[Federal Register Volume 61, Number 169 (Thursday, August 29, 1996)]
[Notices]
[Pages 45439-45440]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-22027]



[[Page 45439]]

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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Office of the Assistant Secretary for Community Planning and 
Development

[Docket No. FR-4086-N-17]


Notice of Proposed Information Collection for Public Comment

AGENCY: Office of the Assistant Secretary for Community Planning and 
Development, HUD.

ACTION: Notice.

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

DATES: Comments due: October 28, 1996.

ADDRESSES: Interested persons are invited to submit comments regarding 
this proposal. Comments should refer to the proposal by name and/or OMB 
Control Number and should be sent to: Reports Liaison Officer, Office 
of the Assistant Secretary for Community Planning and Development, 
Department of Housing & Urban Development, 451-7th Street, SW, Room 
7230, Washington, DC 20410.

SUPPLEMENTARY INFORMATION:
The Department will submit the proposed information collection to OMB 
for review, as required by the Paperwork Reduction Act of 1995 (44 
U.S.C. Chapter 35, as amended).
    The Notice is soliciting comments from members of the public and 
affecting agencies concerning the proposed collection of information 
to: (1) Evaluate 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) 
Evaluate the accuracy of the agency's estimate of the burden of the 
proposed collection of information; (3) Enhance the quality, utility, 
and clarity of the information to be collected; and (4) 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.
    The Department of Housing and Urban Development (HUD) will submit 
to OMB additional, but optional, reporting requirements for 
participating jurisdictions in the HOME Program.
    The HOME Investment Partnerships Act (Title II of the Cranston-
Gonzales National Affordable Housing Act) was signed into law on 
November 28, 1990 (Pub. L. 101-625) and created the HOME Program to 
expand the supply of affordable housing. Interim regulations were first 
published for the program on December 16, 1991 and subsequent interim 
rules have been published and codified at 24 CFR part 92. On July 12, 
1995, the Department invited wide ranging comments on the interim rule 
in order to prepare a final rule for the program. This paper work 
submission will support the changes to be made in the final rule and 
reflects the increased flexibility that participating jurisdictions may 
elect to exercise within the statutory framework of the program.
    HOME funds may be used to develop or assist modest housing occupied 
by low-income families. Eligible applicants are States, units of 
general local government or consortia which are eligible to receive 
HOME allocations by formula. The additional information collection is 
essential if the Department is to determine the eligibility of the 
activity and the property to be assisted in keeping with the statutory 
requirements of the Act.
    This Notice also lists the following information:
    Title of Proposal: HOME Investment Partnerships Program
    OMB Control Number, if applicable: N/A
    Description of the need for the information and proposed use: 
Documentation would be required by HUD under Sec. 92.206 Eligible 
project costs if a participating jurisdiction elects to refinance 
existing debt in connection with the rehabilitation of a multifamily 
project. A participating jurisdiction must establish refinancing 
guidelines and include them in its consolidated plan as described in 24 
CFR part 91.
    Public comment suggested that HUD provide the option of refinancing 
multifamily projects but develop requirements which assure that this 
option is used in a fiscally responsible manner. While the Department 
declined to set limitations on the amount of subsidy used for 
refinancing or the nature or ownership of the projects, the final rule 
requires that participating jurisdictions develop and make public the 
guidelines under which they would permit multifamily property 
refinancing.
    Documentation would be required by HUD under Sec. 92.254  
Qualification as affordable housing: homeownership if a participating 
jurisdiction elects to determine 95 percent of the median area purchase 
price for single family housing in the jurisdiction instead of using 
the Single Family Mortgage limits under Section 203(b). The Department 
has adopted the Section 203(b) limits as a surrogate for the 95 percent 
statutory limitation.
    A few participating jurisdictions, which are part of larger 
metropolitan areas, expressed concern that the Section 203(b) limits 
were not reflective of 95 percent of the median area purchase price for 
their communities. These communities generally had expensive housing 
markets. The final rule would permit any participating jurisdictions 
with these concerns to determine 95 percent of median area purchase 
price based on recent sales in their locality and provide that 
information to the Department for review.
    Under the same section, documentation will be required by HUD if a 
participating jurisdiction elects to do a market analysis for a 
neighborhood in which it wishes to demonstrate a presumption of 
affordability in lieu of imposing an enforcement mechanism on new 
homebuyer units.
    In public comment, several participating jurisdictions indicated 
the negative effect of imposing resale restrictions on units in which 
HOME funds are used solely as construction financing. One jurisdiction 
claimed that the inner city neighborhoods in which they worked provided 
modest housing which could be affordable to eligible applicants through 
conventional financing after rehabilitation occurs. HOME funds are used 
to spur private investment by financing the rehabilitation which could 
be done quickly and efficiently.
    Based on market data prepared by the participating jurisdiction, a 
presumption of affordability could be supported. In this way, 
participating jurisdiction could eliminate imposition of resale 
requirements, making the units a more attractive sales option for 
prospective eligible homeowners. A participating jurisdiction could 
elect this procedure at its discretion in lieu of imposing and 
monitoring long-term lien provisions, requiring the sale of the unit to 
another low-income family.
    Agency form numbers, if applicable: N/A.
    Members of affected public: States, units of general local 
government.
    Estimation of the total annual numbers of hours needed to prepare 
the information collection including number of respondents, frequency 
of response, and hours of response:

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                                                                                 Frequency                      
                         Section affected                            Number of       of      Hours of    Annual 
                                                                    respondents   response   response    total  
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Sec.  92.206......................................................         200           1          4        800
Sec.  92.254......................................................          20           1          5        100
Sec.  92.254......................................................         275           1          5       1375
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    Total annual estimated burden hours for those optional requirements 
are 2,275.
    Status of the proposed information collection: Public comment 
requested by HUD.
    Contact person and telephone number (this is not a toll-free 
number) for copies of the proposed forms and other available documents: 
Mary Kolesar, Director, Program Policy Division, Office of Affordable 
Housing Programs, Room 7162, Department of Housing and Urban 
Development, 451 Seventh Street, SW, Washington, DC 20410, telephone 
number (202) 708-2470. (This is not a toll-free number.) A 
telecommunications device for hearing- and speech-impaired persons 
(TTY) is available at 1-800-877-8339 (Federal Information Relay 
Service).

    Authority: Section 3506 of the Paperwork Reduction Act of 1995, 
44 U.S.C. Chapter 35, as amended.

    Dated: July 25, 1996.
Andrew Cuomo,
Assistant Secretary for Community Planning and Development.
[FR Doc. 96-22027 Filed 8-28-96; 8:45 am]
BILLING CODE 4210-29-M