[Federal Register Volume 80, Number 163 (Monday, August 24, 2015)]
[Notices]
[Page 51297]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-20826]



[[Page 51297]]

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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5851-N-02]


Rental Assistance Demonstration (RAD)--Alternative Requirements 
or Waivers: Waiving the Minimum Rent and Security Deposit Requirements 
for the Housing Authority of Baltimore City's Specified RAD Projects

AGENCY: Office of the Assistant Secretary for Housing--Federal Housing 
Commissioner, HUD.

ACTION: Notice.

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SUMMARY: The Rental Assistance Demonstration (RAD) statute gives HUD 
authority to establish waivers and alternative requirements. This 
notice advises that HUD is waiving, for the Housing Authority of 
Baltimore City (HABC), minimum rent and security deposit requirements 
governing project-based assistance with respect to an identified 
portfolio that includes projects converting assistance under RAD. These 
waivers are necessary to ensure that HABC can successfully operate 
these properties in accordance with the terms and conditions required 
under a consent decree from a fair housing case. Without these waivers, 
HABC would not be able to effectively operate the converted properties, 
as they have been operated under the consent decree, after their 
conversion under the RAD program.

DATES: Effective Date: September 3, 2015.

FOR FURTHER INFORMATION CONTACT: Thomas R. Davis, Director, Office of 
Recapitalization, Office of Housing, Department of Housing and Urban 
Development, 451 7th Street SW., Washington, DC 20410-7000; telephone 
number 202-708-0001 (this is not a toll-free number). Hearing- and 
speech-impaired persons may access these numbers through TTY by calling 
the Federal Relay Service at 800-877-8339 (this is a toll-free number).

SUPPLEMENTARY INFORMATION:

Background and Action

    On July 2, 2013, HUD issued PIH Notice 2012-32 Rev-1 (as corrected 
by the technical correction issued February 6, 2014) (``RAD Notice Rev-
1''), which superseded PIH Notice 2012-32. RAD Notice Rev-1 is found at 
the following URL: http://portal.hud.gov/hudportal/documents/huddoc?id=pih2012-32rev1.pdf. RAD Notice Rev-1, at section 1.9, 
paragraph F, entitled ``Portfolio Awards,'' also sets forth a new 
option of a ``portfolio award,'' which allows public housing agencies 
(PHAs) to apply for RAD conversions affecting a group of projects. This 
type of award is meant to enable PHAs to create a comprehensive 
revitalization plan for multiple buildings they oversee. HABC has 
submitted an application for a portfolio award under RAD, and seeks to 
convert assistance from public housing to Section 8 Project-Based 
Rental Assistance (PBRA). While HUD has published a second revision of 
the RAD Notice (PIH Notice 2012-32 Rev-2), HABC has applied for a 
portfolio award under the terms and conditions of RAD Notice Rev-1.
    The RAD statute (Pub. L. 112-55, approved November 18, 2011, as 
amended) \1\ gives HUD authority to waive or specify alternative 
requirements for various provisions of the law upon a finding that such 
waivers or alternative requirements are necessary for the effective 
conversion of assistance under RAD. In order to utilize this authority, 
the RAD statute requires HUD to publish by notice in the Federal 
Register any waiver or alternative requirement, no later than 10 days 
before the effective date of such notice. This notice meets this 
publication requirement.
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    \1\ The RAD statutory requirements were amended by the 
Consolidated Appropriations Act, 2014 (Pub. L. 113-76, signed 
January 17, 2014) (2014 Appropriations Act) and the Consolidated and 
Further Continuing Appropriations Act, 2015 (Pub. L. 113-235, signed 
December 16, 2014) (2015 Appropriations Act). The statutory 
provisions of the 2012 Appropriations Act pertaining to RAD, as 
amended, are referred to as the RAD Statute in this notice.
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    HABC is subject to certain restrictions on their programs pursuant 
to Bailey v. Housing Authority of Baltimore City and subsequent 
extensions, amendments, and other agreements with the plaintiffs of 
such case and the Department of Justice (collectively referred to 
herein as the ``Bailey Consent Decree''). In order for the covered 
project to comply with the Bailey Consent Decree requirements, 
residents of the projects for which HABC intends to convert assistance 
under RAD must retain the rights, privileges, and benefits that are 
provided to public housing residents. The PBRA regulations relating to 
minimum rent and security deposit payments differ from public housing 
requirements. 24 CFR 5.630(a)(3) establishes a minimum rent requirement 
of $25 for the PBRA program. 24 CFR 880.608(a) mandates that the owner 
of the converted unit require each family to pay a security deposit in 
an amount ``equal to one month's Total Tenant Payment or $50, whichever 
is greater.''
    Therefore, in order to continue its compliance with the Bailey 
Consent Decree, HABC has requested, and HUD has granted, alternative 
requirements to the regulations above to permit a minimum rent amount 
of $0 and to allow the owners of units with converted assistance the 
ability to require each family to pay a security deposit equal to the 
lesser of either one month's rent or $50. HUD has determined that the 
requested waivers and alternative requirements are necessary for the 
effective conversion of assistance under RAD of the properties 
contemplated under the HABC portfolio award.

    Dated: August 13, 2015.
Edward L. Golding,
Principal Deputy Assistant, Secretary for Housing.
    Approved on August 14, 2015.
Nani A. Coloretti,
Deputy Secretary.
[FR Doc. 2015-20826 Filed 8-21-15; 8:45 am]
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