Notice of HUD-Held Multifamily and Healthcare Loan Sale (MHLS 2010-2), 54900-54902 [2010-22399]
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54900
ACTION:
Federal Register / Vol. 75, No. 174 / Thursday, September 9, 2010 / Notices
Notice.
HUD announces the
availability on its Web site of the
applicant information, submission
deadlines, funding criteria, and other
requirements for the FY2010 LeadBased Paint Hazard Control Grant
Program and Lead Hazard Reduction
Demonstration Grant Program NOFA.
Approximately $110 million is made
available through this NOFA, by the
Consolidated Appropriations Act, 2010
(Pub. L. 111–117, approved December
16, 2009). The purpose of these
programs is to assist states, Native
American Tribes, cities, counties/
parishes, or other units of local
government undertake comprehensive
programs to identify and control leadbased paint hazards in eligible privately
owned rental or owner-occupied
housing. The Lead Hazard Reduction
Demonstration Grant Program is
targeted, however, to urban jurisdictions
with the greatest lead-based paint
hazard control needs.
The notice providing information
regarding the application process,
funding criteria and eligibility
requirements can be found using the
Department of Housing and Urban
Development agency link on the
Grants.gov/Find Web site at https://
www.grants.gov/search/agency.do. A
link to Grants.gov is also available on
the HUD Web site at https://
www.hud.gov/offices/adm/grants/
fundsavail.cfm. The Catalogue of
Federal Domestic Assistance (CFDA)
number for the Lead-Based Paint Hazard
Control Program is 14.900. The CFDA
number for the Lead Hazard Reduction
Demonstration Grant Program is 14.905.
Applications must be submitted
electronically through Grants.gov.
FOR FURTHER INFORMATION CONTACT: For
information concerning the Lead-Based
Paint Hazard Control Grant Program and
Lead Hazard Reduction Demonstration
Grant Program, contact Michelle M.
Miller, Director, Programs Division,
Office of Healthy Homes and Lead
Hazard Control, Department of Housing
and Urban Development, 451 Seventh
Street, SW., Room 8236, Washington DC
20410–3000; telephone number 202–
402–5769 (this is not a toll-free
number). Persons with speech or
hearing impairments may access this
telephone number via TTY by calling
the toll-free Federal Relay Service
during working hours at 800–877–8339.
mstockstill on DSKH9S0YB1PROD with NOTICES
SUMMARY:
Dated: September 1, 2010.
Aaron Santa Anna,
Assistant General Counsel for Regulations.
[FR Doc. 2010–22537 Filed 9–8–10; 8:45 am]
BILLING CODE 4210–67–P
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DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT
[Docket No. FR–5407–N–02]
Notice of HUD–Held Multifamily and
Healthcare Loan Sale (MHLS 2010–2)
Office of the Assistant
Secretary for Housing—Federal Housing
Commissioner, HUD.
ACTION: Notice of sale of mortgage loans.
AGENCY:
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
2010–2). Additionally, HUD may extend
the sale to include a supplementary
pool of unsubsidized multifamily
mortgage loan(s), without 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 Qualification Statement in
connection with the sale has the
following new provisions and revisions:
(1) Part II, Number 7 was revised to
reflect that the Purchaser must also meet
the requirements in Paragraph I of the
Qualification Statement to become a
qualified bidder with respect to the
relevant Mortgage Loans; (2) Part II,
Number 8 and Paragraph M were added
to allow a limited partner or nonmanaging member (which may include
a tax credit investor) to qualify to bid on
a Mortgage Loan(s) in which Purchaser
has made a financial investment; (3)
paragraph K was revised to allow
Purchaser the option to provide a
complete listing or organizational chart
of known Related Parties or affiliates
which HUD will review, pursuant to its
2530 Previous Participation process, to
determine whether a Purchaser is a
Qualified Bidder; and (4) Paragraph L
was added to descibe the status of, and
limitations on bidding for, a Purchaser
who has selected box 8.
The Department has notified units of
Local Governments of this planned sale
and has provided each jurisdiction with
the opportunity to purchase assets
directly from the Department. It is
anticipated that any direct sales of these
notes to units of local governments
would be offered and closed in the same
timeframe as the competitive sale.
The Department is also in the process
of working with the California Housing
Finance Agency for the direct sale of
The Winery, a multifamily loan. It is
anticipated that the sale of this asset
SUMMARY:
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will take place in the same timeframe as
the competitive sale.
DATES: The Bidder’s Information
Package (BIP) was made available to
qualified bidders on August 11, 2010.
Bids will only be accepted during the
period from 1 p.m. EDT on September
8, 2010 to 1 p.m. EDT on September 9,
2010. HUD anticipates that awards will
be made on or before September 10,
2010. Closings are expected to take
place between September 15, 2010 and
September 22, 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 are 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 2010–2
Sale Coordinator, Fax: 1–617–531–
3499.
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
2010–2 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, which may 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. 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
FOR FURTHER INFORMATION CONTACT:
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Federal Register / Vol. 75, No. 174 / Thursday, September 9, 2010 / Notices
pools of Mortgage Loans or may bid on
individual loans. A mortgagor, or
related party who is a qualified bidder
as set forth in the Qualification
Statement and whose loan is current
may submit an individual bid on its
own Mortgage Loan. A tax credit
investor who is a qualified bidder may
submit a bid(s) in accordance with the
terms set forth in the Qualification
Statement.
Interested mortgagors or related
parties 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
2010–2.
The Bidding Process
The BIP will describe in detail the
procedure for bidding in MHLS 2010–2.
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: (1) One hundred
thousand dollars ($100,000); or (2) 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 September 15, 2010 and
September 22, 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.
mstockstill on DSKH9S0YB1PROD with NOTICES
Due Diligence Review
The BIP will describe the due
diligence process for reviewing loan
files in MHLS 2010–2. 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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Mortgage Loan Sale Policy
HUD reserves the right to add
Mortgage Loans to or remove Mortgage
Loans from MHLS 2010–2 at any time
prior to the Award Date, without
prejudice to HUD’s right to include any
Mortgage Loans in a later sale. HUD also
reserves the right to reject any and all
bids, in whole or in part. 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
affordability 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 State and Local Government
acceptable to HUD. The following
individuals and entities are ineligible to
bid on any of the Mortgage Loans
included in MHLS 2010–2:
(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 2 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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54901
foregoing) who performed services for or
on behalf of HUD in connection with
MHLS 2010–2;
(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 2010–2;
(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 2010–2;
(7) any mortgagor (or affiliate of a
mortgagor) that failed to submit to HUD
on or before July 30, 2010, audited
financial statements for fiscal years 2005
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 or
healthcare 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 was cured on
or before July 30, 2010. This paragraph
does not pertain to a tax credit investor;
(9) any entity or individual that
serviced or held any Mortgage Loan at
any time during the 2-year period prior
to July 30, 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 July 30, 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) for sale(s) limited to not-forprofit organizations and units of State
and Local Government, a prospective
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54902
Federal Register / Vol. 75, No. 174 / Thursday, September 9, 2010 / Notices
bidder must qualify as one or more of
the following:
(1) An entity that is a nonprofit
organization as described in 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, as
revised, to determine whether they are
eligible to submit bids on the Mortgage
Loans in MHLS 2010–2.
Freedom of Information Act Requests
HUD reserves the right, in its sole and
absolute discretion, to disclose
information regarding MHLS 2010–2,
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 2010–2, 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 2010–2
and does not establish HUD’s policy for
the sale of other mortgage loans.
Dated: August 18, 2010.
David H. Stevens,
Assistant Secretary for Housing—Federal
Housing Commissioner.
[FR Doc. 2010–22399 Filed 9–8–10; 8:45 am]
BILLING CODE 4210–67–P
published October 6, 2009, remain in
effect.
For
questions on how areas are designated
and on geographic definitions, contact
Michael K. Hollar, Senior Economist,
Economic Development and Public
Finance Division, Office of Policy
Development and Research, Department
of Housing and Urban Development,
451 Seventh Street, SW., Room 8234,
Washington, DC 20410–6000; telephone
number 202–402–5878, or send an email to Michael.K.Hollar@hud.gov. For
specific legal questions pertaining to
Section 42, contact Branch 5, Office of
the Associate Chief Counsel,
Passthroughs and Special Industries,
Internal Revenue Service, 1111
Constitution Avenue, NW., Washington,
DC 20224; telephone number 202–622–
3040, fax number 202–622–4753. For
questions about the ‘‘HUB Zones’’
program, contact Mariana Pardo,
Assistant Administrator for
Procurement Policy, Office of
Government Contracting, Small
Business Administration, 409 Third
Street, SW., Suite 8800, Washington, DC
20416; telephone number 202–205–
8885, fax number 202–205–7167, or
send an e-mail to hubzone@sba.gov. A
text telephone is available for persons
with hearing or speech impairments at
202–708–8339. (These are not toll-free
telephone numbers.) Additional copies
of this notice are available through HUD
User at 800–245–2691 for a small fee to
cover duplication and mailing costs.
Copies Available Electronically: This
notice and additional information about
DDAs and QCTs are available
electronically on the Internet at https://
www.huduser.org/datasets/qct.html.
FOR FURTHER INFORMATION CONTACT:
DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT
SUPPLEMENTARY INFORMATION:
[Docket No. FR–5432–N–01]
This Document
Statutorily Mandated Designation of
Difficult Development Areas and
Qualified Census Tracts for 2011
This notice designates DDAs for each
of the 50 states, the District of Columbia,
Puerto Rico, American Samoa, Guam,
the Northern Mariana Islands, and the
U.S. Virgin Islands. The designations of
DDAs in this notice are based on final
Fiscal Year (FY) 2010 Fair Market Rents
(FMRs), FY2010 income limits, and
2000 Census population counts, as
explained below. In accordance with the
Gulf Opportunity Zone Act of 2005 (GO
Zone Act) (Pub. L. 109–135, approved
December 21, 2005), as amended by the
U.S. Troop Readiness, Veterans’ Care,
Katrina Recovery, and Iraq
Accountability Appropriations Act of
2007, (Pub.L.110–28, approved, May 25,
2007), GO Zone DDAs expire on
December 31, 2010. Thus, this notice
does not designate GO Zone DDAs.
Office of the Assistant
Secretary for Policy Development and
Research, HUD.
ACTION: Notice.
AGENCY:
This document designates
‘‘Difficult Development Areas’’ (DDAs)
for purposes of the Low-Income
Housing Tax Credit (LIHTC) under
Section 42 of the Internal Revenue Code
of 1986 (IRC) (26 U.S.C. 42). The United
States Department of Housing and
Urban Development (HUD) makes new
DDA designations annually. The
designations of ‘‘Qualified Census
Tracts’’ (QCTs) under IRC Section 42
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SUMMARY:
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2000 Census
Data from the 2000 Census on total
population of metropolitan areas and
nonmetropolitan areas are used in the
designation of DDAs. The Office of
Management and Budget (OMB) first
published new metropolitan area
definitions incorporating 2000 Census
data in OMB Bulletin No. 03–04 on June
6, 2003, and updated them periodically
through OMB Bulletin No. 09–01 on
November 20, 2008. The FY2010 FMRs
and FY2010 income limits used to
designate DDAs are based on these new
metropolitan statistical area (MSA)
definitions, with modifications to
account for substantial differences in
rental housing markets (and, in some
cases, median income levels) within
MSAs.
Background
The U.S. Department of the Treasury
(Treasury) and its Internal Revenue
Service (IRS) are authorized to interpret
and enforce the provisions of the IRC,
including the LIHTC found at Section
42. The Secretary of HUD is required to
designate DDAs and QCTs by IRC
Section 42(d)(5)(B). In order to assist in
understanding HUD’s mandated
designation of DDAs and QCTs for use
in administering IRC Section 42, a
summary of the section is provided. The
following summary does not purport to
bind Treasury or the IRS in any way,
nor does it purport to bind HUD, since
HUD has authority to interpret or
administer the IRC only in instances
where it receives explicit statutory
delegation.
Summary of the Low-Income Housing
Tax Credit
The LIHTC is a tax incentive intended
to increase the availability of lowincome housing. IRC Section 42
provides an income tax credit to owners
of newly constructed or substantially
rehabilitated low-income rental housing
projects. The dollar amount of the
LIHTC available for allocation by each
state (credit ceiling) is limited by
population. Each state is allowed a
credit ceiling based on a statutory
formula indicated at IRC Section
42(h)(3). States may carry forward
unallocated credits derived from the
credit ceiling for one year; however, to
the extent such unallocated credits are
not used by then, the credits go into a
national pool to be redistributed to
states as additional credit. State and
local housing agencies allocate the
state’s credit ceiling among low-income
housing buildings whose owners have
applied for the credit. Besides IRC
Section 42 credits derived from the
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Agencies
[Federal Register Volume 75, Number 174 (Thursday, September 9, 2010)]
[Notices]
[Pages 54900-54902]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-22399]
-----------------------------------------------------------------------
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-5407-N-02]
Notice of HUD-Held Multifamily and Healthcare Loan Sale (MHLS
2010-2)
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 2010-2). Additionally, HUD may extend the sale to include a
supplementary pool of unsubsidized multifamily mortgage loan(s),
without 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 Qualification Statement in connection with the sale has the
following new provisions and revisions: (1) Part II, Number 7 was
revised to reflect that the Purchaser must also meet the requirements
in Paragraph I of the Qualification Statement to become a qualified
bidder with respect to the relevant Mortgage Loans; (2) Part II, Number
8 and Paragraph M were added to allow a limited partner or non-managing
member (which may include a tax credit investor) to qualify to bid on a
Mortgage Loan(s) in which Purchaser has made a financial investment;
(3) paragraph K was revised to allow Purchaser the option to provide a
complete listing or organizational chart of known Related Parties or
affiliates which HUD will review, pursuant to its 2530 Previous
Participation process, to determine whether a Purchaser is a Qualified
Bidder; and (4) Paragraph L was added to descibe the status of, and
limitations on bidding for, a Purchaser who has selected box 8.
The Department has notified units of Local Governments of this
planned sale and has provided each jurisdiction with the opportunity to
purchase assets directly from the Department. It is anticipated that
any direct sales of these notes to units of local governments would be
offered and closed in the same timeframe as the competitive sale.
The Department is also in the process of working with the
California Housing Finance Agency for the direct sale of The Winery, a
multifamily loan. It is anticipated that the sale of this asset will
take place in the same timeframe as the competitive sale.
DATES: The Bidder's Information Package (BIP) was made available to
qualified bidders on August 11, 2010. Bids will only be accepted during
the period from 1 p.m. EDT on September 8, 2010 to 1 p.m. EDT on
September 9, 2010. HUD anticipates that awards will be made on or
before September 10, 2010. Closings are expected to take place between
September 15, 2010 and September 22, 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 are 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 2010-2 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 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
2010-2 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, which may 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. 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
[[Page 54901]]
pools of Mortgage Loans or may bid on individual loans. A mortgagor, or
related party who is a qualified bidder as set forth in the
Qualification Statement and whose loan is current may submit an
individual bid on its own Mortgage Loan. A tax credit investor who is a
qualified bidder may submit a bid(s) in accordance with the terms set
forth in the Qualification Statement.
Interested mortgagors or related parties 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 2010-2.
The Bidding Process
The BIP will describe in detail the procedure for bidding in MHLS
2010-2. 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: (1) One hundred
thousand dollars ($100,000); or (2) 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 September 15, 2010 and September 22, 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 2010-2. 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 remove Mortgage
Loans from MHLS 2010-2 at any time prior to the Award Date, without
prejudice to HUD's right to include any Mortgage Loans in a later sale.
HUD also reserves the right to reject any and all bids, in whole or in
part. 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 affordability 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 State and Local Government acceptable to HUD. The following
individuals and entities are ineligible to bid on any of the Mortgage
Loans included in MHLS 2010-2:
(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 2 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 2010-2;
(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 2010-2;
(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 2010-2;
(7) any mortgagor (or affiliate of a mortgagor) that failed to
submit to HUD on or before July 30, 2010, audited financial statements
for fiscal years 2005 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 or healthcare
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 was cured on or before July 30, 2010. This
paragraph does not pertain to a tax credit investor;
(9) any entity or individual that serviced or held any Mortgage
Loan at any time during the 2-year period prior to July 30, 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 July 30, 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) for sale(s) limited to not-
for-profit organizations and units of State and Local Government, a
prospective
[[Page 54902]]
bidder must qualify as one or more of the following:
(1) An entity that is a nonprofit organization as described in
Section 501(c)(3) of the Internal Revenue Code of 1954 (26 U.S.C.A.
Sec. 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, as revised, to determine whether they are eligible to submit
bids on the Mortgage Loans in MHLS 2010-2.
Freedom of Information Act Requests
HUD reserves the right, in its sole and absolute discretion, to
disclose information regarding MHLS 2010-2, 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 2010-2, 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 2010-2 and does not establish HUD's
policy for the sale of other mortgage loans.
Dated: August 18, 2010.
David H. Stevens,
Assistant Secretary for Housing--Federal Housing Commissioner.
[FR Doc. 2010-22399 Filed 9-8-10; 8:45 am]
BILLING CODE 4210-67-P