[Federal Register Volume 60, Number 107 (Monday, June 5, 1995)]
[Notices]
[Pages 29671-29702]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-13603]



[[Page 29671]]

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. N-95-3909; FR-3904-N-02]


Notice of Submission of Proposed Information Collection to OMB; 
Section 202 Supportive Housing for the Elderly--Application Submission 
Requirements

AGENCY: Office of Assistant Secretary for Housing--Federal Housing 
Commissioner, HUD.

ACTION: Notice of submission of proposed information collection section 
202 supportive housing for the elderly--application submission 
requirements for FY 1995.

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

SUMMARY: The proposed information collection requirement described 
below has been submitted to the Office of Management and Budget (OMB) 
for expedited review, as required by the Paperwork Reduction Act. The 
Department is soliciting public comments on the subject proposal.

ADDRESS: Interested persons are invited to submit comments regarding 
this proposal. Comments must be received within seven (7) days from the 
date of this Notice. Comments should refer to the proposal by name and 
should be sent to: Joseph F. Lackey, Jr., OMB Desk Officer, Office of 
Management and Budget, New Executive Office Building, Washington, DC 
20503.

FOR FURTHER INFORMATION CONTACT: Kay F. Weaver, Reports Management 
Officer, Department of Housing and Urban Development, 451 7th Street, 
Southwest, Washington, DC 20410, telephone number (202) 708-0050. This 
is not a toll-free number. Copies of the proposed forms and other 
available documents submitted to OMB may be obtained from Ms. Weaver.

SUPPLEMENTARY INFORMATION: This Notice informs the public that the 
Department of Housing and Urban Development has submitted to OMB, for 
expedited processing, an information collection package with respect to 
the application submission requirements for the Section 202 Supportive 
Housing Program for the Elderly. HUD is requesting a seven-day OMB 
review of this information collection.
    The funds for this project development and construction assistance, 
which are capital advances and project rental assistance contracts, 
were appropriated by the Departments of Veterans Affairs and Housing 
and Urban Development, and Independent Agencies Appropriations Act, 
1995, (Pub. L. 103-327, enacted September 28, 1994).
    HUD intends to make available $510,518,387 in capital advance 
assistance which will produce approximately 7,409 units of supportive 
housing for the elderly. HUD also will make available sufficient 
project rental assistance funds to help cover the project's operating 
cost. These funds will be provided to private nonprofit organizations 
and nonprofit consumer cooperatives to expand the supply of supportive 
housing for the elderly.
    This Section 202 application submission package describes the 
contents of the application package and includes the forms and other 
information an applicant needs to file an application. The Section 202 
application consists of 11 exhibits which are evaluated by HUD to 
determine (1) the applicant's eligibility to participate in the 
program; (2) the applicant's ability (financially and administratively) 
to develop and operate the proposed project; (3) the need for the 
supportive housing in the area to be served; (4) the extent to which 
the applicant has site control; (5) the suitability of the site; (6) 
the adequacy of the provision of supportive services; (7) the adequacy 
of the proposed facility; and (8) that the applicant has properly 
certified to comply with the various governmental requirements, 
Executive Orders, etc.
    The Department has submitted the proposal for the collection of 
information, as described below, to OMB for review, as required by the 
Paperwork Reduction Act (44 U.S.C. Chapter 35);
    (1) the title of the information collection proposal;
    (2) the office of the agency to collect the information;
    (3) the description of the need for the information and its 
proposed use;
    (4) the agency form number, if applicable;
    (5) what members of the public will be affected by the proposal;
    (6) how frequently information submission will be required;
    (7) an estimate of the total number of hours needed to prepare the 
information submission including the number of respondents, frequency 
of response, and hours of response;
    (8) whether the proposal is new or an extension, reinstatement, or 
revision of an information collection requirement; and
    (9) the names and telephone numbers of an agency official familiar 
with the proposal and of the OMB Desk Officer for the Department.

    Authority: Section 3507 of the Paperwork Reduction Act, 44 
U.S.C. 3507; Section 7(d) of the Department of Housing and Urban 
Development Act, 42 U.S.C. 3535(d).

    Dated: May 24, 1995.
Jeanne K. Engel,
General Deputy Assistant Secretary for Housing--Federal Housing 
Commissioner.
Notice of Submission of Proposed Information Collection to OMB

Proposal: Section 202 Supportive Housing Program for the Elderly--
Application Submission Requirements, FR-3904.
Office: Office of Assistant Secretary for Housing--Federal Housing 
Commissioner.
Description of the Need for the Information and Its Proposed Use: This 
information collection is required in connection with the application 
submission requirements for the Section 202 Supportive Housing Program 
for the Elderly. HUD intends to make available $510,518,387 in capital 
advance assistance to expand the supply of supportive housing for the 
elderly. This information collection describes the contents of the 
application package which is used by HUD to determine the acceptability 
of the requests for capital advance assistance.
Form Number: HUD-92015-CA
Respondents: Private Nonprofit Organizations and Nonprofit Consumer 
Cooperatives
Frequency of Submission: Annually
Reporting Burden: 

----------------------------------------------------------------------------------------------------------------
                                               Number            Frequency of         Hours per         Burden  
                                           ofrespondents           Response           response           hours  
----------------------------------------------------------------------------------------------------------------
Application package.....................             600                    1              41.3          22,500 
----------------------------------------------------------------------------------------------------------------

Total Estimated Burden Hours: 22,500
Status: Reinstatement with Change
Contact: Margaret F. Milner, HUD (202) 708-4542; Joseph F. Lackey, Jr., 
OMB (202) 395-7316.

    Dated: May 24, 1995. [[Page 29672]] 

Section 202 Application Submission Requirements OMB No. 2502-0267

A. Supporting Statement

1. Need for Information
    The Section 202 program, amended by the National Affordable Housing 
Act (NAHA) of 1990 and the Housing and Community Development Act of 
1992, provides capital advances to private nonprofit organizations and 
nonprofit consumer cooperatives to expand the supply of supportive 
housing for the elderly. In order to ensure that only eligible private 
nonprofit organizations and nonprofit consumer cooperatives are 
selected, it is important to obtain information from prospective 
applicants to assist HUD in determining if they have the administrative 
capacity to develop such a project and whether the project design and 
proposed services meet the needs of the residents. These factors are 
critical in meeting statutory requirements and in protecting the 
Department's financial interest in projects funded under this program.
    In keeping with the Department's commitment to streamline the 
Section 202 application submission package, the Department met with 
representatives of Section 202 nonprofit organizations, housing 
consultants and other program staff to discuss ideas for revamping the 
Section 202 application submission package to make it less burdensome 
to Section 202 applicants without compromising the Federal Government's 
financial interest in the project.
    More recently, the Department held two working group sessions to 
identify further ways to streamline the Section 202 program and make it 
more consumer friendly. The working groups consisted of Sponsors of 
Section 202 projects and HUD staff. Additionally, the Department 
conducted a Section 202 consumer forum in which program beneficiaries, 
primarily elderly residents and potential residents, expressed their 
concerns about the quality of living in existing Section 202 projects 
and provided ideas for improving the program and projects. The 
supporting justification as contained herein reflects the results of 
the Department's meetings and telephone conversations with the private 
sector and HUD program staff.
    The Section 202 application submission package for the fund 
reservation was approved by OMB under No. 2502-0267 which expired in 
December 1994. The Department is requesting reinstatement of OMB No. 
2502-0267 to permit the Department to collect the information 
identified in this submission.
    The Department has an on-going commitment to identify ways to 
simplify the process by which the Section 202 program is administered 
(including the application submission requirements) so that it can be 
more consumer friendly. Because of this commitment, the Department 
wanted greater participation from the private sector in revising the 
program. To accomplish this, additional time was needed to arrange for 
and conduct the various working group sessions with the private sector 
and other program staff, and to evaluate the recommendations resulting 
from these sessions. As a result of this public-private effort, the 
Department was unable to make the final revisions to the application 
submission package prior to the OMB expiration date.
    Based on our previous years' experience, the Department receives 
far more applications than available resources can fund. In Fiscal Year 
(FY) 1994, the Department received 492 applications requesting some 
26,364 units of housing and could only select for funding 164 
applications for some 7,819 units of housing.
    Because the Department has continued to reduce program requirements 
at the fund reservation stage and because the program provides for 
capital advances (in lieu of loans), the Section 202 program is 
expected to attract more nonprofit organizations. It is anticipated 
that the number of applications received will exceed those received in 
FY 1994. In view of the highly competitive nature of the Section 202 
program, it is necessary to have the responses comply with prescribed 
application requirements in order to form a basis for HUD's evaluation 
in selecting applications.
    The application submission requirements, summarized below, were 
developed after much consultation with the professionals in the field 
of providing housing for the elderly and were intended to not only 
reduce the paperwork burden to the nonprofit applicants but to minimize 
their front-end expenditures in putting together an application 
package. This is important because only a small percentage of the 
universe of applications received ultimately are funded.
Contents of Application Package
    The contents of the Application for a Section 202 Fund Reservation 
have been reorganized and reduced from five parts and 22 exhibits to 
four parts and 11 exhibits. Included with the 11 exhibits are six 
prescribed forms; five are required and one is optional.
    There are 15 certifications in the application package. Eleven of 
the certifications have been combined into a single document as a 
convenience to the applicant. The four components of the application 
submission package are:

Part 1--Application for Section 202 Supportive Housing Capital Advance
Part 2--Sponsor's Ability to Develop and Operate the Proposed Project
Part 3--Need for Supportive Housing in Area to be Served, Extent to 
Which Sponsors has Site Control, and Suitability of Site; Adequacy of 
Provision of Supportive Services and of the Proposed Facility
Part 4--General Application requirements and Certifications

    All of the required application exhibits are specifically 
identified in Section 889.270(b) of the Section 202 regulations, as 
amended.
    2. The Section 202 application submission requirements are 
necessary to assist HUD in determining an applicant's eligibility and 
capacity to develop housing for the elderly consistent with prescribed 
statutory and program criteria. A thorough evaluation of an applicant's 
qualifications and capabilities is critical in protecting the Federal 
Government's financial interest and to mitigate any possibility of 
fraud, waste or mismanagement or public funds.
    The procedures for information collection requires the prospective 
applicant to submit its Section 202 application to the appropriate 
local HUD Office by the nationally established deadline date (usually 
between March and June). Local HUD Office evaluate applications based 
on established criteria (identified in Section 889.300 of the 
regulations), rate the applications and make selection recommendations 
to Headquarters (usually by the first week of September). Applicants 
are notified of selection or nonselection generally by September 30. 
This process occurs once a year.
    The purpose and use of the four components of the application 
exhibits are briefly described below:
(a) Part 1--Application for Section 202 Supportive Housing--Capital 
Advance
    Exhibit 1: This exhibit requires applicants to submit Form HUD-
92015-CA, Request for Section 202 Fund Reservation--Summary 
Information. This is a relatively new form which replaced Form HUD-
92013, Application for Multifamily Housing Project, at the fund 
reservation stage. Form HUD-92015-CA was specifically designed to 
require the minimum information needed about the project for HUD 
[[Page 29673]] review at this stage. The form identifies the applicant 
and its known development team members as well as collects basic 
information with regard to the proposed project's characteristics. It 
is used by HUD staff to obtain basic information regarding the proposed 
project. Since this Form is only used at the fund reservation stage, in 
the previous clearance submission to OMB, we requested that it be 
assigned the same OMB number as this submission (i.e., 2502-0267). It 
inadvertently was assigned OMB No. 2502-0462 which relates to the 
Section 811 application submission package.
(b) Part 2--Sponsor's Ability To Develop and Operate the Proposed 
Project
    Exhibit 2: This exhibit requests the submission of organizational 
documents, IRS tax exemption ruling, and a Resolution, which also 
includes a listing of all officers and directors, concerning Conflict 
of Interest to assure that no officer or director has a financial 
interest in the project. It is important to note that not all 
applicants will have to submit all of the information asked for in this 
exhibit. Applicants who have received a Section 202 fund reservation 
within the last three funding cycles are not required to submit their 
organizational documents and IRS tax exemption rulings. Instead, these 
applicants must submit only the project numbers of their latest 
application and any modifications to these documents, if any.
    Exhibit 3: This exhibit requests narrative descriptions of the 
applicant's experience in operating rental housing projects as well as 
its experience with programs other than housing such as the provisions 
of services. This information includes the applicant's experience in 
serving the elderly and minorities. This information will assist HUD in 
determining the applicant's over-all previous experience and capacity 
to operate the proposed project over an extended period of time. This 
is consistent with the statute which requires applicants to be selected 
on, among things, their ability to develop and operate the proposed 
housing.
    In addition, the statute provides for the local coordination of 
services by requiring, among things, that applicants have management 
capacity to coordinate the provision of services and seek on a 
continuous basis new sources of assistance for the provision of 
supportive services tailored to the individual needs of the residents. 
In order to assess the applicant's ability to carry out these statutory 
requirements, the applicant is required to submit a statement 
evidencing its ties to the community, including minority support, in 
which the proposed project is to be built as well as a statement 
regarding its purposes and activities.
    Under this part, the applicant also submits a narrative description 
of its contracting experience with minority and women-owned businesses 
pursuant to Executive Orders 11625, 12432 and 12138, as well as its 
efforts to involve elderly persons, including minority elderly persons, 
in the development of the application and its intent to involve such 
persons in the development of the project.
    Included in this exhibit is a certified Resolution from the 
applicant's Board acknowledging its responsibilities of sponsorship and 
long-term support of the project, along with its willingness to fund 
the minimum capital investment, estimated start-up expenses, and the 
cost of any amenities or features that cannot be covered by the capital 
advance.
    It is important to note that many applicants will experience some 
relief of paperwork burden in preparing this exhibit because applicants 
that have participated in prior funding competitions will be able to 
utilize information and exhibits from previously prepared applications. 
Some examples include information regarding previous experience in the 
provision of housing and services, supportive services plan, community 
ties, and experiences serving minorities.
(c) Part 3--Need for Supportive Housing in Area to be Served, Extent to 
Which Sponsor has Site Control, and Suitability of Site; Adequacy of 
Provision of Supportive Services and of the Proposed Facility
    Exhibit 4: This exhibit requests information pertaining to the 
categories of elderly persons to be served, proposed site (including 
environmental condition of the site), proposed design of the facility, 
provision of supportive services, and demand for the proposed housing. 
Also, the applicant must include a map showing the racial composition 
and location of facilities and services of the area where the project 
is to be located and Form HUD-92013E, Supplemental Application 
Processing Form--Housing for the Elderly (OMB No. 2502-0232).
    Information relative to the site and proposed residents is 
necessary to assure that the proposed site is acceptable from an 
environmental and locational standpoint for the intended use and the 
applicant has control of the site as well as can obtain proper zoning. 
In addition, the information is needed to determine the market needs 
and demand for supportive housing for the elderly in the area to be 
served by the proposed project.
    Form HUD-92013E is used by the applicant to identify supportive 
services, if any, to be provided to proposed residents of the housing. 
In granting the previous approval to collect information under 2502-
0267, OMB conditioned the approval on the correction of two forms, one, 
of which, was Form HUD-92013E. OMB specified that the Department must 
accurately reflect the burden in the disclosure statement. The 
disclosure statement for this form is contained on the top of the 
second page and it reflects 8 burden hours. The reporting of 8 burden 
hours is correct for this form and this submission package has been 
revised to reflect 8 burden hours for this form.
    In addition to describing the proposed services, the applicant 
provides information about (1) any public or private sources of 
assistance expected to fund the proposed services; (2) the manner in 
which the services will be provided; (3) the building design and how 
the design will facilitate the delivery of services and accommodate the 
changing needs of the residents; and (4) how and if the proposed 
project will promote energy efficiency, including any innovative 
construction or rehabilitation methods.
    This information is evaluated to determine the adequacy of the 
provision of such services and how such services will be funded; how 
the services and building design will meet the identified needs of the 
residents as well as accommodate the aging in place of the residents 
over the years. This is important because the NAHA requires HUD to 
ensure that supportive services are provided which are tailored to the 
needs of the type of elderly persons (including the frail elderly) 
occupying the housing. HUD funds (Project Rental Assistance Contract 
funds) may be used to cover a small portion (15 percent) of the cost 
for such services. The balance of the service cost must be provided 
from other sources.
    Information with respect to the promotion of an energy efficient 
building design will be used to assist HUD in determining compliance 
with the energy efficiency standards in accordance with Section 109 of 
NAHA. The information required under this Exhibit is in accordance with 
the NAHA.
(d) Part 4--General Application Requirements and Certifications
    Exhibit 5: To assist HUD in determining if the applicant is over- 
[[Page 29674]] committed, the applicant submits for HUD's review a list 
of all Section 202 and Section 811 applications submitted for the 
current fiscal year funding round, and a list of projects previously 
funded which have not finally closed. This is information that an 
applicant that participated in a prior year can easily update, if 
necessary, and resubmit for the current year.
    Exhibit 6: Form HUD-2880, Applicant/Recipient Disclosure/Update 
Report (OMB No. 2525-0101), is required by Section 102 of the HUD 
Reform Act of 1989. The applicant uses this form to disclose any other 
government assistance that may be provided in connection with the 
proposed project as well as to report its Social Security Numbers or 
Employee Identification Numbers. this information assists HUD to ensure 
that the applicant does not receive more assistance than is necessary 
to develop and operate the proposed project.
    Exhibit 7. This exhibit is a certification, to be completed by the 
Section 202 applicant, that the application was submitted to the State 
for its review or that the State was contacted and it was determined 
that a State review was not required. This certification is required by 
OMB in accordance with Executive Order 12372.
    Exhibit 8. This is a Guide Form, titled Project Data on Occupancy, 
Displacement and Real Property Acquisition (Form HUD-40087), and its 
use is optional. An applicant, at its option, may use to report 
information relative to the acquisition of property and the relocation 
or displacement of occupants in cases where the applicant proposes to 
acquire property which is occupied. This information is consistent with 
the requirements of the Uniform Relocation Assistance and Real Property 
Acquisition Act of 1970, as amended.
    In granting the previous approval to collect information under 
2502-0267, OMB conditioned the approval on the correction of two forms, 
one, of which, was Form HUD-40087. OMB specified that the Department 
must accurately reflect the burden in the disclosure statement. This 
form is exempt from the burden disclosure requirements because it is 
only a ``guide'' form to be used at the option of the applicant. It is 
only included in the application package as a convenience to the 
applicant. The applicant is not required to submit this form. The 
information regarding any relocation activities may be submitted in 
narrative form.
    Exhibit 9. Information requested on Form SF-424, Application for 
Federal Assistance (OMB No. 0348-0043), serves a dual purpose. Pursuant 
to Executive Order 12372, the applicant submits this form to the State 
which is used by the State to initiate the intergovernmental review 
process. The applicant also uses the form to certify that it is not 
delinquent on any Federal debt which is an OMB requirement.
    Exhibit 10. The applicant provides the Form SF-LLL, Disclosure of 
Lobbying Activities (OMB No. 0348-0046), to indicate if other than 
federally appropriated funds have been or will be used to lobby the 
Executive or Legislative branches of the Federal Government pursuant to 
Title 31 U.S.C., Section 1352.
    Exhibit 11. This exhibit represents the consolidation of the 
following ten certifications into a single document, thereby requiring 
one signature for all. These certifications are required by 
governmental actions, Executive Orders, etc. and are used to review the 
applicant's intent to comply with the (1) Civil Rights, Fair Housing 
and Equal Opportunity laws; (2) Drug-Free Workplace Act; (3) HUD's 
design and cost standards including the Uniform Federal Accessibility 
Standards and Section 504 of the Rehabilitation Act of 1973; (4) 
acquisition relocation requirements of the Uniform Relocation 
Assistance and Real Property Acquisition Policies Act of 1970, as 
amended; (5) requirement to form an Owner after issuance of the capital 
advance; (6) Davis-Bacon Act Provisions; (7) requirement that the 
project be consistent with the Consolidated Plan for the appropriate 
jurisdiction; (8) Flood Disaster Protection Act of 1973; (9) National 
Environmental Policy Act; (10) Anti-Lobbying Prohibition; and (11) 
requirement regarding the truth and accuracy of the information 
contained in the application.
    Included in this exhibit also is a guide format for use by the 
public official responsible for developing the Consolidated Plan to 
indicate whether or not the proposed activities are consistent with the 
Consolidated Plan or the previous year's Comprehensive Housing 
Affordability Strategy (CHAS) if the Consolidated Plan has not yet 
started.
    In the absence of collecting the above information, the Department 
would not be able to assess the worthiness of the applications, 
determine whether the facilities and services meet statutory and 
regulatory requirements, or make sound judgements regarding the 
potential risk to the Government.
    3. Each fiscal year (near the beginning of the funding cycle), HUD 
issues a Notice pertaining to application submission requirements. 
During this process, the Department reevaluates the application 
submission requirements to identify ways to reduce the burden to the 
applicants. Because the Section 202 program had changed drastically 
when it was converted to a capital advance program, the Department made 
major revisions to the application package at that time. More recently, 
in response to feedback from the professionals in the field of 
developing Section 202 housing, the Department made further major 
changes to streamline the program. This has resulted in less paperwork 
for the applicants. Therefore, in revising the application package, 
consideration was given to modifying it to require the minimum of 
information needed by HUD to conduct the program in accordance with the 
NAHA, statutory and regulatory requirements and, at the same time, to 
establish a selection system which is equitable to all participants. 
The information described under Item 2 above represents the minimum 
information acceptable to HUD. Further, as mentioned in Item No. 2 
above, many applicants will experience a tremendous relief from 
paperwork burden because they will not have to spend time preparing 
``new'' information to complete an Exhibit. In some cases, those 
applicants that have participated in this program in the past will be 
able to utilize previously submitted information.
    4. No duplication exists, as there are no other forms or exhibits 
used for the purposes specified under Item 2 herein. Individual 
applications are evaluated and rated by HUD on the merits of the 
responses submitted with the application. Each application is unique. 
The information contained in each application relates to a particular 
Sponsor proposing a specific project, design, site, etc., and, as such, 
the information collected from applicants will be significantly 
different per application.
    Also, the Department implemented a new requirement which relieves a 
previously funded applicant of the burden of submitting certain 
documents (e.g., the organization's Articles of Incorporation, By-Laws 
and IRS tax exemption ruling). Further, since FY 1991 when the program 
was converted to a capital advance program, HUD has been reviewing and 
modifying the application submission requirements to assure that only 
necessary information is being requested of applicants. HUD has taken 
into consideration suggestions made by the private sector in modifying 
the application submission requirements.
    5. Due to the highly competitive nature of the Section 202 program, 
the [[Page 29675]] application submission requirements were developed 
in a way to minimize the front-end cost to the nonprofit applicant and 
only require the minimum amount of information needed in HUD's 
evaluation. This is important due to the fact that only a small 
percentage of the universe of applications received ultimately get 
selected. For example, although applicants may still obtain the 
services of a housing consultant, information on the consultant is no 
longer required to be submitted at this stage. HUD review and approval 
of the consultant will be done at a later stage and only for those 
projects which are ultimately selected for funding.
    Also, eliminated at the fund reservation stage is the submission of 
Form HUD-92530, regarding the applicant's previous participation in HUD 
programs and Form HUD-92013 Supplement, Supplement to Application for 
Multifamily Housing Project. The submission and review of these forms 
have been deferred to a subsequent processing stage. Sponsors no longer 
have to submit sketches of the site plans which included typical unit 
and floor plans, making it unnecessary for an applicant to have to 
obtain input from an architect at this stage. Other major documents 
recently eliminated at this stage are the applicants's financial 
statements and a narrative description of the applicant's financial 
history. The elimination of these documents will result in a tremendous 
relief of paperwork burden to small and minority applicants.
    The Department has consolidated several of the certification forms 
into a single document for the applicant's convenience.
    Also, the Department has prepared sample Application Packages which 
include all the required forms and materials necessary to put together 
an Application Package. The sample Application Packages will be made 
available to all applicants well in advance of the deadline date for 
submission of applications.
    Local HUD Offices are required to conduct workshops to provide 
needed guidance to applicants in preparing the application packages. In 
an effort to assist the small sponsoring organizations as well as 
first-time applicants, HUD staff also conducts pre-workshops especially 
designed for them.
    In addition to the above, HUD recognizes that some applicants, who 
are sincerely interested in providing housing, may lack the staff and 
other resources to develop such a project. Therefore, in recognition of 
the need for these applicants to use the services of professional 
housing consultants, HUD permits a reasonable fee for consultant's 
services to be included in the Section 202 capital advance. The 
consultant may assist the applicant in preparing the Application 
Package to request a Section 202 Capital Advance and throughout the 
final development of the project should the applicant be selected for 
funding.
    6. Currently, the information collection activities occur annually 
to coincide with the receipt of annual fiscal year appropriations for 
the program. Each year, Congress appropriates funds with which to 
select new applications. HUD, in turn, invites applications and makes 
selections based on the funds available for the year. These funds are 
normally exhausted at the end of each fiscal year. The Section 202 
regulations require HUD to publish a Notice of Fund Availability (NOFA) 
in the Federal Register when such funds are made available by Congress. 
The regulations also require HUD to specify a deadline date for receipt 
of applications. In order for HUD to accept an application, the 
application must have been submitted in response to a specific NOFA and 
Invitation requesting such an application and by the closing date 
stated in the Invitation. As the funding cycle for the program occurs 
annually, including the Invitations for Applications, it is not 
possible to require the submission of this information less frequently.
    7. Part 5 CFR 1320.6 lists 10 items that OMB will not approve for 
information collection, unless it can be demonstrated that the 
collection of information is necessary to satisfy statutory 
requirements or other substantial need.
    This request for information is consistent with the guidelines 
under 5 CFR 1320.6 with the exception of one item. Subparagraph (c) of 
the above CFR indicates OMB's disapproval of requiring respondents to 
submit more than an original and two copies of any document. HUD 
requires applicants to submit an original and four copies of the 
Section 202 Application. The changes to the application submission 
requirement resulted in a better organized Application Package. As the 
program is administered on an annual basis, processing of the 
application must be accomplished in an expeditious manner in order that 
decisions regarding selections of applications and reservations of 
funds can be made prior to the end of the fiscal year (September 30).
    During the course of processing the applications, eight HUD 
technical disciplines are involved in the review process: staff from 
Valuation, Architectural and Engineering, Housing Management, Fair 
Housing and Equal Opportunity, Economic and Market Analysis, Community 
Planning and Development, the Multifamily Housing Representative and 
the Office Counsel. These HUD staff members are required to comment on 
the approvability of each application received.
    Because of the (1) various HUD staff involved in the review 
process, (2) tremendous volume of applications received each fiscal 
year, and (3) the commitment to obligate funds by the fiscal year-end, 
HUD requires concurrent reviews of the applications by the 
aforementioned HUD staff to assure prompt processing with minimum 
interruption. For example, additional information or clarification is 
often needed from applicants to permit HUD to make a fair and complete 
review. The requirement for simultaneous reviews promotes a more 
efficient, time-saving method to provide applicants a single 
notification regarding all deficiencies noted as a result of a full 
review from each HUD technical discipline.
    HUD needs more than an original and two copies of the application 
in order to carry out the above procedures for concurrent reviews.
    8. This OMB request is the result of on-going telephone 
conversations, meetings and workshops HUD staff recently held with 
Section 202 nonprofit Sponsors, housing consultants, elderly residents 
and potential residents, and other interested HUD program staff. The 
Department consulted with various housing professionals representing 
the types of Sponsors that generally participate in the Section 202 
program; i.e., minority organizations, small organizations and 
nonminority organizations. Following is a list of some of the housing 
professionals (Housing Consultants and Section 202 Sponsors) that HUD 
consulted with by telephone, meetings and/or workshop sessions:

Judy Ponds, Housing Services, 1234 4th Street SW., Washington, DC 
20024, (202) 488-1639
Sam Simmons, National Center on Black Aged, 1424 K Street NW., Suite 
500, Washington, DC 20005, (202) 637-8400
Nick Smyrnis, AHEPA Management Corp., 7202 N. Shadeland Ave., 
Indianapolis, IN, (317) 845-3410
Jane Graf, Mercy Charities Housing, 1028A Howard Street, San Francisco, 
CA 94103, (415) 487-6825 [[Page 29676]] 
Mark Olshan, B'nai B'rith, 1640 Rhode Island Avenue, NW., Washington, 
DC 20036, (202) 857-6580
Alan Patricio, P.O. Box 53274, Atlanta, GA 30355, (404) 237-9877
Joe Howell, 815 15th Street NW., Washington, DC 20005, (202) 393-3044
Randy Speaker, Bank IV Towers, 534 Kansas Avenue, Suite 910, Topeka, KS 
66603, (913) 232-8338
Harrison Joseph, Nat'l Baptist Convention, 338 Washington Street, 
Newark, OH 43005, (614) 258-7998
Tom Slemmer, Nat'l Church Residences, 2335 N. Bank Drive, (614) 451-
2151
Don Redfoot, American Assn. for Retired Persons, 601 E Street NW., 
Washington, DC 20049, (202) 434-2277
Jose Fabregas, CODEC, Inc., 300 SW 12th Street, Suite A, Miami FL 
33130, (305) 642-1361.

    Additionally, inasmuch as this OMB request is submitted in 
accordance with 24 CFR 889.270, as amended, the promulgation procedure 
for regulations allows sufficient participation by outside agency 
contacts to review and comment on the application materials.
    9. HUD does not assure confidentiality.
    10. The application submission requirements do not contain any 
sensitive questions.
    11. Provide estimates of annualized cost to the Federal Government 
and to the respondents.
    (a) Estimate of Cost to Federal Government: Inasmuch as the 
majority of the work involved in reviewing the applications is 
performed at the local HUD Office level, the significant costs 
attributable to the promulgation of the application requirements will 
be the cost involved in reviewing the information submitted by 
applicants. Outstanding program procedures require the following 
reviews performed by the various Field Office staff. The cost to the 
Federal Government is based on an average salary at the GS-12 level, 
except for the Office Counsel and the Clerical Assistant which is at 
the GS-14 and GS-7 levels, respectively. Also, included is the cost 
associated with the preparation and printing of the HUD Application 
Package for use by the applicants in putting together their individual 
Application Packages.
Reviews

------------------------------------------------------------------------
                                  Total time                            
                                      per                               
           HUD staff              application  Hourly rate      Total   
                                    (hours)                             
------------------------------------------------------------------------
Multifamily housing                                                     
 representative................           3            $22         $66  
Architectural..................           1             22          22  
Valuation......................           3             22          66  
Economic and market analysis...           1             22          22  
Fair housing and equal                                                  
 opportunity...................           1             22          22  
Housing management.............           1             22          22  
Community planning and                                                  
 development...................           1             22          22  
Field office counsel...........           3             31          93  
Clerical assistant.............           0.5           13           6.5
                                ----------------------------------------
      Total staff time--per                                             
       application.............          14.5  ...........        $341.5
      Total annual number of                                            
       responses...............  ............  ...........     * x 600  
                                ----------------------------------------
      Total annual staff time                                           
       cost to government......  ............  ...........     204,900  
Other cost for all                                                      
 applications:                                                          
    Printing/reproducing HUD                                            
     application package (600                                           
     copies)...................  ............  ...........         700  
    Postage (600 copies  x                                              
     $3.00)....................  ............  ...........       1,800  
    Multifamily Clearinghouse                                           
     (Mailing Services)........  ............  ...........     **5,000  
                                ----------------------------------------
      Total other cost.........  ............  ...........       7,500  
      Total estimated annual                                            
       cost to government......  ............  ...........    212,400   
------------------------------------------------------------------------
*See Item 12 below for an explanation.                                  
**The Department now utilizes the services of a Multifamily             
  Clearinghouse to maintain a national mailing list for Section 2020    
  Applications and to mail out the applications. Most applicants will   
  receive their packages through the mail. However, some applicants will
  be handed copies of the Application Packages at the HUD-held          
  workshops.                                                            

    (b) Estimate of cost to Respondents: In estimating the cost to the 
applicants, it should be noted that in order to comply with the revised 
program requirements, the applicant may retain an attorney. In 
addition, as many nonprofit organizations do not have in-house 
expertise or a staff to develop an application, a housing consultant is 
usually hired by the applicant. The applicant is a nonprofit 
organization and as such provides its services at no cost. In view of 
this, the following illustrates the estimated cost to the public:

Housing consultant ($40 per hour).........................        $1,092
Applicant (sponsor).......................................          (**)
Attorney..................................................         1,000
                                                           -------------
      Total cost per respondent...........................         2,092
      Total annual number of responses....................       * x 600
                                                           -------------
      Total estimated annual cost for all applicants......    1,255,200 
                                                                        
*See Item 12 below for an explanation.                                  
**Probono.                                                              

    This reflects no change in the cost to the applicant from the 
previous OMB submission. Beginning this year, the Department is 
requiring the applicant to include as part of Exhibit 4 information 
about the environmental condition of the proposed site. An adjustment 
was made to take into consideration the additional time and cost that 
will be incurred by the applicant to inspect the proposed site for this 
purpose. Also, an adjustment was made to the burden hour time 
associated with Form HUD-92013E, Supplemental Application Processing 
Form--Housing for the Elderly, to comply with OMB's conditions for 
approval. However, these adjustments (increases) are offset by the 
reduction of burden hour time associated with the elimination of the 
financial documents.
    It should be noted that many professionals work on a retainer basis 
and if the application does not obtain HUD approval, they do not 
collect a fee. The figures presented above are based on our own 
experience, as well as [[Page 29677]] consultation with housing 
professionals in the field.
    12. Although for Fiscal Year 1994 HUD received approximately 500 
Section 202 applications, it is anticipated that because the Department 
has further simplified the application submission requirements coupled 
with the fact that the program provides capital advances in lieu of 
loans, the number of applicants will increase beyond the Fiscal Year 
1994 level. It is anticipated that the level of activity will average 
600 applications annually over the next three years. Although the 
program funding cycle is on an annual basis, each prospective applicant 
could submit more than one application. However, our estimate of time 
involved in based on one application per applicant.
    To assist the applicant in putting together an Application for a 
Fund Reservation, the Department developed an Application Package 
consisting of the information, forms and materials needed by the 
applicant to assemble an application. The HUD Application Package, 
which will be made available to all applicants, is expected to aid in 
reducing the applicant's and housing consultant's time and effort in 
putting together an application.
    Given the above and using the categories presented in the 
illustration in Item 11(b) above, the estimated amount of hours 
involved in developing a complete application submission is as follows:

------------------------------------------------------------------------
                                                                  Hours 
------------------------------------------------------------------------
Housing consultant............................................      27.3
Attorney......................................................       2.0
Applicant (sponsor)...........................................      12.0
                                                               ---------
      Total...................................................      41.3
------------------------------------------------------------------------

    These figures are based on HUD's experience, as well as 
consultation with housing professionals in the field.
    This reflects a slight decrease (1 hour) from the previous OMB 
submission (from 42.3 to 41.3 hours). This represents the net result of 
adjusting the burden time associated with Form HUD-92013E, the exhibit 
regarding project information to include an environmental review of the 
site by the applicant and the elimination of the applicant's financial 
documents.
    A Tabulation of Annual Reporting Burden is shown in Table 1. It 
should be noted that Exhibits 4, 6, 9 and 10 already have OMB 
clearances as shown in the Table. These information collections are 
common to many of our programs and our request for clearance was 
calculated to include the burden associated for all program uses. The 
burden shown in Table 1 for Exhibits 4, 6, 9 and 10, therefore, 
reflects our estimate applicable to the Section 202 program. No 
adjustment to the previously cleared Exhibits 4, 6, 9 and 10 is 
required.
    13. The primary reduction of 6,377 in the total burden hours (from 
28,877 to 22,500) is due to a change in information requested in the 
application, specifically, the elimination of the financial documents, 
and a decrease in the number of applicants (from 788 to 600) expected 
to submit applications this fiscal year. A minor adjustment to the 
applicant's burden time (associated with Exhibit 4) was made to include 
the additional time an applicant will need to perform an environmental 
inspection of the proposed site. In the past, most applicants would 
generally inspect the site to determine its acceptability for 
developing a project for the elderly, which included inspecting it for 
potential environmental problems. However, because the Department is 
specifically requiring that an environmental inspection be performed, 
we have adjusted the applicant's burden time to include this function. 
An adjustment also was made to Form HUD-92013E to provide for the 8 
hour burden time as reported in the disclosure statement on the form. 
However, in view of the elimination of the financial documents and the 
decrease in applicant participation, the net result is a reduction in 
total burden hours.
    15. Not applicable.

B. Collections of Information Employing Statistical Methods.

    Not applicable.

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[FR Doc. 95-13603 Filed 6-2-95; 8:45 am]
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