[Federal Register Volume 59, Number 94 (Tuesday, May 17, 1994)]
[Unknown Section]
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From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-11899]
[[Page Unknown]]
[Federal Register: May 17, 1994]
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Office of the Secretary
[Docket No. N-94-3038; FR-2736-N-12]
Regulatory Waiver Requests Granted
AGENCY: Office of the Secretary, HUD.
ACTION: Public Notice of the Granting of Regulatory Waivers.
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SUMMARY: Under section 106 of the Department of Housing and Urban
Development Reform Act of 1989 (Reform Act), the Department is required
to make public all approval actions taken on waivers of regulations.
This Notice provides notification of waivers granted during the period
from October 1 to December 31, 1993.
FOR FURTHER INFORMATION CONTACT: For general information about this
Notice, contact Myra L. Ransick, Assistant General Counsel for
Regulations, Room 10276, Department of Housing and Urban Development,
451 Seventh Street, SW, Washington, DC 20410; (202) 708-3055, (TDD)
(202) 708-3259. (These are not toll-free numbers.) For information
concerning a particular waiver action, contact the person whose name
and address is set out for the particular item in the accompanying list
of waiver-grant actions.
SUPPLEMENTARY INFORMATION: Section 106 of the Reform Act amended
Section 7 of the Department of Housing and Urban Development Act (42
U.S.C. 3535(q)(3)) to provide:
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 rank 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 the Department 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;
e. State how additional information about a particular waiver grant
action may be obtained.
Today's document notifies the public of HUD's waiver-grant activity
from October 1 to December 30, 1993. The next Notice, which will be
published in the near future, will cover the period from January 1,
through March 31, 1994.
For ease of reference, waiver requests granted by departmental
officials authorized to grant waivers are listed in a sequence keyed to
the section number of the HUD regulation involved in the waiver action.
For example, a waiver-grant action involving exercise of authority
under 24 CFR 24.200 (involving the waiver of a provision in part 24)
would come early in the sequence, while waivers in the Section 8 and
Section 202 programs (24 CFR chapter VIII) would be among the last
matters listed. 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 in Title 24 that
is being waived as part of the waiver-grant action. (For example, a
waiver of both Sec. 811.105(b) and Sec. 811.107(a) would appear
sequentially in the listing under Sec. 811.105(b).) Waiver-grant
actions involving the same initial regulatory citation are in time
sequence beginning with the earliest-dated waiver-grant action.
Should the Department received additional reports of waiver actions
taken during the period covered by this report before the next report
is published, the next updated report will include these earlier
actions.
Accordingly, information about approved waiver requests pertaining
to regulations of the Department is provided in the Appendix to this
Notice.
Dated: May 6, 1994.
Henry G. Cisneros,
Secretary.
Appendix--Listing of Waivers of Regulatory Requirements Granted by
Officers of the Department of Housing and Urban Development October 1,
1993 Through December 31, 1993
Note to the Reader: The person to be contacted for additional
information about these waivers is:
Robert J. Coyle, Director, Title I Insurance Division, Department of
Housing and Urban Development, 490 L'Enfant Plaza East, Suite 3214,
Washington, DC 20024, Telephone 202-755-7400
1. Regulation: 24 CFR 201.23(a).
Project/Activity: Title I manufactured home loan to provide
replacement housing for victims of the flooding along the
Mississippi River.
Nature of Requirement: Section 201.23(a) of the Title I
regulations permits manufactured home purchasers to use borrowed
funds for the downpayment, provided that the loan is secured by
property or collateral other than the manufactured home.
Granted By: Nicolas P. Retsinas, Assistant Secretary of Housing-
Federal Housing Commissioner.
Date Granted: October 1, 1993.
Reason Waived: As a result of flooding along the Mississippi
River and its tributaries, the borrowers' manufactured home was
destroyed. The Federal Emergency Management Agency certified the
borrowers as being eligible for an unsecured Small Business
Administration loan. The proceeds of the SBA loan were used to pay
off the outstanding loan on their manufactured home, and left enough
money to make a downpayment on a new manufactured home, to be
financed with a Title I loan. Because of the urgent need to assist
families displaced by the Mississippi River flooding, HUD agreed to
waive the limitation on using an unsecured loan for the downpayment.
2. Regulation: 24 CFR 201.23(a).
Project/Activity: Title I manufactured home loan to provide
replacement housing for victims of the flooding along the
Mississippi River.
Nature of Requirement: Section 201.23(a) of the Title I
regulations permits manufactured home purchasers to use borrowed
funds for the downpayment, provided that the loan is secured by
property or collateral other than the manufactured home.
Granted By: Nicolas P. Retsinas, Assistant Secretary of Housing-
Federal Housing Commissioner.
Date Granted: November 12, 1993.
Reason Waived: As a result of flooding along the Mississippi
River and its tributaries, the borrowers' manufactured home was
destroyed. The Federal Emergency Management Agency certified the
borrowers as being eligible for an unsecured Small Business
Administration loan. The proceeds of the SBA loan were used to pay
off the outstanding loan on their manufactured home, and left enough
money to make a downpayment on a new manufactured home, to be
financed with a Title I loan. Because of the urgent need to assist
families displaced by the Mississippi River flooding, HUD agreed to
waive the limitation on using an unsecured loan for the downpayment.
Note to Reader: The person to be contacted for additional
information about these waivers is:
Morris E. Carter, Director, Single Family Development Division,
Office of Insured Single Family Housing, U.S. Department of Housing
and Urban Development, 451 Seventh Street, SW., Washington, DC
20410, Phone: (202) 708-2700, TDD: (202) 708-4594.
3-4. Regulation: 24 CFR 203.49(c).
Project/Activity: CTX Mortgage Company and Adjustable Rate
Mortgages.
Nature of Requirement: The regulation, cited above, requires
that interest rate adjustments must occur on an annual basis, except
that the first adjustment may occur no sooner than 12 months and no
later than 18 months from the due date of the mortgagor's first
monthly payment.
Granted By: Nicolas P. Retsinas, Assistant Secretary for
Housing--Federal Housing Commissioner.
Date Granted: December 9, 1993.
Reason Waived: CTX Mortgage Company requested a waiver in order
to extend the initial adjustment date on one loan in order to make
it eligible for placement in a GNMA pool. Ineligibility for the pool
would result in a financial hardship to the mortgagee. Extension of
the date would not have an adverse effect on the mortgagor.
Therefore, to facilitate the continuing participation of this
mortgagee in the FHA Adjustable Rate Mortgage Program, a waiver was
granted conditioned on the mortgagee obtaining written consent from
the mortgagors to the modification of the initial adjustment date.
Note to Reader: The person to be contacted for additional
information about these waivers is:
Janice D. Rattley, Director, Office of Construction, Rehabilitation
and Maintenance, Office of Public and Indian Housing, Department of
Housing and Urban Development, 451 Seventh Street, SW., Washington
DC 20410, Phone: (202) 708-1800 (This is not a toll-free number)
5. Regulation: 24 CFR 941.404, 502, and 503.
Project/Activity: Public Housing Development, Project Number VA
7-28, Richmond Redevelopment and Housing Authority (RRDH).
Nature of Requirement: Requires prior HUD review and approval of
design documents, construction contracts, etc.
Granted By: JOseph. Shuldiner, Assistant Secretary for Public
and Indian Housing.
Date Granted: November 4, 1993.
Reason Waived: To allow the RRDH to acquire HUD-owned properties
within 60 days of an offer to purchase requirement of the Housing
Office of Property Disposition.
Note to Reader: The person to be contacted for additional
information about these waivers is:
Mr. Dom Nessi, Director, Office of Nature American Programs,
Department of Housing and Urban Development, 451 Seventh Street,
SW., Washington, DC 20410, Phone: (202) 708-1015, TDD: (202) 708-
0850 (These are not toll-free numbers)
6. Regulation: 24 CFR 905.325.
Project/Activity: Establishment of ceiling rents for the Oneida
Housing Authority.
Nature of the Requirement: Waiver of the Regulation cited above
is required to allow establishment of ceiling rents for their Rental
Program.
Granted By: Joseph Schuldiner, Assistant Secretary.
Date Granted: October 20, 1993.
Reason Waived: This waiver was requested and granted to allow
the Oneida Housing Authority to establish ceiling rents for their
rental program in accordance with PIH Notice 89-21, which provides
for the establishment of ceiling rents in a rental Indian housing
program.
Note to Reader: The person to be contacted for additional
information about these waivers is:
John Comerford, Director, Financial Management Division, Office of
Assisted Housing, Office of Public and Indian Housing, Department of
Housing and Urban Development, 451 Seventh Street, SW., Washington,
DC 20410, Phone: (202) 708-1872, TDD: (202) 708-0850 (These are not
toll-free numbers)
7. Regulation: 24 CFR 990.110.
Project/Activity: Breckenridge Housing Authority, MN In
determining the operating subsidy eligibility, a request was made to
extend the deadline for submission of a request for adjustment to
the Allowable Expense Level.
Nature of Requirement: The Final Rule for PFS Allowable Expense
Level appeals imposed a sixty day deadline on submission of request
for adjustment.
Granted By: Joseph Shuldiner, Assistant Secretary.
Date Granted: October 4, 1993.
Reason Waiver: The Housing Authority Fee Accountant completed
the appeal and mailed it to the Housing Authority, however, the
package was not received by the Housing Authority. This waiver was
granted based on this circumstance and the Housing Agency's
eligibility for an adjustment.
8. Regulation: 24 CFR 990.104.
Project/Activity: Montgomery Housing Authority, AL In
determining the operating subsidy eligibility, a request was made
for funding for six units approved for economic self-sufficiency and
anti-drug programs.
Nature of Requirement: The operating subsidy calculation
excludes funding for units removed from the dwelling rental
inventory.
Granted By: Joseph Shuldiner, Assistant Secretary.
Date Granted: October 7, 1993.
Reason Wavier: To allow additional subsidy for units approved
for non-dwelling use to promote economic self-sufficiency services
and anti-drug programs pending publication of a final rule
implementing this change to the regulation.
9. Regulation: 24 CFR 990.109(b)(3)(iv).
Project/Activity: A request was made by the Breckenridge, MN
Housing and Redevelopment Authority to use its actual occupancy rate
of 76% in determining its operating subsidy eligibility for its
fiscal year ending 3/31/93 and its actual occupancy rate of 70% for
its fiscal year ending 3/31/94.
Nature of Requirement: A Public House Agency that has completed
a Comprehensive Occupancy Plan (COP) without achieving a 97%
occupancy percentage or having an average of five or fewer vacant
units must use a projected occupancy rate of 97%.
Granted By: Joseph Shuldiner, Assistant Secretary.
Date Granted: October 18, 1993.
Reason Waived: The Breckenridge Housing and Redevelopment
Authority is a small Authority with 78 units of elderly housing. It
has been experiencing a vacancy problem for the past several years
during which it has pursued many vacancy reduction strategies
without success. Previous waivers have been issued permitting the
Authority to use a lower occupancy percentage.
10. Regulation: 24 CFR 990.104.
Project/Activity: Marquette Housing Commission, MI In
determining the operating subsidy eligibility, a request was made
for funding for two units approved for economic self-sufficiency and
anti-drug programs.
Nature of Requirement: The operating subsidy calculation
excludes funding for units removed from the dwelling rental
inventory.
Granted By: Joseph Shuldiner, Assistant Secretary.
Date Granted: October 20, 1993.
Reason Waived: To allow additional subsidy for units approved
for non-dwelling use to promote economic self-sufficiency services
and anti-drug programs pending publication of a final rule
implementing this change to the regulation.
11. Regulation: 24 CFR 990.104.
Project/Activity: Richmond Redevelopment and Housing Authority,
MI. In determining the operating subsidy eligibility, a request was
made for authority to approve funding for twenty units approved for
an anti-drug program.
Nature of Requirement: The operating subsidy calculation
excludes funding for units removed from the dwelling rental
inventory.
Granted By: Joseph Shuldiner, Assistant Secretary.
Date Granted: October 22, 1993.
Reason Waived: To allow additional subsidy for units approved
for non-dwelling use to promote economic self-sufficiency services
and anti-drug program pending publication of a final rule
implementing this change to the regulation.
12. Regulation: 24 CFR 990.104.
Project/Activity: Muskegon Heights Housing Authority, MI. In
determining the operating subsidy eligibility, a request was made
for funding for one unit approved for an anti-drug program.
Nature of Requirement: The operating subsidy calculation
excludes funding for units removed from the dwelling rental
inventory.
Granted By: Joseph Shuldiner, Assistant Secretary.
Date Granted: November 17, 1993.
Reason Waived: To allow additional subsidy for units approved
for non-dwelling use to promote economic self-sufficiency services
and anti-drug program pending publication of a final rule
implementing this change to the regulation.
13. Regulation: 24 CFR 990.104.
Project/Activity: Charleston Housing Authority, WV. In
determining the operating subsidy eligibility, a request was made
for funding for eight units approved for an anti-drug program.
Nature of Requirement: The operating subsidy calculation
excludes funding for units removed from the dwelling rental
inventory.
Granted By: Joseph Shuldiner, Assistant Secretary.
Date Granted: November 24, 1993.
Reason Waived: To allow additional subsidy for units approved
for non-dwelling use to promote economic self-sufficiency services
and anti-drug program pending publication of a final rule
implementing this change to the regulation.
14. Regulation: 24 CFR 990.118(d).
Project/Activity: Cuyahoga Metropolitan Housing Authority, OH.
In determining operating subsidy eligibility, a request was made to
terminate the existing Comprehensive Occupancy Plan as of December
31, 1992.
Nature of Requirement: The regulation cites limited conditions
under which the timeframe for a Comprehensive Occupancy Plan can be
changed.
Granted By: Joseph Shuldiner, Assistant Secretary.
Date Granted: December 7, 1993.
Reason Waived: The Housing Authority's thirteen year
Comprehensive Occupancy Plan (COP) was the longest term of any COP
for a Housing Authority. The relative inflexibility of the COP has
caused the Plan to become obsolete over time. Recognition has not
been given to changes in modernization schedules, to new funding
approaches such as the Comprehensive Grant formula and to new
programs such as the Urban Revitalization Demonstration and Vacancy
Reduction Programs. The Authority would be better off without a COP
because it could then use an occupancy rate based on 97% reduced by
the number of units that are in a funded, on-schedule modernization
program. Since it is very difficult for a large, troubled authority
to adhere to a long term plan with fixed occupancy goals, approval
was granted to terminate the COP and use an occupancy percentage
adjusted for units in funded, on-schedule modernization programs.
15. Regulation: 24 CFR 990.109(b)(3)(iv).
Project/Activity: A request was made by the Gilbert, MN Housing
and Redevelopment Authority to use its actual occupancy rate of 88%
in determining its operating subsidy eligibility for its fiscal year
ending 6/30/94.
Nature of Requirement: A Housing Authority that has completed a
Comprehensive Occupancy Plan (COP) without achieving a 97% occupancy
percentage or having an average of five or fewer vacant units must
use a projected occupancy rate of 97%.
Granted By: Joseph Shuldiner, Assistant Secretary.
Date Granted: December 17, 1993.
Reason Waived: The Gilbert Housing and Redevelopment Authority
is a small Authority with 49 units. It has been experiencing a
vacancy problem for the past several years during which it has
pursued many vacancy reduction strategies without success. Previous
waivers have been issued permitting the Authority to use a lower
occupancy percentage.
16. Regulation: 24 CFR 990.109(b)(3)(iv).
Project/Activity: Indianapolis Housing Authority, IN. In
determining operating subsidy eligibility, a request was made to
allow a team comprised of Headquarters, Regional and Field Office
staff to consult with the Housing Authority in order to develop a
suitable approach to the vacancy problems of the Housing Authority.
Nature of Requirement: The regulation requires a Low Occupancy
PHA without an approved Comprehensive Occupancy Plan (COP) to use a
projected occupancy percentage of 97%.
Granted By: Joseph Shuldiner, Assistant Secretary.
Date Granted: December 20, 1993.
Reason Waived: The Department has found that large troubled
Housing Authorities often have vacancy problems of such a magnitude
and complexity that long term planning is very difficult. COPs for
such authorities quickly become obsolete. Agreement was reached on
an alternative approach to a COP in which the Housing Authority uses
a lower occupancy percentage and at least 60% of the resulting
increase in operating subsidy is to be used for specific,
identifiable actions to increase occupancy. The Housing Authority is
responsible for developing a vacancy reduction strategy which will
be approved by HUD. HUD will also conduct an on-site review in
November 1994 to review progress. Based on this agreement an
occupancy percentage of 73% was approved for the fiscal year ending
12/31/93 and 75% for the fiscal year ending 12/31/94.
17. Regulation: 24 CFR 990.104.
Project/Activity: York Housing Authority, PA. In determining the
operating subsidy eligibility, a request was made for funding for
one unit approved for an anti-drug program.
Nature of Requirement: The operating subsidy calculation
excludes funding for units removed from the dwelling rental
inventory.
Granted By: Joseph Shuldiner, Assistant Secretary.
Date Granted: December 22, 1993.
Reason Waived: To allow additional subsidy for units approved
for non-dwelling use to promote economic self-sufficiency services
and anti-drug programs pending publication of a final rule
implementing this change to the regulation.
18. Regulation: 24 CFR 990.104.
Project/Activity: Arkadelphia Housing Authority, AR. In
determining the operating subsidy eligibility, a request was made
for funding for one unit approved for an anti-drug program.
Nature of Requirement: The operating subsidy calculation
excludes funding for units removed from the dwelling rental
inventory.
Granted By: Joseph Shuldiner, Assistant Secretary.
Date Granted: December 22, 1993.
Reason Waived: To allow additional subsidy for units approved
for non-dwelling use to promote economic self-sufficiency services
and anti-drug programs pending publication of a final rule
implementing this change to the regulation.
19. Regulation: 24 CFR 990.104.
Project/Activity: Texarkana Housing Authority, AR. In
determining the operating subsidy eligibility, a request was made
for funding for one unit approved for an anti-drug program.
Nature of Requirement: The operating subsidy calculation
excludes funding for units removed from the dwelling rental
inventory.
Granted By: Joseph Shuldiner, Assistant Secretary.
Date Granted: December 28, 1993.
Reason Waived: To allow additional subsidy for units approved
for non-dwelling use to promote economic self-sufficiency services
and anti-drug programs pending publication of a final rule
implementing this change to the regulation.
20. Regulation: 24 CFR 990.104.
Project/Activity: Fort Worth Housing Authority, TX. In
determining the operating subsidy eligibility, a request was made
for funding for one unit approved for anti-drug programs.
Nature of Requirement: The operating subsidy calculation
excludes funding for units removed from the dwelling rental
inventory.
Granted By: Joseph Shuldiner, Assistant Secretary.
Date Granted: December 28, 1993.
Reason Waived: To allow additional subsidy for units approved
for non-dwelling use to promote economic self-sufficiency services
and anti-drug programs pending publication of a final rule
implementing this change to the regulation.
Note to Reader: The person to be contacted for additional
information about these waivers is:
Gary Van Buskirk, Director, Homeownership Division, Office of
Resident Initiatives, Department of Housing and Urban Development,
451 Seventh Street, SW., Room 4112, Washington, DC 20410, Phone:
(202) 708-4233 (This is not a toll-free number)
21. Regulation: 24 CFR 904 Subpart B (Turnkey III Homeownership
Opportunity Program) and Corresponding Provisions of the Turnkey III
Handbook (7495.3).
Project/Activity: Dayton, Ohio Metropolitan Housing Authority,
Turnkey III Homeownership Opportunity Programs Projects OH5-22, 5-
25, 5-27, 5-29, 5-30A, 5-30B, and 5-33.
Nature of Requirement: 24 CFR 904 Subpart B and the Turnkey III
Handbook require that upon sale of a homeownership unit that the
monies received be remitted to HUD to reduce the capital
indebtedness on the project. Excess Residual Receipts and or
Operating Reserves are also to be remitted to HUD.
Granted By: Joseph Shuldiner, Assistant Secretary for Public and
Indian Housing.
Date Granted: October 20, 1993.
Reason Waived: Project debt forgiveness was authorized by the
provisions of Section 3004 of the Housing and Community Development
Reconciliation. Amendments of 1985, (the Amendments) P.L. 99-272
(April 7, 1986) which amends Section 4 of the United States Housing
Act of 1937. The Amendments authorized the Secretary of HUD to
forgive outstanding principal and interest on loans made by the
Secretary to Public Housing Agencies (PHAs)/Indian Housing
Authorities (IHAs) and to cancel the terms of any contract with
respect to repayment.
Turnkey III debt forgiveness, as authorized above, is
implemented according to existing HUD procedures.
The housing authority has shown good cause and demonstrated
compliance with all applicable regulatory requirements for debt
forgiveness.
22. Regulation: 24 CFR 904 Subpart B (Turnkey III Homeownership
Opportunity Program) and Corresponding Provisions of the Turnkey III
Handbook (7495.3).
Project/Activity: Gilbert, Minnesota Housing and Redevelopment
Authority, Turnkey III Homeownership Opportunity Programs Project MN
117001.
Nature of Requirement: 24 CFR 904 Subpart B and the Turnkey III
Handbook require that upon sale of a homeownership unit that the
monies received be remitted to HUD to reduce the capital
indebtedness on the project. Excess Residual Receipts and or
Operating Reserves are also to be remitted to HUD.
Granted By: Joseph Shuldiner, Assistant Secretary for Public and
Indian Housing.
Date Granted: October 20, 1993.
Reason Waived: Project debt forgiveness was authorized by the
provisions of Section 3004 of the Housing and Community Development
Reconciliation Amendments of 1985, (the Amendments) P.L. 99-272
(April 7, 1986) which amends Section 4 of the United States Housing
Act of 1937. The Amendments authorized the Secretary of HUD to
forgive outstanding principal and interest on loans made by the
Secretary to Public Housing Agencies (PHAs)/Indian Housing
Authorities (IHAs) and to cancel the terms of any contract with
respect to repayment.
Turnkey III debt forgiveness, as authorized above, is
implemented according to existing HUD procedures.
The housing authority has shown good cause and demonstrated
compliance with all applicable regulatory requirements for debt
forgiveness.
23. Regulation: 24 CFR 904 Subpart B (Turnkey III Homeownership
Opportunity Program) and Corresponding Provisions of the Turnkey III
Handbook (7495.3).
Project/Activity: Saint Paul, Minnesota Public Housing Agency,
Turnkey III Homeownership Opportunity Programs Projects MN 01-21 and
MN 01-25.
Nature of Requirement: 24 CFR 904 Subpart B and the Turnkey III
Handbook require that upon sale of a homeownership unit that the
monies received be remitted to HUD to reduce the capital
indebtedness on the project. Excess Residual Receipts and or
Operating Reserves are also to be remitted to HUD.
Granted By: Joseph Shuldiner, Assistant Secretary for Public and
Indian Housing.
Date Granted: October 20, 1993.
Reason Waived: Project debt forgiveness was authorized by the
provisions of Section 3004 of the Housing and Community Development
Reconciliation Amendments of 1985, (the Amendments) P.L. 99-272
(April 7, 1986) which amends Section 4 of the United States Housing
Act of 1937. The Amendments authorized the Secretary of HUD to
forgive outstanding principal and interest on loans made by the
Secretary to Public Housing Agencies (PHAs)/Indian Housing
Authorities (IHAs) and to cancel the terms of any contract with
respect to repayment.
Turnkey III debt forgiveness, as authorized above, is
implemented according to existing HUD procedures.
The housing authority has shown good cause and demonstrated
compliance with all applicable regulatory requirements for debt
forgiveness.
Note to Reader: The person to be contacted for additional
information about these waivers is:
Anthony P. DeVito, Field Coordination Officer, Department of Housing
and Urban Development, Officer of Community Planning and
Development, 451 7th Street, SW., Washington, DC 20410-7000,
Telephone: (202) 708-2565 (This is not a toll-free number)
24. Regulation: 24 CFR 291.400.
Project/Activity: Anoka County, Minneapolis requested a waiver
of the disposition rules for HUD-acquired one-to four-family
properties which restrict occupancy by a homeless lessee in
transition to a maximum of 24 months.
Nature of Requirement: The purpose of the program described in
24 CFR 291.400 is to assist individuals and families who are
homeless by providing them with transitional housing. Use of HUD-
acquired properties by lessees must be with the understanding that
the housing provided under this program is transitional and the
occupants are expected to seek and obtain permanent housing
resources within two years.
Granted By: Jacquie M. Lawing, Deputy Assistant Secretary for
Economic Development.
Date Granted: June 11, 1993.
Reasons Waived: The waiver was granted for good cause to
facilitate a planned move of a tenant from transitional to permanent
housing. An extension of 12 months was granted to allow time for
implementation of the permanent housing plan, with a review at the
six months point to ensure the permanent housing plan was on track.
25. Regulation: 24 CFR 92.218(a).
Project/Activity: City of Los Angeles request for waiver of
matching funds contribution for the HOME Program due to a local
disaster.
Nature of Requirement: Section 220(d)(5) of the Cranston-
Gonzalez National Affordable Housing Act was added by Section 210(c)
of the Housing and Community Development Act of 1992. Section
220(d)(5) authorizes the Secretary to reduce a participating
jurisdiction's matching requirement for the HOME Program by up to
100 percent for a fiscal year if the jurisdiction is in an area in
which a declaration of a disaster pursuant to the Robert T. Stafford
Disaster Relief and Emergency Assistance Act (the Stafford Act) is
in effect for any part of the fiscal year.
Granted By: Mark C. Gordon, Deputy Assistant Secretary for
Operations.
Date Granted: June 30, 1993.
Reasons Waived: The Department previously responded to the
waiver request in a January 19, 1993, letter to Mayor Bradley and
indicated that the requested waiver could not be granted until the
Department had issued regulations implementing the provision. An
interim rule for the HOME Program, which included this provision,
was published June 23, 1993; this rule became effective July 23,
1993. The Department has a copy of former President Bush's
declaration under the Stafford Act that a major disaster exists in
the City of Los Angeles and Los Angeles County.
Pursuant to the authority at 24 CFR 92.3 and 92.222(b), there is
good cause to grant the requested waiver of 24 CFR 92.218(a) and to
reduce the matching requirement for the City of Los Angeles,
California's HOME Program by 100 percent for Fiscal Years 1993 and
1994.
26. Regulation: 24 CFR 570.303(f).
Project/Activity: Saginaw, Michigan requested a waiver to permit
the City to change the period to meet the primary objective of the
CDBG program to benefit low and moderate income persons.
Nature of Requirement: 24 CFR 570.303(f) requires each grantee
to expend at least 70 percent of its CDBG funds for activities that
benefit low- and moderate-income persons. To comply with this
requirement, 24 CFR 570.303(f) provides that each CDBG grantee must
certify that it will achieve the primary objective during a period
of one, two or three consecutive program years. Each grantee is
permitted to identify the period it will use for this purpose.
Granted By: Andrew Cuomo, Assistant Secretary for Community
Planning and Development.
Date Granted: July 8, 1993.
Reasons Waived: The City of Saginaw has typically identified a
one-year period during which it will meet the primary objective of
the CDBG program. However, because the City plans to undertake a
large project that will meet the national objective of prevention or
elimination of slums or blight, it has found that it will not be
able to meet the primary objective in a one-year period. Therefore,
it has requested a waiver to extend the period of its certification
to a three-year period beginning with its 1992 program year.
The City has indicated that if its request for a waiver is not
granted, it would have to curtail slum/blight activity to
rehabilitate a parking garage located in the downtown business
district. Use of the garage is now restricted because of its need
for rehabilitation to correct deterioration and corrosion. The City
has indicated that it does not have other resources available to
rehabilitate this structure and failure to complete the
rehabilitation would result in the loss of business (and the jobs
provided by those businesses) if parking is not made available for
business customers. The City requested that a waiver be authorized
to cover its 1992 program year but a waiver cannot be granted
retroactively; therefore, the request was denied.
Clearly the potential loss of businesses and jobs in downtown
Saginaw would constitute an undue hardship and adversely affect the
purposes of the Act. A waiver was granted for the City to amend the
certification required by 24 CFR 570.303(f) in its 1993 final
statement to include its 1993, 1994, and 1995 program years.
27. Regulation: 24 CFR 291.415.
Project/Activity: Phoenix Arizona. Request to waive the 24 month
Maximum Period of Occupant Tenancy in the Single Family Property
Disposition Homeless Initiative for five families in five
properties.
Nature of Requirement: The purpose of the program is to assist
families who are homeless by providing them with transitional
housing. Use of HUD-acquired properties by lessees must be with the
understanding that the housing provided under this program is
transitional and the occupants are expected to seek and obtain
permanent housing resources within two years.
Granted By: Andrew Cuomo, Assistant Secretary for Community
Planning and Development.
Date Granted: August 5, 1993.
Reasons Waived: The need to find stable permanent housing in
Phoenix will require more time, therefore, for good cause a lease
extension was approved for 12 months for four families and 6 months
for one family.
28. Regulation: 24 CFR 92.256.
Project/Activity: Elizabeth, New Jersey request for an waiver of
the HOME Investment Partnership Program (HOME) regulation for a
project located in that city. The cited regulation requires that in
a mixed-use project, at least 51 percent of the project space must
be used for residential purposes.
Nature of Requirement: The requirement that a minimum of 51
percent of the space in mixed-use projects be for residential
purposes was meant to help ensure that the primary HOME Program goal
of creation of affordable housing is met. However, it is also
recognized that there are instances in which it would be appropriate
to allow a project containing a lower percentage to be included.
This is particularly true when the project is a part of a larger
overall plan.
Granted By: Andrew Cuomo, Assistant Secretary for Community
Planning and Development.
Date Granted: August 20, 1993.
Reasons Waived: The project for which the waiver is being sought
is not an isolated project, but one that is located in a
neighborhood revitalization area. This area contains several other,
proximately located, residential projects that are being included in
the revitalization effort. Further, the commercial space in the
subject project is reportedly typical of normal, neighborhood-based
enterprises that would support the economic and residential
viability of the area.
24 CFR 92.3 provides that the Department of Housing and Urban
Development may waive, for good cause, any provision of the
regulation that is not required by the statue. The circumstances
outlined in the request from the City of Elizabeth, New Jersey
constitute good cause. Therefore, the regulation regarding the
minimum residential living space requirement in a mixed-use project
was waived to allow HOME funds to be used in the project located at
17--174 First Street, Elizabeth, New Jersey 07206, which is
comprised of no less than 36 percent residential living space.
29. Regulation: 24 CFR 570.507(a)(2)(A) & 24 CFR 570.5.
Project/Activity: The City of Los Angeles, California, request
for a waiver of the submission deadline for the Community
Development Block Grant Program (CDBG) Grantee Performance Report
(GPR) to allow it to complete conversion to HUD's new automated GPR
system.
Nature of Requirement: The GPR is an important part of HUD's
process of monitoring the CDBG program and of informing the City's
citizens about program performance.
CDBG regulations allow a waiver of any requirement not required
by law whenever it is determined that undue hardship will result
from applying the requirement and where application of the
requirement would adversely affect the purpose of the Housing and
Community Development Act of 1974, as amended.
Granted By: Andrew Cuomo, Assistant Secretary for Community
Planning & Development.
Date Granted: September 3, 1993.
Reasons Waived: The City has cooperated with the Department in
reviewing and deciding to change management practices or
administrative procedures that prevent it from complying with
program requirements. It will clearly be in the best interest of the
City, the Department, and of those served by the CDBG program if, at
the earliest possible time, the City develops the capacity to
produce timely and accurate reports.
For the above reasons, failure to grant a waiver of the
regulation would cause undue hardship and adversely affect the
purposes of the Act. Therefore, the deadline was waived to allow the
City to submit its GPR as late as December 22, 1993.
30. Regulation: 24 CFR 576.55(b)(1).
Project/Activities: Waiver of the Emergency Shelter Grants (ESG)
Program Deadline for the City of St. Louis to Obligate FY 1993 ESG
funds.
Nature of the Requirement: The regulations state that the
formula cities, counties, and territories have 180 days from the
time of grant award by HUD to obligate ESG funds. To meet this
deadline, these grantees, according to the definition of obligation
as stated at 24 CFR 576.3 must have ``placed orders, awarded
contracts, received services, or entered transactions that require
payment from the grant amount.''
Granted By: Andrew Cuomo, Assistant Secretary for Community
Planning and Development.
Date Granted: October 7, 1993.
Reason Waived: The City of St. Louis's FY 1993 ESG funds were
not obligated by the September 1, 1993 deadline due to the City's
Department of Human Services' (DHS) extensive involvement in flood
relief efforts.
The ESG Program regulations at 24 CFR 576.5 provided that the
Secretary may waive any requirement of the regulations that is not
required by law, whenever undue hardship will result from applying
the requirement, or where application of the requirement would
adversely affect the purposes of the program. Due to the City's need
to address the extraordinary consequences of the flood and the need
for flood relief, failure to grant this extension would cause undue
hardship for the city of St. Louis and would adversely affect the
purposes of Title IV of the Stewart B. McKinney Homeless Assistance
Act, since the City of St. Louis would not otherwise receive its ESG
allocation. Therefore, the regulations concerning the 180-day
obligation deadline were waived and the obligation deadline extended
until October 31, 1993.
[FR Doc. 94-11899 Filed 5-16-94; 8:45 am]
BILLING CODE 4210-32-M
