HOME Waiver Log: 2005

The following summaries provide information on the date that HOME waivers were granted and denied, the State or Local Field Office making the request, the situation which gave rise to the need for a program waiver, and the regulatory citation. To obtain a copy of a specific HOME waiver, contact HUD's Office of Affordable Housing Programs at (202) 708-2470. Hearing impaired users may call the Federal Information Relay Service at 1-800-877-8339.

3/18/2005 MS Waiver request denied. The City of Jackson requested a waiver to permit City employees, who may be in a decision-making capacity or in a position to gain inside information, to benefit from its HOME-assisted housing program. The City failed to demonstrate why the exception proves authorized by 92.356(d) and (e) cannot be used. In addition, the City failed to provide justification for eliminating the public disclosure of the nature of the individual conflicts of interest. 92.356 (b), (c), (d) and (e) (http://edocket.access.gpo.gov/cfr_2004/aprqtr/24cfr92.356.htm)
3/22/2005 OR Waiver request granted to Washington County, Oregon of the HOME Program regulations established at 24 CFR 92.214(a)(6) to provide additional funds during the period of affordability to a project previously funded with HOME. Washington County and its partners have addressed property management concerns, assessed rehabilitation needs, and reduced debt service while leveraging needed resources. The actions of the County and its partners constitute due diligence in trying to ensure the viability of the project. 92.214 (a)(6) (http://edocket.access.gpo.gov/cfr_2004/aprqtr/24cfr92.214.htm)
5/2/2005 UT Waiver request granted for Salt Lake County, Utah, to allow the county to substitute 9 comparable, non-federally assisted units in Millcreek II as an alternative to repaying $346,000 of HOME funds invested in the Millcreek I project. The first mortgage on Millcreek I foreclosed before the end of the HOME affordability period, and the new owner was not willing to continue the HOME restrictions on the property. 92.356 (b)(1) (http://edocket.access.gpo.gov/cfr_2004/aprqtr/24cfr92.356.htm)
5/6/2005 MI Waiver request granted to the City of Ann Arbor, Michigan to allow refinancing of existing debt on a single-family rental unit being rehabilitated with HOME funds. The HOME regulations at 92.206(b)(2) permit the refinancing of existing debt in conjunction with the rehabilitation of owner-occupied, single-family housing, and multifamily rental housing. The exclusion of single-family rental projects from the regulations at 24 CFR §92.206 is an oversight; refinancing and rehabilitating single-family rental projects should be eligible project costs and subject to the provisions at §92.206(b)(2). This oversight is interfering with the city’s effort to preserve at-risk affordable housing. 92.206 (b)(2) (http://edocket.access.gpo.gov/cfr_2004/aprqtr/24cfr92.206.htm)
5/20/2005 NC Waiver request granted to the City of Greensboro, North Carolina, to allow the city to substitute 36 comparable, non-federally assisted units as an alternative to repaying $900,000 of HOME funds invested in the St. James II project. The project, because of deterioration, fell out of compliance with HOME standards for rental projects. The City of Greensboro initial waiver request to add additional HOME funds into the project for rehabilitation was denied. Greensboro had to devise consider alternatives including repayment, grant reduction and substitution. The City determined that substitution of comparable non-federally assisted units was feasible and again requested a waiver of repayment that was granted. 92.503 (b) (http://edocket.access.gpo.gov/cfr_2004/aprqtr/24cfr92.503.htm)
5/20/2005 FL Suspension of Section 212 (c) of the Cranston-Gonzalez National Affordable Housing Act of 1990 (NAHA) in a Presidentially- Declared Major Disaster Area granted to the Florida Housing Finance Corporation (FHFC). Requests this suspension to permit it to use 14% of its HOME allocation for administrative costs so that local Public Housing Authorities can provide tenant-based rental assistance to hurricane victims. NAHA Section 212 (c)
5/20/2005 TX Denied a waiver request from the State of Texas regarding the Lakeside Apartments project in La Porte, Texas that was acquired with HOME funds, but never rehabilitated or occupied. The State permitted acquisition of this project to proceed without first resolving existing zoning issues. Since the project was never completed and no affordable rental units were made available, the HOME funds expended must be repaid as required by the HOME regulations at 24 CFR § 92.503(b)(2). 92.503 (b)(2) (http://edocket.access.gpo.gov/cfr_2004/aprqtr/24cfr92.503.htm)
5/27/2005 MN Waiver request granted to the Minnesota Housing Finance Agency (MHFA) of the HOME program regulations established at 24 CFR 92.503(b) that requires a PJ to repay its HOME account if the HOME-assisted housing fails to meet the affordability requirements for the full period of affordability. A HOME-funded project was condemned and vacated with 28 months of the affordability period remaining due to structural damage in the foundations. HUD denied MHFA’s original waiver request, as well as the second one citing inadequate justification for a determination of good cause. The State resubmitted its request for a third time and included new information about the damage to the foundation of the project as well as the due diligence by MHFA beyond what was outlined it the previous requests. The new information clarified the cause of the damage and explained actions taken by MHFA. 92.503 (b) (http://edocket.access.gpo.gov/cfr_2004/aprqtr/24cfr92.503.htm)
6/15/2005 OR Waiver request granted to Washington County, Oregon of the HOME Program regulations established at 24 CFR 92.214(a)(6), to provide additional funds during the period of affordability to a project previously funded with HOME. The County and its partners worked to stabilize the vacancy rate, assess rehabilitation needs, and leverage additional resources. Through a capital needs assessment, they developed a detailed repair and replacement plan that will make the project competitive in the market and more financially viable. The replacement of the limited partner has resulted in an increase in the equity investment in the project. 92.214 (a)(6) (http://edocket.access.gpo.gov/cfr_2004/aprqtr/24cfr92.214.htm)
6/15/2005 OH Waiver request denied. The City Of Cincinnati requested a waiver of the HOME program regulations established at 24 CFR 92.503(b) that requires a PJ to repay its HOME account if the HOME-assisted housing fails to meet the affordability requirements for the full period of affordability. The City committed $3.95 million to rehabilitate a 1,100-unit complex 264 of which would be HOME units. The project experienced problems early on and rehabilitation was never complete or the property fully occupied. The project owner filed for bankruptcy, the property was sold and ultimately demolished. The City submitted two waiver requests: the first to waive repayment and the second for permission to use substitute units in lieu of repayment. HUD determined the City did not exercise due diligence in either its decision to fund the project or its oversight of the project. In addition the units proposed for substitution did not meet HUD standards to be comparable, non-federally funded and meet the HOME affordability requirements. 92.503 (b) (http://edocket.access.gpo.gov/cfr_2004/aprqtr/24cfr92.503.htm)
6/16/2005 IN Waiver request granted to the City of Indianapolis to extend the FY 2004 deadline for Consolidated Plan submission to allow the City to amend its Plan to include its FY 2003 and FY 2004 ADDI programs 91.15 (a)(2) (http://edocket.access.gpo.gov/cfr_2004/aprqtr/24cfr91.15.htm)
6/16/2005 IN Waiver request granted to the City of Evansville, Indiana to extend the FY 2004 deadline for Consolidated Plan submission to allow the City to amend its Plan to include its FY 2003 and FY 2004 ADDI programs 91.15 (a)(2) (http://edocket.access.gpo.gov/cfr_2004/aprqtr/24cfr91.15.htm)
6/17/2005 OR Waiver request granted to the State of Oregon to permit it to use the Federal Housing Administration’s Minimum Property Requirements (MPR) instead of HQS in order to streamline its ADDI program and make it as widely accessible as possible. MPR standards are equal to or exceed those of HQS. 92.251(a)(2) (http://edocket.access.gpo.gov/cfr_2004/aprqtr/24cfr92.251.htm)
7/28/2005 WI Waiver request granted to Milwaukee County, WI to extend the deadline for its consolidated action plan submission. A new provision in the ADDI interim rule that required PJs to include their ADDI programs in their annual consolidated plan submissions and if already submitted, the PJs needed to amend their action plan to include the required information. Milwaukee County, who had previously submitted its plan, did not submit an amended plan for 2004, instead included the required information in their 2005 plan. Due to unforeseen staff turnover and a misinterpretation of what HUD required the Department found good cause to grant Milwaukee County an extension. 91.15 (a)(2) (http://edocket.access.gpo.gov/cfr_2004/aprqtr/24cfr91.15.htm)
8/1/2005 PR Waiver request granted to the Commonwealth of Puerto Rico to extend the Commonwealth’s five-year deadline for expending its FY 2000 HOME funds. 92.500 (d)(1)(C) (http://edocket.access.gpo.gov/cfr_2004/aprqtr/24cfr92.500.htm)
8/1/2005 NY Waiver request granted to the City of Yonkers, New York to allow it to extend its submission deadline for its FY 2004 Consolidated Annual Action Plan so it can amend the plan to include its FY 2003 and FY 2004 ADDI programs. 91.105 (a)(2) (http://edocket.access.gpo.gov/cfr_2004/aprqtr/24cfr91.105.htm)
8/1/2005 TX Waiver request granted to the City of Houston of the HOME Program regulations established at 24 CFR 92.214(a)(6), to provide additional funds during the period of affordability to a project previously funded with HOME. To resolve a 2004 finding of non-compliance with local property standards, the City needed to bring its HOME-assisted homebuyer units up to standard, which required additional funds for repairs. The City adopted housing quality standards and developed and implemented procedures to ensure qualified personnel conducted inspections of HOME-assisted homebuyer units. With corrective actions in place the investment of additional HOME funds will enable the City to bring the units up to standard and ease the hardship placed on homeowners living in these units. 92.214 (a)(6) (http://edocket.access.gpo.gov/cfr_2004/aprqtr/24cfr92.214.htm)
9/14/2005; 10/4/2005   Waivers for communities receiving displaced persons from Presidential disaster declaration areas due to Hurricanes Katrina and Rita. HUD waived HOME regulation and suspended certain HOME statutory requirements for HOME participating jurisdictions (PJs) that receive displaced residents from areas President Bush declared disaster areas under Title IV of the Robert T. Stafford Act to facilitate PJs’ efforts to serve the critical housing needs of the displaced. 91.105 (a)(2) and (k) (http://edocket.access.gpo.gov/cfr_2004/aprqtr/24cfr91.105.htm); 91.115 (c)(2) and (i) (http://edocket.access.gpo.gov/cfr_2004/aprqtr/24cfr91.115.htm); 91.401 (http://edocket.access.gpo.gov/cfr_2004/aprqtr/24cfr91.401.htm); 92.203 (a)(1) and (2) (http://edocket.access.gpo.gov/cfr_2004/aprqtr/24cfr92.203.htm); 92.500 (c) (http://edocket.access.gpo.gov/cfr_2004/aprqtr/24cfr92.500.htm); 92.209 (h)(3) (http://edocket.access.gpo.gov/cfr_2004/aprqtr/24cfr92.209.htm); 92.209 (i) (http://edocket.access.gpo.gov/cfr_2004/aprqtr/24cfr92.209.htm); 92.251 (d) (http://edocket.access.gpo.gov/cfr_2004/aprqtr/24cfr92.251.htm)
9/20/2005 MN Waiver request granted to the Dakota County Consortium, Minnesota, to allow the consortium to substitute a comparable, non-federally assisted property as an alternative to repaying $8,500 of HOME funds for failing to keep the property affordable for the length of the affordability period. Due to unforeseen circumstances, residents had to be removed and the residence sold during the affordability period. Because the property did not remain affordable for the period specified, the PJ is required to repay the funds to its HOME account. PJ requested a waiver of 92.503(b) -the repayment provision and asked instead to substitute a comparable property in lieu of repayment. 92.500 (b) (http://edocket.access.gpo.gov/cfr_2004/aprqtr/24cfr92.500.htm)
10/7/2005 MI Waiver request denied for the City of Flint, Michigan of citizen participation requirements in the Consolidated Plan regulations established at 24 CFR 91.105(c). City requests a waiver to expand the applicability of the September 9, 2005 Hurricane Katrina disaster waiver that permitted PJs to reduce the public comment period from 30 to 3 days on disaster related activities. The City seeks to expand the September 9, 2005 waiver to include current residents in its proposed homebuyer program. HUD has never waived the citizen participation requirements for any circumstance other than a major disaster. 91.105 (c) (http://edocket.access.gpo.gov/cfr_2004/aprqtr/24cfr91.105.htm)
11/9/2005 WI Waiver request granted to state of Wisconsin to allow the State to provide CHDO set-aside funds to 28 CHDOs that form LLCs. The provision at 92.300(a)(1) permits a PJ to award CHDO set-aside funds to limited partnerships, where the CHDO is the managing general partner, but not to LLCs. The State requested a waiver of this provision for 28 CHDOs stating limited partnerships would cause undue hardship to CHDOs. 92.300 (a)(1) (http://edocket.access.gpo.gov/cfr_2004/aprqtr/24cfr92.300.htm)
12/21/2005 LA Waiver request and suspension of the Cranston-Gonzalez National Affordable Housing Act of 1990 (NAHA) granted for the City of Lake Charles, a declared disaster area under Hurricanes Katrina and Rita: waives the 2001-2004 and 2007 CHDO reservation requirements; waives the FY 2003 commitment requirement; and allows the City to spend up to 20% of its FY 2007 HOME allocation plus program income for administrative/planning costs. 92.300 (a)(1) (http://edocket.access.gpo.gov/cfr_2004/aprqtr/24cfr92.300.htm), NAHA Section 231 (http://www.hud.gov/offices/adm/hudclips/acts/naha231.txt); 92.500 (d)(1)(B) (http://edocket.access.gpo.gov/cfr_2004/aprqtr/24cfr92.500.htm), NAHA, Section 218 (g) (http://www.hud.gov/offices/adm/hudclips/acts/naha218.txt); and 92.207 (http://edocket.access.gpo.gov/cfr_2004/aprqtr/24cfr92.207.htm), NAHA Section 212 (c) (http://www.hud.gov/offices/adm/hudclips/acts/naha212.txt)

 
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