[Federal Register Volume 84, Number 161 (Tuesday, August 20, 2019)]
[Notices]
[Pages 43154-43156]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-17914]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-7011-N-37]


30-Day Notice of Proposed Information Collection: Comprehensive 
Transactional Forms Supporting FHA's Section 242 Mortgage Insurance 
Program for Hospitals

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

ACTION: Notice.

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SUMMARY: HUD is seeking approval from the Office of Management and 
Budget (OMB) for the information collection described below. In 
accordance with the Paperwork Reduction Act, HUD is requesting comment 
from all interested parties on the proposed collection of information. 
The purpose of this notice is to allow for an additional 30 days of 
public comment.

DATES: Comments Due Date: September 19, 2019.

ADDRESSES: Interested persons are invited to submit comments regarding 
this proposal. Comments should refer to the proposal by name and/or OMB 
Control Number and should be sent to: Colette Pollard, Reports 
Management Officer, QDAM, Department of Housing and Urban Development, 
451 7th Street SW, Room 4176, Washington, DC 20410-5000; telephone 202-
402-3400 (this is not a toll-free number) or email at 
[email protected] for a copy of the proposed forms or other 
available information. Persons with hearing or speech impairments may 
access this number through TTY by calling the toll-free Federal Relay 
Service at (800) 877-8339.

FOR FURTHER INFORMATION CONTACT: Natalia Yee, Director, Single Family 
Insurance Operations Division, Department of Housing and Urban 
Development, Department of Housing and Urban Development, 451 7th 
Street SW, Washington, DC 20410; email or telephone 202-402-3506. 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 (800) 877-8339. Copies of available documents 
submitted to OMB may be obtained from Ms. Pollard.

SUPPLEMENTARY INFORMATION: This notice informs the public that HUD is 
seeking approval from OMB for the information collection described in 
Section A. The Federal Register notice that solicited public comments 
on the information for a period of 60 days was published on May 24, 
2019.

A. Overview of Information Collection

    Title of Information Collection: Comprehensive Transactional Forms 
Supporting FHA's Section 242 Mortgage Insurance Program for Hospitals.
    OMB Approval Number: 2502-0602.
    Type of Request: Revision.
    Form Number: HUD-91070-OHF, HUD-91071-OHF, HUD-91073-OHF, HUD-
91111-OHF, HUD- 91725-OHF, HUD-92013-OHF, HUD-92023-OHF, HUD-92070-OHF, 
HUD-92080- OHF, HUD-92117-OHF, HUD-92205-OHF, HUD-92223-OHF, HUD-92266-
OHF, HUD-92322-OHF, HUD-92330-OHF, HUD-92330A-OHF, HUD-92403-OHF, HUD- 
92403A-OHF, HUD-92415-OHF, HUD-92422-OHF, HUD-92434-OHF, HUD-92441- 
OHF, HUD-92442-OHF, HUD-92448-OHF, HUD-92452A-OHF, HUD-92452-OHF, HUD-
92455-OHF, HUD-92456-OHF, HUD-92464-OHF, HUD-92466-OHF, HUD- 92476-OHF, 
HUD-92476A-OHF, HUD-92476B-OHF, HUD-92479-OHF, HUD-92554- OHF, HUD-
92576-OHF, HUD-93305-OHF, HUD-94000-OHF, HUD-94001-OHF, HUD-94128-OHF.
    Description of the need for the information and proposed use: This 
collection of information is required specifically for the application 
and administration of the Department of Housing and Urban Development, 
Federal Housing Administration Section 242 Hospital Mortgage Insurance 
Program pursuant to 24 CFR 242, 241, 223(f), and 223(a)(7). The 
collection is a comprehensive set of HUD documents that are critically 
needed for processing applications and loan endorsements for FHA 
mortgage insurance under the Section 242 Hospital Mortgage Insurance 
Program, for ongoing asset management of such facilities, and other 
information related to these facilities for loan modifications, 
construction projects, and physical and environmental reviews.
    This information is requested and is used by the Office of 
Healthcare Facilities (OHF) and Office of Architecture and Engineering 
(OAE) within FHA's Office of Healthcare Programs (OHP).
    The purpose for which the information is being collected by HUD is 
to review Section 242 applications to determine the eligibility of 
applicant hospitals for FHA mortgage insurance, underwrite insured 
hospital loans, ensure that the collateral securing each loan is 
adequate, capture administrative data, process initial/final 
endorsement, and manage FHA's hospital portfolio. Additional 
information related to loan modifications, construction projects,

[[Page 43155]]

and physical and environmental reviews is collected if applicable.
    The information being collected consists of various HUD forms that 
program participants complete with project specifications, technical 
descriptions, details, and/or signatures that are utilized by HUD 
during various stages of the application, underwriting, commitment, 
closing, and asset management processes involved with the 
administration of FHA's Section 242 mortgage insurance program.
    The information is used by HUD staff for internal review of 
applications to determine if projects qualify for Section 242 hospital 
mortgage insurance and to manage and monitor the application, 
commitment, initial/final endorsement, asset management, and 
administration processes needed to support hospital projects insured by 
FHA. Agreements and legal documents are used by HUD staff, lenders, 
borrowers, construction managers, and depository institutions, when 
applicable, to process initial/final endorsement of loans. Information 
reported for ongoing asset management of FHA-insured facilities will be 
used by HUD staff to monitor and manage risk within the FHA portfolio 
and ensure ongoing compliance with HUD Program Obligations. Information 
is also be used by HUD staff to determine whether the Program meets its 
stated goals and management objectives. The information is collected 
from lenders/mortgage bankers, borrowers/hospital management officials, 
attorneys, general contractors/construction managers, architects/
engineers, agents and others involved in hospital projects, which may, 
at times include local government entities and other third parties, as 
well as HUD staff to allow OHF to manage and monitor the application, 
commitment, initial/final endorsement, asset management, and 
administration processes needed to support hospital projects insured by 
FHA.
    This collection is needed to update and renew the current 
collection that was approved for a 36-month period by OMB on August 19, 
2016, with an expiration date of August 31, 2019. Where changes have 
been made to existing OHF forms, the proposed versions are also 
presented in both redline/strikeout and unmarked formats. New or 
unchanged forms are presented in unmarked format. The revised hospital 
documents can be viewed at: http://portal.hud.gov/hudportal/HUD?src=/federal_housing_administration/healthcare_facilities/section_242/additional_resources/242_docs_2019renewal.
    Two new forms are being added to this collection: HUD-92266-OHF 
(Application for Transfer of Physical Assets) and HUD-92476B-OHF 
(Escrow Agreement for Proceeds from Partial Release of Collateral). The 
HUD-92266-OHF form is based on an existing Office of Multifamily form, 
modified for Section 242-insured hospitals. The application collects 
the information required for OHF staff to review requests to transfer 
insured physical assets to new purchasers that will continue to hold 
the FHA-insured loan. The HUD-92476B-OHF is being added to provide an 
escrow agreement template for infrequent instances when a borrower 
sells and requests to release HUD-insured collateral. Both documents 
are based on existing versions used by the Office of Housing in other 
mortgage insurance programs but modified to appropriately reflect 
Section 242 program needs.
    HUD-9250-OHF (Funds Authorizations) will be removed from the 
collection. The document was added to Collection 2502-0602 in a prior 
submission and was based upon a similar form used for OHP's residential 
care facility program. The form has proven to be unnecessary for the 
Section 242 hospital program and will be removed.
    Thirty-five of the forty documents within the collection are being 
renewed with no operational content changes, except for updated burden 
hour estimates and additional language added to the burden statements 
to ensure that requirements under 5 CFR 1320.8(b)(3) are met. 
Additional language (specifically, the phrase ``under penalty of 
perjury'') was also added to clarify fraud warnings and certification 
for forms with certifications. Revisions are proposed for the HUD-
92466-OHF (Regulatory Agreement), HUD-92422-OHF (Financial and 
Statistical Data for HUD Reporting), and HUD-94000-OHF (Security 
Instrument) to include edits that were made to clarify current policies 
and definitions, reflect updated general accepted accounting standards, 
or to address minor inconsistencies across documents. A summary of the 
specific changes made to the revised documents is provided below.

Summary of Changes to Documents

    HUD-92476B-OHF Escrow Agreement for Proceeds from Partial Release 
of Collateral. New document used to establish an escrow agreement and 
escrow account as part of the approval process for the partial release 
of FHA-insured collateral. Document defines permitted uses of escrowed 
proceeds, including usage for collateralized property improvements, 
purchase of equipment, or principal payments of the FHA-insured 
mortgage. Requires approval of all advances in writing by HUD and the 
Lender.
    HUD-92266-OHF Application for Transfer of Physical Assets. New 
document based on an existing Office of Multifamily Housing application 
form for Transfer of Physical Assets transactions, modified for Section 
242-insured hospitals.
    HUD-92422-OHF Financial and Statistical Data for HUD Reporting. 
Definitions were updated to be consistent with account names, and a 
definition for ``Allowances for Contractual Deductions and Bad Debt'' 
was added. ``Deferred Financing Costs'' was moved from the ``Limited 
Use Assets'' to the ``Long Term Debt and Leases'' (previously ``Long 
Term Debt and Capital Leases'') account. ``Right of Use Assets'' was 
added to the ``Net PPE'' account. Some restricted and unrestricted net 
asset accounts were combined and account names and definitions were 
updated. A note was added to clarify that ``Bad Debt Expense'' can be 
recorded as a separate line item, depending on the accounting reporting 
standards being used.
    HUD-94000-OHF Security Instrument/Mortgage/Deed of Trust. In 
Section 1 (Definitions), the definition of Patient Accounts Receivables 
was clarified in the definition of Accounts Receivables. The definition 
of Personality and Mortgaged Property was revised to add the income or 
sales distributed from a joint venture.
    HUD-92466-OHF Hospital Regulatory Agreement--Borrower. Changes were 
made to sections of the Regulatory Agreement as follows:
     Section 1 and Section 49 (Definitions). Revised to include 
definitions found in 24 CFR 242.1 and Handbook 4615.1 to provide 
clarity. Definitions section from Appendix D was moved to Section 49. 
Definition of Patient Accounts Receivables was added for Distribution 
of Assets in Section 18 and Additional Indebtedness in Section 20.
     Section 11--Property and Operations; Encumbrances. Added 
new item (g) regarding Borrower notification to HUD.
     Section 17--Transactions with Affiliates. Clarified 
transactions with Affiliates regarding lower of fully allocated cost or 
market value.
     Section 18--Distribution of Assets. Changed Section 
18(b)(v) to reflect financial requirements per 24 CFR 242.1 for the 
Surplus Cash definition. Included definitions and ratios in Section 49.

[[Page 43156]]

     Section 19--Board Review/Business Plan/Consultants' 
Report. Added ``BOARD REVIEW'' to title for clarity. In Section 
19(c)(iv), removed ``pro forma balance sheet'' as a deliverable and 
clarified Business Plan deliverables to HUD for income statement and 
cash flow analysis. Combined the roles of ``Review Consultant'' and 
``Independent Consultant'' into one consultant to allow for more timely 
review and cost savings for Borrower.
     Section 20--Additional Indebtedness. Under Long Term Debt, 
clarified when HUD consent is needed versus notification and timing; 
added CEO to parties eligible to submit documentation for notification; 
and added new section 20(a)(vi) to specify Borrower agreement to assets 
becoming part of the Mortgaged Property at HUD's discretion upon 
release of a lien. Under Unsecured Short-Term Debt, clarified when HUD 
consent is needed versus notification and timing and added CEO to 
parties eligible to submit documentation for notification. Added 
Section 20(c) for Lines of Credit to apply to short-term and long-term 
lines of credits secured by accounts receivable.
     Section 21--Successor Clause. Removed Section 21(a). 
Clarified successor clauses and definitions to emphasize HUD's option 
for approval.
     Section 29--Permits and Approvals. Added new Section 29(e) 
regarding Borrower's responsibility to report accrediting organization 
or entity findings to HUD upon occurrence, along with action plan 
requirements.
     Section 36--Actions Requiring Prior Written Approval of 
HUD. Revised 36(g) to clarify when HUD approval is required for actions 
impacting collateral under the FHA-insured mortgage. Added new item 
36(q) for establishing, developing, or organizing a joint venture.

A. Responses to Public Comments Received

    HUD received one comment regarding collection 2502-0602 during the 
60-day comment period that closed on July 23, 2019. The comment 
addressed an issue with the link to the posted documents online not 
working correctly. HUD corrected the issue and responded to this 
comment directly.
    Respondents (i.e. affected public): Lenders/mortgage bankers, 
borrowers/hospital management officials, attorneys, general 
contractors/construction managers, architects/engineers, agents and 
others involved in hospital projects, which may, at times include local 
government entities and other third parties, as well as other agents 
involved in hospital projects seeking FHA mortgage insurance.
    Estimated Number of Respondents: 485.
    Estimated Number of Responses: 1,069.
    Frequency of Response: 2.2.
    Average Hours per Response: 74.
    Total Estimated Burdens: 79,426.

B. Solicitation of Public Comment

    This notice is soliciting comments from members of the public and 
affected parties concerning the collection of information described in 
Section A on the following:
    (1) Whether the proposed collection of information is necessary for 
the proper performance of the functions of the agency, including 
whether the information will have practical utility; (2) The accuracy 
of the agency's estimate of the burden of the proposed collection of 
information; (3) Ways to enhance the quality, utility, and clarity of 
the information to be collected; and (4) Ways to minimize the burden of 
the collection of information on those who are to respond; including 
through the use of appropriate automated collection techniques or other 
forms of information technology, e.g., permitting electronic submission 
of responses.
    HUD encourages interested parties to submit comment in response to 
these questions.

    Authority: Section 3507 of the Paperwork Reduction Act of 1995, 
44 U.S.C. Chapter 35.

    Dated: August 9, 2019.
 Colette Pollard,
Department Reports Management Officer, Office of the Chief Information 
Officer.
[FR Doc. 2019-17914 Filed 8-19-19; 8:45 am]
BILLING CODE 4210-67-P