
restriction was established as one of several measures to avoid price-
inflating practices known as property flipping.
    Granted By: Brian D. Montgomery, Assistant Secretary for Housing--
Federal Housing Commissioner
    Date Granted: November 21, 2005.
    Reason Waived: Hurricanes Katrina, Rita and Wilma severely damaged 
or destroyed a significant number of dwellings
    Contact: Margaret E. Burns, Director, Office of Single Family 
Program Development, Department of Housing and Urban Development, 451 
Seventh Street, SW., Washington, DC 20410-8000; telephone (202) 708-
2121.
 Regulation: 24 CFR 203.371(b) and 203.402(f)(2)
    Project/Activity: For areas declared major disasters as a result of 
Hurricanes Katrina, Rita, and Wilma, there was a

[[Page 27356]]

request for waiver of regulation that states that mortgagors must be 
able to immediately resume full mortgage payments to receive a Partial 
Claim loss mitigation initiative.
    Nature of Requirement: Waivers of the requirements of 24 CFR 
203.371(b) allowed victims of Hurricanes Katrina, Rita and Wilma to 
receive a Mortgage Assistance Initiative (Partial Claim) immediately 
and did not require the mortgagor to begin making mortgage payments 
immediately. Those mortgagors that would be deemed eligible had to have 
had been in an area designated by FEMA as eligible for individual 
assistance and must have a reasonable basis to show that within 12 
months they would have recovered financially and then be able to 
support full mortgage payments. Waiver of 24 CFR 203.402(g) provides 
that for mortgages insured on or after November 19, 1992, insurance 
benefits will include reimbursement for payments made by a mortgage for 
preserving and protecting a property.
    Granted By: Brian D. Montgomery, Assistant Secretary for Housing--
Federal Housing Commissioner.
    Date Granted: September 22, 2005.
    Reason Waived: The regulatory sections were waived to provide loss 
mitigation assistance to mortgagors affected by Hurricanes Katrina, 
Rita and Wilma.
    Contact: Leslie Bromer, Asset Management and Disposition, 
Department of Housing and Urban Development, 451 Seventh Street, SW., 
Washington, DC 20410-8000; telephone (202) 708-1672.
 Regulation: 24 CFR 207.72
    Project/Activity: FHA Project 012-10036 St. Luke's-Roosevelt 
Hospital Center, New York, New York.
    Nature of Requirement: Section 207.72 provides that insured project 
must comply with all applicable building and other governmental codes, 
ordinances, regulations, and requirements. This requirement includes 
having the appropriate Certificates of Occupancy.
    Granted By: Brian D. Montgomery, Assistant Secretary for Housing--
Federal Housing Commissioner.
    Date Granted: October 20, 2005.
    Reason Waived: The regulation was waived in order to allow section 
223(a)(7) refinancing to proceed. The refinancing in the amount of 
$319,555,000 provides the hospital with approximately $10 million per 
year in additional liquidity in order to avoid a default. It is 
extremely difficult to keep Certificates of Occupancy current given the 
workload of the New York City Building Department. The buildings in 
question have been in use for some time and the items that prevent 
obtainment of Certificates of Occupancy do not threaten patient safety. 
The hospital submitted an action plan to obtain all required 
Certificates, established monthly monitoring by its Board of Trustees 
to ensure this happens, engaged consultants to assist in obtaining the 
Certificates, and has escrowed funds to cover permit fees. HUD will 
monitor progress.
    Contact: John Whitehead, Director, Program Support Division, 
Department of Housing and Urban Development, 451 Seventh Street, SW., 
Washington, DC 20410-8000; telephone (202) 708-0614.
 Regulation: 24 CFR 236.725
    Project/Activity: Bronx, New York (Stevenson Commons--Project 
Number 012-148NI and 012-11041). The New York Multifamily Hub requested 
waiver of the rent supplement contract to continue project-based Rental 
Assistance Payments for this project.
    Nature of Requirement: Section 236.725 requires that the rental 
assistance contract shall be limited to the term of the mortgage or 40 
years from the date of the first payment made under the contract, 
whichever is the lesser.
    Granted By: Brian D. Montgomery, Assistant Secretary for Housing--
Federal Housing Commissioner.
    Date Granted: December 5, 2005.
    Reason Waived: The waiver was granted for continuation of rental 
assistance payments (RAP) after the payoff of the original non-insured 
Section 236 mortgage under a Section 236(e)(2) decoupling transaction. 
This waiver is predicated on the fact that the decoupling proposal did 
not request an increase in the Section 236 units, hence the RAP subsidy 
is not being increased based on this transaction. Further RAP increases 
shall be based on budget driven project operating cost increases that 
will not include any new debt service costs attributable to the 
Decoupling transaction. Further, this waiver is predicated on the 
project owner entering into a Decoupling Use Restriction Agreement 
prescribed in the Section 236(e)(2) Decoupling program. There was good 
cause to waive the requirement because the project will be maintained 
as an affordable housing resource to the maturity date of the non-
insured Section 236 mortgage plus an additional 5 years, through the 
execution and recording of a Decoupling Use Agreement.
    Contact: Beverly J. Miller, Director, Office of Asset Management, 
U.S. Department of Housing and Urban Development, 451 Seventh Street, 
SW., Room 6160, Washington, DC 20410-7000; telephone (202) 708-3730.
 Regulation: 24 CFR 236.725
    Project/Activity: Jersey City, New York (Unico Towers Apartments--
Project Number 031-046NI). The Philadelphia Multifamily Hub requested 
approval to permit the continuation of Rental Assistance Payments (RAP) 
after the payoff of the non-insured Section 236 mortgage under a 
Section 8 Decoupling transaction.
    Nature of the Requirement: HUD regulations at 24 CFR part 236 
states that the rental assistance contract shall be limited to the term 
of the mortgage or 40 years from the date of the first payment made 
under the contract, whichever is lesser.
    Granted by: Brian D. Montgomery, Assistant Secretary for Housing--
Federal Housing Commissioner.
    Date Granted: December 5, 2005.
    Reason Waived: The waiver of the regulation was approved predicated 
on the project entering into a recorded use agreement that will 
restrict it to be operated under the Section 236 program requirements 
until the maturity date of the original non-insured Section 236 
mortgage plus an additional five years. The project would generally 
terminate the rental assistance program (RAP) subsidy upon the 
prepayment of the non-insured Section 236 mortgage. Unico Towers is a 
202-unit property that receives 190 units of RAP subsidy. The 
decoupling proposal did not request an increase in the Section 236 
units; therefore, the RAP subsidy is not being increased. For these 
reasons, there is good cause to waive this regulation.
    Contact: Beverly J. Miller, Director, Office of Asset Management, 
U.S. Department of Housing and Urban Development, 451 Seventh Street, 
SW., Room 6160, Washington, DC 20410; telephone: (202) 708-3730.
 Regulation: 24 CFR 236.725
    Project/Activity: Jersey City, New York (Battery View Apartments--
Project Number 031-060NI). The Philadelphia Multifamily Hub has 
requested approval of a waiver of this regulation to permit the 
continuation of the rental assistance payments (RAP) after the payoff 
of the non-insured Section 236 mortgage under a Section 236(e)(2) 
Decoupling transaction.
    Nature of the Requirement: HUD regulations at 24 CFR Part 236 
states that the rental assistance contract shall be limited to the term 
of the mortgage or 40 years from the date of the first

[[Page 27357]]

payment made under the contract, whichever is lesser.
    Granted by: Frank L. Davis, General Deputy Assistant Secretary for 
Housing-Deputy Federal Housing Commissioner.
    Date Granted: December 5, 2006.
    Reason Waived: The General Deputy Assistant Secretary for Housing 
approved waiver of the regulation predicated on the project entering 
into a recorded Use Agreement that will restrict it to be operated 
under the Section 236 program requirements until the maturity date of 
the original non-insured Section 236 mortgage plus an additional 5 
years. The project would generally terminate the RAP subsidy upon the 
prepayment of the non-insured Section 236 mortgage. Battery View 
Apartments is a 238-unit property that receives 224 units of RAP 
subsidy. The Decoupling proposal did not request an increase in the 
Section 236 units; therefore, the RAP subsidy is not being increased. 
For these reasons, there is good cause to waive this regulation.
    Contact: Beverly J. Miller, Director, Office of Asset Management, 
U.S. Department of Housing and Urban Development, 451 Seventh Street, 
SW., Room 6160, Washington, DC 20410; telephone (202) 708-3730.
 Regulation: 24 CFR 291.210
    Project/Activity: Request for Authorization for Direct Sale of 7429 
Hillsdale, St. Louis, Missouri. The request was received from the 
Denver Homeownership Center. In June 2004, HUD announced the Homewise 
Initiative (``Homewise'') as a partnership between the Department and 
the National Housing Endowment Corporation. The objective was to 
demonstrate that the public sector and the private sector could work 
together to revitalize neighborhoods. In March of 2005, HUD and the 
National Housing Endowment mutually agreed to terminate the Homewise 
agreement and HUD shifted its focus to the creation of local 
partnerships in each of the 10 cities to accomplish the original 
objectives.
    Nature of Requirement: Section 291.210 permits direct sales at deep 
discounts off the list price of properties sold without mortgage 
insurance to governmental entities and private nonprofit organizations 
for use in HUD and local housing or homeless programs.
    Granted By: Brian D. Montgomery, Assistant Secretary for Housing--
Federal Housing Commissioner
    Date Granted: December 22, 2005.
    Reason Waived: In order to close out ``Homewise'' in St. Louis, the 
St Louis County, Office of Community Development submitted a request to 
purchase the subject property from HUD for $1. The County agreed to 
rehabilitate the property and pay all renovation expenses, including 
those already expended for lead-based paint removal. The County also 
agreed to sell the completed home at 50 percent of value to a qualified 
low- and moderate-income Homewise applicant. The direct sale of this 
property was determined in the best interest of HUD and resulted in the 
immediate disposition of the property.
    Contact: Wanda Sampedro, Director of the Asset Management and 
Disposition Division, Department of Housing and Urban Development, 451 
Seventh Street, SW., Washington, DC 20410-8000; telephone (202) 708-
1672, ext. 2324.
 Regulation: 24 CFR 291.210
    Project/Activity: Request for Authorization for Direct Sale of 7106 
Avenue ``F;'', Council Bluffs, Iowa. The request was received from the 
Santa Anna Homeownership Center.
    Nature of Requirement: Section 291.210 permits direct sales at deep 
discounts off the list price of properties sold without mortgage 
insurance to governmental entities and private nonprofit organizations 
for use in HUD and local housing or homeless programs.
    Granted By: Brian D. Montgomery, Assistant Secretary for Housing--
Federal Housing Commissioner.
    Date Granted: December 20, 2005.
    Reason Waived: The city committed to use the property for a civic 
improvement, construction of a viaduct across the railway corridor that 
separates the west and east sides of the city. The direct sale of this 
property was determined in the best interest of HUD and resulted in the 
immediate disposition of the property. The Department may seek to 
dispose of properties through direct sales to other individuals or 
entities that do not meet any of the categories specified in 24 CFR 
291.210.
    Contact: Wanda Sampedro, Director of the Asset Management and 
Disposition Division, Department of Housing and Urban Development, 451 
Seventh Street, SW., Washington, DC 20410-8000; telephone (202) 708-
1672.
 Regulation: 24 CFR 291.210
    Project/Activity: Request for Authorization for Direct Sale of 405 
9th Avenue SE., Austin MN. The request was received from the Santa Anna 
Homeownership Center.
    Nature of Requirement: Section 291.210 permits direct sales at deep 
discounts off the list price of properties sold without mortgage 
insurance to governmental entities and private nonprofit organizations 
for use in HUD and local housing or homeless programs.
    Granted By: Brian D. Montgomery, Assistant Secretary for Housing--
Federal Housing Commissioner.
    Date Granted: December 21, 2005.
    Reason Waived: The city committed to use the property for a civic 
improvement, enlargement of an existing park. The direct sale of this 
property was determined in the best interest of HUD and resulted in the 
immediate disposition of the property. In addition, this sale maximized 
the return to the insurance fund by mitigating the loss associated with 
the demolition, avoiding the potential of further unidentified 
conditions with the property and the savings associated with the normal 
disposition of properties. The Department may seek to dispose of 
properties through direct sales to other individuals or entities that 
do not meet any of the categories specified in 24 CFR 291.210.
    Contact: Wanda Sampedro, Director of the Asset Management and 
Disposition Division, Department of Housing and Urban Development, 451 
Seventh Street, SW., Washington, DC 20410-8000; telephone (202) 708-
1672.
 Regulation: 24 CFR 291.210
    Project/Activity: Request for Authorization for Direct Sale of 1563 
Rockwood Street, Los Angeles, California. The request was received from 
the Santa Anna Homeownership Center.
    Nature of Requirement: Section 291.210 permits direct sales at deep 
discounts off the list price of properties sold without mortgage 
insurance to governmental entities and private nonprofit organizations 
for use in HUD and local housing or homeless programs.
    Granted By: Brian D. Montgomery, Assistant Secretary for Housing--
Federal Housing Commissioner.
    Date Granted: December 21, 2005.
    Reason Waived: The property is located in a section of the 
community that the city has determined to be seriously underserved in 
the way of green space and recreational facilities. The direct sale of 
this property allowed the city to develop a neighborhood community park 
and was determined in the best interest of HUD and resulted in the 
immediate disposition of the property. In addition, this sale maximized 
the return to the insurance fund by mitigating the loss associated with 
the demolition, avoiding the potential of further unidentified 
conditions with the property and the

[[Page 27358]]

savings associated with the normal disposition of properties.
    Contact: Wanda Sampedro, Director of the Asset Management and 
Disposition Division, Department of Housing and Urban Development, 451 
Seventh Street, SW., Washington, DC 20410-8000; telephone (202) 708-
1672.
 Regulation: 24 CFR 291.210
    Project/Activity: Request for Authorization for Direct Sale of 
10440 18th Avenue South, Seattle, Washington. The request was received 
from the Denver Homeownership Center. In June 2004, HUD announced the 
Homewise Initiative (``Homewise'') as a partnership between the 
Department and the National Housing Endowment Corporation. The 
objective was to demonstrate that the public sector and the private 
sector could work together to revitalize neighborhoods. In March of 
2005, HUD and the National Housing Endowment mutually agreed to 
terminate the Homewise agreement and HUD shifted its focus to the 
creation of local partnerships in each of the 10 cities to accomplish 
the original objectives.
    Nature of Requirement: Section 291.210 permits direct sales at deep 
discounts off the list price of properties sold without mortgage 
insurance to governmental entities and private nonprofit organizations 
for use in HUD and local housing or homeless programs.
    Granted By: Brian D. Montgomery, Assistant Secretary for Housing--
Federal Housing Commissioner.
    Date Granted: December 20, 2005.
    Reason Waived: The city of Seattle and its partners, Habitat for 
Humanity and the Homestead Community Land Trust, agreed to rehabilitate 
the house, sell it to a low-income family. The direct sale of this 
property was in the best interest of the secretary and resulted in the 
immediate disposition of the property.
    Contact: Wanda Sampedro, Director of the Asset Management and 
Disposition Division, Department of Housing and Urban Development, 451 
Seventh Street, SW., Washington, DC 20410-8000; telephone (202) 708-
1672.
 Regulation: 24 CFR 401.600
    Project/Activity: The following projects requested waivers to the 
12-month limit at above-market rents (24 CFR 401.600):

------------------------------------------------------------------------
         FHA No.                    Project                  State
------------------------------------------------------------------------
01257247................  Washington Plaza..........  NY
01735226................  Talcott Gardens...........  CT
03135173................  Aspen Temple..............  NJ
04635520................  Miamisburg Manor..........  OH
06535307................  Apple Manor Apartments....  MS
07335226................  Hammond Elderly Apartments  IN
11535245................  Castle Manor Apartments...  TX
17144902................  Orchard Villa Apartments..  ID
------------------------------------------------------------------------

    Nature of Requirement: Section 401.600 requires that projects be 
marked down to market rents within 12 months of their first expiration 
date after January 1, 1998. The intent of this provision is to ensure 
timely processing of requests for restructuring and that the properties 
will not default on their FHA insured mortgages during the 
restructuring process.
    Granted By: Brian D. Montgomery, Assistant Secretary for Housing 
Federal Housing Commissioner.
    Date Granted: November 23, 2005.
    Reason Waived: The projects listed above were not assigned to the 
participating administrative entities (PAEs) in a timely manner or the 
restructuring analysis was unavoidably delayed due to no fault of the 
owner.
    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 401.600
    Project/Activity: The following projects requested waivers to the 
12-month limit at above-market rents (24 CFR 401.600):

------------------------------------------------------------------------
         FHA No.                    Project                  State
------------------------------------------------------------------------
01335127................  Park Drive Manor II.......  NY
07344118................  Gardenside Terrace          IN
                           Cooperative I.
07344119................  Gardenside Terrace          IN
                           Cooperative II.
08535262................  JVL 16...........  MO
05435343................  Manning Gardens...........  SC
01257324................  McGee Hill Apartments.....  NY
------------------------------------------------------------------------

    Nature of Requirement: Section 401.600 requires that projects be 
marked down to market rents within 12 months of their first expiration 
date after January 1, 1998. The intent of this provision is to ensure 
timely processing of requests for restructuring and that the properties 
will not default on their FHA insured mortgages during the 
restructuring process.
    Granted By: Brian D. Montgomery, Assistant Secretary for Housing--
Federal Housing Commissioner.
    Date Granted: November 2, 2005.
    Reason Waived: The projects listed above were not assigned to the 
participating administrative entities (PAEs) in a timely manner or the 
restructuring analysis was unavoidably delayed due to no fault of the 
owner.
    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 811.108(a)(3)
    Project/Activity: White Plains, New York (Armory Plaza Apartments--
Project Number 012-32230). The New York Multifamily Hub requested 
approval for use of excess bond reserve balances to help finance 
project repairs, instead of rebating these funds to HUD, as required by 
regulation.
    Nature of Requirement: HUD's regulations at 24 CFR part 811 provide 
a basis for determining tax exemption of obligations issued by public 
housing agencies pursuant to Section 11(b) of the U.S. Housing Act of 
1937 to refund bonds for Section 8 new construction or substantial 
rehabilitation projects. Section 811.108(a)(3) requires that upon full 
payment of the principal and interest on the obligations any funds 
remaining in the debt service reserve shall be remitted to HUD.
    Granted By: Brian D. Montgomery, Assistant Secretary for Housing--
Federal Housing Commissioner.
    Date Granted: November 8, 2005.
    Reason Waived: The waiver of this regulation was approved based on 
information concerning the urgent need for certain repairs at Armory 
Plaza Apartments from HUD's New York Multifamily Hub. The bonds were 
issued with HUD approval pursuant to 24 CFR part 8ll to refund prior 
bonds, which financed construction of Armory Plaza Apartments. Based on 
the immediate need for brick facade and window replacement, HUD agrees 
that the remaining bond reserves of 4160,000 should be used for capital 
improvements to preserve the physical integrity of Armory Plaza 
Apartments as an affordable housing resource.
    Contact: Beverly J. Miller, Director, Office of Asset Management, 
U.S. Department of Housing and Urban Development, 451 Seventh Street, 
SW., Room 6160, Washington, DC 20410; telephone (202) 708-3730.
 Regulation: 24 CFR 891.100(d)
    Project/Activity: LSS Housing Eau Claire, Eau Claire, WI, Project 
Number: 075-HD080/WI39-Q031-005.
    Nature of Requirement: Section 891.100(d) prohibits amendment of 
the

[[Page 27359]]

amount of the approved capital advance funds prior to initial closing.
    Granted by: Brian D. Montgomer