(A) The director may grant a waiver or variance from any provision of Chapter 5122:3-1 of the Administrative Code, or portion thereof :
(1) Requiring applicant to give or maintain for the benefit of the department prior or subordinate mortgage(s) in project property sufficient to secure the amount of state funds reimbursed by the department for approved project costs. Such waiver or variance may be granted for a period of time determined by the director and may be subject to any condition(s) imposed by the director. However, requests for waivers and variances that, in the director's sole discretion, are determined to impose a risk for adversely affecting the security of the state funds will not be granted.
(2) Requiring the participation of the board in the application process or board resolution to support and monitor the project program.
(B) An applicant shall submit a written request to the department for a waiver or variance. The written request shall state clearly the rationale and need for the requested waiver or variance, and shall provide a comprehensive explanation of how other project underwriting and oversight factors help assure the project's compliance and protect the security of the state funds. Within thirty days of receipt of the written request, the department shall:
(1) Request any additional information or rationale from applicant;
(2) Provide a specific response to the request; or
(3) Provide an estimate to the agency of the timeframe in which the department will be able to provide a specific response to the request.