HUD Hands Out Third-Quarter Housing Rule Waivers
Published Date: 7/6/2026
Notice
Summary
HUD gave special permission to skip some rules for certain housing projects between July and September 2025. This helps speed up work and can save money for developers and communities. If you’re involved in housing or urban projects, these changes might affect your plans and deadlines.
Analyzed Economic Effects
12 provisions identified: 12 benefits, 0 costs, 0 mixed.
Allow New Affordable Housing Construction in Pasadena
HUD waived limits so Harris County (as a CDBG-DR subrecipient) may use transferred program income to complete two new-construction single-family developments totaling 114 units (at least 90 units for low- and moderate-income households). This authority is available through September 30, 2027 for use within the City of Pasadena, Texas.
Count Washington Infrastructure Costs Proportionally
For the State of Washington's 2021 CDBG-DR grant, HUD allowed the State, effective September 29, 2025, to count proportional infrastructure costs toward meeting the 70 percent overall low- and moderate-income (LMI) benefit requirement even when a project's service area has less than 51 percent LMI residents. The State may multiply total project costs by the percentage of LMI persons in the service area, up to the amount of CDBG-DR funds invested.
Extended Reimbursement Deadline in Sarasota
Sarasota County, Florida received a waiver extending the CDBG-DR Homeowner Reimbursement Program application deadline to May 23, 2026 (a second one-year extension). This lets more disaster survivors, especially low- and moderate-income households, apply for reimbursement of eligible pre-application costs.
Asheville Public-Services Cap Suspension Extended
The City of Asheville, North Carolina received a waiver extending the suspension of the CDBG public services cap and the emergency grant payments period from the end of its program year (June 30, 2025) through December 31, 2025. The extension allows emergency grant payments for six months instead of the usual three months and relaxes the usual 15 percent public services cap to address disaster impacts.
StoneHawk Rosehill Noise EIS Waiver
HUD waived the Environmental Impact Statement (EIS) requirement under 24 CFR 51.104(b)(2) for StoneHawk Rosehill, a 269-unit apartment development in Garland, Texas, after finding noise was the sole unmitigated issue. The project will include 27 units at or below 60% AMI, 109 units at or below 80% AMI, and 133 market-rate units; outdoor noise levels reached about 76 dB(A) at some locations.
Winchester Project Noise EIS Waiver
HUD waived the EIS requirement under 24 CFR 51.104(b)(2) for a proposed 247-unit Class A apartment development in Winchester, Virginia, after finding noise was the sole unmitigated environmental issue (projected Day-Night Level 78 dB). The waiver allows the project to proceed with required sound attenuation measures.
Macomb Adds 22 Senior Affordable Units
Macomb County, Michigan received a waiver (granted August 11, 2025) allowing additional HOME funds to be invested in Oakwood Manor Senior Living—midway through its 20‑year affordability period—to add 22 affordable rental units for seniors and expand the community center.
York Housing Authority Can Use Surplus Cash
HUD waived rules so York Housing Authority (Yorkshire Commons) in southern Maine may access excess project funds and use them to pursue new affordable housing projects and to acquire a mobile home park for preservation, enabling expansion of affordable and senior housing in the area.
Bergen County PBV/HAP Eligibility Flexibility
HUD granted waivers of multiple Project-Based Voucher (PBV) and Housing Assistance Payment (HAP) rules to the Housing Authority of Bergen County (HABC) on July 7, 2025, based on HABC showing that the two-bedroom Rental Assistance Demonstration gross rent is less than 30 percent of the relevant family-of-four income benchmark, relaxing certain occupancy and eligibility timing rules.
Owner Equity Calculation Based on LIHTC (Indian Hills)
HUD granted a waiver on July 1, 2025 allowing the proposed owner of the Indian Hills project to calculate owner equity for distribution limits based on the Low-Income Housing Tax Credit (LIHTC) equity they are contributing, rather than on replacement cost; the proposed owner plans to invest about $139,000 in hard rehab costs per unit to recapitalize the property.
Allow Texas GLO to Use 58.90% Provisional Rate
HUD allowed the Texas General Land Office (GLO) to attach and use its provisional indirect cost rate of 58.90 percent in CDBG-DR grant agreements for specified 2021 and 2024 disaster allocations pending a new negotiated indirect cost rate agreement (NICRA). This was granted on September 5, 2025 to avoid delays in recovery implementation.
Extra Time to Become HOME Jurisdiction (Miami Gardens)
The City of Miami Gardens, Florida was granted a waiver on July 7, 2025 to allow extra time for its city council to budget and approve funds needed to meet the HOME program participation threshold tied to a $500,000 allocation rule, enabling the city to complete steps required to become a HOME participating jurisdiction.
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HUD gave special permission to skip some rules from October to December 2025, helping certain housing programs work more smoothly. These waivers affect people and organizations involved in housing, possibly saving time and money by cutting red tape. The list of approved waivers is now public, so everyone knows what changes were made and when.