82 FR 6610 - HUD Approval of Requests for Transfers of Multifamily Housing Project-Based Rental Assistance, HUD-Held or Insured Debt, and Income-Based Use Restrictions

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Federal Register Volume 82, Issue 12 (January 19, 2017)

Page Range		6610-6611
FR Document		2017-01260

This notice establishes the terms and conditions by which HUD will approve a request for the transfer of project-based rental assistance, debt held or insured by the Secretary, and statutorily required income-based use restrictions from one multifamily housing project to another (or between several such projects). The Department of Housing and Urban Development Appropriations Act, 2016 gives the Secretary the authority to approve transfer requests for fiscal years (FY) 2016 and 2017, provided that the Secretary publish a notice in the Federal Register establishing the terms and conditions for HUD approval of such transfers no later than 30 days before such notice takes effect. In FY 2016, HUD continued to utilize the FY 2015 published criteria, which covered authority enacted for both FY 2015 and FY 2016. For FY 2017, HUD continues to utilize, without revision, the published FY 2015 criteria. HUD believes that criteria established and published in FY 2015, and cross-refenced in this notice, will continue to assist project owners to determine whether a transfer is feasible given the specific circumstances of their multifamily projects.

Federal Register, Volume 82 Issue 12 (Thursday, January 19, 2017)

[Federal Register Volume 82, Number 12 (Thursday, January 19, 2017)]
[Notices]
[Pages 6610-6611]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-01260]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5967-N-01]


HUD Approval of Requests for Transfers of Multifamily Housing 
Project-Based Rental Assistance, HUD-Held or Insured Debt, and Income-
Based Use Restrictions

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

ACTION: Notice.

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SUMMARY: This notice establishes the terms and conditions by which HUD 
will approve a request for the transfer of project-based rental 
assistance, debt held or insured by the Secretary, and statutorily 
required income-based use restrictions from one multifamily housing 
project to another (or between several such projects). The Department 
of Housing and Urban Development Appropriations Act, 2016 gives the 
Secretary the authority to approve transfer requests for fiscal years 
(FY) 2016 and 2017, provided that the Secretary publish a notice in the 
Federal Register establishing the terms and conditions for HUD approval 
of

[[Page 6611]]

such transfers no later than 30 days before such notice takes effect. 
In FY 2016, HUD continued to utilize the FY 2015 published criteria, 
which covered authority enacted for both FY 2015 and FY 2016. For FY 
2017, HUD continues to utilize, without revision, the published FY 2015 
criteria. HUD believes that criteria established and published in FY 
2015, and cross-refenced in this notice, will continue to assist 
project owners to determine whether a transfer is feasible given the 
specific circumstances of their multifamily projects.

DATES: Effective Date: February 21, 2017.

FOR FURTHER INFORMATION CONTACT: Katherine Nzive, Director, Program 
Adminstration Office, Office of Asset Management and Portfolio 
Oversight of Multifamily Housing, Office of Housing, Department of 
Housing and Urban Development, 451 7th Street SW., Room 6110, 
Washington, DC 20410; telephone number 202-402-3440 (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: Beginning with section 318 of the Department 
of Housing and Urban Development Appropriations Act, 2006 (Pub. L. 109-
115, 119 Stat. 2396, approved November 30, 2005), HUD appropriations 
acts have contained a general provision authorizing the Secretary to 
approve requests from project owners for the transfer of certain rental 
assistance, debt, and income-based use restrictions between HUD-
assisted projects. For fiscal year 2017, this transfer authority is 
provided under section 212 of of the Consolidated Appropriations Act, 
216 (Pub. L. 114-113, 129 Stat. 2889, approved December 18, 2015 
(Section 212). Section 212(a) states that ``[n]otwithstanding any other 
provision of law . . . the Secretary of Housing and Urban Development 
may authorize the transfer of some or all project-based assistance, 
debt held or insured by the Secretary and statutorily required low-
income and very low-income use restrictions if any, associated with one 
or more multifamily housing project or projects to another multifamily 
housing project or projects.'' Section 212(b) also allows for phased 
transfers of project-based assistance to accommodate the financing and 
other requirements related to rehabilitating or constructing the 
project or projects to which the assistance is transferred.
    HUD approval of transfers is subject to the conditions enumerated 
in the appropriations act for the applicable fiscal year. These 
statutory terms and conditions have, in general, been consistent from 
one appropriations act to the next. The statutory criteria for FY 2017 
is enumerated in section 212(c), which provides as follows:

    (c) The transfer authorized in subsection (a) is subject to the 
following conditions:
    (1) NUMBER AND BEDROOM SIZE OF UNITS.--
    (A) For occupied units in the transferring project: the number 
of low-income and very low-income units and the configuration (i.e. 
bedroom size) provided by the transferring project shall be no less 
than when transferred to the receiving project or projects and the 
net dollar amount of Federal assistance provided to the transferring 
project shall remain the same in the receiving project or projects.
    (B) For unoccupied units in the transferring project: the 
Secretary may authorize a reduction in the number of dwelling units 
in the receiving project or projects to allow for a reconfiguration 
of bedroom sizes to meet current market demands, as determined by 
the Secretary and provided there is no increase in the project-based 
assistance budget authority.
    (2) The transferring project shall, as determined by the 
Secretary, be either physically obsolete or economically nonviable.
    (3) The receiving project or projects shall meet or exceed 
applicable physical standards established by the Secretary.
    (4) The owner or mortgagor of the transferring project shall 
notify and consult with the tenants residing in the transferring 
project and provide a certification of approval by all appropriate 
local governmental officials.
    (5) The tenants of the transferring project who remain eligible 
for assistance to be provided by the receiving project or projects 
shall not be required to vacate their units in the transferring 
project or projects until new units in the receiving project are 
available for occupancy.
    (6) The Secretary determines that this transfer is in the best 
interest of the tenants.
    (7) If either the transferring project or the receiving project 
or projects meets the condition specified in subsection 
(d)(2)(A),\1\ any lien on the receiving project resulting from 
additional financing obtained by the owner shall be subordinate to 
any FHA-insured mortgage lien transferred to, or placed on, such 
project by the Secretary, except that the Secretary may waive this 
requirement upon determination that such a waiver is necessary to 
facilitate the financing of acquisition, construction, and/or 
rehabilitation of the receiving project or projects.
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    \1\ Subsection (d)(2)(A) pertains to housing that is subject to 
a mortgage insured under the National Housing Act (12 U.S.C. 1701 et 
seq.).
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    (8) If the transferring project meets the requirements of 
subsection (d)(2),\2\ the owner or mortgagor of the receiving 
project or projects shall execute and record either a continuation 
of the existing use agreement or a new use agreement for the project 
where, in either case, any use restrictions in such agreement are of 
no lesser duration than the existing use restrictions.
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    \2\ Subsection (d)(2) defines the term ``multifamily housing 
project.''
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    (9) The transfer does not increase the cost (as defined in 
section 502 of the Congressional Budget Act of 1974, as amended) of 
any FHA-insured mortgage, except to the extent that appropriations 
are provided in advance for the amount of any such increased cost.

    Section 212 (e)(1) requires that HUD publish by notice in the 
Federal Register the terms and conditions for HUD approval of 
transfers, no later than 30 days before such notice takes effect. This 
notice is being issued in accordance with the publication requirements 
of section 212(e)(1). In this Federal Register notice, HUD advises that 
the criteria for approval of transfers are unchanged from those in 
effect for fiscal years 2015 and 2016 and published in the Federal 
Register on March 31, 2015, at 80 FR 16963.\3\ For the convenience of 
the reader, the criteria can also be found in Microsoft Word format on 
HUD's webpage at: http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/mfh/memos_letters.
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    \3\ See https://www.thefederalregister.org/fdsys/pkg/FR-2015-03-31/pdf/2015-06776.pdf.
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    This notice will become effective February 21, 2017. HUD will begin 
accepting requests for transfers pursuant to this notice on or after 
the effective date. For questions regarding the submission or status of 
a transfer request, interested parties should contact their local HUD 
Multifamily Regional Center or Satellite Office. The list of HUD 
Multifamily Regional Centers and Satellite Offices is available at: 
http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/mfh/hsgmfbus/abouthubspcs.

    Dated: January 12, 2017.
Edward L. Golding,
Principal Deputy Assistant Secretary for Housing.
[FR Doc. 2017-01260 Filed 1-18-17; 8:45 am]
 BILLING CODE 4210-67-P

Federal Register / Vol. 82, No. 12 / Thursday, January 19, 2017 / Notices 6611

such transfers no later than 30 days appropriations act for the applicable projects shall execute and record either a
before such notice takes effect. In FY fiscal year. These statutory terms and continuation of the existing use agreement or
2016, HUD continued to utilize the FY conditions have, in general, been a new use agreement for the project where,
in either case, any use restrictions in such
2015 published criteria, which covered consistent from one appropriations act agreement are of no lesser duration than the
authority enacted for both FY 2015 and to the next. The statutory criteria for FY existing use restrictions.
FY 2016. For FY 2017, HUD continues 2017 is enumerated in section 212(c), (9) The transfer does not increase the cost
to utilize, without revision, the which provides as follows: (as defined in section 502 of the
published FY 2015 criteria. HUD (c) The transfer authorized in subsection Congressional Budget Act of 1974, as
believes that criteria established and (a) is subject to the following conditions: amended) of any FHA-insured mortgage,
published in FY 2015, and cross- (1) NUMBER AND BEDROOM SIZE OF except to the extent that appropriations are
refenced in this notice, will continue to UNITS.— provided in advance for the amount of any
such increased cost.
assist project owners to determine (A) For occupied units in the transferring
whether a transfer is feasible given the project: the number of low-income and very Section 212 (e)(1) requires that HUD
specific circumstances of their low-income units and the configuration (i.e. publish by notice in the Federal
multifamily projects. bedroom size) provided by the transferring Register the terms and conditions for
project shall be no less than when transferred HUD approval of transfers, no later than
DATES: Effective Date: February 21, to the receiving project or projects and the
2017. net dollar amount of Federal assistance
30 days before such notice takes effect.
provided to the transferring project shall This notice is being issued in
FOR FURTHER INFORMATION CONTACT:
remain the same in the receiving project or accordance with the publication
Katherine Nzive, Director, Program requirements of section 212(e)(1). In this
projects.
Adminstration Office, Office of Asset Federal Register notice, HUD advises
(B) For unoccupied units in the
Management and Portfolio Oversight of transferring project: the Secretary may that the criteria for approval of transfers
Multifamily Housing, Office of Housing, authorize a reduction in the number of are unchanged from those in effect for
Department of Housing and Urban dwelling units in the receiving project or fiscal years 2015 and 2016 and
Development, 451 7th Street SW., Room projects to allow for a reconfiguration of published in the Federal Register on
6110, Washington, DC 20410; telephone bedroom sizes to meet current market
March 31, 2015, at 80 FR 16963.3 For
number 202–402–3440 (this is not a toll- demands, as determined by the Secretary and
provided there is no increase in the project- the convenience of the reader, the
free number). Persons with hearing or criteria can also be found in Microsoft
speech impairments may access this based assistance budget authority.
(2) The transferring project shall, as Word format on HUD’s webpage at:
number through TTY by calling the toll- http://portal.hud.gov/hudportal/
determined by the Secretary, be either
free Federal Relay Service at 800–877– physically obsolete or economically HUD?src=/program_offices/housing/
8339. nonviable. mfh/memos_letters.
SUPPLEMENTARY INFORMATION: Beginning (3) The receiving project or projects shall This notice will become effective
with section 318 of the Department of meet or exceed applicable physical standards February 21, 2017. HUD will begin
Housing and Urban Development established by the Secretary. accepting requests for transfers pursuant
Appropriations Act, 2006 (Pub. L. 109– (4) The owner or mortgagor of the
to this notice on or after the effective
115, 119 Stat. 2396, approved November transferring project shall notify and consult
with the tenants residing in the transferring date. For questions regarding the
30, 2005), HUD appropriations acts have submission or status of a transfer
project and provide a certification of
contained a general provision approval by all appropriate local request, interested parties should
authorizing the Secretary to approve governmental officials. contact their local HUD Multifamily
requests from project owners for the (5) The tenants of the transferring project Regional Center or Satellite Office. The
transfer of certain rental assistance, who remain eligible for assistance to be list of HUD Multifamily Regional
debt, and income-based use restrictions provided by the receiving project or projects Centers and Satellite Offices is available
between HUD-assisted projects. For shall not be required to vacate their units in at: http://portal.hud.gov/hudportal/
fiscal year 2017, this transfer authority the transferring project or projects until new HUD?src=/program_offices/housing/
is provided under section 212 of of the units in the receiving project are available for
mfh/hsgmfbus/abouthubspcs.
occupancy.
Consolidated Appropriations Act, 216 Dated: January 12, 2017.
(6) The Secretary determines that this
(Pub. L. 114–113, 129 Stat. 2889, transfer is in the best interest of the tenants. Edward L. Golding,
approved December 18, 2015 (Section (7) If either the transferring project or the Principal Deputy Assistant Secretary for
212). Section 212(a) states that receiving project or projects meets the Housing.
‘‘[n]otwithstanding any other provision condition specified in subsection (d)(2)(A),1
[FR Doc. 2017–01260 Filed 1–18–17; 8:45 am]
of law . . . the Secretary of Housing and any lien on the receiving project resulting
from additional financing obtained by the BILLING CODE 4210–67–P
Urban Development may authorize the
transfer of some or all project-based owner shall be subordinate to any FHA-
assistance, debt held or insured by the insured mortgage lien transferred to, or
placed on, such project by the Secretary, DEPARTMENT OF HOUSING AND
Secretary and statutorily required low- URBAN DEVELOPMENT
except that the Secretary may waive this
income and very low-income use requirement upon determination that such a
restrictions if any, associated with one waiver is necessary to facilitate the financing [Docket No. FR–5981–D–02]
or more multifamily housing project or of acquisition, construction, and/or
projects to another multifamily housing rehabilitation of the receiving project or
Redelegation of Authority to the
project or projects.’’ Section 212(b) also projects. Deputy Assistant Secretaries in the
allows for phased transfers of project- (8) If the transferring project meets the Office of Community Planning and
mstockstill on DSK3G9T082PROD with NOTICES

based assistance to accommodate the requirements of subsection (d)(2),2 the owner Development
financing and other requirements or mortgagor of the receiving project or
AGENCY: Office of the Assistant
related to rehabilitating or constructing 1 Subsection (d)(2)(A) pertains to housing that is
Secretary for Community Planning and
the project or projects to which the subject to a mortgage insured under the National Development, HUD.
assistance is transferred. Housing Act (12 U.S.C. 1701 et seq.).
HUD approval of transfers is subject 2 Subsection (d)(2) defines the term ‘‘multifamily 3 See https://www.gpo.gov/fdsys/pkg/FR-2015-03-

to the conditions enumerated in the housing project.’’ 31/pdf/2015-06776.pdf.

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Document Created: 2018-02-01 15:16:37
Document Modified: 2018-02-01 15:16:37

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		Effective Date: February 21, 2017.
Contact		Katherine Nzive, Director, Program Adminstration Office, Office of Asset Management and Portfolio Oversight of Multifamily Housing, Office of Housing, Department of Housing and Urban Development, 451 7th Street SW., Room 6110, Washington, DC 20410; telephone number 202-402-3440 (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 Citation		82 FR 6610