[Federal Register Volume 77, Number 231 (Friday, November 30, 2012)]
[Notices]
[Pages 71445-71446]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-29036]
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. 5677-N-01]
Regulatory and Administrative Waivers Granted for Multifamily
Housing Programs To Assist With Recovery and Relief in Sandy Disaster
Areas
AGENCY: Office of the Assistant Secretary for Housing--Federal Housing
Commissioner, HUD.
ACTION: Notice.
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SUMMARY: This Notice advises the public of HUD regulations and other
administrative requirements governing HUD's Office of Multifamily
Housing programs that have been waived in order to facilitate the
delivery of decent, safe, and sanitary housing under these programs to
families and individuals who have been displaced from their housing by
Sandy. Owners of HUD project-based Section 8 properties located in an
area declared by the President to be a federal disaster area as a
result of Sandy may defer compliance with the regulations listed in
this notice for a period up to 60 days (December 2012 and January
2013). Owners must provide notice of their decision to HUD as described
below. Housing assistance payments made for November 2012 will remain
unchanged.
DATES: Effective Date: November 26, 2012.
FOR FURTHER INFORMATION CONTACT: Catherine M. Brennan, Director, Office
of Housing Assistance and Grant Administration, Department of Housing
and Urban Development, 451 Seventh Street SW., Room 6138, Washington,
DC 20410, telephone number (202) 708-3000. Persons with hearing or
speech impairments may access these numbers via TTY by calling the
Federal Relay Service at 1 (800) 877-8339 or by visiting http://federalrelay.us/ or http://www.federalip.us/.
SUPPLEMENTARY INFORMATION:
I. Background Information
In late October 2012, Hurricane Sandy hit the east coast of the
United States causing significant damage to property, loss of life, and
displacement of individuals and families from their homes and
communities. The President has called upon all federal agencies to do
everything in their power to assist the victims of Hurricane Sandy and
to eliminate or reduce ``red tape'' that will impede the delivery of
federal financial assistance and other needed benefits. To that end,
this Notice identifies HUD regulations and other administrative
requirements governing HUD's project-based Section 8 programs that may
be waived, temporarily suspended, or deferred in an area declared by
the President to be a federal disaster area as a result of Hurricane
Sandy. This Notice is not applicable to the Rent Supplemental (Rent
Supp) and RAP programs.
II. Request To Exercise Option To Receive Vacancy Claims
Multifamily Hub Directors in the Sandy disaster areas may defer or
suspend compliance with the regulations or other administrative
requirements upon the effective date of this Notice. An owner who
wishes to exercise his/her option to receive vacancy claims in
accordance with the requirements listed in this Notice must contact the
Hub Director in writing (email communication is encouraged) with that
request. If an owner wishes to receive vacancy claims for both December
2012 and January 2013, two separate written requests, one for each
month, must be made to the Hub Director. The Hub Director will then
verify that the units are uninhabitable based on phone and physical
assessment (if available) and, once verified, approve the request. Hub
Directors will provide the owner's request form to HUD Headquarters for
tracking.
III. Business Interruption Insurance
In many cases, an owner may have insurance to protect against a
loss of profits during a period of total or partial suspension of
business activity. Owners who have such insurance, must decide whether
to exercise the option to receive vacancy claims as described in this
Notice or to receive insurance payments. An owner should not voucher
under this waiver if they are/will receive vacancy insurance payments
for the same time for the same unit.
IV. Pass-Through Payments
Owners with residents under a project-based Section 8 contract
whose unit was rendered uninhabitable can temporarily lease a unit in
another building that is habitable under Uniform Physical Condition
Standards. The owner can sign a temporary lease on behalf of the
displaced Section 8 resident and begin to voucher for the contract rent
for that temporary unit. The owner will then pay the contract rent on
the temporary dwelling until the resident's permanent rental unit has
been restored to a habitable condition and the owner notifies the
resident that he/she may resume occupancy of the unit. The resident is
still responsible for the resident's share for the temporary unit.
Once the original unit is fully repaired and ready for occupancy,
all Section 8 provisions apply. This arrangement calls for close
contact and cooperation between the owner and the resident as the
displaced resident has first right of refusal for the unit. Further
information relating to pass-through payments can be found in Housing
Handbook 4350.1, Chapter 38.
V. November 2012 Housing Voucher Payments and Tenant Rent Payments
Housing Assistance Payments made to an owner for November 2012 will
remain unaffected. Owners are encouraged to refund tenant rental
payments received for the month of November 2012 from any tenant whose
unit was deemed uninhabitable.
VI. Regulatory Requirements Which Have Been Waived
a. 24 CFR 880.611 Conditions for receipt of vacancy payments.
Section 880.611 provides conditions for when owners are able to receive
vacancy payments. Owners that have units that are deemed uninhabitable
due to Sandy can choose to exercise their option to receive vacancy
claims in the amount of 80 percent of the contract rent for up to 60
days (December 2012 and January 2013).
b. 24 CFR 881.501 The contract. Section 881.501 provides conditions
for when owners are able to receive vacancy payments. Owners that have
units that are deemed uninhabitable due to Hurricane Sandy can choose
to exercise their option to receive vacancy claims in the amount of 80
percent of the contract rent for up to 60 days (December 2012 and
January 2013).
c. 24 CFR 884.106 Housing assistance payments to owners. Section
884.106 provides conditions for when owners are able to receive vacancy
payments. Owners that have units that are deemed uninhabitable due to
Sandy can choose to exercise their option to receive vacancy claims in
the amount of 80 percent of the contract rent for up to
[[Page 71446]]
60 days (December 2012 and January 2013).
d. 24 CFR 886.109 Housing assistance payments to owners. Section
886.109 provides conditions for when owners are able to receive vacancy
payments. Owners that have units that are deemed uninhabitable due to
Sandy can choose to exercise their option to receive vacancy claims in
the amount of 80 percent of the contract rent for up to 60 days
(December 2012 and January 2013).
VII. Authority To Grant Waivers
Generally, waivers of HUD regulations are handled on a case-by-case
basis. Under statutory requirements set forth in section 7(q) of the
Department of Housing and Urban Development Act (42 U.S.C. 3535(q)) and
its implementing regulations, 24 CFR 5.110, a regulated party that
seeks a waiver of a HUD regulation must request a waiver from HUD in
writing and the waiver request must specify the need for the waiver.
HUD then responds to the request in writing and, if the waiver is
granted, HUD includes a summary of the waiver granted (and all
regulatory waivers granted during a three-month period) in a Federal
Register notice that is published quarterly. Since the damage to
property and the displacement of families and individuals in the
disaster areas is widespread, and the need for regulatory relief in
many areas pertaining to HUD-assisted housing is readily apparent, HUD
is suspending its usual regulatory waiver protocols for the disaster
areas and has substituted an expedited process that meets the
requirements of Section 7(q) and 24 CFR 5.110.
Dated: November 26, 2012.
Carol J. Galante,
Acting Assistant Secretary for Housing--Federal Housing Commissioner.
[FR Doc. 2012-29036 Filed 11-29-12; 8:45 am]
BILLING CODE 4210-67-P