82_FR_42147 82 FR 41977 - 60-Day Notice of Proposed Information Collection: HUD Multifamily Rental Project Closing Documents

82 FR 41977 - 60-Day Notice of Proposed Information Collection: HUD Multifamily Rental Project Closing Documents

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Federal Register Volume 82, Issue 170 (September 5, 2017)

Page Range41977-41980
FR Document2017-18742

HUD is seeking approval from the Office of Management and Budget (OMB) for the information collection described below. In accordance with the Paperwork Reduction Act, HUD is requesting comments from all interested parties on the proposed collection of information. The purpose of this notice is to allow for 60 days of public comment.

Federal Register, Volume 82 Issue 170 (Tuesday, September 5, 2017)
[Federal Register Volume 82, Number 170 (Tuesday, September 5, 2017)]
[Notices]
[Pages 41977-41980]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-18742]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-6001-N-28]


60-Day Notice of Proposed Information Collection: HUD Multifamily 
Rental Project Closing Documents

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

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: HUD is seeking approval from the Office of Management and 
Budget (OMB) for the information collection described below. In 
accordance with the Paperwork Reduction Act, HUD is requesting comments 
from all interested parties on the proposed collection of information. 
The purpose of this notice is to allow for 60 days of public comment.

DATES: Comments Due Date: November 6, 2017.

ADDRESSES: Interested persons are invited to submit comments regarding 
this proposal. Comments should refer to the proposal by name and/or OMB 
Control Number and should be sent to: Colette Pollard, Reports 
Management Officer, QDAM, Department of Housing and Urban Development, 
451 7th Street SW., Room 4176, Washington, DC 20410-5000; telephone 
202-402-3400 (this is not a toll-free number) or email at 
[email protected] for a copy of the proposed forms or other 
available information. Persons with hearing or speech impairments may 
access this number through TTY by calling the toll-free Federal Relay 
Service at (800) 877-8339.

FOR FURTHER INFORMATION CONTACT: Sylvia S. Chatman, Housing Program 
Manager, Office of Multifamily Production, [email protected], 
202-402-2994, Department of Housing and Urban Development, 451 7th 
Street SW., Washington, DC 20410. 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.
    Copies of available documents to be submitted to OMB may be found 
at: http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/mfh/mfhclosingdocuments.

SUPPLEMENTARY INFORMATION: This notice informs the public that HUD is 
seeking approval from OMB for the information collection described in 
Section A.

A. Overview of Information Collection

    Title of Information Collection: HUD Multifamily Rental Project 
Closing Documents.
    OMB Approval Number: 2502-0598.
    Type of Request: Extension of currently approved collection and 
implementation of two new forms.
    Form Numbers: HUD-91710M, HUD-91712M, HUD-92023M, HUD-92070M, HUD-
92223M, HUD-92412M, HUD-92414M, HUD-92450M, HUD-92452A-M, HUD-92452M, 
HUD-92455M, HUD-92456M, HUD-91073M, HUD-92464M, HUD-92476.1M, HUD-
92476a-M, HUD-92477M, HUD-92478M, HUD-92479M, HUD-91725M, HUD-91725M-
CERT, HUD-91725M-INST, HUD-92434M, HUD-92442M, HUD-92466M, HUD-92554M, 
HUD-94000M, HUD-94001M, HUD-93305M, HUD-92476M, HUD-92420M, HUD-92408M, 
HUD-91070M, HUD-91071M, HUD-92907, HUD-92908
    Description of the need for the information and proposed use: The 
Closing Documents were revised to: provide clarification, improve 
readability, ensure consistency across the documents, correct 
previously provided information, and to reflect the 2016 MAP Guide and 
the FHA Multifamily Closing Guide. The following is a discussion of 
noteworthy changes to certain of the Closing Documents, and an 
explanation of two new Closing Documents.

Revisions to the Closing Documents

Regulatory Agreement, HUD-92466M
    Given that the definitions of ``Principal'' and ``Affiliate'' no 
longer appear at 24 CFR 200.215 following changes to HUD's Previous 
Participation Rule, HUD proposes to add the prior definition of 
Principal and Affiliate from 24 CFR 200.215 as defined terms.
    HUD proposes to reincorporate the definition of ``Residual 
Receipts'' into the form. The term means certain funds which are 
restricted in their use by

[[Page 41978]]

Program Obligations and applicable business documents (e.g., HAP 
Contract, Use Agreement) as may be more specifically described in the 
Residual Receipts Rider attached to the Regulatory Agreement. This 
definition has been reincorporated because a number of HUD loan 
documents make reference to Residual Receipts, including some documents 
that refer to the Regulatory Agreement as the source of the definition. 
However, because the source of Residual Receipts requirements now 
ultimately lies in programs other than FHA insurance (e.g., in 
connection with certain Section 8 HAP contracts), the definition for 
purposes of this document does not describe all instances when Residual 
Receipts would apply nor does it precisely describe the method for 
calculating Residual Receipts. Instead the definition makes reference 
to such other potential sources of Residual Receipts requirements, as 
may be more particularly described in an attached Residual Receipts 
Rider.
Note, HUD-94001M
    HUD proposes to add alternative language for bifurcated notes for 
consistency with the MAP Guide policy allowing for such financing 
structures.
Lender's Certificate, HUD-92434M
    HUD proposes to add a new paragraph concerning No Material Adverse 
Changes for consistency with similar language in the Firm Commitment 
templates issued through Housing Notice 2016-06.
    HUD proposes the attachment of a new exhibit for the Reserve for 
Replacement funding schedule generated during the mortgage insurance 
application stage and attached to the Firm Commitment. The schedule 
represents the amounts that lenders must collect from borrowers during 
insured loan servicing unless other amounts are approved in writing by 
HUD pursuant to Program Obligations.
    HUD proposes to add a restriction formerly contained in the 
Instructions of Borrower's Counsel relating to lenders' due diligence 
obligations concerning certificates, permits, licenses, etc., that is 
more appropriate for the Lender's Certificate.
    HUD proposes to add a new section for transactions involving cash-
collateralized tax-exempt bonds combined with 4% Low Income Housing Tax 
Credits for consistency with the MAP Guide and current HUD practice.
Request for Endorsement of Credit Instrument, HUD-92455M
Certificate of Lender (HUD-92455M, Section I)
    HUD proposes to add a new paragraph concerning No Material Adverse 
Changes for consistency with similar language in the Firm Commitment 
templates issued through Housing Notice 2016-06.
    HUD proposes the attachment of a new exhibit for Reserve for 
Replacement funding schedule generated during the mortgage insurance 
application stage and attached to the Firm Commitment. The schedule 
represents the amounts that lenders must collect from borrowers during 
insured loan servicing unless other amounts are approved in writing by 
HUD pursuant to Program Obligations.
    HUD proposes to add a restriction formerly contained in the 
Instructions to Opinion of Borrower's Counsel relating to lenders' due 
diligence obligations concerning certificates, permits, licenses, etc., 
that is more appropriate for the Lender's Certificate.
    HUD proposes to add a new section for transactions involving cash-
collateralized tax-exempt bonds combined with 4% Low Income Housing Tax 
Credits for consistency with the MAP Guide and current HUD practice.
    HUD proposes to add a new certification moved from the Instructions 
to Opinion of Borrower's Counsel relating to lender consent for any 
secondary financing.
Certificate of Borrower (HUD-92455M, Section II)
    Completion of construction certification was enhanced to have the 
Borrower certify to the level of craftsmanship used to complete the 
repairs.
    The following certifications were typically given separately from 
the Certificate of Borrower and collected at closing: Certification of 
Schedule of Accounts Payable, Certification of Rent Roll, Certification 
of Tenant Security Deposits. These certifications have now been 
incorporated into this document in order to reduce the number of 
separate documents collected at closing.
Opinion of Borrower's Counsel, HUD-91725M; Instructions, HUD-91725M-
INST; Exhibit A, HUD-91725M-CERT
    HUD proposes separate paragraphs related to bond, tax credit, 
secondary financing, and Public Entity Agreement (PEA) for 
clarification. The definition of PEA now includes public secondary 
financing; private secondary financing is a separate paragraph. There 
are separate opinions concerning supremacy of Primary/Supporting Loan 
for each of these matters.
    HUD proposes to add a new paragraph under documents reviewed to 
clarify (as stated in existing Instructions) that all transaction 
documents must be included.
    HUD proposes to add a new paragraph under opinions for required 
state or deal specific opinions.
    HUD proposes that Borrower's Counsel must review all organizational 
documents within Borrower's organizational structure, as is legally 
necessary, to establish the authority of the signatory executing 
transaction documents on behalf of Borrower and to give the 
authorization opinion. Also, HUD proposes to add a definition for 2nd 
tier entity foreign status certificate.
    HUD proposes to add a disclosure exception in confirmation (d) 
where another attorney in Borrower's Counsel's law firm has an interest 
in the subject matters of the Opinion. Previously the conflict/identity 
of interest had to be disclosed but it was unclear how to disclose. HUD 
proposes to add language that counsel must confirm compliance with 
applicable ethics rules rather than issuing a separate ethics opinion.
    HUD proposes to include litigation ``threatened in writing'' as 
part of the litigation disclosures.
    HUD proposes to add a definition of ``Primary Loan Documents'' to 
include HUD loan documents but not bond, tax credit, secondary 
financing, and supporting documents to ensure the supremacy opinions 
regarding bond, tax credit, and secondary financing are clear that the 
Primary Loan Documents control.
Lease Addendum, HUD-92070M
    HUD has reformatted this document for ease of reading along with 
adding section headings. There is no longer a separate instructions 
page as that caused confusion in the past. HUD proposes to revise the 
document to be a signed agreement that is attached to the underlying 
ground lease/lease, rather than an unsigned addendum. Additionally, 
recognition of HUD lease requirements formerly in the recitals are now 
proposed as part of the actual agreement.
    The proposed document has been further revised to provide two 
different options for the property interest being leased for 
consistency with new MAP Guide: Option 1, landlord owns the fee 
interest in the land and tenant/borrower owns the building and 
improvements (this is the traditional structure found in

[[Page 41979]]

the existing Lease Addendum); Option 2, the landlord owns the land, 
building and improvement in fee simple, which the tenant/borrower 
leases--this structure is now permitted in the revised MAP Guide in 
certain circumstances.
    HUD proposes to add minimum requirements if a memo of lease is 
recorded instead of the entire ground lease, subject to state law 
requirements. This should establish greater uniformity with respect to 
different practices in different HUD offices.
    The document now memorializes an existing but previously separate 
HUD requirement that landlords provide an estoppel certificate. HUD 
further proposes a bracketed option for deletion of the HUD option to 
purchase the fee estate when authorized in writing by HUD pursuant to 
Program Obligations, consistent with the new MAP Guide.
    Lastly, HUD proposes to add a clause to prohibit merger of the fee 
and leasehold estates without HUD consent, for the protection of HUD. 
This is a fairly typical ground lease provision.
Subordination Agreement--Public, HUD-92420M
    HUD proposes that this particular form will only be used for 
public, secondary lenders. HUD proposes a separate subordination form 
for private, subordinate lenders (see below).
    HUD proposes to add brackets to certain provisions to accommodate 
secondary financing that comes in the form of forgivable loans. HUD 
proposes to add a sentence to memorialize Senior Lender's consent to 
the Subordinate Loan pursuant to the MAP Guide.
    HUD proposes to add certain required language from the MAP Guide 
that was previously omitted. HUD also proposes to add language from the 
Surplus Cash Note that is required by the MAP Guide. HUD further 
proposes to include required HUD language to be inserted into the 
underlying promissory note so that Surplus Cash Note does not also need 
to be used. This should resolve inconsistent guidance and practice with 
respect to the form of note to use with public secondary financing that 
is secured.
    HUD proposes to remove the requirement that public, subordinate 
lenders agree that their lien be extinguished by deed in lieu of 
foreclosure. This is a concession to state and local housing finance 
agencies that have raised numerous objections to this provision over 
the last 2.5 years.
    HUD proposes a change to the prohibition against foreclosure of 
subordinate mortgages. Secondary financing lenders were previously 
prohibited from pursuing foreclosure in the event of a default under 
their loan documents. As an accommodation to public secondary financing 
lenders, Housing proposes to allow such public lenders to pursue their 
foreclosure remedies after a standstill period of 180 days. Note that 
foreclosure for a monetary event of default will still not be allowed 
while the loan is insured or HUD-held, given that that repayment 
obligations during this time are limited to 75% of available Surplus 
Cash. Consequently, public subordinate lender foreclosure can only 
occur for covenant events of default, such as for violations of use and 
affordability restrictions.
Subordination Agreement--Private, HUD-92907M
    This is an entirely new form. It replaces the Secondary Financing 
Rider found in the FHA Multifamily Program Closing Guide that was 
previously used for secured, private secondary financing. This new form 
is largely modeled after the Subordination Agreement, HUD-92420M, which 
will become the form used with public secondary financing lenders.
Residual Receipts Note, HUD-92908M
    Residual Receipts Note (Nonprofit Borrowers) (HUD-91710M) & 
Residual Receipts Note (Limited Dividend Borrowers) (HUD-91712M) will 
be merged into one form of note going forward. For new transactions, 
Housing doesn't underwrite NP or LD owners differently and so there is 
no longer an FHA-driven basis for residual receipts accounts. This was 
discussed in a public FAQ dated 6/18/2015 (highlighting that borrower's 
nonprofit status no longer triggers the requirement of residual 
receipts). However, the existing forms will continue to be made 
available for existing projects.
Supplementary Conditions to the Construction Contract, HUD-92554M
    HUD proposes to add language that the document supersedes 
conflicting provisions in the AIA Document A201 General Conditions of 
the Contract for Construction, for consistency with the FHA Multifamily 
Program Closing Guide.
Survey Instructions and Surveyor's Report, HUD-91073M
    HUD proposes revisions that are necessary to permit the form to 
work with new 2016 ALTA/NSPS standards as discussed in an FAQ from 
earlier this year. Additionally, the proposed revision to page one of 
the document isolates the instructions to make it easier for surveyors 
to understand HUD requirements and how to complete the form.
Escrow for Deferred Repairs, HUD-92476.1M
    HUD proposes to remove the term ``Non-critical'' throughout, in 
order to recognize the MAP Guide policy change to allow certain 
accessibility corrections to be paid from this escrow after initial/
final closing.
Supplement to Building Loan Agreement, HUD-92441M-SUPP
    HUD is eliminating this form from the Collection of Information and 
use in the Multifamily programs, as borrower entities can no longer 
serve as their own general contractors and remain in compliance with 
HUD's regulatory single asset entity and administrative requirements.
    Respondents (i.e. affected public): Lenders, Borrowers, Housing 
Finance Agencies, Government Agencies that support affordable housing, 
Multifamily Housing Developers, Lender's Council, Borrower's Council, 
Contractors, Architects, Secondary Financing Lenders.
    Estimated Number of Respondents: 17,468.
    Estimated Number of Responses: 17,468.
    Frequency of Response: Once per annum.
    Average Hours per Response: .70 hours.
    Total Estimated Burden: 12,359.50 hours.

B. Solicitation of Public Comment

    This notice is soliciting comments from members of the public and 
affected parties concerning the collection of information described in 
Section A on the following:
    (1) Whether the proposed collection of information is necessary for 
the proper performance of the functions of the agency, including 
whether the information will have practical utility;
    (2) The accuracy of the agency's estimate of the burden of the 
proposed collection of information;
    (3) Ways to enhance the quality, utility, and clarity of the 
information to be collected; and
    (4) Ways to minimize the burden of the collection of information on 
those who are to respond; including through the use of appropriate 
automated collection techniques or other forms of information 
technology, e.g., permitting electronic submission of responses.
    HUD encourages interested parties to submit comments in response to 
these questions. Please note that HUD will not

[[Page 41980]]

consider any redline/strikeout comparison documents submitted by 
commenters, as it is far too inefficient for the Department to 
consolidate and consider redline/strikeout versions of each of the 
documents from numerous interested parties, based on HUD's past 
experience in seeking public comments on this information collection. 
HUD will only consider proposed changes to the documents listed under 
Section A that are submitted in narrative and/or bulleted form, 
accompanied by a detailed explanation and rationale for each requested 
change. However, commenters may include in their detailed explanation 
and rationale the relevant excerpt(s) from the document(s) with 
redlines/strikeouts.

    Authority: Section 3507 of the Paperwork Reduction Act of 1995, 
44 U.S.C. Chapter 35.

    Dated: August 29, 2017.
Dana T. Wade,
General Deputy Assistant Secretary for Housing.
[FR Doc. 2017-18742 Filed 9-1-17; 8:45 am]
 BILLING CODE 4210-67-P



                                                                             Federal Register / Vol. 82, No. 170 / Tuesday, September 5, 2017 / Notices                                          41977

                                                  SUPPLEMENTARY INFORMATION:    This                      who are to respond; including through                 SW., Washington, DC 20410. This is not
                                                  notice informs the public that HUD is                   the use of appropriate automated                      a toll-free number. Persons with hearing
                                                  seeking approval from OMB for the                       collection techniques or other forms of               or speech impairments may access this
                                                  information collection described in                     information technology, e.g., permitting              number through TTY by calling the toll-
                                                  Section A.                                              electronic submission of responses.                   free Federal Relay Service at (800) 877–
                                                                                                            HUD encourages interested parties to                8339.
                                                  A. Overview of Information Collection
                                                                                                          submit comment in response to these                      Copies of available documents to be
                                                    Title of Information Collection:                      questions.                                            submitted to OMB may be found at:
                                                  Continuation of Interest Reduction                        Authority: Section 3507 of the Paperwork            http://portal.hud.gov/hudportal/
                                                  Payments after Refinancing Section 236                  Reduction Act of 1995, 44 U.S.C. Chapter 35.          HUD?src=/program_offices/housing/
                                                  Projects.                                                                                                     mfh/mfhclosingdocuments.
                                                    OMB Approval Number: 2502–0572.                         Dated: August 29, 2017.
                                                                                                                                                                SUPPLEMENTARY INFORMATION: This
                                                    Type of Request: Revision of currently                Dana Wade,
                                                                                                                                                                notice informs the public that HUD is
                                                  approved collection.                                    General Deputy Assistant Secretary for
                                                                                                                                                                seeking approval from OMB for the
                                                    Form Number:                                          Housing.
                                                                                                                                                                information collection described in
                                                  • Form HUD–93173 Agreement for                          [FR Doc. 2017–18744 Filed 9–1–17; 8:45 am]
                                                                                                                                                                Section A.
                                                    Interest Reduction Payments                           BILLING CODE 4210–67–P

                                                    (§ 236(e)(2))                                                                                               A. Overview of Information Collection
                                                  • form HUD–93175 Agreement for                                                                                  Title of Information Collection: HUD
                                                    Interest Reduction Payments                           DEPARTMENT OF HOUSING AND                             Multifamily Rental Project Closing
                                                    (§ 236(b))                                            URBAN DEVELOPMENT                                     Documents.
                                                  • form HUD–93174 Use Agreement                          [Docket No. FR–6001–N–28]                               OMB Approval Number: 2502–0598.
                                                    (§ 236(e)(2))                                                                                                 Type of Request: Extension of
                                                  • form HUD–93176 Use Agreement                          60-Day Notice of Proposed Information                 currently approved collection and
                                                    (§ 236(b))                                            Collection: HUD Multifamily Rental                    implementation of two new forms.
                                                                                                          Project Closing Documents                               Form Numbers: HUD–91710M, HUD–
                                                    Description of the need for the
                                                                                                                                                                91712M, HUD–92023M, HUD–92070M,
                                                  information and proposed use: The                       AGENCY:  Office of the Assistant                      HUD–92223M, HUD–92412M, HUD–
                                                  purpose of this information collection is               Secretary for Housing—Federal Housing                 92414M, HUD–92450M, HUD–92452A–
                                                  to preserve low-income housing units.                   Commissioner, HUD.                                    M, HUD–92452M, HUD–92455M, HUD–
                                                  HUD uses the information to ensure that                 ACTION: Notice.                                       92456M, HUD–91073M, HUD–92464M,
                                                  owners, mortgagees and or public
                                                                                                                                                                HUD–92476.1M, HUD–92476a-M,
                                                  entities enter into binding agreements                  SUMMARY:   HUD is seeking approval from
                                                                                                                                                                HUD–92477M, HUD–92478M, HUD–
                                                  for the continuation of Interest                        the Office of Management and Budget
                                                                                                                                                                92479M, HUD–91725M, HUD–91725M–
                                                  Reduction Payments (IRP) after                          (OMB) for the information collection
                                                                                                                                                                CERT, HUD–91725M–INST, HUD–
                                                  refinancing eligible Section 236                        described below. In accordance with the
                                                                                                                                                                92434M, HUD–92442M, HUD–92466M,
                                                  projects. HUD has created an electronic                 Paperwork Reduction Act, HUD is
                                                                                                                                                                HUD–92554M, HUD–94000M, HUD–
                                                  application for eligible projects to retain             requesting comments from all interested
                                                                                                                                                                94001M, HUD–93305M, HUD–92476M,
                                                  the IRP benefits after refinancing.                     parties on the proposed collection of
                                                                                                                                                                HUD–92420M, HUD–92408M, HUD–
                                                    Respondents (i.e. affected public):                   information. The purpose of this notice
                                                                                                                                                                91070M, HUD–91071M, HUD–92907,
                                                  Profit Motivated or Non-Profit Owners                   is to allow for 60 days of public
                                                                                                                                                                HUD–92908
                                                  of Section 236 projects.                                comment.
                                                                                                                                                                  Description of the need for the
                                                    Estimated Number of Respondents:                      DATES:   Comments Due Date: November                  information and proposed use: The
                                                  875.                                                    6, 2017.                                              Closing Documents were revised to:
                                                    Estimated Number of Responses:
                                                                                                          ADDRESSES: Interested persons are                     provide clarification, improve
                                                  1,750.
                                                                                                          invited to submit comments regarding                  readability, ensure consistency across
                                                    Frequency of Response: 1.
                                                                                                          this proposal. Comments should refer to               the documents, correct previously
                                                    Average Hours per Response: 1 hour.
                                                                                                          the proposal by name and/or OMB                       provided information, and to reflect the
                                                    Total Estimated Burdens: 1,750.
                                                                                                          Control Number and should be sent to:                 2016 MAP Guide and the FHA
                                                  B. Solicitation of Public Comment                       Colette Pollard, Reports Management                   Multifamily Closing Guide. The
                                                     This notice is soliciting comments                   Officer, QDAM, Department of Housing                  following is a discussion of noteworthy
                                                  from members of the public and affected                 and Urban Development, 451 7th Street                 changes to certain of the Closing
                                                  parties concerning the collection of                    SW., Room 4176, Washington, DC                        Documents, and an explanation of two
                                                  information described in Section A on                   20410–5000; telephone 202–402–3400                    new Closing Documents.
                                                  the following:                                          (this is not a toll-free number) or email             Revisions to the Closing Documents
                                                     (1) Whether the proposed collection                  at Colette.Pollard@hud.gov for a copy of
                                                  of information is necessary for the                     the proposed forms or other available                 Regulatory Agreement, HUD–92466M
                                                  proper performance of the functions of                  information. Persons with hearing or                     Given that the definitions of
                                                  the agency, including whether the                       speech impairments may access this                    ‘‘Principal’’ and ‘‘Affiliate’’ no longer
                                                  information will have practical utility;                number through TTY by calling the toll-               appear at 24 CFR 200.215 following
                                                     (2) The accuracy of the agency’s                     free Federal Relay Service at (800) 877–              changes to HUD’s Previous Participation
mstockstill on DSK30JT082PROD with NOTICES




                                                  estimate of the burden of the proposed                  8339.                                                 Rule, HUD proposes to add the prior
                                                  collection of information;                              FOR FURTHER INFORMATION CONTACT:                      definition of Principal and Affiliate
                                                     (3) Ways to enhance the quality,                     Sylvia S. Chatman, Housing Program                    from 24 CFR 200.215 as defined terms.
                                                  utility, and clarity of the information to              Manager, Office of Multifamily                           HUD proposes to reincorporate the
                                                  be collected; and                                       Production, Sylvia.s.chatman@hud.gov,                 definition of ‘‘Residual Receipts’’ into
                                                     (4) Ways to minimize the burden of                   202–402–2994, Department of Housing                   the form. The term means certain funds
                                                  the collection of information on those                  and Urban Development, 451 7th Street                 which are restricted in their use by


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                                                  41978                      Federal Register / Vol. 82, No. 170 / Tuesday, September 5, 2017 / Notices

                                                  Program Obligations and applicable                      Request for Endorsement of Credit                     is a separate paragraph. There are
                                                  business documents (e.g., HAP Contract,                 Instrument, HUD–92455M                                separate opinions concerning
                                                  Use Agreement) as may be more                           Certificate of Lender (HUD–92455M,                    supremacy of Primary/Supporting Loan
                                                  specifically described in the Residual                  Section I)                                            for each of these matters.
                                                  Receipts Rider attached to the                                                                                   HUD proposes to add a new
                                                  Regulatory Agreement. This definition                      HUD proposes to add a new                          paragraph under documents reviewed to
                                                  has been reincorporated because a                       paragraph concerning No Material                      clarify (as stated in existing
                                                  number of HUD loan documents make                       Adverse Changes for consistency with                  Instructions) that all transaction
                                                  reference to Residual Receipts,                         similar language in the Firm                          documents must be included.
                                                  including some documents that refer to                  Commitment templates issued through                      HUD proposes to add a new
                                                  the Regulatory Agreement as the source                  Housing Notice 2016–06.                               paragraph under opinions for required
                                                  of the definition. However, because the                    HUD proposes the attachment of a                   state or deal specific opinions.
                                                  source of Residual Receipts                             new exhibit for Reserve for Replacement                  HUD proposes that Borrower’s
                                                  requirements now ultimately lies in                     funding schedule generated during the                 Counsel must review all organizational
                                                  programs other than FHA insurance                       mortgage insurance application stage                  documents within Borrower’s
                                                  (e.g., in connection with certain Section               and attached to the Firm Commitment.                  organizational structure, as is legally
                                                  8 HAP contracts), the definition for                    The schedule represents the amounts                   necessary, to establish the authority of
                                                  purposes of this document does not                      that lenders must collect from borrowers              the signatory executing transaction
                                                  describe all instances when Residual                    during insured loan servicing unless                  documents on behalf of Borrower and to
                                                  Receipts would apply nor does it                        other amounts are approved in writing                 give the authorization opinion. Also,
                                                  precisely describe the method for                       by HUD pursuant to Program                            HUD proposes to add a definition for
                                                  calculating Residual Receipts. Instead                  Obligations.                                          2nd tier entity foreign status certificate.
                                                  the definition makes reference to such                     HUD proposes to add a restriction                     HUD proposes to add a disclosure
                                                  other potential sources of Residual                     formerly contained in the Instructions to             exception in confirmation (d) where
                                                  Receipts requirements, as may be more                   Opinion of Borrower’s Counsel relating                another attorney in Borrower’s
                                                  particularly described in an attached                   to lenders’ due diligence obligations                 Counsel’s law firm has an interest in the
                                                  Residual Receipts Rider.                                concerning certificates, permits,                     subject matters of the Opinion.
                                                                                                          licenses, etc., that is more appropriate              Previously the conflict/identity of
                                                  Note, HUD–94001M                                        for the Lender’s Certificate.                         interest had to be disclosed but it was
                                                                                                             HUD proposes to add a new section                  unclear how to disclose. HUD proposes
                                                     HUD proposes to add alternative                      for transactions involving cash-                      to add language that counsel must
                                                  language for bifurcated notes for                       collateralized tax-exempt bonds                       confirm compliance with applicable
                                                  consistency with the MAP Guide policy                   combined with 4% Low Income                           ethics rules rather than issuing a
                                                  allowing for such financing structures.                 Housing Tax Credits for consistency                   separate ethics opinion.
                                                  Lender’s Certificate, HUD–92434M                        with the MAP Guide and current HUD                       HUD proposes to include litigation
                                                                                                          practice.                                             ‘‘threatened in writing’’ as part of the
                                                     HUD proposes to add a new                               HUD proposes to add a new                          litigation disclosures.
                                                  paragraph concerning No Material                        certification moved from the                             HUD proposes to add a definition of
                                                  Adverse Changes for consistency with                    Instructions to Opinion of Borrower’s                 ‘‘Primary Loan Documents’’ to include
                                                  similar language in the Firm                            Counsel relating to lender consent for                HUD loan documents but not bond, tax
                                                  Commitment templates issued through                     any secondary financing.                              credit, secondary financing, and
                                                  Housing Notice 2016–06.                                                                                       supporting documents to ensure the
                                                                                                          Certificate of Borrower (HUD–92455M,                  supremacy opinions regarding bond, tax
                                                     HUD proposes the attachment of a                     Section II)
                                                  new exhibit for the Reserve for                                                                               credit, and secondary financing are clear
                                                  Replacement funding schedule                              Completion of construction                          that the Primary Loan Documents
                                                  generated during the mortgage                           certification was enhanced to have the                control.
                                                  insurance application stage and                         Borrower certify to the level of
                                                                                                          craftsmanship used to complete the                    Lease Addendum, HUD–92070M
                                                  attached to the Firm Commitment. The
                                                  schedule represents the amounts that                    repairs.                                                 HUD has reformatted this document
                                                  lenders must collect from borrowers                       The following certifications were                   for ease of reading along with adding
                                                  during insured loan servicing unless                    typically given separately from the                   section headings. There is no longer a
                                                  other amounts are approved in writing                   Certificate of Borrower and collected at              separate instructions page as that caused
                                                  by HUD pursuant to Program                              closing: Certification of Schedule of                 confusion in the past. HUD proposes to
                                                  Obligations.                                            Accounts Payable, Certification of Rent               revise the document to be a signed
                                                                                                          Roll, Certification of Tenant Security                agreement that is attached to the
                                                     HUD proposes to add a restriction                    Deposits. These certifications have now               underlying ground lease/lease, rather
                                                  formerly contained in the Instructions of               been incorporated into this document in               than an unsigned addendum.
                                                  Borrower’s Counsel relating to lenders’                 order to reduce the number of separate                Additionally, recognition of HUD lease
                                                  due diligence obligations concerning                    documents collected at closing.                       requirements formerly in the recitals are
                                                  certificates, permits, licenses, etc., that                                                                   now proposed as part of the actual
                                                  is more appropriate for the Lender’s                    Opinion of Borrower’s Counsel, HUD–                   agreement.
                                                  Certificate.                                            91725M; Instructions, HUD–91725M–                        The proposed document has been
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                                                     HUD proposes to add a new section                    INST; Exhibit A, HUD–91725M–CERT                      further revised to provide two different
                                                  for transactions involving cash-                           HUD proposes separate paragraphs                   options for the property interest being
                                                  collateralized tax-exempt bonds                         related to bond, tax credit, secondary                leased for consistency with new MAP
                                                  combined with 4% Low Income                             financing, and Public Entity Agreement                Guide: Option 1, landlord owns the fee
                                                  Housing Tax Credits for consistency                     (PEA) for clarification. The definition of            interest in the land and tenant/borrower
                                                  with the MAP Guide and current HUD                      PEA now includes public secondary                     owns the building and improvements
                                                  practice.                                               financing; private secondary financing                (this is the traditional structure found in


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                                                                             Federal Register / Vol. 82, No. 170 / Tuesday, September 5, 2017 / Notices                                           41979

                                                  the existing Lease Addendum); Option                    prohibited from pursuing foreclosure in               easier for surveyors to understand HUD
                                                  2, the landlord owns the land, building                 the event of a default under their loan               requirements and how to complete the
                                                  and improvement in fee simple, which                    documents. As an accommodation to                     form.
                                                  the tenant/borrower leases—this                         public secondary financing lenders,
                                                                                                                                                                Escrow for Deferred Repairs, HUD–
                                                  structure is now permitted in the                       Housing proposes to allow such public
                                                                                                                                                                92476.1M
                                                  revised MAP Guide in certain                            lenders to pursue their foreclosure
                                                  circumstances.                                          remedies after a standstill period of 180                HUD proposes to remove the term
                                                     HUD proposes to add minimum                          days. Note that foreclosure for a                     ‘‘Non-critical’’ throughout, in order to
                                                  requirements if a memo of lease is                      monetary event of default will still not              recognize the MAP Guide policy change
                                                  recorded instead of the entire ground                   be allowed while the loan is insured or               to allow certain accessibility corrections
                                                  lease, subject to state law requirements.               HUD-held, given that that repayment                   to be paid from this escrow after initial/
                                                  This should establish greater uniformity                obligations during this time are limited              final closing.
                                                  with respect to different practices in                  to 75% of available Surplus Cash.                     Supplement to Building Loan
                                                  different HUD offices.                                  Consequently, public subordinate                      Agreement, HUD–92441M–SUPP
                                                     The document now memorializes an                     lender foreclosure can only occur for
                                                  existing but previously separate HUD                    covenant events of default, such as for                 HUD is eliminating this form from the
                                                  requirement that landlords provide an                   violations of use and affordability                   Collection of Information and use in the
                                                  estoppel certificate. HUD further                       restrictions.                                         Multifamily programs, as borrower
                                                  proposes a bracketed option for deletion                                                                      entities can no longer serve as their own
                                                  of the HUD option to purchase the fee                   Subordination Agreement—Private,                      general contractors and remain in
                                                  estate when authorized in writing by                    HUD–92907M                                            compliance with HUD’s regulatory
                                                  HUD pursuant to Program Obligations,                       This is an entirely new form. It                   single asset entity and administrative
                                                  consistent with the new MAP Guide.                      replaces the Secondary Financing Rider                requirements.
                                                     Lastly, HUD proposes to add a clause                 found in the FHA Multifamily Program                    Respondents (i.e. affected public):
                                                  to prohibit merger of the fee and                       Closing Guide that was previously used                Lenders, Borrowers, Housing Finance
                                                  leasehold estates without HUD consent,                  for secured, private secondary                        Agencies, Government Agencies that
                                                  for the protection of HUD. This is a                    financing. This new form is largely                   support affordable housing, Multifamily
                                                  fairly typical ground lease provision.                  modeled after the Subordination                       Housing Developers, Lender’s Council,
                                                                                                          Agreement, HUD–92420M, which will                     Borrower’s Council, Contractors,
                                                  Subordination Agreement—Public,
                                                                                                          become the form used with public                      Architects, Secondary Financing
                                                  HUD–92420M
                                                                                                          secondary financing lenders.                          Lenders.
                                                     HUD proposes that this particular                                                                            Estimated Number of Respondents:
                                                  form will only be used for public,                      Residual Receipts Note, HUD–92908M                    17,468.
                                                  secondary lenders. HUD proposes a                         Residual Receipts Note (Nonprofit                     Estimated Number of Responses:
                                                  separate subordination form for private,                Borrowers) (HUD–91710M) & Residual                    17,468.
                                                  subordinate lenders (see below).                        Receipts Note (Limited Dividend                         Frequency of Response: Once per
                                                     HUD proposes to add brackets to                      Borrowers) (HUD–91712M) will be                       annum.
                                                  certain provisions to accommodate                       merged into one form of note going                      Average Hours per Response: .70
                                                  secondary financing that comes in the                   forward. For new transactions, Housing                hours.
                                                  form of forgivable loans. HUD proposes                  doesn’t underwrite NP or LD owners                      Total Estimated Burden: 12,359.50
                                                  to add a sentence to memorialize Senior                 differently and so there is no longer an              hours.
                                                  Lender’s consent to the Subordinate                     FHA-driven basis for residual receipts                B. Solicitation of Public Comment
                                                  Loan pursuant to the MAP Guide.                         accounts. This was discussed in a
                                                     HUD proposes to add certain required                 public FAQ dated 6/18/2015                               This notice is soliciting comments
                                                  language from the MAP Guide that was                    (highlighting that borrower’s nonprofit               from members of the public and affected
                                                  previously omitted. HUD also proposes                   status no longer triggers the requirement             parties concerning the collection of
                                                  to add language from the Surplus Cash                   of residual receipts). However, the                   information described in Section A on
                                                  Note that is required by the MAP Guide.                 existing forms will continue to be made               the following:
                                                  HUD further proposes to include                         available for existing projects.                         (1) Whether the proposed collection
                                                  required HUD language to be inserted                                                                          of information is necessary for the
                                                  into the underlying promissory note so                  Supplementary Conditions to the                       proper performance of the functions of
                                                  that Surplus Cash Note does not also                    Construction Contract, HUD–92554M                     the agency, including whether the
                                                  need to be used. This should resolve                      HUD proposes to add language that                   information will have practical utility;
                                                  inconsistent guidance and practice with                 the document supersedes conflicting                      (2) The accuracy of the agency’s
                                                  respect to the form of note to use with                 provisions in the AIA Document A201                   estimate of the burden of the proposed
                                                  public secondary financing that is                      General Conditions of the Contract for                collection of information;
                                                  secured.                                                Construction, for consistency with the                   (3) Ways to enhance the quality,
                                                     HUD proposes to remove the                           FHA Multifamily Program Closing                       utility, and clarity of the information to
                                                  requirement that public, subordinate                    Guide.                                                be collected; and
                                                  lenders agree that their lien be                                                                                 (4) Ways to minimize the burden of
                                                  extinguished by deed in lieu of                         Survey Instructions and Surveyor’s                    the collection of information on those
                                                  foreclosure. This is a concession to state              Report, HUD–91073M                                    who are to respond; including through
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                                                  and local housing finance agencies that                   HUD proposes revisions that are                     the use of appropriate automated
                                                  have raised numerous objections to this                 necessary to permit the form to work                  collection techniques or other forms of
                                                  provision over the last 2.5 years.                      with new 2016 ALTA/NSPS standards                     information technology, e.g., permitting
                                                     HUD proposes a change to the                         as discussed in an FAQ from earlier this              electronic submission of responses.
                                                  prohibition against foreclosure of                      year. Additionally, the proposed                         HUD encourages interested parties to
                                                  subordinate mortgages. Secondary                        revision to page one of the document                  submit comments in response to these
                                                  financing lenders were previously                       isolates the instructions to make it                  questions. Please note that HUD will not


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                                                  41980                      Federal Register / Vol. 82, No. 170 / Tuesday, September 5, 2017 / Notices

                                                  consider any redline/strikeout                          Species Act Section 10(a)(1)(B) Permit                Applications Available for Review and
                                                  comparison documents submitted by                       Issuance in Oklahoma.                                 Comment
                                                  commenters, as it is far too inefficient                DATES: To ensure consideration, written                 We invite local, State, Tribal, and
                                                  for the Department to consolidate and                   comments must be received on or before                Federal agencies, and the public to
                                                  consider redline/strikeout versions of                  October 5, 2017.                                      comment on the following applications
                                                  each of the documents from numerous                     ADDRESSES: You may obtain copies of                   under the ICP, for incidentally taking
                                                  interested parties, based on HUD’s past                 all documents and submit comments on                  the federally listed American burying
                                                  experience in seeking public comments                   the applicants’ incidental take permit                beetle. Please refer to the appropriate
                                                  on this information collection. HUD will                (ITP) applications by one of the                      permit number (e.g., TE–123456) when
                                                  only consider proposed changes to the                   following methods. Please refer to the                requesting application documents and
                                                  documents listed under Section A that                   proposed permit number when                           when submitting comments. Documents
                                                  are submitted in narrative and/or                       requesting documents or submitting                    and other information the applicants
                                                  bulleted form, accompanied by a                         comments.                                             have submitted are available for review,
                                                  detailed explanation and rationale for                     Æ U.S. Mail: U.S. Fish and Wildlife                subject to Privacy Act (5 U.S.C. 552a)
                                                  each requested change. However,                         Service, Division of Endangered                       and Freedom of Information Act (5
                                                  commenters may include in their                         Species—HCP Permits, P.O. Box 1306,                   U.S.C. 552) requirements.
                                                  detailed explanation and rationale the                  Room 6034, Albuquerque, NM 87103.
                                                  relevant excerpt(s) from the document(s)                   Æ Electronically: fw2_hcp_permits@                 Permit TE41500C
                                                  with redlines/strikeouts.                               fws.gov.                                              Applicant: Plains All American
                                                    Authority: Section 3507 of the Paperwork              FOR FURTHER INFORMATION CONTACT:                         Pipeline, L.P., Houston, TX.
                                                  Reduction Act of 1995, 44 U.S.C. Chapter 35.            Marty Tuegel, Branch Chief, by U.S.                      Applicant requests a permit for oil
                                                    Dated: August 29, 2017.                               mail at U.S. Fish and Wildlife Service,               and gas upstream and midstream
                                                  Dana T. Wade,                                           Environmental Review Division, P.O.                   production, including oil and gas well
                                                  General Deputy Assistant Secretary for                  Box 1306, Room 6034, Albuquerque,                     field infrastructure geophysical
                                                  Housing.                                                NM 87103; or by telephone at 505–248–                 exploration (seismic) and construction,
                                                  [FR Doc. 2017–18742 Filed 9–1–17; 8:45 am]              6651.                                                 maintenance, operation, repair, and
                                                                                                          SUPPLEMENTARY INFORMATION:                            decommissioning, as well as oil and gas
                                                  BILLING CODE 4210–67–P
                                                                                                                                                                gathering, transmission, and
                                                                                                          Introduction                                          distribution pipeline infrastructure
                                                                                                             Under the Endangered Species Act, as               construction, maintenance, operation,
                                                  DEPARTMENT OF THE INTERIOR                              amended (16 U.S.C. 1531 et seq.; ESA),                repair, decommissioning, and
                                                  Fish and Wildlife Service                               we, the U.S. Fish and Wildlife Service,               reclamation in Oklahoma.
                                                                                                          invite the public to comment on
                                                  [FWS–R2–ES–2017–N109;                                   incidental take permit (ITP) applications             Permit TE42582C
                                                  FXES11140200000–178–FF02ENEH00]                         to take the federally listed American                 Applicant: Reach Energy Limited,
                                                                                                          burying beetle (Nicrophorus                              Oklahoma City, OK.
                                                  Incidental Take Permit Applications                     americanus) during oil and gas well                      Applicant requests a permit for oil
                                                  Received To Participate in the                          field infrastructure geophysical                      and gas upstream and midstream
                                                  American Burying Beetle Amended Oil                     exploration (seismic) and construction,               production, including oil and gas well
                                                  and Gas Industry Conservation Plan in                   maintenance, operation, repair, and                   field infrastructure geophysical
                                                  Oklahoma                                                decommissioning, as well as oil and gas               exploration (seismic) and construction,
                                                  AGENCY:   Fish and Wildlife Service,                    gathering, transmission, and                          maintenance, operation, repair, and
                                                  Interior.                                               distribution pipeline infrastructure                  decommissioning, as well as oil and gas
                                                  ACTION: Notice of availability; request                 construction, maintenance, operation,                 gathering, transmission, and
                                                  for public comments.                                    repair, decommissioning, and                          distribution pipeline infrastructure
                                                                                                          reclamation in Oklahoma.                              construction, maintenance, operation,
                                                  SUMMARY:   Under the Endangered                            If approved, the permits would be                  repair, decommissioning, and
                                                  Species Act, as amended (ESA), we, the                  issued to the applicants under the                    reclamation in Oklahoma.
                                                  U.S. Fish and Wildlife Service, invite                  American Burying Beetle Amended Oil
                                                  the public to comment on federally                      and Gas Industry Conservation Plan                    Public Availability of Comments
                                                  listed American burying beetle                          (ICP) Endangered Species Act Section                    Written comments we receive become
                                                  incidental take permit applications. The                10(a)(1)(B) Permit Issuance in                        part of the public record associated with
                                                  applicants anticipate American burying                  Oklahoma. The original ICP was                        this action. Before including your
                                                  beetle take as a result of impacts to                   approved on May 21, 2014, and the ‘‘no                address, phone number, email address,
                                                  habitat the species uses for breeding,                  significant impact’’ finding notice was               or other personal identifying
                                                  feeding, and sheltering in Oklahoma.                    published in the Federal Register on                  information in your comment, you
                                                  The take would be incidental to the                     July 25, 2014 (79 FR 43504). The draft                should be aware that your entire
                                                  applicants’ activities associated with oil              amended ICP was made available for                    comment—including your personal
                                                  and gas well field and pipeline                         comment on March 8, 2016 (81 FR                       identifying information—may be made
                                                  infrastructure (gathering, transmission,                12113), and approved on April 13, 2016.               publicly available at any time. While
                                                  and distribution), including geophysical                The ICP and the associated                            you can request in your comment that
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                                                  exploration (seismic), construction,                    environmental assessment/finding of no                we withhold your personal identifying
                                                  maintenance, operation, repair,                         significant impact are available on our               information from public review, we
                                                  decommissioning, and reclamation. If                    Web site at http://www.fws.gov/                       cannot guarantee that we will be able to
                                                  approved, the permits would be issued                   southwest/es/oklahoma/ABBICP.                         do so. We will not consider anonymous
                                                  under the approved American Burying                     However, we are no longer taking                      comments. All submissions from
                                                  Beetle Amended Oil and Gas Industry                     comments on these finalized, approved                 organizations or businesses, and from
                                                  Conservation Plan (ICP) Endangered                      documents.                                            individuals identifying themselves as


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Document Created: 2017-09-02 03:25:12
Document Modified: 2017-09-02 03:25:12
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
ActionNotice.
DatesComments Due Date: November 6, 2017.
ContactSylvia S. Chatman, Housing Program Manager, Office of Multifamily Production, [email protected], 202-402-2994, Department of Housing and Urban Development, 451 7th Street SW., Washington, DC 20410. 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.
FR Citation82 FR 41977 

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