[Federal Register Volume 75, Number 218 (Friday, November 12, 2010)]
[Notices]
[Pages 69454-69456]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-28552]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5454-N-01]


Emergency Homeowners' Loan Program: Notice of Allocation of 
Funding for Substantially Similar State Programs

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

ACTION: Notice.

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SUMMARY: The Emergency Homeowners' Loan program, originally authorized 
by a 1975 statute, was reauthorized and revised by the Dodd-Frank Wall 
Street Reform and Consumer Protection Act, which also made $1 billion 
in funding available for this program. This program, as recently 
revised, authorizes the Secretary to allow funds to be administered by 
a state that has an existing program that provides substantially 
similar assistance to homeowners, as determined by the Secretary.
    This notice sets out the key features of HUD's emergency assistance 
program for homeowners, and solicits applications from states that have 
programs offering assistance substantially similar to this program.

DATES: Deadline Date: The submission deadline date is December 13, 2010 
(the ``Deadline Date''). Information must be submitted to 
[email protected], no later than 11:59 a.m. on the 
Deadline Date.

FOR FURTHER INFORMATION CONTACT: Office of Housing Counseling, Office 
of Housing, Department of Housing and Urban Development, 451 7th 
Street, SW., Washington, DC 20410; telephone number 202-708-0317 (this 
is not a toll-free number). Persons with hearing or speech impairments 
may access this number through TTY by calling the toll-free Federal 
Information Relay Service at 800-877-8339.
    Overview Information:
    A. Federal Agency Name: Department of Housing and Urban 
Development, Office of Emergency Homeowners' Loan Assistance.
    B. Funding Opportunity Title: Emergency Homeowners' Loan program: 
Funding of Comparable State Programs.
    C. Announcement Type: Initial Announcement.
    D. Funding Opportunity Number: The Federal Register number for this 
notice is FR-5454-N-01.
    E. Dates: The Deadline Date is December 13, 2010. Information must 
be submitted to [email protected], no later than 11:59 
a.m. on the Deadline Date.
    F. Additional Overview Information:
    1. Available Funds. Funds are available to administer existing 
state programs comparable to the Emergency Homeowners' Loan program.
    2. Eligible Applicants. States that are included on the attached 
Schedule A are eligible to apply for funding under this notice provided 
that they are administering existing programs comparable to the 
Emergency Homeowners' Loan program.

Full Text of Announcement

I. Funding Opportunity Description

    A. Program Description. The Emergency Housing Act of 1975 (12 
U.S.C. 2701), signed into law on July 2, 1975, conferred on HUD, 
through title I of this statute, entitled the ``Emergency Homeowners' 
Relief Act,'' standby authority to insure or make loans to homeowners 
to defray mortgage expenses so as to prevent widespread mortgage 
foreclosures and distress sales of homes resulting from the temporary 
loss of employment and income. The Dodd-Frank Wall Street Reform and 
Consumer Protection Act (Pub. L. 111-203, approved July 21, 2010) 
revised and reauthorized this 1975 statute, and provided $1 billion to 
HUD to implement the program authorized by the Emergency Homeowners' 
Relief Act, referred to by HUD in 2010 as the Emergency Homeowners' 
Loan program.
    B. Authority. Title I (Emergency Homeowners' Relief Act) of the 
Emergency Housing Act of 1975, as amended (12 U.S.C. 2701).

II. Award Information

    A. Available Funds. Through this notice, $1 billion is made 
available to states in accordance with the state allocations provided 
in Schedule A, and HUD solicits applications from the states in 
Schedule A having comparable state programs.\1\ The HUD allocation 
formula in Schedule A targets funds to states based on their population 
and share of unemployed homeowners with a mortgage. The amounts listed 
on Schedule A include reasonable administrative costs to administer the 
assistance made available through the Emergency Homeowners' Loan 
program. HUD's Emergency Homeowners' Loan program is intended to 
complement the Department of the Treasury's Hardest Hit Fund by 
providing assistance to homeowners--who are at risk of foreclosure and 
have experienced a substantial reduction in income due to involuntary 
unemployment, underemployment, or a medical condition--in states that 
are not included in the Hardest Hit target states. Through its Hardest 
Hit Fund, the Department of the Treasury is providing targeted support 
to 18 states, and the District of Columbia, struggling with the highest 
unemployment rates. Together, these two sources of funds form a 
national effort to help unemployed and underemployed homeowners meet 
their mortgage obligations.
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    \1\ To the extent that a state does not submit information about 
an existing program that provides substantially similar assistance 
to homeowners or such submission does not meet the requirements 
outlined below, the state's allocation described in Schedule A will 
be administered in that state by the Department of Housing and Urban 
Development in accordance with HUD's Emergency Homeowners' Loan 
program.
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    B. Type of Assistance instrument. Funds will be awarded through a 
cooperative agreement.

[[Page 69455]]

III. Eligibility Information

    A. Eligible Applicants. Eligible applicants are states, including 
the Commonwealth of Puerto Rico, state housing finance agencies, or 
other nonprofit entities that are state-administered or state-
chartered, and over which a state has effective control, oversight 
responsibility, and the authority to audit.
    B. Eligible State Programs. A state program that is eligible for 
funding under the Emergency Homeowners' Loan program is one that meets 
all of the following conditions:
    1. State Program. As provided in Section III.A., the program must 
be administered directly by the state or must be administered by an 
agency of the state, or other stated-chartered or state-administered 
entity over which the state has effective control, oversight 
responsibility, and the authority to audit.
    2. Existing Program. The program must have been in existence and in 
operation no later than July 21, 2010. Eligible state programs are 
those that already have experience, during this current housing crisis, 
in providing emergency mortgage assistance to homeowners at the risk of 
foreclosure. States with existing programs must have the capability, 
readiness, and ability to immediately implement, and successfully 
expend, the assistance made available to it by and through this 
solicitation.
    3. Mortgage relief for unemployed or under-employed homeowners. The 
program must be one that provides mortgage relief for unemployed or 
under-employed homeowners, as provided in Section III.B.6.
    4. Open to all homeowners meeting criteria in Section III.B.6. The 
program is open to all homeowners meeting the criteria in section 
III.B.6, without regard to race, color, religion, sex, familial status, 
national origin, or disability.
    5. Operation of the program in a cost-effective manner and 
administrative costs. The program is administered in a cost-effective 
manner without excessive salary, overhead, or administrative expense 
and allows for the commencement of application acceptance by December 
31, 2010, and obligation of all funds prior to October 1, 2011.
    6. Program Requirements.
    a. Eligible homeowners. For a state to administer a program 
comparable to the Emergency Homeowners' Loan program, the state program 
must provide assistance to a homeowner who must:
    i. Reside in the mortgaged property as principal residence. The 
mortgaged property must also be a single family residence (1- to 4-unit 
structure or condominium);
    ii. Be involuntarily unemployed or underemployed as the result of 
adverse economic conditions or have suffered a loss of income due to 
medical conditions, as specified under the state program;
    iii. Have, as of the date of application for assistance to the 
state program, income that is equal to, or less than, 120 percent of 
the area median income (AMI), for the area in which the homeowner 
resides and whose income includes wage, salary, and self-employed 
earnings and income;
    iv. Have current, gross income that is at least 15 percent lower 
than the homeowner's income previous to the date that the homeowner 
became unemployed or underemployed, or suffered a medical condition 
that resulted in a reduction in income;
    v. Be delinquent on payments on the first mortgage on the mortgaged 
property to such an extent that foreclosure is imminent, and the 
homeowner and/or lender can provide evidence, satisfactory to the 
state, that the foreclosure is imminent (``delinquent'' means that 
payments under the mortgage have been delinquent for at least 3 
months);
    vi. Have a reasonable likelihood of being able to resume repayment 
of the first mortgage obligations, and meet other housing expenses and 
debt obligations, when the assistance ends and/or borrower regains full 
employment, as determined by criteria under the state program.
    b. Eligible assistance. For a state to administer a program 
comparable to the Emergency Homeowners' Loan program, the state program 
must provide assistance that meets the following conditions:
    i. Assistance provided to the eligible homeowner must be assistance 
directed at making payments on the first mortgage of the mortgaged 
property.
    ii. The total amount of assistance provided to the homeowner(s) for 
one mortgaged property is limited, with a preference for placing a 
restriction of 24 months on the duration of assistance and a cap of 
$50,000 on the amount of assistance, comparable to the limit 
established by the Dodd-Frank Wall Street Reform and Consumer 
Protection Act.
    c. Repayment Terms. The state program must provide for repayment of 
the emergency mortgage assistance and provide security for such 
repayment by recordation of a HUD mortgage as a junior lien on the 
property. Any and all funds received by the program shall be in 
accordance with the HUD mortgage document.
    d. Termination of Monthly Assistance. The state program must 
provide for termination of assistance under conditions that include but 
are not limited to conditions comparable to the following:
    i. The homeowner no longer resides in, sells, transfers or 
otherwise conveys, or refinances, in which the borrower draws cash, the 
mortgaged property; or
    ii. The homeowner defaults on that portion of the homeowner's 
current first lien mortgage loan payments for which the homeowner 
remains responsible.

IV. Submission of Information

    A. There is no required application form. Eligible jurisdictions 
should submit information and evidence of the program that is 
comparable to the Emergency Homeowners' Loan program, as specified in 
this notice. The information submitted must include documentation that 
the program is a state-administered or state-chartered program as 
provided in Sections III.B. and Section IV.
    B. Capacity of Existing Program. As part of its submission:
     Each state must describe information regarding the number 
and type of homeowners assisted by its program. The number and type of 
assisted homeowners identified should cover the period beginning with 
the inception of the state's program and ending on July 21, 2010.
     Each state must also describe in detail the procedures it 
will use to ensure that it will be able to begin taking applications 
from homeowners by December 31, 2010, and will obligate its allocation, 
provided under this notice, by September 30, 2011. Information 
regarding the number of full-time staff assigned to the state's 
program, including the type, tenure, and experience of such staff, and 
the number of bilingual staff assigned to the program, should be 
provided. Experience is relevant if it corresponds directly to programs 
of a similar scale and purpose; for example, real estate or housing 
finance program experience.
     States also must describe the number of additional staff 
above and beyond current staffing levels who would need to be hired in 
order to carry out the HUD portion of the existing state program.
    C. Administrative Costs. HUD seeks to ensure that administrative 
costs incurred by applicants are reasonable and that states are able to 
implement their homeowner assistance program in a cost-effective 
manner. As a result, states with comparable programs must

[[Page 69456]]

demonstrate that they can administer the program without excessive 
salary, overhead, or administrative expense. Specifically, the state 
should describe the administrative costs incurred in operating its 
current homeowner assistance program. States should also project the 
administrative costs incurred to implement the program with HUD 
assistance made available through the Emergency Homeowners' Loan 
program. Administrative costs include costs related to planning and 
implementing this program, along with the costs associated with the 
preparation and submission of HUD reports, etc.
    D. Information must be submitted to [email protected], 
no later than 11:59 a.m. on the Deadline Date.
    E. If there is a discrepancy between any materials published by HUD 
in this notice and other information provided about the program, the 
published notice prevails.

V. Nondiscrimination and Civil Rights Requirements

    States operating existing programs that provide substantially 
similar assistance to homeowners are considered recipients of federal 
assistance, and, therefore, must comply with the following federal 
requirements:
     Fair Housing Act (42 U.S.C. 3601-19) and implementing 
regulations at 24 CFR part 100 and the regulations at 24 CFR part 107.
     Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d 
et seq.) and implementing regulations at 24 CFR part 1.
     The Age Discrimination Act of 1975 (42 U.S.C. 6101-6107) 
and implementing regulations at 24 CFR part 146.
     Recordkeeping. Recipients will be required to keep 
beneficiary records and report beneficiary data to HUD based on 
protected classes, in accordance with HUD's regulations in 24 CFR part 
121 and other applicable HUD civil rights authorities.

VI. Program Administration

A. Cooperative Agreement
    After HUD determines that the state's submission is complete and 
that the state has an existing program that provides substantially 
similar assistance to HUD's Emergency Homeowners' Loan program, HUD 
will execute a cooperative agreement with the state, state housing 
finance agency, or other nonprofit entity that is state-administered or 
state-chartered, and over which the state has effective control, 
oversight responsibility, and the authority to audit the entity that 
will administer the Emergency Homeowners' Loan program for the state. 
The cooperative agreement will include all applicable requirements 
specific to the Emergency Homeowners' Loan program, federal grant 
requirements, and reporting requirements.
B. Commitment and Expenditure Deadline
    The Dodd-Frank Wall Street Reform and Consumer Act provides that no 
loan or advance of credit shall be insured and no emergency mortgage 
relief payments made after September 30, 2011, except with respect to 
mortgagors approved to receive the benefit of a loan or advance 
insured, or mortgage relief payments on that date. To expedite the use 
of funds, states administering a program that provides substantially 
similar assistance will be subject to the following commitment and 
expenditure deadlines on the grantee's use of funds.
     Obligate not less than 75 percent of grant funded under 
this notice by July 31, 2011; and
     Demonstrate that it will be able to obligate 100 percent 
of its funds by September 30, 2011.

The grantee must track and report to HUD on a regular basis its 
progress in committing and expending Emergency Homeowners' Loan program 
grant funds.
C. Recapture and Reallocation
    If HUD determines in its sole discretion, that a state grantee will 
not be able to obligate 100 percent of its funds by September 30, 2011, 
HUD may recapture all or any portion of the state's unobligated funds, 
and reallocate those funds to states that are able to expend funding 
for substantially similar programs or HUD's Emergency Homeowners' Loan 
program.

VII. Other Information

    Environmental Review. This notice of funding availability does not 
direct, provide for assistance or loan and mortgage insurance for, or 
otherwise govern or regulate, real property acquisition, disposition, 
leasing, rehabilitation, alteration, demolition or new construction, or 
establish, revise, or provide for standards for construction or 
construction materials, manufactured housing, or occupancy. 
Accordingly, under 24 CFR 50.19(c)(1), this notice is categorically 
excluded from environmental review under the National Environmental 
Policy Act of 1969. (42 U.S.C. 4321)

    Dated: November 5, 2010.
David H. Stevens,
Assistant Secretary for Housing--Federal Housing Commissioner.

                               Schedule A
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                                                            Allocation
                         State                                amount
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Texas..................................................     $135,418,959
New York...............................................      111,649,112
Pennsylvania...........................................      105,804,905
Massachusetts..........................................       61,036,001
Washington.............................................       56,272,599
Minnesota..............................................       55,848,137
Wisconsin..............................................       51,540,638
Missouri...............................................       49,001,729
Virginia...............................................       46,627,889
Colorado...............................................       41,286,747
Maryland...............................................       39,962,270
Connecticut............................................       32,946,864
Kansas.................................................       17,748,782
Arkansas...............................................       17,736,991
Iowa...................................................       17,379,343
Louisiana..............................................       16,691,558
Utah...................................................       16,577,582
Oklahoma...............................................       15,575,381
Puerto Rico............................................       14,714,668
Idaho..................................................       13,284,075
New Hampshire..........................................       12,655,243
New Mexico.............................................       10,725,515
Maine..................................................       10,379,657
West Virginia..........................................        8,339,884
Nebraska...............................................        8,304,512
Hawaii.................................................        6,292,250
Delaware...............................................        6,048,577
Montana................................................        5,710,580
Vermont................................................        4,830,215
Alaska.................................................        3,890,898
Wyoming................................................        2,346,329
South Dakota...........................................        2,051,563
North Dakota...........................................        1,320,547
                                                        ----------------
    Total..............................................    1,000,000,000
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[FR Doc. 2010-28552 Filed 11-10-10; 8:45 am]
BILLING CODE 4210-67-P