[Federal Register Volume 78, Number 237 (Tuesday, December 10, 2013)]
[Notices]
[Pages 74157-74159]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-29440]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5748-N-01]


Notice of HUD-Held Multifamily Loan Sale (MLS 2014-1)

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

ACTION: Notice of sale of an individual 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 auction limited to participation by Units 
of Local Governments (ULGs) and Non-profit Corporations on December 12, 
2013 (MLS 2014-1). This notice also describes generally the bidding 
process for the sale and certain persons who are ineligible to bid.

DATES: A Bidder's Information Package (BIP) was made available on or 
about

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November 18, 2013. Bids for the loan must be submitted on the bid date 
of December 12, 2013, during the specified timeframe. HUD anticipates 
that the award will be made on or shortly after bid day, December 12, 
2013. Closing is expected to take place between December 18, 2013, and 
December 20, 2013.

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 are available on the HUD Web site at www.hud.gov/fhaloansales. Please mail and fax executed documents to JS Watkins 
Realty Partners, LLC: J.S. Watkins Realty Partners, LLC, c/o The Debt 
Exchange, 133 Federal Street, 10th Floor, Boston, MA 02111, Attention: 
MLS 2014-1 Sale Coordinator, Fax: 1-978-967-8607.

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

SUPPLEMENTARY INFORMATION: HUD announces its intention to sell, in MLS 
2014-1, an individual unsubsidized multifamily mortgage loan (Mortgage 
Loan) secured by one (1) multifamily property located in St. Louis, 
Missouri. The Mortgage Loan is a non-performing mortgage loan. A 
listing of this Mortgage Loan is included in the BIP. 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.
    Qualified bidders may submit bids on this Mortgage Loan. A 
mortgagor who is a qualified bidder may submit an individual bid on its 
own Mortgage Loan. Interested Mortgagors should review the 
Qualification Statement to determine whether they may also be eligible 
to qualify to submit a bid.

The Bidding Process

    The BIP describes in detail the procedure for bidding MLS 2014-1. 
The BIP also includes a standardized non-negotiable loan sale agreement 
(Loan Sale Agreement).
    As part of its bid, each bidder must submit a minimum deposit of 
the greater of 10 percent or $100,000. HUD will evaluate the bids 
submitted and determine the successful bids 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 is expected to 
take place between December 18, 2013 and December 20, 2013.
    These are the essential terms of sale. The BIP and the Loan Sale 
Agreement, which is included in the BIP, contains 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 describes the due diligence process for reviewing the loan 
file in MLS 2014-1. Qualified bidders can access loan information 
remotely via a high-speed Internet connection. Further information on 
performing due diligence review of the Mortgage Loan is provided in the 
BIP.

Mortgage Loan Sale Policy

    HUD reserves the right to add Mortgage Loans to or delete the 
Mortgage Loan from MLS 2014-1 at any time prior to the Award Date. HUD 
also reserves the right to reject any and all bids, in whole or in 
part, without prejudice to HUD's right to include the 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 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 the MLS 2014-1:
    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 2 of the Code of Federal 
Regulations, Part 24;
    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 MLS 2014-1;
    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 MLS 2014-1;
    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 MLS 2014-1;
    7. Any affiliate, principal or employee of any person or entity 
that, within the two-year period prior to December 1, 2013, serviced 
the Mortgage Loan or performed other services for or on behalf of HUD;
    8. Any contractor or subcontractor to HUD that otherwise had access 
to information concerning the Mortgage Loan on behalf of HUD or 
provided services to any person or entity which, within the two-year 
period prior to December 1, 2013 had access to information with respect 
to the Mortgage Loan on behalf of HUD;
    9. Any employee, officer, director or any other person that 
provides or will provide services to the potential bidder with respect 
to such Mortgage Loan during any warranty period established for the 
Loan Sale, that serviced the Mortgage Loan or performed other services 
for or on behalf of HUD or within the two-year period prior to December 
1, 2013 or that provided services to any person or entity which 
serviced, performed services or otherwise had access to information 
with respect to the Mortgage Loan for or on behalf of HUD;
    10. Any mortgagor or operator that failed to submit to HUD on or 
before

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March 31, 2013 audited financial statements for fiscal years 2010 
through 2012 (for such time as the project has been in operation or the 
prospective bidder served as operator, if less than three (3) years) 
for a project securing a Mortgage Loan;
    11. 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 or a mortgagor or operator in a healthcare facility 
(regardless of whether such mortgage loan is included in the Loan Sale) 
and that is in default under such mortgage loan or is in violation of 
any regulatory or business agreements with HUD and fails to cure such 
default or violation by no later than November 30, 2013.
    12. Any individual or entity that is not/cannot be classified as a 
Unit of Local Government (ULG) or Non-profit Corporation.
    The Qualification Statement provides further details pertaining to 
eligibility requirements. Prospective bidders should carefully review 
the Qualification Statement to determine whether they are eligible to 
submit bids on the Mortgage Loans in this offering of MLS 2014-1.

Freedom of Information Act Requests

    HUD reserves the right, in its sole and absolute discretion, to 
disclose information regarding MLS 2014-1, including, but not limited 
to, the identity of any successful bidder and its bid price or bid 
percentage for any individual loan, upon the closing of the sale of the 
Mortgage Loan. Even if HUD elects not to publicly disclose any 
information relating to MLS 2014-1, 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 MLS 2014-1 and does not establish HUD's 
policy for the sale of other mortgage loans.

    Dated: December 5, 2013.
Carol J. Galante,
Assistant Secretary for Housing--Federal Housing Commissioner.
[FR Doc. 2013-29440 Filed 12-9-13; 8:45 am]
BILLING CODE 4210-67-P