81 FR 44892 - Notice of HUD-Held Healthcare Loan Sale (HLS 2016-1)
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Federal Register Volume 81, Issue 132 (July 11, 2016)
Federal Register Volume 81, Issue 132 (July 11, 2016)
| Page Range | 44892-44893 | |
| FR Document | 2016-16258 |
[Federal Register Volume 81, Number 132 (Monday, July 11, 2016)] [Notices] [Pages 44892-44893] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-16258] ----------------------------------------------------------------------- DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT [Docket No. FR-5956-N-01] Notice of HUD-Held Healthcare Loan Sale (HLS 2016-1) AGENCY: Office of the Assistant Secretary for Housing--Federal Housing Commissioner, HUD. ACTION: Notice. ----------------------------------------------------------------------- SUMMARY: This notice announces HUD's intention to sell eight (8) unsubsidized healthcare mortgage loans, without Federal Housing Administration (FHA) insurance, in a competitive auction (HLS 2016-1 or Loan Sale) on or about July 20, 2016. This notice also generally describes the bidding process for the sale and certain persons who are ineligible to bid. DATES: A Bidder's Information Package (BIP) will be made available on or about June 22, 2016. Bids for the loans must be submitted on the bid date of July 20, 2016 between certain specified hours. HUD anticipates that an award or awards will be made on or before July 22, 2016. Closing is expected to take place between August 1, 2016 and August 3, 2016. ADDRESSES: To become a qualified bidder and receive the BIP, prospective bidders must complete, execute, and submit a Confidentiality Agreement and a Qualification Statement acceptable to HUD. Both documents will be available on the HUD Web site at www.hud.gov/fhaloansales. Please fax or email as well as mail executed original documents to JS Watkins Realty Partners, LLC: J.S. Watkins Realty Partners, LLC, c/o The Debt Exchange, 133 Federal Street, 10th Floor, Boston, MA 02111, Attention: HLS 2016-1 Sale Coordinator, Fax: 1-978-967-8607, Email: [email protected]. FOR FURTHER INFORMATION CONTACT: John Lucey, Director, Asset Sales Office, Room 3136, U.S. Department of Housing and Urban Development, 451 Seventh Street SW., Washington, DC 20410-8000; telephone 202-402- 3927. Hearing- or speech-impaired individuals may call 202-708-4594 (TTY). These are not toll-free numbers. SUPPLEMENTARY INFORMATION: HUD announces its intention to sell, in HLS 2016-1, eight (8) unsubsidized healthcare mortgage loans (Mortgage Loans) consisting of four first lien notes and four associated 2nd lien notes secured by four nursing home facilities located in Bloomfield, Enfield, Windham, and Hartford, Connecticut. The Mortgage Loans are non-performing mortgage loans. The listing of the Mortgage Loans is included in the BIP. The Mortgage Loans will be sold without FHA insurance and with HUD servicing released. HUD will offer qualified bidders an opportunity to bid competitively on the Mortgage Loans. The Qualification Statement describes the entities/individuals that may be qualified to bid on the Mortgage Loans if they meet certain requirements as detailed in the Qualification Statement. Some entities/ individuals must meet additional requirements in order to be qualified to bid, including but not limited to: Any mortgagee/servicer who originated one or more of the Mortgage Loans; a mortgagor or a operator, with respect to any HUD insured or subsidized mortgage loan (excluding the Mortgage Loans being offered in the Loan Sale) who is currently in default, violation, or noncompliance with one or more of HUD's requirements or business agreements; a limited partner, nonmanaging member, investor and/or shareholder who owns a 1 percent or less interest in one or more the Mortgage Loans, or in the project securing one or more the Mortgage Loans; and any of the aforementioned entities'/individuals' principals, affiliates, family members, and assigns. Interested entities/individuals who fall into one of these categories should review the Qualification Statement to determine whether they may be eligible to qualify to submit a bid on the Mortgage Loans. Other entities/individuals not described herein may also be restricted from bidding on the Mortgage Loans, as fully detailed in the Qualification Statement. The Bidding Process The BIP describes in detail the procedure for bidding in HLS 2016- 1. The BIP also includes a standardized non-negotiable loan sale agreement (Loan Sale Agreement). As part of its bid, each bidder must submit a minimum deposit of the greater of 10 percent of the total bid or $100,000. HUD will evaluate the bids submitted and determine the successful bid(s) in its sole and absolute discretion. If a bidder is successful, the bidder's deposit will be non-refundable and will be applied toward the purchase price, with any amount beyond the purchase price being returned to the bidder. Deposits will be returned to unsuccessful bidders. Closings are expected to take place between August 1, 2016 and August 3, 2016. These are the essential terms of sale. The Loan Sale Agreement, which is [[Page 44893]] included in the BIP, contains additional terms and details. To ensure a competitive bidding process, the terms of the bidding process and the Loan Sale Agreement are not subject to negotiation. Due Diligence Review The BIP describes the due diligence process for reviewing loan files in HLS 2016-1. Qualified bidders will be able to access loan information remotely via a high-speed Internet connection. Further information on performing due diligence review of the Mortgage Loans is provided in the BIP. Mortgage Loan Sale Policy HUD reserves the right to reject any and all bids, in whole or in part, without prejudice to HUD's right to include the Mortgage Loans in a later sale. The Mortgage Loans will not be withdrawn after the award date except as is specifically provided for in the Loan Sale Agreement. This is a sale of unsubsidized mortgage loans, pursuant to Section 204(a) of the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act of 1997, (12 U.S.C. 1715z-11a(a)). Mortgage Loan Sale Procedure HUD selected a competitive sale as the method to sell the Mortgage Loan. This method of sale optimizes HUD's return on the sale of these Mortgage Loans, affords the greatest opportunity for all qualified bidders to bid on the Mortgage Loans, and provides the quickest and most efficient vehicle for HUD to dispose of the Mortgage Loans. Bidder Eligibility In order to bid in the sale, a prospective bidder must complete, execute and submit both a Confidentiality Agreement and a Qualification Statement acceptable to HUD. The following individuals and entities are among those ineligible to bid on the Mortgage Loans being sold in HLS 2016-1: 1. A mortgagor or operator with respect to one or more the Mortgage Loans being offered in the Loan Sale, or an Active Shareholder (as such term is defined in the Qualification Statement); 2. Any individual or entity, and any Related Party (as such term is defined in the Qualification Statement) of such individual or entity, that is a mortgagor or operator with respect to any of HUD's multifamily and/or healthcare programs (excluding the Mortgage Loans being offered in the Loan Sale) and that has failed to file financial statements or is otherwise in default under such mortgage loan or is in violation or noncompliance of any regulatory or business agreements with HUD and fails to cure such default or violation by no later than July 6, 2016; 3. Any individual or entity that is debarred, suspended, or excluded from doing business with HUD pursuant to 2 CFR part 2424; 4. Any contractor, subcontractor and/or consultant or advisor (including any agent, employee, partner, director, principal or affiliate of any of the foregoing) who performed services for, or on behalf of, HUD in connection with HLS 2016-1; 5. Any employee of HUD, a member of such employee's family, or an entity owned or controlled by any such employee or member of such an employee's family; 6. Any individual or entity that uses the services, directly or indirectly, of any person or entity ineligible under provisions (3) through (5) above to assist in preparing its bid on any Mortgage Loan. 7. An FHA-approved mortgagee, including any principals, affiliates, or assigns thereof, that has received FHA insurance benefits for the one or more of the Mortgage Loans being offered in the Loan Sale; 8. An FHA-approved mortgagee and/or loan servicer, including any principals, affiliates, or assigns thereof, that originated one ore more of the Mortgage Loans being offered in the Loan Sale if the Mortgage Loan defaulted within two years of origination and resulted in the payment of an FHA insurance claim; 9. Any affiliate, principal or employee of any person or entity that, within the two-year period prior to July 1, 2016, serviced any Mortgage Loan or performed other services for or on behalf of HUD; 10. Any contractor or subcontractor to HUD that otherwise had access to information concerning any Mortgage Loan on behalf of HUD or provided services to any person or entity which, within the two-year period prior to July 1, 2016, had access to information with respect to the Mortgage Loan on behalf of HUD; 11. Any employee, officer, director or any other person that provides or will provide services to the prospective bidder with respect to the Mortgage Loans during any warranty period established for the Loan Sale, that serviced the Mortgage Loans or performed other services for or on behalf of HUD or within the two-year period prior to July 1, 2016, provided services to any person or entity which serviced, performed services or otherwise had access to information with respect to any Mortgage Loan for or on behalf of HUD. Other entities/individuals not described herein may also be restricted from bidding on the Mortgage Loans, as fully detailed in the Qualification Statement. The Qualification Statement provides further details pertaining to eligibility requirements. Prospective bidders should carefully review the Qualification Statement to determine whether they are eligible to submit bids on the Mortgage Loans in HLS 2016-1. Freedom of Information Act Requests HUD reserves the right, in its sole and absolute discretion, to disclose information regarding HLS 2016-1, including, but not limited to, the identity of any successful bidder and its bid price or bid percentage for the Mortgage Loans, upon the closing of the sale of the Mortgage Loans. Even if HUD elects not to publicly disclose any information relating to HLS 2016-1, HUD will have the right to disclose any information that HUD is obligated to disclose pursuant to the Freedom of Information Act and all regulations promulgated thereunder. Scope of Notice This notice applies to HLS 2016-1 and does not establish HUD's policy for the sale of other mortgage loans. Dated: June 29, 2016. Edward L. Golding, Principal Deputy Assistant Secretary for Housing. [FR Doc. 2016-16258 Filed 7-8-16; 8:45 am] BILLING CODE 4210-67-P
![44892 Federal Register / Vol. 81, No. 132 / Monday, July 11, 2016 / Notices
the data available for statistical, purposes for which the data were (License). Upon receipt of such
research, or evaluation purposes for provided or are maintained, but only if assurance of qualification and
qualified organizations capable of the data are used and protected in capability, it is hereby agreed between
research and analysis consistent with accordance with the terms and HUD and (Name of the organization to
the statistical, research, or evaluation conditions stated in this license be licensed) that the license be granted.
ESTIMATION OF THE TOTAL NUMBER OF HOURS NEEDED TO PREPARE THE INFORMATION COLLECTION INCLUDING NUMBER
OF RESPONDENTS, FREQUENCY OF RESPONSE, AND HOURS OF RESPONSE
Number of Total annual Hours per
Instrument Total hours
respondents responses response
Applicants ........................................................................................................ 12 12 1 12
Quarterly Reports ............................................................................................ 0 0 0 0
Annual Reports ................................................................................................ 40 40 1 40
Final Reports ................................................................................................... 6 6 .25 1.5
Recordkeeping ................................................................................................. 12 36 0.5 18
Total .......................................................................................................... 12 94 2.75 71.5
Status of the proposed information HUD. Both documents will be available respect to any HUD insured or
collection: Pending OMB approval. on the HUD Web site at www.hud.gov/ subsidized mortgage loan (excluding the
Authority: Title 13 U.S.C. Section 9(a), and fhaloansales. Please fax or email as well Mortgage Loans being offered in the
Title 12, U.S.C., Section 1701z–1 et seq. as mail executed original documents to Loan Sale) who is currently in default,
JS Watkins Realty Partners, LLC: J.S. violation, or noncompliance with one or
Dated: June 29, 2016.
Watkins Realty Partners, LLC, c/o The more of HUD’s requirements or business
Katherine M. O’Regan,
Debt Exchange, 133 Federal Street, 10th agreements; a limited partner,
Assistant Secretary, Office of Policy Floor, Boston, MA 02111, Attention: nonmanaging member, investor and/or
Development and Research.
HLS 2016–1 Sale Coordinator, Fax: 1– shareholder who owns a 1 percent or
[FR Doc. 2016–16344 Filed 7–8–16; 8:45 am] 978–967–8607, Email: hls2016–1@ less interest in one or more the Mortgage
BILLING CODE 4210–67–P debtx.com. Loans, or in the project securing one or
FOR FURTHER INFORMATION CONTACT: John more the Mortgage Loans; and any of the
Lucey, Director, Asset Sales Office, aforementioned entities’/individuals’
DEPARTMENT OF HOUSING AND
Room 3136, U.S. Department of Housing principals, affiliates, family members,
URBAN DEVELOPMENT
and Urban Development, 451 Seventh and assigns.
[Docket No. FR–5956–N–01] Street SW., Washington, DC 20410– Interested entities/individuals who
8000; telephone 202–402–3927. fall into one of these categories should
Notice of HUD-Held Healthcare Loan review the Qualification Statement to
Hearing- or speech-impaired individuals
Sale (HLS 2016–1) determine whether they may be eligible
may call 202–708–4594 (TTY). These
AGENCY: Office of the Assistant are not toll-free numbers. to qualify to submit a bid on the
Secretary for Housing—Federal Housing SUPPLEMENTARY INFORMATION: HUD Mortgage Loans. Other entities/
Commissioner, HUD. announces its intention to sell, in HLS individuals not described herein may
ACTION: Notice. 2016–1, eight (8) unsubsidized also be restricted from bidding on the
healthcare mortgage loans (Mortgage Mortgage Loans, as fully detailed in the
SUMMARY: This notice announces HUD’s Loans) consisting of four first lien notes Qualification Statement.
intention to sell eight (8) unsubsidized and four associated 2nd lien notes
healthcare mortgage loans, without The Bidding Process
secured by four nursing home facilities
Federal Housing Administration (FHA) located in Bloomfield, Enfield, The BIP describes in detail the
insurance, in a competitive auction Windham, and Hartford, Connecticut. procedure for bidding in HLS 2016–1.
(HLS 2016–1 or Loan Sale) on or about The Mortgage Loans are non-performing The BIP also includes a standardized
July 20, 2016. This notice also generally mortgage loans. The listing of the non-negotiable loan sale agreement
describes the bidding process for the Mortgage Loans is included in the BIP. (Loan Sale Agreement).
sale and certain persons who are The Mortgage Loans will be sold As part of its bid, each bidder must
ineligible to bid. without FHA insurance and with HUD submit a minimum deposit of the
DATES: A Bidder’s Information Package servicing released. HUD will offer greater of 10 percent of the total bid or
(BIP) will be made available on or about qualified bidders an opportunity to bid $100,000. HUD will evaluate the bids
June 22, 2016. Bids for the loans must competitively on the Mortgage Loans. submitted and determine the successful
be submitted on the bid date of July 20, The Qualification Statement describes bid(s) in its sole and absolute discretion.
2016 between certain specified hours. the entities/individuals that may be If a bidder is successful, the bidder’s
HUD anticipates that an award or qualified to bid on the Mortgage Loans deposit will be non-refundable and will
awards will be made on or before July if they meet certain requirements as be applied toward the purchase price,
22, 2016. Closing is expected to take detailed in the Qualification Statement. with any amount beyond the purchase
sradovich on DSK3GDR082PROD with NOTICES
place between August 1, 2016 and Some entities/individuals must meet price being returned to the bidder.
August 3, 2016. additional requirements in order to be Deposits will be returned to
ADDRESSES: To become a qualified qualified to bid, including but not unsuccessful bidders. Closings are
bidder and receive the BIP, prospective limited to: expected to take place between August
bidders must complete, execute, and Any mortgagee/servicer who 1, 2016 and August 3, 2016.
submit a Confidentiality Agreement and originated one or more of the Mortgage These are the essential terms of sale.
a Qualification Statement acceptable to Loans; a mortgagor or a operator, with The Loan Sale Agreement, which is
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![Federal Register / Vol. 81, No. 132 / Monday, July 11, 2016 / Notices 44893
included in the BIP, contains additional otherwise in default under such serviced, performed services or
terms and details. To ensure a mortgage loan or is in violation or otherwise had access to information
competitive bidding process, the terms noncompliance of any regulatory or with respect to any Mortgage Loan for
of the bidding process and the Loan Sale business agreements with HUD and fails or on behalf of HUD.
Agreement are not subject to to cure such default or violation by no Other entities/individuals not
negotiation. later than July 6, 2016; described herein may also be restricted
3. Any individual or entity that is from bidding on the Mortgage Loans, as
Due Diligence Review debarred, suspended, or excluded from fully detailed in the Qualification
The BIP describes the due diligence doing business with HUD pursuant to 2 Statement.
process for reviewing loan files in HLS CFR part 2424; The Qualification Statement provides
2016–1. Qualified bidders will be able 4. Any contractor, subcontractor and/ further details pertaining to eligibility
to access loan information remotely via or consultant or advisor (including any requirements. Prospective bidders
a high-speed Internet connection. agent, employee, partner, director, should carefully review the
Further information on performing due principal or affiliate of any of the Qualification Statement to determine
diligence review of the Mortgage Loans foregoing) who performed services for, whether they are eligible to submit bids
is provided in the BIP. or on behalf of, HUD in connection with on the Mortgage Loans in HLS 2016–1.
HLS 2016–1;
Mortgage Loan Sale Policy 5. Any employee of HUD, a member Freedom of Information Act Requests
HUD reserves the right to reject any of such employee’s family, or an entity HUD reserves the right, in its sole and
and all bids, in whole or in part, owned or controlled by any such absolute discretion, to disclose
without prejudice to HUD’s right to employee or member of such an information regarding HLS 2016–1,
include the Mortgage Loans in a later employee’s family; including, but not limited to, the
sale. The Mortgage Loans will not be 6. Any individual or entity that uses identity of any successful bidder and its
withdrawn after the award date except the services, directly or indirectly, of bid price or bid percentage for the
as is specifically provided for in the any person or entity ineligible under Mortgage Loans, upon the closing of the
Loan Sale Agreement. provisions (3) through (5) above to assist sale of the Mortgage Loans. Even if HUD
This is a sale of unsubsidized in preparing its bid on any Mortgage elects not to publicly disclose any
mortgage loans, pursuant to Section Loan. information relating to HLS 2016–1,
204(a) of the Departments of Veterans 7. An FHA-approved mortgagee, HUD will have the right to disclose any
Affairs and Housing and Urban including any principals, affiliates, or information that HUD is obligated to
Development, and Independent assigns thereof, that has received FHA disclose pursuant to the Freedom of
Agencies Appropriations Act of 1997, insurance benefits for the one or more Information Act and all regulations
(12 U.S.C. 1715z–11a(a)). of the Mortgage Loans being offered in promulgated thereunder.
the Loan Sale;
Mortgage Loan Sale Procedure 8. An FHA-approved mortgagee and/ Scope of Notice
HUD selected a competitive sale as or loan servicer, including any This notice applies to HLS 2016–1
the method to sell the Mortgage Loan. principals, affiliates, or assigns thereof, and does not establish HUD’s policy for
This method of sale optimizes HUD’s that originated one ore more of the the sale of other mortgage loans.
return on the sale of these Mortgage Mortgage Loans being offered in the
Loans, affords the greatest opportunity Loan Sale if the Mortgage Loan Dated: June 29, 2016.
for all qualified bidders to bid on the defaulted within two years of Edward L. Golding,
Mortgage Loans, and provides the origination and resulted in the payment Principal Deputy Assistant Secretary for
quickest and most efficient vehicle for of an FHA insurance claim; Housing.
HUD to dispose of the Mortgage Loans. 9. Any affiliate, principal or employee [FR Doc. 2016–16258 Filed 7–8–16; 8:45 am]
of any person or entity that, within the BILLING CODE 4210–67–P
Bidder Eligibility two-year period prior to July 1, 2016,
In order to bid in the sale, a serviced any Mortgage Loan or
prospective bidder must complete, performed other services for or on DEPARTMENT OF THE INTERIOR
execute and submit both a behalf of HUD;
Confidentiality Agreement and a 10. Any contractor or subcontractor to National Park Service
Qualification Statement acceptable to HUD that otherwise had access to
HUD. The following individuals and information concerning any Mortgage [NPS–WASO–NAGPRA–21438;
PPWOCRADN0–PCU00RP14.R50000]
entities are among those ineligible to bid Loan on behalf of HUD or provided
on the Mortgage Loans being sold in services to any person or entity which, Notice of Inventory Completion: Texas
HLS 2016–1: within the two-year period prior to July Archeological Research Laboratory,
1. A mortgagor or operator with 1, 2016, had access to information with Austin, TX
respect to one or more the Mortgage respect to the Mortgage Loan on behalf
Loans being offered in the Loan Sale, or of HUD; AGENCY: National Park Service, Interior.
an Active Shareholder (as such term is 11. Any employee, officer, director or ACTION: Notice.
defined in the Qualification Statement); any other person that provides or will
2. Any individual or entity, and any provide services to the prospective SUMMARY: The Texas Archeological
Related Party (as such term is defined in bidder with respect to the Mortgage Research Laboratory (TARL) has
sradovich on DSK3GDR082PROD with NOTICES
the Qualification Statement) of such Loans during any warranty period completed an inventory of human
individual or entity, that is a mortgagor established for the Loan Sale, that remains and associated funerary objects,
or operator with respect to any of HUD’s serviced the Mortgage Loans or in consultation with the appropriate
multifamily and/or healthcare programs performed other services for or on Indian tribes or Native Hawaiian
(excluding the Mortgage Loans being behalf of HUD or within the two-year organizations, and has determined that
offered in the Loan Sale) and that has period prior to July 1, 2016, provided there is no cultural affiliation between
failed to file financial statements or is services to any person or entity which the human remains and associated
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Document Created: 2016-07-09 00:21:44
Document Modified: 2016-07-09 00:21:44
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| Action | Notice. | |
| Dates | A Bidder's Information Package (BIP) will be made available on or about June 22, 2016. Bids for the loans must be submitted on the bid date of July 20, 2016 between certain specified hours. HUD anticipates that an award or awards will be made on or before July 22, 2016. Closing is expected to take place between August 1, 2016 and August 3, 2016. | |
| Contact | John Lucey, Director, Asset Sales Office, Room 3136, U.S. Department of Housing and Urban Development, 451 Seventh Street SW., Washington, DC 20410-8000; telephone 202-402- 3927. Hearing- or speech-impaired individuals may call 202-708-4594 (TTY). These are not toll-free numbers. | |
| FR Citation | 81 FR 44892 |
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