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: Public/Private Partnerships for the Mixed-Finance Development of Public Housing Units.

OMB Control Number: 2577-0275.

Type of Request: Renewal with change of a currently approved collection.

Form Numbers: HUD-50156, HUD-50157, HUD-50158, HUD-50159, HUD-50160, HUD-50161, and HUD-52190. This PRA also includes one new form: Proposals for Change in Ownership and Refinancing of Mixed-Finance Projects (HUD-50162).

Description of the need for the information and proposed use: The Quality Housing and Work Responsibility Act of 1998 (Pub. L. 105-276, approved October 21, 1998), also known as the Public Housing Reform Act, created section 35 of the U.S. Housing Act of 1937, 42 U.S.C. 1437z-7. Section 35 allows public housing agencies (PHAs) to own, operate, assist, or otherwise participate in the development and operation of mixed-finance development projects. Mixed-finance development refers to the development or rehabilitation of public housing; whereby public housing units are owned in whole or in part by an ( printed page 73271) entity other than a PHA. Prior to section 35, all public housing had to be developed and owned by a PHA. However, section 35 allows PHAs to provide section 9 Capital Funds and Operating Funds to mixed-finance projects, which are also financially assisted by private financing and other resources, including tax credit equity, private mortgages, and other Federal, State, or local funds. Section 35 also allows non-PHA owner entities to own and operate mixed-finance projects that contain only public housing units or both public housing and non-public housing units. Mixed-finance development or rehabilitation transactions also help to extend public housing appropriations for housing development and to support the development of mixed-income housing in which public housing residents are anonymously mixed in with affordable and market rate housing residents.

The regulations that govern the processing of mixed-finance public housing projects are at 24 CFR part 905, subpart F. Specifically, regulations at 24 CFR 905.606 state that a development proposal must be submitted to HUD to facilitate approval of the development of public housing. The subsection also lists the information that is required in the proposal. In accordance with these regulations, HUD collects certain information from each PHA/Ownership Entity using the collection documents in this Information Collection Request (ICR). Specifically, HUD collects and reviews development proposal materials, which includes the Development Proposal Calculator (HUD-50156) and the Mixed-Finance Development Proposal (HUD-50157) or the Mixed-Finance Homeownership Term Sheet (HUD-50159). HUD also collects the Certifications and Assurances forms, including the Mixed-Finance and Homeownership Pre-Funding Certifications and Assurances form (HUD-50160) for all projects as well as the Mixed-Finance Certifications and Assurances form (HUD-50161) for rental projects and the Mixed-Finance Homeownership Certifications and Assurances form (HUD-50158) for homeownership projects. Finally, as required by regulations, HUD collects and reviews draft legal documents prior to granting its approval to ensure that the projects are legally bound to comply with all applicable public housing requirements. This includes the Declaration of Trust/Restrictive Covenants (HUD-52190) as well as the draft, unique legal documents in this ICR. After its approval is given and the project has its financial closing, HUD collects and reviews the final, executed versions of the required legal documents to confirm that they were executed and, when required, recorded in the order approved by HUD. If a project undergoes a change in ownership or a refinancing after its approval by HUD, HUD collects the information it needs to approve such a change through its form titled Proposals for Changes in Ownership or Financing of a Mixed-Finance Project (HUD-50162).

HUD reviews all the materials included in this ICR to verify that the proposed mixed-finance development has sufficient funds to reach completion; will remain financially viable during its operating period; will follow HUD's legal and programmatic guidelines for housing project development or rehabilitation, ownership, and use restrictions; and will preserve HUD's rights to the project during its HUD-required affordability period. The information on HUD-prescribed forms and in HUD-prescribed contracts and agreements, along with other supplemental information called for in 24 CFR part 905, allows HUD to determine whether the project should be approved, whether funds should or should not be reserved, or if a contractual commitment should be made.

HUD's Mixed-Finance Development Proposal and associated documents can also be used to facilitate the approval of non-public housing developments whose development and/or operations are supported with section 9 funds. For instance, Choice Neighborhoods grantees must use the Mixed-Finance Development Proposal to obtain HUD approval of their proposed housing development projects, even if those projects do not include public housing units. The proposal notes requirements that apply to Choice Neighborhoods grantees specifically.

This ICR was last updated in fiscal year 2023. Since that time, HUD updated the Mixed-Finance Development Proposal to make it easier for PHAs to complete by grouping information in a more intuitive order, providing better instructions, and better defining key terms. HUD also removed certain evidentiary documents—including the tenant lease, management plan, and management agreement—because HUD no longer reviews them. HUD updated the Declaration of Trust/Declaration of Restriction Covenants (Form HUD-2190) to incorporate language that PHAs commonly request to include via a rider. HUD also added a new form to help it review and approve a growing number of PHAs' requests to change the financing of or the ownership of existing Mixed-Finance developments. Finally, HUD also removed the Faircloth to Rental Assistance Demonstration (RAD)-specific development proposal because it is no longer necessary.

Respondents: PHAs, Developers.

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.

C. Authority

44 U.S.C. 3507.

91 FR 73270