Mortgage and Loan Insurance Programs Under the National Housing Act-Debenture Interest Rates, 47225-47226 [2011-19735]

Download as PDF Federal Register / Vol. 76, No. 150 / Thursday, August 4, 2011 / Notices Section E. Authority Superseded The previous delegations of authority from the Secretary of HUD to the Assistant Secretary for PIH are hereby revoked and superseded by this delegation of authority, including the previous delegation of authority for PIH published on August 4, 2004 (69 FR 47171). Section F. Authority To Represent HUD This consolidated delegation of authority is conclusive evidence of the authority of the Assistant Secretary for PIH, the General Deputy Assistant Secretary, or those with redelegated authority, to represent the Secretary and to execute, in the name of the Secretary, any instrument or document relinquishing or transferring any right, title, or interest of the Department in real or personal property. The Secretary may revoke the authority authorized herein, in whole or in part, at any time. Section G. Consultation and Coordination With the General Counsel The General Counsel shall consult and advise the Assistant Secretary for PIH and the General Deputy Assistant Secretary, as required and when requested, and shall enter into such protocols as administratively agreed to by the General Counsel and the Assistant Secretary for PIH or the General Deputy Assistant Secretary for PIH. This consolidated delegation of authority is to be exercised consistently with the delegation from the Secretary to the General Counsel. Authority: Section 7 (d) of the Department of Housing and Urban Development Act, as amended, (42 U.S.C. 3535(d). Dated: July 15, 2011. Shaun Donovan, Secretary. [FR Doc. 2011–19723 Filed 8–3–11; 8:45 am] BILLING CODE 4210–67–P DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT [Docket No. FR–5493–N–02] Mortgage and Loan Insurance Programs Under the National Housing Act—Debenture Interest Rates Office of the Assistant Secretary for Housing—Federal Housing Commissioner, HUD. ACTION: Notice. sroberts on DSK5SPTVN1PROD with NOTICES AGENCY: This notice announces changes in the interest rates to be paid on debentures issued with respect to a loan or mortgage insured by the Federal Housing Administration under the SUMMARY: VerDate Mar<15>2010 17:29 Aug 03, 2011 Jkt 223001 provisions of the National Housing Act (the Act). The interest rate for debentures issued under section 221(g)(4) of the Act during the 6-month period beginning July 1, 2011, is 3 percent. The interest rate for debentures issued under any other provision of the Act is the rate in effect on the date that the commitment to insure the loan or mortgage was issued, or the date that the loan or mortgage was endorsed (or initially endorsed if there are two or more endorsements) for insurance, whichever rate is higher. The interest rate for debentures issued under these other provisions with respect to a loan or mortgage committed or endorsed during the 6-month period beginning July 1, 2011, is 41⁄8 percent. However, as a result of an amendment to section 224 of the Act, if an insurance claim relating to a mortgage insured under sections 203 or 234 of the Act and endorsed for insurance after January 23, 2004, is paid in cash, the debenture interest rate for purposes of calculating a claim shall be the monthly average yield, for the month in which the default on the mortgage occurred, on United States Treasury Securities adjusted to a constant maturity of 10 years. FOR FURTHER INFORMATION CONTACT: Yong Sun, Department of Housing and Urban Development, 451 Seventh Street, SW., Room 5148, Washington, DC 20410–8000; telephone (202) 402–4778 (this is not a toll-free number). Individuals with speech or hearing impairments may access this number through TTY by calling the toll-free Federal Information Relay Service at (800) 877–8339. SUPPLEMENTARY INFORMATION: Section 224 of the National Housing Act (12 U.S.C. 1715o) provides that debentures issued under the Act with respect to an insured loan or mortgage (except for debentures issued pursuant to section 221(g)(4) of the Act) will bear interest at the rate in effect on the date the commitment to insure the loan or mortgage was issued, or the date the loan or mortgage was endorsed (or initially endorsed if there are two or more endorsements) for insurance, whichever rate is higher. This provision is implemented in HUD’s regulations at 24 CFR 203.405, 203.479, 207.259(e)(6), and 220.830. These regulatory provisions state that the applicable rates of interest will be published twice each year as a notice in the Federal Register. Section 224 further provides that the interest rate on these debentures will be set from time to time by the Secretary of HUD, with the approval of the Secretary of the Treasury, in an amount not in excess of the annual interest rate PO 00000 Frm 00086 Fmt 4703 Sfmt 4703 47225 determined by the Secretary of the Treasury pursuant to a statutory formula based on the average yield of all outstanding marketable Treasury obligations of maturities of 15 or more years. The Secretary of the Treasury (1) has determined, in accordance with the provisions of section 224, that the statutory maximum interest rate for the period beginning July 1, 2011, is 41⁄8 percent; and (2) has approved the establishment of the debenture interest rate by the Secretary of HUD at 41⁄8 percent for the 6-month period beginning July 1, 2011. This interest rate will be the rate borne by debentures issued with respect to any insured loan or mortgage (except for debentures issued pursuant to section 221(g)(4)) with insurance commitment or endorsement date (as applicable) within the latter 6 months of 2011. For convenience of reference, HUD is publishing the following chart of debenture interest rates applicable to mortgages committed or endorsed since January 1, 1980: Effective interest rate on or after prior to 91⁄2 ................ 97⁄8 ................ 113⁄4 .............. 127⁄8 .............. 123⁄4 .............. 101⁄4 .............. 103⁄8 .............. 111⁄2 .............. 133⁄8 .............. 115⁄8 .............. 111⁄8 .............. 101⁄4 .............. 81⁄4 ................ 8 ................... 9 ................... 91⁄8 ................ 93⁄8 ................ 91⁄4 ................ 9 ................... 81⁄8 ................ 9 ................... 83⁄4 ................ 81⁄2 ................ 8 ................... 8 ................... 73⁄4 ................ 7 ................... 65⁄8 ................ 73⁄4 ................ 83⁄8 ................ 71⁄4 ................ 61⁄2 ................ 71⁄4 ................ 63⁄4 ................ 71⁄8 ................ 63⁄8 ................ 61⁄8 ................ 51⁄2 ................ 61⁄8 ................ 61⁄2 ................ 61⁄2 ................ Jan. 1, 1980 July 1, 1980 Jan. 1, 1981 July 1, 1981 Jan. 1, 1982 Jan. 1, 1983 July 1, 1983 Jan. 1, 1984 July 1, 1984 Jan. 1, 1985 July 1, 1985 Jan. 1, 1986 July 1, 1986 Jan. 1, 1987 July 1, 1987 Jan. 1, 1988 July 1, 1988 Jan. 1, 1989 July 1, 1989 Jan. 1, 1990 July 1, 1990 Jan. 1, 1991 July 1, 1991 Jan. 1, 1992 July 1, 1992 Jan. 1, 1993 July 1, 1993 Jan. 1, 1994 July 1, 1994 Jan. 1, 1995 July 1, 1995 Jan. 1, 1996 July 1, 1996 Jan. 1, 1997 July 1, 1997 Jan. 1, 1998 July 1, 1998 Jan. 1, 1999 July 1, 1999 Jan. 1, 2000 July 1, 2000 July 1, 1980 Jan. 1, 1981 July 1, 1981 Jan. 1, 1982 Jan. 1, 1983 July 1, 1983 Jan. 1, 1984 July 1, 1984 Jan. 1, 1985 July 1, 1985 Jan. 1, 1986 July 1, 1986 Jan. 1. 1987 July 1, 1987 Jan. 1, 1988 July 1, 1988 Jan. 1, 1989 July 1, 1989 Jan. 1, 1990 July 1, 1990 Jan. 1, 1991 July 1, 1991 Jan. 1, 1992 July 1, 1992 Jan. 1, 1993 July 1, 1993 Jan. 1, 1994 July 1, 1994 Jan. 1, 1995 July 1, 1995 Jan. 1, 1996 July 1, 1996 Jan. 1, 1997 July 1, 1997 Jan. 1, 1998 July 1, 1998 Jan. 1, 1999 July 1, 1999 Jan. 1, 2000 July 1, 2000 Jan. 1, 2001 E:\FR\FM\04AUN1.SGM 04AUN1 47226 Federal Register / Vol. 76, No. 150 / Thursday, August 4, 2011 / Notices on or after prior to 6 ................... 57⁄8 ................ 51⁄4 ................ 53⁄4 ................ 5 ................... 41⁄2 ................ 51⁄8 ................ 51⁄2 ................ 47⁄8 ................ 41⁄2 ................ 47⁄8 ................ 53⁄8 ................ 43⁄4 ................ 5 ................... 41⁄2 ................ 45⁄8 ................ 41⁄8 ................ 41⁄8 ................ 41⁄4 ................ 41⁄8 ................ 37⁄8 ................ 41⁄8 ................ sroberts on DSK5SPTVN1PROD with NOTICES Effective interest rate Jan. 1, 2001 July 1, 2001 Jan. 1, 2002 July 1, 2002 Jan. 1, 2003 July 1, 2003 Jan. 1, 2004 July 1, 2004 Jan. 1, 2005 July 1, 2005 Jan. 1, 2006 July 1, 2006 Jan. 1, 2007 July 1, 2007 Jan. 1, 2008 July 1, 2008 Jan. 1, 2009 July 1, 2009 Jan. 1, 2010 July 1, 2010 Jan. 1, 2011 July 1, 2011 July 1, 2001 Jan. 1, 2002 July 1, 2002 Jan. 1, 2003 July 1, 2003 Jan. 1, 2004 July 1, 2004 Jan. 1, 2005 July 1, 2005 Jan. 1, 2006 July 1, 2006 Jan. 1, 2007 July 1, 2007 Jan. 1, 2008 July 1, 2008 Jan. 1, 2009 July 1, 2009 Jan. 1, 2010 July 1, 2010 Jan. 1, 2011 July 1, 2011 Jan. 1, 2012 Section 215 of Division G, Title II of Public Law 108–199, enacted January 23, 2004 (HUD’s 2004 Appropriations Act) amended section 224 of the Act, to change the debenture interest rate for purposes of calculating certain insurance claim payments made in cash. Therefore, for all claims paid in cash on mortgages insured under section 203 or 234 of the National Housing Act and endorsed for insurance after January 23, 2004, the debenture interest rate will be the monthly average yield, for the month in which the default on the mortgage occurred, on United States Treasury Securities adjusted to a constant maturity of 10 years, as found in Federal Reserve Statistical Release H– 15. The Federal Housing Administration has codified this provision in HUD regulations at 24 CFR 203.405(b) and 24 CFR 203.479(b). Section 221(g)(4) of the Act provides that debentures issued pursuant to that paragraph (with respect to the assignment of an insured mortgage to the Secretary) will bear interest at the ‘‘going Federal rate’’ in effect at the time the debentures are issued. The term ‘‘going Federal rate’’ is defined to mean the interest rate that the Secretary of the Treasury determines, pursuant to a statutory formula based on the average yield on all outstanding marketable Treasury obligations of 8- to 12-year maturities, for the 6-month periods of January through June and July through December of each year. Section 221(g)(4) is implemented in the HUD regulations at 24 CFR 221.255 and 24 CFR 221.790. The Secretary of the Treasury has determined that the interest rate to be borne by debentures issued pursuant to section 221(g)(4) during the 6-month VerDate Mar<15>2010 17:29 Aug 03, 2011 Jkt 223001 period beginning July 1, 2011, is 3 percent. The subject matter of this notice falls within the categorical exemption from HUD’s environmental clearance procedures set forth in 24 CFR 50.19(c)(6). For that reason, no environmental finding has been prepared for this notice. Authority: Sections 211, 221, 224, National Housing Act, 12 U.S.C. 1715b, 1715l, 1715o; Section 7(d), Department of HUD Act, 42 U.S.C. 3535(d). Dated: July 28, 2011. Carol J. Galante, Acting Assistant Secretary for Housing– Federal Housing Commissioner. [FR Doc. 2011–19735 Filed 8–3–11; 8:45 am] BILLING CODE 4210–67–P DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT [Docket No. FR–5527–N–02] Notice of HUD-Held Multifamily Loan Sale (MLS 2011–2) Office of the Assistant Secretary for Housing—Federal Housing Commissioner, HUD. ACTION: Notice of sale of mortgage loans. AGENCY: This notice announces HUD’s sale of certain unsubsidized multifamily mortgage loans, without Federal Housing Administration (FHA) insurance, in a competitive, sealed bid sale (MLS 2011–2). This notice also describes generally the bidding process used for the sale and certain persons who were ineligible to bid. The Bidder’s Information Package (BIP) was made available online to qualified bidders on June 29, 2011. Submission of bids for the loans were required on the bid date, which was August 3, 2011. Awards were made no later than August 4, 2011. Closings are expected to take place by August 19, 2011. FOR FURTHER INFORMATION CONTACT: John Lucey, Deputy Director, Asset Sales Office, Room 3136, Department of Housing and Urban Development, 451 7th Street, SW., Washington, DC 20410– 8000; telephone number 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 the sale in MLS 2011–2 of certain unsubsidized mortgage loans (Mortgage Loans) secured by multifamily properties located throughout the United States. The Mortgage Loans were comprised of nonperforming mortgage loans. A final SUMMARY: PO 00000 Frm 00087 Fmt 4703 Sfmt 4703 listing of the Mortgage Loans was included in the BIP. The Mortgage Loans were sold without FHA insurance and with servicing released. HUD offered qualified bidders the opportunity to bid competitively on the Mortgage Loans. The Mortgage Loans may be stratified for bidding purposes into several mortgage loan pools. Each pool may contain Mortgage Loans that generally have similar performance, property type, geographic location, lien position and other characteristics. Qualified bidders were permited to submit bids on one or more pools of Mortgage Loans or on individual loans. A mortgagor who was a qualified bidder was permitted to submit an individual bid on its own Mortgage Loan. Interested Mortgagors were advised to review the Qualification Statement to determine whether they were eligible to qualify to submit bids on one or more pools of Mortgage Loans or on individual loans in MLS 2011–2. The Bidding Process The BIP described in detail the procedure for bidding in MLS 2011–2. The BIP also included a standardized non-negotiable loan sale agreement (Loan Sale Agreement). As part of its bid, each bidder was required to submit a deposit equal to the greater of $100,000 or 10% of the bid price. In the event the bidder’s aggregate bid was less than $100,000.00, the minimum deposit was not less than fifty percent (50%) of the bidder’s aggregate bid. HUD evaluated the bids submitted and determined the successful bids in its sole and absolute discretion. If a bidder was successful, the bidder’s deposit was non-refundable and will be applied toward the purchase price. Deposits were returned to unsuccessful bidders. Closings are scheduled to occur by August 19, 2011. These were the essential terms of sale. The Loan Sale Agreement, included in the BIP, contained additional terms and details. To ensure a competitive bidding process, the terms of the bidding process and the Loan Sale Agreement were not subject to negotiation. Due Diligence Review The BIP described the due diligence process for reviewing loan files in MLS 2011–2. Qualified bidders were able to access loan information remotely via a high-speed Internet connection. Further information on performing due diligence review of the Mortgage Loans was provided in the BIP. Mortgage Loan Sale Policy HUD reserved the right to add Mortgage Loans to or delete Mortgage E:\FR\FM\04AUN1.SGM 04AUN1

Agencies

[Federal Register Volume 76, Number 150 (Thursday, August 4, 2011)]
[Notices]
[Pages 47225-47226]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-19735]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5493-N-02]


Mortgage and Loan Insurance Programs Under the National Housing 
Act--Debenture Interest Rates

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

ACTION: Notice.

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

SUMMARY: This notice announces changes in the interest rates to be paid 
on debentures issued with respect to a loan or mortgage insured by the 
Federal Housing Administration under the provisions of the National 
Housing Act (the Act). The interest rate for debentures issued under 
section 221(g)(4) of the Act during the 6-month period beginning July 
1, 2011, is 3 percent. The interest rate for debentures issued under 
any other provision of the Act is the rate in effect on the date that 
the commitment to insure the loan or mortgage was issued, or the date 
that the loan or mortgage was endorsed (or initially endorsed if there 
are two or more endorsements) for insurance, whichever rate is higher. 
The interest rate for debentures issued under these other provisions 
with respect to a loan or mortgage committed or endorsed during the 6-
month period beginning July 1, 2011, is 4\1/8\ percent. However, as a 
result of an amendment to section 224 of the Act, if an insurance claim 
relating to a mortgage insured under sections 203 or 234 of the Act and 
endorsed for insurance after January 23, 2004, is paid in cash, the 
debenture interest rate for purposes of calculating a claim shall be 
the monthly average yield, for the month in which the default on the 
mortgage occurred, on United States Treasury Securities adjusted to a 
constant maturity of 10 years.

FOR FURTHER INFORMATION CONTACT: Yong Sun, Department of Housing and 
Urban Development, 451 Seventh Street, SW., Room 5148, Washington, DC 
20410-8000; telephone (202) 402-4778 (this is not a toll-free number). 
Individuals with speech or hearing impairments may access this number 
through TTY by calling the toll-free Federal Information Relay Service 
at (800) 877-8339.

SUPPLEMENTARY INFORMATION: Section 224 of the National Housing Act (12 
U.S.C. 1715o) provides that debentures issued under the Act with 
respect to an insured loan or mortgage (except for debentures issued 
pursuant to section 221(g)(4) of the Act) will bear interest at the 
rate in effect on the date the commitment to insure the loan or 
mortgage was issued, or the date the loan or mortgage was endorsed (or 
initially endorsed if there are two or more endorsements) for 
insurance, whichever rate is higher. This provision is implemented in 
HUD's regulations at 24 CFR 203.405, 203.479, 207.259(e)(6), and 
220.830. These regulatory provisions state that the applicable rates of 
interest will be published twice each year as a notice in the Federal 
Register.
    Section 224 further provides that the interest rate on these 
debentures will be set from time to time by the Secretary of HUD, with 
the approval of the Secretary of the Treasury, in an amount not in 
excess of the annual interest rate determined by the Secretary of the 
Treasury pursuant to a statutory formula based on the average yield of 
all outstanding marketable Treasury obligations of maturities of 15 or 
more years.
    The Secretary of the Treasury (1) has determined, in accordance 
with the provisions of section 224, that the statutory maximum interest 
rate for the period beginning July 1, 2011, is 4\1/8\ percent; and (2) 
has approved the establishment of the debenture interest rate by the 
Secretary of HUD at 4\1/8\ percent for the 6-month period beginning 
July 1, 2011. This interest rate will be the rate borne by debentures 
issued with respect to any insured loan or mortgage (except for 
debentures issued pursuant to section 221(g)(4)) with insurance 
commitment or endorsement date (as applicable) within the latter 6 
months of 2011.
    For convenience of reference, HUD is publishing the following chart 
of debenture interest rates applicable to mortgages committed or 
endorsed since January 1, 1980:

------------------------------------------------------------------------
     Effective interest rate          on or after          prior to
------------------------------------------------------------------------
9\1/2\..........................  Jan. 1, 1980......  July 1, 1980
9\7/8\..........................  July 1, 1980......  Jan. 1, 1981
11\3/4\.........................  Jan. 1, 1981......  July 1, 1981
12\7/8\.........................  July 1, 1981......  Jan. 1, 1982
12\3/4\.........................  Jan. 1, 1982......  Jan. 1, 1983
10\1/4\.........................  Jan. 1, 1983......  July 1, 1983
10\3/8\.........................  July 1, 1983......  Jan. 1, 1984
11\1/2\.........................  Jan. 1, 1984......  July 1, 1984
13\3/8\.........................  July 1, 1984......  Jan. 1, 1985
11\5/8\.........................  Jan. 1, 1985......  July 1, 1985
11\1/8\.........................  July 1, 1985......  Jan. 1, 1986
10\1/4\.........................  Jan. 1, 1986......  July 1, 1986
8\1/4\..........................  July 1, 1986......  Jan. 1. 1987
8...............................  Jan. 1, 1987......  July 1, 1987
9...............................  July 1, 1987......  Jan. 1, 1988
9\1/8\..........................  Jan. 1, 1988......  July 1, 1988
9\3/8\..........................  July 1, 1988......  Jan. 1, 1989
9\1/4\..........................  Jan. 1, 1989......  July 1, 1989
9...............................  July 1, 1989......  Jan. 1, 1990
8\1/8\..........................  Jan. 1, 1990......  July 1, 1990
9...............................  July 1, 1990......  Jan. 1, 1991
8\3/4\..........................  Jan. 1, 1991......  July 1, 1991
8\1/2\..........................  July 1, 1991......  Jan. 1, 1992
8...............................  Jan. 1, 1992......  July 1, 1992
8...............................  July 1, 1992......  Jan. 1, 1993
7\3/4\..........................  Jan. 1, 1993......  July 1, 1993
7...............................  July 1, 1993......  Jan. 1, 1994
6\5/8\..........................  Jan. 1, 1994......  July 1, 1994
7\3/4\..........................  July 1, 1994......  Jan. 1, 1995
8\3/8\..........................  Jan. 1, 1995......  July 1, 1995
7\1/4\..........................  July 1, 1995......  Jan. 1, 1996
6\1/2\..........................  Jan. 1, 1996......  July 1, 1996
7\1/4\..........................  July 1, 1996......  Jan. 1, 1997
6\3/4\..........................  Jan. 1, 1997......  July 1, 1997
7\1/8\..........................  July 1, 1997......  Jan. 1, 1998
6\3/8\..........................  Jan. 1, 1998......  July 1, 1998
6\1/8\..........................  July 1, 1998......  Jan. 1, 1999
5\1/2\..........................  Jan. 1, 1999......  July 1, 1999
6\1/8\..........................  July 1, 1999......  Jan. 1, 2000
6\1/2\..........................  Jan. 1, 2000......  July 1, 2000
6\1/2\..........................  July 1, 2000......  Jan. 1, 2001

[[Page 47226]]

 
6...............................  Jan. 1, 2001......  July 1, 2001
5\7/8\..........................  July 1, 2001......  Jan. 1, 2002
5\1/4\..........................  Jan. 1, 2002......  July 1, 2002
5\3/4\..........................  July 1, 2002......  Jan. 1, 2003
5...............................  Jan. 1, 2003......  July 1, 2003
4\1/2\..........................  July 1, 2003......  Jan. 1, 2004
5\1/8\..........................  Jan. 1, 2004......  July 1, 2004
5\1/2\..........................  July 1, 2004......  Jan. 1, 2005
4\7/8\..........................  Jan. 1, 2005......  July 1, 2005
4\1/2\..........................  July 1, 2005......  Jan. 1, 2006
4\7/8\..........................  Jan. 1, 2006......  July 1, 2006
5\3/8\..........................  July 1, 2006......  Jan. 1, 2007
4\3/4\..........................  Jan. 1, 2007......  July 1, 2007
5...............................  July 1, 2007......  Jan. 1, 2008
4\1/2\..........................  Jan. 1, 2008......  July 1, 2008
4\5/8\..........................  July 1, 2008......  Jan. 1, 2009
4\1/8\..........................  Jan. 1, 2009......  July 1, 2009
4\1/8\..........................  July 1, 2009......  Jan. 1, 2010
4\1/4\..........................  Jan. 1, 2010......  July 1, 2010
4\1/8\..........................  July 1, 2010......  Jan. 1, 2011
3\7/8\..........................  Jan. 1, 2011......  July 1, 2011
4\1/8\..........................  July 1, 2011......  Jan. 1, 2012
------------------------------------------------------------------------

    Section 215 of Division G, Title II of Public Law 108-199, enacted 
January 23, 2004 (HUD's 2004 Appropriations Act) amended section 224 of 
the Act, to change the debenture interest rate for purposes of 
calculating certain insurance claim payments made in cash. Therefore, 
for all claims paid in cash on mortgages insured under section 203 or 
234 of the National Housing Act and endorsed for insurance after 
January 23, 2004, the debenture interest rate will be the monthly 
average yield, for the month in which the default on the mortgage 
occurred, on United States Treasury Securities adjusted to a constant 
maturity of 10 years, as found in Federal Reserve Statistical Release 
H-15. The Federal Housing Administration has codified this provision in 
HUD regulations at 24 CFR 203.405(b) and 24 CFR 203.479(b).
    Section 221(g)(4) of the Act provides that debentures issued 
pursuant to that paragraph (with respect to the assignment of an 
insured mortgage to the Secretary) will bear interest at the ``going 
Federal rate'' in effect at the time the debentures are issued. The 
term ``going Federal rate'' is defined to mean the interest rate that 
the Secretary of the Treasury determines, pursuant to a statutory 
formula based on the average yield on all outstanding marketable 
Treasury obligations of 8- to 12-year maturities, for the 6-month 
periods of January through June and July through December of each year. 
Section 221(g)(4) is implemented in the HUD regulations at 24 CFR 
221.255 and 24 CFR 221.790.
    The Secretary of the Treasury has determined that the interest rate 
to be borne by debentures issued pursuant to section 221(g)(4) during 
the 6-month period beginning July 1, 2011, is 3 percent.
    The subject matter of this notice falls within the categorical 
exemption from HUD's environmental clearance procedures set forth in 24 
CFR 50.19(c)(6). For that reason, no environmental finding has been 
prepared for this notice.

    Authority: Sections 211, 221, 224, National Housing Act, 12 
U.S.C. 1715b, 1715l, 1715o; Section 7(d), Department of HUD Act, 42 
U.S.C. 3535(d).

    Dated: July 28, 2011.
Carol J. Galante,
Acting Assistant Secretary for Housing-Federal Housing Commissioner.
[FR Doc. 2011-19735 Filed 8-3-11; 8:45 am]
BILLING CODE 4210-67-P
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