New HUD Waiver Notice for Disaster Areas

On Jan. 5, HUD published a notice in the Federal Register titled “Regulatory and Administrative Requirement Waivers and Flexibilities Available to HUD Public Housing and Section 8 During CY 2022 and CY 2023 to Public Housing Agencies To Assist With Recovery and Relief Efforts on Behalf of Families Affected by Presidentially Declared Disasters.” The notice provides an expedited process for PHAs to apply for certain waivers and flexibilities when faced with a Presidentially Declared Disaster (PDD) for the calendar years (CYs) 2022 and 2023. The notice is effective from Jan. 1, 2022 to Dec. 31, 2023.

This notice lists the waivers and flexibilities that are available to PHAs, notes that it will consider certain exceptions, and provides instructions on how to submit waiver, flexibility, and exception requests. The following flexibilities and waivers may be requested (please note that the list below is summarized—see the full notice to read the complete descriptions of the waivers):

• Operating Subsidy Flexibility in Approved Vacancies – a PHA is eligible to receive funding for vacant public housing units that are vacant because of a declared disaster, subject to HUD approval. Eligible units will be considered approved for 12 months.
• Uniform Financial Reporting Standards; Filing of Financial Reports; Reporting Compliance Dates – HUD may approve delays to certain financial reporting requirements.
• Public Housing Assessment System – HUD may consider waiving the physical inspection and scoring of public housing projects.
• Cost and Other Limitations; Maximum Project Cost; TDC Limit – HUD may waive total development costs (TDC) and housing cost cap limits for all work funded through the Capital Fund until the next issuance of TDC limits.
• Cost and Other Limitations; Types of Labor – HUD may allow PHAs that are not high-performing to use force account labor for modernization-only activities even with not included in the PHA’s 5-year action plan. This waiver will not exceed a period of 12 months.
• Capital Fund Formula; Replacement Housing Factor to Reflect Formula Need for Projects With Demolition or Disposition Occurring on or After October 1, 1998 and Prior to September 30, 2013 – HUD may allow unexpended Capital Fund Replacement Housing Factor Grants to be used for public housing modernization. This waiver will not exceed a period of 12 months.
• Tenant Selection Policies and Administrative Plan – HUD may waive requirements that a PHA’s Board of Commissioners approves revisions to tenant selection policies and a PHA’s administrative plan if the revisions are temporary, do not exceed a period of 12 months, are not significant amendments, and comply with the PHA’s plan or state law.
• Waiting List; Opening and Closing; Public Notice – HUD may waive the requirement that it must provide public notice when opening and closing its waiting list by posting in a local newspaper of general circulation. It would replace that requirement by an alternative one requiring the PHA to post notice to its website. The waiver will not exceed a period of 12 months.
• HUD Approval of Exception Payment Standard Amount – HUD may approve an exception payment standard that is higher than 110% of the Fair Market Rent.
• Housing Quality Standards; Space and Security – HUD may waive the requirement that units have at least 1 bedroom for every 2 people to house families displaced by natural disasters. The waiver will be in effect for the initial lease term.
• Occupancy of Home – HUD may allow families participating in the homeownership program to continue receiving housing assistance payments even if displaced from their homes.
• Contract of Participation; Contract Extension – HUD may consider authorizing a PHA to extend a family’s contract of participation in a Family Self Sufficiency program for up to 3 years. Any waiver will be in effect for a request made to the PHA during a period of up to 12 months.
• Section 8 Management Assessment Program (SEMAP) – HUD may consider a request to carry forward a PHA’s last SEMAP score.
• Verification of the Social Security – HUD may consider a request to transmit form HUD-50058 within 90 days, instead of the usual 30 days, of the receipt of the applicant’s social security documentation.
• Specific Criteria for HUD Approval of Demolition Requests – for certain Section 18 demolition requests, HUD will accept certain environmental reviews.
• Approval of Demolition – HUD may waive the requirement for a list of specific and detailed work items for certain Section 18 demolition requests.

A PHA may also request an exception to a requirement that is not listed. HUD will consider these requests subject to statutory and regulatory limitations.

To request waivers, if in a Presidentially Declared Disaster area, a PHA should complete Appendix A of the notice and email the completed appendix with supporting documentation to PIH_Disaster_Relief@hud.gov.

The full notice can be accessed here.