HUD Waives Housing Rules: Who Got a Pass?
Published Date: 3/28/2025
Notice
Summary
HUD has approved special permission to skip or change some rules from July to September 2024. These waivers affect people and organizations working with housing programs, making it easier or faster to get things done. Keep an eye out for deadlines and possible money-saving chances tied to these changes!
Analyzed Economic Effects
15 provisions identified: 15 benefits, 0 costs, 0 mixed.
More flexible HOME tenant-based rental assistance
For persons displaced by the listed declared disasters, HUD waived parts of HOME TBRA rules so participating jurisdictions can: start a TBRA contract on a date other than the lease start, exceed the usual TBRA subsidy cap for those disaster-displaced families, and relax certain housing quality standard requirements for leased units. These waivers apply for 24 months after the participating jurisdiction notifies HUD of its intent to use them and require FEMA registration or other documentation of displacement.
Extended FHA 203(h) application period for Maui wildfire victims
HUD temporarily waived the one-year filing requirement under 24 CFR 203.18(e)(3) so homeowners whose homes were destroyed in the Maui wildfire (DR-4724-HI) can file applications for FHA 203(h) mortgage insurance through August 10, 2025. The waiver was granted on August 9, 2024 and extends the application window by one year beyond the prior deadline.
HOME income self-certification for disaster victims
If your HOME-assisted housing was damaged or you were displaced by one of the declared disasters listed, participating jurisdictions may accept a signed self-certification of household size and income instead of source documents when income records were destroyed or inaccessible. This option is available only to families displaced by the disaster (documented by FEMA registration) and remains in effect for six months from the date the participating jurisdiction notifies HUD of its intent to use the waiver.
100% HOME match reduction for disaster areas
HUD approved a 100 percent reduction of the HOME matching contribution requirement for participating jurisdictions located in the declared-disaster areas for HOME funds expended from October 1, 2023 through September 30, 2025. This applies to participating jurisdictions and State-funded HOME projects located in those declared-disaster areas.
Relaxed HOME property standards for disaster repairs
HUD waived certain HOME property standard requirements for repair of properties damaged by the declared disasters so long as HOME funds are committed within two years of the participating jurisdiction's notice to HUD. Units still must meet State and local health and safety codes, and lead-safe housing rules and certain accessibility requirements remain in effect.
Shorter HOME affordability for destroyed Hawaii projects
HUD granted the State of Hawaii permission to reduce the HOME affordability periods for two wildfire-destroyed projects (West Maui Resource Center and Kahoma Residential Subdivision) to each property's useful life. HUD said this avoids requiring the State to repay its HOME account, allowing the State to keep resources to address urgent housing needs.
HOME rent limits not applied where rental assistance pays higher rent
HUD granted Puerto Rico authority to immediately implement a determination that HOME rent limits at 24 CFR 92.252(a) do not apply to payments provided under a Federal or State rental assistance or subsidy program for the Santa Juanita Elderly project. This lets the project receive the rent amount determined under a Section 8 HAP contract even if it exceeds HOME rent limits.
CDBG-DR pre-application reimbursement deadline extended to May 23, 2025
For CDBG-DR funds awarded under the 2023 Appropriations Act to Sarasota County, FL and Volusia County, FL for 2022 major disasters, HUD extended the deadline to reimburse eligible pre-application and pre-award costs from May 23, 2024 to May 23, 2025. The waiver allows those counties to reimburse homeowners, renters, businesses, and other qualifying entities for disaster-related costs incurred through May 23, 2025 for reimbursement programs funded under that Act.
Hospital refinancing waiver for Anniston health authority
HUD granted a waiver of 24 CFR 242.1 to allow the Health Care Authority of the City of Anniston to refinance certain debt with a Section 223(f)/242 HUD-insured loan, despite a small portion of the debt not strictly meeting HUD's Capital Debt definition. The waiver was granted July 19, 2024 to enable the hospital refinancing to close.
Permitting multi-dwelling manufactured homes now
HUD granted an industry-wide regulatory waiver (24 CFR 3282.14(b) and 3282.8(l)) to allow approval of multi-dwelling unit manufactured home designs and provided an Industry-Wide Alternative Construction letter so manufacturers could produce multi-dwelling manufactured homes before the final rule's effective date of March 17, 2025. The waiver was granted September 5, 2024.
Easier documentation rules for homeless HCV access in Glens Falls
HUD granted the City of Glens Falls Housing Authority waivers of verification rules (24 CFR 982.201(e) and 983.251(a)(2)) to ease access for people experiencing homelessness who have difficulty obtaining birth certificates, Social Security cards, and income documents. HUD noted that when the HCV waiting list opened in March 2024 the authority received 489 applicants in 5 days (127 homeless), and the 2024 Point-in-Time count was 529 versus 332 in 2023 (a 59.3 percent increase).
Use PHA utility allowances for specific HOME projects
HUD allowed specific HOME-assisted rental projects (including Girasol Project, Pioneer Cottages, Chesley Mutual Housing, Laurel at Perennial Park Phase II, and Burbank Avenue Apartments) to use the local public housing agency utility allowance instead of separate HOME utility calculation rules to set tenant rent. The waivers were granted because it is administratively burdensome to apply two different utility allowances to a single unit.
Extra time to meet $500,000 HOME participation threshold
HUD granted waiver requests from several cities (Bowling Green, KY; Cape Coral, FL; Homestead, FL; Madera, CA) to allow additional time for their governing bodies to budget and approve funding needed to meet the $500,000 HOME participation threshold specified in 24 CFR 92.103(b)(3). HUD accepted later evidence (e.g., the City's August 7, 2024 resolution for Madera) as compliance with the threshold requirement.
Temporary net worth waiver for Hope Federal Credit Union
HUD temporarily waived the FHA single-family lender net worth requirement at 24 CFR 202.5(n)(3) for Hope Federal Credit Union for Fiscal Years 2022 and 2023, finding HFCU met equivalent NCUA 'Well Capitalized' standards when including NCUA-allowed secondary capital. The waiver was granted July 17, 2024 to align HUD standards with NCUA regulatory capital treatment.
Project-specific utility allowances to reduce HAP
HUD allowed the Fairfax County Redevelopment and Housing Authority to adopt a project-specific utility allowance under 24 CFR 983.301(f)(4), which the authority said will better match actual consumption, encourage utility conservation, and reduce Housing Assistance Payment (HAP) amounts paid by the PHA. HUD granted the waiver on July 5, 2024.
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