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1.9 EXCEPTION AUTHORITY
Exceptions to any requirement of this Handbook, or 7 CFR Part 3555, can be approved in individual cases by the Administrator, or designee, if application of the requirement or failure to take action would either adversely affect the Government’s interest or conflict with the objectives and spirit of the authorizing statute. Any exception must be consistent with the authorizing statute and other applicable laws.
A. Who Can File a Request
Only Agency staff may file a request for an exception. However, lenders can request that the Agency consider submission of a formal request for exception. When asking the Agency to consider requesting an exception, the lender should include documentation that demonstrates how the exception would protect the Government’s interest or maintain consistency with the program’s authorizing statute.
B. What Must Be Included in the Request
The exception request developed by the Agency for the Administrator, or designee, must provide clear and convincing evidence of the need for the exception. At a minimum, the request must include:
x A full explanation of the unique circumstances, including an explanation of any
adverse effect on the Government’s interest if the waiver is not granted;
x A discussion of proposed alternatives considered; and
x A discussion of how the adverse effect will be eliminated or minimized if the
exception is granted.
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C. Where Requests are Submitted
Requests for exceptions are submitted to the Administrator, through the Deputy Administrator, Single Family Housing. Requests may be initiated by:
x The Executive Director, Single Family Housing Guaranteed Loan Program; or
x The Deputy Administrator, Single Family Housing.
Requests for exceptions regarding architectural and engineering, environmental, or civil rights issues will be referred for review and comment to the appropriate technical staff prior to making an exception request of the Administrator.