[Federal Register Volume 81, Number 185 (Friday, September 23, 2016)]
[Notices]
[Pages 65648-65651]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-22947]


-----------------------------------------------------------------------

FEDERAL HOUSING FINANCE AGENCY

[No. 2016-N-07]


Proposed Collection; Comment Request

AGENCY: Federal Housing Finance Agency.

ACTION: 60-day notice of submission of information collection for 
approval from Office of Management and Budget.

-----------------------------------------------------------------------

SUMMARY: In accordance with the requirements of the Paperwork Reduction 
Act of 1995, the Federal Housing Finance Agency (FHFA) is seeking 
public comments concerning the information collection known as the 
``Affordable Housing Program,'' which has been assigned control number 
2590-0007 by the Office of Management and Budget (OMB). FHFA intends to 
submit the information collection to OMB for review and approval of a 
three-year extension of the control number, which is due to expire on 
November 30, 2016.

DATES: Interested persons may submit comments on or before November 22, 
2016.

ADDRESSES: Submit comments to FHFA, identified by ``Proposed 
Collection; Comment Request: `Affordable Housing Program, (No. 2016-N-
07)''' by any of the following methods:
     Agency Web site: www.fhfa.gov/open-for-comment-or-input.
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments. If you submit your 
comment to the Federal eRulemaking Portal, please also send it by email 
to FHFA at [email protected] to ensure timely receipt by the agency.
     Mail/Hand Delivery: Federal Housing Finance Agency, Eighth 
Floor,

[[Page 65649]]

400 Seventh Street SW., Washington, DC 20219, ATTENTION: Proposed 
Collection; Comment Request: ``Affordable Housing Program, (No. 2016-N-
07)''.
    We will post all public comments we receive without change, 
including any personal information you provide, such as your name and 
address, email address, and telephone number, on the FHFA Web site at 
http://www.fhfa.gov. In addition, copies of all comments received will 
be available for examination by the public on business days between the 
hours of 10 a.m. and 3 p.m., at the Federal Housing Finance Agency, 
Eighth Floor, 400 Seventh Street SW., Washington, DC 20219. To make an 
appointment to inspect comments, please call the Office of General 
Counsel at (202) 649-3804.

FOR FURTHER INFORMATION CONTACT: Deattra D. Perkins, Senior Policy 
Analyst, Division of Housing Mission & Goals, [email protected], 
(202) 649-3133; or Sylvia C. Martinez, Manager, Federal Home Loan Bank 
Housing and Community Investment Programs, Division of Housing Mission 
& Goals, [email protected], (202) 649-3301 (these are not toll-
free numbers); Federal Housing Finance Agency, 400 Seventh Street SW., 
Washington, DC 20219. The Telecommunications Device for the Hearing 
Impaired is (800) 877-8339.

SUPPLEMENTARY INFORMATION: 

A. Background

    Section 10(j) of the Federal Home Loan Bank Act (Bank Act) requires 
FHFA to promulgate regulations under which each of the 11 Federal Home 
Loan Banks (Banks) must establish an Affordable Housing Program (AHP), 
to provide subsidy to the Bank's member institutions to: (1) Finance 
homeownership by households with incomes at or below 80 percent of the 
area median income (low- or moderate-income households); and (2) to 
finance the purchase, construction, or rehabilitation of rental housing 
in which at least 20 percent of the units will be occupied by and 
affordable for households earning 50 percent or less of the area median 
income (very low-income households).\1\ Section 10(j) also establishes 
standards and requirements for providing such subsidized funding to 
Bank members and requires each Bank to contribute 10 percent of its 
previous year's net earnings to its AHP annually, subject to a minimum 
annual combined contribution by the 11 Banks of $100 million.\2\
---------------------------------------------------------------------------

    \1\ 12 U.S.C. 1430(j)(1) and (2).
    \2\ 12 U.S.C. 1430(j)(5)(C).
---------------------------------------------------------------------------

    FHFA's AHP regulation, which implements the statutory AHP 
requirements, is set forth at 12 CFR part 1291. The regulation requires 
that each Bank establish and fund an AHP and sets forth the parameters 
within which the Banks' programs must operate. The regulation permits 
the Banks a degree of discretion in determining how their individual 
programs are to be implemented and requires that each Bank adopt an AHP 
Implementation Plan setting forth the specific requirements for that 
Bank's program.\3\
---------------------------------------------------------------------------

    \3\ 12 CFR 1291.3.
---------------------------------------------------------------------------

Competitive Application Programs

    The AHP regulation requires each Bank to establish a competitive 
application program under which the Bank accepts applications for AHP 
subsidized advances or direct subsidies (grants) submitted by its 
members on behalf of non-member entities having a significant 
connection to the projects for which subsidy is being sought (project 
sponsors).\4\ Each Bank accepts applications for AHP subsidy under its 
competitive application program during a specified number of funding 
periods each year, as determined by the Bank.\5\ A Bank must determine 
for each application it receives whether the proposed project meets the 
AHP regulatory eligibility requirements.\6\ The Bank must score each 
application according to AHP regulatory and Bank-specific scoring 
guidelines, and approve the highest scoring projects within that 
funding period for AHP subsidy.\7\
---------------------------------------------------------------------------

    \4\ 12 CFR 1291.5. Under the regulation, an AHP project sponsor 
may be an entity that either: (1) has an ownership interest in a 
rental project; (2) is integrally involved in an owner-occupied 
project, such as by exercising control over the planning, 
development, or management of the project, or by qualifying 
borrowers and providing or arranging financing for the owners of the 
units; (3) operates a loan pool; or (4) is a revolving loan fund. 12 
CFR 1291.1 (definition of ``sponsor'').
    \5\ 12 CFR 1291.5(b)(1).
    \6\ 12 CFR 1291.5(c).
    \7\ 12 CFR 1291.5(d).
---------------------------------------------------------------------------

    The regulation provides that, prior to each disbursement of AHP 
subsidy for a project approved under a Bank's competitive application 
program, the Bank must confirm that the project continues to meet the 
AHP regulatory eligibility requirements, as well as all commitments 
made in the approved AHP application.\8\ As part of this process, Banks 
typically require that the member and project sponsor provide 
documentation demonstrating continuing compliance.
---------------------------------------------------------------------------

    \8\ 12 CFR 1291.5(g)(3).
---------------------------------------------------------------------------

    The regulation permits a Bank to approve a modification to the 
terms of an approved application that would change the score that the 
application received in the funding period in which it was originally 
scored and approved, had the changed facts been operative at that time. 
To approve a modification: (i) The project, incorporating the changes, 
must continue to meet the regulatory eligibility requirements; (ii) the 
application, as reflective of the changes, must continue to score high 
enough to have been approved in the funding period in which it was 
originally scored and approved; and (iii) there must be good cause for 
the modification, and the analysis and justification for the 
modification must be documented by the Bank in writing.\9\ Banks 
typically require the member and project sponsor requesting a 
modification to provide a written analysis and justification as part of 
their modification request.
---------------------------------------------------------------------------

    \9\ 12 CFR 1291.5(f).
---------------------------------------------------------------------------

    The regulation requires generally that a Bank monitor each owner-
occupied and rental project receiving AHP subsidy under its competitive 
application program prior to and after project completion. For initial 
monitoring, a Bank must determine whether the project is making 
satisfactory progress towards completion, in compliance with the 
commitments made in the approved application, Bank policies, and the 
AHP regulatory requirements. Following project completion, the Bank 
must determine whether satisfactory progress is being made towards 
occupancy of the project by eligible households, and whether the 
project meets the regulatory requirements and the commitments made in 
the approved application.\10\ For long-term monitoring of rental 
projects, subject to certain exceptions in the AHP regulation, the Bank 
must determine whether, during the 15-year retention period, the 
household incomes and rents comply with the income targeting and rent 
commitments made in the approved application.\11\ For both the initial 
and long-term monitoring, a Bank must review appropriate documentation 
maintained by the project sponsor.
---------------------------------------------------------------------------

    \10\ 12 CFR 1291.7(a)(1).
    \11\ 12 CFR 1291.7(a)(4).
---------------------------------------------------------------------------

Homeownership Set-Aside Programs

    The AHP regulation also authorizes each Bank, in its discretion, to 
allocate up to the greater of $4.5 million or 35 percent of its annual 
required AHP contribution to establish homeownership set-aside programs 
for the purpose of promoting homeownership for low- or moderate-income 
households.\12\ Under these

[[Page 65650]]

homeownership set-aside programs, a Bank may provide to its members AHP 
direct subsidies, which are to be provided by the members to eligible 
households as a grant to pay for down payment, closing cost, counseling 
cost or rehabilitation assistance in connection with the household's 
purchase of a primary residence or rehabilitation of an owner-occupied 
residence.\13\ Prior to the Bank's disbursement of a direct subsidy 
under its homeownership set-aside program, the member must provide a 
certification that the subsidy will be provided in compliance with all 
applicable regulatory eligibility requirements.\14\
---------------------------------------------------------------------------

    \12\ 12 CFR 1291.2(b)(2); 1291.6.
    \13\ 12 CFR 1291.6(c)(4).
    \14\ 12 CFR 1291.7(b)(2).
---------------------------------------------------------------------------

AHP Information Submitted by Banks to FHFA

    FHFA's Data Reporting Manual (DRM) requires each Bank to submit to 
FHFA aggregate AHP information.\15\ The DRM requires each Bank to 
submit to FHFA project-level information regarding its competitive 
application program and household-level information regarding its 
homeownership set-aside program semi-annually. The information the 
Banks are required to submit to FHFA under the DRM is derived from the 
documentation submitted by Bank members and project sponsors that is 
described above.
---------------------------------------------------------------------------

    \15\ The AHP reporting requirements are located in chapter 5 of 
the DRM, which is available electronically on FHFA's public Web site 
at http://www.fhfa.gov/SupervisionRegulation/FederalHomeLoanBanks/Documents/FHFB-Resolutions/2006/2006-13-Attachment.pdf.
---------------------------------------------------------------------------

B. Need for and Use of the Information Collection

    The Banks use the information collected under part 1291 to 
determine whether: (1) Projects for which Bank members and project 
sponsors are seeking subsidies under the Banks' competitive application 
programs satisfy the applicable statutory and regulatory requirements 
and score highly enough in comparison with other applications submitted 
during the same funding period to be approved for AHP subsidies; (2) 
projects approved under the Banks' competitive application programs 
continue to meet the applicable requirements and to comply with the 
commitments made in the approved applications each time subsidy is 
disbursed; (3) requests for modifications of projects approved under 
the Banks' competitive application programs meet the regulatory 
requirements for approval; (4) projects approved under the Banks' 
competitive application programs are making satisfactory progress 
towards completion, and following project completion, are making 
satisfactory progress towards occupancy of the project by eligible 
households, in compliance with the commitments made in the approved 
applications, Bank policies, and the regulatory requirements (initial 
monitoring); (5) during the 15-year retention period, completed rental 
projects continue to comply with the household income targeting and 
rent commitments made in the approved applications (long-term 
monitoring); and (6) applications for direct subsidy under Banks' 
homeownership set-aside programs were approved, and the direct 
subsidies disbursed, in accordance with the regulatory requirements.
    FHFA uses the information required to be submitted by the Banks 
under the DRM to verify that the Banks' funding decisions, and the use 
of the funds awarded, were consistent with statutory and regulatory 
requirements.
    The OMB control number for the information collection is 2590-0007. 
The current clearance expires on November 30, 2016. The likely 
respondents are institutions that are Bank members and non-member 
entities that sponsor an AHP project.

C. Burden Estimate

    FHFA has analyzed each of the six facets of this information 
collection in order to estimate the hour burdens that the collection 
will impose upon Bank members and AHP project sponsors annually over 
the next three years. Based on that analysis, FHFA estimates that the 
total annual hour burden will be 115,750. The method FHFA used to 
determine the annual hour burden for each facet of the information 
collection is explained in detail below.

I. AHP Competitive Applications

    FHFA estimates that Bank members, on behalf of project sponsors, 
will submit to the Banks an annual average of 1,350 applications for 
AHP subsidies under the Banks' competitive application programs and 
that the average preparation time for each application will be 24 
hours. The estimate for the total annual hour burden on members and 
project sponsors in connection with the preparation and submission of 
AHP competitive applications is 32,400 hours (1,350 applications x 24 
hours).

II. Compliance Submissions for Approved Competitive Application 
Projects at AHP Subsidy Disbursement

    FHFA estimates that Bank members, on behalf of project sponsors, 
will make an annual average of 700 submissions to the Banks documenting 
that projects approved under the Banks' competitive application 
programs continue to comply with the regulatory eligibility 
requirements and all commitments made in the approved applications at 
the time each AHP subsidy is disbursed, and that the average 
preparation time for each submission will be 1 hour. The estimate for 
the total annual hour burden on members and project sponsors in 
connection with the preparation and submission of these compliance 
submissions is 700 hours (700 submissions x 1 hour).

III. Modification Requests for Approved Competitive Application 
Projects

    FHFA estimates that Bank members, on behalf of project sponsors, 
will submit to the Banks an annual average of 300 requests for 
modifications to projects that have been approved under the Banks' 
competitive application programs, and that the average preparation time 
for each request will be 2.5 hours. The estimate for the total annual 
hour burden on members and project sponsors in connection with the 
preparation and submission of these modification requests is 750 hours 
(300 requests x 2.5 hours).

IV. Initial Monitoring Submissions for Approved Competitive Application 
Projects

    FHFA estimates that project sponsors will make an annual average of 
500 submissions of documentation to the Banks for purposes of the 
Banks' initial monitoring of in-progress and recently completed 
projects approved under their competitive application programs, and 
that the average preparation time for each submission will be 5 hours. 
The estimate for the total annual hour burden on project sponsors in 
connection with the preparation and submission of documentation 
required for initial monitoring of competitive application projects is 
2,500 hours (500 submissions x 5 hours).

V. Long-Term Monitoring Submissions for Approved Competitive 
Application Program Projects

    FHFA estimates that project sponsors will make an annual average of 
4,800 submissions of documentation to the Banks for purposes of the 
Banks' long-term monitoring of completed projects approved under their 
competitive application programs, and that the average preparation time 
for each submission will be 3 hours. The estimate for the total annual 
hour burden on project sponsors in connection with the preparation and

[[Page 65651]]

submission of documentation required for long-term monitoring of 
competitive application projects is 14,400 hours (4,800 submissions x 3 
hours).

VI. Homeownership Set-aside Program Applications and Certifications

    FHFA estimates that Bank members will submit to the Banks an annual 
average of 13,000 applications and required certifications for AHP 
direct subsidies under the Banks' homeownership set-aside programs, and 
that the average preparation time for those submissions together will 
be 5 hours. The estimate for the total annual hour burden on members in 
connection with the preparation and submission of homeownership set-
aside program applications and certifications is 65,000 hours (13,000 
applications/certifications x 5 hours).

D. Public Comments Request

    Written comments are requested on: (1) Whether the collection of 
information is necessary for the proper performance of FHFA functions, 
including whether the information has practical utility; (2) the 
accuracy of FHFA's estimates of the burdens of the collection of 
information; (3) ways to enhance the quality, utility, and clarity of 
the information collected; and (4) ways to minimize the burden of the 
collection of information on members and project sponsors, including 
through the use of automated collection techniques or other forms of 
information technology.

    Dated: September 20, 2016.
Kevin Winkler,
Chief Information Officer, Federal Housing Finance Agency.
[FR Doc. 2016-22947 Filed 9-22-16; 8:45 am]
 BILLING CODE 8070-01-P