in two or more Participating Jurisdictions (half of which do not have undue concentrations of low income households) representing at least 50 percent of the area population (e.g., through use of an area wide, regional or state public housing agency; through cooperation or other local administrative agreemetns which provide for inter-jurisdictional use of Section 8 Certificates of Family Participation among Participating Jurisdictions; through elimination of residency preferences or requirements for issuance of Section 8 Existing Certificates in Participating Jurisdictions which participate in the Section 8 Existing Housing Program; or through other administrative mechanisms acceptable to the Secretary which faciliatate interjurisdictional moves under this program, etc.).

(3) Residency preferences or requirements for admission to Low-Income Housing have been eliminated in all Participating Jurisdictions by all PHAS administering a Low-Income Housing Program.

(4) The APO has taken an active role in combating discrimination on the basis of race, color, sex, religion, or national origin in the private housing market within the Plan area (e.g., through participating in the development or implementation of a currently operative voluntary areawide affirmative fair housing marketing agreement with HUD or a similar areawide fair housing marketing program.)

(5) The Plan includes as Participating Jurisdictions 75 to 100 percent of the jurisdictions in the Plan area.

(6) Any other activity or activities, as developed or administered by the APO and acceptable to the Secretary, that address the program objective.

(b) The criteria contained in paragraphs (a)(1) through (a)(5) of this section will be given equal consideration in selecting Approved Plans to serve as the basis for award of special allocations. Consideration of any activity or activities identified by the APO in accordance with paragraph (a)(6) of this section will be at the discretion of the Secretary and will be determined on a case-by-case basis.

§ 891.607 Reporting requirements.

(a) Each APO whose Approved Plan has been selected as the basis for a special allocation during or subsequent to Federal fiscal 1977 shall submit to HUD a report which contains the following information:

(1) The actual distribution of the special allocation among jurisdictions by program and the number of households assisted or to be assisted as a result of the special allocation (for the Section 8 Existing Housing Program, by household type, by race and sex of head of household, and by previous jurisdiction of residence, if known);

(2) Any refinements, amendments, or upgrading of any of the elements of the Approved Plan;

(3) Actions taken by Participating Jurisdictions to implement or to support the implementation of the Plan (e.g., encouragement of developerssponsors; zoning amendments, tax abatement programs; coordination of outreach to eligible families and owners of properties which qualify for the Section 8 Existing Housing Prograni; facilitation of interjurisdictional moves; reservation of water and sewer capacity for assisted housing; development and implementation of complementary Community Developmnent Block Grant or other activities, etc.);

(4) Any increases or decreases in the total number of Participating Jurisdictions or in the number of Participating Jurisdictions covered by HAPS; and

(5) Action(s) taken to meet addition-
criteria
priority
contained in

al § 891.606.

(a) Basic Provision. Upon determination of good cause, the Secretary of Housing and Urban Development may, subject to statutory limitations, waive any provision of this Chapter. Each such waiver shall be in writing and shall be supported by documentation of the pertinent facts and grounds.

(b) Reservation of authority by the Secretary. The authority under Subsection A is reserved to the Secretary and no delegation of this waiver authority shall be effective unless executed subsequent to the June publication date.

[41 FR 22814, June 7, 1976]

Subpart B

§ 899.201 Purpose.

The purpose of this Subpart is to prescribe February 22, 1976, as the effective date for all provisions of the United States Housing Act of 1937, as amended by the Housing and Community Development Act of 1974, (the Act) unless other effective dates are contained in the following regulations:

24 CFR Part 811 Financing. Subpart ATax Exemption of Obligations of Public Housing Agencies (40 FR 50531-50532).

24 CFR Part 860 Income Limits with Respect to. Admission to, and Occupancy of, Low-Income Housing Owned by Public Housing Agencies or Leased by Public Housing Agencies from Private Owners. Subpart B-Admission (40 FR 33445). Subpart DMinimum and Maximum Rent-Income Ratics, and Minimum Rent Requirements (40 FR 44323-44326).

24 CFR Part 866 FHA Owned Projects— Lease and Grievance Procedures. Subpart

A-Dwelling Leases, Procedures and Requirements (40 FR 33402-33406). Subpart B-Grievance Procedures and Requirements (40 FR 33406-33408).

24 CFR Part 880 Section 8 Housing Assistance Payments Program-New Construction (40 FR 18682-18724).

24 CFR Part 881 Section 8 Housing Assistance Payments Program-Substantial Rehabilitation (40 FR 18902-18944).

24 CFR Part 882 Section 8 Housing Asssistance Payments Program-Existing Housing (40 FR 19612-19631).

24 CFR Part 883 Section 8 Housing Assistance Payments Program-Housing Finance and Development Agencies (40 FR 1693416965).

24 CFR Part 888 Section 8 Housing Assistance Payments Program-Fair Market Rents-Contract Rent Automatic Annual Adjustment Factors. New Construction (40 FR 14502-14564). Existing Housing (40 FR

15580-15860).

24 CFR Part 899 Section 8 Housing Assistance Payments Program-Determination of Income for Eligibility and Gross Family Contribution (40 FR 15542-15543).

24 CFR Part 890 Annual Contributions for Operating Subsidy (40 FR 17008-17015).

[41 FR 8056, Feb. 24, 1976. Redesignated at 41 FR 22814, June 7, 1976]

§ 899.202 Effective date of certain provisions of the Act respecting annual contributions contracts.

(a) From and after February 22, 1976, whenever (1) additional dwelling units are to be included in a Public Housing Agency's (PHAS) low-income housing program, (2) a commitment of additional annual contributions is requested or required by a PHA, or (3) a modification or amendment of the annual contributions contract is requested or required by a PHA, the annual contributions contract(s) with the PHA shall be amended to incorporate the following provisions which shall supersede any contractual provisions in conflict therewith:

At least 20 percentum of the dwelling units in any project placed under annual contributions contract in any year after [September 26, 1975, shall be occupied by very low-income families.]

(1) Under section 3(1) of the Act: (2) Under section 4(a) of the Act: (a) such loans [i.e., loans to public housing agencies to help finance or refinance the development, acquisition, or operation of low-income housing projects by

such agencies shall bear interest at a rate specified by the Secretary which shall not be less than a rate determined by the Secre tary of the Treasury taking into consideration the current average market yield on outstanding marketable obligations of the United States with remaining periods to maturity comparable to the average maturities of such loans, plus one-eighth of per centum. • •]

(3) Under section 6(a) of the Act: (a) except in the case of housing predominantly for the elderly, high-rise elevator projects shall not be provided for families with children unless the Secretary makes a determination that there is no practical alternative.

(4) Under section 6(b) of the Act:

(b) ⚫ the cost of construction and equipment of the project (excluding land, demolition, and nondwelling facilities) on which the computation of any annual contributions under this Act may be based shall not exceed by more than 10 per centum the appropriate prototype cost for the area.

(5) Under section 6(c) of the Act:

(c)(1) the Secretary may require the public housing agency to review and revise its maximum income limits if the Secretary determines that changed conditions in the locality makes such revision necessary in achieving the purpose of this Act;

(2) the public housing agency shall determine, and so certify to the Secretary, that each family in the project was admitted in accordance with duly adopted regulations and approved income limits; and the public housing agency shall review the incomes of families living in the project at intervals of two years (or at shorter intervals where the Secretary deem it desirable);

(3) the public housing agency shall promptly notify (i) any applicant determined to be ineligible for admission to the project of the basis for such determination and provide the applicant upon request, within a reasonable time after the determination, is made, with an opportunity for an informal hearing on such determination, and (ii) any applicant determined to be eligible for admission to the project of the approximate date of occupancy insofar as such date can be reasonably determined; and

(4) the public housing agency shall comply with such procedures and requirements as the Secretary may prescribe to assure that sound management practices will be followed in the operation of the projcct, including requirements pertaining to

(A) the establishment of tenant selection criteria designed to assure that, within a reasonable period of time, the project will include families with a broad range of incomes and will avoid concentrations of lowincome and deprived families with serious

social problems, but this shall not permit maintenance of vacancies to await higher income tenants where lower income tenants are available;

(B) the establishment of satisfactory procedures designed to assure the prompt payment and collection of rents and the prompt processing of evictions in the case of nonpayment of rent;

(C) the establishment of effective tenantmanagement relationships designed to assure that satisfactory standards of tenant security and project maintenance are formulated and that the public housing agency (together with tenant councils where they exist) enforces those standards fully and effectively; and

(D) the development by local housing authority managements of viable homeownership opportunity programs for low-income families capable of assuming the responsibilities of homeownership."

(6) Under section 6(d) of the Act:

(d) ** no annual contributions by the Secretary shall be made available for such project [i.e., low-income housing project unless such project (exclusive of any portion there of which is not assisted by annual contributions under this Act) is exempt from all real and personal property taxes levied or imposed by the State, city, county, or other political subdivision; and such contract shall require the public housing agency to make payments in lieu of taxes equal to 10 per centum of the sum of the annual shelter rents charged in such project, or such lesser amount as (i) is prescribed by State law, or (ii) is agreed to by the local governing body in its agreement for local cooperation with the public housing agency required under section 5(e)(2) of this Act, or (iii) is due to failure of a local public body or bodies other than the public housing agency to perform any obligation under such agreement. If any such projects is not exempt from all real and personal property taxes levied, or imposed by the State, city, county, or other political subdivision, .. no annual contributions by the Secretary shall be made available for such project unless and until the State, city, county, or other political subdivision in which such project is situated shall contribute, in the form of cash or tax remission, the amount by which the taxes paid with respect to the project exceed 10 per centum of the annual shelter rents charged in such project."

(7) Under section 6(e) of the Act:

(e) • ⚫ whenever in any year the receipts of a public housing agency in connection with a low-income housing project exceed its expenditures (including debt service, operation, maintenance, establishment of reserves, and other costs and charges), an amount equal to such excess shall be ap

(9) Under section 12 of the Act:

... not less than the wages prevailing in the locality, as determined or adopted (subsequent to a determination under applicable State or local law) by the Secretary, shall be paid to all architects, technical engineers, draftsmen, and technicians employed in the development, and all maintenance laborers and mechanics employed in the operation, of the low-income housing project involved; and not less than the wages prevailing in the locality, as predetermined by the Secretary of Labor pursuant to the DavisBacon Act (49 Stat. 1011), shall be paid to all laborers and mechanics employed in the development of the project involved (including a project with nine or more units assisted under section 8 of this Act, where the public housing agency or the Secretary and

the building or sponsor enter into an agreement for such use before construction or rehabilitation is commenced),

(b) To the extent that the substance of the provisions in paragraph (a) of this section have been found to be consistent with the provisions of section 8 of the Act, the substance of the provisions have been included in the section 8 Housing Assistance Payments Program contracts and regulations. Accordingly, the provisions of paragraph (a) do not apply to the section 8 Housing Assistance Payments Program.

[41 FR 8056, Feb. 24, 1976. Redesignated at 41 FR 22814, June 7, 1976]

§ 899.203 Effective date of all other provisions of the Act.

In addition to the provisions of the Act made effective by the prior regulations cited in § 899.101 and those made effective by § 899.102, all other provisions of the Act are hereby made effective on February 22, 1976, in accordance with their terms.

[41 FR 8056, Feb. 24, 1976. Redesignated at 41 FR 22814, June 7, 1976]