30-Day Notice of Proposed Information Collection: HUD Multifamily Rental Project Closing Documents; OMB Control No.: 2502-0598, 63570-63572 [2020-22338]

Download as PDF 63570 Federal Register / Vol. 85, No. 196 / Thursday, October 8, 2020 / Notices may access this number via TTY by calling the Federal Relay during working hours at 800–877–8339. (This is a toll-free number.) HUD encourages submission of questions about the demonstration be sent to HCVmobility demonstration@hud.gov. On July 15, 2020 (85 FR 42890), HUD published its Notice implementing the HCV Mobility Demonstration, and established October 13, 2020 as the deadline date for the submission of applications. Through the Notice, HUD is making available approximately $50 million for grants to Public Housing Authorities (PHAs) under a demonstration program authorized by statute. Today’s Federal Register publication extends the deadline date for the submission of applications for the HCV Mobility Demonstration program to December 14, 2020. HUD is extending the application submission deadline date to ensure that delays or complications due to the COVID–19 Coronavirus do not cause undue hardship or otherwise prevent applicants from submitting complete applications. SUPPLEMENTARY INFORMATION: khammond on DSKJM1Z7X2PROD with NOTICES Deadline for Applications The lead agency shall be responsible for submitting the application to HUD, no later than December 14, 2020. Applications that are submitted after midnight on December 14, 2020, or which fail to include the required elements, will be ineligible for consideration by HUD. HUD may extend the application deadline for any program if HUD.gov systems are offline or not available to applicants for at least 24 hours immediately prior to the deadline date, or if the system is down for 24 hours or longer and that impacts the ability of applicants to cure a submission deficiency within the grace period. HUD may also extend the application deadline upon request if there is a presidentially-declared disaster in the applicant’s area. If these events occur, HUD will post a notice on its website establishing the new, extended deadline for the affected applicants. R. Hunter Kurtz, Assistant Secretary for Public and Indian Housing. [FR Doc. 2020–22130 Filed 10–7–20; 8:45 am] BILLING CODE 4210–67–P VerDate Sep<11>2014 17:48 Oct 07, 2020 Jkt 253001 DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT [Docket No. FR–7024–N–42] 30-Day Notice of Proposed Information Collection: HUD Multifamily Rental Project Closing Documents; OMB Control No.: 2502–0598 Office of the Chief Information Officer, HUD. ACTION: Notice. AGENCY: HUD has submitted the proposed information collection requirement described below to the Office of Management and Budget (OMB) for review, in accordance with the Paperwork Reduction Act. The purpose of this notice is to allow for an additional 30 days of public comment. DATES: Comments Due Date: November 9, 2020. ADDRESSES: Interested persons are invited to submit comments regarding this proposal. Written comments and recommendations for the proposed information collection should be sent within 30 days of publication of this notice to www.reginfo.gov/public/do/ Start Printed Page 15501PRAMain. Find this particular information collection by selecting ‘‘Currently under 30-day Review—Open for Public Comments’’ or by using the search function. 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 has submitted to OMB a request for approval of the information collection described in Section A. The Federal Register notice that solicited public comment on the information collection for a period of 60 days was published on May 18, 2020 at 85 FR 29736. SUMMARY: A. Overview of Information Collection Title of Information Collection: HUD Multifamily Rental Project Closing Documents. OMB Approval Number: 2502–0598. OMB Expiration Date: 09/30/2021. Type of Request: Revision of currently approved collection. Form Number Being Revised: HUD– 92420M. PO 00000 Frm 00071 Fmt 4703 Sfmt 4703 Description of the need for the information and proposed use: The form, Subordination Agreement, HUD– 92420M, is used in FHA-insured multifamily rental project loan closings with secured, publicly financed secondary debt, often to promote affordable housing. The document is used to subordinate such secured, secondary financing to the lien of the FHA-insured mortgage, which must be in a first lien position as required by the National Housing Act (12 U.S.C. 1701 et. seq.), on terms and conditions that are legally and administratively acceptable to HUD. The Subordination Agreement is part of a larger information collection (OMB Control No. 2502–0598) that consists of numerous other closing forms (Closing Documents) used in FHA-insured multifamily transactions. The Closing Documents, including the Subordination Agreement, were last updated pursuant to the Paperwork Reduction Act (PRA) in 2018. However, HUD was not able to complete its review of public comments received in connection with the 30-day Federal Register notice (83 FR 29815; 30-day notice) published for the previous PRA renewal for the Closing Documents prior to the OMB deadline. Therefore, when HUD initiates a new PRA process for the Closing Documents later this year, it will include, as a starting point, changes HUD anticipated making in response to the public comments received with the 30-day notice. Notwithstanding, due to concerns that state and local housing finance agencies (HFAs) have expressed concerning certain terms and conditions in the 2018 Subordination Agreement, HUD is initiating this separate PRA renewal effort in order to allow HFAs and other interested members of the public an opportunity to comment on the form and HUD to make agreed upon changes on a more immediate timeline. It is HUD’s goal that the PRA process for the Subordination Agreement will result in a form that is widely accepted by HFAs to promote greater efficiency and consistency in the FHA multifamily closing process, while also allowing flexibility for HFA requested changes necessary for state or local law, as discussed immediately below. Revisions to the Subordination Agreement HUD added the following instruction at the request of OMB given HUD’s policy of considering requested Subordination Agreement changes to accommodate state or local law: ‘‘HUD will consider requested changes to this form that are necessary to comply with E:\FR\FM\08OCN1.SGM 08OCN1 khammond on DSKJM1Z7X2PROD with NOTICES Federal Register / Vol. 85, No. 196 / Thursday, October 8, 2020 / Notices state or local law. All such requests must be accompanied by a substantive explanation prepared by counsel to the Subordinate Lender. HUD’s written acceptance of any changes for state or local law will result in a template Subordination Agreement–Public, for a given jurisdiction and program. Consistent with the PRA, permission to use any such HUD-approved template will expire upon implementation of the next OMB-approved version of this form. When a new OMB form is issued, public lenders may request HUD consideration of changes to the new form in accordance with the level of flexibility the new form provides.’’ HUD notes that the underlying PRA burden estimate for the Subordination Agreement now accounts for any legal opinions that may be required to justify state or local law changes. Similarly, HUD added an instruction in section 3(b) to ensure the Subordination Agreement is consistent with existing HUD policy allowing an exception (on a case-by-case basis) to the requirement that the subordinate loan mature no earlier than the FHAinsured senior loan for deal-specific situations where the resulting risk is appropriately underwritten. Outside of this allowance to permit maturity of the subordinate loan before the FHAinsured senior loan and other existing instructions allowing flexibility for certain other terms (e.g., section 3(c)(4) exception to prohibition against compounding interest for LIHTC transactions), HUD does not anticipate accommodating deal-specific requests for additional changes to the form. HFAs and other interested parties are encouraged to request, and provide a rationale for, any changes deemed necessary during this PRA process. In response to the 30-day notice, one commenter objected to section 3(c) that requires HUD language be inserted into the subordinate note because many subordinate lenders use pre-approved template documents. HUD rejects this comment because FHA-insured multifamily financing is a national program that requires uniformity to ensure fairness and efficiency in closings. Thus, it is critical that every subordinate loan contain the HUD required language in order to accomplish this goal. HUD is, however, sympathetic to the fact that various HFAs have templates that must go through an approval process; therefore, HUD will permit the HUD-required subordinate note language to be incorporated by reference into the subordinate note. HUD also rejects a comment objecting to section 3(c)(3) that restricts a transfer VerDate Sep<11>2014 17:48 Oct 07, 2020 Jkt 253001 of the subordinate note without HUD consent. Section 3(c)(3) reflects HUD’s longstanding policy that Surplus Cash Notes are not negotiable instruments or transferable without HUD consent. This policy has been in existence since at least 2011, and since 2002 with the then applicable Secondary Financing Rider that was included in the 2002 MAP Guide The rationale behind this policy is that HUD needs to be able to assess whether such transfers will cause unacceptable risk to the project. A commenter objected to the language in section 3(c)(6) that the terms and provisions of the subordinate lender’s note are enforceable by HUD and cannot be amended without HUD’s consent. HUD rejects this comment. This is standard language in several of the Closing Documents. Changing the terms of the subordinate loan without HUD consent could negatively impact HUD. In response to an informal comment received from an outside party concerning the policy change previously made in in section 6(b) to allow subordinate lenders to exercise their remedies for subordinate loan defaults after a 180-day standstill, HUD proposes to explicitly clarify that such exercise of remedies is only available for covenant events of default, and not monetary events of default. This clarification is consistent with the rationale discussed in the 60-day Federal Register notice published on September 5, 2017 (82 FR 41977). One commenter took issue with the section 7(b) prohibition against a crossdefault provision in the subordinate loan documents. HUD rejects this comment as a cross-default prohibition has been in the form since its adoption in 2011. Numerous transactions with public secondary debt have closed without any objection to the prohibition, which can also be found in the MAP Guide. The FHA lender and HUD must control what happens to the property in the event of a default under the FHA-insured loan and whether to remove the borrower through a foreclosure, not the subordinate lender. One commenter objected to the requirement in section 10(c) that the maturity on the subordinate loan automatically be extended if the FHA loan is extended due to a deferment of amortization or forbearance. HUD rejects this comment as the language in question reflects current MAP Guide policy to reserve this protection as insurer of the first mortgage loan to allow maximum flexibility in distressed project situations. HUD agrees with an HFA’s request to remove language in section 10(e) that would force a subordinate lender to PO 00000 Frm 00072 Fmt 4703 Sfmt 4703 63571 allow an ownership change and assumption of its loan upon HUD approval. Further, HUD also agrees with an HFA’s request to remove the requirement in section 10(f) that limits the funds the subordinate lender can receive upon transfer or sale of the property to 75% of net proceeds; HUD will be making a corresponding change to remove this requirement from the MAP Guide. Respondents (i.e., affected public): FHA lenders, borrowers, housing finance agencies and other government agencies that support affordable housing, and HFA counsel. Estimated Number of Respondents: 17,468. Estimated Number of Responses: 17,468. Frequency of Response: Once per annum. Average Hours per Response: 1.5 hours. Total Estimated Burden: 14,286.85. 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. (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. (5) Ways to minimize the burden of the collection of information on those who are respond, including the use of automated collection techniques or other forms of information technology. HUD requests that commenters provide comments and proposed changes in narrative and/or bulleted form, accompanied by a detailed explanation and rationale for each requested change. Commenters may include in their detailed explanation and rationale the relevant excerpt(s) from the Subordination Agreement with redlines/strikeouts. Authority: Section 3507 of the Paperwork Reduction Act of 1995, 44 U.S.C. Chapter 3507. E:\FR\FM\08OCN1.SGM 08OCN1 63572 Federal Register / Vol. 85, No. 196 / Thursday, October 8, 2020 / Notices Department Reports Management Officer for the Office of the Chief Information Officer, Colette Pollard, 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: October 5, 2020. Nacheshia Foxx, Federal Register Liaison for the Department of Housing and Urban Development. [FR Doc. 2020–22338 Filed 10–7–20; 8:45 am] BILLING CODE 4210–67–P DEPARTMENT OF THE INTERIOR National Park Service [NPS–WASO–D–COS–POL–30832; PPWODIREP0; PPMPSAS1Y.YP0000] Notice of the December 10, 2020, Teleconference Meeting of the National Park System Advisory Board National Park Service, Interior. ACTION: Notice of teleconference meeting. AGENCY: In accordance with the Federal Advisory Committee Act of 1972, the National Park Service (NPS) is hereby giving notice that the National Park System Advisory Board (Board) will meet as noted below. The agenda may include the review of proposed actions regarding the National Historic Landmarks (NHL) Program and National Natural Landmarks (NNL) Program. Interested parties are encouraged to submit written comments and recommendations that will be presented to the Board. Interested parties also may attend the board meeting and upon request may address the Board concerning an area’s national significance. SUMMARY: The teleconference meeting will be held on Thursday, December 10, 2020, from 11:00 a.m., until 5:00 p.m., Eastern Standard Time. For instructions on registering to attend, submitting written material, or giving an oral presentation at the meeting, please see guidance under FOR FURTHER INFORMATION CONTACT. ADDRESSES: The meeting will be held virtually at the date and time noted above. khammond on DSKJM1Z7X2PROD with NOTICES DATES: (a) For information concerning attending the Board meeting or to request to address the Board, contact Joshua FOR FURTHER INFORMATION CONTACT: VerDate Sep<11>2014 17:48 Oct 07, 2020 Jkt 253001 Winchell, Staff Director for the National Park System Advisory Board, Office of Policy, National Park Service, telephone (202) 641–4467, or email joshua_ winchell@nps.gov. (b) To submit a written statement specific to, or request information about, any NHL matter listed below, or for information about the NHL Program or NHL designation process and the effects of designation, contact Sherry A. Frear, RLA, Chief, National Register of Historic Places and National Historic Landmarks Program, National Park Service, email sherry_ frear@nps.gov. Written comments specific to any NHL matter listed below must be submitted by no later than December 8, 2020. (c) To submit a written statement specific to, or request information about, the NNL matter listed below, or for information about the Program or NNL designation process and the effects of designation, contact Heather Eggleston, Manager, National Natural Landmarks Program, National Park Service, email heather_eggleston@ nps.gov. Written comments specific to any NNL matter listed below must be submitted by no later than December 8, 2020. SUPPLEMENTARY INFORMATION: The Board has been established by authority of the Secretary of the Interior (Secretary) under 54 U.S.C. 100906 and is regulated by the Federal Advisory Committee Act. The Board will receive briefings and discuss topics related to improving the visitor experience in NPS managed units and workforce planning for the next century and may consider proposed NHL and NNL actions. The final agenda and briefing materials will be posted to the Board’s website prior to the meeting at https://www.nps.gov/ advisoryboard.htm. A. National Historic Landmarks (NHL) Program NHL Program matters will be considered, during which the Board may consider the following: Nominations for NHL Designation Alabama • Monroe County Courthouse, Monroeville, AL Arizona • Klagetoh (Leegito) Chapter House, Klagetoh, AZ Colorado • Colorado Fuel & Iron Co. Administrative Complex, Pueblo CO Florida • Dudley Farm, Newberry, Alachua County, FL Indiana PO 00000 Frm 00073 Fmt 4703 Sfmt 4703 • Fort Ouiatenon Archeological District, Tippecanoe County, IN Iowa • Surf Ballroom, Clear Lake, IA Maryland • Frieda Fromm-Reichmann Cottage, Rockville, MD • Tolson’s Chapel and School, Sharpsburg, MD Massachusetts • Mary Baker Eddy House, Lynn MA Texas • Hueco Tanks, El Paso County, TX Wisconsin • University of Wisconsin Arboretum, Madison, WI B. National Natural Landmarks (NNL) Program NNL Program matters will be considered, during which the Board may consider the following: Nomination for NNL Designation California • Lanphere and Ma-le’l Dunes, Humboldt County, CA The meeting is open to the public. Interested persons may choose to make oral comments at the meeting during the designated time for this purpose. Depending on the number of people wishing to comment and the time available, the amount of time for oral comments may be limited. Interested parties should contact the Staff Director for the Board (see FOR FURTHER INFORMATION CONTACT) for advance placement on the public speaker list for this meeting. Members of the public may also choose to submit written comments by emailing them to joshua_ winchell@nps.gov. Public Disclosure of Comments: Before including your address, phone number, email address, or other personal identifying information in your comment, you should be aware that your entire comment—including your personal identifying information—may be made publicly available at any time. While you can ask us in your comment to withhold your personal identifying information from public review, we cannot guarantee that we will be able to do so. Authority: 5 U.S.C. Appendix 2. Alma Ripps, Chief, Office of Policy. [FR Doc. 2020–22116 Filed 10–7–20; 8:45 am] BILLING CODE 4312–52–P E:\FR\FM\08OCN1.SGM 08OCN1

Agencies

[Federal Register Volume 85, Number 196 (Thursday, October 8, 2020)]
[Notices]
[Pages 63570-63572]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-22338]


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

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-7024-N-42]


30-Day Notice of Proposed Information Collection: HUD Multifamily 
Rental Project Closing Documents; OMB Control No.: 2502-0598

AGENCY: Office of the Chief Information Officer, HUD.

ACTION: Notice.

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

SUMMARY: HUD has submitted the proposed information collection 
requirement described below to the Office of Management and Budget 
(OMB) for review, in accordance with the Paperwork Reduction Act. The 
purpose of this notice is to allow for an additional 30 days of public 
comment.

DATES: Comments Due Date: November 9, 2020.

ADDRESSES: Interested persons are invited to submit comments regarding 
this proposal. Written comments and recommendations for the proposed 
information collection should be sent within 30 days of publication of 
this notice to www.reginfo.gov/public/do/Start Printed Page 
15501PRAMain. Find this particular information collection by selecting 
``Currently under 30-day Review--Open for Public Comments'' or by using 
the search function.

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 has 
submitted to OMB a request for approval of the information collection 
described in Section A. The Federal Register notice that solicited 
public comment on the information collection for a period of 60 days 
was published on May 18, 2020 at 85 FR 29736.

A. Overview of Information Collection

    Title of Information Collection: HUD Multifamily Rental Project 
Closing Documents.
    OMB Approval Number: 2502-0598.
    OMB Expiration Date: 09/30/2021.
    Type of Request: Revision of currently approved collection.
    Form Number Being Revised: HUD-92420M.
    Description of the need for the information and proposed use: The 
form, Subordination Agreement, HUD-92420M, is used in FHA-insured 
multifamily rental project loan closings with secured, publicly 
financed secondary debt, often to promote affordable housing. The 
document is used to subordinate such secured, secondary financing to 
the lien of the FHA-insured mortgage, which must be in a first lien 
position as required by the National Housing Act (12 U.S.C. 1701 et. 
seq.), on terms and conditions that are legally and administratively 
acceptable to HUD.
    The Subordination Agreement is part of a larger information 
collection (OMB Control No. 2502-0598) that consists of numerous other 
closing forms (Closing Documents) used in FHA-insured multifamily 
transactions. The Closing Documents, including the Subordination 
Agreement, were last updated pursuant to the Paperwork Reduction Act 
(PRA) in 2018. However, HUD was not able to complete its review of 
public comments received in connection with the 30-day Federal Register 
notice (83 FR 29815; 30-day notice) published for the previous PRA 
renewal for the Closing Documents prior to the OMB deadline. Therefore, 
when HUD initiates a new PRA process for the Closing Documents later 
this year, it will include, as a starting point, changes HUD 
anticipated making in response to the public comments received with the 
30-day notice.
    Notwithstanding, due to concerns that state and local housing 
finance agencies (HFAs) have expressed concerning certain terms and 
conditions in the 2018 Subordination Agreement, HUD is initiating this 
separate PRA renewal effort in order to allow HFAs and other interested 
members of the public an opportunity to comment on the form and HUD to 
make agreed upon changes on a more immediate timeline. It is HUD's goal 
that the PRA process for the Subordination Agreement will result in a 
form that is widely accepted by HFAs to promote greater efficiency and 
consistency in the FHA multifamily closing process, while also allowing 
flexibility for HFA requested changes necessary for state or local law, 
as discussed immediately below.

Revisions to the Subordination Agreement

    HUD added the following instruction at the request of OMB given 
HUD's policy of considering requested Subordination Agreement changes 
to accommodate state or local law: ``HUD will consider requested 
changes to this form that are necessary to comply with

[[Page 63571]]

state or local law. All such requests must be accompanied by a 
substantive explanation prepared by counsel to the Subordinate Lender. 
HUD's written acceptance of any changes for state or local law will 
result in a template Subordination Agreement-Public, for a given 
jurisdiction and program. Consistent with the PRA, permission to use 
any such HUD-approved template will expire upon implementation of the 
next OMB-approved version of this form. When a new OMB form is issued, 
public lenders may request HUD consideration of changes to the new form 
in accordance with the level of flexibility the new form provides.'' 
HUD notes that the underlying PRA burden estimate for the Subordination 
Agreement now accounts for any legal opinions that may be required to 
justify state or local law changes.
    Similarly, HUD added an instruction in section 3(b) to ensure the 
Subordination Agreement is consistent with existing HUD policy allowing 
an exception (on a case-by-case basis) to the requirement that the 
subordinate loan mature no earlier than the FHA-insured senior loan for 
deal-specific situations where the resulting risk is appropriately 
underwritten. Outside of this allowance to permit maturity of the 
subordinate loan before the FHA-insured senior loan and other existing 
instructions allowing flexibility for certain other terms (e.g., 
section 3(c)(4) exception to prohibition against compounding interest 
for LIHTC transactions), HUD does not anticipate accommodating deal-
specific requests for additional changes to the form. HFAs and other 
interested parties are encouraged to request, and provide a rationale 
for, any changes deemed necessary during this PRA process.
    In response to the 30-day notice, one commenter objected to section 
3(c) that requires HUD language be inserted into the subordinate note 
because many subordinate lenders use pre-approved template documents. 
HUD rejects this comment because FHA-insured multifamily financing is a 
national program that requires uniformity to ensure fairness and 
efficiency in closings. Thus, it is critical that every subordinate 
loan contain the HUD required language in order to accomplish this 
goal. HUD is, however, sympathetic to the fact that various HFAs have 
templates that must go through an approval process; therefore, HUD will 
permit the HUD-required subordinate note language to be incorporated by 
reference into the subordinate note.
    HUD also rejects a comment objecting to section 3(c)(3) that 
restricts a transfer of the subordinate note without HUD consent. 
Section 3(c)(3) reflects HUD's longstanding policy that Surplus Cash 
Notes are not negotiable instruments or transferable without HUD 
consent. This policy has been in existence since at least 2011, and 
since 2002 with the then applicable Secondary Financing Rider that was 
included in the 2002 MAP Guide The rationale behind this policy is that 
HUD needs to be able to assess whether such transfers will cause 
unacceptable risk to the project.
    A commenter objected to the language in section 3(c)(6) that the 
terms and provisions of the subordinate lender's note are enforceable 
by HUD and cannot be amended without HUD's consent. HUD rejects this 
comment. This is standard language in several of the Closing Documents. 
Changing the terms of the subordinate loan without HUD consent could 
negatively impact HUD.
    In response to an informal comment received from an outside party 
concerning the policy change previously made in in section 6(b) to 
allow subordinate lenders to exercise their remedies for subordinate 
loan defaults after a 180-day standstill, HUD proposes to explicitly 
clarify that such exercise of remedies is only available for covenant 
events of default, and not monetary events of default. This 
clarification is consistent with the rationale discussed in the 60-day 
Federal Register notice published on September 5, 2017 (82 FR 41977).
    One commenter took issue with the section 7(b) prohibition against 
a cross-default provision in the subordinate loan documents. HUD 
rejects this comment as a cross-default prohibition has been in the 
form since its adoption in 2011. Numerous transactions with public 
secondary debt have closed without any objection to the prohibition, 
which can also be found in the MAP Guide. The FHA lender and HUD must 
control what happens to the property in the event of a default under 
the FHA-insured loan and whether to remove the borrower through a 
foreclosure, not the subordinate lender.
    One commenter objected to the requirement in section 10(c) that the 
maturity on the subordinate loan automatically be extended if the FHA 
loan is extended due to a deferment of amortization or forbearance. HUD 
rejects this comment as the language in question reflects current MAP 
Guide policy to reserve this protection as insurer of the first 
mortgage loan to allow maximum flexibility in distressed project 
situations.
    HUD agrees with an HFA's request to remove language in section 
10(e) that would force a subordinate lender to allow an ownership 
change and assumption of its loan upon HUD approval. Further, HUD also 
agrees with an HFA's request to remove the requirement in section 10(f) 
that limits the funds the subordinate lender can receive upon transfer 
or sale of the property to 75% of net proceeds; HUD will be making a 
corresponding change to remove this requirement from the MAP Guide.
    Respondents (i.e., affected public): FHA lenders, borrowers, 
housing finance agencies and other government agencies that support 
affordable housing, and HFA counsel.
    Estimated Number of Respondents: 17,468.
    Estimated Number of Responses: 17,468.
    Frequency of Response: Once per annum.
    Average Hours per Response: 1.5 hours.
    Total Estimated Burden: 14,286.85.

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.
    (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.
    (5) Ways to minimize the burden of the collection of information on 
those who are respond, including the use of automated collection 
techniques or other forms of information technology.
    HUD requests that commenters provide comments and proposed changes 
in narrative and/or bulleted form, accompanied by a detailed 
explanation and rationale for each requested change. Commenters may 
include in their detailed explanation and rationale the relevant 
excerpt(s) from the Subordination Agreement with redlines/strikeouts.
    Authority: Section 3507 of the Paperwork Reduction Act of 1995, 44 
U.S.C. Chapter 3507.

[[Page 63572]]

    Department Reports Management Officer for the Office of the Chief 
Information Officer,
    Colette Pollard, 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: October 5, 2020.
Nacheshia Foxx,
Federal Register Liaison for the Department of Housing and Urban 
Development.
[FR Doc. 2020-22338 Filed 10-7-20; 8:45 am]
BILLING CODE 4210-67-P