[Federal Register Volume 73, Number 244 (Thursday, December 18, 2008)]
[Notices]
[Pages 77050-77052]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-30177]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5274-N-01]


Notice of HUD-Held Multifamily and Healthcare Loan Sale

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

ACTION: Notice of sale of mortgage loan.

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SUMMARY: This notice announces HUD's intention to sell an unsubsidized 
multifamily mortgage loan, without Federal Housing Administration (FHA) 
insurance, in a competitive, sealed bid sale (Pool 101 of MHLS 2009-1). 
This notice also describes generally the bidding process for the sale 
and certain persons who are ineligible to bid.

DATES: For Pool 101 of MHLS 2009-1, the Bidder's Information Package 
(BIP) was made available to qualified bidders on November 20, 2008. 
Bids for the loan must be submitted on the bid date, which is currently 
scheduled for December 19, 2008. HUD anticipates that an award will be 
made on or before December 22, 2008. The sale closing is expected to 
take place on December 30, 2008.

ADDRESSES: To become a qualified bidder and receive the BIP, 
prospective bidders must complete, execute, and submit a 
Confidentiality Agreement and a Qualification Statement acceptable to 
HUD. Both documents will be available on the HUD Web site at http://www.hud.gov/fhaloansales.cfm. The executed documents must be mailed and 
faxed to DebtX at: The Debt Exchange, 133 Federal Street, 10th Floor, 
Boston, MA 02111, Attention: MHLS 2009-1 Sale Coordinator, Fax 1-617-
531-3499.

FOR FURTHER INFORMATION CONTACT: John Lucey, Deputy Director, Asset 
Sales Office, Room 3136, Department of Housing and Urban Development, 
451 Seventh Street, SW., Washington, DC 20410-8000; telephone 202-708-
2625, extension 3927. Individuals with hearing or speech impairments 
may call 202-708-4594 (TTY). These are not toll-free numbers.

[[Page 77051]]


SUPPLEMENTARY INFORMATION: HUD announces its intention to sell in Pool 
101 of MHLS 2009-1 an unsubsidized mortgage loan (Mortgage Loan) 
secured by a multifamily property located in Columbus, Ohio. The 
Mortgage Loan is non-performing. The Mortgage Loan will be sold without 
FHA insurance and with servicing released. HUD will offer qualified 
bidders an opportunity to bid competitively on the Mortgage Loan.
    The mortgagor, if it is a qualified bidder, may submit a bid on the 
Mortgage Loan. If interested, the Mortgagor should review the 
Qualification Statement to determine whether it may be eligible to 
qualify to submit a bid for Pool 101 of MHLS 2009-1.

The Bidding Process

    The BIP will describe in detail the procedure for bidding in Pool 
101 of MHLS 2009-1. The BIP or its supplement(s) will also include a 
standardized nonnegotiable loan sale agreement (Loan Sale Agreement). 
As part of its bid, each bidder must submit a deposit equal to the 
greater of $100,000 or 10 percent of the bid price. In the event the 
bidder's bid is less than $100,000.00, the minimum deposit shall be not 
less than fifty percent of the bidder's bid. HUD will evaluate the bids 
submitted and determine the successful bid in its sole and absolute 
discretion. If a bidder is successful, the bidder's deposit will be 
non-refundable and will be applied toward the purchase price. Deposits 
will be returned to unsuccessful bidders. The Closing for Pool 101 of 
MHLS 2009-1 is scheduled for December 30, 2008.
    These are the essential terms of sale. The Loan Sale Agreement, 
which will be included in the BIP or its supplement(s), will contain 
additional terms and details. To ensure a competitive bidding process, 
the terms of the bidding process and the Loan Sale Agreement are not 
subject to negotiation.

Due Diligence Review

    The BIP will describe the due diligence process for reviewing loan 
files in Pool 101 of MHLS 2009-1. Qualified bidders will be able to 
access loan information remotely via a high-speed Internet connection. 
Further information on performing due diligence review of the Mortgage 
Loans will be provided in the BIP.

Mortgage Loan Sale Policy

    HUD reserves the right to reject any and all bids, in whole or in 
part, without prejudice to HUD's right to include this Mortgage Loan in 
a later sale. The Mortgage Loan will not be withdrawn after the Award 
Date except as is specifically provided in the Loan Sale Agreement.
    This is a sale of an unsubsidized mortgage loan, pursuant to 
Section 204(a) of the Departments of the Department of Veterans Affairs 
and Housing and Urban Development, and Independent Agencies 
Appropriations Act of 1997, 12 U.S.C. 1715z-11a(a).

Mortgage Loan Sale Procedure

    HUD selected a competitive sale as the method to sell the Mortgage 
Loan. This method of sale optimizes HUD's return on the sale of this 
Mortgage Loan, affords the greatest opportunity for all qualified 
bidders to bid on the Mortgage Loan, and provides the quickest and most 
efficient vehicle for HUD to dispose of the Mortgage Loan.

Bidder Eligibility

    In order to bid in the sale, a prospective bidder must complete, 
execute and submit both a Confidentiality Agreement and a Qualification 
Statement acceptable to HUD. The following individuals and entities are 
ineligible to bid on the Mortgage Loan included in Pool 101 of MHLS 
2009-1:
    (1) Any employee of HUD, a member of such employee's household, or 
an entity owned or controlled by any such employee or member of such an 
employee's household;
    (2) Any individual or entity that is debarred, suspended, or 
excluded from doing business with HUD pursuant to Title 24 of the Code 
of Federal Regulations, Part 24, and Title 25 of the Code of Federal 
Regulations, Part 2424;
    (3) Any contractor, subcontractor and/or consultant or advisor 
(including any agent, employee, partner, director, principal or 
affiliate of any of the foregoing) who performed services for or on 
behalf of HUD in connection with Pool 101 of MHLS 2009-1;
    (4) Any individual who was a principal, partner, director, agent or 
employee of any entity or individual described in subparagraph 3 above, 
at any time during which the entity or individual performed services 
for or on behalf of HUD in connection with Pool 101 of MHLS 2009-1;
    (5) Any individual or entity that uses the services, directly or 
indirectly, of any person or entity ineligible under subparagraphs 1 
through 4 above to assist in preparing any of its bids on the Mortgage 
Loan;
    (6) Any individual or entity which employs or uses the services of 
an employee of HUD (other than in such employee's official capacity) 
who is involved in Pool 101 of MHLS 2009-1;
    (7) Any mortgagor (or affiliate of a mortgagor) that failed to 
submit to HUD on or before February 21, 2008, audited financial 
statements for fiscal years 1999 through 2007 for a project securing a 
Mortgage Loan;
    (8) Any individual or entity and any Related Party (as such term is 
defined in the Qualification Statement) of such individual or entity 
that is a mortgagor in any of HUD's multifamily housing programs and 
that is in default under such mortgage loan or is in violation of any 
regulatory or business agreements with HUD, unless such default or 
violation is cured on or before December 9, 2008;
    (9) Any entity or individual that serviced or held the Mortgage 
Loan at any time during the 2-year period prior to December 1, 2008, is 
ineligible to bid on the Mortgage Loan or on the pool containing such 
Mortgage Loan; and
    (10) Any affiliate or principal of any entity or individual 
described in the preceding sentence (subparagraph 9); any employee or 
subcontractor of such entity or individual during that 2-year period; 
or any entity or individual that employs or uses the services of any 
other entity or individual described in this subparagraph in preparing 
its bid on such Mortgage Loan.
    Prospective bidders should carefully review the Qualification 
Statement to determine whether they are eligible to submit bids on the 
Mortgage Loan in Pool 101 of MHLS 2009-1.

Eligible Bidders With Respect to Pool 101 of MHLS 2009-1

    Notwithstanding the foregoing, in order to bid on Pool 101 of MHLS 
2009-1, bidders must be a Non-Profit entity, Housing Finance Authority, 
or a unit of local government.

Freedom of Information Act Requests

    HUD reserves the right, in its sole and absolute discretion, to 
disclose information regarding Pool 101 of MHLS 2009-1, including, but 
not limited to, the identity of any successful bidder and its bid price 
or bid percentage for the loan, upon the closing of the sale. Even if 
HUD elects not to publicly disclose any information relating to Pool 
101 of MHLS 2009-1, HUD will have the right to disclose any information 
that HUD is obligated to disclose pursuant to the Freedom of 
Information Act and all regulations promulgated thereunder.

Scope of Notice

    This notice applies to Pool 101 of MHLS 2009-1 and does not 
establish

[[Page 77052]]

HUD's policy for the sale of other mortgage loans.

    Dated: December 12, 2008.
Brian D. Montgomery,
Assistant Secretary for Housing--Federal Housing Commissioner.
 [FR Doc. E8-30177 Filed 12-16-08; 4:15 pm]
BILLING CODE 4210-67-P