[Federal Register Volume 62, Number 114 (Friday, June 13, 1997)]
[Proposed Rules]
[Pages 32251-32252]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-15670]
[[Page 32251]]
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
24 CFR Part 291
[Docket No. FR-4244-A-01]
RIN 2502-AG96
Single Family Property Disposition; Advanced Notice of Proposed
Rulemaking
AGENCY: Office of the Assistant Secretary for Housing-Federal Housing
Commissioner, HUD.
ACTION: Advanced notice of proposed rulemaking.
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SUMMARY: This notice announces HUD's intention to issue a proposed rule
to amend HUD's Single Family Property Disposition Program regulations
(24 CFR part 291) for the purpose of developing innovative methods for
disposing of HUD-owned single family properties in a cost efficient
manner which furthers the Department's mission of providing decent,
safe, and affordable housing. HUD's current regulations provide that
HUD's principal method of sale of single family properties is the
competitive sales method to individuals. While this method works well
in some cases, HUD believes that there may be other disposition
methods, which should be considered and utilized, that may better serve
HUD's objectives. Specifically, HUD seeks comments that provide for
innovative, efficient, and cost effective structures and procedures
with respect to the disposition of the HUD inventory of single family
properties, which may include but should not be limited to, bulk sales
of current inventory or future acquisitions on a regional or national
basis, and structures similar to joint ventures, profit-share
arrangements, or private-public partnering. This notice therefore
solicits public comment on this subject prior to publication of a
proposed rule.
DATES: Comment Due Date: July 14, 1997.
ADDRESSES: Interested persons are invited to submit comments and
responses to the Rules Docket Clerk, Office of the General Counsel,
Room 10276, Department of Housing and Urban Development, 451 Seventh
Street SW, Washington DC 20410-0500. Communications should refer to the
above docket number and title. Facsimile (FAX) responses are not
acceptable. A copy of each response will be available for public
inspection and copying during regular business hours (7:30 a.m. to 5:30
p.m. Eastern Time at the above address).
FOR FURTHER INFORMATION CONTACT: Kitty Woodley, Director, Single Family
Property Disposition Division, Office of Single Family Housing,
Department of Housing and Urban Development, Room 9174, 451 Seventh
Street S.W., Washington, D.C., 20410, telephone (202) 708-0740 (this is
not a toll-free number). Hearing or speech-impaired individuals may
access these numbers via TTY by calling the Federal Information Relay
Service at 1-800-877-8339 (this is a toll-free number).
SUPPLEMENTARY INFORMATION:
Background
Section 204 of the National Housing Act (12 U.S.C. 1710) (Act)
governs the FHA insurance claim process and property disposition.
Specifically, section 204(g) of the Act pertains to the management and
disposition of HUD-owned single family properties acquired by HUD.
HUD's regulations implementing this statutory authority are contained
in 24 CFR part 291. Those regulations recently were amended, first
through a technical corrections rule, and second through a streamlining
rule. The amendments made by the streamlining rule eliminated
regulatory language that was duplicative of the authorizing statute, or
language included in the regulations where HUD had discretion not to
regulate. Final rules were published, respectively, on July 9, 1996 (61
FR 36260) and October 28, 1996 (61 FR 55710).
Under the statutory and regulatory authority relating to the
acquisition, handling and disposal of HUD-owned property, HUD is
charged with implementing a property disposition program of sales of
HUD-owned single family properties along with appropriate credit terms
and standards. Currently, the principal method of disposing of such
properties is competitive sale to individuals. The statutory authority
does not require this particular method, however, and the uses of other
procedures as primary sales methods, instead of competitive sales to
individuals, may have significant advantages to HUD and to the public.
The purpose of this notice is to solicit public comments for developing
innovative property disposition methods that are cost efficient and
effective, and that further the Department's mission of providing
decent, safe, and affordable housing.
HUD is pursuing alternative sales methods for its Single Family
Property Disposition Program because of the anticipated increased
volume of single family properties that may come into the HUD-owned
inventory as a result of policy and program changes as well as
downturns in various local economies and housing markets. HUD has the
largest real estate-owned (REO) portfolio and operation in the nation,
selling approximately 55,000 properties each year. At any one time, HUD
holds approximately 29,000 properties in its inventory. The average
holding time for each property is six months. While the volume of HUD-
owned properties is expected to significantly increase, HUD's resources
for managing and disposing of the inventory are decreasing. HUD desires
to find an alternative method or methods for disposal of its REO
inventory. HUD desires to find a method or methods that permit HUD to
sell these properties in a more expeditious and cost efficient manner,
that maximizes profit and ensures the stability of the FHA mortgage
insurance fund, and allows HUD to refocus its resources in furtherance
of its more central mission of providing homeownership opportunities to
American families.
HUD is requesting interested members of the public to submit public
comments on alternative sales methods. Specifically, HUD invites public
comments which describe, in general terms, sales methods to dispose of
current inventory and future acquisitions, which minimize or eliminate
holding costs. In proposing alternative sales methods, HUD asks
commenters to address (1) suitable financial structures and legal
relationships for alternative sale arrangements, (2) any procedural and
staffing efficiencies which would result from implementation of such
structure, and (3) the basis for cost effectiveness of the sales
arrangement. HUD will review all public comments submitted in
connection with preparing the proposed rule on this subject.
Public comments received in response to this notice will be used in
the development of a proposed rule that provides for innovative sales
methods for the disposition of HUD-owned single family properties. The
public comments also may be used in the development of a request for
proposals (RFP) through which HUD will solicit and consider specific
proposals on innovative, cost efficient bulk sales arrangements (which
are directed toward single family properties in the current and future
inventory), and by which HUD may undertake the sale of certain HUD-
owned single family properties if a proposal is accepted. The
occurrence of a bulk sale before issuance of a final rule amending the
Single Family Property Disposition Program regulations may provide
useful practical information on
[[Page 32252]]
alternative sales procedures that will make for a better Single Family
Property Disposition Program.
Executive Order 12866
The Office of Management and Budget (OMB) reviewed this advance
notice of proposed rulemaking (ANPR) under Executive Order 12866,
Regulatory Planning and Review, issued by the President on September
30, 1993. Any changes made in this ANPR subsequent to its submission to
OMB are identified in the docket file, which is available for public
inspection during regular business hours in the Office of the Rules
Docket Clerk, Office of the General Counsel, Department of Housing and
Urban Development, Room 10276, 451 Seventh Street, S.W., Washington, DC
20410.
Dated: June 2, 1997.
Nicolas P. Retsinas,
Assistant Secretary for Housing, Federal Housing Commissioner.
[FR Doc. 97-15670 Filed 6-12-97; 8:45 am]
BILLING CODE 4210-27-P