Notice of HUD-Held Multifamily Loan Sale (MLS 2011-2), 47226-47227 [2011-19736]
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47226
Federal Register / Vol. 76, No. 150 / Thursday, August 4, 2011 / Notices
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sroberts on DSK5SPTVN1PROD with NOTICES
Effective interest rate
Jan. 1, 2001
July 1, 2001
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July 1, 2004
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July 1, 2005
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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
Federal Register / Vol. 76, No. 150 / Thursday, August 4, 2011 / Notices
Loans from MLS 2011–2 at any time
prior to the Award Date. HUD also
reserved 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 sale of unsubsidized mortgage
loans was 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).
sroberts on DSK5SPTVN1PROD with NOTICES
Mortgage Loan Sale Procedure
HUD selected a competitive sale as
the method to sell the Mortgage Loans.
This method of sale optimizes HUD’s
return on the sale of these Mortgage
Loans, afforded the greatest opportunity
for all qualified bidders to bid on the
Mortgage Loans, and provided the
quickest and most efficient vehicle for
HUD to dispose of the Mortgage Loans.
Bidder Eligibility
In order to bid in the sale, prospective
bidders were required to complete,
execute and submit both a
Confidentiality Agreement and a
Qualification Statement acceptable to
HUD. The following individuals and
entities were ineligible to bid on any of
the Mortgage Loans included in MLS
2011–2:
(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
MLS 2011–2;
(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 MLS
2011–2;
(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;
VerDate Mar<15>2010
17:29 Aug 03, 2011
Jkt 223001
(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 MLS 2011–2;
(7) Any affiliate, principal or
employee of any person or entity that,
within the two-year period prior to
August 1, 2011, serviced any of the
Mortgage Loans or performed other
services for or on behalf of HUD;
(8) Any contractor or subcontractor to
HUD that otherwise had access to
information concerning the Mortgage
Loans on behalf of HUD or provided
services to any person or entity which,
within the two-year period prior to
August 1, 2011, had access to
information with respect to the
Mortgage Loans on behalf of HUD;
(9) Any employee, officer, director or
any other person that provides or will
provide services to the potential bidder
with respect to such Mortgage Loans
during any warranty period established
for the Loan Sale, that (x) serviced any
of the Mortgage Loans or performed
other services for or on behalf of HUD
or (y) within the two-year period prior
to August 1, 2011, provided services to
any person or entity which serviced,
performed services or otherwise had
access to information with respect to the
Mortgage Loans for or on behalf of HUD;
(10) Any mortgagor or operator that
failed to submit to HUD on or before
June 30, 2011, audited financial
statements for fiscal years 2007 through
2010 (for such time as the project has
been in operation or the prospective
bidder served as operator, if less than
three (3) years) for a project securing a
Mortgage Loan;
(11) 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 and or
healthcare 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 June 30, 2011;
Freedom of Information Act Requests
HUD reserves the right, in its sole and
absolute discretion, to disclose
information regarding MLS 2011–2,
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 MLS 2011–2, HUD will have
the right to disclose any information
that HUD is obligated to disclose
PO 00000
Frm 00088
Fmt 4703
Sfmt 4703
47227
pursuant to the Freedom of Information
Act and all regulations promulgated
thereunder.
Scope of Notice
This notice applied to MLS 2011–2
and does not establish HUD’s policy for
the sale of other mortgage loans.
Dated: July 29, 2011.
Carol J. Galante,
Acting Assistant Secretary for Housing,
Federal Housing Commissioner.
[FR Doc. 2011–19736 Filed 8–3–11; 8:45 am]
BILLING CODE 4210–67–P
DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT
[Docket No. FR–5545–D–02]
Order of Succession for the Office of
Public and Indian Housing
Office of the Assistant
Secretary for Public and Indian
Housing, HUD.
ACTION: Notice of order of succession.
AGENCY:
In this notice, the Assistant
Secretary for Public and Indian Housing
designates the order of succession for
the Office of Public and Indian Housing
(PIH). This order of succession revokes
and supersedes all prior orders of
succession for PIH, including that
published on October 18, 2006 (71 FR
61500).
DATES: Effective Date: July 15, 2011.
FOR FURTHER INFORMATION CONTACT:
Linda Bronsdon, AICP, Office of Policy,
Program and Legislative Initiatives,
Office of Public and Indian Housing,
Department of Housing and Urban
Development, 490 L’Enfant Plaza,
Washington, DC 20024, e-mail address
Linda.K.Bronsdon@hud.gov, telephone
number 202–402–3494. (This is not a
toll-free number.) This number may be
accessed through TTY by calling the
toll-free Federal Relay Service at
telephone number 1–800–877–8339.
SUPPLEMENTARY INFORMATION: The
Assistant Secretary for PIH is issuing
this order of succession of officials to
perform the duties and functions of PIH
when, by reason of absence, disability,
or vacancy in office, the Assistant
Secretary is not available to exercise the
powers or perform the duties of the
office. This order of succession is
subject to the provisions of the Federal
Vacancy Reform Act of 1998 (5 U.S.C.
3345–3349d). This publication revokes
and supersedes all prior orders of
succession for PIH, including that
published on October 18, 2006 (71 FR
61500).
SUMMARY:
E:\FR\FM\04AUN1.SGM
04AUN1
]]>Agencies
[Federal Register Volume 76, Number 150 (Thursday, August 4, 2011)]
[Notices]
[Pages 47226-47227]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-19736]
-----------------------------------------------------------------------
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-5527-N-02]
Notice of HUD-Held Multifamily Loan Sale (MLS 2011-2)
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 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 speech-impaired 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 non-performing mortgage loans. A final
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
[[Page 47227]]
Loans from MLS 2011-2 at any time prior to the Award Date. HUD also
reserved 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 sale of unsubsidized mortgage loans was 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, afforded the greatest opportunity for all qualified
bidders to bid on the Mortgage Loans, and provided the quickest and
most efficient vehicle for HUD to dispose of the Mortgage Loans.
Bidder Eligibility
In order to bid in the sale, prospective bidders were required to
complete, execute and submit both a Confidentiality Agreement and a
Qualification Statement acceptable to HUD. The following individuals
and entities were ineligible to bid on any of the Mortgage Loans
included in MLS 2011-2:
(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 MLS 2011-2;
(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 MLS 2011-2;
(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 MLS 2011-2;
(7) Any affiliate, principal or employee of any person or entity
that, within the two-year period prior to August 1, 2011, serviced any
of the Mortgage Loans or performed other services for or on behalf of
HUD;
(8) Any contractor or subcontractor to HUD that otherwise had
access to information concerning the Mortgage Loans on behalf of HUD or
provided services to any person or entity which, within the two-year
period prior to August 1, 2011, had access to information with respect
to the Mortgage Loans on behalf of HUD;
(9) Any employee, officer, director or any other person that
provides or will provide services to the potential bidder with respect
to such Mortgage Loans during any warranty period established for the
Loan Sale, that (x) serviced any of the Mortgage Loans or performed
other services for or on behalf of HUD or (y) within the two-year
period prior to August 1, 2011, provided services to any person or
entity which serviced, performed services or otherwise had access to
information with respect to the Mortgage Loans for or on behalf of HUD;
(10) Any mortgagor or operator that failed to submit to HUD on or
before June 30, 2011, audited financial statements for fiscal years
2007 through 2010 (for such time as the project has been in operation
or the prospective bidder served as operator, if less than three (3)
years) for a project securing a Mortgage Loan;
(11) 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 and or healthcare
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 June 30, 2011;
Freedom of Information Act Requests
HUD reserves the right, in its sole and absolute discretion, to
disclose information regarding MLS 2011-2, 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 MLS 2011-2, 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 applied to MLS 2011-2 and does not establish HUD's
policy for the sale of other mortgage loans.
Dated: July 29, 2011.
Carol J. Galante,
Acting Assistant Secretary for Housing, Federal Housing Commissioner.
[FR Doc. 2011-19736 Filed 8-3-11; 8:45 am]
BILLING CODE 4210-67-P
