Sec. 05.10.02.03. Standards for Exemptions

A. The Secretary may grant exemptions under Regulation .02 of this chapter to:

(1) Diminish the burdens on a project owner of complying with similar requirements in federal law and in the Act when compliance with both sets of requirements would not provide any appreciable benefit to assisted tenants beyond compliance with the federal law; or

(2) Prevent the inconsistent or inequitable application of federal law and the Act to a property owner, when compliance with both sets of requirements would:

(a) Be impossible due to conflicts between the requirements;

(b) Impose inequitably duplicative high costs or burdens on the property owner; or

(c) Otherwise result in an unreasonable application of the requirements or procedures of the Act on the property owner considering full compliance with federal law.

B. The following factors shall be taken into consideration in determining whether to grant an exemption:

(1) Type of protected action;

(2) Size and location of the project;

(3) Nature of the assisted households of the project;

(4) Availability of other assisted housing in the area, including whether tenant based rental assistance will be available and accepted at these projects;

(5) Extent of benefit to the assisted tenants which would be retained as a result of the exemption;

(6) Availability of alternative rental subsidies or other assistance to tenants for use at the project;

(7) Provision by the project owner of notices and other benefits to the tenants beyond the requirements of the Act;

(8) Compliance by the owner with requirements of federal law relating to the protected action or tenant benefits generally;

(9) Extent of conflicts which would result from the owner’s full compliance with federal law and the Act;

(10) Extent of costs or other burdens on the owner which would result from full compliance with federal law and the Act; or

(11) Other relevant factors as determined by the Secretary.

C. Additional Requirements.

(1) Provide a portion of the benefits set forth in the Act;

(2) Accept the use by assisted households of rental assistance at the project for a certain period following the protected action;

(3) Provide, as is appropriate, other benefits to all or a portion of the assisted households;

(4) Provide initial or supplemental notices to the tenants, containing some or all of the information required by §7-202(b) of the Act, as applicable to the exemption conditions being imposed and for such length of time before the protected action as the Secretary determines is necessary and desirable to carry out the purposes of the Act; or

(5) Execute a written agreement specifying, or provide other assurances of compliance by the owner with, any conditions required in connection with the granting of an exemption.

D. Failure by the owner to comply with any conditions shall be grounds for the Secretary to withdraw the exemption and require the owner to comply fully with all requirements of the Act.