[Federal Register Volume 61, Number 183 (Thursday, September 19, 1996)]
[Notices]
[Pages 49330-49331]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-23960]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-4108-N-02]


Office of the Assistant Secretary for Community Planning and 
Development; Notice of Submission of Proposed Information Collection to 
OMB

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

ACTION: Notice of submission of proposed information collection to OMB.

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

DATES: The due date for comments is: September 26, 1996.

ADDRESSES: 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., HUD 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 Seventh Street, SW, Washington, DC 20410, 
telephone (202) 708-0050. Hearing- or speech-impaired individuals may 
access this number via TTY by calling the Federal Information Relay 
Service at 1-800-877-8399. (Other than the ``800'' number, these 
telephone numbers are not toll-free.) Copies of available documents 
submitted to OMB may be obtained from Ms. Weaver.

SUPPLEMENTARY INFORMATION: This notice informs the public that HUD has 
submitted to OMB, for emergency processing, an information collection 
package with respect to a final rule, entitled ``Loan Guarantee 
Recovery Fund'', published on September 6, 1996 (61 FR 47404). HUD 
seeks to implement this initiative on the final day of the rule 
(October 7, 1996), unless prior to that date Congress authorizes an 
earlier effective date for this rule.
    The final rule implements section 4 of the ``Church Arson 
Prevention Act of 1996'' (Pub. L. 104-155, approved July 3, 1996) (the 
Act) by establishing a new 24 CFR part 573. Section 4 of the Act 
authorizes the Secretary of HUD to guarantee loans made by financial 
institutions to assist certain nonprofit organizations (organizations 
described in section 501(c)(3) of the Internal Revenue Code of 1996) 
that have had property damaged as a result of acts of arson or 
terrorism. Part 573 describes the procedures, terms, and conditions by 
which HUD will guarantee loans to assist eligible nonprofit 
organizations. Under 24 CFR part 573, eligible borrowers may use 
guaranteed loan funds for a wide range of activities, including: (1) 
The acquisition of real or personal property; (2) the rehabilitation of 
real property; (3) the construction, reconstruction, or replacement of 
real property improvement; (4) site preparation; (5) architectural, 
engineering, and security expenses; and (6) refinancing existing 
indebtedness.
    Certain provisions of 24 CFR part 573 establish information 
collection requirements. Specifically, Sec. 573.6 sets forth the 
information which a financial institution seeking a section 4 
guaranteed loan must submit to HUD. Section 573.7 establishes the 
information which must be contained in the loan guarantee agreement 
between the financial institution and the Secretary. Section 573.8 
lists the environmental review information which a borrower must 
collect and provide to HUD. Further, Sec. 573.11 describes the 
recordkeeping requirements which must be followed by a financial 
institution receiving section 4 loan guarantee assistance.
    HUD 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) Title of the information collection proposal: Final Rule--Loan 
Guarantee Recovery Fund
    (2) Summary of the collection of information:
    A financial institution seeking a section 4 guaranteed loan must 
submit to HUD the following documentation:
    1. A statement that the institution is a financial institution as 
defined at Sec. 573.2.
    2. The borrower's original request for a loan from the financial 
institution that includes:
    (a) A statement that the Borrower is eligible as defined at 
Sec. 573.2;
    (b) A description of each eligible activity for which the loan is 
requested:
    (c) A certification by the borrower that the activities to be 
assisted resulted from an act of arson or terrorism which is the 
subject of the certification described in paragraph Sec. 573.6(b)(5);
    (d) A narrative of the institution's underwriting standards used in 
reviewing the loan request;
    (e) A certification by a Certification Official (CO) that the 
damage or destruction to be remedied by the use of the guaranteed loan 
funds resulted from an act of arson or terrorism. The CO shall execute 
an Official Incident Report or an equivalent report;
    (f) Documentation for environmental threshold review; and
    (g) Any previously issued environmental reviews prepared by local, 
State, or other Federal agencies for the proposed property.
    (3) Rights and responsibilities with respect to the guaranteed loan 
shall be substantially described in an agreement

[[Page 49331]]

entered into between the financial institution, as the lender, and the 
Secretary, as the guarantor, which agreement shall provide that:
    (a) The lender has submitted or will submit a request for loan 
guarantee assistance that is accompanied by the borrower's request for 
a loan to carry out eligible activities described in Sec. 573.3;
    (b) The lender will require the borrower to execute a promissory 
note promising to repay the guaranteed loan in accordance with the 
terms thereof;
    (c) The lender will require the borrower to provide collateral 
security, to an extend and in a form, acceptable to HUD;
    (d) HUD in its discretion may decline any financial institution's 
participation if underwriting criteria are insufficient to make the 
guarantee an acceptable financial risk or the interest rates or fees 
are unacceptable. HUD expects the interests rates being requested will 
take into the account the value of the Federal guarantee;
    (e) HUD reserves the right to limit loan guarantees to loans 
financing the replacement of damaged properties with comparable new 
properties;
    (f) The lender will follow certain claim procedures to be specified 
by HUD in connection with any defaults, including appropriate 
notification of default as required by HUD;
    (g) The lender will follow procedures for payment under the 
guarantee whereby the lender will be paid (up to the amount of 
guarantee) the amount owed to the lender less any amount recovered from 
the underlying collateral security for the loan;
    (h) The lender reserves the right to approve the general 
contractor, the contract with the general contractor, bonding or a 
letter of credit from the general contractor equal to at least 25 
percent of the construction costs, and architectural insurance 
coverage; and
    (i) Other requirements, terms, and conditions required by HUD.
    Records pertaining to the loans made by the financial institution 
shall be held for the life of the loan. A lender with a section 4 
guaranteed loan shall allow HUD, the Comptroller General of the United 
States, and their authorized representatives access from time to time 
to any documents, papers or files which are pertinent to the guaranteed 
loan, and to inspect and make copies of such records which relate to 
any section 4 loan. Any inspection will be made during the lender's 
regular business hours or any other mutually convenient time.
    (4) Description of the need for the information and its proposed 
use:
    To appropriately determine which financial institutions should be 
provided with section 4 loan guarantee assistance, certain information 
is required. Among other necessary criteria, HUD must determine 
whether: (1) the lender is an eligible section 501(c)(3) nonprofit 
organization; (2) the loan will assist in the rehabilitation of 
property damaged or destroyed by acts of arson or terrorism; (3) the 
activities which will be assisted by the loan are eligible activities 
under Sec. 573.3; (4) the financial institution utilizes sufficient 
underwriting standards; (5) the assisted activities will comply with 
all applicable environmental laws and requirements.
    (4) Description of the likely respondents, including the estimated 
number of likely respondents, and proposed frequency of response to the 
collection of information:
    Participants will be financial institutions such as banks, trust 
companies, savings and loan associations, credit unions, mortgage 
companies, or other issuers regulated by the Federal Deposit Insurance 
Corporation, the Office of Thrift Supervision, the Credit Union 
Administration, or the U.S. Comptroller of the Currency.
    The estimated number of respondents is 300. The proposed frequency 
of the response to the collection of information is one-time. The 
application for section 4 loan guarantee assistance need only be 
submitted once per loan.
    (5) Estimate of the total reporting and recordkeeping burden that 
will result from the collection of information:

Reporting Burden:
    Number of respondents: 300
    (@ ____ hour per response):
Total Estimated Burden Hours: 12,240

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

    Dated: September 12, 1996.
David S. Cristy,
Director, IRM Policy and Management Division.
[FR Doc. 96-23960 Filed 9-18-96; 8:45 am]
BILLING CODE 4210-29-M