82 FR 20371 - Federal Housing Administration (FHA): Indefinite Deferral of Implementation of the Small Building Risk Sharing Initiative

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Federal Register Volume 82, Issue 82 (May 1, 2017)

This notice advises the public that HUD is deferring implementation of the Small Building Risk Sharing Program authorized by Section 542(b) of the Housing and Community Development Act of 1992, to facilitate the financing of small multifamily properties.

[Federal Register Volume 82, Number 82 (Monday, May 1, 2017)]
[Notices]
[Pages 20371-20372]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-08721]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No.: FR-6017-N-01]


Federal Housing Administration (FHA): Indefinite Deferral of 
Implementation of the Small Building Risk Sharing Initiative

AGENCY: Office of the Assistant Secretary for Housing--Federal Housing 
Commissioner, HUD.

ACTION: Notice.

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SUMMARY: This notice advises the public that HUD is deferring 
implementation of the Small Building Risk Sharing Program authorized by 
Section 542(b) of the Housing and Community Development Act of 1992, to 
facilitate the financing of small multifamily properties.

FOR FURTHER INFORMATION CONTACT: Donald Billingsley, Office of 
Multifamily Housing Programs, Office of Production, Department of 
Housing and Urban Development, 451 7th Street SW., Room 6148, 
Washington, DC 20410; email address [email protected] and 
telephone number (202) 402-7125 (this is not a toll-free number). 
Persons with hearing or speech impairments may access this number 
through TTY by calling the toll-free Federal Relay Service at 800-877-
8339.

SUPPLEMENTARY INFORMATION: The ``Small Building Risk Sharing Initiative 
Final Notice'' (Final Notice) was published on July 16, 2015 at 80 FR 
42105, following an initial notice published for public comment on 
November 4, 2013, at 78 FR 66043. The Final Notice announced 
implementation of an Initiative under the Risk Sharing Program, 
authorized by Section 542(b) of the Housing and Community Development 
Act of 1992, to facilitate the financing of small multifamily 
properties.
    While applications were received pursuant to the Final Notice, HUD 
never implemented the program. In addition, it is not clear whether the 
program is still needed under current economic conditions. HUD 
therefore indefinitely defers the applicability of the Final Notice 
implementing the Small Buildings Risk Sharing Program (the 
``Initiative'') under Section 542(b) of the

[[Page 20372]]

Housing and Community Development Act of 1992 and will not accept 
additional applications at this time. HUD may in the future proceed 
with the program or a revised program; however, HUD would, at a 
minimum, have to determine the following before proceeding:
    (a) If the Initiative is still needed to provide debt financing to 
small, affordable properties, or whether the availability of long-term, 
low-cost permanent financing to support small properties has increased 
substantially since the Initiative was first proposed, specifically 
through new and expanded federally backed financing programs offered 
through Fannie Mae and Freddie Mac;
    (b) The regulatory requirements and restrictions that would be 
imposed on property owners/borrowers participating in the Initiative 
regarding tenant rents and incomes, and whether these requirements 
would impose unfair and inappropriate economic burden on small property 
owners who provide affordable market rents but do not otherwise receive 
a government funded housing subsidy;
    (c) Whether existing Federal Housing Administration multifamily 
lending programs, including the newly expanded Tax Credit Pilot Program 
which supports new construction and substantial rehabilitation 
projects, adequately serve the debt financing needs of small properties 
that support affordable rental housing; and,
    (d) If the provisions of the Initiative as published adequately 
account for HUD's share of risk assumed for loans originated under the 
Initiative, or need to be modified in a revised Initiative notice.

    Dated: April 24, 2017.
Genger Charles,
General Deputy Assistant Secretary for Housing.
[FR Doc. 2017-08721 Filed 4-28-17; 8:45 am]
BILLING CODE 4210-67-P