Notice of Regulatory Waiver Requests Granted for the Second Quarter of Calendar Year 2021, 66574-66582 [2021-25566]

Agencies

• DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Federal Register Volume 86, Number 223 (Tuesday, November 23, 2021)]
[Notices]
[Pages 66574-66582]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-25566]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-6268-N-02]


Notice of Regulatory Waiver Requests Granted for the Second 
Quarter of Calendar Year 2021

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 April 1, 2021 and ending on June 30, 2021.

FOR FURTHER INFORMATION CONTACT: For general information about this 
notice, contact Aaron Santa Anna, Associate General Counsel for 
Legislation and Regulations, Department of Housing and Urban 
Development, 451 7th Street SW, Room 10282, Washington, DC 20410-0500, 
telephone 202-708-5300 (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

[[Page 66575]]

whose name and address follow the description of the waiver granted in 
the accompanying list of waivers that have been granted in the second 
quarter of calendar year 2021.

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 April 
1, 2021 through June 30, 2021. 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.
    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 second quarter of 
calendar year 2021) before the next report is published (the third 
quarter of calendar year 2021), HUD will include any additional waivers 
granted for the second quarter in the next report.
    Accordingly, information about approved waiver requests pertaining 
to HUD regulations is provided in the Appendix that follows this 
notice.

Damon Smith,
General Counsel.

Appendix

Listing of Waivers of Regulatory Requirements Granted by Offices of the 
Department of Housing and Urban Development April 1, 2021 Through June 
30, 2021

    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

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 91.105(b)(4), (c)(2), and (k); 24 
CFR 91.115(b)(4), (c)(2), and (i); and 24 CFR 91.401.
    Project/Activity: Any HUD Community Planning and Development 
(CPD) grantee in the preparation of their FY 2021 Consolidated Plan 
or Annual Action Plan and FY 2021 Plan substantial amendments, 
through August 16, 2021.
    Nature of Requirement: The regulations at 24 CFR 91.105(b)(4), 
(c)(2) and (k); 24 CFR 91.115(b)(4), (c)(2), and (i); and 24 CFR 
91.401 require a 30-day public comment period in the development of 
a consolidated plan and prior to the implementation of a substantial 
amendment.
    Granted By: James Arthur Jemison II, Principal Deputy Assistant 
Secretary for Community Planning and Development.
    Date Granted: May 12, 2021.
    Reason Waived: There was an error in the announced FY 2021 CDBG 
formula allocations, causing all CDBG grants, except Insular Area 
grants, to be less than what should have been allocated by formula. 
This error was corrected, and updated CDBG FY 2021 allocations were 
posted and transmitted to grantees. To expedite grantees' ability to 
incorporate the increase in funding caused by the FY 2021 allocation 
error, HUD waived the regulations at 24 CFR 91.105(b)(4), (c)(2) and 
(k); 24 CFR 91.115(b)(4), (c)(2), and (i); and 24 CFR 91.401 and 
reduced the public comment period for grantees preparing FY 2021 
plans and amendments from 30 days to no less than three days.
    Contact: James E. H[ouml]emann, Director, Entitlement 
Communities Division, Office of Community Planning and Development, 
Department of Housing and Urban Development, 451 Seventh Street SW, 
Room 7282, Washington, DC 20410, telephone (202) 402-5716.
     Regulation: 24 CFR 92.252(d)(1) Utility Allowance 
Requirements.
    Project/Activity: The New Hampshire Housing Finance Agency 
requested a waiver of 24 CFR 92.252(d)(1) to allow use of the 
utility allowance established by the local public housing agency 
(PHA) for three HOME-assisted projects--Arthur H. Nickless Jr. 
Housing for the Elderly, Conway Pines II, and Friars Court I.
    Nature of Requirement: The regulation at 24 CFR 92.252(d)(1) 
requires participating jurisdictions (PJs) 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 for which HOME funds were committed on or after 
August 23, 2013.
    Granted By: James Arthur Jemison II, Principal Deputy Assistant 
Secretary for Community Planning and Development.
    Date Granted: April 15, 2021.
    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 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

[[Page 66576]]

Community Planning and Development, Department of Housing and Urban 
Development, 451 Seventh Street SW, Room 7160, Washington, DC 20410, 
telephone (202) 402-4606.
     Regulation: 24 CFR 92.252(d)(1) Utility Allowance 
Requirements,
    Project/Activity: The Cities of Los Angeles and Salinas and Los 
Angeles County, California requested a waiver of 24 CFR 92.252(d)(1) 
to allow use of the utility allowance established by the local 
public housing agency (PHA) for three HOME-assisted projects--
Haciendas Phase III, Firestone Phoenix, and Winnetka Senior 
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 for 
which HOME funds were committed on or after August 23, 2013.
    Granted By: James Arthur Jemison II, Principal Deputy Assistant 
Secretary for Community Planning and Development.
    Date Granted: April 30, 2021.
    Reason Waived: The HOME requirements for establishing 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 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 Planning and Development, 
Department of Housing and Urban Development, 451 Seventh Street SW, 
Room 7160, Washington, DC 20410, telephone (202) 402-4606.
     Regulation: 24 CFR 92.252(d)(1) Utility Allowance 
Requirements.
    Project/Activity: The State of California, San Luis Obispo 
County, and the City of Irvine California requested a waiver of 24 
CFR 92.252(d)(1) to allow use of the utility allowance established 
by the local public housing agency (PHA) for three HOME-assisted 
projects--Sango Court, Oak Park 3, and Salemo 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 for 
which HOME funds were committed on or after August 23, 2013.
    Granted By: James Arthur Jemison II, Principal Deputy Assistant 
Secretary for Community Planning and Development.
    Date Granted: June 1, 2021.
    Reason Waived: The HOME requirements for establishing 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 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, U.S. Department of Housing and Urban Development, 
451 Seventh Street SW, Room 7160, Washington, DC 20410, telephone 
(202) 402-4606.
     Regulation: 24 CFR 92.500(d)(2)(i)(C) Program 
Expenditure Deadline.
    Project/Activity: The City of Baton Rouge, Louisiana requested a 
waiver of 24 CFR 92.500(d)(2)(i)(C) to waive the requirement to 
expend its annual allocation of HOME funds within five years for 
Fiscal Year (FY) 2014.
    Nature of Requirement: The regulation at 24 CFR 
92.500(d)(2)(i)(C) requires participating jurisdictions to expend 
its annual allocation of HOME funds within five years after HUD 
notifies the PJ that it has executed the jurisdiction's HOME 
Investment Partnerships Agreement. Any HOME funds unexpended by the 
PJ's five-year expenditure deadline are required to be deobligated 
by HUD.
    Granted By: James Arthur Jemison II, Principal Deputy Assistant 
Secretary for Community Planning and Development.
    Date Granted: April 20, 2021.
    Reason Waived: On August 14, 2016, President Barack Obama issued 
a major disaster declaration for the State of Louisiana as the 
result of severe storms and flooding. Construction timelines 
increased due to the number and severity of damaged housing stock. 
The Department has determined that a waiver of the City's FY 2014 
HOME expenditure requirement is justified based on the construction 
delays caused by the severe storms and flooding.
    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) 402-4606.
     Regulation: 24 CFR 92.2, 24 CFR 93.2, 24 CFR 
92.504(d)(1)(i), and 24 CFR 93.404(d)(1) Project Completion and 
Inspection Requirements.
    Project/Activity: The Minnesota Housing Finance Agency (MHFA) 
requested waivers of 24 CFR 92.2, 24 CFR 93.2, 24 CFR 
92.504(d)(1)(i), and 24 CFR 93.404(d)(1) to waive the HOME Program 
and Housing Trust Fund regulations defining ``project completion'' 
at 24 CFR 92.2 and 93.2 and requiring onsite inspections at project 
completion at 24 CFR 92.504(d)(1)(i) and 93.404(d)(1) for three 
projects--White Oaks Estates (HOME and HTF), Dublin Apartments 
(HOME), and Park 7 Apartments (HTF).
    Nature of Requirement: The regulations at 24 CFR 92.2 and 92.3 
require that the project meet the HOME or HTF property standards 
requirements, as applicable, to meet the definition of ``project 
completion.'' In addition, the regulation at 24 CFR 92.504(d)(1)(i) 
requires participating jurisdictions to inspect each HOME-assisted 
project at project completion to determine that the project meets 
the property standards of 24 CFR 92.251. The regulation at 24 CFR 
93.404(d)(1) requires that HTF grantees perform onsite inspections 
of each HTF-assisted project at project completion to determine that 
the housing meets the property standards of 24 CFR 93.301.
    Granted By: James Arthur Jemison II, Principal Deputy Assistant 
Secretary for Community Planning and Development.
    Date Granted: June 9, 2021.
    Reason Waived: The MHFA Commissioner issued an order on December 
9, 2020, suspending all site visits involving physical inspections 
by MHFA staff within any part of occupied properties. The 
Commissioner's order responded to the COVID-19 pandemic and 
implemented Governor Tim Walz's Emergency Executive Order 20-99, 
which required work from home whenever possible and strongly 
discouraged any business or personal travel. In its waiver request, 
MHFA indicated it will conduct the delayed onsite inspections within 
90 days of the resumption of staff ability to complete onsite 
inspections.
    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) 402-4606.
     Regulations: 24 CFR 574.310(b)(2).
    Project/Activity: Property Standards for HOPWA.
    Nature of Requirement: This section of the HOPWA regulations 
provides minimum housing quality standards that apply to all housing 
for which HOPWA funds are used for acquisition, rehabilitation, 
conversion, lease, or repair; new construction of single room 
occupancy dwellings and community residences; project or tenant-
based rental assistance; or operating costs under 24 CFR 
574.300(b)(3), (4), (5), or (8).
    Granted By: James A. Jemison, Principal Deputy Assistant 
Secretary for Community Planning and Development.
    Date Granted: June 30, 2021.
    Reason Waived: On March 31, 2020 HUD waived the physical 
inspection requirement for tenant-based rental assistance at 24 CFR 
574.310(b) for one year. On May 22, 2020 HUD waived the physical 
inspection requirement for acquisition, rehabilitation, conversion, 
lease, or repair; new construction of single room occupancy 
dwellings and community residences; project or tenant-based rental 
assistance; or operating costs for one year. On March 31, 2021, HUD 
again waived this requirement for all applicable housing types until 
June 30, 2021. HUD determined that while many social distancing 
measures that were making it difficult to conduct unit inspections 
are being lifted, it continues to be important to move people 
quickly into their own housing to enable social distancing and 
prevent the spread of COVID-19. Additionally, HUD recognized that 
grantees and project sponsors needed time to prepare staff to 
physically inspect units for HQS. Therefore, HUD extended the waiver 
until September 30, 2021.

[[Page 66577]]

    Applicability: This waiver is in effect until September 30, 2021 
for grantees and project sponsors that can meet the following 
criteria:
    1. The grantee or project sponsor can visually inspect the unit 
using technology, such as video streaming, to ensure the unit meets 
HQS before any assistance is provided; and
    2. The grantee or project sponsor has written policies to 
physically reinspect the units not previously physically inspected 
by December 31, 2021.
    Contact: Amy Palilonis, Office of HIV/AIDS Housing, Office of 
Community Planning and Development, Department of Housing and Urban 
Development, 451 Seventh Street SW, Room 7248, Washington, DC 20410, 
telephone (202) 402-5916. [email protected].
     Regulations: 24 CFR 574.320(a)(2).
    Project/Activity: FMR Rent Standard for HOPWA Rental Assistance.
    Nature of Requirement: Grantees must establish rent standards 
for their rental assistance programs based on FMR (Fair Market Rent) 
or the HUD-approved community-wide exception rent for unit size.
    Granted By: James A. Jemison, Principal Deputy Assistant 
Secretary for Community Planning and Development.
    Date Granted: June 30, 2021.
    Reason Waived: HUD originally waived the FMR rent standard 
requirement for tenant-based rental assistance for one year on March 
31, 2020. On May 22, 2020 HUD waived this requirement for one year 
for all rental assistance types. On March 31, 2021, HUD again waived 
this requirement for all rental assistance types until June 30, 
2021. HUD determined that extending this waiver of the FMR rent 
standard limit, while still requiring that the unit be rent 
reasonable in accordance with Sec.  574.320(a)(3), will assist 
grantees and project sponsors in locating additional units to house 
low-income people living with HIV in tight rental markets and reduce 
the spread and harm of COVID-19.
    Applicability: The FMR requirement continues to be waived until 
December 31, 2021. Grantees and project sponsors must still ensure 
the reasonableness of rent charged for a unit in accordance with 
Sec.  574.320(a)(3).
    Contact: Amy Palilonis, Office of HIV/AIDS Housing, Office of 
Community Planning and Development, Department of Housing and Urban 
Development, 451 Seventh Street SW, Room 7248, Washington, DC 20410, 
telephone (202) 402-5916. [email protected].
     Regulations: 24 CFR 574.330(a)(1).
    Project/Activity: Time Limits for Short-Term Supported Housing.
    Nature of Requirement: A short-term supported housing facility 
may not provide residence to any individual for more than 60 days 
during any six-month period. Short-Term Rent, Mortgage, and Utility 
(STRMU) payments to prevent the homelessness of the tenant or 
mortgagor of a dwelling may not be provided for costs accruing over 
a period of more than 21 weeks in any 52-week period.
    Granted By: James A. Jemison, Principal Deputy Assistant 
Secretary for Community Planning and Development.
    Date Granted: June 30, 2021.
    Reason Waived: HUD originally waived this requirement on May 22, 
2020 to prevent homelessness or discharge to unstable housing 
situations for households residing in short-term housing facilities 
or units assisted with STRMU if permanent housing could not be 
achieved within the time limits specified in the regulation. HUD 
again waived this requirement on March 31, 2021 until June 30, 2021. 
Because grantees and project sponsors continue to report that 
households require longer periods of assistance due to financial and 
health-related hardships stemming from the COVID-19 pandemic, HUD 
Extended this waiver until December 31, 2021, to help prevent 
households from becoming homeless due to the economic impacts of 
COVID-19.
    Applicability: This waiver is made available for all HOPWA 
grants except those covered by Notice CPD-20-05, which provides 
special flexibility as authorized by the CARES Act for grants funded 
under the CARES Act and for the portion of a grantee's FY 2020 
formula funds that have been approved under its Annual Action Plan 
(AAP) for allowable activities to prevent, prepare for, and respond 
to the COVID-19 pandemic as described in section V. of Notice CPD-
20-05.
    On an individual household basis, grantees or project sponsors 
may assist eligible households for a period that exceeds the time 
limits specified in the regulations. A short-term supported housing 
facility may provide residence to any individual for a period of up 
to 120 days in a six-month period. STRMU payments to prevent the 
homelessness of the tenant or mortgagor of a dwelling may be 
provided for costs accruing up to 52 weeks in a 52-week period.
    This waiver is in effect until December 31, 2021 for grantees 
and project sponsors that can meet the following criteria:
    1. The grantee or project sponsor documents that a good faith 
effort has been made on an individual household basis to assist the 
household to achieve permanent housing within the time limits 
specified in the regulations but that financial needs and/or health 
and safety concerns have prevented the household from doing so; and
    2. The grantee or project sponsor has written policies and 
procedures outlining efforts to regularly reassess the needs of 
assisted households as well as processes for granting extensions 
based on documented financial needs and/or health and safety 
concerns.
    Contact: Amy Palilonis, Office of HIV/AIDS Housing, Office of 
Community Planning and Development, Department of Housing and Urban 
Development, 451 Seventh Street SW, Room 7248, Washington, DC 20410, 
telephone (202) 402-5916. [email protected].
     Regulations: 24 CFR 574.530.
    Project/Activity: Source Documentation for Income and HIV Status 
Determinations.
    Nature of Requirement: Each grantee must maintain records to 
document compliance with HOPWA requirements, which includes 
determining the eligibility of a family to receive HOPWA assistance.
    Granted By: James A. Jemison, Principal Deputy Assistant 
Secretary for Community Planning and Development.
    Date Granted: June 30, 2021.
    Reason Waived: HUD originally waived the requirement for source 
documentation of income and HIV status on March 31, 2020 for 
grantees that require written certification of the household seeking 
assistance of their HIV status and income, and agree to obtain 
source documentation of HIV status and income eligibility within 3 
months of public health officials determining no additional special 
measures are necessary to prevent the spread of COVID-19. HUD 
recognized that while public health measures were lifting in many 
areas of the country, grantees were reporting that obtaining 
documentation still takes longer than usual because of reduced 
staffing and hours of agencies and providers that can provide the 
documentation during COVID-19. Additionally, HUD recognized that 
grantees needed time to prepare staff and to re-adjust policies and 
procedures to obtain source income of HIV status and income. 
Therefore, HUD is continuing this waiver flexibility and is 
establishing an end date of September 30, 2021.
    Applicability: This waiver is in effect for grantees who require 
written certification of the household seeking assistance of their 
HIV status and income and agree to obtain source documentation of 
HIV status and income eligibility by September 30, 2021.
    Contact: Amy Palilonis, Office of HIV/AIDS Housing, Office of 
Community Planning and Development, Department of Housing and Urban 
Development, 451 Seventh Street SW, Room 7248, Washington, DC 20410, 
telephone (202) 402-5916. [email protected].
     Regulation: 24 CFR 578.103(a)(7)(iv).
    Project/Activity: 24 CFR 578.103(a)(7) requires the recipient or 
subrecipient to keep records of the program participant's income and 
the back-up documentation they relied on to determine income. The 
regulation establishes an order of preference for the type of 
documentation that recipients can rely upon. Only if source 
documents and third-party verification are unobtainable is a written 
certification from the program participant acceptable documentation 
of income. HUD is waiving ``To the extent that source documents and 
third-party verification are unobtainable'' in 578.103(a)(7)(iv).
    Nature of Requirement: Where a program participant pays rent or 
an occupancy charge in accordance with 24 CFR 578.77, 24 CFR 
578.103(a)(7) requires recipients and subrecipients to keep on file 
an income evaluation form specified by HUD along with one of the 
following types of back-up documentation: (1) Source documents for 
the assets held by the program participant and income received 
before the date of the evaluation; (2) to the extent that source 
documents are unobtainable, a written statement by the relevant 
third party or the written certification of the recipient's or 
subrecipient's intake staff of the relevant third party's oral 
verification of the income the program participant received over the 
most recent period; or (3) to the extent that source documents and 
third-party verification are unobtainable, the program participant's 
own written certification of income that the program participant is

[[Page 66578]]

reasonably expected to receive over the 3-month period following the 
evaluation.
    Granted By: James A. Jemison, Principal Deputy Assistant 
Secretary for Community Planning and Development.
    Date Granted: June 30, 2021.
    Reason Waived: On September 30, 2020, HUD waived the requirement 
to attempt to document that third-party verification of income was 
unobtainable in order for recipients and subrecipients to permit a 
program participant's own self-certification of income until 
December 31, 2020 because that documentation may be difficult to 
obtain as a result of COVID-19 pandemic and housing program 
participants quickly was important to prevent the spread of COVID-
19. On December 30, 2020, HUD extended this waiver to March 31, 
2021. On March 31, 2021, HUD extended this waiver to June 30, 2021. 
It continues to be important to move people into their own housing 
quickly to enable social distancing and prevent the spread of COVID-
19. Additionally, recipients need time to prepare staff and to re-
adjust policies and procedures to obtain third-party documentation 
of income as a first order of priority. Therefore, HUD is waiving 
the requirement that source documents and third-party documentation 
be unobtainable in order for recipients or subrecipients to rely on 
a program participant's own certification of their income.
    Contact: Norm Suchar, Director, Office of Special Needs 
Assistance Programs, Office of Community Planning and Development, 
Department of Housing and Urban Development, 451 Seventh Street SW, 
Room 7262, Washington, DC 20410, telephone number (202) 708-4300.
     Regulation: 24 CFR 576.403(c).
    Project/Activity: HUD granted a waiver of 24 CFR 576.403(c) in 
Notice CPD-21-05: Waiver and Alternative Requirements for the 
Emergency Solutions Grants (ESG) Program Under the CARES Act (April 
14, 2021). HUD waived 24 CFR 576.403(c) for recipients who choose to 
serve individuals and families made eligible for RRH assistance in 
Section III.1 of CPD Notice 21-05 to the extent necessary to permit 
the ESG recipient or subrecipient to provide rental assistance and 
housing relocation and stabilization services without first 
inspecting the unit so long as:
    a. The recipient or subrecipient maintains documentation showing 
the prior rental assistance provider determined that the housing 
meets: i. The habitability standards established at 24 CFR 
576.403(c); or ii. Housing Quality Standards (HQS) established at 24 
CFR 982.401; or
    b. The recipient or subrecipient provides no more than 90 days 
of RRH assistance to the program participant; or
    c. The recipient or subrecipient conducts an inspection within 
the first 90 days and determines the housing meets the habitability 
standards established at 24 CFR 576.403(c) or the HQS established at 
24 CFR 982.401.
    Nature of Requirement: Recipients or subrecipients cannot use 
ESG funds to help program participants remain in or move into 
housing that does not meet minimum habitability standards provided 
at 24 CFR 576.403(c).
    Granted By: James A. Jemison, Principal Deputy Assistant 
Secretary for Community Planning and Development.
    Date Granted: April 14, 2021.
    Reason Waived: The habitability standards established at 24 CFR 
576.403(c) are meant to ensure that program participants are 
residing in housing that is safe and sanitary. Accepting the housing 
inspection reports of previous rental assistance providers as 
evidence and allowing up to 90 days to conduct initial inspections 
to determine the housing is safe and sanitary will allow recipients 
and subrecipients to provide rental assistance and housing 
relocation and stabilization services to households that qualify for 
RRH 6 assistance in Section III.1 of CPD Notice 21-05 without a gap 
between their prior assistance and ESG funded RRH assistance while 
still ensuring their housing is safe and sanitary. This will help 
maintain positive relationships with landlords while helping program 
participants maintain housing during the public health crisis and 
subsequent economic downturn. This will reduce the spread and harm 
of COVID-19 by enabling affected households to continue to socially 
distance, isolate, or quarantine in their housing.
    Contact: Norm Suchar, Director, Office of Special Needs 
Assistance Programs, Office of Community Planning and Development, 
Department of Housing and Urban Development, 451 Seventh Street SW, 
Room 7262, Washington, DC 20410, telephone number (202) 708-4300.
     Regulation: 24 CFR 578.75(b)(1).
    Project/Activity: This waiver of the requirement in 24 CFR 
578.75(b)(1) that the recipient or subrecipient physically inspect 
each unit to assure that the unit meets HQS before providing 
assistance on behalf of a program participant is in effect until 
September 30, 2021 for recipients and subrecipients that are able to 
meet the following criteria:
    a. The owner certifies that they have no reasonable basis to 
have knowledge that life-threatening conditions exist in the unit or 
units in question; and
    b. The recipient or subrecipient has written policies to 
physically inspect the units not previously physically inspected by 
December 31, 2021.
    Nature of Requirement: Recipients are required to physically 
inspect any unit supported with leasing or rental assistance funds 
to assure that the unit meets the housing quality standards (HQS) 
before any assistance will be provided on behalf of a program 
participant.
    Granted By: James A. Jemison, Principal Deputy Assistant 
Secretary for Community Planning and Development.
    Date Granted: June 30, 2021.
    Reason Waived: On March 31, 2020, HUD waived the physical 
inspection requirement at 24 CFR 578.75(b)(1) for 6-months so long 
as recipients or subrecipients were able to visually inspect the 
unit using technology to ensure the unit met HQS before any 
assistance was provided and recipients or subrecipients had written 
policies in place to physically reinspect the unit within 3 months 
after the health officials determined special measures to prevent 
the spread of COVID-19 are no longer necessary. On September 30, 
2020, HUD waived the physical inspection requirement at 24 CFR 
578.75(b)(1) until December 31, 2020, which HUD then extended until 
March 31, 2021, so long as recipients and subrecipients could meet 
certain criteria outlined in the waiver. HUD again extended the 
waiver on March 31, 2021 until June 30, 2021, so long as recipients 
and subrecipients could meet the criteria outlined in the waiver. It 
continues to be important to move people quickly into their own 
housing to enable social distancing and prevent the spread of COVID-
19. Additionally, recipients need time to prepare staff to inspect 
(and re-inspect as discussed below) units for HQS. Therefore, HUD is 
waiving the initial inspection requirement at 24 CFR 578.75(b)(1) as 
further specified below to allow recipients to move people from the 
streets and shelters into housing more quickly, which enables social 
distancing, and helps prevent the spread of COVID-19.
    Contact: Norm Suchar, Director, Office of Special Needs 
Assistance Programs, Office of Community Planning and Development, 
Department of Housing and Urban Development, 451 Seventh Street SW, 
Room 7262, Washington, DC 20410, telephone number (202) 708-4300.
     Regulation: 24 CFR 578.75(c) and 24 CFR 
982.401(d)(2)(ii) as required by 24 CFR 578.75(b).
    Project/Activity: The requirement that each unit assisted with 
CoC Program funds or YHDP funds have at least one bedroom or living/
sleeping room for each two persons is waived for recipients 
providing Permanent Housing-Rapid Re-housing assistance for leases 
and occupancy agreements executed by recipients and subrecipients 
between the date of HUD's memorandum and December 31, 2021. Assisted 
units with leases of occupancy agreements signed during the waiver 
period may have more than two persons for each bedroom or living/
sleeping room until the later of (1) the end of the initial term of 
the lease or occupancy agreement; or (2) December 31, 2021. As a 
reminder, recipients are still required to follow State and local 
occupancy laws.
    Nature of Requirement: 24 CFR 578.75(c), suitable dwelling size, 
and 24 CFR 982.401(d)(2)(ii) as required by 24 CFR 578.75(b), 
Housing Quality Standards, requires units funded with CoC Program 
funds to have at least one bedroom or living/sleeping room for each 
two persons.
    Granted By: James A. Jemison, Principal Deputy Assistant 
Secretary for Community Planning and Development.
    Date Granted: June 30, 2021.
    Reason Waived: On September 30, 2020, HUD waived the 
requirements at 24 CFR 982.401(d)(2)(ii) and 24 CFR 578.75(c) to 
allow households experiencing homelessness to obtain permanent 
housing that is affordable and that they assess is adequate. HUD 
extended these flexibilities on December 30, 2020 to the later of 
(1) the end of the initial term of the lease or occupancy agreement; 
or (2) March 31, 2021. HUD again extended these flexibilities on 
March 31, 2021, to the later of (1) the end of the initial term of 
the lease or occupancy agreement; or

[[Page 66579]]

(2) June 30, 2021. Recipients continue to report that households 
experiencing homelessness remain unable to afford the limited supply 
of affordable housing in many jurisdictions across the country and 
this has been made even more challenging due to the economic impact 
of COVID-19. HUD is waiving the requirements at 24 CFR 
982.401(d)(2)(ii) and 24 CFR 578.75(c) as further specified below to 
reduce the spread of COVID-19 by allowing households to move into 
housing instead of staying in congregate shelter. Consistent with 
the Executive Order on Fighting the Spread of COVID-19 by Providing 
Assistance to Renters and Homeowners, grantees should balance use of 
this waiver with the recommendations of public health officials to 
limit community spread and reduce risks to high-risk populations. 
For example, a large unit with rooms than can be partitioned for 
privacy and distancing, or the waiver can be applied for units that 
will house only one family household.
    Contact: Norm Suchar, Director, Office of Special Needs 
Assistance Programs, Office of Community Planning and Development, 
Department of Housing and Urban Development, 451 Seventh Street SW, 
Room 7262, Washington, DC 20410, telephone number (202) 708-4300.
     Regulation: 24 CFR 578.33(c).
    Project/Activity: The requirement that the renewal grant amount 
be based on the budget line items in the final year of the grant 
being renewed is further waived for all projects that amend their 
grant agreements to move funds between budget line items in a 
project in response to the COVID-19 pandemic between the date of 
HUD's memorandum and December 31, 2021. Recipients may then apply in 
the next FY CoC Program funding cycle based on the budget line items 
in the grants before they were amended.
    Nature of Requirement: 24 CFR 578.33(c) requires that budget 
line item amounts a recipient is awarded for renewal in the CoC 
Program Competition will be based on the amounts in the final year 
of the prior funding period of the project.
    Granted By: James A. Jemison, Principal Deputy Assistant 
Secretary for Community Planning and Development.
    Date Granted: June 30, 2021
    Reason Waived: HUD originally waived this requirement for grant 
agreement amendments signed between March 31, 2020 and October 1, 
2020 to allow recipients to move funds between budget line items in 
a project in response to the COVID-19 pandemic and still apply for 
renewal in the next FY CoC Program funding cycle based on the budget 
line items in the grants before they were amended. HUD again waived 
this requirement for all grant agreements signed from October 1, 
2020 until December 31, 2020. HUD again waived this requirement for 
all grants signed between December 30, 2020 and March 31, 2021. HUD 
again waived this requirement for all grant agreements signed from 
March 31, 2021 until June 30, 2021. Recipients continue to report 
needing to shift budget line items to respond to the COVID-19 
pandemic (e.g., providing different supportive services necessitated 
by the pandemic and the economic impacts created by the pandemic or 
serving fewer people because the layout of the housing does not meet 
local social distancing recommendations) without changing the 
original design of the project when it is not operating in a public 
health crisis and can resume normal operations.
    Contact: Norm Suchar, Director, Office of Special Needs 
Assistance Programs, Office of Community Planning and Development, 
Department of Housing and Urban Development, 451 Seventh Street SW, 
Room 7262, Washington, DC 20410, telephone number (202) 708-4300.
     Regulation: 24 CFR 578.37(a)(1)(ii)(F).
    Project/Activity: The requirement in 24 CFR 578.37(a)(1)(ii)(F) 
that projects require program participants to meet with case 
managers not less than once per month is waived for all permanent 
housing- rapid re-housing projects until September 30, 2021.
    Nature of Requirement: The CoC Program interim rule at 24 CFR 
578.37(a)(1)(ii)(F) requires program participants to meet with a 
case manager not less than once per month to assist them in ensuring 
long-term housing stability. The project is exempt from this 
requirement already if the Violence Against Women Act of 1994 or 
Family Violence Prevention and Services Act prohibits the recipient 
carrying out the project from making its shelter or housing 
conditional on the participant's acceptance of services.
    Granted By: James A. Jemison, Principal Deputy Assistant 
Secretary for Community Planning and Development.
    Date Granted: June 30, 2021.
    Reason Waived: HUD originally waived this requirement for 2-
months on March 31, 2020. On May 22, 2020 HUD again waived this 
requirement for an additional 3 months and on September 30, 2020 HUD 
once again waived this requirement until December 31, 2020. On 
December 30, 2020, HUD again waived this requirement until March 31, 
2021. On March 31, 2021, HUD again waived this requirement until 
June 30, 2021. While many social distancing measures that were 
making it difficult to conduct the monthly case management are being 
lifted, recipients need time to prepare staff to provide monthly 
case management in accordance with the regulatory requirement. 
Waiving the monthly case management requirement as specified below 
will allow recipients time to shift back to providing case 
management on a monthly basis instead of on an as-needed basis.
    Contact: Norm Suchar, Director, Office of Special Needs 
Assistance Programs, Office of Community Planning and Development, 
Department of Housing and Urban Development, 451 Seventh Street SW, 
Room 7262, Washington, DC 20410, telephone number (202) 708-4300.
     Regulation: 24 CFR 578.49(b)(2).
    Project/Activity: The CoC Program regulation at 24 CFR 
578.49(b)(2) prohibits a recipient from using grant funds for 
leasing to pay above FMR when leasing individual units, even if the 
rent is reasonable when compared to other similar, unassisted units.
    Nature of Requirement: The FMR restriction continues to be 
waived for any lease executed by a recipient or subrecipient to 
provide transitional or permanent supportive housing until December 
31, 2021. The affected recipient or subrecipient must still ensure 
that rent paid for individual units that are leased with leasing 
dollars meet the rent reasonableness standard in 24 CFR 
578.49(b)(2).
    Granted By: James A. Jemison, Principal Deputy Assistant 
Secretary for Community Planning and Development.
    Date Granted: June 30, 2021.
    Reason Waived: HUD originally waived this requirement for 6-
months on March 31, 2020. On September 30, 2020 HUD again waived 
this requirement until December 31, 2020. On December 30, 2020, HUD 
again waived this requirement until March 31, 2021. On March 31, 
2021, HUD again waived this requirement until June 30, 2021. 
Extending this waiver of the limit on using grant leasing funds to 
pay above FMR for individual units, but not greater than reasonable 
rent, will assist recipients in locating additional units to house 
individuals and families experiencing homelessness in tight rental 
markets and reduce the spread and harm of COVID-19.
    Contact: Norm Suchar, Director, Office of Special Needs 
Assistance Programs, Office of Community Planning and Development, 
Department of Housing and Urban Development, 451 Seventh Street SW, 
Room 7262, Washington, DC 20410, telephone number (202) 708-4300.
     Regulation: 24 CFR 578.3, definition of permanent 
housing, 24 CFR 578.51(l)(1).
    Project/Activity: The one-year lease requirement is waived for 
leases executed between the date of HUD's memorandum and December 
31, 2021, so long as the initial term of all leases is at least one 
month.
    Nature of Requirement: The CoC Program regulation at 24 CFR 
578.3, definition of permanent housing, and 24 CFR 578.51(l)(1) 
requires program participants residing in permanent housing to be 
the tenant on a lease for a term of one year that is renewable and 
terminable for cause.
    Granted By: James A. Jemison, Principal Deputy Assistant 
Secretary for Community Planning and Development.
    Date Granted: June 30, 2021.
    Reason Waived: HUD originally waived this requirement for 6-
months on March 31, 2020, again until December 31, 2020 on September 
30, 2020, again until March 31, 2021 on December 30, 2020, and again 
on March 31, 2021 until June 30, 2021 to help recipients more 
quickly identify permanent housing for individuals and families 
experiencing homelessness, which is helpful in preventing the spread 
of COVID-19. Extending this waiver is necessary because recipients 
report challenges in identifying housing for program participants in 
tight rental markets due to the economic impact of COVID-19. 
Additionally, helping program participants move into housing quickly 
will continue to decrease the risk of people experiencing 
homelessness of contracting COVID-19 even after special measures are 
no longer necessary to prevent the spread of COVID-19.
    Contact: Norm Suchar, Director, Office of Special Needs 
Assistance Programs, Office of Community Planning and Development, 
Department of Housing and Urban Development, 451 Seventh Street SW, 
Room

[[Page 66580]]

7262, Washington, DC 20410, telephone number (202) 708-4300.
     Regulation: 24 CFR 578.53(e)(8)(ii)(B) and 578.53(d).
    Project/Activity: The limitation on eligible housing search and 
counseling activities is waived so that CoC Program funds may be 
used for up to 6 months of a program participant's utility arrears 
and up to 6 months of a program participant's rent arrears, when 
those arrears make it difficult to obtain housing. This waiver is in 
effect until December 31, 2021.
    Nature of Requirement: 24 CFR 578.53(e)(8) allows recipients and 
subrecipients to use CoC funds to pay for housing search and 
counseling services to help eligible program participants locate, 
obtain, and retain suitable housing. For program participants whose 
debt problems make it difficult to obtain housing, 24 CFR 
578.53(e)(8)(ii)(B) makes eligible the costs of credit counseling, 
accessing a free personal credit report, and resolving personal 
credit issues. However, payment of rental or utility arrears is not 
included as an eligible cost. 24 CFR 578.53(d) limits eligible 
supportive service costs to those explicitly listed in 24 CFR 
578.53(e), which is a more limited list than is eligible under the 
McKinney-Vento Act.
    Granted By: James A. Jemison, Principal Deputy Assistant 
Secretary for Community Planning and Development.
    Date Granted: June 30, 2021.
    Reason Waived: HUD originally waived this requirement for 1-year 
on March 31, 2020 and, on March 31, 2021 extended the waiver until 
June 30, 2021, to allow recipients and subrecipients to pay up to 6 
months of rental arrears and 6 months of utility arrears to remove 
barriers to obtaining housing quickly and help reduce the spread and 
harm of COVID-19. Extending this waiver is necessary to remove 
barriers that would prevent program participants from finding 
housing quickly, particularly as more people find themselves with 
rental arrears due to COVID-19.
    Contact: Norm Suchar, Director, Office of Special Needs 
Assistance Programs, Office of Community Planning and Development, 
Department of Housing and Urban Development, 451 Seventh Street SW, 
Room 7262, Washington, DC 20410, telephone number (202) 708-4300.
     Regulation: 24 CFR 578.75(b)(2).
    Project/Activity: HUD originally waived the requirement for 1-
year on March 31, 2020 to help recipients and subrecipients prevent 
the spread of COVID-19. On March 31, 2021, HUD extended the waiver 
until June 30, 2021. The requirement at 24 CFR 578.75(b)(2) is 
waived until September 30, 2021.
    Nature of Requirement: 24 CFR 578.75(b)(2) requires that 
recipients or subrecipients are required to inspect all units 
supported by leasing or rental assistance funding under the CoC and 
YHDP Programs at least annually during the grant period to ensure 
the units continue to meet HQS.
    Granted By: James A. Jemison, Principal Deputy Assistant 
Secretary for Community Planning and Development.
    Date Granted: June 30, 2021.
    Reason Waived: While many social distancing measures that were 
making it difficult to re-inspect a unit for HQS are being lifted, 
recipients need time to prepare staff to re-inspect (and inspect as 
discussed above) units for HQS. Therefore, HUD is extending the 
waiver as described below.
    Contact: Norm Suchar, Director, Office of Special Needs 
Assistance Programs, Office of Community Planning and Development, 
Department of Housing and Urban Development, 451 Seventh Street SW, 
Room 7262, Washington, DC 20410, telephone number (202) 708-4300.
     Regulation: 24 CFR 578.3, definition of ``homeless'' 
(1)(iii).
    Project/Activity: An individual may qualify as homeless under 
paragraph (1)(iii) of the ``homeless'' definition in 24 CFR 578.3 so 
long as he or she is exiting an institution where they resided for 
120 days or less and resided in an emergency shelter or place not 
meant for human habitation immediately before entering that 
institution. This waiver is in effect until December 31, 2021.
    Nature of Requirement: An individual who is exiting an 
institution where he or she resided for 90 days or less and who 
resided in an emergency shelter or place not meant for human 
habitation immediately before entering that institution are 
considered homeless per 24 CFR 578.3, definition of ``homeless.''
    Granted By: James A. Jemison, Principal Deputy Assistant 
Secretary for Community Planning and Development.
    Date Granted: June 30, 2021.
    Reason Waived: HUD originally waived this requirement on 
September 30, 2020, until March 31, 2021 to keep housing options 
open for individuals who otherwise would have been homeless but were 
reporting longer stays in institutions as a result of COVID-19 
(e.g., longer time in jail due to a postponed court dates due to 
courts closings or courts operating at reduced capacity and longer 
hospital stays when infected with COVID-19). HUD again waived this 
requirement on March 31, 2021 until June 30, 2021. Allowing someone 
who was residing in an emergency shelter or place not meant for 
human habitation prior to entering the institution to maintain their 
homeless status while residing in an institution for longer than 90 
days is necessary to prevent the spread of and respond to COVID-19 
by expanding housing options for people who were experiencing 
homelessness and institutionalized for longer than traditionally 
required due to COVID-19. Recipients continue to report potential 
program participants are staying in institutions for longer periods 
of time due to COVID-19; therefore, HUD is extending this waiver to 
allow someone who was residing in an emergency shelter or place not 
meant for human habitation prior to entering the institution to 
maintain their homeless status while residing in an institution for 
longer than 90 days.
    Contact: Norm Suchar, Director, Office of Special Needs 
Assistance Programs, Office of Community Planning and Development, 
Department of Housing and Urban Development, 451 Seventh Street SW, 
Room 7262, Washington, DC 20410, telephone number (202) 708-4300.
     Regulation: 24 CFR 578.37(a)(1)(ii), 24 CFR 
578.37(a)(1)(ii)(C), and 24 CFR 578.51(a)(1)(i).
    Project/Activity: The 24-month rental assistance restriction is 
waived for program participants in permanent housing rapid re-
housing project who will have reached 24 months of rental assistance 
until December 31, 2021. Program participants who have reached 24 
months of rental assistance during this time and who will not be 
able to afford their rent without additional rental assistance will 
be eligible to receive rental assistance until December 31, 2021.
    Nature of Requirement: The CoC Program regulation at 24 CFR 
578.37(a)(1)(ii) and 24 CFR 578.51(a)(1)(i) defines medium-term 
rental assistance as 3 to 24 months and 24 CFR 578.37(a)(1)(ii) and 
24 CFR 578.37(a)(1)(ii)(C) limits rental assistance in rapid re-
housing projects to medium-term rental assistance, or no more than 
24 months.
    Granted By: James A. Jemison, Principal Deputy Assistant 
Secretary for Community Planning and Development.
    Date Granted: June 30, 2021.
    Reason Waived: HUD originally waived this requirement on May 22, 
2020 until 3 months after a state or local public health official 
has determined special measures are no longer necessary to prevent 
the spread of COVID-19. Recipients continue to report program 
participants are experiencing difficulty affording rent even after 
receiving 24 months of rental assistance. Therefore, HUD is 
continuing to offer this waiver flexibility, but is establishing an 
end date of December 31, 2021. Waiving the limit on using rental 
assistance in rapid re-housing projects to pay more than 24 months 
will ensure that individuals and families currently receiving rapid 
re-housing assistance do not lose their assistance, and consequently 
their housing, during the COVID-19 public health crisis and the 
subsequent economic downturn This will reduce the number of people 
who become homeless again due to the economic impact of COVID-19.
    Contact: Norm Suchar, Director, Office of Special Needs 
Assistance Programs, Office of Community Planning and Development, 
Department of Housing and Urban Development, 451 Seventh Street SW, 
Room 7262, Washington, DC 20410, telephone number (202) 708-4300.
     Regulation: 24 CFR 578.103(a) and 24 CFR 
578.103(a)(4)(i)(B).
    Project/Activity: 24 CFR 578.103(a) requires recipient to 
maintain records providing evidence they met program requirements 
and 24 CFR 578.103(a)(4)(i)(B) establishes the requirements for 
documenting disability for individuals and families that meet the 
``chronically homeless'' definition in 24 CFR 578.3. Acceptable 
evidence of disability includes intake-staff recorded observations 
of disability no later than 45 days from the date of application for 
assistance, which is confirmed and accompanied by evidence in 
paragraphs 24 CFR 578.103(a)(4)(i)(B)(1), (2), (3), or (5). HUD is 
waiving the requirement to obtain additional evidence to confirm 
staff-recorded observations of disability.
    Nature of Requirement: A recipient providing PSH must serve 
individuals and

[[Page 66581]]

families where one member of the household has a qualifying 
disability (for dedicated projects and DedicatedPLUS projects that 
individual must be the head of household). Further, the recipient 
must document a qualifying disability of one of the household 
members. When documentation of disability is the intake worker's 
observation, the regulation requires the recipient to obtain 
additional confirming evidence within 45 days.
    Granted By: James A. Jemison, Principal Deputy Assistant 
Secretary for Community Planning and Development.
    Date Granted: June 30, 2021.
    Reason Waived: On March 31, 2020 HUD waived the requirement to 
obtain additional evidence within 45 days and instead allowed 
recipients up to 6-months from the date of application for 
assistance to confirm intake staff-recorded observations of 
disability with other evidence because recipients were reporting 
difficulty obtaining third-party documentation of disability in the 
middle of a pandemic, impacting their ability to house potential 
program participants quickly. On September 30, 2020, HUD waived, in 
its entirety, the requirement to obtain additional evidence to 
verify intake staff-recorded observations of disability until public 
health officials determine no additional special measures are 
necessary to prevent the spread of COVID-19. While public health 
measures are lifting in many areas of the country, recipients are 
reporting that obtaining documentation still takes longer than usual 
as a result of reduced staffing and hours of agencies and providers 
that can provide the documentation during COVID-19. Therefore, HUD 
is continuing this waiver flexibility and is establishing an end 
date of December 31, 2021.
    Contact: Norm Suchar, Director, Office of Special Needs 
Assistance Programs, Office of Community Planning and Development, 
Department of Housing and Urban Development, 451 Seventh Street SW 
Room 7262, Washington, DC 20410, telephone number (202) 708-4300.
     Regulation: Section 415(a)(4) and (5) of the 
McKinney-Vento Homeless Assistance Act and 24 CFR 576.104.
    Project/Activity: HUD granted a waiver of Section 415(a)(4) and 
(5) of the McKinney-Vento Homeless Assistance Act and 24 CFR 576.104 
in Notice CPD-21-05: Waiver and Alternative Requirements for the 
Emergency Solutions Grants (ESG) Program Under the CARES Act (April 
14, 2021). HUD established alternative requirements and waived 
Section 415(a)(4) and (5) of the McKinney-Vento Homeless Assistance 
Act and 24 CFR 576.104 to the extent necessary to provide that:
    a. In addition to individuals and families who meet the existing 
requirements in 24 CFR 576.104, a recipient may expand the scope of 
eligible RRH beneficiaries to include individuals and families who 
meet ALL of the following criteria:
    i. Qualified as ``homeless'' as defined in 24 CFR 576.2 
immediately before moving into their current housing;
    ii. Have been residing in housing with time-limited rental 
assistance provided under a homeless assistance program (which means 
assistance limited to or reserved, either federally or locally, for 
people who are ``homeless'' as defined in 24 CFR 576.2) other than 
the ESG program (e.g., time-limited rental assistance that was 
funded under the Supportive Services for Veteran Families Program or 
the Coronavirus Relief Fund and provided only to people who 
qualified as ``homeless'' as defined in 24 CFR 576.2);
    iii. Would not have any overlap in rental assistance between the 
non-ESG program and the ESG program, due to exhaustion or expiration 
of the non-ESG assistance or program funds;
    iv. Would not have a gap of more than one month (or equivalent 
amount of days) between the end of the non-ESG rental assistance and 
the beginning of their ESG RRH rental assistance; and
    v. Do not have the resources or support networks (beyond an 
eviction moratorium) (e.g., family, friends or other social 
networks) needed to retain their existing housing without ESG 
assistance;
    b. Recipients that expand the scope of RRH beneficiaries as 
provided above must amend their consolidated plans as provided by 24 
CFR 91.505 and 576.200(b), except that the recipient is not required 
to comply with any consultation or citizen participation 
requirements (as provided by the CARES Act), provided that the 
recipient publishes its plan to include these newly eligible RRH 
beneficiaries, at a minimum, on the internet at the appropriate 
Government website or through other electronic media.
    c. If individual or family meets the new RRH criteria above but 
is already an ESG RRH program participant (because they have been 
receiving services under 24 CFR 576.105), the individual or family 
may be provided ESG-funded rental assistance without being treated 
as a new applicant or program participant for purposes of HUD's 
coordinated assessment, written standards, HMIS, initial evaluation, 
re-evaluation, housing stability plan, and recordkeeping and 
reporting requirements (24 CFR 576.400(d), (e), (f); 576.401(a), 
(b), (e)(1)(ii), and 576.500). However, with respect to any other 
individuals and families for which the recipient exercises the new 
flexibilities provided in CPD Notice 21-05, the recipient must 
account for the new RRH beneficiaries by making corresponding 
changes as appropriate to the applicable written standards for 
administering RRH assistance (including beneficiary eligibility and 
prioritization criteria), HMIS, and procedures for centralized or 
coordinated assessment, initial evaluation, re-evaluation, and 
recordkeeping and reporting.
    Nature of Requirement: An individual or family must meet the 
criteria under paragraph (1) of the definition of ``homeless'' at 24 
CFR 576.2 or meet the criteria under paragraph (4) of the 
``homeless'' definition and live in an emergency shelter or other 
place described in paragraph (1) of the ``homeless'' definition to 
be eligible for rapid re-housing assistance.
    Granted By: James A. Jemison, Principal Deputy Assistant 
Secretary for Community Planning and Development.
    Date Granted: April 14, 2021.
    Reason Waived: Many individuals and families experiencing 
homelessness are able to be housed with time-limited rental 
assistance funded by homelessness assistance resources other than 
ESG. In some cases, despite the efforts of local service providers, 
some households continue to be unable to afford housing at the end 
of the assistance period and would lose their housing without 
continued assistance. Waiving the eligibility criteria for ESG 
funded RRH as discussed above will ensure individuals and families 
currently receiving time-limited rental assistance funded through 
other sources will not lose their housing during the coronavirus 
public health crisis and the subsequent economic downturn. This will 
reduce the spread and harm of coronavirus by enabling households 
receiving homelessness assistance who had previously experienced 
homelessness to continue to practice social distancing, isolate, or 
quarantine in their housing.
    Contact: Norm Suchar, Director, Office of Special Needs 
Assistance Programs, Office of Community Planning and Development, 
Department of Housing and Urban Development, 451 Seventh Street SW, 
Room 7262, Washington, DC 20410, telephone number (202) 708-4300.

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 214.300(a)(3).
    Project/Activity: HUD's In-Person Service Housing Counseling 
Program.
    Nature of Requirement: Pursuant to 24 CFR 214.300(a)(3), 
``[c]ounseling may take place in the office of the housing 
counseling agency, at an alternate location, or by telephone, as 
long as mutually acceptable to the housing counselor and client. All 
agencies participating in HUD's Housing Counseling program that 
provide services directly to clients must provide in-person 
counseling to clients that prefer this format.''
    On February 24, 2021, the President continued the COVID-19 
national emergency. HUD recognizes that there continues to be a 
demand for housing counseling services by clients facing financial 
hardship due to the spread of the COVID-19 virus. This partial 
waiver allows participating agencies to provide continuous services 
without violating the in-person service provision requirement of 24 
CFR 214.300(a)(3). This partial waiver waives the 24 CFR 
214.300(a)(3) requirement that ``. . . All agencies participating in 
HUD's Housing Counseling program that provide services directly to 
clients must provide in-person counseling to clients that prefer 
this format.''
    Granted by: Lopa P. Kolluri, Principal Assistant Secretary for 
Housing Federal Housing Commissioner.
    Date Granted: April 20, 2021.
    Reason Waived: To assist in ensuring the continued availability 
of housing counseling services, a partial waiver of 24 CFR 
214.300(a)(3).
    Contact: Brian Siebenlist, Director, Housing Counseling, Office 
of Policy and

[[Page 66582]]

Grant Administration, Office of Housing, Department of Housing and 
Urban Development, 409 3rd Street SW, Washington, DC 20024, 
telephone (202) 402-5145.
     Regulation: 24 CFR 242.58(b)(ii), 24 CFR 
242.58(b)(iv), 24 CFR 242.58(f), 24 CFR 242.61(a)-(d).
    Project/Activity: HCA-Memorial Health Meadows Hospital, Vidalia, 
Georgia.
    Nature of Requirements: 24 CFR 242.58(b)(ii) states that, with 
regard to financial reporting requirements for hospitals with FHA-
insured loans, quarterly unaudited financial reports must be filed 
with HUD within 40 days following the end of each quarter of the 
Borrower's fiscal year.
    24 CFR 242.58(b)(iv) states that, with regard to financial 
reporting requirements for hospitals with FHA-insured loans, board-
certified annual financial results must be filed with HUD within 120 
days following the close of the fiscal year (if the annual audited 
financial statements have not yet been filed with HUD). 24 CFR 
242.58(f) requires that the books and records of management agents, 
lessees, operators, managers, and Affiliates be maintained in 
accordance with Generally Accepted Accounting Principles (GAAP) and 
shall be open to inspection by HUD. 24 CFR 242.61(a) through (d) 
give HUD the authority to approve contracts for executive management 
of the hospital, and to remove principals of the hospital (including 
executives, board members, and key employees).
    Granted By: Lopa P. Kolluri, Principal Assistant Secretary for 
Housing Federal Housing Commissioner.
    Date Granted: April 22, 2021.
    Reason Waived: HCA Healthcare applied for a Transfer of Physical 
Assets (TPA) to take ownership of Toombs County Hospital Authority 
(TCHA) and Meadows Regional Medical Center and replace the current 
Borrower on the Note (TCHA) with newly created HUD Borrowers 
(Vidalia Health Services, LLC and Meadows Multispecialty Associates, 
LLC). As part of the TPA application, HCA Healthcare is requesting 
waivers of numerous standard requirements within OHF's Hospital 
Regulatory Agreement. The requirements ordinarily provide OHF with 
the data and authority to manage the asset when it is part of HUD's 
portfolio. While waiving the requirements will prevent OHF from 
executing our standard asset management procedures, we determined 
that the hospital will benefit significantly from HCA ownership, and 
that the waiver is fully justified.
    Contact: Paul Giaudrone, Underwriting Director, Office of 
Hospital Facilities, Office of Healthcare Programs, Office of 
Housing, Department of Housing and Urban Development, 409 3rd Street 
SW, Washington, DC 20024, telephone (202) 402-5684.
     Regulation: 24 CFR 3282.14(b), Alternative 
construction of manufactured homes.
    Project/Activity: Regulatory Waiver for Industry-Wide 
Alternative Construction Letter for Swinging Exterior Passage Doors.
    Nature of Requirement: 24 CFR 3282.14(b), Request for 
Alternative Construction, requires manufactured housing 
manufacturers to submit a request for Alternative Construction 
consideration for the use of construction designs or techniques that 
do not conform with HUD Standards, to receive permission from HUD to 
utilize such designs or techniques in the manufacturing process for 
manufactured homes.
    Granted by: Lopa P. Kolluri, Principal Deputy Assistant 
Secretary for Housing--Federal Housing Administration.
    Date Granted: March 29, 2021.
    Reason Waived: Many manufactured home manufacturers are 
currently facing shortages in the supply of swinging exterior 
passage doors that are listed or specifically certified for use in 
manufactured homes due to COVID-19 pandemic impacts. The major 
supply line of certified swinging exterior passage doors cannot meet 
the current and near-term future demands of the manufactured housing 
industry, yet alternative door options are available that provide 
performance equivalent or superior to that required by the Standards 
yet cannot be utilized without an Alternative Construction approval. 
To resolve this matter for the whole industry in an expedient manner 
while protecting the health and safety of consumers and maintaining 
durability of the homes, this regulatory waiver was granted to allow 
the Office of Manufactured Housing Programs to provide an industry-
wide Alternative Construction approval letter that could be used by 
any manufacturer experiencing supply chain issues for swinging 
exterior passage doors.
    Contact: Teresa B. Payne, Administrator, Office of Manufactured 
Housing Programs, Office of Housing, Department of Housing and Urban 
Development, 451 7th Street SW, Room 9168, Washington, DC 20410-
0800, telephone (202) 402-5365, [email protected].

[FR Doc. 2021-25566 Filed 11-22-21; 8:45 am]
BILLING CODE 4210-67-P