Proposed Collection; Comment Request, 85958-85961 [2016-28707]
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85958
Federal Register / Vol. 81, No. 229 / Tuesday, November 29, 2016 / Notices
of any given year (January through June)
are June 30 and September 30 of the
current year. The collection dates for the
second period (July through December)
are December 30 of the current year and
March 30 of the following year. The
information collection consists of
recordkeeping associated with reviews
by officials of the insured institutions to
confirm that the assessment data are
accurate and, in cases of inaccuracy,
submission of corrected data.
3. Title: Insurance Products Consumer
Protections.
OMB Number: 3064–0140.
Form Number: None.
Affected Public: Insured State
nonmember banks and savings
associations that sell insurance
products; persons who sell insurance
products in or on behalf of insured State
nonmember banks and savings
associations.
BURDEN ESTIMATE
Estimated
number of
respondents
Type of burden
Estimated
hours per
response
Frequency of
response
Total annual
estimated
burden
(hours)
Review disclosure materials .........................
Make disclosures to consumers ...................
Recordkeeping ..........
Disclosure .................
2,020
2,020
1
4
On Occasion .............
On Occasion .............
2,020
8,080
Totals .....................................................
...................................
........................
........................
....................................
10,100
completion of the initial sale of an
insurance product or annuity to a
consumer; and (2) at the time of
application for the extension of credit (if
insurance products or annuities are
sold, solicited, advertised, or offered in
connection with an extension of credit).
General Description of Collection:
Respondents must prepare and provide
certain disclosures to consumers (e.g.,
that insurance products and annuities
are not FDIC-insured) and obtain
consumer acknowledgments, at two
different times: (1) Before the
4. Title: Reverse Mortgage Products.
OMB Number: 3064–0176.
Form Number: None.
Affected Public: Insured State
nonmember banks and savings
associations.
BURDEN ESTIMATE
Estimated
number of
respondents
Type of burden
Estimated
hours per
response
Frequency of
response
Total annual
estimated
burden
(hours)
Reporting ..................
Reporting ..................
1
26
40
8
Annually .....................
Annually .....................
40
200
Totals .....................................................
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Implementation .............................................
Ongoing ........................................................
...................................
........................
........................
....................................
240
General Description of Collection: In
August, 2010, the OCC, FDIC, FRB and
NCUA issued guidance focusing on the
need to provide adequate information to
consumers about reverse mortgage
products; to provide qualified
independent counseling to consumers
considering these products; and to avoid
potential conflicts of interest. The
guidance also addressed related
policies, procedures, internal controls,
and third party risk management. Prior
to the effective date of the final
guidance, the Agencies obtained PRA
approval from OMB for the information
collection requirements contained
therein. These information collection
requirements included implementation
of policies and procedures, training, and
program maintenance. The requirements
are outlined below:
• Institutions offering reverse
mortgages should have written policies
and procedures that prohibit the
practice of directing a consumer to a
particular counseling agency or
contacting a counselor on the
consumer’s behalf.
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• Policies should be clear so that
originators do not have an inappropriate
incentive to sell other products that
appear linked to the granting of a
mortgage.
• Legal and compliance reviews
should include oversight of
compensation programs so that lending
personnel are not improperly
encouraged to direct consumers to
particular products.
• Training should be designed so that
relevant lending personnel are able to
convey information to consumers about
product terms and risks in a timely,
accurate, and balanced manner.
Request for Comment
Comments are invited on: (a) Whether
the collections of information are
necessary for the proper performance of
the FDIC’s functions, including whether
the information has practical utility; (b)
the accuracy of the estimates of the
burden of the information collections,
including the validity of the
methodology and assumptions used; (c)
ways to enhance the quality, utility, and
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clarity of the information to be
collected; and (d) ways to minimize the
burden of the collections of information
on respondents, including through the
use of automated collection techniques
or other forms of information
technology. All comments will become
a matter of public record.
Dated at Washington, DC, this 23rd day of
November 2016.
Federal Deposit Insurance Corporation
Robert E. Feldman,
Executive Secretary.
[FR Doc. 2016–28679 Filed 11–28–16; 8:45 am]
BILLING CODE 6714–01–P
FEDERAL HOUSING FINANCE
AGENCY
[No. 2016–N–12]
Proposed Collection; Comment
Request
AGENCY:
Federal Housing Finance
Agency.
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Federal Register / Vol. 81, No. 229 / Tuesday, November 29, 2016 / Notices
30-Day Notice of submission of
information collection for approval from
Office of Management and Budget.
ACTION:
In accordance with the
requirements of the Paperwork
Reduction Act of 1995, the Federal
Housing Finance Agency (FHFA or the
Agency) is seeking public comments
concerning the information collection
known as the ‘‘Affordable Housing
Program,’’ which has been assigned
control number 2590–0007 by the Office
of Management and Budget (OMB).
FHFA intends to submit the information
collection to OMB for review and
approval of a three-year extension of the
control number, which is due to expire
on November 30, 2016.
DATES: Interested persons may submit
comments on or before December 29,
2016.
SUMMARY:
Submit comments to the
Office of Information and Regulatory
Affairs of the Office of Management and
Budget, Attention: Desk Officer for the
Federal Housing Finance Agency,
Washington, DC 20503, Fax: (202) 395–
3047, Email: OIRA_submission@
omb.eop.gov. Please also submit
comments to FHFA, identified by
‘‘Proposed Collection; Comment
Request: ‘Affordable Housing Program,
(No. 2016–N–12)’ ’’ by any of the
following methods:
• Agency Web site: www.fhfa.gov/
open-for-comment-or-input.
• Federal eRulemaking Portal: https://
www.regulations.gov. Follow the
instructions for submitting comments. If
you submit your comment to the
Federal eRulemaking Portal, please also
send it by email to FHFA at
RegComments@fhfa.gov to ensure
timely receipt by the agency.
• Mail/Hand Delivery: Federal
Housing Finance Agency, Eighth Floor,
400 Seventh Street SW., Washington,
DC 20219, ATTENTION: Proposed
Collection; Comment Request:
‘‘Affordable Housing Program, (No.
2016–N–12)’’.
• U.S. Mail, United Parcel Service,
Federal Express, or Other Mail Service:
The mailing address for comments is:
Alfred M. Pollard, General Counsel,
Attention: Comments/2016–N–12,
Federal Housing Finance Agency, 400
Seventh Street SW., Eighth Floor,
Washington, DC 20219.
We will post all public comments we
receive without change, including any
personal information you provide, such
as your name and address, email
address, and telephone number, on the
FHFA Web site at https://www.fhfa.gov.
In addition, copies of all comments
received will be available for
asabaliauskas on DSK3SPTVN1PROD with NOTICES
ADDRESSES:
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examination by the public on business
days between the hours of 10 a.m. and
3 p.m., at the Federal Housing Finance
Agency, Eighth Floor, 400 Seventh
Street SW., Washington, DC 20219. To
make an appointment to inspect
comments, please call the Office of
General Counsel at (202) 649–3804.
FOR FURTHER INFORMATION CONTACT:
Deattra D. Perkins, Senior Policy
Analyst, Division of Housing Mission &
Goals, Deattra.Perkins@fhfa.gov, (202)
649–3133; or Sylvia C. Martinez,
Manager, Federal Home Loan Bank
Housing and Community Investment
Programs, Division of Housing Mission
& Goals, Sylvia.Martinez@fhfa.gov, (202)
649–3301 (these are not toll-free
numbers); Federal Housing Finance
Agency, 400 Seventh Street SW.,
Washington, DC 20219. The
Telecommunications Device for the
Hearing Impaired is (800) 877–8339.
SUPPLEMENTARY INFORMATION:
A. Background
The Federal Home Loan Bank System
consists of eleven regional Federal
Home Loan Banks (Banks) and the
Office of Finance (a joint office of the
Banks that issues and services their debt
securities). The Banks are wholesale
financial institutions, organized under
authority of the Federal Home Loan
Bank Act (Bank Act) to serve the public
interest by enhancing the availability of
residential housing finance and
community lending credit through their
member institutions and, to a limited
extent, through eligible non-member
‘‘housing associates.’’ 1 Each Bank is
structured as a regional cooperative that
is owned and controlled by member
financial institutions located within its
district, which are also its primary
customers.
Section 10(j) of the Bank Act requires
FHFA to promulgate regulations under
which each of the eleven Banks must
establish an Affordable Housing
Program (AHP) to provide subsidy to the
Bank’s member institutions to: (1)
Finance homeownership by households
with incomes at or below 80 percent of
the area median income (low- or
moderate-income households); and (2)
to finance the purchase, construction, or
rehabilitation of rental housing in which
at least 20 percent of the units will be
occupied by and affordable for
households earning 50 percent or less of
the area median income (very low1 Certain non-member entities are permitted by
statute to engage in limited business activities with
a Bank. See 12 U.S.C. 1430b. FHFA’s regulations
refer to these entities as ‘‘housing associates.’’ See
12 CFR part 1264.
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85959
income households).2 Section 10(j) also
establishes standards and requirements
for providing such subsidized funding
to Bank members and requires each
Bank to contribute 10 percent of its
previous year’s net earnings to its AHP
annually, subject to a minimum annual
combined contribution by the eleven
Banks of $100 million.3
FHFA’s AHP regulation, which
implements the statutory AHP
requirements, is located at 12 CFR part
1291. The regulation requires that each
Bank establish and fund an AHP and
sets forth the parameters within which
the Banks’ programs must operate. The
regulation permits the Banks a degree of
discretion in determining how their
individual programs are to be
implemented and requires that each
Bank adopt an AHP Implementation
Plan setting forth the specific
requirements for that Bank’s program.4
Competitive Application Programs
The AHP regulation requires each
Bank to establish a competitive
application program under which the
Bank accepts applications for AHP
subsidized advances or direct subsidies
(grants) submitted by its members on
behalf of non-member entities having a
significant connection to the projects for
which subsidy is being sought (project
sponsors).5 Each Bank accepts
applications for AHP subsidy under its
competitive application program during
a specified number of funding periods
each year, as determined by the Bank.6
A Bank must determine for each
application it receives whether the
proposed project meets the AHP
regulatory eligibility requirements.7 The
Bank must score each application
according to AHP regulatory and Bankspecific scoring guidelines, and approve
the highest scoring projects within that
funding period for AHP subsidy.8
The regulation provides that, prior to
each disbursement of AHP subsidy for
a project approved under a Bank’s
competitive application program, the
Bank must confirm that the project
continues to meet the AHP regulatory
2 See
12 U.S.C. 1430(j)(1) and (2).
12 U.S.C. 1430(j)(5)(C).
4 See 12 CFR 1291.3.
5 See 12 CFR 1291.5. Under the regulation, an
AHP project sponsor may be an entity that either:
(1) Has an ownership interest in a rental project; (2)
is integrally involved in an owner-occupied project,
such as by exercising control over the planning,
development, or management of the project, or by
qualifying borrowers and providing or arranging
financing for the owners of the units; (3) operates
a loan pool; or (4) is a revolving loan fund. 12 CFR
1291.1 (definition of ‘‘sponsor’’).
6 See 12 CFR 1291.5(b)(1).
7 See 12 CFR 1291.5(c).
8 See 12 CFR 1291.5(d).
3 See
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Federal Register / Vol. 81, No. 229 / Tuesday, November 29, 2016 / Notices
eligibility requirements, as well as all
commitments made in the approved
AHP application.9 As part of this
process, Banks typically require that the
member and project sponsor provide
documentation demonstrating
continuing compliance.
The regulation permits a Bank to
approve a modification to the terms of
an approved application that would
change the score that the application
received in the funding period in which
it was originally scored and approved,
had the changed facts been operative at
that time. To approve a modification: (i)
The project, incorporating the changes,
must continue to meet the regulatory
eligibility requirements; (ii) the
application, as reflective of the changes,
must continue to score high enough to
have been approved in the funding
period in which it was originally scored
and approved; and (iii) there must be
good cause for the modification, and the
analysis and justification for the
modification must be documented by
the Bank in writing.10 Banks typically
require the member and project sponsor
requesting a modification to provide a
written analysis and justification as part
of their modification request.
The regulation requires generally that
a Bank monitor each owner-occupied
and rental project receiving AHP
subsidy under its competitive
application program prior to and after
project completion. For initial
monitoring, a Bank must determine
whether the project is making
satisfactory progress towards
completion, in compliance with the
commitments made in the approved
application, Bank policies, and the AHP
regulatory requirements. Following
project completion, the Bank must
determine whether satisfactory progress
is being made towards occupancy of the
project by eligible households, and
whether the project meets the regulatory
requirements and the commitments
made in the approved application.11 For
long-term monitoring of rental projects,
subject to certain exceptions in the AHP
regulation, the Bank must determine
whether, during the 15-year retention
period, the household incomes and
rents comply with the income targeting
and rent commitments made in the
approved application.12 For both the
initial and long-term monitoring, a Bank
must review appropriate documentation
maintained by the project sponsor.
9 See
12 CFR 1291.5(g)(3).
12 CFR 1291.5(f).
11 See 12 CFR 1291.7(a)(1).
12 See 12 CFR 1291.7(a)(4).
10 See
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Homeownership Set-Aside Programs
The AHP regulation also authorizes
each Bank, in its discretion, to allocate
up to the greater of $4.5 million or 35
percent of its annual required AHP
contribution to establish
homeownership set-aside programs for
the purpose of promoting
homeownership for low- or moderateincome households.13 Under these
homeownership set-aside programs, a
Bank may provide to its members AHP
direct subsidies, which are to be
provided by the members to eligible
households as a grant to pay for down
payment, closing cost, counseling cost
or rehabilitation assistance in
connection with the household’s
purchase of a primary residence or
rehabilitation of an owner-occupied
residence.14 Prior to the Bank’s
disbursement of a direct subsidy under
its homeownership set-aside program,
the member must provide a certification
that the subsidy will be provided in
compliance with all applicable
regulatory eligibility requirements.15
AHP Information Submitted by Banks to
FHFA
FHFA’s Data Reporting Manual (DRM)
requires each Bank to submit to FHFA
aggregate AHP information.16 The DRM
requires each Bank to submit to FHFA
project-level information regarding its
competitive application program and
household-level information regarding
its homeownership set-aside program
semi-annually. The information the
Banks are required to submit to FHFA
under the DRM is derived from the
documentation submitted by Bank
members and project sponsors that is
described above.
B. Need for and Use of the Information
Collection
The Banks use the information
collected under part 1291 to determine
whether: (1) Projects for which Bank
members and project sponsors are
seeking subsidies under the Banks’
competitive application programs
satisfy the applicable statutory and
regulatory requirements and score
highly enough in comparison with other
applications submitted during the same
funding period to be approved for AHP
subsidies; (2) projects approved under
the Banks’ competitive application
13 See
12 CFR 1291.2(b)(2); 1291.6.
12 CFR 1291.6(c)(4).
15 See 12 CFR 1291.7(b)(2).
16 The AHP reporting requirements are located in
chapter 5 of the DRM, which is available
electronically on FHFA’s public Web site at https://
www.fhfa.gov/SupervisionRegulation/
FederalHomeLoanBanks/Documents/FHFBResolutions/2006/2006-13-Attachment.pdf.
14 See
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programs continue to meet the
applicable requirements and to comply
with the commitments made in the
approved applications each time
subsidy is disbursed; (3) requests for
modifications of projects approved
under the Banks’ competitive
application programs meet the
regulatory requirements for approval; (4)
projects approved under the Banks’
competitive application programs are
making satisfactory progress towards
completion, and following project
completion, are making satisfactory
progress towards occupancy of the
project by eligible households, in
compliance with the commitments
made in the approved applications,
Bank policies, and the regulatory
requirements (initial monitoring); (5)
during the 15-year retention period,
completed rental projects continue to
comply with the household income
targeting and rent commitments made in
the approved applications (long-term
monitoring); and (6) applications for
direct subsidy under Banks’
homeownership set-aside programs
were approved, and the direct subsidies
disbursed, in accordance with the
regulatory requirements.
FHFA uses the information required
to be submitted by the Banks under the
DRM to verify that the Banks’ funding
decisions, and the use of the funds
awarded, were consistent with statutory
and regulatory requirements.
The OMB control number for the
information collection is 2590–0007.
The current clearance expires on
November 30, 2016. The likely
respondents are institutions that are
Bank members and non-member entities
that sponsor an AHP project.
C. Burden Estimate
FHFA has analyzed each of the six
facets of this information collection in
order to estimate the hour burdens that
the collection will impose upon Bank
members and AHP project sponsors
annually over the next three years.
Based on that analysis, FHFA estimates
that the total annual hour burden will
be 115,750. The method FHFA used to
determine the annual hour burden for
each facet of the information collection
is explained in detail below.
I. AHP Competitive Applications
FHFA estimates that Bank members,
on behalf of project sponsors, will
submit to the Banks an annual average
of 1,350 applications for AHP subsidies
under the Banks’ competitive
application programs and that the
average preparation time for each
application will be 24 hours. The
estimate for the total annual hour
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Federal Register / Vol. 81, No. 229 / Tuesday, November 29, 2016 / Notices
burden on members and project
sponsors in connection with the
preparation and submission of AHP
competitive applications is 32,400 hours
(1,350 applications × 24 hours).
II. Compliance Submissions for
Approved Competitive Application
Projects at AHP Subsidy Disbursement
FHFA estimates that Bank members,
on behalf of project sponsors, will make
an annual average of 700 submissions to
the Banks documenting that projects
approved under the Banks’ competitive
application programs continue to
comply with the regulatory eligibility
requirements and all commitments
made in the approved applications at
the time each AHP subsidy is disbursed,
and that the average preparation time
for each submission will be 1 hour. The
estimate for the total annual hour
burden on members and project
sponsors in connection with the
preparation and submission of these
compliance submissions is 700 hours
(700 submissions × 1 hour).
III. Modification Requests for Approved
Competitive Application Projects
FHFA estimates that Bank members,
on behalf of project sponsors, will
submit to the Banks an annual average
of 300 requests for modifications to
projects that have been approved under
the Banks’ competitive application
programs, and that the average
preparation time for each request will be
2.5 hours. The estimate for the total
annual hour burden on members and
project sponsors in connection with the
preparation and submission of these
modification requests is 750 hours (300
requests × 2.5 hours).
asabaliauskas on DSK3SPTVN1PROD with NOTICES
IV. Initial Monitoring Submissions for
Approved Competitive Application
Projects
FHFA estimates that project sponsors
will make an annual average of 500
submissions of documentation to the
Banks for purposes of the Banks’ initial
monitoring of in-progress and recently
completed projects approved under
their competitive application programs,
and that the average preparation time
for each submission will be 5 hours. The
estimate for the total annual hour
burden on project sponsors in
connection with the preparation and
submission of documentation required
for initial monitoring of competitive
application projects is 2,500 hours (500
submissions × 5 hours).
V. Long-Term Monitoring Submissions
for Approved Competitive Application
Program Projects
FHFA estimates that project sponsors
will make an annual average of 4,800
submissions of documentation to the
Banks for purposes of the Banks’ longterm monitoring of completed projects
approved under their competitive
application programs, and that the
average preparation time for each
submission will be 3 hours. The
estimate for the total annual hour
burden on project sponsors in
connection with the preparation and
submission of documentation required
for long-term monitoring of competitive
application projects is 14,400 hours
(4,800 submissions × 3 hours).
VI. Homeownership Set-Aside Program
Applications and Certifications
FHFA estimates that Bank members
will submit to the Banks an annual
average of 13,000 applications and
required certifications for AHP direct
subsidies under the Banks’
homeownership set-aside programs, and
that the average preparation time for
those submissions together will be 5
hours. The estimate for the total annual
hour burden on members in connection
with the preparation and submission of
homeownership set-aside program
applications and certifications is 65,000
hours (13,000 applications/certifications
× 5 hours).
D. Comment Request
In accordance with the requirements
of 5 CFR 1320.8(d), FHFA published an
initial notice requesting comments
regarding this information collection in
the Federal Register on September 23,
2016.17 The 60-day comment period
closed on September 22, 2016. No
comments were received.
In accordance with the requirements
of 5 CFR 1320.10(a), FHFA is publishing
this second notice to request comments
regarding the following: (1) Whether the
collection of information is necessary
for the proper performance of FHFA
functions, including whether the
information has practical utility; (2) the
accuracy of FHFA’s estimates of the
burdens of the collection of information;
(3) ways to enhance the quality, utility
and clarity of the information collected;
and (4) ways to minimize the burden of
the collection of information on
members and project sponsors,
including through the use of automated
collection techniques or other forms of
information technology. Comments
should be submitted in writing to both
17 See
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85961
OMB and FHFA as instructed above in
the COMMENTS section.
Dated: November 23, 2016.
Kevin Winkler,
Chief Information Officer, Federal Housing
Finance Agency.
[FR Doc. 2016–28707 Filed 11–28–16; 8:45 am]
BILLING CODE 8070–01–P
FEDERAL MARITIME COMMISSION
Notice of Agreement Filed
The Commission hereby gives notice
of the filing of the following agreement
under the Shipping Act of 1984.
Interested parties may submit comments
on the agreement to the Secretary,
Federal Maritime Commission,
Washington, DC 20573, within twelve
days of the date this notice appears in
the Federal Register. A copy of the
agreement is available through the
Commission’s Web site (www.fmc.gov)
or by contacting the Office of
Agreements at (202)-523–5793 or
tradeanalysis@fmc.gov.
Agreement No.: 012443.
Title: Hyundai Glovis/Sallaum
Cooperative Working Agreement.
Parties: Hyundai Glovis Co. Ltd. and
Sallaum Lines DMCC.
Filing Party: Wayne R. Rohde, Esq.;
Cozen O’Conner; 1200 Nineteenth Street
NW; Washington, DC 20036.
Synopsis: The Agreement authorizes
the parties to charter space to/from one
another and coordinate the sailings of
their ro-ro vessels in the trade from the
Atlantic and Gulf Coasts of the United
States to ports in West and South Africa.
The Parties request expedited review.
By Order of the Federal Maritime
Commission.
Dated: November 22, 2016.
Rachel E. Dickon,
Assistant Secretary.
[FR Doc. 2016–28629 Filed 11–28–16; 8:45 am]
BILLING CODE 6731–AA–P
FEDERAL RESERVE SYSTEM
Formations of, Acquisitions by, and
Mergers of Bank Holding Companies
The companies listed in this notice
have applied to the Board for approval,
pursuant to the Bank Holding Company
Act of 1956 (12 U.S.C. 1841 et seq.)
(BHC Act), Regulation Y (12 CFR part
225), and all other applicable statutes
and regulations to become a bank
holding company and/or to acquire the
assets or the ownership of, control of, or
the power to vote shares of a bank or
bank holding company and all of the
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Agencies
[Federal Register Volume 81, Number 229 (Tuesday, November 29, 2016)]
[Notices]
[Pages 85958-85961]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-28707]
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FEDERAL HOUSING FINANCE AGENCY
[No. 2016-N-12]
Proposed Collection; Comment Request
AGENCY: Federal Housing Finance Agency.
[[Page 85959]]
ACTION: 30-Day Notice of submission of information collection for
approval from Office of Management and Budget.
-----------------------------------------------------------------------
SUMMARY: In accordance with the requirements of the Paperwork Reduction
Act of 1995, the Federal Housing Finance Agency (FHFA or the Agency) is
seeking public comments concerning the information collection known as
the ``Affordable Housing Program,'' which has been assigned control
number 2590-0007 by the Office of Management and Budget (OMB). FHFA
intends to submit the information collection to OMB for review and
approval of a three-year extension of the control number, which is due
to expire on November 30, 2016.
DATES: Interested persons may submit comments on or before December 29,
2016.
ADDRESSES: Submit comments to the Office of Information and Regulatory
Affairs of the Office of Management and Budget, Attention: Desk Officer
for the Federal Housing Finance Agency, Washington, DC 20503, Fax:
(202) 395-3047, Email: OIRA_submission@omb.eop.gov. Please also submit
comments to FHFA, identified by ``Proposed Collection; Comment Request:
`Affordable Housing Program, (No. 2016-N-12)' '' by any of the
following methods:
Agency Web site: www.fhfa.gov/open-for-comment-or-input.
Federal eRulemaking Portal: https://www.regulations.gov.
Follow the instructions for submitting comments. If you submit your
comment to the Federal eRulemaking Portal, please also send it by email
to FHFA at RegComments@fhfa.gov to ensure timely receipt by the agency.
Mail/Hand Delivery: Federal Housing Finance Agency, Eighth
Floor, 400 Seventh Street SW., Washington, DC 20219, ATTENTION:
Proposed Collection; Comment Request: ``Affordable Housing Program,
(No. 2016-N-12)''.
U.S. Mail, United Parcel Service, Federal Express, or
Other Mail Service: The mailing address for comments is: Alfred M.
Pollard, General Counsel, Attention: Comments/2016-N-12, Federal
Housing Finance Agency, 400 Seventh Street SW., Eighth Floor,
Washington, DC 20219.
We will post all public comments we receive without change,
including any personal information you provide, such as your name and
address, email address, and telephone number, on the FHFA Web site at
https://www.fhfa.gov. In addition, copies of all comments received will
be available for examination by the public on business days between the
hours of 10 a.m. and 3 p.m., at the Federal Housing Finance Agency,
Eighth Floor, 400 Seventh Street SW., Washington, DC 20219. To make an
appointment to inspect comments, please call the Office of General
Counsel at (202) 649-3804.
FOR FURTHER INFORMATION CONTACT: Deattra D. Perkins, Senior Policy
Analyst, Division of Housing Mission & Goals, Deattra.Perkins@fhfa.gov,
(202) 649-3133; or Sylvia C. Martinez, Manager, Federal Home Loan Bank
Housing and Community Investment Programs, Division of Housing Mission
& Goals, Sylvia.Martinez@fhfa.gov, (202) 649-3301 (these are not toll-
free numbers); Federal Housing Finance Agency, 400 Seventh Street SW.,
Washington, DC 20219. The Telecommunications Device for the Hearing
Impaired is (800) 877-8339.
SUPPLEMENTARY INFORMATION:
A. Background
The Federal Home Loan Bank System consists of eleven regional
Federal Home Loan Banks (Banks) and the Office of Finance (a joint
office of the Banks that issues and services their debt securities).
The Banks are wholesale financial institutions, organized under
authority of the Federal Home Loan Bank Act (Bank Act) to serve the
public interest by enhancing the availability of residential housing
finance and community lending credit through their member institutions
and, to a limited extent, through eligible non-member ``housing
associates.'' \1\ Each Bank is structured as a regional cooperative
that is owned and controlled by member financial institutions located
within its district, which are also its primary customers.
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\1\ Certain non-member entities are permitted by statute to
engage in limited business activities with a Bank. See 12 U.S.C.
1430b. FHFA's regulations refer to these entities as ``housing
associates.'' See 12 CFR part 1264.
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Section 10(j) of the Bank Act requires FHFA to promulgate
regulations under which each of the eleven Banks must establish an
Affordable Housing Program (AHP) to provide subsidy to the Bank's
member institutions to: (1) Finance homeownership by households with
incomes at or below 80 percent of the area median income (low- or
moderate-income households); and (2) to finance the purchase,
construction, or rehabilitation of rental housing in which at least 20
percent of the units will be occupied by and affordable for households
earning 50 percent or less of the area median income (very low-income
households).\2\ Section 10(j) also establishes standards and
requirements for providing such subsidized funding to Bank members and
requires each Bank to contribute 10 percent of its previous year's net
earnings to its AHP annually, subject to a minimum annual combined
contribution by the eleven Banks of $100 million.\3\
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\2\ See 12 U.S.C. 1430(j)(1) and (2).
\3\ See 12 U.S.C. 1430(j)(5)(C).
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FHFA's AHP regulation, which implements the statutory AHP
requirements, is located at 12 CFR part 1291. The regulation requires
that each Bank establish and fund an AHP and sets forth the parameters
within which the Banks' programs must operate. The regulation permits
the Banks a degree of discretion in determining how their individual
programs are to be implemented and requires that each Bank adopt an AHP
Implementation Plan setting forth the specific requirements for that
Bank's program.\4\
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\4\ See 12 CFR 1291.3.
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Competitive Application Programs
The AHP regulation requires each Bank to establish a competitive
application program under which the Bank accepts applications for AHP
subsidized advances or direct subsidies (grants) submitted by its
members on behalf of non-member entities having a significant
connection to the projects for which subsidy is being sought (project
sponsors).\5\ Each Bank accepts applications for AHP subsidy under its
competitive application program during a specified number of funding
periods each year, as determined by the Bank.\6\ A Bank must determine
for each application it receives whether the proposed project meets the
AHP regulatory eligibility requirements.\7\ The Bank must score each
application according to AHP regulatory and Bank-specific scoring
guidelines, and approve the highest scoring projects within that
funding period for AHP subsidy.\8\
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\5\ See 12 CFR 1291.5. Under the regulation, an AHP project
sponsor may be an entity that either: (1) Has an ownership interest
in a rental project; (2) is integrally involved in an owner-occupied
project, such as by exercising control over the planning,
development, or management of the project, or by qualifying
borrowers and providing or arranging financing for the owners of the
units; (3) operates a loan pool; or (4) is a revolving loan fund. 12
CFR 1291.1 (definition of ``sponsor'').
\6\ See 12 CFR 1291.5(b)(1).
\7\ See 12 CFR 1291.5(c).
\8\ See 12 CFR 1291.5(d).
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The regulation provides that, prior to each disbursement of AHP
subsidy for a project approved under a Bank's competitive application
program, the Bank must confirm that the project continues to meet the
AHP regulatory
[[Page 85960]]
eligibility requirements, as well as all commitments made in the
approved AHP application.\9\ As part of this process, Banks typically
require that the member and project sponsor provide documentation
demonstrating continuing compliance.
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\9\ See 12 CFR 1291.5(g)(3).
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The regulation permits a Bank to approve a modification to the
terms of an approved application that would change the score that the
application received in the funding period in which it was originally
scored and approved, had the changed facts been operative at that time.
To approve a modification: (i) The project, incorporating the changes,
must continue to meet the regulatory eligibility requirements; (ii) the
application, as reflective of the changes, must continue to score high
enough to have been approved in the funding period in which it was
originally scored and approved; and (iii) there must be good cause for
the modification, and the analysis and justification for the
modification must be documented by the Bank in writing.\10\ Banks
typically require the member and project sponsor requesting a
modification to provide a written analysis and justification as part of
their modification request.
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\10\ See 12 CFR 1291.5(f).
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The regulation requires generally that a Bank monitor each owner-
occupied and rental project receiving AHP subsidy under its competitive
application program prior to and after project completion. For initial
monitoring, a Bank must determine whether the project is making
satisfactory progress towards completion, in compliance with the
commitments made in the approved application, Bank policies, and the
AHP regulatory requirements. Following project completion, the Bank
must determine whether satisfactory progress is being made towards
occupancy of the project by eligible households, and whether the
project meets the regulatory requirements and the commitments made in
the approved application.\11\ For long-term monitoring of rental
projects, subject to certain exceptions in the AHP regulation, the Bank
must determine whether, during the 15-year retention period, the
household incomes and rents comply with the income targeting and rent
commitments made in the approved application.\12\ For both the initial
and long-term monitoring, a Bank must review appropriate documentation
maintained by the project sponsor.
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\11\ See 12 CFR 1291.7(a)(1).
\12\ See 12 CFR 1291.7(a)(4).
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Homeownership Set-Aside Programs
The AHP regulation also authorizes each Bank, in its discretion, to
allocate up to the greater of $4.5 million or 35 percent of its annual
required AHP contribution to establish homeownership set-aside programs
for the purpose of promoting homeownership for low- or moderate-income
households.\13\ Under these homeownership set-aside programs, a Bank
may provide to its members AHP direct subsidies, which are to be
provided by the members to eligible households as a grant to pay for
down payment, closing cost, counseling cost or rehabilitation
assistance in connection with the household's purchase of a primary
residence or rehabilitation of an owner-occupied residence.\14\ Prior
to the Bank's disbursement of a direct subsidy under its homeownership
set-aside program, the member must provide a certification that the
subsidy will be provided in compliance with all applicable regulatory
eligibility requirements.\15\
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\13\ See 12 CFR 1291.2(b)(2); 1291.6.
\14\ See 12 CFR 1291.6(c)(4).
\15\ See 12 CFR 1291.7(b)(2).
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AHP Information Submitted by Banks to FHFA
FHFA's Data Reporting Manual (DRM) requires each Bank to submit to
FHFA aggregate AHP information.\16\ The DRM requires each Bank to
submit to FHFA project-level information regarding its competitive
application program and household-level information regarding its
homeownership set-aside program semi-annually. The information the
Banks are required to submit to FHFA under the DRM is derived from the
documentation submitted by Bank members and project sponsors that is
described above.
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\16\ The AHP reporting requirements are located in chapter 5 of
the DRM, which is available electronically on FHFA's public Web site
at https://www.fhfa.gov/SupervisionRegulation/FederalHomeLoanBanks/Documents/FHFB-Resolutions/2006/2006-13-Attachment.pdf.
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B. Need for and Use of the Information Collection
The Banks use the information collected under part 1291 to
determine whether: (1) Projects for which Bank members and project
sponsors are seeking subsidies under the Banks' competitive application
programs satisfy the applicable statutory and regulatory requirements
and score highly enough in comparison with other applications submitted
during the same funding period to be approved for AHP subsidies; (2)
projects approved under the Banks' competitive application programs
continue to meet the applicable requirements and to comply with the
commitments made in the approved applications each time subsidy is
disbursed; (3) requests for modifications of projects approved under
the Banks' competitive application programs meet the regulatory
requirements for approval; (4) projects approved under the Banks'
competitive application programs are making satisfactory progress
towards completion, and following project completion, are making
satisfactory progress towards occupancy of the project by eligible
households, in compliance with the commitments made in the approved
applications, Bank policies, and the regulatory requirements (initial
monitoring); (5) during the 15-year retention period, completed rental
projects continue to comply with the household income targeting and
rent commitments made in the approved applications (long-term
monitoring); and (6) applications for direct subsidy under Banks'
homeownership set-aside programs were approved, and the direct
subsidies disbursed, in accordance with the regulatory requirements.
FHFA uses the information required to be submitted by the Banks
under the DRM to verify that the Banks' funding decisions, and the use
of the funds awarded, were consistent with statutory and regulatory
requirements.
The OMB control number for the information collection is 2590-0007.
The current clearance expires on November 30, 2016. The likely
respondents are institutions that are Bank members and non-member
entities that sponsor an AHP project.
C. Burden Estimate
FHFA has analyzed each of the six facets of this information
collection in order to estimate the hour burdens that the collection
will impose upon Bank members and AHP project sponsors annually over
the next three years. Based on that analysis, FHFA estimates that the
total annual hour burden will be 115,750. The method FHFA used to
determine the annual hour burden for each facet of the information
collection is explained in detail below.
I. AHP Competitive Applications
FHFA estimates that Bank members, on behalf of project sponsors,
will submit to the Banks an annual average of 1,350 applications for
AHP subsidies under the Banks' competitive application programs and
that the average preparation time for each application will be 24
hours. The estimate for the total annual hour
[[Page 85961]]
burden on members and project sponsors in connection with the
preparation and submission of AHP competitive applications is 32,400
hours (1,350 applications x 24 hours).
II. Compliance Submissions for Approved Competitive Application
Projects at AHP Subsidy Disbursement
FHFA estimates that Bank members, on behalf of project sponsors,
will make an annual average of 700 submissions to the Banks documenting
that projects approved under the Banks' competitive application
programs continue to comply with the regulatory eligibility
requirements and all commitments made in the approved applications at
the time each AHP subsidy is disbursed, and that the average
preparation time for each submission will be 1 hour. The estimate for
the total annual hour burden on members and project sponsors in
connection with the preparation and submission of these compliance
submissions is 700 hours (700 submissions x 1 hour).
III. Modification Requests for Approved Competitive Application
Projects
FHFA estimates that Bank members, on behalf of project sponsors,
will submit to the Banks an annual average of 300 requests for
modifications to projects that have been approved under the Banks'
competitive application programs, and that the average preparation time
for each request will be 2.5 hours. The estimate for the total annual
hour burden on members and project sponsors in connection with the
preparation and submission of these modification requests is 750 hours
(300 requests x 2.5 hours).
IV. Initial Monitoring Submissions for Approved Competitive Application
Projects
FHFA estimates that project sponsors will make an annual average of
500 submissions of documentation to the Banks for purposes of the
Banks' initial monitoring of in-progress and recently completed
projects approved under their competitive application programs, and
that the average preparation time for each submission will be 5 hours.
The estimate for the total annual hour burden on project sponsors in
connection with the preparation and submission of documentation
required for initial monitoring of competitive application projects is
2,500 hours (500 submissions x 5 hours).
V. Long-Term Monitoring Submissions for Approved Competitive
Application Program Projects
FHFA estimates that project sponsors will make an annual average of
4,800 submissions of documentation to the Banks for purposes of the
Banks' long-term monitoring of completed projects approved under their
competitive application programs, and that the average preparation time
for each submission will be 3 hours. The estimate for the total annual
hour burden on project sponsors in connection with the preparation and
submission of documentation required for long-term monitoring of
competitive application projects is 14,400 hours (4,800 submissions x 3
hours).
VI. Homeownership Set-Aside Program Applications and Certifications
FHFA estimates that Bank members will submit to the Banks an annual
average of 13,000 applications and required certifications for AHP
direct subsidies under the Banks' homeownership set-aside programs, and
that the average preparation time for those submissions together will
be 5 hours. The estimate for the total annual hour burden on members in
connection with the preparation and submission of homeownership set-
aside program applications and certifications is 65,000 hours (13,000
applications/certifications x 5 hours).
D. Comment Request
In accordance with the requirements of 5 CFR 1320.8(d), FHFA
published an initial notice requesting comments regarding this
information collection in the Federal Register on September 23,
2016.\17\ The 60-day comment period closed on September 22, 2016. No
comments were received.
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\17\ See 81 FR 65648 (Sept. 23, 2016).
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In accordance with the requirements of 5 CFR 1320.10(a), FHFA is
publishing this second notice to request comments regarding the
following: (1) Whether the collection of information is necessary for
the proper performance of FHFA functions, including whether the
information has practical utility; (2) the accuracy of FHFA's estimates
of the burdens of the collection of information; (3) ways to enhance
the quality, utility and clarity of the information collected; and (4)
ways to minimize the burden of the collection of information on members
and project sponsors, including through the use of automated collection
techniques or other forms of information technology. Comments should be
submitted in writing to both OMB and FHFA as instructed above in the
COMMENTS section.
Dated: November 23, 2016.
Kevin Winkler,
Chief Information Officer, Federal Housing Finance Agency.
[FR Doc. 2016-28707 Filed 11-28-16; 8:45 am]
BILLING CODE 8070-01-P