Supportive Housing for the Elderly Senior Preservation Rental Assistance Contracts: 60-Day Notice of Information Collection, 40158-40161 [2013-16074]

Agencies

• DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Federal Register Volume 78, Number 128 (Wednesday, July 3, 2013)]
[Notices]
[Pages 40158-40161]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-16074]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5667-N-03]


Supportive Housing for the Elderly Senior Preservation Rental 
Assistance Contracts: 60-Day Notice of Information Collection

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

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ACTION: Notice of request for public comment.

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SUMMARY: In accordance with the Paperwork Reduction Act of 1995, HUD is 
issuing for public comment four documents for use in the Senior 
Preservation Rental Assistance Contract (SPRAC) program. HUD is seeking 
Office of Management and Budget (OMB) approval for the information 
collection described below. The purpose of this notice is to allow 60 
days for public comment in the Federal Register preceding submission to 
OMB.

DATES: Comment Due Date: September 3, 2013.

ADDRESSES: Interested persons are invited to submit comments regarding 
this notice to the Regulations Division, Office of General Counsel, 
Department of Housing and Urban Development, 451 7th Street SW., Room 
10276, Washington, DC 20410-0500. Communications must refer to the 
above docket number and title. There are two methods for submitting 
public comments. All submissions must refer to the above docket number 
and title.
    1. Submission of Comments by Mail. Comments may be submitted by 
mail to the Regulations Division, Office of General Counsel, Department 
of Housing and Urban Development, 451 7th Street SW., Room 10276, 
Washington, DC 20410-0500.
    2. Electronic Submission of Comments. Interested persons may submit 
comments electronically through the Federal eRulemaking Portal at 
www.regulations.gov. HUD strongly encourages commenters to submit 
comments electronically. Electronic submission of comments allows the 
commenter maximum time to prepare and submit a comment, ensures timely 
receipt by HUD, and enables HUD to make them immediately available to 
the public. Comments submitted electronically through the 
www.regulations.gov Web site can be viewed by other commenters and 
interested members of the public. Commenters should follow the 
instructions provided on that site to submit comments electronically.

    Note: To receive consideration as public comments, comments must 
be submitted through one of the two methods specified above. Again, 
all submissions must refer to the docket number and title of the 
rule.

    No Facsimile Comments. Facsimile (FAX) comments are not acceptable.
    Public Inspection of Public Comments. All properly submitted 
comments and communications submitted to HUD will be available for 
public inspection and downloading at www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: Margaret Salazar, Acting Director, 
Office of Affordable Housing Preservation, Office of Housing, 
Department of Housing and Urban Development, 451 7th Street SW., Room 
6230, Washington, DC 20410; telephone number 202-708-0001 (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 Relay 
Service at 800-877-8339.

SUPPLEMENTARY INFORMATION: 

I. Background

    The Section 202 Supportive Housing for the Elderly Act of 2010 
(Pub. L. 111-372, 124 Stat. 4077, approved January 4, 2011) (2010 Act) 
authorizes HUD to provide SPRACs with 20-year terms to owner-applicants 
(Owner-Applicants) and existing Section 202 properties that meet SPRAC 
eligibility criteria as established by HUD. The purpose of the SPRAC 
Program is to prevent the displacement of current tenants of certain 
projects assisted under HUD's Section 202 Supportive Housing for the 
Elderly program (Section 202 program) in the case of refinancing or 
recapitalization and to further preserve and maintain affordability of 
Section 202 Direct Loan projects. General authority for the prepayment 
of a Section 202 Direct Loan is provided by Section 811 of the American 
Homeownership and Economic Opportunity (AHEO) Act of 2000, as amended 
by the 2010 Act (12 U.S.C. 1701q note). Pursuant to this authority, 
SPRACs may be awarded by HUD to Section 202 properties with original 
interest rates of 6 percent or less (financed prior to 1974), as part 
of a recaptialization to address the physical needs of the property. In 
FY 2012, $16 million was made available for SPRAC funding.
    On January 8, 2013, at 78 FR 1224, HUD published a proposed notice 
in the Federal Register that presented for public comment the proposed 
process by which HUD would award SPRACs, including the proposed 
application process, as well as the proposed eligibility and selection 
criteria. HUD solicited public comment for a period of 60 days. HUD 
reviewed and considered the public comments received in response to the 
January 8, 2013, notice, and HUD is developing the final notice that 
will announce the process by which HUD will award SPRACs.

II. This 60-Day Notice

Documents for Review and Comment

    Consistent with the Paperwork Reduction Act of 1995, this notice 
seeks comment, for a period of 60 days of four documents that HUD will 
use for the award of SPRACs.
1. Agreement To Enter Into a Senior Preservation Rental Assistance 
Contract--Part I (ASPRAC I)
    The ASPRAC I, including exhibits, which may be attached or 
incorporated by reference, comprises the entire agreement between the 
Owner and HUD with respect to the matters contained addressed in the 
ASPRAC I. The exhibits that are part of the ASPRAC I include: the 
Senior Preservation Rental Assistance Contract (SPRAC) to be executed 
upon prepayment of the Section 202 Direct Loan (Exhibit A); the 
schedule of completion in stages if applicable (the exhibit should 
identify the units in each stage) (Exhibit B); and the schedule of 
Davis-Bacon wages, if applicable (Exhibit C). The ASPRAC I provides for 
the inclusion of additional exhibits that may be necessary or 
appropriate.
    The ASPRAC I provides that neither party is bound by any 
representations or agreements of any kind except as contained in the 
ASPRAC I, any applicable regulations, and agreements entered into in 
writing by the parties which are consistent with this Agreement. The 
ASPRAC I further provides that nothing contained in the ASPRAC I shall 
create of affect any relationship between HUD and any contractors or 
subcontractors employed by the Owner in the completion of the project.
    The ASPRAC I requires the Owner to certify that the site of the 
project for which HUD is committing funds is either (1) without 
occupants eligible for relocation assistance under the Uniform 
Relocation Assistance and Real Property Acquisition Policies Act of 
1970 (URA), as amended; or (2) with occupants eligible for assistance 
the URA and Owner agrees to provide such assistance in accordance with 
URA and HUD requirements.
2. Agreement To Enter Into a Senior Preservation Rental Assistance 
Contract--Part II (ASPRAC II)
    The ASPRAC II contains the following areas that specify the Owner's 
agreement to undertake certain action, which include information and 
reporting requirements:
     Schedule of Completion, which addresses the timely 
commencement of work, the time for completion, and the possibility of 
delays, and the reporting requirements associated with commencement and 
completion of work.

[[Page 40160]]

     Marketing, which addresses the commencement and 
continuation of marketing of the project and notification requirements 
associated with the marketing.
     Execution of the SPRAC, which addresses the time of 
execution of the SPRAC, the completion of the various stages associated 
with work on the project; unleased units at the time of execution of 
the SPRAC, and HUD's examination of such units; leased units at the 
time of execution and HUD's examination of such units; and the amount 
of contract rents.
     Cooperation in Equal Opportunity Reviews, which addresses 
agreement by the Owner to cooperate with HUD in conducting monitoring 
and compliance reviews and complaint investigations;
     Compliance with standard federal laws related to 
federally-funded housing, which includes compliance with such laws the 
National Environmental Policy Act, Flood Disaster Protection Act, Clean 
Air Act and Water Pollution Control Act, Displacement and Relocation 
Assistance, Lead-Based Paint Poisoning Prevention Act, anti-lobbying 
requirements; and the Davis Bacon Act.
     Defaults by Owner, which addresses what constitutes a 
default by the Owner under the SPRAC, HUD's determination of default 
and corrective action that may be taken, including termination of the 
SPRA.
     Disputes, which provides that the Secretary of HUD or 
designee will resolve a dispute that may arise between the Owner and a 
HUD Field Office, which the latter two are unable to resolve.
     Assignment, Sale or Foreclosure, which addresses the 
Owner's agreement that it has not made or will not make any sale, 
assignment, or conveyance or transfer of the project without seeking 
and receiving the prior written consent of HUD.
     Prevention of Conflicts of Interest, which addresses the 
prohibition of the officers, directors, stockholders and unauthorized 
representatives of the Owner having a financial interest in any 
contract in connection with the rendition of services, the provision of 
goods or supplies, project management, procurement of furnishings or 
equipment, construction of the project, procurement of the site or 
other matters related to the development or operation of the project.
3. Senior Preservation Rental Assistance Contract--Part I (SPRAC I)
    The SPRAC I establishes the effective date, initial term, funding 
for the initial term of the SPRAC and renewal. The SPRAC requires the 
Owner to describe the project, to provide a statement of services 
maintenance and utilities to be provided by the Owner. The SPRAC also 
requires for the Owner to provide the following as exhibits to the 
SPRAC: (1) A schedule of SPRAC Units and SPRAC rents; (2) daily debt 
service; (3) an affirmative fair housing marketing plan; (4) the 
recorded Section 202 Use Agreement; and (5) the Agreement to Enter into 
a SPRAC.
4. Senior Preservation Rental Assistance Contract--Part II (SPRAC II)
    The SPRAC II establishes the agreed-upon responsibilities and 
obligations of the Owner, the Contact Administration and HUD. The SPRAC 
II identifies the HUD regulations with which all owners of HUD assisted 
housing must comply, and that includes the owner of a project assisted 
under SPRAC. The SPRAC II includes definitions that are applicable to 
SPRAC II but also SPRAC I. The SPRAC II reiterates the agreements 
contained in ASPRAC II, such as those pertaining to nondiscrimination, 
compliance reviews, the applicable property insurance such as property 
and liability insurance, flood insurance, assignment, sale, or 
foreclosure of the property, Davis-Bacon wage requirements, disputes, 
and conflicts of interest.
    The SPRAC II also specifies certain information collection and 
reporting requirements, which are directed solely to the SPRAC projects 
and these include the owner's agreement to: Maintain a written, 
chronological waiting list showing the name, race, gender, ethnicity 
and date of each person applying to reside in a SPRAC Unit at the 
subject project; establish a standard numeric threshold for the purpose 
of determining when it may be necessary to close the waiting list and 
temporarily cease accepting applications for SPRAC Units; furnishing a 
copy of its waiting list policies and procedures to HUD; furnishing to 
HUD, upon HUD's request, applications of admissions (including denial 
of admission); confirming all information provided on the application 
by the family applicants; preparing the HUD Lease between the families 
and the Owner in the form prescribed by HUD; submitting to the Contract 
Administrator, upon the Contract Administrator's request, a rent 
comparability study; submitting monthly requests to the Owner's 
Contract Administrator for SPRAC payments, and each month request must 
contain a certification by the Owner as to the accuracy and veracity of 
certain formation to the best of the Owner's knowledge; and submitting 
to the Contract Administrator within 90 days after the end of each 
fiscal year of the project, financial statements for the project that 
have been audited by an Independent Public Accountant in the form 
required by HUD.
    All four documents are available for review in their entirety at 
https://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/mfh/presrv/presmfh/sprac_contracts.

Paperwork Reduction Act--Estimated Burden and Cost

    Under the Paperwork Reduction Act (44 U.S.C. 3501-3520) (PRA), 
federal agencies must obtain approval from the Office of Management and 
Budget (OMB) for each collection of information they conduct or 
sponsor. ``Collection of information'' is defined in 44 U.S.C. 3502(3) 
and 5 CFR 1320.3(c) and includes agency requests or requirements that 
members of the public submit reports, keep records, or provide 
information to a third party. Section 506(c)(2)(A) of the PRA (44 
U.S.C. 3506(c)(2)(A)) requires federal agencies to provide a 60-day 
notice in the Federal Register concerning each proposed collection of 
information before submitting the collection to OMB for approval.
    To comply with this requirement, HUD is publishing this notice of 
the proposed information and recordkeeping and reporting, as set forth 
in the four SPRAC documents.
1. Descriptive Information
    The Title of the Proposed Information Collection is Senior 
Preservation Rental Assistance Contracts.
    The Need for the Proposed Information Collection and Use is to 
ensure proper use of federal funds, compliance with applicable HUD and 
federal requirements, and to allow for HUD to monitor compliance with 
HUD and federal requirements.
    Agency Form Numbers N/A.
    Eligible Applicants are owners of Section 202 properties with 
original interest rates of 6 per cent or less (financed prior to 1974) 
when the property refinanced is to make capital repairs and the owner 
does not anticipate debt service savings from the refinance.
    Status of Proposed Information Collection is new.
2. Specific Issues for Comment
    With respect to the collection of information and reporting 
requirements in the four SPRAC documents, HUD invites comments on these 
topics:
    (1) Whether the proposed collection of information is necessary for 
the

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proper performance of responsibilities under the SPRAC program, 
including whether the information will have practical utility;
    (2) The accuracy of HUD's estimate of the burden of the proposed 
collection of information, including the validity of the methodology 
and assumptions used;
    (3) Ways to enhance the quality, utility, and clarity of the 
information to be collected; and
    (4) Ways to minimize the burden of the collection of information on 
respondents, including through the use of automated collection 
techniques, when appropriate, and other forms of information 
technology.
    The public reporting burden for information collection and 
reporting requirements in the four SPRAC documents are estimated to 
include the time for reviewing the instructions, searching existing 
data sources, gathering and maintaining the data needed, and completing 
and reviewing the collection of information. Information on the 
estimated public reporting burden is provided in the following table:
3. Estimated Burden
    The estimated burden for the four SPRAC documents is as follows:

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                                     Number of     Frequency of    Responses per   Burden hours    Annual burden
     Information collection         respondents      response          annum       per response        hours
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ASPRAC I........................              20               1              20               1              20
ASPRAC II.......................              20               1              20               1              20
SPRAC I.........................              20               1              20               2              40
SPRAC II........................              20               1              20               2              40
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    Totals......................              20               4              80               6             120
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    Dated: June 27, 2013.
Laura M. Marin,
Acting General Deputy Assistant Secretary for Housing--Acting General 
Deputy Federal Housing Commissioner.
[FR Doc. 2013-16074 Filed 7-2-13; 8:45 am]
BILLING CODE 4210-67-P