Proposed Collection; Comment Request, 48023-48025 [2022-16855]
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[FR Doc. 2022–16950 Filed 8–3–22; 4:15 pm]
BILLING CODE 6715–01–P
FEDERAL HOUSING FINANCE
AGENCY
[No. 2022–N–8]
Proposed Collection; Comment
Request
Federal Housing Finance
Agency.
ACTION: 60-Day notice of submission of
information collection for approval from
Office of Management and Budget.
lotter on DSK11XQN23PROD with NOTICES1
AGENCY:
The Federal Housing Finance
Agency (FHFA), as part of its continuing
effort to reduce paperwork and
respondent burden, invites public
comments on an information collection
titled the ‘‘Affordable Housing
SUMMARY:
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17:20 Aug 04, 2022
Jkt 256001
48023
Program,’’ as required by the Paperwork
Reduction Act of 1995 (PRA). FHFA
intends to submit to the Office of
Management and Budget (OMB) the
information collection (assigned control
number 2590–0007 by OMB) for review
and approval of a three-year extension
and reinstatement of the control
number, which has expired.
DATES: Interested persons may submit
comments on or before October 4, 2022.
ADDRESSES: Submit comments to FHFA,
identified by ‘‘Proposed Collection;
Comment Request: ‘Affordable Housing
Program, (No. 2022–N–8)’ ’’ by any of
the following methods:
• Agency Website: www.fhfa.gov/
open-for-comment-or-input.
• Federal eRulemaking Portal: https://
www.regulations.gov. Follow the
instructions for submitting comments. If
you submit your comment to the
Federal eRulemaking Portal, please also
send it by email to FHFA at
RegComments@fhfa.gov to ensure
timely receipt by FHFA. Include the
following information in the subject line
of your submission: Comments (No.
2022–N–8).
• Mail/Hand Delivery: Federal
Housing Finance Agency, 400 Seventh
Street SW, Washington, DC 20219,
ATTENTION: Proposed Collection;
Comment Request: ‘‘Affordable Housing
Program, (No. 2022–N–8)’’.
We will post all public comments we
receive without change, including any
personal information you provide, such
as your name and address, email
address, and telephone number, on the
FHFA website at https://www.fhfa.gov.
Copies of all comments received will
be available for examination by the
public through the electronic comment
docket for this PRA Notice also located
on the FHFA website.
FOR FURTHER INFORMATION CONTACT: Eric
Howard, Principal Policy Analyst,
Eric.Howard@fhfa.gov, (202) 649–3009;
or Tiffani Moore, Supervisory Policy
Analyst, Tiffani.Moore@fhfa.gov, (202)
649–3304; or Angela Supervielle,
Counsel, Angela.Supervielle@fhfa.gov,
(202) 649–3973 (these are not toll-free
numbers); Federal Housing Finance
Agency, 400 Seventh Street SW,
Washington, DC 20219. For TTY/TRS
users with hearing and speech
disabilities, dial 711 and ask to be
connected to any of the contact numbers
above.
SUPPLEMENTARY INFORMATION:
approval from OMB for each collection
of information they conduct or sponsor.
‘‘Collection of information’’ is defined
in 44 U.S.C. 3502(3) and 5 CFR
1320.3(c) to include agency requests or
requirements that ten or more persons
submit information to a third party.
Section 3506(c)(2)(A) of title 44 requires
Federal agencies to provide a 60-day
notice 1 in the Federal Register
concerning each proposed collection of
information, including each proposed
extension of an existing collection of
information, before submitting the
collection of information to OMB for
approval. FHFA’s collection of
information set forth in this document
is titled the ‘‘Affordable Housing
Program’’ (assigned control number
2590–0007 by OMB). To comply with
the PRA requirement, FHFA is
publishing notice of a proposed threeyear extension of this collection of
information and reinstatement of the
control number, which has expired.
A. Background
1 Following the close of this notice’s 60-day
comment period, FHFA will publish a second
notice with a 30-day comment period as required
by 44 U.S.C. 3507(b) and 5 CFR 1320.10(a).
2 See 12 U.S.C. 1430(j)(1) and (2).
3 See 12 U.S.C. 1430(j)(5)(C).
1. Paperwork Reduction Act
Under the PRA (44 U.S.C. 3501–
3520), Federal agencies must obtain
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2. Affordable Housing Program
Section 10(j) of the Federal Home
Loan Bank Act (Bank Act) requires
FHFA to promulgate regulations under
which each of the 11 Federal Home
Loan Banks (Banks) must establish an
Affordable Housing Program (AHP) to
provide subsidy to the Bank’s member
institutions to finance: (1)
homeownership by households with
incomes at or below 80 percent of the
area median income (low- or moderateincome households); and (2) the
purchase, construction, or rehabilitation
of rental housing in which at least 20
percent of the units will be occupied by,
and affordable for, households earning
50 percent or less of the area median
income (very low-income households).2
Section 10(j) also establishes standards
and requirements for providing such
subsidized funding to Bank members
and requires each Bank to contribute 10
percent of its previous year’s net
earnings to its AHP annually, subject to
a minimum annual combined
contribution by the 11 Banks of $100
million.3
FHFA’s AHP regulation, which
implements the statutory AHP
requirements, is set forth at 12 CFR part
1291. The regulation requires that each
Bank establish and fund an AHP and
sets forth the parameters within which
the Banks’ programs must operate. The
regulation permits the Banks a degree of
discretion in determining how their
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Federal Register / Vol. 87, No. 150 / Friday, August 5, 2022 / Notices
individual programs are to be
implemented and requires that each
Bank adopt an AHP Implementation
Plan setting forth the specific
requirements for that Bank’s program.4
Competitive Application Programs
The AHP regulation requires each
Bank to establish a General Fund, which
is a competitive application program
under which the Bank accepts
applications for AHP subsidized
advances or direct subsidies (grants)
submitted by its members on behalf of
non-member entities having a
significant connection to the projects for
which subsidy is being sought (project
sponsors).5 The AHP regulation also
authorizes each Bank, in its discretion
to establish, on a phased-in basis, up to
three Targeted Funds, which are
competitive application programs under
which funds are targeted to address
specific affordable housing needs within
the Bank’s district that are either unmet,
have proven difficult to address through
the Bank’s General Fund, or align with
the objectives identified in the Bank’s
strategic plans.6 Each Bank accepts
applications for AHP subsidy under its
competitive application program(s)
during a specified number of funding
periods each year, as determined by the
Bank.7 A Bank must determine for each
application it receives whether the
proposed project meets the AHP
regulatory eligibility requirements.8 The
Bank must score each application
according to AHP regulatory and Bankspecific scoring guidelines, and approve
the highest scoring projects within that
funding period for AHP subsidy.9
The regulation provides that, prior to
each disbursement of AHP subsidy for
a project approved under a Bank’s
competitive application program(s), the
Bank must verify that the project
continues to meet the AHP regulatory
eligibility requirements, as well as all
commitments made in the approved
AHP application.10 As part of this
process, Banks typically require that the
member and project sponsor provide
documentation demonstrating
4 12
CFR 1291.13(b).
CFR 1291.21. Under the regulation, an AHP
project sponsor may be an entity that either: (1) has
an ownership interest in a rental project; (2) is
integrally involved in an owner-occupied project,
such as by exercising control over the planning,
development, or management of the project, or by
qualifying borrowers and providing or arranging
financing for the owners of the units; (3) operates
a loan pool; or (4) is a revolving loan fund. 12 CFR
1291.1 (definition of ‘‘sponsor’’).
6 12 CFR 1291.20(b).
7 12 CFR 1291.22(a).
8 12 CFR 1291.22(b)(1).
9 12 CFR 1291.22(c).
10 12 CFR 1291.30(c).
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5 12
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continuing compliance. In the event of
project noncompliance, a project
sponsor is required to make a reasonable
effort to cure the noncompliance within
a reasonable period of time.11
If the project sponsor cannot cure the
noncompliance within a reasonable
period of time, the regulation permits a
Bank to approve a modification to the
terms of an approved application that
would change the score that the
application received for the funding
period in which it was originally scored
and approved, had the changed facts
been operative at that time. Before a
Bank approves a modification: (i) the
project, incorporating the changes, must
continue to meet the regulatory
eligibility requirements; (ii) the
application, as reflective of the changes,
must continue to score high enough to
have been approved in the funding
period in which it was originally scored
and approved; and (iii) there must be
good cause for the modification, and the
analysis and justification for the
modification must be documented by
the Bank in writing.12
The regulation requires generally that
a Bank monitor owner-occupied and
rental projects receiving AHP subsidy
under its competitive application
program(s) prior to and after project
completion. During the initial
monitoring period, a Bank must
determine whether the project is making
satisfactory progress towards
completion, in compliance with the
commitments made in the approved
application, Bank policies, and the AHP
regulatory requirements. Following
project completion, the Bank must
determine whether satisfactory progress
is being made towards occupancy of the
project by eligible households.13 Within
a reasonable period of time after project
completion, the Bank must determine
whether the project meets the AHP
regulatory requirements and the
commitments made in the approved
application.14 During the long-term 15year monitoring period for rental
projects, subject to certain exceptions in
the AHP regulation, the Bank must
determine whether the household
incomes and rents in the project comply
with the income targeting and rent
commitments made in the approved
application.15 For both the initial and
long-term monitoring, a Bank must
review appropriate documentation
maintained by the project sponsor.
11 12
CFR 1291.60(b)(1).
CFR 1291.29(a).
13 12 CFR 1291.50(a)(1).
14 12 CFR 1291.50(a)(2).
15 12 CFR 1291.50(c)(1).
12 12
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Homeownership Set-Aside Programs
The AHP regulation also authorizes
each Bank, in its discretion, to allocate
up to the greater of $4.5 million or 35
percent of its annual required AHP
contribution to establish
homeownership set-aside programs for
the purpose of promoting
homeownership for low- or moderateincome households.16 Under these
homeownership set-aside programs, a
Bank provides AHP direct subsidies to
its members who, in turn, provide the
subsidies as grants to eligible
households for down payment, closing
cost, counseling cost or rehabilitation
assistance in connection with the
household’s purchase of a primary
residence or rehabilitation of an owneroccupied residence.17 Prior to the
Bank’s disbursement of a direct subsidy
under its homeownership set-aside
program(s), the member must agree that
the subsidy will be provided in
compliance with all applicable AHP
regulatory eligibility requirements.18
AHP Information Submitted by Banks to
FHFA
FHFA’s Data Reporting Manual (DRM)
requires each Bank to submit to FHFA
aggregate AHP information.19
Specifically, the DRM requires each
Bank to submit to FHFA project-level
information regarding its competitive
application program(s) and householdlevel information regarding its
homeownership set-aside program(s)
semi-annually. The information the
Banks are required to submit to FHFA
under the DRM is derived from the
documentation submitted by Bank
members and project sponsors that is
described above.
B. Need for and Use of the Information
Collection
The Banks use the AHP information
collected from Bank members and
project sponsors to determine whether:
(1) projects for which Bank members
and project sponsors are seeking
subsidies under the Banks’ competitive
application programs satisfy the
applicable statutory and regulatory
requirements and score highly enough
in comparison with other applications
submitted during the same funding
period to be approved for AHP
subsidies; (2) projects approved under
16 12
CFR 1291.12(b); 1291.40.
CFR 1291.42(d).
18 12 CFR 1291.15(a).
19 The AHP reporting requirements are located in
chapter 5 of the DRM, which is available
electronically on FHFA’s public website at https://
www.fhfa.gov/SupervisionRegulation/FederalHome
LoanBanks/Documents/FHFB-Resolutions/2006/
2006-13-Attachment.pdf.
17 12
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Federal Register / Vol. 87, No. 150 / Friday, August 5, 2022 / Notices
the Banks’ competitive application
programs continue to meet the
applicable AHP regulatory requirements
and comply with the commitments
made in the approved applications each
time AHP subsidy is disbursed by the
Banks, through their members, to the
project sponsors; (3) requests for
modifications of projects approved
under the Banks’ competitive
application programs meet the AHP
regulatory requirements for approval; (4)
during the initial monitoring period,
projects approved under the Banks’
competitive application programs are
making satisfactory progress towards
completion, are making satisfactory
progress towards occupancy of the
project by eligible households after
completion, and, within a reasonable
period of time after completion, are in
compliance with the commitments
made in the approved applications,
Bank policies, and the AHP regulatory
requirements; (5) during the long-term
15-year monitoring period, completed
rental projects continue to comply with
the household income targeting and rent
commitments made in the approved
applications; and (6) applications for
direct subsidy under Banks’
homeownership set-aside programs
were approved, and the direct subsidies
disbursed, in accordance with the AHP
regulatory requirements.
FHFA uses the information required
to be submitted by the Banks under the
DRM to verify that the Banks’ funding
decisions, and the use of the funds
awarded, were consistent with statutory
and regulatory requirements.
lotter on DSK11XQN23PROD with NOTICES1
C. Burden Estimate
FHFA has analyzed each of the six
facets of this information collection in
order to estimate the hour burdens that
the collection will impose upon Bank
members and AHP project sponsors
annually over the next three years.
Based on that analysis, FHFA estimates
that the total annual hour burden will
be 92,649. The method FHFA used to
determine the annual hour burden for
each facet of the information collection
is explained in detail below.
I. AHP Competitive Applications
Submissions
FHFA estimates that Bank members,
on behalf of project sponsors, will
submit to the Banks an annual average
of 1,250 applications for AHP subsidies
under the Banks’ competitive
application programs, and that the
average preparation time for each
application will be 24 hours. The
estimate for the total annual hour
burden on members and project
sponsors in connection with the
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17:20 Aug 04, 2022
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preparation and submission of AHP
competitive applications is, therefore,
30,000 hours (1,250 applications × 24
hours).
II. Compliance Submissions for
Approved Competitive Application
Projects at AHP Subsidy Disbursement
FHFA estimates that Bank members,
on behalf of project sponsors, will make
an annual average of 345 submissions to
the Banks documenting that projects
approved under the Banks’ competitive
application programs continue to
comply with the AHP regulatory
eligibility requirements and all
commitments made in the approved
AHP applications at the time each AHP
subsidy is disbursed to the project
sponsors, and that the average
preparation time for each submission
will be 1 hour. The estimate for the total
annual hour burden on members and
project sponsors in connection with the
preparation and submission of these
compliance submissions is, therefore,
345 hours (345 submissions × 1 hour).
III. Modification Requests for Approved
Competitive Application Projects
FHFA estimates that Bank members,
on behalf of project sponsors, will
submit to the Banks an annual average
of 318 requests for modifications to
projects that have been approved under
the Banks’ competitive application
programs, and that the average
preparation time for each request will be
2.5 hours. The estimate for the total
annual hour burden on members and
project sponsors in connection with the
preparation and submission of these
modification requests, therefore, is 795
hours (318 requests × 2.5 hours).
IV. Initial Monitoring Submissions for
Approved Competitive Application
Projects
FHFA estimates that project sponsors
will make an annual average of 265
submissions of documentation to the
Banks for purposes of the Banks’ initial
monitoring of in-progress and recently
completed projects approved under
their competitive application programs,
and that the average preparation time
for each submission will be 5 hours. The
estimate for the total annual hour
burden on project sponsors in
connection with the preparation and
submission of documentation required
for initial monitoring of competitive
application projects is, therefore, 1,325
hours (265 submissions × 5 hours).
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48025
V. Long-Term Monitoring Submissions
for Completed Competitive Application
Rental Projects
FHFA estimates that project sponsors
will make an annual average of 3,178
submissions of documentation to the
Banks for purposes of the Banks’ longterm monitoring of completed rental
projects approved under their
competitive application programs, and
that the average preparation time for
each submission will be 3 hours. The
estimate for the total annual hour
burden on project sponsors in
connection with the preparation and
submission of documentation required
for long-term monitoring of completed
competitive application rental projects
is, therefore, 9,534 hours (3,178
submissions × 3 hours).
VI. Homeownership Set-Aside Program
Applications and Certifications
FHFA estimates that Bank members
will submit to the Banks an annual
average of 10,130 applications and
required certifications for AHP direct
subsidies under the Banks’
homeownership set-aside programs, and
that the average preparation time for
those submissions will be 5 hours. The
estimate for the total annual hour
burden on members in connection with
the preparation and submission of
homeownership set-aside program
applications and certifications is,
therefore, 50,650 hours (10,130
applications/certifications × 5 hours).
D. Public Comments Request
Written comments are requested on:
(1) whether the collection of
information is necessary for the proper
performance of FHFA functions,
including whether the information has
practical utility; (2) the accuracy of
FHFA’s estimates of the burdens of the
collection of information; (3) ways to
enhance the quality, utility, and clarity
of the information collected; and (4)
ways to minimize the burden of the
collection of information on members
and project sponsors, including through
the use of automated collection
techniques or other forms of information
technology.
Shawn Bucholtz,
Chief Data Officer, Federal Housing Finance
Agency.
[FR Doc. 2022–16855 Filed 8–4–22; 8:45 am]
BILLING CODE 8070–01–P
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Agencies
[Federal Register Volume 87, Number 150 (Friday, August 5, 2022)]
[Notices]
[Pages 48023-48025]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-16855]
=======================================================================
-----------------------------------------------------------------------
FEDERAL HOUSING FINANCE AGENCY
[No. 2022-N-8]
Proposed Collection; Comment Request
AGENCY: Federal Housing Finance Agency.
ACTION: 60-Day notice of submission of information collection for
approval from Office of Management and Budget.
-----------------------------------------------------------------------
SUMMARY: The Federal Housing Finance Agency (FHFA), as part of its
continuing effort to reduce paperwork and respondent burden, invites
public comments on an information collection titled the ``Affordable
Housing Program,'' as required by the Paperwork Reduction Act of 1995
(PRA). FHFA intends to submit to the Office of Management and Budget
(OMB) the information collection (assigned control number 2590-0007 by
OMB) for review and approval of a three-year extension and
reinstatement of the control number, which has expired.
DATES: Interested persons may submit comments on or before October 4,
2022.
ADDRESSES: Submit comments to FHFA, identified by ``Proposed
Collection; Comment Request: `Affordable Housing Program, (No. 2022-N-
8)' '' by any of the following methods:
Agency Website: www.fhfa.gov/open-for-comment-or-input.
Federal eRulemaking Portal: https://www.regulations.gov.
Follow the instructions for submitting comments. If you submit your
comment to the Federal eRulemaking Portal, please also send it by email
to FHFA at [email protected] to ensure timely receipt by FHFA.
Include the following information in the subject line of your
submission: Comments (No. 2022-N-8).
Mail/Hand Delivery: Federal Housing Finance Agency, 400
Seventh Street SW, Washington, DC 20219, ATTENTION: Proposed
Collection; Comment Request: ``Affordable Housing Program, (No. 2022-N-
8)''.
We will post all public comments we receive without change,
including any personal information you provide, such as your name and
address, email address, and telephone number, on the FHFA website at
https://www.fhfa.gov.
Copies of all comments received will be available for examination
by the public through the electronic comment docket for this PRA Notice
also located on the FHFA website.
FOR FURTHER INFORMATION CONTACT: Eric Howard, Principal Policy Analyst,
[email protected], (202) 649-3009; or Tiffani Moore, Supervisory
Policy Analyst, [email protected], (202) 649-3304; or Angela
Supervielle, Counsel, [email protected], (202) 649-3973
(these are not toll-free numbers); Federal Housing Finance Agency, 400
Seventh Street SW, Washington, DC 20219. For TTY/TRS users with hearing
and speech disabilities, dial 711 and ask to be connected to any of the
contact numbers above.
SUPPLEMENTARY INFORMATION:
A. Background
1. Paperwork Reduction Act
Under the PRA (44 U.S.C. 3501-3520), Federal agencies must obtain
approval from OMB for each collection of information they conduct or
sponsor. ``Collection of information'' is defined in 44 U.S.C. 3502(3)
and 5 CFR 1320.3(c) to include agency requests or requirements that ten
or more persons submit information to a third party. Section
3506(c)(2)(A) of title 44 requires Federal agencies to provide a 60-day
notice \1\ in the Federal Register concerning each proposed collection
of information, including each proposed extension of an existing
collection of information, before submitting the collection of
information to OMB for approval. FHFA's collection of information set
forth in this document is titled the ``Affordable Housing Program''
(assigned control number 2590-0007 by OMB). To comply with the PRA
requirement, FHFA is publishing notice of a proposed three-year
extension of this collection of information and reinstatement of the
control number, which has expired.
---------------------------------------------------------------------------
\1\ Following the close of this notice's 60-day comment period,
FHFA will publish a second notice with a 30-day comment period as
required by 44 U.S.C. 3507(b) and 5 CFR 1320.10(a).
---------------------------------------------------------------------------
2. Affordable Housing Program
Section 10(j) of the Federal Home Loan Bank Act (Bank Act) requires
FHFA to promulgate regulations under which each of the 11 Federal Home
Loan Banks (Banks) must establish an Affordable Housing Program (AHP)
to provide subsidy to the Bank's member institutions to finance: (1)
homeownership by households with incomes at or below 80 percent of the
area median income (low- or moderate-income households); and (2) the
purchase, construction, or rehabilitation of rental housing in which at
least 20 percent of the units will be occupied by, and affordable for,
households earning 50 percent or less of the area median income (very
low-income households).\2\ Section 10(j) also establishes standards and
requirements for providing such subsidized funding to Bank members and
requires each Bank to contribute 10 percent of its previous year's net
earnings to its AHP annually, subject to a minimum annual combined
contribution by the 11 Banks of $100 million.\3\
---------------------------------------------------------------------------
\2\ See 12 U.S.C. 1430(j)(1) and (2).
\3\ See 12 U.S.C. 1430(j)(5)(C).
---------------------------------------------------------------------------
FHFA's AHP regulation, which implements the statutory AHP
requirements, is set forth at 12 CFR part 1291. The regulation requires
that each Bank establish and fund an AHP and sets forth the parameters
within which the Banks' programs must operate. The regulation permits
the Banks a degree of discretion in determining how their
[[Page 48024]]
individual programs are to be implemented and requires that each Bank
adopt an AHP Implementation Plan setting forth the specific
requirements for that Bank's program.\4\
---------------------------------------------------------------------------
\4\ 12 CFR 1291.13(b).
---------------------------------------------------------------------------
Competitive Application Programs
The AHP regulation requires each Bank to establish a General Fund,
which is a competitive application program under which the Bank accepts
applications for AHP subsidized advances or direct subsidies (grants)
submitted by its members on behalf of non-member entities having a
significant connection to the projects for which subsidy is being
sought (project sponsors).\5\ The AHP regulation also authorizes each
Bank, in its discretion to establish, on a phased-in basis, up to three
Targeted Funds, which are competitive application programs under which
funds are targeted to address specific affordable housing needs within
the Bank's district that are either unmet, have proven difficult to
address through the Bank's General Fund, or align with the objectives
identified in the Bank's strategic plans.\6\ Each Bank accepts
applications for AHP subsidy under its competitive application
program(s) during a specified number of funding periods each year, as
determined by the Bank.\7\ A Bank must determine for each application
it receives whether the proposed project meets the AHP regulatory
eligibility requirements.\8\ The Bank must score each application
according to AHP regulatory and Bank-specific scoring guidelines, and
approve the highest scoring projects within that funding period for AHP
subsidy.\9\
---------------------------------------------------------------------------
\5\ 12 CFR 1291.21. Under the regulation, an AHP project sponsor
may be an entity that either: (1) has an ownership interest in a
rental project; (2) is integrally involved in an owner-occupied
project, such as by exercising control over the planning,
development, or management of the project, or by qualifying
borrowers and providing or arranging financing for the owners of the
units; (3) operates a loan pool; or (4) is a revolving loan fund. 12
CFR 1291.1 (definition of ``sponsor'').
\6\ 12 CFR 1291.20(b).
\7\ 12 CFR 1291.22(a).
\8\ 12 CFR 1291.22(b)(1).
\9\ 12 CFR 1291.22(c).
---------------------------------------------------------------------------
The regulation provides that, prior to each disbursement of AHP
subsidy for a project approved under a Bank's competitive application
program(s), the Bank must verify that the project continues to meet the
AHP regulatory eligibility requirements, as well as all commitments
made in the approved AHP application.\10\ As part of this process,
Banks typically require that the member and project sponsor provide
documentation demonstrating continuing compliance. In the event of
project noncompliance, a project sponsor is required to make a
reasonable effort to cure the noncompliance within a reasonable period
of time.\11\
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\10\ 12 CFR 1291.30(c).
\11\ 12 CFR 1291.60(b)(1).
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If the project sponsor cannot cure the noncompliance within a
reasonable period of time, the regulation permits a Bank to approve a
modification to the terms of an approved application that would change
the score that the application received for the funding period in which
it was originally scored and approved, had the changed facts been
operative at that time. Before a Bank approves a modification: (i) the
project, incorporating the changes, must continue to meet the
regulatory eligibility requirements; (ii) the application, as
reflective of the changes, must continue to score high enough to have
been approved in the funding period in which it was originally scored
and approved; and (iii) there must be good cause for the modification,
and the analysis and justification for the modification must be
documented by the Bank in writing.\12\
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\12\ 12 CFR 1291.29(a).
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The regulation requires generally that a Bank monitor owner-
occupied and rental projects receiving AHP subsidy under its
competitive application program(s) prior to and after project
completion. During the initial monitoring period, a Bank must determine
whether the project is making satisfactory progress towards completion,
in compliance with the commitments made in the approved application,
Bank policies, and the AHP regulatory requirements. Following project
completion, the Bank must determine whether satisfactory progress is
being made towards occupancy of the project by eligible households.\13\
Within a reasonable period of time after project completion, the Bank
must determine whether the project meets the AHP regulatory
requirements and the commitments made in the approved application.\14\
During the long-term 15-year monitoring period for rental projects,
subject to certain exceptions in the AHP regulation, the Bank must
determine whether the household incomes and rents in the project comply
with the income targeting and rent commitments made in the approved
application.\15\ For both the initial and long-term monitoring, a Bank
must review appropriate documentation maintained by the project
sponsor.
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\13\ 12 CFR 1291.50(a)(1).
\14\ 12 CFR 1291.50(a)(2).
\15\ 12 CFR 1291.50(c)(1).
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Homeownership Set-Aside Programs
The AHP regulation also authorizes each Bank, in its discretion, to
allocate up to the greater of $4.5 million or 35 percent of its annual
required AHP contribution to establish homeownership set-aside programs
for the purpose of promoting homeownership for low- or moderate-income
households.\16\ Under these homeownership set-aside programs, a Bank
provides AHP direct subsidies to its members who, in turn, provide the
subsidies as grants to eligible households for down payment, closing
cost, counseling cost or rehabilitation assistance in connection with
the household's purchase of a primary residence or rehabilitation of an
owner-occupied residence.\17\ Prior to the Bank's disbursement of a
direct subsidy under its homeownership set-aside program(s), the member
must agree that the subsidy will be provided in compliance with all
applicable AHP regulatory eligibility requirements.\18\
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\16\ 12 CFR 1291.12(b); 1291.40.
\17\ 12 CFR 1291.42(d).
\18\ 12 CFR 1291.15(a).
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AHP Information Submitted by Banks to FHFA
FHFA's Data Reporting Manual (DRM) requires each Bank to submit to
FHFA aggregate AHP information.\19\ Specifically, the DRM requires each
Bank to submit to FHFA project-level information regarding its
competitive application program(s) and household-level information
regarding its homeownership set-aside program(s) semi-annually. The
information the Banks are required to submit to FHFA under the DRM is
derived from the documentation submitted by Bank members and project
sponsors that is described above.
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\19\ The AHP reporting requirements are located in chapter 5 of
the DRM, which is available electronically on FHFA's public website
at https://www.fhfa.gov/SupervisionRegulation/FederalHomeLoanBanks/Documents/FHFB-Resolutions/2006/2006-13-Attachment.pdf.
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B. Need for and Use of the Information Collection
The Banks use the AHP information collected from Bank members and
project sponsors to determine whether: (1) projects for which Bank
members and project sponsors are seeking subsidies under the Banks'
competitive application programs satisfy the applicable statutory and
regulatory requirements and score highly enough in comparison with
other applications submitted during the same funding period to be
approved for AHP subsidies; (2) projects approved under
[[Page 48025]]
the Banks' competitive application programs continue to meet the
applicable AHP regulatory requirements and comply with the commitments
made in the approved applications each time AHP subsidy is disbursed by
the Banks, through their members, to the project sponsors; (3) requests
for modifications of projects approved under the Banks' competitive
application programs meet the AHP regulatory requirements for approval;
(4) during the initial monitoring period, projects approved under the
Banks' competitive application programs are making satisfactory
progress towards completion, are making satisfactory progress towards
occupancy of the project by eligible households after completion, and,
within a reasonable period of time after completion, are in compliance
with the commitments made in the approved applications, Bank policies,
and the AHP regulatory requirements; (5) during the long-term 15-year
monitoring period, completed rental projects continue to comply with
the household income targeting and rent commitments made in the
approved applications; and (6) applications for direct subsidy under
Banks' homeownership set-aside programs were approved, and the direct
subsidies disbursed, in accordance with the AHP regulatory
requirements.
FHFA uses the information required to be submitted by the Banks
under the DRM to verify that the Banks' funding decisions, and the use
of the funds awarded, were consistent with statutory and regulatory
requirements.
C. Burden Estimate
FHFA has analyzed each of the six facets of this information
collection in order to estimate the hour burdens that the collection
will impose upon Bank members and AHP project sponsors annually over
the next three years. Based on that analysis, FHFA estimates that the
total annual hour burden will be 92,649. The method FHFA used to
determine the annual hour burden for each facet of the information
collection is explained in detail below.
I. AHP Competitive Applications Submissions
FHFA estimates that Bank members, on behalf of project sponsors,
will submit to the Banks an annual average of 1,250 applications for
AHP subsidies under the Banks' competitive application programs, and
that the average preparation time for each application will be 24
hours. The estimate for the total annual hour burden on members and
project sponsors in connection with the preparation and submission of
AHP competitive applications is, therefore, 30,000 hours (1,250
applications x 24 hours).
II. Compliance Submissions for Approved Competitive Application
Projects at AHP Subsidy Disbursement
FHFA estimates that Bank members, on behalf of project sponsors,
will make an annual average of 345 submissions to the Banks documenting
that projects approved under the Banks' competitive application
programs continue to comply with the AHP regulatory eligibility
requirements and all commitments made in the approved AHP applications
at the time each AHP subsidy is disbursed to the project sponsors, and
that the average preparation time for each submission will be 1 hour.
The estimate for the total annual hour burden on members and project
sponsors in connection with the preparation and submission of these
compliance submissions is, therefore, 345 hours (345 submissions x 1
hour).
III. Modification Requests for Approved Competitive Application
Projects
FHFA estimates that Bank members, on behalf of project sponsors,
will submit to the Banks an annual average of 318 requests for
modifications to projects that have been approved under the Banks'
competitive application programs, and that the average preparation time
for each request will be 2.5 hours. The estimate for the total annual
hour burden on members and project sponsors in connection with the
preparation and submission of these modification requests, therefore,
is 795 hours (318 requests x 2.5 hours).
IV. Initial Monitoring Submissions for Approved Competitive Application
Projects
FHFA estimates that project sponsors will make an annual average of
265 submissions of documentation to the Banks for purposes of the
Banks' initial monitoring of in-progress and recently completed
projects approved under their competitive application programs, and
that the average preparation time for each submission will be 5 hours.
The estimate for the total annual hour burden on project sponsors in
connection with the preparation and submission of documentation
required for initial monitoring of competitive application projects is,
therefore, 1,325 hours (265 submissions x 5 hours).
V. Long-Term Monitoring Submissions for Completed Competitive
Application Rental Projects
FHFA estimates that project sponsors will make an annual average of
3,178 submissions of documentation to the Banks for purposes of the
Banks' long-term monitoring of completed rental projects approved under
their competitive application programs, and that the average
preparation time for each submission will be 3 hours. The estimate for
the total annual hour burden on project sponsors in connection with the
preparation and submission of documentation required for long-term
monitoring of completed competitive application rental projects is,
therefore, 9,534 hours (3,178 submissions x 3 hours).
VI. Homeownership Set-Aside Program Applications and Certifications
FHFA estimates that Bank members will submit to the Banks an annual
average of 10,130 applications and required certifications for AHP
direct subsidies under the Banks' homeownership set-aside programs, and
that the average preparation time for those submissions will be 5
hours. The estimate for the total annual hour burden on members in
connection with the preparation and submission of homeownership set-
aside program applications and certifications is, therefore, 50,650
hours (10,130 applications/certifications x 5 hours).
D. Public Comments Request
Written comments are requested on: (1) whether the collection of
information is necessary for the proper performance of FHFA functions,
including whether the information has practical utility; (2) the
accuracy of FHFA's estimates of the burdens of the collection of
information; (3) ways to enhance the quality, utility, and clarity of
the information collected; and (4) ways to minimize the burden of the
collection of information on members and project sponsors, including
through the use of automated collection techniques or other forms of
information technology.
Shawn Bucholtz,
Chief Data Officer, Federal Housing Finance Agency.
[FR Doc. 2022-16855 Filed 8-4-22; 8:45 am]
BILLING CODE 8070-01-P