[Federal Register Volume 79, Number 192 (Friday, October 3, 2014)]
[Rules and Regulations]
[Pages 59646-59647]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-23484]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Parts 5 and 232

[Docket No. FR-5794-N-02]


Federal Housing Administration (FHA): Section 232 Healthcare 
Facility Insurance Program--Submission of Operator Financial Reports in 
Accordance With HUD's Uniform Financial Reporting Standards: 
Commencement of Compliance

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

ACTION: Announcement of commencement of compliance.

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SUMMARY: On September 16, 2014, HUD published an interim rule that 
revised the financial reporting deadlines for operators participating 
in FHA's program for insurance of health care facilities under section 
232 of the National Housing Act (Section 232 program) to bring the 
operators in-line with the reporting periods prescribed in HUD's 
Uniform Financial Reporting Standards. In accordance with HUD's 
regulations implementing its Uniform Financial Reporting Standards, HUD 
is providing notice that it has issued guidance on the manner in which 
the reports by operators are to be submitted to HUD.

DATES: Compliance date: December 2, 2014.

[[Page 59647]]


FOR FURTHER INFORMATION CONTACT: Vance T. Morris, Office of Residential 
Care Facilities, Office of Healthcare Programs, Office of Housing, 
Department of Housing and Urban Development, 451 7th Street SW., Room 
6264, Washington, DC 20410-8000; telephone number 202-708-0599 (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 Relay 
Service at 1-800-877-8339.

SUPPLEMENTARY INFORMATION: Through a final rule published on September 
7, 2012, at 77 FR 5512, HUD revised and updated the regulations for 
FHA's Section 232 program, regulations that had not been revised since 
1996. HUD revised the Section 232 program regulations to reflect 
current policy and practices, and improve accountability and strengthen 
risk management in the Section 232 program.
    Included in the updates made by the 2012 rulemaking were revisions 
to 24 CFR 5.801 (Uniform Financial Reporting Standards) and 24 CFR 
232.1009 (Financial Reports), both of which contained reporting 
requirements applicable to the Section 232 program. HUD revised these 
regulatory sections to include operators of projects insured or held by 
HUD as entities that must submit financial statements to HUD. Owners 
and borrowers have long been required to submit financial reports. 
Sections 5.801(c)(4) and 232.1009 provide that operators must submit 
financial statements to HUD quarterly within 30 calendar days of the 
date of the end of each fiscal quarter, and 60 calendar days from the 
end of the fiscal-year-end. The other entities in the Section 232 
program required to submit reports were provided slightly longer 
periods to prepare and submit the reports than that provided to 
operators. Accordingly, the September 7, 2012, rule placed operators on 
a different submission deadline than that required of owners.
    HUD's interim rule published on September 16, 2014, at 79 FR 55360, 
revised the financial reporting deadlines for operators to bring them 
in-line with the reporting periods prescribed in HUD's Uniform 
Financial Reporting Standards, to which owners and borrowers are 
subject. The interim rule increases the amount of time operators have 
to comply with the reporting requirements provided in Sec. Sec.  
5.801(c)(4) and 232.1009. The interim rule provides that operators will 
have an additional 30 calendar days to comply with the financial 
statement reporting requirements. Operators will now have 60 calendar 
days following the end of a fiscal quarter and 90 calendar days 
following the end of the fiscal-year-end quarter to comply with HUD's 
financial statement reporting requirements.
    Section 5.801(d)(4) of HUD's Uniform Financial Reporting Standards 
regulations provides that operators of projects with Section 232 
insured mortgages (the entities described in Sec.  5.801(a)(6)) must 
comply with the requirements of Sec.  5.801 with respect to fiscal 
years commencing on or after the date that is 60 calendar days after 
the date on which HUD announces, through Federal Register notice, that 
it has issued guidance on the manner in which these reports will be 
transmitted to HUD.
    This document serves as the notice required by Sec.  5.801(d)(4) 
that HUD has issued guidance on the manner in which the operator 
financial reports will be transmitted to HUD. That guidance can be 
found under the Guidance for Lenders' Operator Financial Statement 
section at http://portal.hud.gov/hudportal/HUD?src=/federal_housing_administration/healthcare_facilities/residential_care. 
Accordingly, operators must comply with the operator financial report 
requirements for fiscal years commencing on or after December 2, 2014.

Information Collection Requirements

    The information collection requirements contained in this rule were 
reviewed by the Office of Management and Budget (OMB) under the 
Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520), and assigned OMB 
Control Number 2502-0605. In accordance with the Paperwork Reduction 
Act, an agency may not conduct or sponsor, and a person is not required 
to respond to, a collection of information, unless the collection 
displays a currently valid OMB control number.

    Dated: September 26, 2014.
Carol J. Galante,
Assistant Secretary for Housing--Federal Housing Commissioner.
[FR Doc. 2014-23484 Filed 10-2-14; 8:45 am]
BILLING CODE 4210-67-P