Notice of HUD-Held Multifamily and Healthcare Loan Sale, 12775-12777 [2010-5810]

Download as PDF 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. VerDate Nov<24>2008 15:08 Mar 16, 2010 Jkt 220001 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 Frm 00053 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 http:// 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. VerDate Nov<24>2008 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 PO 00000 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. wwoods2 on DSK1DXX6B1PROD with NOTICES_PART 1 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 VerDate Nov<24>2008 15:08 Mar 16, 2010 Jkt 220001 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 Sfmt 4703 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. E:\FR\FM\17MRN1.SGM 17MRN1

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]


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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 http://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