[Federal Register Volume 74, Number 237 (Friday, December 11, 2009)]
[Notices]
[Page 65781]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-29532]
[[Page 65781]]
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-5368-N-01]
Public Housing Mortgage Program: Notice of Web Publication
AGENCY: Office of the Assistant Secretary for Public and Indian
Housing, HUD.
ACTION: Notice.
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SUMMARY: Public housing a agencies (PHAs) are authorized, by statute,
to mortgage their public housing real estate assets to secure financing
to undertake development and rehabilitation of low-income housing with
HUD approval. HUD has currently allowed PHAs to exercise this authority
on a case-by-case basis. To streamline this process, HUD has posted on
its Web site a proposed notice that proposes the terms and conditions
by which PHAs may undertake such financing with HUD approval. HUD
invites PHAs and interested members of the public to review this
proposed notice and submit comments in accordance with the procedures
provided in this Federal Register notice. HUD is seeking public
comments on this proposed notice as it proceeds to formalize final
guidance for the exercise of this financing authority.
DATES: Comment Due Date: January 31, 2010.
ADDRESSES: Interested persons are invited to submit comments regarding
the public housing mortgage program notice, which can be found at:
http://www.hud.gov/offices/pih/programs/ph/capfund/phmp.cfm, by the due
date. Comments may be submitted via mail to: PHMP Comments, C/o
Dominique Blom, Deputy Assistant Secretary, Office of Public Housing
Investments, Room 4134, Department of Housing and Urban Development,
451 7th Street, SW., Washington, DC 20410.
Comments may also be submitted via e-mail to: [email protected].
No Facsimile Comments. Facsimile (FAX) comments are not acceptable.
Public Inspection of Public Comments. All properly submitted
comments and communications submitted to HUD will be available for
public inspection and copying in Room 4134 at HUD Headquarters. Due to
security measures at the HUD Headquarters building, an advance
appointment to review the public comments must be scheduled by calling
the contact person listed below. Individuals with speech or hearing
impairments may access this number via TTY by calling the Federal
Information Relay Service, toll-free, at 800-877-8339.
FOR FURTHER INFORMATION CONTACT: Kevin Gallagher, Capital Program
Division, Office of Public and Indian Housing, Department of Housing
and Urban Development, 451 7th Street, SW., Washington, DC 20410-8000;
telephone number 202-402-4192 (this is not a toll-free number).
Hearing- or speech-impaired individuals may access this number through
TTY by calling the toll-free Federal Information Relay Service at 800-
877-8339.
SUPPLEMENTARY INFORMATION:
I. Background
Section 30 of the United States Housing Act of 1937 (1937 Act) (42
U.S.C. 1437z-2), entitled ``Public Housing Mortgages and Security
Interest,'' authorizes PHAs, subject to HUD approval, to pledge or
mortgage public housing projects or other property of the PHA and
specifically provides as follows:
(a) GENERAL AUTHORIZATION--The Secretary may, upon such terms
and conditions as the Secretary may prescribe, authorize a public
housing agency to mortgage or otherwise grant a security interest in
any public housing project or other property of the public housing
agency.
Since 2005, HUD has allowed PHAs to exercise this authority by
entering into property mortgages to obtain financing for development
and rehabilitation of dwelling units. HUD has posted, on its Web site,
a proposed notice, providing more information and procedures for PHAs
obtaining HUD approval to enter into such financing arrangements. This
proposed notice, upon which HUD invites comment, is available at http://www.hud.gov/offices/pih/programs/ph/capfund/phmp.cfm. HUD seeks
comments on any issues raised by this proposed notice, and particularly
on the provisions regarding precedence of security interests for
dwelling and non-dwelling units.
As will be seen upon review of this proposed notice, HUD proposes
to consider allowing lenders to take a first lien position on public
housing non-dwelling property, allowing them, if necessary, to
foreclose on the property and extinguish any HUD interest. HUD believes
that this approach for non-dwelling units will incentivize private
market participation. For dwelling units, a declaration of restrictive
covenants will constitute first lien position, and, while the property
can be foreclosed upon, the property will be required to continue to be
operated in accordance with public housing requirements, including
eligibility restrictions. While HUD is implementing the Public Housing
Mortgage program on a case-by-case basis, proposals for transactions in
which HUD permits potential foreclosure on dwelling units, without
further HUD review of the foreclosure action, will receive additional
scrutiny and a higher level of review as HUD has not approved
transactions utilizing this aspect of the program and is mindful the
risks involved.
While HUD seeks comments on any issues raised by this notice, HUD
is particularly interested in the provisions regarding precedence of
security interests for dwelling and non-dwelling units.
Dated: December 4, 2009.
Deborah Hernandez,
General Deputy Assistant Secretary for Public and Indian Housing.
[FR Doc. E9-29532 Filed 12-10-09; 8:45 am]
BILLING CODE 4210-67-P