60-Day Notice of Proposed Information Collection: COVID19 HUD Contingency Plan for HUD Multifamily Rental Project Closing Documents; OMB Control No.: 2502-0618, 55315-55316 [2020-19623]

Download as PDF Federal Register / Vol. 85, No. 173 / Friday, September 4, 2020 / Notices DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT [Docket No. FR–7027–N–28] 60-Day Notice of Proposed Information Collection: COVID19 HUD Contingency Plan for HUD Multifamily Rental Project Closing Documents; OMB Control No.: 2502–0618 Office of Housing—Federal Housing Commissioner, HUD. ACTION: Notice. AGENCY: In accordance with the Paperwork Reduction Act of 1995, HUD has requested from the Office of Management and Budget (OMB) emergency approval of the information collection described in this notice. DATES: Comments Due Date: November 3, 2020. 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: Colette Pollard, Reports Management Officer, QDAM, Department of Housing and Urban Development, 451 7th Street SW, Washington, DC 20410; email Colette Pollard at Colette.Pollard@ hud.gov or telephone 202–402–3400. Persons with hearing or speech impairments may access this number through TTY by calling the toll-free Federal Relay Service at (800) 877–8339. This is not a toll-free number. Copies of available documents submitted to OMB may be obtained from Ms. Pollard. SUPPLEMENTARY INFORMATION: This notice informs the public that HUD is seeking approval from OMB for the information collection described in Section A. jbell on DSKJLSW7X2PROD with NOTICES SUMMARY: A. Overview of Information Collection Title of Information Collection: COVID19 HUD Contingency Plan for HUD Multifamily Rental Project Closing Documents. OMB Approval Number: 2502–0618. Type of Request: New Collection. Form Numbers: HUD–5985 & HUD– 5960. VerDate Sep<11>2014 16:42 Sep 03, 2020 Jkt 250001 Respondents: Business or other forprofit, Not-for-profit institutions, State, Local or Tribal Government. Estimated Number of Respondents: 612. Estimated Number of Responses: 1,224. Frequency of Response: Twice per annum. Average Hours per Response: 1.00 hour [0.50 × 2 = 1 hour]. Total Estimated Burdens: 1,224. Description of the need for the information and proposed use: This is a new collection based on situational conditions relating to the COVID–19 Coronavirus outbreak and the Presidential declaration that began a national emergency. This new PRA collection will serve as the authority for any new or future changes or revisions to multifamily programs impacted by COVID–19 or related pandemics. The Lender’s Certificate, HUD–92434, establishes the conditions, which the Lender agrees to abide by in consideration of HUD’s commitment to FHA-insure mortgages, and by which the Lender certifies that the conditions have been fulfilled to date, including any work done prior to endorsement of the Note that has been approved by HUD in writing, and all HUD imposed conditions that have been met with respect to such work. The information collection requirements contained in the Lender’s Certificate are to oversee the parties’ compliance with all applicable legal requirements and therefore ensure protection of the FHA insurance fund. The HUD–92434M is required by the Closing Checklists via the Firm Commitment (Housing Notice 2018–03) and per the fact that the underlying forms contemplate hardcopy submission (since HUD historically has not accepted electronic submission of documents for closing purposes). The Lender’s Certification Regarding: Electronic Submission of Closing Documents is a modification of the HUD–92434M that will set the Office of General Counsel’s (‘‘OGC’’) temporary uniform electronic closing protocols until normal closing can resume after the COVID–19 Pandemic. Relating to the current COVID–19 Coronavirus outbreak and the President declaring a national emergency the Department of Housing and Urban Development (‘‘HUD’’) and its offices remain open for business at this time, many are now engaged in full-time telework. It is therefore prudent and appropriate for the OGC, in collaboration with Multifamily to establish protocols, rules, and procedures that best ensure continuity of operations in the event of an PO 00000 Frm 00064 Fmt 4703 Sfmt 4703 55315 extended closure of a specific division, regional or field office, or the determination that OGC in its entirety should work remotely. Pursuant to the March 16, 2020 HUD Memorandum issued for all Regional Counsel and Deputy Regional Counsel, all Associate Regional Counsel for Programs and all OGC Closing Attorneys, set forth protocols and best practices for the continued provision of legal services by HUD Closing Attorneys while working from home or from another remote location. Also included in the memorandum are suggestions that may be shared with outside counsel to facilitate the work being done remotely by OGC attorneys. Therefore, Regional Counsel will ensure that the temporary protocols set forth in the March 16, 2020 memorandum are adopted and applied consistently across the regional and field offices within their purview. When the pandemic subsides and OGC resumes normal closing operations consistently across the country, HUD will reconsider the temporary protocols in this memorandum. OGC attorney protocols for review and approval of draft closing documents must rely on electronic transmission of closing documents in lieu of hard copies in performing their initial reviews. This approach will ensure the continuation of reviews even if our external partners are unable to physically transmit the volume of paper documents needed at this stage. While providing increased flexibility to lenders in submitting closing documents, this protocol does not authorize any additional substantive modifications to the closing process without approval of the appropriate Regional Counsel and the Office of Insured Housing in Headquarters. Draft closing submission will remain consistent with the approach of Multifamily Housing and OGC will accept draft closing packages in fully electronic form. Respondents: Estimation for the Escrow Agreement for Deferred Repairs & Debt Service—223(f)—(one closing): Estimated Number of Respondents: 330. Estimated Number of Responses: 330. Frequency of Response: Once per annum. Average Hours per Response: .50 hours. Total Estimated Burdens: 165. Description of the need for the information and proposed use: The form Escrow Agreement for Deferred Repairs & Debt Service—223(f) (‘‘Debt Service Escrow Agreement’’), sets the terms and conditions between the Borrower and Lender and provides for the establishment of an escrow by the E:\FR\FM\04SEN1.SGM 04SEN1 jbell on DSKJLSW7X2PROD with NOTICES 55316 Federal Register / Vol. 85, No. 173 / Friday, September 4, 2020 / Notices Borrower as security for completion of non-critical deferred repairs. Such escrow also serves as security for HUD’s insurance of the loan. The agreement provides for prior approval of HUD for certain actions to be taken by the Borrower or Lender. The information collection requirements contained in Debt Service Escrow Agreement are to oversee the parties’ compliance with all applicable legal requirements and therefore ensure protection of the FHA insurance fund. The global pandemic relating to the COVID–19 Emergency has disrupted the U.S. economy with significantly increased unemployment and overall economic instability. This instability has carried over to real estate markets in general, including multifamily commercial markets. During these challenging times, HUD remains open for business and will continue as an active participant in sourcing new construction and refinance debt through its mortgage insurance programs. At the same time, HUD has reevaluated its underwriting requirements, particularly for market rate refinance transactions that may now experience increased vacancy, rent collection losses and income disruption both in the near and long term. Section 207 of the National Housing Act provides that no mortgage shall be acceptable for insurance unless the Secretary finds that the project is economically sound, and the MAP Guide permits specific mitigants to be employed to reduce risk for transactions currently in process but yet to receive a Firm Commitment to insure. These mitigants include but are not limited to the requirement of a Debt Service Reserve (DSR) for Section 223(f) transactions to offset anticipated operating losses post endorsement. To address risk and/or changed economic circumstances for transactions that have been issued a commitment to insure but have yet to endorse, HUD includes language in the Firm Commitment affirming that no material adverse change (MAC) has occurred between the issuance of the commitment and endorsement. Accordingly, HUD has taken the position that the impact of the COVID–19 Emergency has resulted in a material change in most, if not all, real estate markets and therefore, HUD will require mitigants to offset this additional risk. Accordingly, this form provides clarification and instructions to HUD staff describing additional mitigants that may be included in the Firm Commitment for Section 223(f) loans that are in processing, as well as for those projects for which a Firm Commitment has been issued. VerDate Sep<11>2014 16:42 Sep 03, 2020 Jkt 250001 Revisions to the OMB approved Form HUD–92476.1M is the temporary Escrow Agreement for Deferred Repairs & Debt Service—223(f). This form does not permanently replace the HUD– 92476.1M. The revised escrow, while based on the HUD–92476.1M, is a separate document for temporary use during the COVID–19 emergency pursuant to Mortgagee Letter 2020–11 issued April 10, 2020. The temporary Escrow Agreement for Deferred Repairs & Debt Service—223(f) Form will remain in effect until such time as HUD determines that the real estate markets that have been negatively affected by the COVID–19 Emergency have stabilized and additional mitigants for Section 223(f) transactions are no longer required. This new collection can be used to address future changes to multifamily programs or processes that may arise from impacts due to the COVID–19 pandemic. 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 to these questions. C. Authority Section 3507 of the Paperwork Reduction Act of 1995, 44 U.S.C. Chapter 35. Assistant Secretary for Housing—Federal Housing Commissioner, Dana T. Wade, having reviewed and approved this document, is delegating the authority to electronically sign this document to submitter, Nacheshia Foxx, who is the Federal Register Liaison for HUD, for purposes of publication in the Federal Register. PO 00000 Frm 00065 Fmt 4703 Sfmt 4703 Dated: September 1, 2020. Nacheshia Foxx, Federal Register Liaison for the Department of Housing and Urban Development. [FR Doc. 2020–19623 Filed 9–3–20; 8:45 am] BILLING CODE 4210–67–P DEPARTMENT OF THE INTERIOR Bureau of Land Management [LLNV952000 L14400000.BJ0000.LXSSF2210000.241A; MO #4500143868 TAS: 20X] Filing of Plats of Survey; Nevada Bureau of Land Management, Interior. ACTION: Notice. AGENCY: The purpose of this notice is to inform the public and interested State and local government officials of the filing of Plats of Survey in Nevada. DATES: Filing is applicable at 10:00 a.m. on the dates indicated below. FOR FURTHER INFORMATION CONTACT: Michael O. Harmening, Chief Cadastral Surveyor for Nevada, Bureau of Land Management, Nevada State Office, 1340 Financial Blvd., Reno, NV 89502–7147, phone: 775–861–6490. Persons who use a telecommunications device for the deaf (TDD) may call the Federal Information Relay Service (FIRS) at 1– 800–877–8339 to contact the above individual during normal business hours. The FIRS is available 24 hours a day, 7 days a week, to leave a message or question with the above individual. You will receive a reply during normal business hours. SUPPLEMENTARY INFORMATION: 1. The Plat of Survey of the following described lands was officially filed at the Bureau of Land Management (BLM) Nevada State Office, Reno, Nevada, on January 16, 2020. The plat, in one sheet, representing the dependent resurvey of Mineral Survey No. 3868, Township 12 North, Range 63 East, Mount Diablo Meridian, Nevada, under Group No. 992, was accepted January 14, 2020. This survey was executed to meet certain administrative needs of the Bureau of Land Management. 2. The Plat of Survey of the following described lands was officially filed at the Bureau of Land Management (BLM) Nevada State Office, Reno, Nevada, on May 14, 2020. The plat, in two sheets, representing the dependent resurvey of the Seventh Standard Parallel South, through a portion of Range 63 East, a portion of the subdivisional lines and potions of SUMMARY: E:\FR\FM\04SEN1.SGM 04SEN1

Agencies

[Federal Register Volume 85, Number 173 (Friday, September 4, 2020)]
[Notices]
[Pages 55315-55316]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-19623]



[[Page 55315]]

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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-7027-N-28]


60-Day Notice of Proposed Information Collection: COVID19 HUD 
Contingency Plan for HUD Multifamily Rental Project Closing Documents; 
OMB Control No.: 2502-0618

AGENCY: Office of Housing--Federal Housing Commissioner, HUD.

ACTION: Notice.

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

SUMMARY: In accordance with the Paperwork Reduction Act of 1995, HUD 
has requested from the Office of Management and Budget (OMB) emergency 
approval of the information collection described in this notice.

DATES: Comments Due Date: November 3, 2020.

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 
[email protected] 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 toll-free Federal Relay 
Service at (800) 877-8339.

FOR FURTHER INFORMATION CONTACT: Colette Pollard, Reports Management 
Officer, QDAM, Department of Housing and Urban Development, 451 7th 
Street SW, Washington, DC 20410; email Colette Pollard at 
[email protected] or telephone 202-402-3400. Persons with hearing 
or speech impairments may access this number through TTY by calling the 
toll-free Federal Relay Service at (800) 877-8339. This is not a toll-
free number. Copies of available documents submitted to OMB may be 
obtained from Ms. Pollard.

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: COVID19 HUD Contingency Plan for 
HUD Multifamily Rental Project Closing Documents.
    OMB Approval Number: 2502-0618.
    Type of Request: New Collection.
    Form Numbers: HUD-5985 & HUD-5960.
    Respondents: Business or other for-profit, Not-for-profit 
institutions, State, Local or Tribal Government.
    Estimated Number of Respondents: 612.
    Estimated Number of Responses: 1,224.
    Frequency of Response: Twice per annum.
    Average Hours per Response: 1.00 hour [0.50 x 2 = 1 hour].
    Total Estimated Burdens: 1,224.
    Description of the need for the information and proposed use: This 
is a new collection based on situational conditions relating to the 
COVID-19 Coronavirus outbreak and the Presidential declaration that 
began a national emergency. This new PRA collection will serve as the 
authority for any new or future changes or revisions to multifamily 
programs impacted by COVID-19 or related pandemics.
    The Lender's Certificate, HUD-92434, establishes the conditions, 
which the Lender agrees to abide by in consideration of HUD's 
commitment to FHA-insure mortgages, and by which the Lender certifies 
that the conditions have been fulfilled to date, including any work 
done prior to endorsement of the Note that has been approved by HUD in 
writing, and all HUD imposed conditions that have been met with respect 
to such work. The information collection requirements contained in the 
Lender's Certificate are to oversee the parties' compliance with all 
applicable legal requirements and therefore ensure protection of the 
FHA insurance fund. The HUD-92434M is required by the Closing 
Checklists via the Firm Commitment (Housing Notice 2018-03) and per the 
fact that the underlying forms contemplate hardcopy submission (since 
HUD historically has not accepted electronic submission of documents 
for closing purposes). The Lender's Certification Regarding: Electronic 
Submission of Closing Documents is a modification of the HUD-92434M 
that will set the Office of General Counsel's (``OGC'') temporary 
uniform electronic closing protocols until normal closing can resume 
after the COVID-19 Pandemic.
    Relating to the current COVID-19 Coronavirus outbreak and the 
President declaring a national emergency the Department of Housing and 
Urban Development (``HUD'') and its offices remain open for business at 
this time, many are now engaged in full-time telework. It is therefore 
prudent and appropriate for the OGC, in collaboration with Multifamily 
to establish protocols, rules, and procedures that best ensure 
continuity of operations in the event of an extended closure of a 
specific division, regional or field office, or the determination that 
OGC in its entirety should work remotely. Pursuant to the March 16, 
2020 HUD Memorandum issued for all Regional Counsel and Deputy Regional 
Counsel, all Associate Regional Counsel for Programs and all OGC 
Closing Attorneys, set forth protocols and best practices for the 
continued provision of legal services by HUD Closing Attorneys while 
working from home or from another remote location. Also included in the 
memorandum are suggestions that may be shared with outside counsel to 
facilitate the work being done remotely by OGC attorneys. Therefore, 
Regional Counsel will ensure that the temporary protocols set forth in 
the March 16, 2020 memorandum are adopted and applied consistently 
across the regional and field offices within their purview. When the 
pandemic subsides and OGC resumes normal closing operations 
consistently across the country, HUD will reconsider the temporary 
protocols in this memorandum. OGC attorney protocols for review and 
approval of draft closing documents must rely on electronic 
transmission of closing documents in lieu of hard copies in performing 
their initial reviews. This approach will ensure the continuation of 
reviews even if our external partners are unable to physically transmit 
the volume of paper documents needed at this stage. While providing 
increased flexibility to lenders in submitting closing documents, this 
protocol does not authorize any additional substantive modifications to 
the closing process without approval of the appropriate Regional 
Counsel and the Office of Insured Housing in Headquarters. Draft 
closing submission will remain consistent with the approach of 
Multifamily Housing and OGC will accept draft closing packages in fully 
electronic form.
    Respondents: Estimation for the Escrow Agreement for Deferred 
Repairs & Debt Service--223(f)--(one closing):
    Estimated Number of Respondents: 330.
    Estimated Number of Responses: 330.
    Frequency of Response: Once per annum.
    Average Hours per Response: .50 hours.
    Total Estimated Burdens: 165.
    Description of the need for the information and proposed use: The 
form Escrow Agreement for Deferred Repairs & Debt Service--223(f) 
(``Debt Service Escrow Agreement''), sets the terms and conditions 
between the Borrower and Lender and provides for the establishment of 
an escrow by the

[[Page 55316]]

Borrower as security for completion of non-critical deferred repairs. 
Such escrow also serves as security for HUD's insurance of the loan. 
The agreement provides for prior approval of HUD for certain actions to 
be taken by the Borrower or Lender. The information collection 
requirements contained in Debt Service Escrow Agreement are to oversee 
the parties' compliance with all applicable legal requirements and 
therefore ensure protection of the FHA insurance fund.
    The global pandemic relating to the COVID-19 Emergency has 
disrupted the U.S. economy with significantly increased unemployment 
and overall economic instability. This instability has carried over to 
real estate markets in general, including multifamily commercial 
markets. During these challenging times, HUD remains open for business 
and will continue as an active participant in sourcing new construction 
and refinance debt through its mortgage insurance programs. At the same 
time, HUD has reevaluated its underwriting requirements, particularly 
for market rate refinance transactions that may now experience 
increased vacancy, rent collection losses and income disruption both in 
the near and long term. Section 207 of the National Housing Act 
provides that no mortgage shall be acceptable for insurance unless the 
Secretary finds that the project is economically sound, and the MAP 
Guide permits specific mitigants to be employed to reduce risk for 
transactions currently in process but yet to receive a Firm Commitment 
to insure. These mitigants include but are not limited to the 
requirement of a Debt Service Reserve (DSR) for Section 223(f) 
transactions to offset anticipated operating losses post endorsement. 
To address risk and/or changed economic circumstances for transactions 
that have been issued a commitment to insure but have yet to endorse, 
HUD includes language in the Firm Commitment affirming that no material 
adverse change (MAC) has occurred between the issuance of the 
commitment and endorsement. Accordingly, HUD has taken the position 
that the impact of the COVID-19 Emergency has resulted in a material 
change in most, if not all, real estate markets and therefore, HUD will 
require mitigants to offset this additional risk. Accordingly, this 
form provides clarification and instructions to HUD staff describing 
additional mitigants that may be included in the Firm Commitment for 
Section 223(f) loans that are in processing, as well as for those 
projects for which a Firm Commitment has been issued.
    Revisions to the OMB approved Form HUD-92476.1M is the temporary 
Escrow Agreement for Deferred Repairs & Debt Service--223(f). This form 
does not permanently replace the HUD-92476.1M. The revised escrow, 
while based on the HUD-92476.1M, is a separate document for temporary 
use during the COVID-19 emergency pursuant to Mortgagee Letter 2020-11 
issued April 10, 2020. The temporary Escrow Agreement for Deferred 
Repairs & Debt Service--223(f) Form will remain in effect until such 
time as HUD determines that the real estate markets that have been 
negatively affected by the COVID-19 Emergency have stabilized and 
additional mitigants for Section 223(f) transactions are no longer 
required.
    This new collection can be used to address future changes to 
multifamily programs or processes that may arise from impacts due to 
the COVID-19 pandemic.

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 to 
these questions.

C. Authority

    Section 3507 of the Paperwork Reduction Act of 1995, 44 U.S.C. 
Chapter 35.

    Assistant Secretary for Housing--Federal Housing Commissioner, 
Dana T. Wade, having reviewed and approved this document, is 
delegating the authority to electronically sign this document to 
submitter, Nacheshia Foxx, who is the Federal Register Liaison for 
HUD, for purposes of publication in the Federal Register.

    Dated: September 1, 2020.
Nacheshia Foxx,
Federal Register Liaison for the Department of Housing and Urban 
Development.
[FR Doc. 2020-19623 Filed 9-3-20; 8:45 am]
BILLING CODE 4210-67-P