[Federal Register Volume 82, Number 189 (Monday, October 2, 2017)]
[Notices]
[Pages 45877-45881]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-21075]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-6035-N-02]


Notice of Regulatory Waiver Requests Granted for the Second 
Quarter of Calendar Year 2017

AGENCY: Office of the General Counsel, HUD.

ACTION: Notice.

-----------------------------------------------------------------------

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, 2017, and ending on June 30, 2017.

FOR FURTHER INFORMATION CONTACT: For general information about this 
notice, contact Ariel Pereira, Associate General Counsel for 
Legislation and Regulations, Department of Housing and Urban 
Development, 451 7th Street SW., Room 10282, Washington, DC 20410-0500, 
telephone 202-708-1793 (this is not a toll-free number). Persons with 
hearing- or speech-impairments may access this number through TTY by 
calling the toll-free Federal Relay Service at 800-877-8339.
    For information concerning a particular waiver that was granted and 
for which public notice is provided in this document, contact the 
person whose name and address follow the description of the waiver 
granted in the accompanying list of waivers that have been granted in 
the second quarter of calendar year 2017.

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

[[Page 45878]]

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, 2017 through June 30, 2017. 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 2017) before the next report is published (the third 
quarter of calendar year 2017), 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.

    Dated: September 26, 2017.
Beth Zorc,
Principal Deputy General Counsel.

Appendix

Listing of Waivers of Regulatory Requirements Granted by Offices of the 
Department of Housing and Urban Development April 1, 2017 Through June 
30, 2017

    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 Fair Housing and 
Equal Opportunity
III. Regulatory waivers granted by the Office of Housing
V. Regulatory waivers granted by the Office of Public and Indian 
Housing

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

    For further information about the following regulatory waivers, 
please see the name of the contact person that immediately follows 
the description of the waiver granted.
    <bullet> Regulation: 24 CFR 91.105(b)(4) and 24 CFR 
91.115(b)(4).
    Project/Activity: On December 15, 2016, HUD issued CPD Notice 
#CPD-16-18 providing procedures for the submission and review of 
consolidated plans and action plans for FY 2017 funding prior to the 
enactment of a FY 2017 HUD appropriation bill. These procedures 
apply to any grantee whose consolidated plan/action plan submission 
deadline (45 days before the start of the program year) falls either 
before, or up to 60 days after, HUD's announcement of the FY 2017 
formula program funding allocations for CDBG, ESG, HOME and HOPWA 
formula funding. The Notice advised these grantees not to submit 
their consolidated plans and action plans until the FY 2017 formula 
allocations were announced.
    Nature of Requirement: The provisions at 24 CFR 91.105(b)(4) and 
91.115(b)(4) require that grantees provide a period of not less than 
30 days during which affected citizens may review and comment on the 
FY 2017 consolidated plan or action plan prior to its 
implementation.
    Granted By: Clifford Taffet, General Deputy Assistant Secretary, 
Community Planning and Development.
    Date Granted: May 10, 2017, with corrected waiver on May 18, 
2017, for immediate effect.
    Reason Waived: Under 24 CFR 91.15(a)(2), HUD cannot accept a 
consolidated plan or annual action plan submission later than August 
16, 2017. If HUD does not receive a consolidated plan or action plan 
by August 16, 2017, a grantee automatically loses its FY 2017 CDBG 
funding. Implementation of the procedures provided in HUD Notice 
CPD-16-18 and the timing of the enactment of the FY 2017 
appropriations act leaves insufficient time for grantees to complete 
the pre-submission or pre-amendment citizen participation 
publication and comment process before the August 16, 2017 deadline. 
Given the delay in appropriations and the need for HUD to award 
funds so that grantees may begin to address their housing and 
community development needs, HUD waived the requirements in 24 CFR 
91.105(b)(4) and 91.115(b)(4) to allow grantees to reduce the public 
comment period to a minimum of 14 calendar days. This waiver ensures 
grantees do not lose their FY 2017 funding, while also affording 
citizens a meaningful public comment period. Any affected grantee 
taking advantage of this waiver must document in writing the 
conditions for the need to utilize this waiver and must maintain 
this documentation for HUD's review. This waiver authority is only 
in effect until August 16, 2017.
    Contact: Steve Johnson, Director, Entitlement Communities 
Division, Office of Block Grant Assistance, Office of Community 
Planning and Development, 451 7th Street SW., Room 7282, Washington, 
DC 20410, telephone (202) 708-1577.

II. Regulatory Waivers Granted by the Office of Fair Housing and Equal 
Opportunity

    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.
    <bullet> Regulation: 24 CFR 115.305(a).
    Project/Activity: Fair Housing Assistance Program (FHAP) 
agencies nationwide.
    Nature of Requirement: Special Enforcement Effort (SEE) funds 
are funds that HUD will provide to an agency to enhance enforcement 
activities of the agency's fair housing law. SEE funds will be a 
maximum of 20% of the agency's total FHAP cooperative agreement for 
the previous contract year, based on approval of eligible activity 
or activities, and based on the appropriation of funds.
    Granted By: Bryan Greene, General Deputy Assistant Secretary for 
Fair Housing and Equal Opportunity.
    Date Granted: June 5, 2017.
    Reason Waived: Temporary waiver of the 20 percent limitation on 
SEE Funds for eligible FHAP agencies whose total cooperative 
agreement for fiscal year 2016 was less than $300,000.
    Contact: Joseph Pelletier, Director, Fair Housing Assistance 
Program, Office of Fair Housing and Equal Opportunity, Department of 
Housing of Urban Development, 451 Seventh Street SW., Room 5206, 
Washington, DC 20410, telephone (202) 402-2126.

III. 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.
    <bullet> Regulation: 24 CFR 200.73 (c).
    Project/Activity: West Town Housing Preservation, Chicago, 
Illinois, Project No. 071-35892.
    Nature of Requirement: HUD's regulation at 24 CFR 200.73(c) 
requiring that ``not less

[[Page 45879]]

than five rental dwelling units [of an FHA insured multifamily 
housing project] shall be on one site. The property is a large, 
scattered-site portfolio of 68 apartment properties on 68 separate 
parcels. Forty-eight parcels have at least five units per site, so a 
majority of the parcels already meet the regulatory requirements. 
FHA will insure a loan through Section 221(d)(4) program to assist 
in the purchase and substantial rehabilitation of these properties. 
The unit counts for the buildings range from two to twelve, for a 
total of 318 units known as West Town Housing Preservation.
    Granted by: Dana Wade, Principal Deputy Assistant Secretary for 
Housing, H.
    Date Granted: April 12, 2017.
    Reason Waived: The property is ``affordable'', and it is in line 
with HUD's mission to continue to ensure availability for residents 
in need of subsidized housing. Additionally, the project is zip 
codes 60622 and 60647, which have seen some of the highest rates of 
property appreciation over the past several decades in Chicago. The 
perseveration of these units as affordable housing is urgently 
needed due to the rapid gentrification that has taken place in the 
area in recent years. HUD is already subsidizing the property by the 
Section 8 contracts.
    Contact: Daniel J. Sullivan, Acting Director, Office of 
Multifamily Production, Office of Housing, Department of Housing and 
Urban Development, 451 Seventh Street SW., Room 6134, Washington, DC 
20410, telephone (202) 402-6130.
    <bullet> Regulation: 24 CFR 200.73(c).
    Project/Activity: Fields Corner Granite, FHA Project Number 023-
1145, Dorchester, Massachusetts. Rockport Mortgage Company has 
applied for mortgage insurance under the Section 223(f) program to 
refinance Fields Corner Granite as a single project.
    Nature of Requirement: HUD's regulation at 24 CFR 200.73(c) 
which, states that a site must contain no less than 5 rental 
dwelling units. Section 3.2.O.CC of the MAP Guide permits a project 
with two or more contiguous parcels of land when the parcels 
comprise one marketable, manageable real estate entity.
    Granted By: Dana Wade, Principal Deputy Assistant Secretary for 
Housing, H.
    Date Granted: May 17, 2017.
    Reason Waived: The waiver was granted to allow Fields Corner 
Granite as a single project since its meet HUD's goal of preserving 
and maintaining affordable rental housing for low income families. 
The property consists of 67 units, configured as 1 studio unit, 24 
one bedroom units, 24 two bedroom units, 7 three bedroom units, and 
11 four bedroom units in the Fields Corner neighborhood of the 
Dorchester section of Boston. There is a total of 15 buildings 
situated on 5 sites, and referenced by the assessor as 10 separate 
parcels. Several of the buildings are located on adjoining sites 
with some of the structures being attached and sharing common 
utilities. Three of the sites are in the immediate vicinity of each 
other. Two sites are located within 11 blocks of each other. The 
sites have all been managed as a single entity.
    Contact: Daniel J. Sullivan, Acting Director, Office of 
Multifamily Production, Office of Housing, Department of Housing and 
Urban Development, 451 Seventh Street SW., Room 6134, Washington, DC 
20410, telephone (202) 402-6130.
    <bullet> Regulation: 24 CFR 200.73 (c).
    Project/Activity: Camden Townhomes, FHA Project Number 035-
35105, Camden, New Jersey. The owner and the proposed lender, Love 
Funding Company have applied for mortgage insurance under Section 
221(d)(4) for the substantial rehabilitation of the Camden 
Townhouses, supplemented with 4% Low Income Housing Tax Credits and 
the loan proceeds from the Section 221(d)(4) loan of $12,637,200.
    Nature of Requirement: HUD's regulation at 24 CFR 200.73(c) 
which, states that a site must contain no less than 5 rental 
dwelling units. Section 3.1.O.l.CC of the MAP Guide permits a 
project with two or more contiguous parcels of land when the parcels 
comprise one marketable, manageable real estate entity. Camden 
Townhouses is an existing 89-unit affordable housing property 
located in Camden, New Jersey. All 89 units were constructed during 
the late 19th and early 20th centuries. Thirty two of the eighty-
nine units are located on sites that are comprised of five or more 
units. All units are located within 10 blocks of each other.
    Granted By: Dana Wade, Principal Deputy Assistant Secretary for 
Housing, H.
    Date Granted: June 8, 2017.
    Reason Waived: The waiver was granted to allow the Camden 
Townhouses to proceed with an approved new 20-year Section 8 PBV HAP 
contract. The property will be renovated using New Jersey Housing 
and Mortgage Finance Agency (NJMFA) 4% LIHTC. The scattered sites 
were assembled and recognized as a single manageable and marketable 
development by the New Jersey Department of Community Affairs 
(NJDCA). The project has been professionally managed as one project 
since its inception and has one operating budget. The property is 
``affordable'' and it meets HUD's mission to continue to ensure 
availability for residents in need of subsidized housing. HUD is 
already subsidizing the property through the Section 8 contracts. 
The project is in Camden, New Jersey, where the occupancy has 
remained strong and there is a high demand for affordable rental 
housing.
    Contact: Daniel J. Sullivan, Acting Director, Office of 
Multifamily Production, Office of Housing, Department of Housing and 
Urban Development, 451 Seventh Street SW., Room 6134, Washington, DC 
20410, telephone (202) 402-6130.
    <bullet> Regulation: 24 CFR 266.410(e).
    Project/Activity: Minnesota Housing Finance Agency's (Minnesota 
Housing), Risk Sharing Program, St. Paul, Minnesota.
    Nature of Requirement: The 24 CFR 266.410(e) Amortization. 
Requires mortgages insured under the 542(c) Housing Finance Agency 
Risk Sharing Program to be fully amortized over the term of the 
mortgage. The waiver would permit Minnesota Housing to provide loans 
that would have a minimum term of 17 years (``balloon loans''). 
Minnesota Housing would be able to provide additional financing 
options to their customers and better align the agency's business 
practices with industry standards. The waiver would expire on 
December 18, 2018.
    Granted By: Dana Wade, Principal Deputy Assistant Secretary for 
Housing, H.
    Date Granted: June 19, 2017.
    Reason Waived: This will reduce Minnesota Housing Finance 
Agency's cost of capital, which should translate into lower rates 
for their borrowers, and will support their preservation efforts. 
Application of this waiver is limited in both time and scope. The 
Department's exposure is further limited with the condition that 
Minnesota Housing takes 50 percent or more of the risk on these 
transactions. Minnesota Housing anticipates that new construction or 
substantial rehabilitation projects that are awarded Low Income 
Housing Tax Credits (LIHTC) would use the balloon loan product, as 
well as clients who have been utilizing other financing option, such 
as Fannie Mae or Freddie Mac, rather than Risk Share.
    Minnesota Housing Finance Agency's waiver approval is subject to 
the following conditions:
    1. Minnesota Housing must elect to take 50 percent or more of 
the risk of loss on all transactions;
    2. The waiver expires on December 31, 2018, or when HUD's 
proposed rule revision becomes final, whichever event occurs first;
    3. All other requirements of 24 CFR 266.410 remain applicable. 
The waiver is applicable only for new construction or substantial 
rehabilitation projects;
    4. In accordance with 24 CFR 266.200(d), the mortgage may not 
exceed an amount supportable by the lower of Section 8, or 
comparable unassisted market rents;
    5. If applicable, projects must comply with Davis-Bacon labor 
standards in accordance with 24 CFR 266.225.
    6. Minnesota Housing must comply with regulations stated in 24 
CFR 266.210 for insured advance or insurance upon completion 
transactions.
    7. An Affordable Housing Deed restriction for 20 years must be 
recorded.
    Contact: Daniel J. Sullivan, Acting Director, Office of 
Multifamily Production, Office of Housing, Department of Housing and 
Urban Development, 451 Seventh Street SW., Room 6134, Washington, DC 
20410, telephone (202) 402-6130.
    <bullet> Regulation: 24 CFR 290.30.
    Project/Activity: La Casse/South Canal Apartments, FHA Project 
Number 023-105NI, Holyoke, MA. The Office of Multifamily Housing 
received a proposal from MassHousing, a state housing finance 
agency, to purchase a HUD-held Flexible Subsidy Operating Assistance 
Program note for $587,969 on a non-competitive basis. The balance on 
the Flexible Subsidy note was $6.7 million which alone was more than 
twice the as-is appraised value of the property. There was no equity 
in which to size a mortgage or utilize Low Income Housing Tax 
Credits, and therefore no ability to refinance all the existing debt 
on the property and defer the Flexible Subsidy Note with terms 
wherein it would be repayable.
    Nature of Requirement: Section 290.30 requires that HUD shall 
sell HUD-held multifamily mortgages on a competitive basis.
    Granted by: Genger Charles, General Deputy Assistant Secretary 
for Housing.

[[Page 45880]]

    Date Granted: May 17, 2017.
    Reason Waived: The proposed purchase price was deemed to be the 
highest recovery amount possible on the note. Due to the lack of 
operating funds to repay on the note and its 4th lien position, 
there was a high risk that there would be no bidders on a 
competitive basis. MassHousing approved a refinancing of the 
property in which their purchase of the note would significantly 
reduce the debt burden and allow the property to cash flow and be 
rehabilitated. The waiver of the proposed portion of the 24 CFR 
290.30 does not violate any statutory requirements. Granting of this 
waiver ensured that the Department obtained the maximum recovery as 
possible on the claim, while selling to an entity fully invested in 
the preservation of affordable housing.
    Contact: Thomas R. Davis, Director, Office of Recapitalization, 
Office of Multifamily Housing, Office of Housing, Department of 
Housing and Urban Development, 451 Seventh Street SW., Room 6230, 
Washington, DC 20410, telephone (202) 402-7549.
    <bullet> Regulation: 24 CFR 290.30(a).
    Project/Activity: Andrews Plaza, FHA Project Number 012-57128 V, 
Bronx, New York. Andrews Plaza Housing Associates, L.P. (Owner) 
seeks approval to waive the non-competitive sale of a HUD-held 
multifamily mortgage.
    Nature of Requirement: The regulation at 24 CFR 290.30(a), which 
governs the sale of HUD-held mortgages, states that ``[e]xcept as 
otherwise provided in Section 290.31(a)(2), HUD will sell HUD-held 
multifamily mortgages on a competitive basis.''
    Granted by: Genger Charles, General Deputy Assistant Secretary 
for Housing, H.
    Date Granted: May 4, 2017.
    Reason Waived: The owner requested and was granted a waiver of 
the non-competitive sale of a HUD-held multifamily mortgage. A 
waiver allows the Department to assign the mortgage to the owner's 
new mortgagee to avoid paying mortgage recording tax in the State of 
New York.
    Contact: Cindy Bridges, Senior Account Executive, Office of 
Housing, Department of Housing and Urban Development, 451 Seventh 
Street SW., Room 6168, Washington, DC 20410, telephone (202) 402-
2603.
    <bullet> Regulation: 24 CFR 290.30(a).
    Project/Activity: Prospect Arms, FHA Project Number 012-57053 V 
and W, Brooklyn, New York. Prospect Arms, L.P. (owner) seeks 
approval to waive the non-competitive sale of two HUD-held 
multifamily mortgages.
    Nature of Requirement: The regulation at 24 CFR 290.30(a), which 
governs the sale of HUD-held mortgages, states that ``[e]xcept as 
otherwise provided in Section 290.31(a)(2), HUD will sell HUD-held 
multifamily mortgages on a competitive basis.''
    Granted by: Genger Charles, General Deputy Assistant Secretary 
for Housing, H.
    Date Granted: June 8, 2017.
    Reason Waived: The owner requested and was granted a waiver of 
the non-competitive sale of two HUD-held multifamily mortgages. A 
waiver allows the Department to assign the mortgages to the Owner's 
new mortgagee to avoid paying mortgage recording tax in the State of 
New York.
    Contact: Cindy Bridges, Senior Account Executive, Office of 
Housing, Department of Housing and Urban Development, 451 Seventh 
Street SW., Room 6168, Washington, DC 20410, telephone (202) 402-
2603.
    <bullet> Regulation: 24 CFR 290.30(a).
    Project/Activity: Miramar Court Apartments, FHA Project Number 
012-57123 V, Bronx, New York. LRF Housing Associates, L.P. (Owner) 
seeks approval to waive the non-competitive sale of a HUD-held 
multifamily mortgage.
    Nature of Requirement: The regulation at 24 CFR 290.30(a), which 
governs the sale of HUD-held mortgages, states that ``[e]xcept as 
otherwise provided in Section 290.31(a)(2), HUD will sell HUD-held 
multifamily mortgages on a competitive basis.''
    Granted by: Genger Charles, General Deputy Assistant Secretary 
for Housing, H.
    Date Granted: June 23, 2017.
    Reason Waived: The owner requested and was granted a waiver of 
the non-competitive sale of a HUD-held multifamily mortgage. A 
waiver allows the Department to assign the mortgage to the owner's 
new mortgagee to avoid paying mortgage recording tax in the State of 
New York.
    Contact: Cindy Bridges, Senior Account Executive, Office of 
Housing, Department of Housing and Urban Development, 451 Seventh 
Street SW., Room 6168, Washington, DC 20410, telephone (202) 402-
2603.
    <bullet> Regulation: 24 CFR 290.30(a).
    Project/Activity: Villa Alejandrina Apartments, FHA Project 
Number 012-57308 V and W, Bronx, New York. Brook Avenue Development 
Company, L.P. (Owner) seeks approval to waive the non-competitive 
sale of two HUD-held multifamily mortgages.
    Nature of Requirement: The regulation at 24 CFR 290.30(a), which 
governs the sale of HUD-held mortgages, states that ``[e]except as 
otherwise provided in Section 290.31(a)(2), HUD will sell HUD-held 
multifamily mortgages on a competitive basis.''
    Granted by: Genger Charles, General Deputy Assistant Secretary 
for Housing, H.
    Date Granted: June 23, 2017.
    Reason Waived: The owner requested and was granted a waiver of 
the non-competitive sale of two HUD-held multifamily mortgages. A 
waiver allows the Department to assign the mortgages to the Owner's 
new mortgagee to avoid paying mortgage recording tax in the State of 
New York.
    Contact: Cindy Bridges, Senior Account Executive, Office of 
Housing, Department of Housing and Urban Development, 451 Seventh 
Street SW., Room 6168, Washington, DC 20410, telephone (202) 402-
2603.

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

    For further information about the following regulatory waivers, 
please see the name of the contact person that immediately follows 
the description of the waiver granted.
    <bullet> Regulation: 24 CFR 5.801 and 24 CFR 902.33(b).
    Project/Activity: Kennewick Housing Authority (WA012).
    Nature of Requirement: The regulation establishes certain 
reporting compliance dates. The audited financial statements are 
required to be submitted to the Real Estate Assessment Center (REAC) 
no later than nine months after the housing authority's (HA) fiscal 
year end (FYE), in accordance with the Single Audit Act and 2 CFR 
part 200 subpart F.
    Granted By: Jemine A. Bryon, General Deputy Assistant Secretary 
for Public and Indian Housing.
    Date Granted: May 19, 2017.
    Reason Waived: The Kennewick Housing Authority requested relief 
of financial condition scoring and its financial reporting 
requirements for the fiscal year end (FYE) of September 30, 2016. 
The HA's records and building contents were all destroyed during the 
storm disaster of October 2016. Therefore, the HA was approved until 
June 12, 2017, to submit its unaudited financial statements, as well 
as to submit its audited financial statements to HUD. The audited 
financial approval only permits the extension for filing. This FASS 
audited financial submission extension does not apply to Single 
Audit submissions to the Federal Audit Clearinghouse; the HA is 
required to meet the Single Audit due date.
    Contact: Dee Ann R. Walker, Acting Program Manager, NASS, Real 
Estate Assessment Center, Office of Public and Indian Housing, 
Department of Housing and Urban Development, 550 12th Street SW., 
Suite 100, Washington, DC 20410, telephone (202) 475-7908.
    <bullet> Regulation: 24 CFR 990.250(b)(1).
    Project/Activity: Alexander County HA (ACHA) in Cairo, IL (Code: 
IL007).
    Nature of Requirement: The regulation states that a Public 
Housing Agency (PHA) is required to acquire an independent cost 
assessment of its projects when requesting an operating subsidy 
appeal. The ACHA requested a waiver to the requirement to receive an 
independent cost estimate to appeal their project expense level 
(PEL) funding.
    Granted By: Jemine A. Bryon, General Deputy Assistant Secretary 
for Public and Indian Housing.
    Date Granted: May 31, 2017.
    Reason Waived: ACHA, currently under HUD posession, faces 
economic hardship that severely impact its financial stability, and 
limit the PHA's ability to complete an independent cost estimate 
prior to the submission of a PEL appeal. An April 2017 report 
completed by HUD's Quality Assurance Subsystem (QASS) determined 
that the model-generated PEL was not accurate for comparable 
properties in the market area resulting in reduced funding by more 
than ten percent. Coupled with ACHA's dire financial position and 
accompanying exigent circumstances, HUD found that the QASS report 
meet the intent of the requirement of 24 CFR 990.250(b)(1). Thereby, 
the Department determined that ACHA demonstrated good cause pursuant 
to 24 CFR part 5.110 to grant the waiver.
    Contact: Monica Shepherd, Public Housing Management and 
Occupancy Division, Office of Public Housing and Voucher Programs, 
Office of Public and Indian Housing, Department of Housing and Urban 
Development, 451 Seventh Street SW., Room

[[Page 45881]]

4208, Washington, DC 20410, telephone (202) 402-5687.

[FR Doc. 2017-21075 Filed 9-29-17; 8:45 am]
 BILLING CODE 4210-67-P