Notice of HUD-Held Multifamily and Healthcare Loan Sale, 12775-12777 [2010-5810]
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Federal Register / Vol. 75, No. 51 / Wednesday, March 17, 2010 / Notices
Authority: Section 3506 of the Paperwork
Reduction Act of 1995, 44 U.S.C. Chapter 35,
as amended.
Dated: March 11, 2010.
Mary K. Kinney,
Executive Vice President, Government
National Mortgage Association.
[FR Doc. 2010–5808 Filed 3–16–10; 8:45 am]
BILLING CODE 4210–67–P
DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT
[Docket No. FR–5374–N–07]
Buy American Exceptions Under the
American Recovery and Reinvestment
Act of 2009
wwoods2 on DSK1DXX6B1PROD with NOTICES_PART 1
AGENCY: Office of the Assistant
Secretary for Public and Indian
Housing, HUD.
ACTION: Notice.
SUMMARY: In accordance with the
American Recovery and Reinvestment
Act of 2009 (Pub. L. 111–05, approved
February 17, 2009) (Recovery Act), and
implementing guidance of the Office of
Management and Budget (OMB), this
notice advises that certain exceptions to
the Buy American requirement of the
Recovery Act have been determined
applicable for work using Capital Fund
Recovery Formula and Competition
(CFRFC) grant funds. Specifically, an
exception was granted to the West
Valley Housing Authority for the
installation of a ductless split system
during the LaCreole Manor Heating,
Ventilation and Air Conditioning
(HVAC) and Water Distribution
Replacement Project.
FOR FURTHER INFORMATION CONTACT:
Dominique G. Blom, Deputy Assistant
Secretary for Public Housing
Investments, Office of Public Housing
Investments, Office of Public and Indian
Housing, Department of Housing and
Urban Development, 451 7th Street,
SW., Room 4210, Washington, DC
20410–4000, telephone number 202–
402–8500 (this is not a toll-free
number). Persons with hearing- or
speech-impairments may access this
number through TTY by calling the tollfree Federal Information Relay Service
at 800–877–8339.
SUPPLEMENTARY INFORMATION: Section
1605(a) of the Recovery Act provides
that none of the funds appropriated or
made available by the Recovery Act may
be used for a project for the
construction, alteration, maintenance, or
repair of a public building or public
work unless all of the iron, steel, and
manufactured goods used in the project
are produced in the United States.
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15:08 Mar 16, 2010
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Section 1605(b) provides that the Buy
American requirement shall not apply
in any case or category in which the
head of a Federal department or agency
finds that: (1) Applying the Buy
American requirement would be
inconsistent with the public interest; (2)
iron, steel, and the relevant
manufactured goods are not produced in
the U.S. in sufficient and reasonably
available quantities or of satisfactory
quality, or (3) inclusion of iron, steel,
and manufactured goods will increase
the cost of the overall project by more
than 25 percent. Section 1605(c)
provides that if the head of a Federal
department or agency makes a
determination pursuant to section
1605(b), the head of the department or
agency shall publish a detailed written
justification in the Federal Register.
In accordance with section 1605(c) of
the Recovery Act and OMB’s
implementing guidance published on
April 23, 2009 (74 FR 18449), this notice
advises the public that, on February 26,
2010, upon request of the West Valley
Housing Authority, HUD granted an
exception to the applicability of the Buy
American requirements with respect to
work, using CFRFC grant funds, based
on the fact that the relevant
manufactured goods (ductless split
HVAC systems) are not produced in the
U.S. in sufficient and reasonably
available quantities or of satisfactory
quality.
Dated: March 3, 2010.
Sandra B. Henriquez,
Assistant Secretary for Public and Indian
Housing.
[FR Doc. 2010–5751 Filed 3–16–10; 8:45 am]
BILLING CODE 4210–67–P
DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT
[Docket No. FR–5407–N–01; MHLS 2010–1]
Notice of HUD-Held Multifamily and
Healthcare Loan Sale
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
2010–1). Additionally, HUD intends to
extend the sale to include a
supplementary pool of unsubsidized
multifamily mortgage loan(s), without
Federal Housing Administration (FHA)
PO 00000
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Fmt 4703
Sfmt 4703
12775
insurance, limited to not-for-profit
organizations and units of State and
local government. This notice also
describes generally the bidding process
for the sale and certain persons who are
ineligible to bid.
The Department is also working with
units of local governments on potential
direct loan sales. It is anticipated that
any sales of these notes would be
offered and closed in the same
timeframe as the competitive sale.
DATES: The Bidder’s Information
Package (BIP) was made available to
qualified bidders on February 26, 2010.
Bids for the loans must be submitted on
the bid date, which is currently
scheduled for March 24, 2010. HUD
anticipates that awards will be made on
or before March 25, 2010. Closings are
expected to take place between April 1,
2010 and April 9, 2010.
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. Please mail and fax
executed documents to KDX Ventures:
KDX Ventures, c/o The Debt Exchange,
133 Federal Street, 10th Floor, Boston,
MA 02111.
Attention: MHLS 2010–1 Sale
Coordinator.
Fax: 1–617–531–3499.
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 number 202–
708–2625, extension 3927. Hearing- or
speech-impaired individuals may call
telephone number 202–708–4594 (TTY).
These are not toll-free numbers.
SUPPLEMENTARY INFORMATION: HUD
announces its intention to sell in MHLS
2010–1 certain unsubsidized mortgage
loans (Mortgage Loans) secured by
multifamily and healthcare properties
located throughout the United States.
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, including a
supplementary pool of unsubsidized
multifamily mortgage loan(s), without
E:\FR\FM\17MRN1.SGM
17MRN1
12776
Federal Register / Vol. 75, No. 51 / Wednesday, March 17, 2010 / Notices
Mortgage Loan Sale Policy
The Bidding Process
The BIP will describe in detail the
procedure for bidding in MHLS 2010–1.
The BIP will also include a standardized
non-negotiable loan sale agreement
(Loan Sale Agreement). Deposits are
calculated based upon each bidder’s
aggregate bid price. For an aggregate bid
price greater than or equal to one
hundred thousand dollars ($100,000),
each bidder must submit a deposit equal
to the greater of: (a) One hundred
thousand dollars ($100,000); or (b) ten
percent (10%) of its bid price. In the
event the bidder’s aggregate bid price is
less than $100,000, the minimum
deposit shall not be less than fifty
percent (50%) of its bid price.
HUD will evaluate the bids submitted
and determine the successful bids, in
terms of the best value to HUD, 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 expected to take place
between April 1, 2010 and April 9,
2010.
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.
wwoods2 on DSK1DXX6B1PROD with NOTICES_PART 1
Federal Housing Administration (FHA)
insurance, limited to not-for-profit
organizations and units of State and
local government. 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 2010–1 for
eligible bidders.
Mortgage Loan Sale Procedure
Due Diligence Review
The BIP will describe the due
diligence process for reviewing loan
files in MHLS 2010–1. 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.
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15:08 Mar 16, 2010
Jkt 220001
HUD reserves the right to add
Mortgage Loans to or delete Mortgage
Loans from MHLS 2010–1 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.
This is a sale of unsubsidized
mortgage loans, 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).
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.
HUD’s intention to limit a
supplementary pool to not-for-profit
organizations and units of State and
local government enables HUD to
ensure certain projects maintain
affordablity after the sale.
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. Not-for-profit organizations and
units of State and local government
must complete, execute and submit both
a Confidentiality Agreement and
Qualification Statement for Non-Profits,
Units of General Local Government and
State Agencies acceptable to HUD. The
following individuals and entities are
ineligible to bid on any of the Mortgage
Loans included in MHLS 2010–1:
(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, and Title 25 of the
Code of Federal Regulations, Part 2424;
(3) Any contractor, subcontractor and/
or consultant or advisor (including any
agent, employee, partner, director,
principal or affiliate of any of the
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Frm 00054
Fmt 4703
Sfmt 4703
foregoing) who performed services for or
on behalf of HUD in connection with
MHLS 2010–1;
(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 2010–1;
(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 2010–1;
(7) Any mortgagor (or affiliate of a
mortgagor) that failed to submit to HUD
on or before March 1, 2010, audited
financial statements for fiscal years 2001
through 2009 for a project securing a
Mortgage Loan;
(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 March
17, 2010;
(9) Any entity or individual that
serviced or held any Mortgage Loan at
any time during the 2-year period prior
to March 17, 2010, 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 March 1, 2010; and
(10) Also ineligible to bid on any
Mortgage Loan are: (a) Any affiliate or
principal of any entity or individual
described in the preceding sentence
(paragraph 9); (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.
In addition, to be eligible to bid in
HUD’s supplementary pool of
unsubsidized multifamily mortgage
loan(s) limited to not-for-profit
organizations and units of State and
local government, a prospective bidder
must qualify as one or more of the
following:
E:\FR\FM\17MRN1.SGM
17MRN1
Federal Register / Vol. 75, No. 51 / Wednesday, March 17, 2010 / Notices
1, 2009 and ending on December 31,
2009.
(1) An entity that is a nonprofit as
defined by Section 501(c)(3) of the
Internal Revenue Code of 1954 (26
U.S.C.A. 501(c)(3)); and/or
(2) An entity that is unit of general
local government or State agency.
Prospective bidders should carefully
review the Qualification Statement to
determine whether they are eligible to
submit bids on the Mortgage Loans in
MHLS 2010–1.
Freedom of Information Act Requests
HUD reserves the right, in its sole and
absolute discretion, to disclose
information regarding MHLS 2010–1,
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 2010–1, 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 thereunder.
Scope of Notice
This notice applies to MHLS 2010–1
and does not establish HUD’s policy for
the sale of other mortgage loans.
Dated: March 9, 2010.
David H. Stevens,
Assistant Secretary for Housing—Federal
Housing Commissioner.
[FR Doc. 2010–5810 Filed 3–16–10; 8:45 am]
BILLING CODE 4210–67–P
DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT
[Docket No. FR–5324–N–04]
Notice of Regulatory Waiver Requests
Granted for the Fourth Quarter of
Calendar Year 2009
AGENCY:
Office of the General Counsel,
HUD.
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ACTION:
Notice.
SUMMARY: Section 106 of the Department
of Housing and Urban Development
Reform Act of 1989 (the HUD Reform
Act) requires HUD to publish quarterly
Federal Register notices of all
regulatory waivers that HUD has
approved. Each notice covers the
quarterly period since the previous
Federal Register notice. The purpose of
this notice is to comply with the
requirements of section 106 of the HUD
Reform Act. This notice contains a list
of regulatory waivers granted by HUD
during the period beginning on October
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15:08 Mar 16, 2010
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FOR FURTHER INFORMATION CONTACT: For
general information about this notice,
contact Camille E. Acevedo, Associate
General Counsel for Legislation and
Regulations, Office of General Counsel,
Department of Housing and Urban
Development, 451 Seventh Street, SW.,
Room 10282, Washington, DC 20410–
0500, telephone 202–708–1793 (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 Information
Relay Service at 800–877–8339.
For information concerning a
particular waiver that was granted and
for which public notice is provided in
this document, contact the person
whose name and address follow the
description of the waiver granted in the
accompanying list of waivers that have
been granted in the fourth quarter of
calendar year 2009.
SUPPLEMENTARY INFORMATION:
Section 106 of the HUD Reform Act
added a new section 7(q) to the
Department of Housing and Urban
Development Act (42 U.S.C. 3535(q)),
which provides that:
1. Any waiver of a regulation must be
in writing and must specify the grounds
for approving the waiver;
2. Authority to approve a waiver of a
regulation may be delegated by the
Secretary only to an individual of
Assistant Secretary or equivalent rank,
and the person to whom authority to
waive is delegated must also have
authority to issue the particular
regulation to be waived;
3. Not less than quarterly, the
Secretary must notify the public of all
waivers of regulations that HUD has
approved, by publishing a notice in the
Federal Register. These notices (each
covering the period since the most
recent previous notification) shall:
a. Identify the project, activity, or
undertaking involved;
b. Describe the nature of the provision
waived and the designation of the
provision;
c. Indicate the name and title of the
person who granted the waiver request;
d. Describe briefly the grounds for
approval of the request; and
e. State how additional information
about a particular waiver may be
obtained.
Section 106 of the HUD Reform Act
also contains requirements applicable to
waivers of HUD handbook provisions
that are not relevant to the purpose of
this notice.
This notice follows procedures
provided in HUD’s Statement of Policy
PO 00000
Frm 00055
Fmt 4703
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12777
on Waiver of Regulations and Directives
issued on April 22, 1991 (56 FR 16337),
as revised and updated by the notice
issued on December 17, 2008 (73 FR
76674). In accordance with those
procedures and with the requirements
of section 106 of the HUD Reform Act,
waivers of regulations are granted by the
Assistant Secretary with jurisdiction
over the regulations for which a waiver
was requested. In those cases in which
a General Deputy Assistant Secretary
granted the waiver, the General Deputy
Assistant Secretary was serving in the
absence of the Assistant Secretary in
accordance with the office’s Order of
Succession.
This notice covers waivers of
regulations granted by HUD from
October 1, 2009 through December 31,
2009. For ease of reference, the waivers
granted by HUD are listed by HUD
program office (for example, the Office
of Community Planning and
Development, the Office of Fair Housing
and Equal Opportunity, the Office of
Housing, and the Office of Public and
Indian Housing, etc.). Within each
program office grouping, the waivers are
listed sequentially by the regulatory
section of title 24 of the Code of Federal
Regulations (CFR) that is being waived.
For example, a waiver of a provision in
24 CFR part 58 would be listed before
a waiver of a provision in 24 CFR part
570.
Where more than one regulatory
provision is involved in the grant of a
particular waiver request, the action is
listed under the section number of the
first regulatory requirement that appears
in 24 CFR and that is being waived. For
example, a waiver of both § 58.73 and
§ 58.74 would appear sequentially in the
listing under § 58.73.
Waiver of regulations that involve the
same initial regulatory citation are in
time sequence beginning with the
earliest-dated regulatory waiver.
Should HUD receive additional
information about waivers granted
during the period covered by this report
(the fourth quarter of calendar year
2009) before the next report is published
(the first quarter of calendar year 2010),
HUD will include any additional
waivers granted for the fourth quarter in
the next report.
Accordingly, information about
approved waiver requests pertaining to
HUD regulations is provided in the
Appendix that follows this notice.
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Agencies
[Federal Register Volume 75, Number 51 (Wednesday, March 17, 2010)]
[Notices]
[Pages 12775-12777]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-5810]
-----------------------------------------------------------------------
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-5407-N-01; MHLS 2010-1]
Notice of HUD-Held Multifamily and Healthcare Loan Sale
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 2010-1). Additionally, HUD intends to extend the sale to
include a supplementary pool of unsubsidized multifamily mortgage
loan(s), without Federal Housing Administration (FHA) insurance,
limited to not-for-profit organizations and units of State and local
government. This notice also describes generally the bidding process
for the sale and certain persons who are ineligible to bid.
The Department is also working with units of local governments on
potential direct loan sales. It is anticipated that any sales of these
notes would be offered and closed in the same timeframe as the
competitive sale.
DATES: The Bidder's Information Package (BIP) was made available to
qualified bidders on February 26, 2010. Bids for the loans must be
submitted on the bid date, which is currently scheduled for March 24,
2010. HUD anticipates that awards will be made on or before March 25,
2010. Closings are expected to take place between April 1, 2010 and
April 9, 2010.
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. Please mail and fax
executed documents to KDX Ventures:
KDX Ventures, c/o The Debt Exchange, 133 Federal Street, 10th Floor,
Boston, MA 02111.
Attention: MHLS 2010-1 Sale Coordinator.
Fax: 1-617-531-3499.
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 number
202-708-2625, extension 3927. Hearing- or speech-impaired individuals
may call telephone number 202-708-4594 (TTY). These are not toll-free
numbers.
SUPPLEMENTARY INFORMATION: HUD announces its intention to sell in MHLS
2010-1 certain unsubsidized mortgage loans (Mortgage Loans) secured by
multifamily and healthcare properties located throughout the United
States. 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, including a supplementary pool of
unsubsidized multifamily mortgage loan(s), without
[[Page 12776]]
Federal Housing Administration (FHA) insurance, limited to not-for-
profit organizations and units of State and local government. 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
2010-1 for eligible bidders.
The Bidding Process
The BIP will describe in detail the procedure for bidding in MHLS
2010-1. The BIP will also include a standardized non-negotiable loan
sale agreement (Loan Sale Agreement). Deposits are calculated based
upon each bidder's aggregate bid price. For an aggregate bid price
greater than or equal to one hundred thousand dollars ($100,000), each
bidder must submit a deposit equal to the greater of: (a) One hundred
thousand dollars ($100,000); or (b) ten percent (10%) of its bid price.
In the event the bidder's aggregate bid price is less than $100,000,
the minimum deposit shall not be less than fifty percent (50%) of its
bid price.
HUD will evaluate the bids submitted and determine the successful
bids, in terms of the best value to HUD, 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 expected to take
place between April 1, 2010 and April 9, 2010.
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 2010-1. 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 2010-1 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.
This is a sale of unsubsidized mortgage loans, 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).
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. HUD's
intention to limit a supplementary pool to not-for-profit organizations
and units of State and local government enables HUD to ensure certain
projects maintain affordablity after the sale.
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. Not-for-profit organizations and units of
State and local government must complete, execute and submit both a
Confidentiality Agreement and Qualification Statement for Non-Profits,
Units of General Local Government and State Agencies acceptable to HUD.
The following individuals and entities are ineligible to bid on any of
the Mortgage Loans included in MHLS 2010-1:
(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, and Title 25 of the Code of Federal
Regulations, Part 2424;
(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 2010-1;
(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 2010-1;
(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 2010-1;
(7) Any mortgagor (or affiliate of a mortgagor) that failed to
submit to HUD on or before March 1, 2010, audited financial statements
for fiscal years 2001 through 2009 for a project securing a Mortgage
Loan;
(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 March 17, 2010;
(9) Any entity or individual that serviced or held any Mortgage
Loan at any time during the 2-year period prior to March 17, 2010, 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 March 1, 2010; and
(10) Also ineligible to bid on any Mortgage Loan are: (a) Any
affiliate or principal of any entity or individual described in the
preceding sentence (paragraph 9); (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.
In addition, to be eligible to bid in HUD's supplementary pool of
unsubsidized multifamily mortgage loan(s) limited to not-for-profit
organizations and units of State and local government, a prospective
bidder must qualify as one or more of the following:
[[Page 12777]]
(1) An entity that is a nonprofit as defined by Section 501(c)(3)
of the Internal Revenue Code of 1954 (26 U.S.C.A. 501(c)(3)); and/or
(2) An entity that is unit of general local government or State
agency. Prospective bidders should carefully review the Qualification
Statement to determine whether they are eligible to submit bids on the
Mortgage Loans in MHLS 2010-1.
Freedom of Information Act Requests
HUD reserves the right, in its sole and absolute discretion, to
disclose information regarding MHLS 2010-1, 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 2010-1, 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 thereunder.
Scope of Notice
This notice applies to MHLS 2010-1 and does not establish HUD's
policy for the sale of other mortgage loans.
Dated: March 9, 2010.
David H. Stevens,
Assistant Secretary for Housing--Federal Housing Commissioner.
[FR Doc. 2010-5810 Filed 3-16-10; 8:45 am]
BILLING CODE 4210-67-P