Notice of Regulatory Waiver Requests Granted for the Fourth Quarter of Calendar Year 2019, 21259-21262 [2020-08052]

Agencies

• DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Federal Register Volume 85, Number 74 (Thursday, April 16, 2020)]
[Notices]
[Pages 21259-21262]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-08052]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-6164-N-04]


Notice of Regulatory Waiver Requests Granted for the Fourth 
Quarter of Calendar Year 2019

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, 2019 and ending on December 31, 2019.

FOR FURTHER INFORMATION CONTACT: For general information about this 
notice, contact Aaron Santa Anna, Acting Associate General Counsel for 
Legislation and 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 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 2019.

SUPPLEMENTARY INFORMATION: Section 106 of the HUD Reform Act added a 
new section 7(q) to the Department of Housing and Urban Development Act 
(42 U.S.C. 3535(q)), which provides that:
    1. Any waiver of a regulation must be in writing and must specify 
the grounds for approving the waiver;
    2. Authority to approve a waiver of a regulation may be delegated 
by the Secretary only to an individual of Assistant Secretary or 
equivalent rank, and the person to whom authority to waive is delegated 
must also have authority to issue the particular regulation to be 
waived;
    3. Not less than quarterly, the Secretary must notify the public of 
all waivers of regulations that HUD has approved, by publishing a 
notice in the Federal Register. These notices (each covering the period 
since the most recent previous notification) shall:
    a. Identify the project, activity, or undertaking involved;
    b. Describe the nature of the provision waived and the designation 
of the provision;
    c. Indicate the name and title of the person who granted the waiver 
request;
    d. Describe briefly the grounds for approval of the request; and
    e. State how additional information about a particular waiver may 
be obtained.
    Section 106 of the HUD Reform Act also contains requirements 
applicable to waivers of HUD handbook provisions that are not relevant 
to the purpose of this notice.
    This notice follows procedures provided in HUD's Statement of 
Policy on Waiver of Regulations and Directives issued on April 22, 1991 
(56 FR 16337). In accordance with those procedures and with the 
requirements of section 106 of the HUD Reform Act, waivers of 
regulations are granted by the Assistant Secretary with jurisdiction 
over the regulations for which a waiver was requested. In those cases 
in which a General Deputy Assistant Secretary granted the waiver, the 
General Deputy Assistant Secretary was serving in the absence of the 
Assistant Secretary in accordance with the office's Order of 
Succession.
    This notice covers waivers of regulations granted by HUD from 
October 1, 2019 through December 31, 2019. For ease of reference, the 
waivers granted by HUD are listed by HUD program office (for example, 
the Office of Community Planning and Development, the Office of Fair 
Housing and Equal Opportunity, the Office of Housing, and the Office of 
Public and Indian Housing, etc.). Within each program office grouping, 
the waivers are listed sequentially by the regulatory section of title 
24 of the Code of Federal Regulations (CFR) that is being waived. For 
example, a waiver of a provision in 24 CFR part 58 would be listed 
before a waiver of a provision in 24 CFR part 570.
    Where more than one regulatory provision is involved in the grant 
of a particular waiver request, the action is listed under the section 
number of the first regulatory requirement that appears in 24 CFR and 
that is being waived. For example, a waiver of both Sec.  58.73 and 
Sec.  58.74 would appear sequentially in the listing under Sec.  58.73.

[[Page 21260]]

    Waiver of regulations that involve the same initial regulatory 
citation are in time sequence beginning with the earliest-dated 
regulatory waiver.
    Should HUD receive additional information about waivers granted 
during the period covered by this report (the fourth quarter of 
calendar year 2019) before the next report is published (the first 
quarter of calendar year 2020), HUD will include any additional waivers 
granted for the fourth quarter in the next report.
    Accordingly, information about approved waiver requests pertaining 
to HUD regulations is provided in the Appendix that follows this 
notice.

    Dated: April 13, 2020.
Jerome Compton,
General Counsel.

Appendix

Listing of Waivers of Regulatory Requirements Granted by Offices of the 
Department of Housing and Urban Development October 1, 2019 Through 
December 31, 2019

    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--Federal 
Housing Administration (FHA)
III. Regulatory Waivers Granted by the Office of Public and Indian 
Housing

I. Regulatory Waivers Granted by the Office of Community Planning and 
Development

    For further information about the following regulatory waivers, 
please see the name of the contact person that immediately follows 
the description of the waiver granted.

     Regulation: 24 CFR 92.205(e)(2) One-Year Extension of 
Project Completion.
    Project/Activity: The city of Jersey City, New Jersey, requested 
a waiver of 24 CFR 92.205(e)(2) for Garden State Episcopal 
(Scattered Sites) NRP III to permit the project to be completed more 
than five years after the date of HOME commitment.
    Nature of Requirement: The regulation at 24 CFR 92.205(e)(2) 
requires that a project be completed within four years of the date 
of commitment of HOME funds or the project is considered terminated 
and the participating jurisdiction must repay all HOME funds 
invested. The regulation also permits HUD to grant an extension of 
up to one year if the participating jurisdiction can demonstrate 
that the project will be completed within one year.
    Granted By: David C. Woll Jr., Principal Deputy Assistant 
Secretary for Community Planning and Development.
    Date Granted: December 17, 2019.
    Reason Waived: The city requested, and HUD approved a one-year 
extension of the HOME four-year project completion deadline for the 
Garden State Episcopal (Scattered Sites) NRP III to November 14, 
2019. However, the project could not be completed within five years 
of the date of the HOME commitment because the homebuyer requested 
re-inspection for radon testing. The reinspection and closing were 
scheduled after the deadline. This waiver permitted the city to 
complete the project, retain HOME units in its affordable housing 
inventory, and avoid repayment of HOME funds.
    Contact: Virginia Sardone, Director, Office of Affordable 
Housing Programs, Office of Community Planning and Development, 
Department of Housing and Urban Development, 451 Seventh Street SW, 
Room 7160, Washington, DC 20410, telephone (202) 708-2684.

     Regulation: 24 CFR 92.252(d)(1) Utility Allowance 
Requirements
    Project/Activity: Contra Costa County, California, requested a 
waiver of 24 CFR 92.252(d)(1) to allow use of utility allowance 
established by local public housing agency (PHA) for a HOME-assisted 
project--Elaine Null and Riley Court Apartments.
    Nature of Requirement: The regulation at 24 CFR 92.252(d)(1) 
requires participating jurisdictions to establish maximum monthly 
allowances for utilities and services (excluding telephone) and 
update the allowances annually. However, participating jurisdictions 
are not permitted to use the utility allowance established by the 
local public housing authority for HOME-assisted rental projects.
    Granted By: David C. Woll Jr., Principal Deputy Assistant 
Secretary for Community Planning and Development.
    Date Granted: October 18, 2019.
    Reason Waived: The HOME requirements for establishing a utility 
allowances conflict with Project Based Voucher program requirements. 
It is not possible to use two different utility allowances to set 
the rent for a single unit and it is administratively burdensome to 
require a project owner to establish and implement different utility 
allowances for HOME-assisted units and non-HOME assisted units in a 
project.
    Contact: Virginia Sardone, Director, Office of Affordable 
Housing Programs, Office of Community and Planning Development, 
Department of Housing and Urban Development, 451 Seventh Street SW, 
Room 7160, Washington, DC 20410, telephone (202) 708-2684.

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

    For further information about the following regulatory waivers, 
please see the name of the contact person that immediately follows 
the description of the waiver granted.

     Regulation: 24 CFR 219.220(b)(1995).
    Project/Activity: Kenmore Gardens, FHA Project Number 042-
44014T; and Kenmore Village, FHA Project Number 042-35589, 
Cleveland, OH. Kenmore Gardens Limited Partnership and Kenmore 
Village Limited Partnership (Owner) seeks approval to defer 
repayment of the Flexible Subsidy Operating Assistance Loans on the 
subject projects.
    Nature of Requirement: The regulation at 24 CFR 219.220(b) 
(1995), which governs the repayment of operating assistance provided 
under the Flexible Subsidy Program for Troubled Properties, states 
``Assistance that has been paid to a project owner under this 
subpart must be repaid at the earlier of the expiration of the term 
of the mortgage, termination of mortgage insurance, prepayment of 
the mortgage, or a sale of the project.''
    Granted by: Brian D. Montgomery, Assistant Secretary for 
Housing--Federal Housing Commissioner, H.
    Date Granted: December 5, 2019.
    Reason Waived: The owners requested and were granted waiver of 
the requirement to repay the Flexible Subsidy Operating Assistance 
Loans in full when they became due. Deferring the loan payments will 
preserve these affordable housing resources for an additional 30 
years through the execution and recordation of a Rental Use 
Agreement.
    Contact: Crystal Martinez, Senior Account Executive, Office of 
Field Management and Program Administrative Division, Office of 
Housing, Department of Housing and Urban Development, 451 7th Street 
SW, Washington, DC 20410, telephone (202) 402-3718.

     Regulation: 24 CFR 219.220(b)(1995).
    Project/Activity: Pierson Hills I Apartments, FHA Project Number 
072-44015T, Peoria, IL. Upgrade Development Corporation (owner) 
seeks approval to defer repayment of the Flexible Subsidy Operating 
Assistance Loan on the subject project.
    Nature of Requirement: The regulation at 24 CFR 219.220(b) 
(1995), which governs the repayment of operating assistance provided 
under the Flexible Subsidy Program for Troubled Properties, states 
``Assistance that has been paid to a project owner under this 
subpart must be repaid at the earlier of the expiration of the term 
of the mortgage, termination of mortgage insurance, prepayment of 
the mortgage, or a sale of the project.''
    Granted by: Brian D. Montgomery, Assistant Secretary for 
Housing--Federal Housing Commissioner, H.
    Date Granted: December 5, 2019.
    Reason Waived: The owner requested and was granted waiver of the 
requirement to repay the Flexible Subsidy Operating Assistance Loan 
in full when it became due. Deferring the loan payment will preserve 
the affordable housing resource for an additional 20 years through 
the execution and recordation of a Rental Use Agreement.
    Contact: Crystal Martinez, Senior Account Executive, Office of 
Field Management and Program Administrative Division, Office of 
Housing, Department of Housing and Urban Development, 451 7th Street 
SW, Washington, DC 20410, telephone (202) 402-3718.

     Regulation: 24 CFR 232.7.
    Project/Activity: Marjorie House FHA #113-22278, is an Assisted 
Living/Memory Care facility. The facility does not meet the 
requirements of 24 CFR 232.7 ``Bathroom'' of FHA's regulations. The 
project location is McMinnville, Oregon.
    Nature of Requirement: The regulation at 24 CFR 232.7 mandates 
in a board and care

[[Page 21261]]

home or assisted living facility that not less than one full 
bathroom must be provided for every four residents. Also, the 
bathroom cannot be accessed from a public corridor or area.
    Granted By: Brian D. Montgomery, Assistant Secretary for 
Housing--Federal Housing Commissioner.
    Date Granted: October 19, 2019.
    Reason Waived: The project currently has a resident to shower 
ratio of 9:1. The memory care residents require assistance with 
bathing. These residents are housed in units in a secure, lock-down 
area, with a half-bathroom each and access to the shower rooms 
through a hallway. The project meets the State of Oregon licensing 
requirements for bathing and toileting facilities.
    Contact: John Hartung, Director of Policy, Risk Analysis & 
Lender Relations, Office of Residential Care Facilities, Office of 
Healthcare Programs, Office of Housing, Department of Housing and 
Urban Development, 1222 Spruce Street, 3rd Floor, St. Louis, MO 
63103, Telephone (314) 418-5238.

     Regulation: 24 CFR 881.205(c).
    Project/Activity: Bryn Mawr Apartments, FHA Project Number 071-
35760, Chicago, IL. Bryn Mawr Preservation Limited Partnership, an 
Illinois limited partnership (Proposed Owner) seeks approval to 
allow for new equity associated with the four percent tax credits 
and bonds from Illinois Housing Development Authority to be infused 
into the project to be considered as ``owner initial equity'' for 
the purpose of calculating distributions.
    Nature of Requirement: The regulation at 24 CFR 881.205 (c) 
defines terms applicable to determining the allowable distribution, 
and under this section ``an owner's equity investment in a project 
is deemed to be 10 percent of the replacement cost of the part of 
the project attributable to dwelling use accepted by HUD at cost 
certification, unless the owner justifies a higher equity 
contribution by cost certification documentation in accordance with 
HUD mortgage insurance procedures.''
    Granted by: Brian D. Montgomery, Assistant Secretary for 
Housing--Federal Housing Commissioner, H.
    Date Granted: November 13, 2019.
    Reason Waived: The proposed owner requested and was granted 
waiver of the requirement to allow for ``new'' equity infused by Tax 
Credits and bonds to be included in the calculation of the Owner's 
Distribution to be considered under the allowable equity as 
described in section 24 CFR 881.205 (c). Granting this waiver is 
consistent with both programmatic objectives and the Secretary's 
goal of maintaining affordable housing for low-income persons.
    Contact: Crystal Martinez, Senior Account Executive, Office of 
Field Management and Program Administrative Division, Office of 
Housing, Department of Housing and Urban Development, 451 7th Street 
SW, Washington, DC 20410, telephone (202) 402-3718.

III. Regulatory Waivers Granted by the Office of Public and Indian 
Housing

    For further information about the following regulatory waivers, 
please see the name of the contact person that immediately follows 
the description of the waiver granted.

     Regulation: 2 CFR 200.311(c)(1).
    Project/Activity: The New York City Housing Authority (NYCHA) 
requested that HUD grant it an exception from the requirement at 2 
CFR 200.311(c)(1) to compensate HUD for HUD's percentage of 
participation in the costs of the Williams Plaza and Independence 
public housing properties. This request was made pursuant to a 
request by NYCHA to retain these properties (outside of public 
housing requirements) under 2 CFR 200.311. NYCHA (and these 
properties) are located in New York, NY.
    Nature of Requirement: 2 CFR 200.311(c)(1) states that ``[w]hen 
real property is no longer needed for the originally authorized 
purpose,'' HUD must provide disposition instructions whereby a non-
Federal entity (in this case, a Public Housing Agency (PHA)) can 
retain title after compensating HUD. ``The amount paid to [HUD] will 
be computed by applying [HUD's] percentage of participation in the 
cost of the original purchase (and costs of any improvements) to the 
fair market value of the property.''
    Granted By: R. Hunter Kurtz, Assistant Secretary, Public and 
Indian Housing, granted this exception pursuant to 2 CFR 200.102(b). 
Under this authority, HUD has the authority to grant requests to the 
compensation requirement of 2 CFR 200.311(c)(1) on a case-by-case 
basis.
    Date Granted: November 18, 2019.
    Reason Waived: NYCHA did not use public housing funds to acquire 
the Williams Plaza and Independence properties. HUD's percentage of 
participation in the cost of the Williams Plaza and Independence 
properties was 39.95% and 38.14%. NYCHA justified its request for 
the exception to compensate HUD on its intent to operate the 
properties as affordable housing outside of the public housing 
program. Specifically, NYCHA indicated it would add all units at 
these properties to a Section 8 project-based voucher (PBV) HAP that 
was executed on March 16, 2010 that was already in effect for others 
unit at the properties. HUD granted this request based on the 
continued future use of the properties as housing for low-income 
families through the PBV program and the relatively low percentage 
of HUD funds in these properties. HUD's approval required NYCHA to 
record a 40-year use restriction against the properties that 
required the properties to be operated as Section 8 PBV housing for 
low-income families.
    Contact: Robert E. Mulderig, Deputy Assistant Secretary, Office 
of Public Housing Investments, Office of Public and Indian Housing, 
Department of Housing and Urban Development, 451 Seventh Street SW, 
Room 4130, Washington, DC 20410, telephone (202) 402-4780.
     Regulation: 24 CFR 905.314(c) and (d).
    Project/Activity: The Housing Authority of the County of 
Lackawanna (HACL) requested that HUD grant a waiver on the 
requirement of 24 CFR 905.314(c) limiting the total development cost 
(TDC limit) of a new construction project and 24 CFR 905.314(d) 
limiting the housing construction cost (HCC), both determined 
annually by the U.S. Department of Housing and Urban Development. 
This request was made due to the capital planning requirements of 
the Project in constructing all handicap-accessible units and the 
inability to achieve economies of scale on a project this small.
    Nature of Requirement: 24 CFR 905.314(c) and (d) requires that 
Public Housing funds, including Capital Funds, may not be used to 
pay for Housing Construction Cost (HCC) and Community Renewal Costs 
in excess of the Total Development Cost (TDC) limit. Similarly, the 
regulation at 24 CFR 905.314(d) requires that a PHA not use Capital 
Funds to pay for HCC in excess of the amount determined under 
paragraph (d) (2) of that section.
    Granted By: R. Hunter Kurtz, Assistant Secretary, Public and 
Indian Housing, granted this pursuant to 24 CFR 905.314(c) and (d). 
In accordance with 24 CFR 5.110, good cause was determined to waive 
the TDC and HCC limits due to the additional construction costs 
associated with the accessibility requirements of the project.
    Date Granted: December 16, 2019.
    Reason Waived: HACL submitted documentation by an engineering 
firm, based on the construction of accessible units, in which each 
unit required extra space for dimensional allowances for wheelchair 
occupants, accessible cabinets, tubs, handrails and ramps, and 
sidewalk modifications. Thus, the construction cost increased by 
$157,600, exceeding the TDC and HCC limits, per the engineering 
firm. Good cause exists to waive TDC and HCC limits due to 
additional construction and the inability to economies of scale on a 
project this small.
    Contact: Robert E. Mulderig, Deputy Assistant Secretary, Office 
of Public Housing Investments, Office of Public and Indian Housing, 
Department of Housing and Urban Development, 451 Seventh Street SW, 
Room 4130, Washington, DC 20410, telephone (202) 402-4780.

     Regulation: 24 CFR 905.314(c).
    Project/Activity: The Housing Authority of New Orleans (HANO) 
requested that HUD grant a waiver on the requirement of 24 CFR 
905.314(c) limiting the total development cost (TDC limit) of a new 
construction project as determined annually by the U.S. Department 
of Housing and Urban Development.
    Nature of Requirement: 24 CFR 905.314(c) and (d) requires that 
Public Housing funds, including Capital Funds, may not be used to 
pay for Housing Construction Cost (HCC) and Community Renewal Costs 
in excess of the Total Development Cost (TDC) limit.
    Granted By: R. Hunter Kurtz, Assistant Secretary, Public and 
Indian Housing, granted this pursuant to 24 CFR 905.314(c). In 
accordance with 24 CFR 5.110, good cause was determined to waive the 
TDC limits and to accommodate the additional construction costs the 
site's redevelopment was divided into two phases to increase 
fundability.
    Date Granted: December 27, 2019.
    Reason Waived: HANO submitted a letter requesting a waiver which 
stated that if the Choice Neighborhoods funds used for

[[Page 21262]]

acquisition were not included in the calculation for TDC, the TDC 
limit would not have exceeded amongst other items.
    Contact: Robert E. Mulderig, Deputy Assistant Secretary, Office 
of Public Housing Investments, Office of Public and Indian Housing, 
Department of Housing and Urban Development, 451 Seventh Street SW, 
Room 4130, Washington, DC 20410, telephone (202) 402-4780.

[FR Doc. 2020-08052 Filed 4-15-20; 8:45 am]`
BILLING CODE 4210-67-P