Notice of HUD-Held Multifamily and Healthcare Loan Sale (MHLS 2007-1), 52571-52572 [E7-18115]

Download as PDF Federal Register / Vol. 72, No. 178 / Friday, September 14, 2007 / Notices DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT [Docket No. FR–5125–N–37] Federal Property Suitable as Facilities to Assist the Homeless Office of the Assistant Secretary for Community Planning and Development, HUD. ACTION: Notice. AGENCY: SUMMARY: This Notice identifies unutilized, underutilized, excess, and surplus Federal property reviewed by HUD for suitability for possible use to assist the homeless. DATES: Effective Date: September 14, 2007. FOR FURTHER INFORMATION CONTACT: Kathy Ezzell, Department of Housing and Urban Development, Room 7262, 451 Seventh Street, SW., Washington, DC 20410; telephone (202) 708–1234; TTY number for the hearing- and speech-impaired (202) 708–2565, (these telephone numbers are not toll-free), or call the toll-free Title V information line at 1–800–927–7588. SUPPLEMENTARY INFORMATION: In accordance with the December 12, 1988 court order in National Coalition for the Homeless v. Veterans Administration, No. 88–2503–OG (D.D.C.), HUD publishes a Notice, on a weekly basis, identifying unutilized, underutilized, excess and surplus Federal buildings and real property that HUD has reviewed for suitability for use to assist the homeless. Today’s Notice is for the purpose of announcing that no additional properties have been determined suitable or unsuitable this week. Dated: September 6, 2007. Mark R. Johnston, Deputy Assistant Secretary for Special Needs. [FR Doc. E7–17910 Filed 9–13–07; 8:45 am] BILLING CODE 4210–67–P DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT [Docket No. FR–5113-N–02] Notice of HUD-Held Multifamily and Healthcare Loan Sale (MHLS 2007–1) Office of the Assistant Secretary for Housing—Federal Housing Commissioner, HUD. ACTION: Notice of sale of mortgage loans. rmajette on PROD1PC64 with NOTICES AGENCY: SUMMARY: This notice announces HUD’s intention to sell certain unsubsidized multifamily and healthcare mortgage loans, without Federal Housing VerDate Aug<31>2005 15:44 Sep 13, 2007 Jkt 211001 Administration (FHA) insurance, in a competitive, sealed bid sale (MHLS 2007–1). This notice also describes generally the bidding process for the sale and certain persons who are ineligible to bid. DATES: The Bidder’s Information Package (BIP) was made available to qualified bidders on August 16, 2007. Bids for the loans must be submitted on the bid date, which is currently scheduled for September 19, 2007. HUD anticipates that awards will be made on or before September 21, 2007. Closings are expected to take place on or before September 28, 2007. ADDRESSES: To become a qualified bidder and receive the BIP, prospective bidders must complete, execute, and submit a Confidentiality Agreement and a Qualification Statement acceptable to HUD. Both documents will be available on the HUD Web site at https:// www.hud.gov/offices/hsg/comp/asset/ mfam/mhls.cfm. The executed documents must be mailed Corporate Finance Services, LLC, 7831 Woodmont Ave, No. 287, Bethesda, MD 20814, Attention: Alfreda Ward, Fax (703) 847– 2783. FOR FURTHER INFORMATION CONTACT: John Lucey, Deputy Director, Asset Sales Office, Room 3136, Department of Housing and Urban Development, 451 Seventh Street, SW., Washington, DC 20410–8000; telephone 202–708–2625, extension 3927. Hearing- or speechimpaired individuals may call 202–708– 4594 (TTY). These are not toll-free numbers. SUPPLEMENTARY INFORMATION: HUD announces its intention to sell in MHLS 2007–1 certain unsubsidized mortgage loans (Mortgage Loans) secured by multifamily and healthcare properties located throughout the United States pursuant to section 204(a) of the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act of 1997, 12 U.S.C. 1715z–11a(a). The Mortgage Loans are comprised primarily of non-performing mortgage loans. A final listing of the Mortgage Loans will be included in the BIP. The Mortgage Loans will be sold without FHA insurance and with servicing released. HUD will offer qualified bidders an opportunity to bid competitively on the Mortgage Loans. The Mortgage Loans will be stratified for bidding purposes into several mortgage loan pools. Each pool will contain Mortgage Loans that generally have similar performance, property type, geographic location, lien position and other characteristics. Qualified PO 00000 Frm 00034 Fmt 4703 Sfmt 4703 52571 bidders may submit bids on one or more pools of Mortgage Loans or may bid on individual loans. A mortgagor who is a qualified bidder may submit an individual bid on its own Mortgage Loan. Interested Mortgagors should review the Qualification Statement to determine whether they may also be eligible to qualify to submit bids on one or more pools of Mortgage Loans or on individual loans in MHLS 2007–1. The Bidding Process The BIP will describe in detail the procedure for bidding in MHLS 2007–1. The BIP will also include a standardized nonnegotiable loan sale agreement (Loan Sale Agreement). As part of its bid, each bidder must submit a deposit equal to the greater of $100,000 or 10% of the bid price. In the event the bidder’s aggregate bid is less than $100,000, the minimum deposit shall be not less than fifty percent (50%) of the bidder’s aggregate bid. HUD will evaluate the bids submitted and determine the successful bids in its sole and absolute discretion. If a bidder is successful, the bidder’s deposit will be non-refundable and will be applied toward the purchase price. Deposits will be returned to unsuccessful bidders. Closings are scheduled to occur on or before September 28, 2007. These are the essential terms of sale. The Loan Sale Agreement, which will be included in the BIP, will contain additional terms and details. To ensure a competitive bidding process, the terms of the bidding process and the Loan Sale Agreement are not subject to negotiation. Due Diligence Review The BIP will describe the due diligence process for reviewing loan files in MHLS 2007–1. Qualified bidders will be able to access loan information remotely via a high-speed Internet connection. Further information on performing due diligence review of the Mortgage Loans will be provided in the BIP. Mortgage Loan Sale Policy HUD reserves the right to add Mortgage Loans to or delete Mortgage Loans from MHLS 2007–1 at any time prior to the Award Date. HUD also reserves the right to reject any and all bids, in whole or in part, without prejudice to HUD’s right to include any Mortgage Loans in a later sale. Mortgage Loans will not be withdrawn after the Award Date except as is specifically provided in the Loan Sale Agreement. E:\FR\FM\14SEN1.SGM 14SEN1 52572 Federal Register / Vol. 72, No. 178 / Friday, September 14, 2007 / Notices Mortgage Loan Sale Procedure HUD selected a competitive sale as the method to sell the Mortgage Loans. This method of sale optimizes HUD’s return on the sale of these Mortgage Loans, affords the greatest opportunity for all qualified bidders to bid on the Mortgage Loans, and provides the quickest and most efficient vehicle for HUD to dispose of the Mortgage Loans. rmajette on PROD1PC64 with NOTICES Bidder Eligibility In order to bid in the sale, a prospective bidder must complete, execute and submit both a Confidentiality Agreement and a Qualification Statement acceptable to HUD. The following individuals and entities are ineligible to bid on any of the Mortgage Loans included in MHLS 2007–1: (1) Any employee of HUD, a member of such employee’s household, or an entity owned or controlled by any such employee or member of such an employee’s household; (2) any individual or entity that is debarred, suspended, or excluded from doing business with HUD pursuant to Title 24 of the Code of Federal Regulations, Part 24; (3) Any contractor, subcontractor and/ or consultant or advisor (including any agent, employee, partner, director, principal or affiliate of any of the foregoing) who performed services for or on behalf of HUD in connection with MHLS 2007–1; (4) Any individual who was a principal, partner, director, agent or employee of any entity or individual described in subparagraph 3 above, at any time during which the entity or individual performed services for or on behalf of HUD in connection with MHLS 2007–1; (5) Any individual or entity that uses the services, directly or indirectly, of any person or entity ineligible under subparagraphs 1 through 4 above to assist in preparing any of its bids on the Mortgage Loans; (6) Any individual or entity which employs or uses the services of an employee of HUD (other than in such employee’s official capacity) who is involved in MHLS 2007–1; (7) Any mortgagor (or affiliate of a mortgagor) that failed to submit to HUD on or before March 31, 2007, audited financial statements for 1999 through 2006 for a project securing a Mortgage Loan; and (8) Any individual or entity and any Related Party (as such term is defined in the Qualification Statement) of such individual or entity that is a mortgagor in any of HUD’s multifamily housing VerDate Aug<31>2005 15:44 Sep 13, 2007 Jkt 211001 programs and that is in default under such mortgage loan or is in violation of any regulatory or business agreements with HUD, unless such default or violation is cured on or before September 12, 2007. In addition, any entity or individual that serviced or held any Mortgage Loan at any time during the 2-year period prior to August 31, 2007, is ineligible to bid on such Mortgage Loan or on the pool containing such Mortgage Loan, but may bid on loan pools that do not contain Mortgage Loans that they have serviced or held at any time during the 2-year period prior to August 31, 2007. Also ineligible to bid on any Mortgage Loan are: (a) Any affiliate or principal of any entity or individual described in the preceding sentence; (b) any employee or subcontractor of such entity or individual during that 2-year period; or (c) any entity or individual that employs or uses the services of any other entity or individual described in this paragraph in preparing its bid on such Mortgage Loan. Prospective bidders should carefully review the Qualification Statement to determine whether they are eligible to submit bids on the Mortgage Loans in MHLS 2007–1. Freedom of Information Act Requests HUD reserves the right, in its sole and absolute discretion, to disclose information regarding MHLS 2007–1, including, but not limited to, the identity of any successful bidder and its bid price or bid percentage for any pool of loans or individual loan, upon the closing of the sale of all the Mortgage Loans. Even if HUD elects not to publicly disclose any information relating to MHLS 2007–1, HUD will have the right to disclose any information that HUD is obligated to disclose pursuant to the Freedom of Information Act and all regulations promulgated there under. Scope of Notice This notice applies to MHLS 2007–1 and does not establish HUD’s policy for the sale of other mortgage loans. Dated: September 7, 2007. Brian D. Montgomery, Assistant Secretary for Housing—Federal Housing Commissioner. [FR Doc. E7–18115 Filed 9–13–07; 8:45 am] BILLING CODE 4210–67–P PO 00000 Frm 00035 Fmt 4703 Sfmt 4703 DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT [Docket No. FR–5130–N–11] Privacy Act of 1974; Proposed New Routine Use—HUD’s Remedial Efforts in the Event of a Breach Office of the Chief Information Officer, HUD. ACTION: Establish a new routine use. AGENCY: SUMMARY: HUD proposes to add a new routine use to all records within its Systems of Records subject to the Privacy Act of 1974 (5 U.S.C. 552a), as amended. This new routine use will permit the disclosure of records, where records are relevant and reasonably necessary to respond, prevent, minimize, or remedy harm that may result from the breach of Personally Identifiable Information (PII). DATES: Effective date: This proposal shall be effective without further notice on October 15, 2007 unless comments are received on or before that date that would result in a contrary determination. Comments due by: October 15, 2007. ADDRESSES: Interested persons are invited to submit comments regarding this new routine use to the Rules Docket Clerk, Office of General Counsel, Department of Housing and Urban Development, 451 Seventh Street, SW., Room 10276, Washington, DC 20410– 0500. Communications should refer to the above docket number and title. An original and four copies of comments should be submitted. Facsimile (FAX) comments are not acceptable. A copy of each communication submitted will be available for public inspection and copying between 8 a.m. and 5 p.m. weekdays at the above address. FOR FURTHER INFORMATION CONTACT: Departmental Privacy Act Officer, telephone number (202) 708–2374. (This is not a toll free number.) SUPPLEMENTARY INFORMATION: On May 22, 2007, the Office of Management and Budget (OMB) issued Memorandum M– 07–16, ‘‘Safeguarding Against and Responding to the Breach of Personally Identifiable Information.’’ The memorandum includes a recommendation for agencies to adopt a new routine use specifically applying to the disclosure of such information in the course of responding to a breach. This new routine use is in response to that recommendation and is intended to facilitate a timely and effective response, allowing the disclosure of pertinent information to those individuals affected, as well as to persons and entities in a position to E:\FR\FM\14SEN1.SGM 14SEN1

Agencies

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Federal Register Volume 72, Number 178 (Friday, September 14, 2007)]
[Notices]
[Pages 52571-52572]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-18115]


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

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5113-N-02]


Notice of HUD-Held Multifamily and Healthcare Loan Sale (MHLS 
2007-1)

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

ACTION: Notice of sale of mortgage loans.

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

SUMMARY: This notice announces HUD's intention to sell certain 
unsubsidized multifamily and healthcare mortgage loans, without Federal 
Housing Administration (FHA) insurance, in a competitive, sealed bid 
sale (MHLS 2007-1). This notice also describes generally the bidding 
process for the sale and certain persons who are ineligible to bid.

DATES: The Bidder's Information Package (BIP) was made available to 
qualified bidders on August 16, 2007. Bids for the loans must be 
submitted on the bid date, which is currently scheduled for September 
19, 2007. HUD anticipates that awards will be made on or before 
September 21, 2007. Closings are expected to take place on or before 
September 28, 2007.

ADDRESSES: To become a qualified bidder and receive the BIP, 
prospective bidders must complete, execute, and submit a 
Confidentiality Agreement and a Qualification Statement acceptable to 
HUD. Both documents will be available on the HUD Web site at https://
www.hud.gov/offices/hsg/comp/asset/mfam/mhls.cfm. The executed 
documents must be mailed Corporate Finance Services, LLC, 7831 Woodmont 
Ave, No. 287, Bethesda, MD 20814, Attention: Alfreda Ward, Fax (703) 
847-2783.

FOR FURTHER INFORMATION CONTACT: John Lucey, Deputy Director, Asset 
Sales Office, Room 3136, Department of Housing and Urban Development, 
451 Seventh Street, SW., Washington, DC 20410-8000; telephone 202-708-
2625, extension 3927. Hearing- or speech-impaired individuals may call 
202-708-4594 (TTY). These are not toll-free numbers.

SUPPLEMENTARY INFORMATION:
    HUD announces its intention to sell in MHLS 2007-1 certain 
unsubsidized mortgage loans (Mortgage Loans) secured by multifamily and 
healthcare properties located throughout the United States pursuant to 
section 204(a) of the Departments of Veterans Affairs and Housing and 
Urban Development, and Independent Agencies Appropriations Act of 1997, 
12 U.S.C. 1715z-11a(a).
    The Mortgage Loans are comprised primarily of non-performing 
mortgage loans. A final listing of the Mortgage Loans will be included 
in the BIP. The Mortgage Loans will be sold without FHA insurance and 
with servicing released. HUD will offer qualified bidders an 
opportunity to bid competitively on the Mortgage Loans.
    The Mortgage Loans will be stratified for bidding purposes into 
several mortgage loan pools. Each pool will contain Mortgage Loans that 
generally have similar performance, property type, geographic location, 
lien position and other characteristics. Qualified bidders may submit 
bids on one or more pools of Mortgage Loans or may bid on individual 
loans. A mortgagor who is a qualified bidder may submit an individual 
bid on its own Mortgage Loan. Interested Mortgagors should review the 
Qualification Statement to determine whether they may also be eligible 
to qualify to submit bids on one or more pools of Mortgage Loans or on 
individual loans in MHLS 2007-1.

The Bidding Process

    The BIP will describe in detail the procedure for bidding in MHLS 
2007-1. The BIP will also include a standardized nonnegotiable loan 
sale agreement (Loan Sale Agreement).
    As part of its bid, each bidder must submit a deposit equal to the 
greater of $100,000 or 10% of the bid price. In the event the bidder's 
aggregate bid is less than $100,000, the minimum deposit shall be not 
less than fifty percent (50%) of the bidder's aggregate bid. HUD will 
evaluate the bids submitted and determine the successful bids in its 
sole and absolute discretion. If a bidder is successful, the bidder's 
deposit will be non-refundable and will be applied toward the purchase 
price. Deposits will be returned to unsuccessful bidders. Closings are 
scheduled to occur on or before September 28, 2007.
    These are the essential terms of sale. The Loan Sale Agreement, 
which will be included in the BIP, will contain additional terms and 
details. To ensure a competitive bidding process, the terms of the 
bidding process and the Loan Sale Agreement are not subject to 
negotiation.

Due Diligence Review

    The BIP will describe the due diligence process for reviewing loan 
files in MHLS 2007-1. Qualified bidders will be able to access loan 
information remotely via a high-speed Internet connection. Further 
information on performing due diligence review of the Mortgage Loans 
will be provided in the BIP.

Mortgage Loan Sale Policy

    HUD reserves the right to add Mortgage Loans to or delete Mortgage 
Loans from MHLS 2007-1 at any time prior to the Award Date. HUD also 
reserves the right to reject any and all bids, in whole or in part, 
without prejudice to HUD's right to include any Mortgage Loans in a 
later sale. Mortgage Loans will not be withdrawn after the Award Date 
except as is specifically provided in the Loan Sale Agreement.

[[Page 52572]]

Mortgage Loan Sale Procedure

    HUD selected a competitive sale as the method to sell the Mortgage 
Loans. This method of sale optimizes HUD's return on the sale of these 
Mortgage Loans, affords the greatest opportunity for all qualified 
bidders to bid on the Mortgage Loans, and provides the quickest and 
most efficient vehicle for HUD to dispose of the Mortgage Loans.

Bidder Eligibility

    In order to bid in the sale, a prospective bidder must complete, 
execute and submit both a Confidentiality Agreement and a Qualification 
Statement acceptable to HUD. The following individuals and entities are 
ineligible to bid on any of the Mortgage Loans included in MHLS 2007-1:
    (1) Any employee of HUD, a member of such employee's household, or 
an entity owned or controlled by any such employee or member of such an 
employee's household;
    (2) any individual or entity that is debarred, suspended, or 
excluded from doing business with HUD pursuant to Title 24 of the Code 
of Federal Regulations, Part 24;
    (3) Any contractor, subcontractor and/or consultant or advisor 
(including any agent, employee, partner, director, principal or 
affiliate of any of the foregoing) who performed services for or on 
behalf of HUD in connection with MHLS 2007-1;
    (4) Any individual who was a principal, partner, director, agent or 
employee of any entity or individual described in subparagraph 3 above, 
at any time during which the entity or individual performed services 
for or on behalf of HUD in connection with MHLS 2007-1;
    (5) Any individual or entity that uses the services, directly or 
indirectly, of any person or entity ineligible under subparagraphs 1 
through 4 above to assist in preparing any of its bids on the Mortgage 
Loans;
    (6) Any individual or entity which employs or uses the services of 
an employee of HUD (other than in such employee's official capacity) 
who is involved in MHLS 2007-1;
    (7) Any mortgagor (or affiliate of a mortgagor) that failed to 
submit to HUD on or before March 31, 2007, audited financial statements 
for 1999 through 2006 for a project securing a Mortgage Loan; and
    (8) Any individual or entity and any Related Party (as such term is 
defined in the Qualification Statement) of such individual or entity 
that is a mortgagor in any of HUD's multifamily housing programs and 
that is in default under such mortgage loan or is in violation of any 
regulatory or business agreements with HUD, unless such default or 
violation is cured on or before September 12, 2007.
    In addition, any entity or individual that serviced or held any 
Mortgage Loan at any time during the 2-year period prior to August 31, 
2007, is ineligible to bid on such Mortgage Loan or on the pool 
containing such Mortgage Loan, but may bid on loan pools that do not 
contain Mortgage Loans that they have serviced or held at any time 
during the 2-year period prior to August 31, 2007. Also ineligible to 
bid on any Mortgage Loan are: (a) Any affiliate or principal of any 
entity or individual described in the preceding sentence; (b) any 
employee or subcontractor of such entity or individual during that 2-
year period; or (c) any entity or individual that employs or uses the 
services of any other entity or individual described in this paragraph 
in preparing its bid on such Mortgage Loan.
    Prospective bidders should carefully review the Qualification 
Statement to determine whether they are eligible to submit bids on the 
Mortgage Loans in MHLS 2007-1.

Freedom of Information Act Requests

    HUD reserves the right, in its sole and absolute discretion, to 
disclose information regarding MHLS 2007-1, including, but not limited 
to, the identity of any successful bidder and its bid price or bid 
percentage for any pool of loans or individual loan, upon the closing 
of the sale of all the Mortgage Loans. Even if HUD elects not to 
publicly disclose any information relating to MHLS 2007-1, HUD will 
have the right to disclose any information that HUD is obligated to 
disclose pursuant to the Freedom of Information Act and all regulations 
promulgated there under.

Scope of Notice

    This notice applies to MHLS 2007-1 and does not establish HUD's 
policy for the sale of other mortgage loans.

    Dated: September 7, 2007.
Brian D. Montgomery,
Assistant Secretary for Housing--Federal Housing Commissioner.
[FR Doc. E7-18115 Filed 9-13-07; 8:45 am]
BILLING CODE 4210-67-P

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