60-Day Notice of Proposed Information Collection: Comment Request: Agency Information Collection Activities: Public Housing Annual Contributions Contract for Capital and Operating Grant Funds, 66729-66737 [2018-28095]
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Federal Register / Vol. 83, No. 247 / Thursday, December 27, 2018 / Notices
metropolitan areas that are not covered
by a CPI city-survey).
AAFs use the same OMB metropolitan
area definitions, as revised by HUD, that
are used for the FY 2019 FMRs.
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To make certain that they are using
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datasets/aaf.html. The Area Definitions
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Region and are not separately listed in
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Dated: December 20, 2018.
Todd M. Richardson,
General Deputy Assistant Secretary for Office
of Policy Development and Research.
[FR Doc. 2018–28097 Filed 12–26–18; 8:45 am]
BILLING CODE 4210–67–P
DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT
[Docket No. FR–7006–N–15]
60-Day Notice of Proposed Information
Collection: Comment Request: Agency
Information Collection Activities:
Public Housing Annual Contributions
Contract for Capital and Operating
Grant Funds
Office of the Assistant
Secretary for Public and Indian
Housing, HUD.
ACTION: Notice.
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AGENCY:
HUD is seeking approval from
the Office of Management and Budget
(OMB) for the information and
collection described below. The public
housing program provides Operating
SUMMARY:
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Funds and Capital Funds to low rent
projects owned and operated by public
housing agencies (PHAs), subject to the
terms and conditions contained in the
Annual Contributions Contract (ACC)
grant agreement. These program
requirements govern how projects are
funded and operated by PHAs. HUD has
made changes and updates to its grant
agreement, the Annual Contributions
Contract (ACC) (the ‘‘New ACC’’), based
on current applicable statutes and
regulations. This notice is to provide
PHAs with notice of the changes and the
opportunity to comment on such
changes. In accordance with the
Paperwork Reduction Act, HUD is
requesting comment from all interested
parties on the proposed collection of
information. The purpose of this notice
is to allow for 60 days of public
comment.
DATES: Comments Due Date: February
25, 2019.
ADDRESSES: Interested persons are
invited to submit comments regarding
this proposal. All comments must refer
to the proposal by name and OMB
Control Number. There are two methods
for submitting public comments.
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 also
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 website 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 methods specified above.
Again, all submissions must refer to the
docket number and title of the notice.
No Facsimiled Comments. Facsimiled
(faxed) comments are not acceptable.
Public Inspection of Public
Comments. Copies of all comments
submitted are available for inspection
and downloading at
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66729
www.regulations.gov. In addition, all
properly submitted comments and
communications submitted to HUD will
be available for public inspection and
copying between 8 a.m. and 5 p.m.,
weekdays, at the above address. Due to
security measures at the HUD
Headquarters building, an advance
appointment to review the public
comments must be scheduled by calling
the Regulations Division at 202–708–
3055 (this is not a toll-free number).
Individuals with speech or hearing
impairments may access this number
via TTY by calling the Federal Relay
Service at 800–877–8339 (this is a tollfree number).
FOR FURTHER INFORMATION CONTACT:
Arlette Mussington, Office of Policy,
Programs and Legislative Initiatives,
PIH, Department of Housing and Urban
Development, 451 7th Street SW, Room
3178, Washington, DC 20410; telephone
202–402–4109, (this is not a toll-free
number). Persons with hearing or
speech impairments may access this
number via TTY by calling the Federal
Information Relay Service at (800) 877–
8339. Copies of available documents
submitted to OMB may be obtained
from Ms. Mussington.
SUPPLEMENTARY INFORMATION: This
notice informs the public that the
Department is re-submitting the
proposed information collection to OMB
for review, under the Paperwork
Reduction Act of 1995 (44 U.S.C.
Chapter 35, as amended). HUD is
seeking approval from OMB for the
information collection described in
Section A.
A. Overview of Information Collection
Title of Information Collection: Public
Housing Annual Contributions Contract
for Capital and Operating Grant Funds.1
OMB Approval Number: 2577–0075.
Type of Request: Revision of a
currently approved collection.
Form Number: HUD–52840A; HUD–
53012A; HUD–53012 B.
Description of the need for the
information and proposed use: The ACC
establishes the basic terms and
conditions for the PHA’s public housing
programs and requires the PHA to
manage and operate its public housing
properties in accordance with the
United States Housing Act of 1937 (42
U.S.C. 1437 et seq.) (1937 Act) and all
applicable HUD requirements. The ACC
governs the award and use of two
distinct public housing grant funds. The
Capital Fund Program (CFP) provides
financial assistance in the form of grants
1 The previous title was ‘‘Public Housing Annual
Contribution Contract and Inventory Removal
Application’’.
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to PHAs to carry out eligible capital and
management activities authorized by
Section 9(d)(1) of the 1937 Act. The
Operating Fund Program provides
financial assistance in the form of grants
to PHAs for the operation and
maintenance of public housing
authorized by Section 9(e)(1) of the 1937
Act. Section 6 of the 1937 Act, 24 CFR
5.403, 24 CFR 905.100 (Capital Fund),
and 24 CFR 990.115 (Operating Fund)
authorizes the Secretary of HUD to make
annual contributions for federal
financial assistance in the form of grants
to PHAs to achieve and maintain the
low income character of public housing
projects. The Secretary is required to
embody the provisions for such annual
grant contributions in a grant agreement
(i.e., the ACC). Additional applicable
regulations include: 24 CFR part 907 for
Substantial Default by a PHA; 2 CFR
part 200 for Uniform Administrative
Requirements, Cost Principles and
Audit Requirements for Federal Awards,
and 24 CFR part 5 for General HUD
Program Requirements.
The amendment of this notice of
proposed information collection
provides PHAs with sufficient notice of
the changes to the New ACC, which was
revised in order to align the agreement
with existing statutes and regulations. It
combines Part A and B of the 1995 ACC
and the Mixed Finance Amendment to
the 1995 ACC to streamline the grant
agreement. The New ACC also removes
Section 10, Operating Budget and
Section 11, Pooling of Funds formerly in
the 1995 version of ACC, because these
provisions are no longer included in 24
CFR part 990 and thus no longer apply.
Section 22, Performance of Conditions
Precedent to the Validity, which
discussed implementation of the 1995
version of the ACC, is also deleted.
Total
responses
ACC provision
1. Execute new ACC via HUD form 53012–A and B ......................................
2. Terminate or amend ACC ...........................................................................
3. Request HUD approval of non-dwelling leases or agreements ..................
4. HUD approval for easement uses ...............................................................
5. Submit General Depository Agreement (GDA) via form HUD 51999 .........
6. Request to terminate GDA ..........................................................................
7. ACC revisions to change year end dates ...................................................
8. ACC to consolidate PHAS ...........................................................................
9. ACC revision to transfer programs ..............................................................
10. Request review of Conflict of interest .......................................................
11. Request pooling of insurance ....................................................................
12. Request for new Declaration of Trust (DOT) via form HUD 52190–A
and B ............................................................................................................
13. Request DOT amendment or termination .................................................
14. Amend ACC for Capital Fund Finance via form HUD 52840–A ...............
15. Amend ACC for Mixed Finance Supplementary Legal Document ............
16. Amend ACC for Capital Grant ...................................................................
17. Amend ACC for Emergency Capital Fund Grant ......................................
18. Amend ACC Capital Fund for Safety and Security ...................................
19. Amend ACC to Recapture Capital Fund Grant .........................................
20. Amend ACC for Energy Performance Contract ........................................
21. Amend ACC for Community Facilities Grants ...........................................
22. Demo Disposition Approvals and Removing Units form ACC–HUD Form
52860 ...........................................................................................................
23. Chicago Special Applications Center Approval for Inventory Removal
Applications ..................................................................................................
24. Supplementary Document: Unique Legal Document used by HQ Staff
Mixed-Finance Amendment to the ACC ......................................................
Totals ........................................................................................................
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B. Solicitation of Public Comment
This notice is soliciting comments
from members of the public and affected
parties concerning the collection of
information described in Section A on
the following:
(1) Whether the proposed collection
of information is necessary for the
proper performance of the functions of
the agency, including whether the
information will have practical utility;
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Total hours
Cost per
hour
Total cost
($)
42
78
114
48
265
107
23
18
43
102
5
205
390
735
3524
651
202
257
217
391
951
97
$24.34
24.34
24.34
24.34
24.34
24.34
24.34
24.34
24.34
24.34
24.34
$4,990
9,493
17,890
8,567
15,845
4,917
6,255
5,282
9,517
23,147
2,361
142
221
73
94
2820
38
75
123
38
13
1249
2031
788
1981
11,070
100
96
643
192
28
24.34
24.34
24.34
50
24.34
24.34
24.34
24.34
24.34
24.34
30,400
49,435
19,180
99,050
269,443
2,434
2,337
15,650
4,673
682
162
1746
24.34
42,498
851
6,010
33.06
225,072
60
1440
50
72,000
6,765
34,944
........................
927,423
(2) The accuracy of the agency’s
estimate of the burden of the proposed
collection of information;
(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 those
who are to respond; including through
the use of appropriate automated
collection techniques or other forms of
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Additionally, the New ACC includes
additional definitions that were not in
the 1995 ACC but are already in existing
regulations required by the 1937 Act
and makes changes to definitions of
‘‘Operating Costs’’ and ‘‘Operating
Receipts’’ to be consistent with 24 CFR
part 905 subpart F, 24 CFR 990.110 and
990.115, 2 CFR 200.80 and 2 CFR
200.307. Finally, the New ACC
incorporates a definition for ‘‘Annual
Contributions Contract’’ consistent with
the terms and conditions under which
the public housing grant program has
been administered by HUD, and
consistent with existing regulations at 2
CFR 200.51, 24 CFR 905.100(b), and
905.300(b), 905.306, 905.322, which
refer to the programs as grants. This
definition applies to both the Capital
Fund and Operating Fund.
Respondents: Public housing
agencies.
information technology, e.g., permitting
electronic submission of responses.
HUD encourages interested parties to
submit comment in response.
Affected Public Who Will Be Asked or
Required to Respond: The primary
respondents are Public Housing
Agencies.
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C. Authority
Section 3507 of the Paperwork
Reduction Act of 1995, 44 U.S.C.
Chapter 35.
Date: December 19, 2018.
Dominique Blom,
General Deputy Assistant Secretary for Public
and Indian Housing.
Annual Contributions Contract HUD–
53012 (ACC)
U.S. Department of Housing and Urban
Development Office of Public and
Indian Housing
OMB Approval No. 2577–0075
(exp. 01/31/2021)
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The information collection requirements
contained in this document have been
approved by the Office of Management and
Budget (OMB) under the Paperwork
Reduction Act of 1995 (44 U.S.C. 3501–3520)
and assigned OMB control number 2577–
0075. There is no personal information
contained in this application. Information on
activities and expenditures of grant funds is
public information and is generally available
for disclosure. Recipients are responsible for
ensuring confidentiality when disclosure is
not required. In accordance with the
Paperwork Reduction Act, HUD may not
conduct or sponsor, and a person is not
required to respond to, a collection of
information unless the collection displays a
currently valid OMB control number.
1. Definitions
Act—The United Stated Housing Act
of 1937 (42 U.S.C. 1437, et al.), as
amended.
Annual Contributions Contract
(ACC)—This agreement between HUD
and the HA which establishes the basic
terms and conditions for the HA’s
public housing grant program.
Consolidated Annual Contributions
Contract (consolidated ACC or CACC)—
HUD’s annual Grant Funding Exhibits to
the ACC, which together with the ACC,
constitute the annual grant agreement
for the HA’s public housing program.
Cooperation Agreement—
Agreement(s) prescribed by HUD for
execution by the HA and the local
governing body relative to the
cooperation of the local governing body
in the development and operation of the
Project(s) and the obligation of the HA
for payments in lieu of taxes (PILOT).
Fiscal Year—The HA fiscal year.
Grant Funding Exhibit—Exhibits to
the ACC, in a form prescribed by HUD,
reflecting HUD’s estimate of Operating
Fund and Capital Fund grant funding or
other public housing grant funding for
which the HA is eligible.
Housing Agency (HA)—The entity
that meets the statutory definition set
forth under the Act, and which is
subject to the CACC.
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HUD—The U.S. Department of
Housing and Urban Development.
Mixed-Finance—Development or
modernization of public housing units
where the public housing units are
owned in whole or in party by an entity
other than a PHA (i.e., Owner-Entity).
Operating Costs (Operating
Expenditures or Operating Expenses)—
Costs incurred by the HA for the
necessary administration, operation and
maintenance of a public housing
Project; and which may be charged
against Operating Receipts in
accordance with the CACC and HUD
requirements. Except as allowed by
HUD, such costs do not include: any
costs, expenses, expenditures, or
charges incurred as part of the
development or modernization of a
public housing Project.
Operating Receipts—All rents,
revenues, income, and receipts accruing
from, out of, generated by, or in
connection with the ownership or
operation of public housing, including
grant funds received pursuant to HUD
Requirements and is not limited to
income from fees for services
performed, the use or rental of real or
personal property acquired with grant
funds, the sale of commodities or items
fabricated under the grant, license fees
and royalties on patents and copyrights,
and principal and interest on loans
made with grant funds. Operating
Receipts shall not include any funds
received for the development or
modernization of a Project; annual
contributions pledged for payment of
bonds or notes; proceeds from the
disposition of real property; or rebates,
credits, discounts and interest.
Interest on the Operating Receipts
(including the investment of Operating
Receipts) constitutes Operating
Receipts.
Operating Reserve—The cumulative
amount by which Operating Receipts
have exceeded Operating Costs.
Owner Entity—An entity, including
the HA, that owns public housing units
in a mixed finance project.
Project (Public Housing Project)—
Low-income housing, developed,
acquired, or assisted by HUD under the
Act, and the improvement of such
housing, and necessary appurtenances
thereto. The term includes all real and
personal property, tangible and
intangible, that is acquired or held by a
HA in connection with a Project covered
under the CACC. The term does not
include housing under section 8 of the
Act.
Program (Public Housing program)—
The HA’s public housing grant program.
Program Receipts—Program Receipts
shall mean Operating Receipts and any
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other funds received by the HA for the
development, modernization, sale or
transfer of Public Housing Projects.
Subject to HUD Requirements, as
defined in Paragraph 3, interest on the
Program Receipts (including the
investment of program receipts)
constitutes Program Receipts. Program
Receipts shall only be used to pay for
public housing program expenditures,
unless otherwise allowed by HUD
Requirements.
Public Housing—The term shall
include Public Housing Projects, as well
as all other real and personal property,
tangible and intangible, which is
acquired, or held by, the HA in
connection with its public housing
program covered under a CACC.
Replacement Reserve Account—An
account established by the HA, as
approved by HUD, that may be used to
fund any of the eligible capital activities
outlined in the HA’s Capital Fund 5
Year Action Plan as approved by HUD.
2. Mission of HUD and HA
a. HUD shall administer its Public
Housing Program for the provision of
decent, safe, and sanitary housing to
eligible families in accordance with the
CACC and all applicable HUD
Requirements. HUD shall provide
maximum responsibility and flexibility
to HAs in making administrative
decisions within all applicable statutes,
executive orders, regulations and this
ACC. HUD shall provide annual
contributions, in the form of grants, to
the HA in accordance with all
applicable statutes, executive orders,
regulations, and the CACC.
b. The HA shall use Program Receipts
to provide decent, safe, and sanitary
housing for eligible families in
compliance with the Act and all HUD
requirements. HA shall at all times
develop and operate Public Housing
Projects in a manner that promotes
serviceability, economy, efficiency, and
stability of the Projects, and the
economic and social well-being of the
tenants.
c. Except as otherwise provide by law,
the HA shall develop, modernize and
operate all Projects covered by the
CACC, in accordance with HUD
Requirements. The HA shall also ensure
compliance with such requirements by
any Owner Entity, contractor or
subcontractor engaged in the
development or operation of a Project
covered under the CACC.
3. HUD Requirements
Except as otherwise provided by law,
the HA must comply with the following
‘‘HUD Requirements,’’ including all
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such requirements as amended from
time to time:
a. The Act;
b. Regulations at Title 2 of the Code
of Federal Regulations, and regulations
issued by HUD at Title 24 of the Code
of Federal Regulations);
c. Other Federal statutes (including
appropriations acts), executive orders
and regulatory requirements; and
d. HUD-issued notices, and HUDrequired forms, or agreements.
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4. Cooperation Agreement(s)
During the development and
operation of the Project(s), the HA shall
perform and comply with all applicable
provisions of a Cooperation Agreement
in the form prescribed by HUD,
including the making of PILOT
provided therein (or such lesser amount
as may be prescribed by State law or
agreed to by the local governing body);
and shall at all times preserve and
enforce its rights thereunder, and shall
not terminate or amend the Cooperation
Agreement(s) without the prior written
approval of HUD.
5. Declaration of Restrictive Covenants
a. Record of Obligation. Upon the
acquisition, development, or assistance
of any real property with funds covered
by the CACC, the HA shall execute and
file for record against the Project and/or
the owner’s leasehold interest an
instrument (which shall be in the form
of a declaration of trust, declaration of
restrictive covenant, or such other
document as approved or prescribed by
HUD), confirming and further
evidencing, but not limited to, (1) the
obligation of the HA not to convey or
encumber the Project except as
expressly authorized in the CACC, (2)
the obligation of the HA to develop,
maintain and operate such Project in
compliance with the CACC and HUD
Requirements.
1. Such instrument and all
amendments shall be duly recorded or
filed for record to give public notice of
their contents and to protect the rights
and interests of HUD.
2. The HA shall promptly furnish
HUD with appropriate evidence of such
recording or filing. From time to time,
as additional real property is acquired,
assisted, or disposed of (or removed
from the public housing program) by the
HA in connection with its Public
Housing Program, the HA shall
promptly amend such instrument to
incorporate all such real property and
shall record the instrument, as
amended. The declaration shall provide
further that it may not be modified,
amended or released without the prior
written approval of HUD. The HA shall
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promptly furnish HUD with appropriate
evidence of such recording or filing.
b. Mixed-Financed Projects. The HA
shall require the Owner Entity to
execute and file for record against the
Project, prior to the recordation of any
other encumbrance, a declaration in the
form approved by HUD.
1. The declaration shall confirm and
evidence the Owner Entity’s obligation
during the term of CACC covering the
Project units and throughout such
further period when such approval may
be required by law as then in effect, to
develop, maintain and operate the
Project units in compliance with the
HUD Requirements. Such declaration
and all amendments shall be duly
recorded or filed for record to give
public notice of their contents and to
protect the rights and interests of HUD.
2. The declaration shall provide
further that it may not be modified,
amended or released without the prior
written approval of HUD. The HA shall
promptly furnish HUD with appropriate
evidence of such recording or filing.
6. Disposition and Encumbrances
a. Covenant Against Disposition and
Encumbrances. The HA shall not
demolish or dispose of any Project, or
portion thereof, other than in
accordance with the terms of the CACC
and applicable HUD Requirements. The
HA shall not encumber any Project, or
portion thereof, without the prior
written approval of HUD. The HA shall
not pledge any assets of any Project
covered by the CACC as collateral for
any loan or other obligation, without the
prior written approval of HUD.
However, prior written approval by
HUD is not required for the HA to enter
into dwelling leases with eligible
families for dwelling units in the
Projects covered by the CACC, and such
other normal uses associated with the
operation of the Project(s).
b. Mixed-Finance Projects. Without
the prior written approval of HUD, no
transfer, conveyance, or assignment
shall be made: (i) Of any interest of a
managing member, general partner, or
controlling shareholder (any such
interest being referred to as a
‘‘Controlling Interest’’) of the Owner
Entity; (ii) of a Controlling Interest in
any entity which has a Controlling
Interest in the Owner Entity; or, (iii)
prior to the payment in full of all equity
contributions described in the approved
evidentiary documents, any other
interest in the Owner Entity, or in any
partner or member thereof.
1. Notwithstanding the foregoing,
HUD consent is not required where a
business organization that has a limited
interest (non-controlling and non-
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managing) in the Owner Entity transfers
a non-controlling and non-managing
interest in the business organization,
provided that: (i) The Owner Entity
provides HUD with written notice of
such transfer; (ii) the transfer of such
interest does not result in an entity
obtaining a Controlling Interest or
managing interest following the transfer;
and, (iii) the Owner Entity certifies to
HUD that the new owner of the limited
interest remains obligated to fund its
equity contribution in accordance with
the terms of the HUD-approved
organizational documents of the Owner
Entity.
2. HUD will not unreasonably
withhold, delay, or condition a request
by the Owner Entity for HUD’s consent
to an internal reorganization of the
corporate or partnership structure of the
Owner Entity or any of the partners,
members or stockholders of the Owner
Entity.
3. Notwithstanding the foregoing, the
prior approval of HUD and the HA will
not be required for the exercise by any
investor partner of the Owner Entity
(‘‘Investor’’) of its right pursuant to the
Amended and Restated Limited
Partnership Agreement of the Owner
Entity (‘‘Partnership Agreement’’) to
remove the general partner of the Owner
Entity and appoint the Investor or its
Affiliate (i.e., any entity which directly
or indirectly controls, or is controlled
by, or is under common control with,
the specified entity) as an interim
general partner of the Owner Entity so
long as the Investor gives prompt
written notice to HUD of such removal
and appointment (‘‘Removal Notice’’);
provided that HUD and the HA consent
will be required for the appointment of
such interim general partner to extend
beyond a ninety (90) day period and for
the appointment of any entity
(including the Investor of an affiliate
thereof) as the permanent replacement
general partner. Such 90-day period will
commence on the date of the Removal
Notice (‘‘Interim Replacement Period’’).
With the prior written approval of HUD
and the HA, the Interim Replacement
Period may be extended for an
additional 90 days to allow the
substitute general partner of the Owner
Entity to find a replacement general
partner acceptable to HUD and all other
parties, provided that prior to the
expiration of such additional 90-day
period, the substitute general partner
demonstrates that the Investor is
continuing to fund (or has already
funded) capital as required under the
Partnership Agreement and that the
Project continues to be operated in a
manner consistent with HUD
Requirements.
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4. The consent of HUD and the HA
will not be required for (i) any exercise
by the Investor of its right to require the
repurchase of its limited partnership
interests as against the General Partner,
any guarantor, and/or any affiliate
thereof (‘‘Repurchaser’’) pursuant to the
Partnership Agreement, provided that
the Investor provides prompt written
notice to HUD and the HA at the time
of its exercise of such right, and further
provided that any resale of the limited
partnership interests by the Repurchaser
will be subject to the approval of HUD
and the HA, such approval not to be
unreasonably withheld, delayed or
conditioned, or (ii) the exercise by the
HA (or any approved Affiliate thereof)
of its rights to acquire interests or the
Property pursuant to the Right of First
Refusal and Purchase Option Agreement
of approximately even date herewith.
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7. Insurance Requirements
a. Except as otherwise provided by
HUD, and in accordance with the CACC
and HUD regulations and requirements,
the HA shall procure adequate
insurance to protect the HA from
financial loss resulting from various
hazards.
b. Mandatory Insurance Coverage.
The following types of insurance
coverage are required:
1. Commercial Property. Each policy
must be written with a blanket limit, on
a replacement cost basis, and with an
agreed value clause eliminating any
coinsurance provision.
2. Commercial General Liability.
3. Workers Compensation and
Employers Liability.
4. Owned and Non-Owned
Automobile Liability.
5. Theft, Disappearance, and
Destruction, only if the amount of cash
and checks on hand at any one time
exceeds the amount prescribed by HUD.
6. Employee Dishonesty.
7. Boiler and Machinery if steam
boilers have been installed.
8. Flood Insurance for property
located in a flood plain, as determined
in the Federal Government’s National
Flood Insurance Program.
9. Lead-Based Paint Liability for HAs
undergoing lead-based paint testing and
abatement.
10. Fidelity Bond Coverage. The HA
must carry adequate fidelity bond
coverage, as required by HUD, of its
officers, agents, or employees handling
cash or authorized to sign checks.
c. Optional Insurance Coverage. The
following types of insurance coverage
are recommended and should be
purchased when the HA has exposure to
these covered risks:
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1. Boiler and Machinery (equipment
breakdown).
2. Directors and Officers or Public
Officials Liability.
3. Law Enforcement Liability when
the Commercial General Liability
insurer has excluded coverage.
d. Authorized Insurance Companies.
Insurance must be purchased from an
insurance company or other entity that
is licensed or duly authorized to write
insurance in the State where the HA is
located.
e. Certificates of Insurance. At each
renewal, the HA shall promptly have
certificates of insurance submitted by
the insurers to HUD describing the types
of coverage, limits of insurance, policy
numbers, and inception and expiration
dates.
f. Waivers and Self-Insurance Funds.
Requests for waivers of this section not
to purchase any form of required
insurance, or to establish a selfinsurance fund in lieu of purchasing
insurance, must be submitted in writing
to HUD for approval and include
specific justification and risk analysis.
g. Restoration. Unless the HA has
received prior written approval of HUD
to the contrary, the HA shall, to the
extent that insurance proceeds permit,
promptly restore, reconstruct, and/or
repair any damaged or destroyed
property of a Project, in accordance with
all HUD Requirements.
h. Mixed Finance Projects. The HA, to
the extent that insurance proceeds or
condemnation award proceeds
(‘‘Proceeds’’) permit, shall promptly
cause the restoration, reconstruction,
and/or repair (‘‘Restoration’’) of any
damaged or destroyed property of the
Project. The Owner Entity, to the extent
Proceeds and other funds (if any are
made available by the Owner Entity or
the HA) permit, and to the extent
Restoration is feasible, shall promptly
cause the Restoration of ay damaged or
destroyed property of the Project. Each
mortgagee must permit Restoration if
feasible (rather than require application
of Proceeds to reduction of debt). If
Restoration is not feasible, then the
following requirements, which shall be
incorporated into the Regulatory and
Operating Agreement (or other such
agreement) between the HA and the
Owner Entity (and ground lease, if
applicable), and with which all
mortgage documents encumbering the
Project shall be consistent, shall apply:
1. Partial loss. In the event that less
than all of the dwelling units in the
Project are damaged, destroyed or lost as
a result of casualty or condemnation,
the following provisions shall apply:
(A) If the Proceeds are less than, or
equal to, the sum of the existing
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outstanding mortgage debt secured by
the Project, excluding any such debt
held by the HA to secure a loan of
Capital Funds, other public housing
development funds, or Program Receipts
for the Project (‘‘Existing Mortgages’’),
and such Proceeds are applied to
reduction of Existing Mortgages, the
number of Project units in the Project
shall remain the number required
immediately prior to the occurrence of
the casualty or condemnation.
(B) If the Proceeds are less than, or
equal to, the sum of the Existing
Mortgages but, at the election of the
holders of the Existing Mortgages, are
distributed among the holders thereof
and the HA, by application first to
reduction of the Existing Mortgages in
an aggregate amount not to exceed the
proportion of the Proceeds equal to the
ratio of non-Project units to all dwelling
units in the Project, and then by
payment to the HA of the balance of the
Proceeds; then the percentage of units in
the Project (and the percentage of
bedrooms contained therein) which
shall be Project units shall remain the
same as required immediately prior to
the casualty or condemnation.
(C) If the Proceeds are more than
sufficient to pay off the Existing
Mortgages, Proceeds in excess of the
aggregate amount of the Existing
Mortgages shall be applied in the
following order of priority:
(i). To reduce any outstanding
indebtedness to the HA for a loan of
Capital Funds, other public housing
development funds, or Program
Receipts;
(ii). To reimburse the HA for any
Capital Funds, HOPE VI Grant Funds or
other public housing funds disbursed to
the Owner Entity for development of the
Project other than by loan;
(iii). To the HA an amount equal to
the total ‘‘cost of construction’’
attributable to the Project units, less the
sum of (A) and (B) above; and
(iv). To the Owner Entity.
(D) Following application of Proceeds
in accordance with this subparagraph
the percentage of dwelling units in the
Project which shall be Project units (and
the percentage of bedrooms contained
therein) shall remain the same as
required immediately prior to the
casualty or condemnation; provided,
however, that to the extent that the
payment to the HA pursuant to clauses
(A), (B), and (C) shall be less than the
‘‘cost of construction’’ attributable to the
Project units, the number of remaining
Project units shall be increased by a
number of units (rounded down) equal
to (1) the amount by which such
payments to the HA shall be less than
the cost of construction, divided by (2)
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the quotient of (x) cost of construction,
divided by (y) the number of Project
units immediately prior to the
occurrence of the casualty or
condemnation.
2. Total loss. In the event that all of
the units in the Project are damaged,
destroyed or lost as a result of casualty
or condemnation, the following
provisions shall apply:
(A) The Proceeds shall be used to
reduce the amount of the outstanding
indebtedness of any mortgage(s) secured
by the Project, including any
mortgage(s) held by the HA, based on
the priority recorded order of such
mortgage(s);
(B) If the Proceeds are more than
sufficient to pay off the amount of the
outstanding indebtedness of all
mortgage(s) secured by the Project,
including any mortgage(s) held by the
HA, then the amount of the Proceeds in
excess of such indebtedness shall be
applied in the following order of
priority:
(i). To reduce any outstanding
indebtedness to the HA for an
unsecured loan of Capital Funds, or
other HUD Development Funds or
Program Receipts;
(ii). To reimburse the HA for any
Capital Funds, other public housing
funds or Program Receipts disbursed to
the Owner Entity for development of the
Project other than by loan;
(iii). To the HA an amount equal to
the total ‘‘cost of construction’’
attributable to the Project units, less the
sum of (a) and (b) above, and
(iv). To the Owner Entity.
For the purposes of this subsection,
the term ‘‘cost of construction’’ shall
mean the total cost of developing the
Project, less land acquisition costs, if
any, and non-capitalized soft costs.
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8. Employer Requirements
The HA shall comply with all State
and Federal laws applicable to
employee benefit plans and other
conditions of employment.
9. Accounts, Records, and Government
Access
a. The HA shall maintain complete
and accurate books of account for the
Projects of the HA in such a manner as
to permit the preparation of statements
and reports in accordance with HUD
Requirements, and to permit timely and
effective audit.
b. The HA shall furnish HUD such
financial and program data, reports,
records, statements, and documents at
such times, in such form, and
accompanied by such supporting data as
required by HUD. The HA is required to
submit information to, or access HUD’s
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17:14 Dec 26, 2018
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system of records (SOR). HUD’s SOR are
subject to the Privacy Act, the Freedom
of Information Act, and other such
applicable law. The HA shall not
release, without prior HUD approval,
any information contained in such
records.
c. The United States Government,
including HUD and the Comptroller
General, and its duly authorized
representatives, shall have full and free
access to all HA offices and facilities,
and to all books, documents, and
records of the HA relevant to the
administration of the Projects under this
CACC, including the right to audit and
make copies.
d. The HA shall engage and pay an
independent public accountant to
conduct audits that are required by HUD
Requirements. The cost of audits
required by HUD Requirements may be
charged against Program Receipts.
e. The foregoing (a)–(d) shall apply to
any records and/or any facilities
operated or maintained by an agent or
independent contractor for the HA that
assists in fulfilling any obligation under
this CACC. Any such agent or
independent contractor that denies or
unduly limits HUD or its duly
authorized representatives from
reviewing records or denies or unduly
limits HUD or its duly authorized
representative entry to an office or
facility, or prevents access to any office
or facility, is a denial by the HA.
10. Grant Funding
a. HUD shall make annual
contributions in the form of grant
funding in the amounts provided for the
Public Housing Program as stated in the
Grant Funding Exhibits.
b. Grant funding is subject to each
year’s annual appropriations act.
Appropriations may be reduced by HUD
as directed by the Congress in an
appropriations act. Grant funding may
be reduced by an offset of a HA’s
funding, pursuant to a formula
prescribed by Congress in an
appropriations act. Grant funding may
also be reduced or offset pursuant to a
formula devised by HUD if Congress has
invested HUD with the discretion to
devise and implement a funding
formula in the appropriations act. Grant
funding may also be terminated,
recaptured, withheld, suspended,
reduced or such other actions taken in
accordance with HUD Requirements.
c. Grant funding is calculated by
applying applicable regulations in Title
24 of the Code of Federal Regulations
unless Congress provides otherwise.
HUD will provide grant funding to the
HA in accordance with HUD
Requirements, unless modified by an
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appropriations act. The appropriations
act, not the Title 24 of the Code of
Federal Regulations, will always take
precedence in formulating each year’s
grant funding. Each year’s funding
amounts and related information will be
provided to the HA. Any change in
funding or requirements to a Grant
Funding Exhibit will be provided in a
written notice to the HA.
d. The HUD notice of a revised Grant
Funding Exhibit(s) constitutes an
amendment of the CACC.
11. Depository
a. The HA shall deposit and invest
Program Receipts and investment
securities received by or held for the
account of the HA in connection with
the development, operation and
improvement of the Projects under a
CACC with HUD in accordance with the
terms of the General Depository
Agreement(s) and all investment
requirements provided in HUD and
Treasury Notices and Regulations. The
General Depository Agreement shall be
in the form prescribed by HUD and
must be executed by the HA and the
depository. Immediately upon the
execution of any General Depository
Agreement, the HA shall furnish to HUD
such executed or conformed copies
thereof as HUD may require. A General
Depository Agreement shall not be
terminated except after 30 days’ notice
to HUD.
b. The HA shall maintain records that
identify the source and application of
funds in such a manner as to allow HUD
to determine that all funds are and have
been expended in accordance with HUD
Requirements. The HA may only use
Program Receipts for: (1) The payment
of the costs of development and
operation of the Projects under the
CACC with HUD; (2) the purchase of
investment securities as approved by
HUD; and (3) such other purposes as
may be specifically approved by HUD.
Except as approved by HUD, and
consistent with HUD Requirements,
grant funds are not fungible.
12. Termination of a Project
If any Project covered by this ACC is
terminated, all related Program Receipts
shall, in accordance with the terms of
this CACC and HUD Requirements,
become part of another Project
administered by the HA. If no Public
Housing Project(s) exists, the remaining
personal and real property, and Program
Receipts, shall be distributed (including
the possible remittance to HUD) as
directed by HUD, consistent with HUD
Requirements.
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13. Notices, Defaults, Remedies
a. Notice. Any notice required or
permitted to be given under this ACC or
CACC shall be in writing, signed by a
duly authorized official, and addressed,
if to the HA, to the principal office of
the HA, and if to HUD, to the HUD
office with jurisdiction over the HA,
unless otherwise directed by regulation
or other HUD Requirements.
b. Substantial Default. A substantial
default is a serious and material
violation of any one or more of the
covenants contained in the CACC.
Events of substantial default shall
include, but shall not be limited to, any
of the following occurrences: (1) Failure
to maintain and operate the Project(s)
under this ACC in a decent, safe, and
sanitary manner; (2) the disposition or
encumbrance of any Project or portion
thereof without HUD approval; (3)
failure of the HA to comply with any
civil rights requirements applicable to
the HA and the Project(s); (4)
abandonment of any Project by the HA,
or if the powers of the HA to operate the
public housing program in accordance
with the provisions of this ACC are
curtailed or limited to an extent that
will prevent the accomplishment of the
objectives of this ACC; (5) failure to
carry out modernization or development
in a timely, efficient and effective
manner; and (6) termination of tax
exemption (either real or personal
property) on behalf of a Project covered
under the CACC.
1. Delivery of a notice of substantial
default shall be required before the
exercise of any remedy permitted under
this ACC. Such notice shall: (1) Identify
the specific covenants, statutes,
executive orders, or regulations alleged
to have been violated; (2) identify the
specific events, actions, failure to act, or
conditions that constitute the alleged
substantial default; and (3) provide a
specific timeframe for the HA to cure
the substantial default, taking into
consideration the nature of the default.
2. Except in cases involving clear and
apparent fraud, serious criminal
behavior, or emergency conditions that
pose an imminent threat to life, health,
or safety, the HA shall have the right to
appeal any such notice received from
the HUD office with jurisdiction over
the HA. Such informal appeals shall be
in writing and shall be submitted within
ten (10) working days from the date of
the HA’s receipt of such notice. Appeals
of the action of a HUD Office shall be
made to the Assistant Secretary for
Public and Indian Housing, or such
other official as shall be a successor
thereto.
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c. Remedies. Upon the occurrence of
a substantial default, or the expiration of
any applicable cure period provided by
HUD, the HA shall: (1) Convey to HUD
title to the Project(s) as demanded by
HUD if, in the determination of HUD
(which determination shall be final and
conclusive), such conveyance of title is
necessary to achieve the purposes of the
Act; or (2) deliver possession and
control of the Project(s) to HUD.
d. Additional Remedies. Nothing
contained in this ACC shall prohibit or
limit HUD from the exercise of any
other right or remedy existing under
applicable law, or available at equity.
HUD’s exercise or non-exercise of any
right or remedy under this ACC or
CACC shall not be construed as a waiver
of HUD’s right to exercise that or any
other right or remedy at any time.
e. If HUD shall acquire title to, or
possession of the Project(s), HUD shall
re-convey or redeliver possession of the
Project(s) to the HA, or to any entity
recognized by HUD: (1) Upon a
determination by HUD that the
Substantial Default has been cured and
that the Project(s) will thereafter be
operated in accordance with the terms
of the CACC; or (2) after the termination
of HUD’s obligation to make payments,
unless there are any obligations or
covenants of the HA to HUD that are
then in default.
f. Termination for cause. HUD may at
any time by notice to the HA declare
this ACC or the CACC terminated with
respect to any Project if:
1. The HA has made any fraudulent
or willful misrepresentation of any
material fact in any document or data
submitted to HUD as a basis for the
CACC or as an inducement to HUD to
enter into the CACC; or
2. A substantial default exists in
connection with any of the Projects.
g. Mixed Finance Projects. In addition
to the above the following shall apply to
Mixed-Finance Projects:
1. Each of the following shall also
constitute an event of substantial default
under the CACC:
(A) The drawdown of Capital Funds,
development grant funds, or other
public housing funds, as applicable, in
amounts greater than authorized, or in
amounts greater than allowed by HUD
Requirements;
(B) Breach of any approved
performance schedule; or
(C) Serious and material breach of any
terms, covenants, agreements,
provisions, or warranties of:
(i). The HA which, in the opinion of
HUD, adversely affects the performance
obligations of the HA, the Owner Entity,
or other participating parties, and
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66735
(ii). The Owner Entity, partner, or
other participating party, made in any
agreement submitted to HUD as part of
the evidentiary materials which, in the
opinion of HUD, adversely affects the
performance obligations of the HA, the
Owner Entity, partner, or other
participating parties.
2. HUD shall permit an Owner Entity,
partner, or lender to participate, and
may in its discretion, permit any other
participating party to participate, in any
appeal from a notice of substantial
default delivered by HUD to the HA
pursuant to this ACC with respect to a
Project.
3. During the term of any agreement
between the HA and Owner Entity, and
so long as the Owner Entity shall not be
in default of its obligations thereunder,
HUD agrees that in the event of the
substantial default by the HA under the
CACC, HUD shall exercise any remedies
or sanctions authorized under the
CACC, including taking possession of
the HA’s interest in the Mixed Finance
Project, in such manner as not to disturb
the Owner Entity’s rights under any
such agreements.
4. Any rights of the mortgagee under
a Note and First Mortgage (if any),
including the right to exercise all
remedies specified therein, shall not be
subordinate to any other obligations
imposed upon the Project, except as
such obligations (1) shall be reflected in
the Declaration of Restrictive Covenants,
as required by the CACC, or a
memorandum of lease (if applicable),
and/or any other recorded instrument
which shall have been recorded prior to
the lien of the First Mortgage, or (2)
shall be the subject of a subordination
agreement with such mortgagee.
14. HUD in Possession of Project(s)
a. During any period in which HUD
holds title to or possession of the
Projects after a substantial default by the
HA, HUD shall develop and/or operate
such Project(s) as nearly as practicable
in accordance with the provisions of the
CACC.
b. During any such period, HUD may,
in the name and on behalf of the HA,
or in its own name and on its own
behalf (as HUD shall solely determine),
exercise any and all rights of the HA
under the CACC, and perform any and
all obligations of the HA under the
CACC. Nothing herein shall be deemed
to make the action(s) or omission(s) of
the HA attributable to HUD.
15. Conflict of Interest
a. In addition to any other applicable
conflict of interest requirements,
including those provided herein, HAs
must also maintain written standards of
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conduct covering conflicts of interest
and governing the performance of its
Board Member, executives, and
employees engaged in the
administration and operation of Projects
covered by the CACC. A conflict of
interest would arise when the employee,
officer, or agent, any member of his or
her immediate family, his or her
partner, or an organization which
employs (or is about to employ any of
the parties indicated herein), has a
financial or other interest in an
organization considered for a contract
with the HA, an RMC, other resident
organization of the HA; or otherwise
does business with, a tenant
organization or tenants of the HA. The
HA must disclose in writing any
potential) conflict of interest to HUD.
b. The HA, its contractors and
subcontractors shall not enter into, or be
a party to, any contract, subcontract, or
arrangement in connection with a
Project under the CACC in which any of
the following classes of people has an
interest, direct or indirect, during his or
her tenure or for one year thereafter:
1. Any present or former member or
officer of the governing body of the HA,
or any member of such individual’s
immediate family. There shall be
excepted from this prohibition any
present or former tenant commissioner
who does not serve on the governing
body of a resident corporation, and who
otherwise does not occupy a
policymaking position with the resident
corporation, the HA or a related
business entity.
2. Any employee of the HA who
formulates policy or who influences
decisions with respect to the Project(s),
or any member of the employee’s
immediate family, or the employee’s
partner.
3. Any public official, member of the
local governing body, or State or local
legislator, or any member of such
individual’s immediate family, who
exercises functions or responsibilities
with respect to the Project(s) or the HA.
4. Any member of these classes of
persons must disclose the member’s
interest or prospective interest to the
HA.
5. The requirements of this subsection
may be waived by HUD for good cause,
if the prohibited contract, subcontract or
arrangement is otherwise permitted
under State and local law. No person for
whom a waiver is requested may
exercise responsibilities or functions
with respect to the contract, subcontract
or arrangement to which the waiver
pertains.
6. The provisions of this subsection
(b) shall not apply to the General
Depository Agreement entered into with
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an institution regulated by a Federal
agency, or to utility service for which
the rates are fixed or controlled by a
State or local agency.
c. The HA shall not hire an employee
in connection with a Project under this
ACC if the prospective employee is an
immediate family member of any person
belonging to one of the following
classes:
1. Any present or former member or
officer of the governing body of the HA.
There shall be excepted from this
prohibition any former tenant
commissioner who does not serve on
the governing body of a resident
corporation, and who does not occupy
a policymaking position with the HA.
2. Any employee of the HA who
formulates policy or who influences
decisions with respect to the Project(s).
3. Any public official, member of the
local governing body, or State or local
legislator, who exercises functions or
responsibilities with respect to the
Project(s) or the HA.
d. The prohibition referred to in
subsection (c) shall remain in effect
throughout the class member’s tenure
and for one year thereafter.
e. A class member shall disclose to
the HA the member’s familial
relationship to any prospective
employee.
f. For purposes of this section, the
term ‘‘immediate family member’’
means: the spouse, mother, father,
mother-in-law, father-in-law, brother,
sister, brother-in-law, sister-in-law,
daughter-in-law, son-in-law or child of
a covered class member (whether
related as a full blood relative or
adoption, or as a ‘‘half’’ or ‘‘step’’
relative, e.g., a half-brother or
stepchild).
1. The officers, employees, and agents
of the HA must neither solicit nor
accept gratuities, favors, or anything of
monetary value from residents residing
in Projects or participating in programs
covered by the CACC. However, HAs
may set standards for situations in
which the financial interest is not
substantial or the gift is an unsolicited
item of nominal value. The standards of
conduct must provide for disciplinary
actions to be applied for violations of
such standards by officers, employees,
or agents of the HA.
2. If the HA has a parent, affiliate, or
subsidiary organization that is not a
state or local government, the HA must
also maintain equivalent written
standards of conduct covering
organizational conflicts of interest.
‘‘Organizational conflicts of interest’’
means that because of relationships
with a parent company, affiliate, or
subsidiary organization, the HA is
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unable or appears to be unable to be
impartial in conducting a procurement
action involving a related organization;
or in administering or operating a
Project involving a related organization.
g. Consistent with this section and
HUD Requirements, the HA shall ensure
that tenants served directly by the HA
serve on the governing body of the HA.
16. Civil Rights and Employment
Requirements
a. The HA shall comply with all
statutory, regulatory, and executive
order requirements pertaining to civil
rights, equal opportunity, and
nondiscrimination, as those
requirements now exist, or as they may
be enacted, promulgated, or amended
from time to time. These requirements
currently include, but are not be limited
to, compliance with the following
authorities: Title VI of the Civil Rights
Act of 1964 (42 U.S.C. 2000d; 24 CFR
part 1); the Fair Housing Act (42 U.S.C.
3601–3619; 24 CFR part 100); section
504 of the Rehabilitation Act of 1973 (29
U.S.C. 794; 24 CFR part 8); (the Age
Discrimination Act of 1975 (42 U.S.C.
6101™6107; 24 CFR part 146); the
Americans with Disabilities Act (Pub. L.
101–336, approved July 26, 1990; 28
CFR part 35); Executive Order 11063 on
Equal Opportunity in Housing (24 CFR
part 107); Executive Order 11246 on
Equal Employment Opportunity, as
amended by Executive Order 11375 (41
CFR part 60); and Executive Order
12892 on Affirmatively Furthering Fair
Housing.
b. In connection with the
development or operation of any
Project, the HA shall not discriminate
against any employee or applicant for
employment because of race, color,
religion, sex, disability, age, or national
origin. The HA shall take affirmative
action to ensure that applicants are
employed, and that employees are
treated during employment, without
regard to race, color, religion, sex,
disability, age, or national origin. Such
action shall include, but not be limited
to, the following: employment,
upgrading, demotion, or transfer;
recruitment or recruitment advertising;
layoff or termination; rates of pay or
other forms of compensation; and
selection for training, including
apprenticeship. The HA shall insert the
foregoing provision (modified only to
show the particular contractual
relationship) in all its contracts in
connection with the development or
operation of any Project, except
contracts for standard commercial
supplies or raw materials and contracts
referred to in subsection (C) of this
section, and shall require all contractors
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Federal Register / Vol. 83, No. 247 / Thursday, December 27, 2018 / Notices
to insert a similar provision in all
subcontracts, except subcontracts for
standard commercial supplies or raw
materials. The HA shall post at the
Projects, in conspicuous places
available to employees and applicants
for employment, notices to be provided
by HUD setting forth the provisions of
this nondiscriminatory clause.
c. The HA shall incorporate the
language required by Executive Order
11246, codified at 41 CFR 60–1.4(b) (or
any successor provision), into any
contract for construction work, or any
modification thereof, which is paid for
in whole or in part with funds obtained
under this ACC. In addition, the HA
agrees that it will be bound by the equal
employment opportunity provisions set
forth at 41 CFR 60–1.4(b) (or any
successor provision) with respect to its
own employment practices when it uses
its own staff (force account) to carry out
Federally assisted construction work.
d. The HA shall, consistent with 12
U.S.C. 1701u, codified at 24 CFR 135.1
(or any successor provision), provide
economic opportunities for Section 3
residents and Section 3 business
concerns. The HA may, consistent with
applicable law and regulation, utilize
work requirements when and where
appropriate.
17. Members or Delegates to Congress
No member of or delegate to the
Congress of the United States of
America or resident commissioner shall
be admitted to any share or part of this
ACC or to any benefits which may arise
from it. (As used in this section, the
term ‘‘resident commissioner’’ refers to
an individual appointed to oversee a
territory or possession of the United
States of America, e.g., Guam.)
18. Rights of Third Parties
Nothing in this ACC shall be
construed as creating any right of any
third party to enforce any provision of
the ACC, the CACC, or to assert any
claim against HUD or the HA.
khammond on DSK30JT082PROD with NOTICES
19. Waiver or Amendment
Any right or remedy that HUD may
have under this ACC may be waived in
writing by HUD without the execution
of a new or supplemental agreement, or
by mutual agreement of the parties to
this ACC. This agreement may be
Information collection
Number of
respondents
amended in writing: Provided that, none
of the provisions of this ACC may be
modified or amended in a manner that
impairs HUD’s obligation to pay any
annual contributions that have been
pledged as security for any obligations
of the HA.
[FR Doc. 2018–28095 Filed 12–26–18; 8:45 am]
BILLING CODE 4210–67–P
DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT
[Docket No. FR–7006–N–19]
60-Day Notice of Proposed Information
Collection: Public Housing Mortgage
Program and Section 30
Office of the Assistant
Secretary for Public and Indian
Housing, HUD.
ACTION: Notice.
AGENCY:
HUD is seeking approval from
the Office of Management and Budget
(OMB) for the information collection
described below. In accordance with the
Paperwork Reduction Act, HUD is
requesting comment from all interested
parties on the proposed collection of
information. The purpose of this notice
is to allow for 60 days of public
comment.
SUMMARY:
Comments Due Date: February
25, 2019.
ADDRESSES: Interested persons are
invited to submit comments regarding
this proposal. Comments should refer to
the proposal by name and/or OMB
Control Number and should be sent to:
Colette Pollard, Reports Management
Officer, QDAM, Department of Housing
and Urban Development, 451 7th Street
SW, Room 4176, Washington, DC
20410–5000; telephone 202–402–3400
(this is not a toll-free number) or email
at Colette.Pollard@hud.gov for a copy of
the proposed forms or other available
information. Persons with hearing or
speech impairments may access this
number through TTY by calling the tollfree Federal Relay Service at (800) 877–
8339.
FOR FURTHER INFORMATION CONTACT:
Arlette Mussington, Office of Policy,
Programs and Legislative Initiatives,
PIH, Department of Housing and Urban
Development, 451 7th Street SW,
DATES:
Frequency of
response
Responses
per annum
Burden hour
per response
66737
(L’Enfant Plaza, Room 2206),
Washington, DC 20410; telephone 202–
402–4109, (this is not a toll-free
number). Persons with hearing or
speech impairments may access this
number via TTY by calling the Federal
Information Relay Service at (800) 877–
8339. Copies of available documents
submitted to OMB may be obtained
from Ms. Mussington.
SUPPLEMENTARY INFORMATION: This
notice informs the public that HUD is
seeking approval from OMB for the
information collection described in
Section A.
A. Overview of Information Collection
Title of Information Collection: Public
Housing Mortgage Program and Section
30.
OMB Approval Number: 2577–0265.
Type of Request: Extension of an
approved collection.
Form Number: N/A—Because federal
regulations have not been adopted for
this program, no specific forms are
required.
Description of the need for the
information and proposed use: Section
516 of the Quality Housing and Work
Responsibility Act of 1998
(QHWRA)(Pub. L. 105–276, October 21,
1998) added Section 30, Public Housing
Mortgages and Security Interest, to the
United States Housing Act of 1937 (1937
Act)(42 U.S.C. 1437z–2). Section 30
authorizes the Secretary of the
Department of Housing and Urban
Development (HUD) to approve a
Housing Authority’s (HA) request to
mortgage public housing real property
or grant a security interest in other
tangible forms of personal property if
the proceeds of the loan resulting from
the mortgage or security interest are
used for low-income housing uses.
Public Housing Agencies (PHAs) must
provide information to HUD for
approval to allow PHAs to grant a
mortgage in public housing real estate or
a security interest in some tangible form
of personal property owned by the PHA
for the purposes of securing loans or
other financing for modernization or
development of low-income housing.
Respondents (i.e. affected public):
Members of Affected Public: State, Local
or Local Government and Non-profit
organization.
Annual burden
hours
Hourly cost
per response
Annual cost
2577–0157 ...................
30
3
90
41.78
3,760
$157.65
$592,750
Total ......................
........................
........................
........................
........................
........................
........................
........................
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]]>Agencies
[Federal Register Volume 83, Number 247 (Thursday, December 27, 2018)]
[Notices]
[Pages 66729-66737]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-28095]
-----------------------------------------------------------------------
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-7006-N-15]
60-Day Notice of Proposed Information Collection: Comment
Request: Agency Information Collection Activities: Public Housing
Annual Contributions Contract for Capital and Operating Grant Funds
AGENCY: Office of the Assistant Secretary for Public and Indian
Housing, HUD.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: HUD is seeking approval from the Office of Management and
Budget (OMB) for the information and collection described below. The
public housing program provides Operating Funds and Capital Funds to
low rent projects owned and operated by public housing agencies (PHAs),
subject to the terms and conditions contained in the Annual
Contributions Contract (ACC) grant agreement. These program
requirements govern how projects are funded and operated by PHAs. HUD
has made changes and updates to its grant agreement, the Annual
Contributions Contract (ACC) (the ``New ACC''), based on current
applicable statutes and regulations. This notice is to provide PHAs
with notice of the changes and the opportunity to comment on such
changes. In accordance with the Paperwork Reduction Act, HUD is
requesting comment from all interested parties on the proposed
collection of information. The purpose of this notice is to allow for
60 days of public comment.
DATES: Comments Due Date: February 25, 2019.
ADDRESSES: Interested persons are invited to submit comments regarding
this proposal. All comments must refer to the proposal by name and OMB
Control Number. There are two methods for submitting public comments.
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 also
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 website 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 methods specified above. Again, all
submissions must refer to the docket number and title of the notice.
No Facsimiled Comments. Facsimiled (faxed) comments are not
acceptable.
Public Inspection of Public Comments. Copies of all comments
submitted are available for inspection and downloading at
www.regulations.gov. In addition, all properly submitted comments and
communications submitted to HUD will be available for public inspection
and copying between 8 a.m. and 5 p.m., weekdays, at the above address.
Due to security measures at the HUD Headquarters building, an advance
appointment to review the public comments must be scheduled by calling
the Regulations Division at 202-708-3055 (this is not a toll-free
number). Individuals with speech or hearing impairments may access this
number via TTY by calling the Federal Relay Service at 800-877-8339
(this is a toll-free number).
FOR FURTHER INFORMATION CONTACT: Arlette Mussington, Office of Policy,
Programs and Legislative Initiatives, PIH, Department of Housing and
Urban Development, 451 7th Street SW, Room 3178, Washington, DC 20410;
telephone 202-402-4109, (this is not a toll-free number). Persons with
hearing or speech impairments may access this number via TTY by calling
the Federal Information Relay Service at (800) 877-8339. Copies of
available documents submitted to OMB may be obtained from Ms.
Mussington.
SUPPLEMENTARY INFORMATION: This notice informs the public that the
Department is re-submitting the proposed information collection to OMB
for review, under the Paperwork Reduction Act of 1995 (44 U.S.C.
Chapter 35, as amended). HUD is seeking approval from OMB for the
information collection described in Section A.
A. Overview of Information Collection
Title of Information Collection: Public Housing Annual
Contributions Contract for Capital and Operating Grant Funds.\1\
---------------------------------------------------------------------------
\1\ The previous title was ``Public Housing Annual Contribution
Contract and Inventory Removal Application''.
---------------------------------------------------------------------------
OMB Approval Number: 2577-0075.
Type of Request: Revision of a currently approved collection.
Form Number: HUD-52840A; HUD-53012A; HUD-53012 B.
Description of the need for the information and proposed use: The
ACC establishes the basic terms and conditions for the PHA's public
housing programs and requires the PHA to manage and operate its public
housing properties in accordance with the United States Housing Act of
1937 (42 U.S.C. 1437 et seq.) (1937 Act) and all applicable HUD
requirements. The ACC governs the award and use of two distinct public
housing grant funds. The Capital Fund Program (CFP) provides financial
assistance in the form of grants
[[Page 66730]]
to PHAs to carry out eligible capital and management activities
authorized by Section 9(d)(1) of the 1937 Act. The Operating Fund
Program provides financial assistance in the form of grants to PHAs for
the operation and maintenance of public housing authorized by Section
9(e)(1) of the 1937 Act. Section 6 of the 1937 Act, 24 CFR 5.403, 24
CFR 905.100 (Capital Fund), and 24 CFR 990.115 (Operating Fund)
authorizes the Secretary of HUD to make annual contributions for
federal financial assistance in the form of grants to PHAs to achieve
and maintain the low income character of public housing projects. The
Secretary is required to embody the provisions for such annual grant
contributions in a grant agreement (i.e., the ACC). Additional
applicable regulations include: 24 CFR part 907 for Substantial Default
by a PHA; 2 CFR part 200 for Uniform Administrative Requirements, Cost
Principles and Audit Requirements for Federal Awards, and 24 CFR part 5
for General HUD Program Requirements.
The amendment of this notice of proposed information collection
provides PHAs with sufficient notice of the changes to the New ACC,
which was revised in order to align the agreement with existing
statutes and regulations. It combines Part A and B of the 1995 ACC and
the Mixed Finance Amendment to the 1995 ACC to streamline the grant
agreement. The New ACC also removes Section 10, Operating Budget and
Section 11, Pooling of Funds formerly in the 1995 version of ACC,
because these provisions are no longer included in 24 CFR part 990 and
thus no longer apply. Section 22, Performance of Conditions Precedent
to the Validity, which discussed implementation of the 1995 version of
the ACC, is also deleted. Additionally, the New ACC includes additional
definitions that were not in the 1995 ACC but are already in existing
regulations required by the 1937 Act and makes changes to definitions
of ``Operating Costs'' and ``Operating Receipts'' to be consistent with
24 CFR part 905 subpart F, 24 CFR 990.110 and 990.115, 2 CFR 200.80 and
2 CFR 200.307. Finally, the New ACC incorporates a definition for
``Annual Contributions Contract'' consistent with the terms and
conditions under which the public housing grant program has been
administered by HUD, and consistent with existing regulations at 2 CFR
200.51, 24 CFR 905.100(b), and 905.300(b), 905.306, 905.322, which
refer to the programs as grants. This definition applies to both the
Capital Fund and Operating Fund.
Respondents: Public housing agencies.
----------------------------------------------------------------------------------------------------------------
Total
ACC provision responses Total hours Cost per hour Total cost ($)
----------------------------------------------------------------------------------------------------------------
1. Execute new ACC via HUD form 53012-A and B... 42 205 $24.34 $4,990
2. Terminate or amend ACC....................... 78 390 24.34 9,493
3. Request HUD approval of non-dwelling leases 114 735 24.34 17,890
or agreements..................................
4. HUD approval for easement uses............... 48 3524 24.34 8,567
5. Submit General Depository Agreement (GDA) via 265 651 24.34 15,845
form HUD 51999.................................
6. Request to terminate GDA..................... 107 202 24.34 4,917
7. ACC revisions to change year end dates....... 23 257 24.34 6,255
8. ACC to consolidate PHAS...................... 18 217 24.34 5,282
9. ACC revision to transfer programs............ 43 391 24.34 9,517
10. Request review of Conflict of interest...... 102 951 24.34 23,147
11. Request pooling of insurance................ 5 97 24.34 2,361
12. Request for new Declaration of Trust (DOT) 142 1249 24.34 30,400
via form HUD 52190-A and B.....................
13. Request DOT amendment or termination........ 221 2031 24.34 49,435
14. Amend ACC for Capital Fund Finance via form 73 788 24.34 19,180
HUD 52840-A....................................
15. Amend ACC for Mixed Finance Supplementary 94 1981 50 99,050
Legal Document.................................
16. Amend ACC for Capital Grant................. 2820 11,070 24.34 269,443
17. Amend ACC for Emergency Capital Fund Grant.. 38 100 24.34 2,434
18. Amend ACC Capital Fund for Safety and 75 96 24.34 2,337
Security.......................................
19. Amend ACC to Recapture Capital Fund Grant... 123 643 24.34 15,650
20. Amend ACC for Energy Performance Contract... 38 192 24.34 4,673
21. Amend ACC for Community Facilities Grants... 13 28 24.34 682
22. Demo Disposition Approvals and Removing 162 1746 24.34 42,498
Units form ACC-HUD Form 52860..................
23. Chicago Special Applications Center Approval 851 6,010 33.06 225,072
for Inventory Removal Applications.............
24. Supplementary Document: Unique Legal 60 1440 50 72,000
Document used by HQ Staff Mixed-Finance
Amendment to the ACC...........................
---------------------------------------------------------------
Totals...................................... 6,765 34,944 .............. 927,423
----------------------------------------------------------------------------------------------------------------
B. Solicitation of Public Comment
This notice is soliciting comments from members of the public and
affected parties concerning the collection of information described in
Section A on the following:
(1) Whether the proposed collection of information is necessary for
the proper performance of the functions of the agency, including
whether the information will have practical utility;
(2) The accuracy of the agency's estimate of the burden of the
proposed collection of information;
(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
those who are to respond; including through the use of appropriate
automated collection techniques or other forms of information
technology, e.g., permitting electronic submission of responses.
HUD encourages interested parties to submit comment in response.
Affected Public Who Will Be Asked or Required to Respond: The
primary respondents are Public Housing Agencies.
[[Page 66731]]
C. Authority
Section 3507 of the Paperwork Reduction Act of 1995, 44 U.S.C.
Chapter 35.
Date: December 19, 2018.
Dominique Blom,
General Deputy Assistant Secretary for Public and Indian Housing.
Annual Contributions Contract HUD-53012 (ACC)
U.S. Department of Housing and Urban Development Office of Public and
Indian Housing
OMB Approval No. 2577-0075 (exp. 01/31/2021)
The information collection requirements contained in this document
have been approved by the Office of Management and Budget (OMB)
under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520) and
assigned OMB control number 2577-0075. There is no personal
information contained in this application. Information on activities
and expenditures of grant funds is public information and is
generally available for disclosure. Recipients are responsible for
ensuring confidentiality when disclosure is not required. In
accordance with the Paperwork Reduction Act, HUD may not conduct or
sponsor, and a person is not required to respond to, a collection of
information unless the collection displays a currently valid OMB
control number.
1. Definitions
Act--The United Stated Housing Act of 1937 (42 U.S.C. 1437, et
al.), as amended.
Annual Contributions Contract (ACC)--This agreement between HUD and
the HA which establishes the basic terms and conditions for the HA's
public housing grant program.
Consolidated Annual Contributions Contract (consolidated ACC or
CACC)--HUD's annual Grant Funding Exhibits to the ACC, which together
with the ACC, constitute the annual grant agreement for the HA's public
housing program.
Cooperation Agreement--Agreement(s) prescribed by HUD for execution
by the HA and the local governing body relative to the cooperation of
the local governing body in the development and operation of the
Project(s) and the obligation of the HA for payments in lieu of taxes
(PILOT).
Fiscal Year--The HA fiscal year.
Grant Funding Exhibit--Exhibits to the ACC, in a form prescribed by
HUD, reflecting HUD's estimate of Operating Fund and Capital Fund grant
funding or other public housing grant funding for which the HA is
eligible.
Housing Agency (HA)--The entity that meets the statutory definition
set forth under the Act, and which is subject to the CACC.
HUD--The U.S. Department of Housing and Urban Development.
Mixed-Finance--Development or modernization of public housing units
where the public housing units are owned in whole or in party by an
entity other than a PHA (i.e., Owner-Entity).
Operating Costs (Operating Expenditures or Operating Expenses)--
Costs incurred by the HA for the necessary administration, operation
and maintenance of a public housing Project; and which may be charged
against Operating Receipts in accordance with the CACC and HUD
requirements. Except as allowed by HUD, such costs do not include: any
costs, expenses, expenditures, or charges incurred as part of the
development or modernization of a public housing Project.
Operating Receipts--All rents, revenues, income, and receipts
accruing from, out of, generated by, or in connection with the
ownership or operation of public housing, including grant funds
received pursuant to HUD Requirements and is not limited to income from
fees for services performed, the use or rental of real or personal
property acquired with grant funds, the sale of commodities or items
fabricated under the grant, license fees and royalties on patents and
copyrights, and principal and interest on loans made with grant funds.
Operating Receipts shall not include any funds received for the
development or modernization of a Project; annual contributions pledged
for payment of bonds or notes; proceeds from the disposition of real
property; or rebates, credits, discounts and interest.
Interest on the Operating Receipts (including the investment of
Operating Receipts) constitutes Operating Receipts.
Operating Reserve--The cumulative amount by which Operating
Receipts have exceeded Operating Costs.
Owner Entity--An entity, including the HA, that owns public housing
units in a mixed finance project.
Project (Public Housing Project)--Low-income housing, developed,
acquired, or assisted by HUD under the Act, and the improvement of such
housing, and necessary appurtenances thereto. The term includes all
real and personal property, tangible and intangible, that is acquired
or held by a HA in connection with a Project covered under the CACC.
The term does not include housing under section 8 of the Act.
Program (Public Housing program)--The HA's public housing grant
program.
Program Receipts--Program Receipts shall mean Operating Receipts
and any other funds received by the HA for the development,
modernization, sale or transfer of Public Housing Projects. Subject to
HUD Requirements, as defined in Paragraph 3, interest on the Program
Receipts (including the investment of program receipts) constitutes
Program Receipts. Program Receipts shall only be used to pay for public
housing program expenditures, unless otherwise allowed by HUD
Requirements.
Public Housing--The term shall include Public Housing Projects, as
well as all other real and personal property, tangible and intangible,
which is acquired, or held by, the HA in connection with its public
housing program covered under a CACC.
Replacement Reserve Account--An account established by the HA, as
approved by HUD, that may be used to fund any of the eligible capital
activities outlined in the HA's Capital Fund 5 Year Action Plan as
approved by HUD.
2. Mission of HUD and HA
a. HUD shall administer its Public Housing Program for the
provision of decent, safe, and sanitary housing to eligible families in
accordance with the CACC and all applicable HUD Requirements. HUD shall
provide maximum responsibility and flexibility to HAs in making
administrative decisions within all applicable statutes, executive
orders, regulations and this ACC. HUD shall provide annual
contributions, in the form of grants, to the HA in accordance with all
applicable statutes, executive orders, regulations, and the CACC.
b. The HA shall use Program Receipts to provide decent, safe, and
sanitary housing for eligible families in compliance with the Act and
all HUD requirements. HA shall at all times develop and operate Public
Housing Projects in a manner that promotes serviceability, economy,
efficiency, and stability of the Projects, and the economic and social
well-being of the tenants.
c. Except as otherwise provide by law, the HA shall develop,
modernize and operate all Projects covered by the CACC, in accordance
with HUD Requirements. The HA shall also ensure compliance with such
requirements by any Owner Entity, contractor or subcontractor engaged
in the development or operation of a Project covered under the CACC.
3. HUD Requirements
Except as otherwise provided by law, the HA must comply with the
following ``HUD Requirements,'' including all
[[Page 66732]]
such requirements as amended from time to time:
a. The Act;
b. Regulations at Title 2 of the Code of Federal Regulations, and
regulations issued by HUD at Title 24 of the Code of Federal
Regulations);
c. Other Federal statutes (including appropriations acts),
executive orders and regulatory requirements; and
d. HUD-issued notices, and HUD-required forms, or agreements.
4. Cooperation Agreement(s)
During the development and operation of the Project(s), the HA
shall perform and comply with all applicable provisions of a
Cooperation Agreement in the form prescribed by HUD, including the
making of PILOT provided therein (or such lesser amount as may be
prescribed by State law or agreed to by the local governing body); and
shall at all times preserve and enforce its rights thereunder, and
shall not terminate or amend the Cooperation Agreement(s) without the
prior written approval of HUD.
5. Declaration of Restrictive Covenants
a. Record of Obligation. Upon the acquisition, development, or
assistance of any real property with funds covered by the CACC, the HA
shall execute and file for record against the Project and/or the
owner's leasehold interest an instrument (which shall be in the form of
a declaration of trust, declaration of restrictive covenant, or such
other document as approved or prescribed by HUD), confirming and
further evidencing, but not limited to, (1) the obligation of the HA
not to convey or encumber the Project except as expressly authorized in
the CACC, (2) the obligation of the HA to develop, maintain and operate
such Project in compliance with the CACC and HUD Requirements.
1. Such instrument and all amendments shall be duly recorded or
filed for record to give public notice of their contents and to protect
the rights and interests of HUD.
2. The HA shall promptly furnish HUD with appropriate evidence of
such recording or filing. From time to time, as additional real
property is acquired, assisted, or disposed of (or removed from the
public housing program) by the HA in connection with its Public Housing
Program, the HA shall promptly amend such instrument to incorporate all
such real property and shall record the instrument, as amended. The
declaration shall provide further that it may not be modified, amended
or released without the prior written approval of HUD. The HA shall
promptly furnish HUD with appropriate evidence of such recording or
filing.
b. Mixed-Financed Projects. The HA shall require the Owner Entity
to execute and file for record against the Project, prior to the
recordation of any other encumbrance, a declaration in the form
approved by HUD.
1. The declaration shall confirm and evidence the Owner Entity's
obligation during the term of CACC covering the Project units and
throughout such further period when such approval may be required by
law as then in effect, to develop, maintain and operate the Project
units in compliance with the HUD Requirements. Such declaration and all
amendments shall be duly recorded or filed for record to give public
notice of their contents and to protect the rights and interests of
HUD.
2. The declaration shall provide further that it may not be
modified, amended or released without the prior written approval of
HUD. The HA shall promptly furnish HUD with appropriate evidence of
such recording or filing.
6. Disposition and Encumbrances
a. Covenant Against Disposition and Encumbrances. The HA shall not
demolish or dispose of any Project, or portion thereof, other than in
accordance with the terms of the CACC and applicable HUD Requirements.
The HA shall not encumber any Project, or portion thereof, without the
prior written approval of HUD. The HA shall not pledge any assets of
any Project covered by the CACC as collateral for any loan or other
obligation, without the prior written approval of HUD. However, prior
written approval by HUD is not required for the HA to enter into
dwelling leases with eligible families for dwelling units in the
Projects covered by the CACC, and such other normal uses associated
with the operation of the Project(s).
b. Mixed-Finance Projects. Without the prior written approval of
HUD, no transfer, conveyance, or assignment shall be made: (i) Of any
interest of a managing member, general partner, or controlling
shareholder (any such interest being referred to as a ``Controlling
Interest'') of the Owner Entity; (ii) of a Controlling Interest in any
entity which has a Controlling Interest in the Owner Entity; or, (iii)
prior to the payment in full of all equity contributions described in
the approved evidentiary documents, any other interest in the Owner
Entity, or in any partner or member thereof.
1. Notwithstanding the foregoing, HUD consent is not required where
a business organization that has a limited interest (non-controlling
and non-managing) in the Owner Entity transfers a non-controlling and
non-managing interest in the business organization, provided that: (i)
The Owner Entity provides HUD with written notice of such transfer;
(ii) the transfer of such interest does not result in an entity
obtaining a Controlling Interest or managing interest following the
transfer; and, (iii) the Owner Entity certifies to HUD that the new
owner of the limited interest remains obligated to fund its equity
contribution in accordance with the terms of the HUD-approved
organizational documents of the Owner Entity.
2. HUD will not unreasonably withhold, delay, or condition a
request by the Owner Entity for HUD's consent to an internal
reorganization of the corporate or partnership structure of the Owner
Entity or any of the partners, members or stockholders of the Owner
Entity.
3. Notwithstanding the foregoing, the prior approval of HUD and the
HA will not be required for the exercise by any investor partner of the
Owner Entity (``Investor'') of its right pursuant to the Amended and
Restated Limited Partnership Agreement of the Owner Entity
(``Partnership Agreement'') to remove the general partner of the Owner
Entity and appoint the Investor or its Affiliate (i.e., any entity
which directly or indirectly controls, or is controlled by, or is under
common control with, the specified entity) as an interim general
partner of the Owner Entity so long as the Investor gives prompt
written notice to HUD of such removal and appointment (``Removal
Notice''); provided that HUD and the HA consent will be required for
the appointment of such interim general partner to extend beyond a
ninety (90) day period and for the appointment of any entity (including
the Investor of an affiliate thereof) as the permanent replacement
general partner. Such 90-day period will commence on the date of the
Removal Notice (``Interim Replacement Period''). With the prior written
approval of HUD and the HA, the Interim Replacement Period may be
extended for an additional 90 days to allow the substitute general
partner of the Owner Entity to find a replacement general partner
acceptable to HUD and all other parties, provided that prior to the
expiration of such additional 90-day period, the substitute general
partner demonstrates that the Investor is continuing to fund (or has
already funded) capital as required under the Partnership Agreement and
that the Project continues to be operated in a manner consistent with
HUD Requirements.
[[Page 66733]]
4. The consent of HUD and the HA will not be required for (i) any
exercise by the Investor of its right to require the repurchase of its
limited partnership interests as against the General Partner, any
guarantor, and/or any affiliate thereof (``Repurchaser'') pursuant to
the Partnership Agreement, provided that the Investor provides prompt
written notice to HUD and the HA at the time of its exercise of such
right, and further provided that any resale of the limited partnership
interests by the Repurchaser will be subject to the approval of HUD and
the HA, such approval not to be unreasonably withheld, delayed or
conditioned, or (ii) the exercise by the HA (or any approved Affiliate
thereof) of its rights to acquire interests or the Property pursuant to
the Right of First Refusal and Purchase Option Agreement of
approximately even date herewith.
7. Insurance Requirements
a. Except as otherwise provided by HUD, and in accordance with the
CACC and HUD regulations and requirements, the HA shall procure
adequate insurance to protect the HA from financial loss resulting from
various hazards.
b. Mandatory Insurance Coverage. The following types of insurance
coverage are required:
1. Commercial Property. Each policy must be written with a blanket
limit, on a replacement cost basis, and with an agreed value clause
eliminating any coinsurance provision.
2. Commercial General Liability.
3. Workers Compensation and Employers Liability.
4. Owned and Non-Owned Automobile Liability.
5. Theft, Disappearance, and Destruction, only if the amount of
cash and checks on hand at any one time exceeds the amount prescribed
by HUD.
6. Employee Dishonesty.
7. Boiler and Machinery if steam boilers have been installed.
8. Flood Insurance for property located in a flood plain, as
determined in the Federal Government's National Flood Insurance
Program.
9. Lead-Based Paint Liability for HAs undergoing lead-based paint
testing and abatement.
10. Fidelity Bond Coverage. The HA must carry adequate fidelity
bond coverage, as required by HUD, of its officers, agents, or
employees handling cash or authorized to sign checks.
c. Optional Insurance Coverage. The following types of insurance
coverage are recommended and should be purchased when the HA has
exposure to these covered risks:
1. Boiler and Machinery (equipment breakdown).
2. Directors and Officers or Public Officials Liability.
3. Law Enforcement Liability when the Commercial General Liability
insurer has excluded coverage.
d. Authorized Insurance Companies. Insurance must be purchased from
an insurance company or other entity that is licensed or duly
authorized to write insurance in the State where the HA is located.
e. Certificates of Insurance. At each renewal, the HA shall
promptly have certificates of insurance submitted by the insurers to
HUD describing the types of coverage, limits of insurance, policy
numbers, and inception and expiration dates.
f. Waivers and Self-Insurance Funds. Requests for waivers of this
section not to purchase any form of required insurance, or to establish
a self-insurance fund in lieu of purchasing insurance, must be
submitted in writing to HUD for approval and include specific
justification and risk analysis.
g. Restoration. Unless the HA has received prior written approval
of HUD to the contrary, the HA shall, to the extent that insurance
proceeds permit, promptly restore, reconstruct, and/or repair any
damaged or destroyed property of a Project, in accordance with all HUD
Requirements.
h. Mixed Finance Projects. The HA, to the extent that insurance
proceeds or condemnation award proceeds (``Proceeds'') permit, shall
promptly cause the restoration, reconstruction, and/or repair
(``Restoration'') of any damaged or destroyed property of the Project.
The Owner Entity, to the extent Proceeds and other funds (if any are
made available by the Owner Entity or the HA) permit, and to the extent
Restoration is feasible, shall promptly cause the Restoration of ay
damaged or destroyed property of the Project. Each mortgagee must
permit Restoration if feasible (rather than require application of
Proceeds to reduction of debt). If Restoration is not feasible, then
the following requirements, which shall be incorporated into the
Regulatory and Operating Agreement (or other such agreement) between
the HA and the Owner Entity (and ground lease, if applicable), and with
which all mortgage documents encumbering the Project shall be
consistent, shall apply:
1. Partial loss. In the event that less than all of the dwelling
units in the Project are damaged, destroyed or lost as a result of
casualty or condemnation, the following provisions shall apply:
(A) If the Proceeds are less than, or equal to, the sum of the
existing outstanding mortgage debt secured by the Project, excluding
any such debt held by the HA to secure a loan of Capital Funds, other
public housing development funds, or Program Receipts for the Project
(``Existing Mortgages''), and such Proceeds are applied to reduction of
Existing Mortgages, the number of Project units in the Project shall
remain the number required immediately prior to the occurrence of the
casualty or condemnation.
(B) If the Proceeds are less than, or equal to, the sum of the
Existing Mortgages but, at the election of the holders of the Existing
Mortgages, are distributed among the holders thereof and the HA, by
application first to reduction of the Existing Mortgages in an
aggregate amount not to exceed the proportion of the Proceeds equal to
the ratio of non-Project units to all dwelling units in the Project,
and then by payment to the HA of the balance of the Proceeds; then the
percentage of units in the Project (and the percentage of bedrooms
contained therein) which shall be Project units shall remain the same
as required immediately prior to the casualty or condemnation.
(C) If the Proceeds are more than sufficient to pay off the
Existing Mortgages, Proceeds in excess of the aggregate amount of the
Existing Mortgages shall be applied in the following order of priority:
(i). To reduce any outstanding indebtedness to the HA for a loan of
Capital Funds, other public housing development funds, or Program
Receipts;
(ii). To reimburse the HA for any Capital Funds, HOPE VI Grant
Funds or other public housing funds disbursed to the Owner Entity for
development of the Project other than by loan;
(iii). To the HA an amount equal to the total ``cost of
construction'' attributable to the Project units, less the sum of (A)
and (B) above; and
(iv). To the Owner Entity.
(D) Following application of Proceeds in accordance with this
subparagraph the percentage of dwelling units in the Project which
shall be Project units (and the percentage of bedrooms contained
therein) shall remain the same as required immediately prior to the
casualty or condemnation; provided, however, that to the extent that
the payment to the HA pursuant to clauses (A), (B), and (C) shall be
less than the ``cost of construction'' attributable to the Project
units, the number of remaining Project units shall be increased by a
number of units (rounded down) equal to (1) the amount by which such
payments to the HA shall be less than the cost of construction, divided
by (2)
[[Page 66734]]
the quotient of (x) cost of construction, divided by (y) the number of
Project units immediately prior to the occurrence of the casualty or
condemnation.
2. Total loss. In the event that all of the units in the Project
are damaged, destroyed or lost as a result of casualty or condemnation,
the following provisions shall apply:
(A) The Proceeds shall be used to reduce the amount of the
outstanding indebtedness of any mortgage(s) secured by the Project,
including any mortgage(s) held by the HA, based on the priority
recorded order of such mortgage(s);
(B) If the Proceeds are more than sufficient to pay off the amount
of the outstanding indebtedness of all mortgage(s) secured by the
Project, including any mortgage(s) held by the HA, then the amount of
the Proceeds in excess of such indebtedness shall be applied in the
following order of priority:
(i). To reduce any outstanding indebtedness to the HA for an
unsecured loan of Capital Funds, or other HUD Development Funds or
Program Receipts;
(ii). To reimburse the HA for any Capital Funds, other public
housing funds or Program Receipts disbursed to the Owner Entity for
development of the Project other than by loan;
(iii). To the HA an amount equal to the total ``cost of
construction'' attributable to the Project units, less the sum of (a)
and (b) above, and
(iv). To the Owner Entity.
For the purposes of this subsection, the term ``cost of
construction'' shall mean the total cost of developing the Project,
less land acquisition costs, if any, and non-capitalized soft costs.
8. Employer Requirements
The HA shall comply with all State and Federal laws applicable to
employee benefit plans and other conditions of employment.
9. Accounts, Records, and Government Access
a. The HA shall maintain complete and accurate books of account for
the Projects of the HA in such a manner as to permit the preparation of
statements and reports in accordance with HUD Requirements, and to
permit timely and effective audit.
b. The HA shall furnish HUD such financial and program data,
reports, records, statements, and documents at such times, in such
form, and accompanied by such supporting data as required by HUD. The
HA is required to submit information to, or access HUD's system of
records (SOR). HUD's SOR are subject to the Privacy Act, the Freedom of
Information Act, and other such applicable law. The HA shall not
release, without prior HUD approval, any information contained in such
records.
c. The United States Government, including HUD and the Comptroller
General, and its duly authorized representatives, shall have full and
free access to all HA offices and facilities, and to all books,
documents, and records of the HA relevant to the administration of the
Projects under this CACC, including the right to audit and make copies.
d. The HA shall engage and pay an independent public accountant to
conduct audits that are required by HUD Requirements. The cost of
audits required by HUD Requirements may be charged against Program
Receipts.
e. The foregoing (a)-(d) shall apply to any records and/or any
facilities operated or maintained by an agent or independent contractor
for the HA that assists in fulfilling any obligation under this CACC.
Any such agent or independent contractor that denies or unduly limits
HUD or its duly authorized representatives from reviewing records or
denies or unduly limits HUD or its duly authorized representative entry
to an office or facility, or prevents access to any office or facility,
is a denial by the HA.
10. Grant Funding
a. HUD shall make annual contributions in the form of grant funding
in the amounts provided for the Public Housing Program as stated in the
Grant Funding Exhibits.
b. Grant funding is subject to each year's annual appropriations
act. Appropriations may be reduced by HUD as directed by the Congress
in an appropriations act. Grant funding may be reduced by an offset of
a HA's funding, pursuant to a formula prescribed by Congress in an
appropriations act. Grant funding may also be reduced or offset
pursuant to a formula devised by HUD if Congress has invested HUD with
the discretion to devise and implement a funding formula in the
appropriations act. Grant funding may also be terminated, recaptured,
withheld, suspended, reduced or such other actions taken in accordance
with HUD Requirements.
c. Grant funding is calculated by applying applicable regulations
in Title 24 of the Code of Federal Regulations unless Congress provides
otherwise. HUD will provide grant funding to the HA in accordance with
HUD Requirements, unless modified by an appropriations act. The
appropriations act, not the Title 24 of the Code of Federal
Regulations, will always take precedence in formulating each year's
grant funding. Each year's funding amounts and related information will
be provided to the HA. Any change in funding or requirements to a Grant
Funding Exhibit will be provided in a written notice to the HA.
d. The HUD notice of a revised Grant Funding Exhibit(s) constitutes
an amendment of the CACC.
11. Depository
a. The HA shall deposit and invest Program Receipts and investment
securities received by or held for the account of the HA in connection
with the development, operation and improvement of the Projects under a
CACC with HUD in accordance with the terms of the General Depository
Agreement(s) and all investment requirements provided in HUD and
Treasury Notices and Regulations. The General Depository Agreement
shall be in the form prescribed by HUD and must be executed by the HA
and the depository. Immediately upon the execution of any General
Depository Agreement, the HA shall furnish to HUD such executed or
conformed copies thereof as HUD may require. A General Depository
Agreement shall not be terminated except after 30 days' notice to HUD.
b. The HA shall maintain records that identify the source and
application of funds in such a manner as to allow HUD to determine that
all funds are and have been expended in accordance with HUD
Requirements. The HA may only use Program Receipts for: (1) The payment
of the costs of development and operation of the Projects under the
CACC with HUD; (2) the purchase of investment securities as approved by
HUD; and (3) such other purposes as may be specifically approved by
HUD. Except as approved by HUD, and consistent with HUD Requirements,
grant funds are not fungible.
12. Termination of a Project
If any Project covered by this ACC is terminated, all related
Program Receipts shall, in accordance with the terms of this CACC and
HUD Requirements, become part of another Project administered by the
HA. If no Public Housing Project(s) exists, the remaining personal and
real property, and Program Receipts, shall be distributed (including
the possible remittance to HUD) as directed by HUD, consistent with HUD
Requirements.
[[Page 66735]]
13. Notices, Defaults, Remedies
a. Notice. Any notice required or permitted to be given under this
ACC or CACC shall be in writing, signed by a duly authorized official,
and addressed, if to the HA, to the principal office of the HA, and if
to HUD, to the HUD office with jurisdiction over the HA, unless
otherwise directed by regulation or other HUD Requirements.
b. Substantial Default. A substantial default is a serious and
material violation of any one or more of the covenants contained in the
CACC. Events of substantial default shall include, but shall not be
limited to, any of the following occurrences: (1) Failure to maintain
and operate the Project(s) under this ACC in a decent, safe, and
sanitary manner; (2) the disposition or encumbrance of any Project or
portion thereof without HUD approval; (3) failure of the HA to comply
with any civil rights requirements applicable to the HA and the
Project(s); (4) abandonment of any Project by the HA, or if the powers
of the HA to operate the public housing program in accordance with the
provisions of this ACC are curtailed or limited to an extent that will
prevent the accomplishment of the objectives of this ACC; (5) failure
to carry out modernization or development in a timely, efficient and
effective manner; and (6) termination of tax exemption (either real or
personal property) on behalf of a Project covered under the CACC.
1. Delivery of a notice of substantial default shall be required
before the exercise of any remedy permitted under this ACC. Such notice
shall: (1) Identify the specific covenants, statutes, executive orders,
or regulations alleged to have been violated; (2) identify the specific
events, actions, failure to act, or conditions that constitute the
alleged substantial default; and (3) provide a specific timeframe for
the HA to cure the substantial default, taking into consideration the
nature of the default.
2. Except in cases involving clear and apparent fraud, serious
criminal behavior, or emergency conditions that pose an imminent threat
to life, health, or safety, the HA shall have the right to appeal any
such notice received from the HUD office with jurisdiction over the HA.
Such informal appeals shall be in writing and shall be submitted within
ten (10) working days from the date of the HA's receipt of such notice.
Appeals of the action of a HUD Office shall be made to the Assistant
Secretary for Public and Indian Housing, or such other official as
shall be a successor thereto.
c. Remedies. Upon the occurrence of a substantial default, or the
expiration of any applicable cure period provided by HUD, the HA shall:
(1) Convey to HUD title to the Project(s) as demanded by HUD if, in the
determination of HUD (which determination shall be final and
conclusive), such conveyance of title is necessary to achieve the
purposes of the Act; or (2) deliver possession and control of the
Project(s) to HUD.
d. Additional Remedies. Nothing contained in this ACC shall
prohibit or limit HUD from the exercise of any other right or remedy
existing under applicable law, or available at equity. HUD's exercise
or non-exercise of any right or remedy under this ACC or CACC shall not
be construed as a waiver of HUD's right to exercise that or any other
right or remedy at any time.
e. If HUD shall acquire title to, or possession of the Project(s),
HUD shall re-convey or redeliver possession of the Project(s) to the
HA, or to any entity recognized by HUD: (1) Upon a determination by HUD
that the Substantial Default has been cured and that the Project(s)
will thereafter be operated in accordance with the terms of the CACC;
or (2) after the termination of HUD's obligation to make payments,
unless there are any obligations or covenants of the HA to HUD that are
then in default.
f. Termination for cause. HUD may at any time by notice to the HA
declare this ACC or the CACC terminated with respect to any Project if:
1. The HA has made any fraudulent or willful misrepresentation of
any material fact in any document or data submitted to HUD as a basis
for the CACC or as an inducement to HUD to enter into the CACC; or
2. A substantial default exists in connection with any of the
Projects.
g. Mixed Finance Projects. In addition to the above the following
shall apply to Mixed-Finance Projects:
1. Each of the following shall also constitute an event of
substantial default under the CACC:
(A) The drawdown of Capital Funds, development grant funds, or
other public housing funds, as applicable, in amounts greater than
authorized, or in amounts greater than allowed by HUD Requirements;
(B) Breach of any approved performance schedule; or
(C) Serious and material breach of any terms, covenants,
agreements, provisions, or warranties of:
(i). The HA which, in the opinion of HUD, adversely affects the
performance obligations of the HA, the Owner Entity, or other
participating parties, and
(ii). The Owner Entity, partner, or other participating party, made
in any agreement submitted to HUD as part of the evidentiary materials
which, in the opinion of HUD, adversely affects the performance
obligations of the HA, the Owner Entity, partner, or other
participating parties.
2. HUD shall permit an Owner Entity, partner, or lender to
participate, and may in its discretion, permit any other participating
party to participate, in any appeal from a notice of substantial
default delivered by HUD to the HA pursuant to this ACC with respect to
a Project.
3. During the term of any agreement between the HA and Owner
Entity, and so long as the Owner Entity shall not be in default of its
obligations thereunder, HUD agrees that in the event of the substantial
default by the HA under the CACC, HUD shall exercise any remedies or
sanctions authorized under the CACC, including taking possession of the
HA's interest in the Mixed Finance Project, in such manner as not to
disturb the Owner Entity's rights under any such agreements.
4. Any rights of the mortgagee under a Note and First Mortgage (if
any), including the right to exercise all remedies specified therein,
shall not be subordinate to any other obligations imposed upon the
Project, except as such obligations (1) shall be reflected in the
Declaration of Restrictive Covenants, as required by the CACC, or a
memorandum of lease (if applicable), and/or any other recorded
instrument which shall have been recorded prior to the lien of the
First Mortgage, or (2) shall be the subject of a subordination
agreement with such mortgagee.
14. HUD in Possession of Project(s)
a. During any period in which HUD holds title to or possession of
the Projects after a substantial default by the HA, HUD shall develop
and/or operate such Project(s) as nearly as practicable in accordance
with the provisions of the CACC.
b. During any such period, HUD may, in the name and on behalf of
the HA, or in its own name and on its own behalf (as HUD shall solely
determine), exercise any and all rights of the HA under the CACC, and
perform any and all obligations of the HA under the CACC. Nothing
herein shall be deemed to make the action(s) or omission(s) of the HA
attributable to HUD.
15. Conflict of Interest
a. In addition to any other applicable conflict of interest
requirements, including those provided herein, HAs must also maintain
written standards of
[[Page 66736]]
conduct covering conflicts of interest and governing the performance of
its Board Member, executives, and employees engaged in the
administration and operation of Projects covered by the CACC. A
conflict of interest would arise when the employee, officer, or agent,
any member of his or her immediate family, his or her partner, or an
organization which employs (or is about to employ any of the parties
indicated herein), has a financial or other interest in an organization
considered for a contract with the HA, an RMC, other resident
organization of the HA; or otherwise does business with, a tenant
organization or tenants of the HA. The HA must disclose in writing any
potential) conflict of interest to HUD.
b. The HA, its contractors and subcontractors shall not enter into,
or be a party to, any contract, subcontract, or arrangement in
connection with a Project under the CACC in which any of the following
classes of people has an interest, direct or indirect, during his or
her tenure or for one year thereafter:
1. Any present or former member or officer of the governing body of
the HA, or any member of such individual's immediate family. There
shall be excepted from this prohibition any present or former tenant
commissioner who does not serve on the governing body of a resident
corporation, and who otherwise does not occupy a policymaking position
with the resident corporation, the HA or a related business entity.
2. Any employee of the HA who formulates policy or who influences
decisions with respect to the Project(s), or any member of the
employee's immediate family, or the employee's partner.
3. Any public official, member of the local governing body, or
State or local legislator, or any member of such individual's immediate
family, who exercises functions or responsibilities with respect to the
Project(s) or the HA.
4. Any member of these classes of persons must disclose the
member's interest or prospective interest to the HA.
5. The requirements of this subsection may be waived by HUD for
good cause, if the prohibited contract, subcontract or arrangement is
otherwise permitted under State and local law. No person for whom a
waiver is requested may exercise responsibilities or functions with
respect to the contract, subcontract or arrangement to which the waiver
pertains.
6. The provisions of this subsection (b) shall not apply to the
General Depository Agreement entered into with an institution regulated
by a Federal agency, or to utility service for which the rates are
fixed or controlled by a State or local agency.
c. The HA shall not hire an employee in connection with a Project
under this ACC if the prospective employee is an immediate family
member of any person belonging to one of the following classes:
1. Any present or former member or officer of the governing body of
the HA. There shall be excepted from this prohibition any former tenant
commissioner who does not serve on the governing body of a resident
corporation, and who does not occupy a policymaking position with the
HA.
2. Any employee of the HA who formulates policy or who influences
decisions with respect to the Project(s).
3. Any public official, member of the local governing body, or
State or local legislator, who exercises functions or responsibilities
with respect to the Project(s) or the HA.
d. The prohibition referred to in subsection (c) shall remain in
effect throughout the class member's tenure and for one year
thereafter.
e. A class member shall disclose to the HA the member's familial
relationship to any prospective employee.
f. For purposes of this section, the term ``immediate family
member'' means: the spouse, mother, father, mother-in-law, father-in-
law, brother, sister, brother-in-law, sister-in-law, daughter-in-law,
son-in-law or child of a covered class member (whether related as a
full blood relative or adoption, or as a ``half'' or ``step'' relative,
e.g., a half-brother or stepchild).
1. The officers, employees, and agents of the HA must neither
solicit nor accept gratuities, favors, or anything of monetary value
from residents residing in Projects or participating in programs
covered by the CACC. However, HAs may set standards for situations in
which the financial interest is not substantial or the gift is an
unsolicited item of nominal value. The standards of conduct must
provide for disciplinary actions to be applied for violations of such
standards by officers, employees, or agents of the HA.
2. If the HA has a parent, affiliate, or subsidiary organization
that is not a state or local government, the HA must also maintain
equivalent written standards of conduct covering organizational
conflicts of interest. ``Organizational conflicts of interest'' means
that because of relationships with a parent company, affiliate, or
subsidiary organization, the HA is unable or appears to be unable to be
impartial in conducting a procurement action involving a related
organization; or in administering or operating a Project involving a
related organization.
g. Consistent with this section and HUD Requirements, the HA shall
ensure that tenants served directly by the HA serve on the governing
body of the HA.
16. Civil Rights and Employment Requirements
a. The HA shall comply with all statutory, regulatory, and
executive order requirements pertaining to civil rights, equal
opportunity, and nondiscrimination, as those requirements now exist, or
as they may be enacted, promulgated, or amended from time to time.
These requirements currently include, but are not be limited to,
compliance with the following authorities: Title VI of the Civil Rights
Act of 1964 (42 U.S.C. 2000d; 24 CFR part 1); the Fair Housing Act (42
U.S.C. 3601-3619; 24 CFR part 100); section 504 of the Rehabilitation
Act of 1973 (29 U.S.C. 794; 24 CFR part 8); (the Age Discrimination Act
of 1975 (42 U.S.C. 6101[not]6107; 24 CFR part 146); the Americans with
Disabilities Act (Pub. L. 101-336, approved July 26, 1990; 28 CFR part
35); Executive Order 11063 on Equal Opportunity in Housing (24 CFR part
107); Executive Order 11246 on Equal Employment Opportunity, as amended
by Executive Order 11375 (41 CFR part 60); and Executive Order 12892 on
Affirmatively Furthering Fair Housing.
b. In connection with the development or operation of any Project,
the HA shall not discriminate against any employee or applicant for
employment because of race, color, religion, sex, disability, age, or
national origin. The HA shall take affirmative action to ensure that
applicants are employed, and that employees are treated during
employment, without regard to race, color, religion, sex, disability,
age, or national origin. Such action shall include, but not be limited
to, the following: employment, upgrading, demotion, or transfer;
recruitment or recruitment advertising; layoff or termination; rates of
pay or other forms of compensation; and selection for training,
including apprenticeship. The HA shall insert the foregoing provision
(modified only to show the particular contractual relationship) in all
its contracts in connection with the development or operation of any
Project, except contracts for standard commercial supplies or raw
materials and contracts referred to in subsection (C) of this section,
and shall require all contractors
[[Page 66737]]
to insert a similar provision in all subcontracts, except subcontracts
for standard commercial supplies or raw materials. The HA shall post at
the Projects, in conspicuous places available to employees and
applicants for employment, notices to be provided by HUD setting forth
the provisions of this nondiscriminatory clause.
c. The HA shall incorporate the language required by Executive
Order 11246, codified at 41 CFR 60-1.4(b) (or any successor provision),
into any contract for construction work, or any modification thereof,
which is paid for in whole or in part with funds obtained under this
ACC. In addition, the HA agrees that it will be bound by the equal
employment opportunity provisions set forth at 41 CFR 60-1.4(b) (or any
successor provision) with respect to its own employment practices when
it uses its own staff (force account) to carry out Federally assisted
construction work.
d. The HA shall, consistent with 12 U.S.C. 1701u, codified at 24
CFR 135.1 (or any successor provision), provide economic opportunities
for Section 3 residents and Section 3 business concerns. The HA may,
consistent with applicable law and regulation, utilize work
requirements when and where appropriate.
17. Members or Delegates to Congress
No member of or delegate to the Congress of the United States of
America or resident commissioner shall be admitted to any share or part
of this ACC or to any benefits which may arise from it. (As used in
this section, the term ``resident commissioner'' refers to an
individual appointed to oversee a territory or possession of the United
States of America, e.g., Guam.)
18. Rights of Third Parties
Nothing in this ACC shall be construed as creating any right of any
third party to enforce any provision of the ACC, the CACC, or to assert
any claim against HUD or the HA.
19. Waiver or Amendment
Any right or remedy that HUD may have under this ACC may be waived
in writing by HUD without the execution of a new or supplemental
agreement, or by mutual agreement of the parties to this ACC. This
agreement may be amended in writing: Provided that, none of the
provisions of this ACC may be modified or amended in a manner that
impairs HUD's obligation to pay any annual contributions that have been
pledged as security for any obligations of the HA.
[FR Doc. 2018-28095 Filed 12-26-18; 8:45 am]
BILLING CODE 4210-67-P
