Relief From HUD Public Housing and Section 8 Requirements Available During CY 2020 and CY 2021 to Public Housing Agencies To Assist With Recovery and Relief Efforts on Behalf of Families Affected by Presidentially Declared Major Disasters, 71936-71940 [2020-24955]

Agencies

• DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Federal Register Volume 85, Number 219 (Thursday, November 12, 2020)]
[Notices]
[Pages 71936-71940]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-24955]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-6050-N-04]


Relief From HUD Public Housing and Section 8 Requirements 
Available During CY 2020 and CY 2021 to Public Housing Agencies To 
Assist With Recovery and Relief Efforts on Behalf of Families Affected 
by Presidentially Declared Major Disasters

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

ACTION: Notification.

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SUMMARY: This notification advises the public that HUD, in order to 
more effectively and expeditiously respond to Presidentially declared 
Major Disaster Declarations (MDDs), is establishing for calendar year 
(CY) 2020 and CY 2021 an expedited process for the review of requests 
for relief from HUD regulatory and/or administrative requirements 
(``HUD requirements'') for Public Housing Agencies (PHAs) located in

[[Page 71937]]

counties that are included in MDDs. PHAs located in areas covered by 
MDDs issued for which a related disaster occurs during CY 2020 and CY 
2021 may request waivers of certain HUD Public Housing and Section 8 
requirements and receive expedited review of such requests utilizing 
the flexibilities and expedited waiver process set out by this 
notification.

DATES: This document announces the waivers and flexibilities set out in 
this document as of the date of signature.

FOR FURTHER INFORMATION CONTACT: Tesia Irinyenikan, Office of Field 
Operations, Office of Public and Indian Housing, Department of Housing 
and Urban Development, 451 Seventh Street SW, Room 3180, Washington, DC 
20410-5000, or email [email protected]. Persons with hearing 
or speech impairments may access this number via TTY by calling the 
Federal Relay Service at 800-877-8339 (this is a toll-free number).

SUPPLEMENTARY INFORMATION:

I. Background Information

    On several occasions in recent years, after Presidential disaster 
declarations, HUD has published documents announcing waivers and 
flexibilities available to PHAs, Tribes, and Tribally Designated 
Housing Entities (TDHEs) located in areas covered by MDDs.\1\ In the 
interest of expediting HUD's ability to provide administrative relief 
to PHAs in MDD declaration areas, based on HUD's past experience, HUD 
is publishing this notification on waivers and flexibilities that will 
be made available to PHAs on an expedited basis following MDDs. The 
notification is organized as follows:
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    \1\ See, Regulatory and Administrative Waivers Granted for 
Public and Indian Housing Programs to Assist with Recovery and 
Relief in Hurricane Katrina Disaster Areas, 70 FR 57716 (October 3, 
2005); Regulatory and Administrative Waivers Granted for Public and 
Indian Housing Programs to Assist with Recovery and Relief in 
Hurricane Rita Disaster Areas; and Additional Administrative Relief 
for Hurricane Katrina, 70 FR 66222 (November 1, 2005); Extension of 
Regulatory and Administrative Waivers Granted for Public and Indian 
Housing Programs to Assist With Recovery and Relief in Hurricanes 
Katrina, Rita, and Wilma Disaster Areas, 71 FR 78022 (December 27, 
2006); Regulatory and Administrative Waivers Granted for Public and 
Indian Housing Programs to Assist with Recovery and Relief in 
Hurricane Wilma Disaster Areas, 71 FR 12988 (March 13, 2006); 
Regulatory and Administrative Waivers Granted for Public and Indian 
Housing Programs to Assist with Recovery and Relief in Superstorm 
Sandy Disaster Areas, 77 FR 71439 (November 30, 2012); Relief From 
HUD Requirements Available to PHAs to Assist With Recovery and 
Relief Efforts on Behalf of Families Affected by Hurricanes Harvey, 
Irma, Maria and Future Natural Disasters Where Major Disaster 
Declarations Might be Issued in 2017, 82 FR 46821 (October 6, 2017) 
and; Relief From HUD Requirements Available During Calendar Year 
(CY) 2018 to Public Housing Agencies To Assist With Recovery and 
Relief Efforts on Behalf of Families Affected by Presidentially-
Declared Major Disasters, 83 FR 46180 (September 12, 2018).
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     Section II describes the flexibilities that are currently 
available to MDD PHAs under statutes and/or regulations. MDD PHAs may 
avail themselves of these flexibilities, following the process 
described in Section IV of the notification.
     Section III describes certain HUD requirements that, if 
waived, may facilitate an MDD PHA's ability to participate in relief 
and recovery efforts. An MDD PHA may request a waiver of a HUD 
requirement not listed in Section III and receive expedited review of 
the request if the MDD PHA demonstrates that the waiver is needed to 
assist in its relief and recovery efforts. An MDD PHA may not adopt any 
requested waiver prior to receiving HUD approval.
     Section IV describes certain HUD requirements that, if 
granted an exception, may facilitate an MDD PHA's ability to 
participate in relief and recovery efforts. An MDD PHA may request an 
exception not listed in Section IV and receive expedited review of the 
request if the MDD PHA demonstrates that the exception is needed to 
assist in its relief and recovery efforts. An MDD PHA may not adopt any 
requested exception prior to receiving HUD approval.
     Section V provides the instructions for submitting waiver 
requests.
     Section VI states that a Finding of No Significant Impact 
(FONSI) with respect to the environment has been made in accordance 
with HUD regulations at 24 CFR part 50, which implement section 
102(2)(C) of the National Environmental Policy Act of 1969 (42 U.S.C. 
4332(2)(C)).
    Waiver requests approved by HUD pursuant to this notification will 
be published in the Federal Register and will identify the MDD PHAs 
receiving such approvals. The process that HUD will use in assessing 
applications for waivers and flexibilities is covered below.
    This notification applies only to Presidentially declared MDDs that 
occurred during CY 2020 and CY 2021. However, upon finding of good 
cause, HUD may consider extending the time period of regulatory waivers 
or flexibilities described below, subject to statutory limitations and 
pursuant to 24 CFR 5.110.
    Pursuant to the authority provided under the Coronavirus Aid, 
Relief and Economic Security (CARES) Act (Pub. L. 116-36), HUD 
established waivers, administrative flexibilities and alternative 
requirements for numerous statutory and regulatory requirements for the 
Public Housing program, the Housing Choice Voucher (HCV) program, 
Indian Housing Block Grant (IHBG) program and the Indian Community 
Development Block Grant (ICBG) program. The Office of Public and Indian 
Housing's CARES Act-related Policy Notices, and other COVID-19 
resources can be found at HUD's Public and Indian Housing COVID-19 
Resources web page, https://www.hud.gov/program_offices/public_indian_housing/covid_19_resources.
    Some of the regulatory waivers and exceptions found in Notice PIH 
2020-13 (HA), REV-1 (COVID-19 Statutory and Regulatory Waivers 
Alternative Requirements . . .), or its replacement, are also 
applicable to MDD PHAs. However, the authority, pursuant to the CARES 
Act, to waive statutory requirements is not applicable under this 
notice. An MDD PHA seeking a waiver of a HUD regulation listed below, 
or of any other HUD requirement needed to assist the MDD PHA in its 
relief and recovery efforts must submit a waiver request pursuant to 
the process that will be provided in Section V of this notification. 
HUD will not approve an MDD PHA's or other recipient's request to waive 
a fair housing, civil rights, labor standards, or HUD's environmental 
review requirements.

II. Flexibilities That are Available to MDD PHAs During CY 2020 and CY 
2021

    HUD is exercising discretionary authority from section 106 of the 
Department of Housing and Urban Development Reform Act of 1989 and 
consistent with 24 CFR 5.110 to provide relief from the requirements 
described in this section of this notification. Upon application to HUD 
and appropriate documentation of good cause, HUD may approve, as noted 
below, regulatory relief for disaster relief and recovery to MDD PHAs. 
If a PHA needs the regulatory relief for more time, please submit 
documentation of good cause, and HUD may consider extending the 
flexibilities, subject to statutory limitations and pursuant to 24 CFR 
5.110, to facilitate an MDD PHA's ability to participate in relief and 
recovery efforts. Unless otherwise stated, the deadline for requesting 
waivers is four months after the initial MDD.
    A. 24 CFR 990.145(b) (Public housing dwelling units with approved 
vacancies). Section 990.145 lists the categories of vacant public 
housing units that are eligible to receive operating subsidy and are 
therefore considered to be ``approved vacancies.'' Under Section 
990.145(b)(2), a PHA shall receive operating subsidy for units

[[Page 71938]]

that are vacant due to a federally declared, state declared or other 
declared disaster, subject to prior HUD approval, on a project-by-
project basis. If an MDD PHA has a unit that has been vacated due to a 
Presidentially-declared disaster, then the MDD PHA, with HUD approval, 
may treat the unit as an ``approved vacancy.'' Upon the request of an 
MDD PHA and HUD approval, on a case-by-case basis, such units may be 
considered approved vacancies for a period not to exceed 12 months from 
the date of HUD approval.

III. HUD Requirements That May Be Waived

    For an MDD PHA, HUD will review requests for waivers of HUD 
requirements on an expedited basis. This section lists procedural and 
substantive requirements for regulatory waivers in event of an MDD. An 
MDD PHA may also request a waiver of a HUD requirement not listed in 
this section and receive expedited review of the request if the MDD PHA 
documents that the waiver is needed for major disaster relief and/or 
recovery. If a PHA needs the regulatory relief for more time, please 
submit documentation of good cause, and HUD may consider extending the 
waiver, subject to statutory limitations and pursuant to 24 CFR 5.110, 
to facilitate an MDD PHA's ability to participate in relief and 
recovery efforts. PHAs should note that waivers of essential program 
requirements such as property inspection or income verification will 
not be granted in their entirety although modifications or requirements 
may be considered. Also, HUD's ability to grant waivers or approval of 
alternative requirements imposed by statute is limited to expressed 
statutory authority. PHAs should go through the hierarchy of verifying 
income as found in PIH Notice 2018-24 if sources of income are 
difficult to find. Similarly, while the requirement for Housing Quality 
Standards (HQS) inspections cannot be waived, HUD can consider 
variations to the acceptability criteria to HQS in case of disaster 
(under the authority of Sec.  982.401(a)(4)).
    An MDD PHA seeking a waiver of a HUD requirement listed below or of 
any other HUD requirement needed to assist the MDD PHA in its relief 
and recovery efforts must submit a waiver request pursuant to the 
process that will be provided in Section IV of this notification. The 
request must be submitted to HUD not later than 4 months following the 
date of the relevant disaster declaration. HUD will not approve an MDD 
PHA's or other recipient's request to waive a fair housing, civil 
rights, labor standards, or environmental protection requirement.
    A. 24 CFR 905.400(i)(5) (Capital Fund Formula; Replacement Housing 
Factor to reflect formula need for projects with demolition or 
disposition occurring on or after October 1, 1998, and prior to 
September 30, 2013). Section 905.400 describes the Capital Fund 
formula. Section 905.400(i)(5) limits the use of replacement housing 
funds to the development of new public housing. To help address housing 
needs because of the displacement caused by the MDD, HUD will consider 
waiving section 905.400(i)(5) to allow all unexpended Capital Fund 
Replacement Housing Factor Grants to be used for public housing 
modernization. Should HUD waive this requirement, the waiver will be in 
effect for funds obligated within 12 months from the date of HUD 
approval.
    B. 24 CFR 982.503(c) (HUD approval of exception payment standard 
amount). 24 CFR 982.503(c) authorizes HUD to approve an exception 
payment standard amount that is higher than 110 percent of the 
published fair market rent (FMR). Typically, a PHA must provide data 
about the local market to substantiate the need for an exception 
payment standard. In a major disaster declaration situation, however, 
the typical data sources may fail to capture conditions on the ground. 
In these cases, HUD considers the most recently available data on the 
rental market, prior to the disaster, then estimates the number of 
households seeking housing units in the wake of the disaster to arrive 
at an emergency exception payment standard amount. In the event of a 
disaster, HUD will consider, based on this data, whether exception 
payment standard amounts up to 150 percent of the FMR have a good cause 
justification even in the absence of supporting data. If so, an MDD PHA 
may request this payment standard. Upon approval by HUD, an exception 
payment standard adopted pursuant to this notification may be adopted 
for any Housing Assistance Payments (HAP) contract entered as of the 
effective date of this notification. HUD intends for these exception 
payment standards to remain in effect until HUD implements changes to 
the FMRs in the affected areas under an MDD. MDD PHAs are reminded that 
increased per-family costs resulting from the use of exception payment 
standards may result in a reduction in the number of families assisted 
or may require other cost-saving measures for an MDD PHA to stay within 
its funding limitations.
    C. 24 CFR 982.633(a) (Occupancy of home). This section establishes 
the requirement that PHAs may make HAP for homeownership assistance 
only while a family resides in their home and must stop HAP no later 
than the month after a family moves out. HUD will consider a request 
from an MDD PHA wishing to waive this requirement to allow families 
displaced from their homes located in areas affected by MDD(s) to 
comply with mortgage terms or make necessary repairs. A PHA requesting 
a waiver of this type must show good cause by demonstrating that the 
family is not already receiving assistance from another source. Note: 
An MDD PHA must separately request a waiver of the requirement at Sec.  
982.312 (that a family be terminated from the program if they have been 
absent from their home for 180 consecutive calendar days).
    D. Waivers not identified FR-6050- N-04. An MDD PHA may request a 
waiver of HUD requirement not listed in Section III of this notice. 
Please be reminded that HUD will only consider waivers or flexibilities 
subject to statutory limitations and pursuant to 24 CFR 5.110. COVID-19 
MDDs are not covered under this notice. Agencies seeking administrative 
or regulatory relief due to a COVID-19 MDD, must follow the guidance 
prescribed in specific COVID-19 notices issued by the Office of Public 
and Indian Housing, pursuant to the Coronavirus Aid, Relief and 
Economic Security (CARES) Act (Pub. L. 136-36). See e.g., PIH Notice 
2020-05, issued April 10, 2020.

IV. Exceptions

    Notice PIH 2012-10, Section 8(c) (Verification of the Social 
Security Number (SSN)). PHAs are required to transmit form HUD-50058 
not later than 30 calendar days following receipt of an applicant's or 
participant's SSN documentation. HUD is willing to consider a request 
to extend this requirement to 90 calendar days, for a period not to 
exceed 12 months from the date of HUD approval.

V. Notification and Expedited Waiver Process During CY 2020 and 
CY2021--Instructions

    HUD has developed a checklist (Attachment A to this notification) 
that an MDD PHA must complete and submit to take advantage of the 
provisions identified in this notification and the expedited review of 
waiver requests. Each provision on the checklist indicates the 
documentation that must accompany the MDD PHA's submission. Each 
request for a waiver (Section 3 of the checklist) must include a good-
cause justification stating why

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the waiver is needed for the PHA's relief and recovery efforts.
    To complete the checklist, take the following steps:
    1. Copy and paste the checklist found in Attachment A into a new 
document on your computer, saving the document with the following 
filename format: FR-6050-N-04-XX123. The Federal Register docket number 
(FR-6050-N-04), a hyphen, then your Agency's HA Code. For example: FR-
6050-N-04-AL123. HUD will consider other methods of submission as 
needed.
    2. Complete the section titled ``Information about Requesting 
Agency'' in its entirety. This section must be complete. An official of 
the MDD PHA must sign where indicated. If the information about the 
requesting agency is incomplete or the checklist has not been signed, 
then the checklist will be returned without review.
    3. Complete Sections 1, 2, and/or 3 of the checklist, as 
applicable, noting the documentation (if any) that accompanies each 
provision.
    4. Address an email to both [email protected] and your 
HUD Field Office Public Housing Director. In the subject line, type 
``PHA Name--PHA Code--MDD Disaster Relief--Month and Year''. For 
example, Allenway Housing Authority--AL123-MDD Disaster Relief--October 
2020.
    5. Attach the completed checklist, letter of justification, and all 
supporting documentation as applicable to your email.
    6. Click ``Send.''
    Checklists and any supporting documentation or information must be 
submitted not later than 4 months following the MDD. Requests submitted 
AFTER that time period will not be considered except in special cases 
outside of the agency's control.

VI. Finding of No Significant Impact

    A Finding of No Significant Impact (FONSI) with respect to the 
environment has been made in accordance with HUD regulations at 24 CFR 
part 50, which implement section 102(2)(C) of the National 
Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)).
    The FONSI is available for public inspection between 8 a.m. and 5 
p.m. weekdays in the Regulations Division, Office of General Counsel, 
Department of Housing and Urban Development, 451 7th Street SW, Room 
10276, Washington, DC 20410-0500. Due to security measures at the HUD 
Headquarters building, an advance appointment to review the docket file 
must be scheduled by calling the Regulations Division at 202-708-3055 
(this is not a toll-free number). Hearing- or speech-impaired 
individuals may access this number through TTY by calling the Federal 
Relay Service at 800-877-8339 (this is a toll-free number).

R. Hunter Kurtz,
Assistant Secretary for Public and Indian Housing.

Attachment A--Checklist

Relief From HUD Public Housing and Section 8 Requirements Available 
During CY 2020 and CY 2021 to Public Housing Agencies To Assist With 
Recovery and Relief Efforts on Behalf of Families Affected by 
Presidentially Declared Major Disasters

Information About Requesting Agency

NAME OF PHA: ___
PHA CODE: ___
Address: ___
City or Locality: (must be covered under PDD) ___
Parish: ___
Date of Submission: ___
Signature of PHA Official: ___
Name/Title of PHA Official: ___
Phone number of PHA Official: ___

Section 1. List the Presidentially-Declared Major Disaster your agency 
is under: ___

Section 2. Insert an ``X'' next to the applicable flexibilities.

    An MDD PHA may adopt the flexibilities listed below.
__A. 24 CFR 990.145(b) (Public housing dwelling units with approved 
vacancies). (Public Housing Financial Management Division)
    My agency requests HUD approval to treat certain vacant public 
housing units in our inventory as approved vacancies for the continued 
receipt of Operating Subsidy. I have attached a project-by-project 
listing of the units for which this approval is requested. I understand 
that any units that remain vacant shall be considered approved 
vacancies only for a period not to exceed 12 months from the date of 
HUD approval.

Section 3. Insert an ``X'' next to the applicable waiver requests.

    An MDD PHA may request a waiver of a HUD requirement listed below 
or of any other HUD requirement and receive expedited review of the 
request, if the MDD PHA demonstrates that the waiver is needed for 
relief and recovery purposes. Each request must include a good-cause 
justification for the waiver, documenting why the waiver is needed for 
such purposes. No requested waiver may be implemented unless and until 
written approval from HUD has been obtained.
__A. 24 CFR 905.400(i)(5) (Capital Fund Formula; Replacement Housing 
Factor to reflect formula needs for projects with demolition or 
disposition occurring on or after October 1, 1998, and prior to 
September 2013). (Office of Capital Improvements)
    My agency requests a waiver of 24 CFR 905.400(i)(5) to allow for 
the use of Capital Fund Replacement Housing Factor grants with 
undisbursed balances for public housing modernization. I understand 
that this waiver will be in effect only for funds obligated within 12 
months from the date of HUD approval.
__B. 24 CFR 982.503(c) (HUD approval of exception payment standard 
amount). (Housing Voucher Management and Operations)
    My agency requests to establish an exception payment standard 
amount that is higher than 110 percent of the published fair market 
rent (FMR). I have attached our proposed emergency exception payment 
standard schedule, which shows both the dollar amounts requested and 
those amounts as a percentage of the FMRs in effect at the time of the 
request. I understand that any approved exception payment standard will 
remain in effect until HUD revises the FMRs for the area. I also 
understand that increased per-family costs resulting from the use of 
such exception payment standard may result in a reduction in the number 
of families assisted or may require my agency to adopt other cost-
saving measures.
__C. 24 CFR 982.633(a) (Occupancy of home). (Housing Voucher Management 
and Operations)
    My agency requests a waiver of 24 CFR 982.633(a) so that we may 
continue HAP for homeownership for families displaced from their homes 
if needed to comply with mortgage terms or make necessary repairs. We 
have determined that the family is not receiving assistance from 
another source. I understand that such payments must cease if the 
family remains absent from their home for more than 180 consecutive 
calendar days.
__D. Waivers not identified in the PIH Notice, Relief from HUD Public 
Housing and Section 8 Requirements Available During CY2020 and 2021 to 
PHAs to Assist with Recovery and Relief Efforts on Behalf of Families 
Affected by Presidentially Declared Major Disasters [FR-6050-N-04].
    My agency seeks waivers of the HUD requirements listed below. None 
of the requests are to waive a fair housing, civil rights, labor 
standards, or environmental review requirements. I have included 
documentation justifying the need for the waivers.

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Section 4. Insert an ``X'' next to the applicable exception request.

    An MDD PHA may request an exception of the HUD requirement listed 
below and receive expedited review of the request, if the MDD PHA 
demonstrates that the exception is needed for relief and recovery 
purposes. Each request must include a good-cause justification for the 
exception, documenting why the exception is needed for such purposes. 
No requested exception may be implemented unless and until written 
approval from HUD has been obtained.
__Notice PIH 2012-10, Section 8(c) (Verification of the Social Security 
Number (SSN)). (Real Estate Assessment Center)
    My agency requests a waiver of section 8(c) of Notice PIH 2012-10 
to allow for the submission of Form HUD-50058 90 calendars days from 
receipt of an applicant's or participant's SSN documentation. I 
understand that this waiver will be in effect for a period not to 
exceed 12 months from the date of HUD approval.

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                Regulation                           Description
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Example: 24 CFR 982.54....................  Example: A waiver of this
                                             regulation will facilitate
                                             our agency's capacity to
                                             participate in relief and
                                             recovery efforts by
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[FR Doc. 2020-24955 Filed 11-10-20; 8:45 am]
BILLING CODE 4210-67-P