[Federal Register Volume 85, Number 229 (Friday, November 27, 2020)]
[Notices]
[Pages 76091-76100]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-26224]
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HOUSING AND URBAN DEVELOPMENT
[Docket No FR-6178-D-02]]
Delegations of Authority for the Office of Housing--Federal
Housing Administration (FHA); Redelegations of Authority Regarding
Multifamily Housing Programs
AGENCY: Office of the Assistant Secretary for Housing--Federal Housing
Commissioner, HUD.
ACTION: Notice of revocation and redelegation of authority.
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SUMMARY: On June 20, 2012, the Assistant Secretary for Housing--Federal
Housing Commissioner published comprehensive redelegations of authority
for the Office of Multifamily Housing Programs. Today's notice of
redelegations of authority updates and amends the notice that was
published on June 20, 2012. This notice reflects changes that have been
made to the redelegations of authority regarding multifamily housing
programs since the June 2012 Delegations. In general, these changes
reflect the Multifamily for Tomorrow (MFT) Transformation, which has:
Transitioned existing Multifamily Hubs and Program Centers into five
(5) Multifamily Regional Centers and seven (7) Multifamily Satellite
Offices. In addition, the MFT Transformation reorganized HUD
Headquarters offices to expand the Office of Affordable Housing
Preservation and rename it as the Office of Recapitalization; rename
the Office of Multifamily Development as the Office of Multifamily
Production; create a new Office of Field Support and Operations; and
expand the Office of Asset Management to incorporate the Office of
Housing Assistance and Grants Administration and the Office of Housing
Assistance Contract Administration Oversight, and rename the expanded
office the Office of Asset Management and Portfolio Oversight.
DATES: November 23, 2020.
FOR FURTHER INFORMATION CONTACT: Jeffrey D. Little, Associate Deputy
Assistant Secretary for Office of Multifamily Housing Programs, Office
of Housing, U.S. Department of Housing and Urban Development, 451
Seventh Street SW, Room 6112, Washington, DC 20410-8000, telephone 202-
402-5647. (This is not a toll-free number). Persons with hearing or
speech impairments may access this number through TTY by calling the
Federal Relay Service number at 800-877-8339.
SUPPLEMENTARY INFORMATION:
[[Page 76092]]
Section I. Multifamily Housing Programs: Office of Housing Organization
A. Office of Multifamily Housing Programs--Headquarters
In general, all Headquarters and field managers and staff of the
Office of Multifamily Housing Programs report to the Deputy Assistant
Secretary for Multifamily Housing Programs. In Headquarters, there are
now four (4) major Multifamily Housing program offices. These offices
and a general description of each appear below.
1. Office of Multifamily Production
The Office of Multifamily Production develops and implements
policies and guidelines for the loan origination aspects of Federal
Housing Administration (FHA) multifamily housing mortgage insurance
programs from pre-application to final endorsement of the mortgage
note. The Office is responsible for Traditional Application Processing
(TAP), Multifamily Accelerated Processing (MAP), and Section 542 Risk-
Sharing mortgage insurance policies and procedures. The Office of
Multifamily Production staff provides technical guidance to the HUD/FHA
multifamily housing field staff, the industry, and other Headquarters
offices. The Office is headed by a Director and a Deputy Director.
2. Office of Asset Management and Portfolio Oversight
The Office of Asset Management and Portfolio Oversight (OAMPO),
which was formed from the merger of the Office of Asset Management, the
Office of Housing Assistance and Grant Administration, and the Office
of Housing Assistance Contract Administration Oversight, is primarily
responsible for strategic planning, guidance, lender approval, and
lender monitoring, and oversight of HUD's multifamily housing portfolio
of project assets after final endorsement of the mortgage note and upon
occupancy. The Office is headed by a Director and a Deputy Director.
a. Asset Management Functions
OAMPO develops policy for, and oversees, field office asset
management operations. OAMPO is responsible for oversight of regulated
property ownership and management, routine mortgage servicing, default
servicing, partial payment of claims, acquisition and/or disposition of
loans and properties, lender approval and monitoring, the Flexible
Subsidy Program, and management of properties where the Secretary is
the owner (as a result of default and foreclosure) or mortgagee-in-
possession. OAMPO serves as Multifamily Housing's liaison with the Real
Estate Assessment Center (REAC) and the Departmental Enforcement Center
(DEC). In addition, OAMPO oversees field office and lender servicing
activities for HUD-assisted and HUD-insured properties. By means of the
Property Disposition Division in Fort Worth, OAMPO oversees and
implements HUD's property disposition efforts through the foreclosure
sale process, property management, relocation of tenants, and sale of
HUD-owned properties. With respect to the disposition of properties
under the originating authorities of the Office of Healthcare Programs,
the Property Disposition Division will follow policies and procedures
as may be established in guidance developed by the Office of Housing
describing specific actions between the Office of Healthcare Programs
and the Office of Multifamily Housing. The two offices must work
together to decide which office is responsible for a particular
function associated with such dispositions.
b. Housing Assistance and Grant Administration Functions
Additionally, OAMPO is responsible for directing and overseeing
housing assistance programs and housing production and development
functions administered by the Office of Multifamily Housing Programs.
OAMPO's programs include post-award implementation of project-based
Section 8 housing assistance, Section 202 and Section 811 programs, the
Emergency Capital Repair Grants program, Service Coordinators in
Multifamily Housing Programs, the Assisted Living Conversion program,
and Congregate Housing Services programs. OAMPO is also involved with
other project-based assistance programs, including Rent Supplement,
Rental Assistance Payments, Section 236 Rental Assistance Payments,
Project Rental Assistance Contracts, and Senior Preservation Rental
Assistance Contracts. In addition, the Office provides occupancy policy
guidance and supports the Rental Housing Integrity Improvement
Initiative and Enterprise Income Verification in connection with HUD
efforts to reduce improper payments. With respect to competitive grant
programs, OAMPO is solely responsible for Section 811 programs, the
Emergency Capital Repair Grants program, Service Coordinators in
Multifamily Housing Programs, with the exception of grants under
Section 514, the Assisted Living Conversion program, and Congregate
Housing Services programs. OAMPO is jointly responsible for competitive
grant programs with respect to Section 202 and Section 514 programs, as
such activities may be allocated among offices by the Deputy Assistant
Secretary.
c. Housing Assistance Contract Administration Oversight Functions
Furthermore, OAMPO is responsible for policies, procedures,
guidelines, performance assessment, and technical and general
compliance under the terms of the respective Annual Contributions
Contracts for Section 8 Contract Administrators (CAs). This Section 8
contract administration oversight ensures that properties continue to
meet the Department's standards for providing decent, safe, and
sanitary housing to low-income families. Additionally, OAMPO is
responsible for assuring that the Department meets its financial
obligations to owners, as specified in the various subsidy contracts,
by ensuring availability of subsidy payments and overseeing ongoing
funding of project-based assistance contracts.
3. Office of Recapitalization
The Office of Recapitalization was originally established within
the Office of Multifamily Housing Programs as the Office of Affordable
Housing Preservation (OAHP), which primarily administered the Mark-to-
Market Program. OAHP was renamed the Office of Recapitalization (Recap)
and expanded as part of the MFT Transformation to process financial
transactions that recapitalize and preserve federally-assisted
affordable housing units and thus ensure long-term physical and
financial viability. Recap is responsible for developing policies and
procedures and providing oversight for the programs administered by
Recap. Recap is involved with project-based assistance programs,
including converting Public Housing projects to the Section 8 platform
via the Rental Assistance Demonstration (RAD), Section 8 Project Based
Rental Assistance, Rent Supplement, Rental Assistance Payments, Section
236 Rental Assistance Payments, Project Rental Assistance Contracts,
and Senior Preservation Rental Assistance Contracts. Recap is jointly
responsible for competitive grant programs with respect to Section 202
and Section 514 programs, as such activities may be allocated among the
offices by the Deputy Assistant Secretary. The programs administered by
Recap are described in Section II.D,
[[Page 76093]]
Recapitalization, below. The Office is headed by a Director and a
Deputy Director. Other leadership of the Office includes the Director
of the Affordable Housing Transaction Division, the Director of the
Closing and Post-Closing Division, the Director of the Recapitalization
Program Administration Office (Division), and subordinate branch
chiefs.
Redelegations of authority to the Director and Deputy Director of
the Office of Recapitalization and other Office of Recapitalization
officials are set forth in Section IV of this notice.
4. Office of Field Support and Operations
The Office of Field Support and Operations (OFSO) is a new office
created from the MFT Transformation. OFSO is responsible for the field
management and operations of multifamily programs in the five Regional
Centers (Atlanta, Chicago, Fort Worth, New York, and San Francisco),
and seven Satellite Offices (collectively ``the field''). The office
provides oversight and direction at the field level in the execution of
Multifamily goals as well as other departmental goals and initiatives.
B. Office of Multifamily Housing Programs--Field Office Structure
The new field office organization now consists of twelve (12)
offices, including five (5) Regional Centers and seven (7) Satellite
Offices.
The highest-ranking official in a Regional Center is the Regional
Director. The immediate deputies of the Regional Director are the
Production Division Director, Asset Management Division Directors, and
the Operations Officer in the Regional Center and in the region's
Satellite Office(s), the Satellite Office Asset Management Division
Director/Satellite Office Coordinator. The Satellite Office Asset
Management Division Director/Satellite Office Coordinator is both an
Asset Management Division Director and the head of that Satellite
Office. The chart below identifies each Regional Center, the Satellite
Office(s) that report to it, and the geographic area served by the
Regional Center and its respective Satellite Office(s). The MFT
Transformation also includes initiatives that require Multifamily
Housing Programs staff to perform duties outside their geographic
jurisdictions identified in the chart below (``Workload Sharing'').
MULTIFAMILY HOUSING PROGRAMS REGIONAL STRUCTURE
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Regional center Satellite office(s) Geographic area serviced
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Atlanta.......................... Jacksonville..................... HUD Region IV: Alabama, Florida, Georgia,
Kentucky, Mississippi, North Carolina,
Puerto Rico, South Carolina, Tennessee,
Virgin Islands.
Chicago.......................... Detroit, Minneapolis............. HUD Region V: Ohio, Illinois, Indiana,
Michigan, Minnesota, Wisconsin.
Fort Worth....................... Kansas City...................... HUD Regions VI and VII: Arkansas, Iowa,
Kansas, Louisiana, Missouri, Nebraska,
New Mexico, Oklahoma, Texas.
New York City.................... Boston, Baltimore................ HUD Regions I, II, and III: Connecticut,
Delaware, District of Columbia, Maine,
Maryland, Massachusetts, New Hampshire,
New Jersey, New York, Pennsylvania, Rhode
Island, Vermont, Virginia, West Virginia.
San Francisco.................... Denver........................... HUD Regions VIII, IX, and X: Alaska,
Arizona, California, Colorado, Hawaii,
Idaho, Montana, Nevada, North Dakota,
Oregon, South Dakota, Utah, Washington,
Wyoming.
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In summary, certain Multifamily Housing Programs officials in
Regional Centers, Satellite Offices, and Headquarters, acting within
the scope of their redelegated authorities and applicable law, have
independent authority, through the delegation process, to make binding
decisions on behalf of the Department. Production Division Directors,
Asset Management Division Directors, and Satellite Office Asset
Management Division Directors/Satellite Office Coordinators report to
Regional Directors.
Section II. Multifamily Housing Programs--Functions
The Office of Multifamily Housing Programs is charged with carrying
out duties on behalf of the Assistant Secretary for Housing--Federal
Housing Commissioner, Chief of Staff for Housing, General Deputy
Assistant Secretary for Housing, and Associate General Deputy Assistant
Secretary for Housing as they relate to multifamily programs set forth
in HUD's governing legislation, as described in the Consolidated
Delegation of Authority for the Office of Housing--Federal Housing
Administration (FHA). This broad range of programs enables HUD, in
concert with the private and public sectors, to provide safe, decent,
and affordable multifamily housing to millions of American families.
The programs include mortgage insurance, rental assistance programs,
and programs to improve and preserve affordable housing. Under this
delegation, the Assistant Secretary for Housing--Federal Housing
Commissioner, Chief of Staff for Housing, General Deputy Assistant
Secretary for Housing, and Associate General Deputy Assistant Secretary
for Housing redelegate broad program authority to the Deputy Assistant
Secretary for Multifamily Housing Programs and to particular
Multifamily Housing Programs officials in Headquarters and the field.
Characterizing the authority that is being redelegated in broad or
general terms in this Section II will enable the Deputy Assistant
Secretary for Multifamily Housing Programs, Associate Deputy Assistant
Secretary for Multifamily Housing Programs, and Multifamily Housing
Program Office Directors to perform all functions necessary to
accomplish Multifamily Housing Programs tasks and objectives.
Section II of this delegation sets forth functions in general
terms, while the preamble provides insights into the nature of the work
performed by officials with delegated authority under each category.
The basic multifamily housing functions and a brief description of each
are as follows:
A. General Authority
This authority allows certain officials in the Office of
Multifamily Housing Programs, designated in this notice, to sign any
and all documents necessary to carry out business within their program
and geographic jurisdictions, except for any authorities retained
exclusively by the Assistant Secretary for Housing--Federal Housing
Commissioner, Chief of Staff for Housing, General Deputy Assistant
Secretary for Housing, and Associate General Deputy Assistant Secretary
for Housing, as described in the Consolidated Delegation of Authority
for the Office of Housing--Federal Housing Administration (FHA).
Designated field officials and their staffs are authorized to engage in
Workload Sharing across regional lines when their
[[Page 76094]]
staffs are performing production and/or asset management/portfolio
oversight functions that are otherwise consistent with limitations
established in these redelegations. In addition, this authority allows
such officials, when considering a proposal, to waive, for good cause
and with written justification, any directives that are not mandated by
statute or regulation or reserved to Headquarters.
B. Multifamily Production
This authority allows an official with delegated authority to make
all necessary determinations that relate to the FHA-insured mortgage
underwriting process and the risk-sharing programs, except as may be
limited by internal controls. Essentially, this category of authority
begins with a pre-application or application for mortgage insurance and
ends with the Department's endorsement of an insured mortgage and
related documentation. For all mortgage insurance programs, it
includes, but is not limited to, such activities as determining the
acceptability of project sites; issuing firm commitments for FHA
insurance; issuing initial or final endorsements for FHA insurance;
executing regulatory agreements; requiring corrective actions and
escrow accounts as needed; and wherever applicable, overseeing the
actions of HUD's program participants in connection with a project's
development (e.g., authorizing a housing finance agency to process risk
sharing loans or to conduct a subsidy layering review).
C. Asset Management and Portfolio Oversight
Functions carried out under this category involve HUD's continuing
relationship with a multifamily project after it has been added to the
HUD portfolio through either FHA mortgage insurance, co-insurance, or
risk-sharing programs; direct loan; capital advance or grant programs;
other subsidy programs; and combinations thereof. Under this category,
ongoing decision-making relates to an insured or subsidized project's
occupancy, operations, and physical and financial condition from the
time of occupancy through final disposition, including, but not limited
to, prepayment, repayment of the loan or end of the subsidy contract,
foreclosure, and/or termination of the subsidy contract. In addition,
functions involve the renewal of Section 8 contracts and other project-
based assistance, and imposing sanctions upon project owners that, for
example, violate the terms of their regulatory agreement and/or Section
8 Housing Assistance Payments contract. Further, functions involve the
oversight of use agreements and contractual restrictions, including
consents to liens, approval of changes in ownership, amendment or
release (in part or in full) of use agreements or contracts, and
granting of other consent rights held by HUD. To the extent that these
functions overlap authority delegated herein to Recap (for example,
with respect to the RAD and Mark-to-Market (M2M) programs), the two
offices must work together to decide which office is responsible for a
particular function. Included in this category is oversight over
housing assistance and competitive grant programs administered by the
Office of Multifamily Housing Programs, except for the authority to
issue a final Notice of Funding Availability (NOFA) or to make grant
awards. Competitive grant programs within the Office of Multifamily
Housing typically include those for the Section 202 Supportive Housing
for the Elderly Program, Section 811 Project Rental Assistance Program,
Section 514 program, and the Multifamily Housing Service Coordinator
Program. To the extent that functions with respect to the Section 202
Supportive Housing for the Elderly Program and Section 514 program
overlap authority delegated herein to Recap, the two offices must work
together to decide which office is responsible for a particular
function. In any given year, Congress may authorize additional or
alternative programs. Office functions include developing the criteria
for applications, rating and ranking applications, and executing grant
agreements. Once a grant is awarded, functions include monitoring
compliance with the grant agreement, terminating a grant for
noncompliance, modifying a grant, and closing out a grant.
Also included are contract administration and oversight. Functions
in this area of contract administration and oversight involve
activities related to the award of the Contract Administration
Contracts (Annual Contribution Contracts), assessment and assignment of
Section 8 contracts to Performance-Based Contract Administrators
(PBCAs), evaluation of PBCA performance, provision of technical
assistance to PBCAs, and prescription of any remedial actions needed to
improve PBCA performance. Key functions also involve developing
policies and procedures for field offices and coordinating efforts
between the PBCAs and the local Multifamily Housing Programs field
office staff; monitoring, evaluating, and providing technical guidance
relative to field activities; assuring that PBCAs provide data needed
to evaluate their performance and the status of contracts they
administer; and coordinating audit activities associated with Section 8
Contract Administration. Funding activities involve budget and funding
responsibilities associated with various rental assistance programs,
including both HUD and third-party administered contracts. Activities
also include creating and approving administrative commitments for
active contracts; determining funding levels; reserving the subsidy
based on funding availability; and monitoring allotments versus annual
appropriations, funding assignments versus allotments, reservations
versus fund assignments, and actual reservations versus estimated
activity. Additional functions include monitoring the timely payment of
Section 8 housing assistance to PBCAs and project owners in
collaboration with the accounting staff in the Office of the Chief
Financial Officer. The funding area also works with the Department's
budget and accounting organizations to generate budget authority
estimates for the above-referenced subsidy programs, to develop
procedures for funding and payment processes, and to integrate systems
to support the data.
Property disposition is also included in this category. Property
disposition functions consist of foreclosure sales, post sales
transaction oversight, tenant relocations, and property management.
These functions include notifying an owner; hearing and deciding an
owner's appeal to the foreclosure determination; deciding the terms of
and directing a foreclosure sale; accepting a deed-in-lieu of
foreclosure; managing HUD-owned and HUD-held properties; authorizing
any work and related terms required by a project in advance of a sale;
advertising a project for sale; approving disposition plans, sales
documents, and purchasers; executing rental assistance contracts; and
relocating residents as may be necessary.
D. Recapitalization
Functions carried out under this category involve HUD efforts to
preserve and recapitalize project-based affordable housing and HUD
approvals informed by underwriting of refinancing transactions often
involving a variety of public and private sector leverage and other
financing sources. Functions primarily involve preservation of
affordable housing through two main programs, the Mark-to-Market
Program and the Rental Assistance Demonstration.
[[Page 76095]]
The Mark-to-Market Program preserves long-term affordability and
availability of low-income rental multifamily housing properties by
restructuring FHA-insured or formerly insured HUD-held mortgages for
eligible multifamily housing projects. The Multifamily Assisted Housing
Reform and Affordability Act of 1997, as amended (MAHRA) (42 U.S.C.
1437f note) authorized a Mark-to-Market program designed to preserve
low-income rental housing affordability while reducing the long-term
costs of Federal rental assistance, including project-based assistance
from HUD, for certain multifamily rental projects. The projects
involved are projects with (1) HUD-insured or formerly insured HUD-held
mortgages; and (2) contracts for project-based rental assistance from
HUD, primarily through the Section 8 program, for which the average
rents for assisted units exceed the market rents. The program
objectives are to (1) preserve housing affordability while reducing the
costs of project-based assistance, often by reducing project-based
rents to market levels; (2) restructure the HUD-insured or formerly
insured HUD-held mortgages so that the monthly payments on the
resulting new (or modified) first mortgage can be supported by the
adjusted rents; (3) reduce the costs of insurance claims; (4) ensure
competent management of the project; and (5) ensure that projects are
adequately capitalized to meet future capital improvement needs. The
restructured project is subject to long-term use and affordability
restrictions. The M2M program's predecessor program was the Portfolio
Reengineering Demonstration Project (Demo) originally authorized in
1996 and most recently in 1998 under title V of the Departments of
Veterans Affairs and Housing and Urban Development, and Independent
Agencies Appropriations Act, 1998 (Pub. L. 105-65).
Related to the M2M program and the Demo program functions are
certain post-transaction reviews (Post M2M), which address the
processing of an owner's request to extend the maturity date of a HUD-
held mortgage on, or to refinance or sell, or to sever excess land
from, a property that previously received the benefits of a debt
restructuring under the M2M program or the Demo program. Post M2M
transactions may also include applications for debt assumption,
modification, or forgiveness of M2M debt for a non-profit qualified by
HUD as being eligible to receive such benefit. In addition, under the
American Recovery and Reinvestment Act of 2009 (Recovery Act), OAHP was
charged with providing grants and loans (Green Retrofit Program Loans
or GRP Loans) for energy retrofit and green investments in assisted
housing projects (Green Retrofit Program or GRP) through the policies,
procedures, contracts, and transactional infrastructure authorized for
M2M. Functions include the administration of GRP Loans, including an
owner's request to extend the maturity date or otherwise modify a GRP
Loan, or when a property encumbered by a GRP Loan is being sold or
refinanced.
The Rental Assistance Demonstration (RAD) allows properties to be
converted from their original regulatory platform to the Section 8
project-based voucher program or the Section 8 project-based rental
assistance program, which in turn allows a variety of financing tools
to be applied to at-risk public and assisted housing in order to
preserve the Nation's stock of deeply affordable rental housing,
promote efficiency within and among HUD programs, and build strong,
stable communities. RAD allows public housing agencies to leverage
public and private debt and equity in order to reinvest in the public
housing stock, and gives owners of multifamily housing properties with
Rent Supplement (Rent Supp) project-based rental assistance contracts,
Section 236 Rental Assistance Payments (RAP) project-based rental
assistance contracts, Section 8 Moderate Rehabilitation (Mod Rehab)
project-based rental assistance contracts, Section 8 Moderate
Rehabilitation Single Room Occupancy (Mod Rehab SRO) project-based
rental assistance contracts, and Section 202 project rental assistance
contracts (Section 202 PRACs) the opportunity to enter into long-term
project-based rental assistance contracts.
Functions related to the RAD, M2M, and Post M2M activities also
involve the oversight of RAD and M2M use agreements and contractual
restrictions, including consents to additional liens, approval of
changes in ownership, amendment or release of use agreements or
contracts, and granting of other consent rights held by HUD.
In addition to these two main programs, functions under this
heading include the following additional programs: (1) The Section 236
program, under which Recap processes Section 236 preservation
transactions in order to recapitalize and/or maintain the affordability
of Section 236 projects through refinancing, tax credits, or other
forms of assistance; (2) the Senior Preservation Rental Assistance
Contract (SPRAC) program, under which new 20-year project-based rental
assistance contracts are entered into that prevent displacement of
income-eligible elderly residents who reside in Section 202 Direct Loan
projects with original interest rates of six (6) percent or less in the
case of refinancing or recapitalization of the project; (3) pre-1974
Section 202 Housing for the Elderly preservation activities, which
coordinate the issuance of Section 8 tenant protection vouchers upon
prepayment or maturity of the Section 202 Direct Loan and the project-
basing of such Section 8 rental assistance, either alone or in
conjunction with a SPRAC in order to prevent displacement of income-
eligible elderly residents who reside in Section 202 Direct Loan
projects; and (4) oversight of the Section 202 Supportive Housing for
the Elderly and the Section 514 competitive grant programs administered
by the Office of Multifamily Housing Programs.
E. Program Demonstrations
Periodically, Congress will enact legislation that authorizes HUD
to conduct a multifamily housing program on a demonstration basis. The
purpose of a demonstration is essentially to test the viability of a
new program on a limited basis, for example, by geography, case volume,
or time. Functions related to demonstration programs include developing
program criteria, implementing the program, monitoring activities and
results, preparing any required reports to Congress, and closing out
the program.
F. Coinsurance
In 1990, HUD stopped accepting new applications for multifamily
housing coinsurance. However, HUD still carries out multifamily housing
coinsurance program functions related to the existing inventory, which
include any and all actions necessary to carry out the program
authorized under 12 U.S.C. 1715z-9. Functions also include authorizing
second mortgage documents in partial payment-of-claims cases, as well
as approving requests for the conversion of coinsurance to full
mortgage insurance.
G. Portfolio Reengineering
Although all cases under the Portfolio Reengineering Demonstration
Project (Demo) program have been closed, there are ongoing asset
management functions related to this portfolio of projects.
H. Limited Denials of Participation and Other Available Remedies
A participant, contractor, or affiliate, other than a mortgagee,
who fails to
[[Page 76096]]
comply with HUD program regulations, rules, and/or procedures can be
denied the right to participate in a HUD program or programs.
Procedures governing the nature and scope of proceedings for the
issuance of a limited denial of participation are set forth in 2 CFR
part 2424, subpart J. Only certain officials may issue such limited
denials of participation pursuant to the process in the regulations.
The issuance of a limited denial of participation does not preclude HUD
from initiating additional administrative action (see, e.g., 31 U.S.C.
3081 et seq.; 2 CFR part 180, 2 CFR 2424.10 et seq., 24 CFR part 25, 24
CFR part 30, 24 CFR part 200, subpart Y) or referring a matter to the
U.S. Department of Justice for civil or criminal enforcement.
Section III. Multifamily Housing Programs--Authority Redelegated
As provided in this Section III, the Assistant Secretary for
Housing--Federal Housing Commissioner, Chief of Staff for Housing,
General Deputy Assistant Secretary for Housing, and Associate General
Deputy Assistant Secretary for Housing retain and redelegate the power
and authority (1) to the Deputy Assistant Secretary for Multifamily
Housing Programs; (2) through the Deputy Assistant Secretary for
Multifamily Housing Programs to the Headquarters Multifamily Program
Office Directors listed below; and (3) through the Headquarters
Multifamily Program Office Directors to the Headquarters and field
Office officials listed below, the following power and authority, as
derived from Consolidated Delegation of Authority for the Office of
Housing--Federal Housing Administration (FHA).
A. Deputy Assistant Secretary for Multifamily Housing Programs
Authority is redelegated, on a nationwide basis, to take all
actions necessary to conduct all multifamily housing programs,
including, but not limited to, the exercise of the following functions:
(1) The general power to modify and sign any documents necessary to
perform enumerated functions and to waive any directive that is not
mandated by a statute or regulation;
(2) All production functions related to mortgage insurance, grants,
risk-sharing, or other multifamily programs;
(3) All recapitalization and asset management and portfolio
oversight functions related to mortgage insurance, loans, capital
advances, or grants, or other programs, including, but not limited to,
functions related to Section 8 contract administration and funding, and
the renewal of Section 8 contracts and other project-based assistance;
(4) All functions necessary to carry out a competitive grant
program;
(5) All functions necessary to carry out a program conducted on a
demonstration basis;
(6) All functions necessary to carry out the Rental Assistance
Demonstration, Mark-to-Market Program, Green Retrofit Program, and
Portfolio Reengineering Demonstration Program;
(7) All property disposition functions;
(8) All functions necessary to the conduct of the Multifamily
coinsurance program;
(9) All functions necessary to the conduct of Section 8 contract
administration oversight/funding;
(10) All functions necessary to carry out the Self-Help Housing
Property Disposition Program;
(11) Authority to issue limited denials of participation; and,
(12) All source selection official functions.
B. Associate Deputy Assistant Secretary for Multifamily Housing
Programs
All authority delegated to the Deputy Assistant Secretary for
Multifamily Housing Programs under this notice is redelegated to the
Associate Deputy Assistant Secretary for Multifamily Housing Programs
in the absence or unavailability of the Deputy Assistant Secretary.
Further, all authority delegated to the Deputy Assistant Secretary is
redelegated to the Associate Deputy Assistant Secretary in those
instances where managers and staff of the Office of Multifamily Housing
Programs are designated by the Deputy Assistant Secretary to report
through the Associate Deputy Assistant Secretary. The authority being
redelegated in this subsection is a broad and general authority to take
all actions and to perform all functions necessary to conduct all
multifamily housing programs on a nationwide basis, including, without
limitation, to facilitate Workload Sharing when field staff is required
to perform duties outside their geographic jurisdiction, and further,
including, without limitation, the authority to redelegate, or withdraw
from, any authority delegated under this notice.
C. Director and Deputy Director, Office of Multifamily Production
Authority is redelegated, on a nationwide basis, to take all
actions necessary to conduct all multifamily housing programs in
relation to the following functions:
(1) The general power to sign any documents necessary to perform
enumerated functions and to waive any directive that is not mandated by
a statute or regulation;
(2) All production functions related to mortgage insurance or risk-
sharing programs; and
(3) All functions necessary to carry out a program conducted on a
demonstration basis.
D. Director and Deputy Director, Office of Asset Management and
Portfolio Oversight
Authority is redelegated, on a nationwide basis, to take all
actions necessary to conduct all multifamily housing programs in
relation to the following functions:
(1) The general power to sign any documents necessary to perform
enumerated functions and to waive any directive that is not mandated by
a statute or regulation;
(2) All asset management and portfolio oversight functions related
to mortgage insurance, loans, capital advances, or grants or other
programs, including, but not limited to, functions related to Section 8
contract administration and funding, the renewal of Section 8 contracts
and other project-based assistance, the transfer of Section 8 budget
authority and/or use agreements from one site to another (e.g.,
pursuant to Section 8bb), and all matters related to Flexible Subsidy
Loans;
(3) All functions necessary to carry out competitive grant
programs;
(4) All functions necessary to carry out a program conducted on a
demonstration basis;
(5) All property disposition functions;
(6) All functions necessary to conduct the multifamily coinsurance
program; and
(7) Authority to issue limited denials of participation.
The Deputy Assistant Secretary for Multifamily Housing Programs,
through the Director of the Office of Asset Management and Portfolio
Oversight further redelegate to the Director of the Field Asset
Management and Program Administration Division all powers and
authorities to execute any documents necessary to perform enumerated
functions related to the modification or release (in part or in full)
of regulatory agreement(s) and use agreement(s) for multifamily housing
projects and programs.
[[Page 76097]]
E. All Regional Directors, Operations Officers, Production Division
Directors, Asset Management Division Directors, and Satellite Office
Asset Management Division Directors/Satellite Office Coordinators
The authority redelegated authorizes these officials to take all
actions necessary to the conduct of all multifamily housing programs,
not including the property disposition program, coinsurance program,
and M2M, Demo, and Green Retrofit programs. With respect to the M2M,
Demo, and Green Retrofit programs, the authority redelegated authorizes
these officials to take all actions with respect to an M2M, Demo, or
Green Retrofit Program use agreement, loan, or mortgage modification,
partial release of security or HUD consent required pursuant to an M2M,
Demo, or Green Retrofit transaction document provided that such
authority is delegated to such officials by administrative guidance
issued from time to time by the Deputy Assistant Secretary or which is
consistent with a memorandum issued by the Office of Recapitalization.
The authority is further limited in that it may be exercised only
within each official's authorized geographic jurisdiction. Accordingly,
the Regional Directors, Operations Officers, Production Division
Directors, Asset Management Division Directors, and Satellite Office
Asset Management Division Directors/Satellite Office Coordinators may
exercise the functions enumerated herein with the full geographic
jurisdiction of their respective Regional Center, which include all
Satellite Office areas under their respective jurisdictions. Designated
officials and their staffs are also authorized to engage in Workload
Sharing with other jurisdictions when their staffs are performing
production and/or asset management/portfolio oversight functions that
are otherwise consistent with limitations established in these
redelegations. The authority redelegated permits the exercise of the
following functions:
(1) Except as specifically stated otherwise in this notice or
administrative guidance, the general power to modify and sign any
documents necessary to perform functions enumerated herein and to waive
any directive that is not mandated by statute or regulation or reserved
to Headquarters;
(2) All production functions related to mortgage insurance, grants,
or other multifamily housing insurance programs, except as follows:
(a) Operations Officers cannot issue a conditional or firm
commitment or endorse FHA notes for insurance;
(b) Production Division Directors, Asset Management Division
Directors and Satellite Office Asset Management Division Directors/
Satellite Office Coordinators (each a ``Field Division Director'')
cannot issue a conditional or firm commitment for mortgage insurance
where the principal amount of the mortgage is in excess of $15 million.
The Regional Director can issue a firm commitment for mortgage
insurance without any limitation related to the principal amount of the
mortgage, but such loans may be subject to departmental controls or
other required approval(s) before either an application invitation
letter or a firm commitment can be issued, depending on program type,
project size, loan size, and real estate risk.
(3) The Regional Director may redelegate (and subsequently
withdraw), for good cause and with written justification, any authority
that may be delegated to a Field Division Director to any Branch Chief
within his or her geographic jurisdiction, except that the authority to
issue or reissue FHA firm mortgage insurance commitments is limited to
no greater than $5 million, and authority to sign firm commitment
amendments for commitments greater than $5 million is limited to
amendments that do not increase the mortgage amount. Redelegations
granted for a limited time period must state either (1) the specific
dates or (2) the length of time the redelegated authority will be in
effect. Redelegations granted on a case-by-case basis must identify the
project, activity, or undertaking involved;
(4) All asset management functions related to mortgage insurance,
loans, grants, or other programs, except as follows:
(a) Regional Directors, Operations Officers, Production Division
Directors, Asset Management Division Directors and Satellite Office
Asset Management Division Directors/Satellite Office Coordinators
cannot perform the following functions: (i) authorize the acceleration
of the principal debt of a mortgage; (ii) terminate a rent supplement
contract or rental assistance contract; (iii) declare a default under
an interest reduction payment contract; (iv) authorize a partial
payment of claim; (v) authorize a loan or mortgage modification, except
a loan or mortgage modification (1) under M2M, Demo, or with respect to
a GRP Loan, including a partial release of security under those
programs, which is consistent with a memorandum to be issued by the
Office of Recapitalization, or in a manner determined by administrative
guidance issued from time to time by the Deputy Assistant Secretary,
(2)to process an interest rate reduction in accordance with existing or
subsequent guidance, or (3) that the Deputy Assistant Secretary for
Multifamily Housing Programs may authorize from time to time through
the issuance of administrative guidance; (vi) authorize the override of
a mortgage lockout provision; or (vii) authorize a prepayment of a HUD-
insured or HUD-held mortgage, or voluntary termination of mortgage
insurance; except as provided in (v) above or unless specifically
authorized to do so by an express redelegation of authority from the
Assistant Secretary for Housing--Federal Housing Commissioner, the
Chief of Staff for Housing, General Deputy Assistant Secretary for
Housing, or Associate General Deputy Assistant Secretary for Housing
setting forth any affected programs and terms and conditions applicable
thereto.
(b) Operations Officers and Production Division Directors cannot
issue (i) a notice of violation under the terms of a regulatory
agreement; (ii) a notice of default under the terms of a Section 8
housing assistance payments contract; (iii) an approval of a partial
release of security; or (iv) an approval of a release from a residual
receipts account.
(5) All functions necessary to carry out competitive capital
advance programs;
(6) All functions necessary to carry out a program conducted on a
demonstration basis;
(7) Authority to issue limited denials of participation; and
(8) Regional Directors and Satellite Office Asset Management
Division Directors/Satellite Office Coordinators are authorized to
carry out all source selection official functions for field office-
based procurements, provided that the contract amount is less than $10
million.
F. Director of OAMPO Property Disposition Division Only
Authority is redelegated to the Director of Property Disposition
Division, on a nationwide basis, to take all actions and perform all
functions, including signing any documents in furtherance thereof and
issuing waivers of directives not mandated by statute or regulation,
necessary to conduct the multifamily and healthcare property
disposition program. For the healthcare property program, this
authority must be exercised in accordance with guidance established
between the Office
[[Page 76098]]
of Healthcare Programs and the Office of Multifamily Housing Programs.
Section IV. Office of Recapitalization--Authority Redelegated
A. The Assistant Secretary for Housing--Federal Housing
Commissioner, Chief of Staff for Housing, General Deputy Assistant
Secretary for Housing, and Associate General Deputy Assistant Secretary
for Housing redelegate to the Deputy Assistant Secretary for
Multifamily Housing Programs and the Director and Deputy Director of
the Office of Recapitalization the following authority:
(1) All authority necessary to carry out the provisions of the
Mark-to-Market Program under MAHRA, the Demo Program, the Green
Retrofit Program, and Post M2M activities, including shared authority
with OAMPO for the sale or disposition of M2M loans, Demo loans, and
GRP Loans, and for the full or partial release or amendment of use
restrictions associated with M2M, Demo and GRP Loans. The two offices
must work together to decide which office is responsible for a
particular function associated with such sales, dispositions, or use
agreement modifications. The foregoing authorities do not include the
authority to issue and/or waive regulations and to sue and be sued.
(2) All asset management functions associated with (i) Section 236
preservation transactions; (ii) the deferral and subordination of the
repayment of Operating Assistance Flexible Subsidy Loans and prepayment
of Section 236 mortgages (including FHA-insured, non-insured, and HUD-
held mortgages), and (iii) other HUD approvals related to Section 236
preservation transactions, including, but not limited to, the following
powers and authorities: To process and sign any documents necessary to
fulfill the functions associated with Section 236 preservation
transactions, including, but not limited to, the following:
Prepayments; Interest Reduction Payment (IRP) decouplings and re-
decouplings; excess income requirements; modifications to Emergency
Low-Income Housing Preservation Act (ELIHPA) and Low-Income Housing
Preservation and Resident Homeownership Act (LIHPRHA) use
agreements(s); Rent Supplement and Section 236 Rental Assistance
Payment contract extensions; unit conversion requests; allowance of
nonprofit sales proceeds and distributions; and other related approvals
or denials.
(3) To administer all aspects of the Rental Assistance
Demonstration (RAD), including, but not limited to, the review of
Financing Plans and Conversion Plans, issuance of and amendments to RAD
Conversion Commitments (RCCs) and conditional approval letters,
amendments to or reissuances of Commitments to enter into Housing
Assistance Payments Contracts (CHAPs), multi-phase awards or portfolio
awards, execution of RAD conversion transaction documents, and
implementation of closings and post-closing activities, with the
exception of releases of public housing related Declarations of Trust
or Declarations of Restrictive Covenants, which are retained by the
Assistant Secretary for Public and Indian Housing and as redelegated
under Public Housing delegations of authority, and with the exception
of waivers of public housing, Section 8 Project-Based Voucher and/or
Section 8 Project-Based Rental Assistance regulations, which are
retained by the Assistant Secretary for Housing and/or the Assistant
Secretary for Public and Indian Housing, as applicable.
To carry out all functions related to RAD use agreements and
contractual restrictions, including consents to liens, approval of
changes in ownership, amendment or release of use agreements or
contracts, and granting of other consent rights held by HUD. To the
extent that these RAD functions overlap authority delegated to OAMPO,
the two offices must work together to decide which office is
responsible for a particular function.
(4) To execute new project-based rental assistance (PBRA) HAP
contracts associated with RAD conversions, including for public housing
properties converting under RAD Component 1 and for Rent Supp/RAP, Mod
Rehab, Mod Rehab SRO and Section 202 Capital Advance developments with
Project Rental Assistance Contracts (202 PRACs), converting under
Component 2, and any forthcoming legacy programs for which Congress may
create a RAD conversion option. To the extent that these RAD functions
overlap authority delegated to OAMPO, the two offices must work
together to decide which office is responsible for a particular
function.
(5) To release documents related to Section 202 Capital Advance
developments with Project Rental Assistance Contracts (202 PRACs),
including capital advances and use agreements, to facilitate the
execution of new agreements and covenants required for 202 PRAC
conversions to RAD.
(6) To administer all aspects of the Senior Preservation Rental
Assistance Contract (SPRAC) program, including, but not limited to, the
review of submissions requesting SPRAC rental assistance, issuance of
conditional and final approval letters, execution of SPRAC transaction
documents, and implementation of closings and post-closing activities.
(7) To administer preservation activities with respect to Pre-1974
Section 202 Housing for the Elderly properties, including, but not
limited to, review of submissions related to prepayment of the Section
202 Direct Loan, coordination with the Office of Public and Indian
Housing regarding the issuance of Section 8 tenant protection vouchers
upon prepayment or maturity of the Section 202 Direct Loan and the
project-basing of such Section 8 rental assistance, execution of
transaction documents, and implementation of closing and post-closing
activities.
(8) All functions necessary to carry out competitive grant programs
pursuant to the Section 202 Capital Advance program and the Section 514
Tenant Organizing and Education program (including developing the
criteria for applications, rating and ranking applications, executing
grant agreements, and executing associated project rental assistance
contracts), except for the authority to issue a final NOFA or to make
grant awards. To the extent the implementation and oversight of the
Section 202 Supportive Housing for the Elderly and the Section 514
functions overlap authority delegated herein to the Office of Asset
Management and Portfolio Oversight, the two offices must work together
to decide which office is responsible for a particular function.
(9) All functions necessary to carry out a program conducted on a
demonstration basis.
B. The foregoing redelegations to the Director and Deputy Director
of the Office of Recapitalization include, without limitation, the
following authority:
(1) To modify and sign any documents necessary to perform
enumerated functions and to waive any directive that is not mandated by
a statute or regulation.
(2) To administer all provisions of MAHRA, including, but not
limited to, the following:
(a) To make eligibility determinations under sections 512 and 516
of MAHRA;
(b) To enter into, modify, and/or extend agreements with
participating administrative entities under section 513 of MAHRA;
(c) In connection with a restructuring transaction, to make rent
and/or mortgage restructuring determinations under sections 514, 515,
517, and 524 of MAHRA; and
[[Page 76099]]
(d) To terminate, modify, or affirm any decision on appeal under
MAHRA.
(3) In connection with a restructuring transaction, to modify the
principal balance, payments, interest rate, and amortization period and
other terms of existing FHA-insured and HUD-held mortgages, including
any HUD or Secretary-held subordinate debt encumbering or otherwise
related to a project; and to issue restructuring commitments and
closing documents relating to such debt.
(4) To issue HUD forms 92264 and 92264A upon approval of a
restructuring plan.
(5) In connection with a restructuring transaction, to approve
transfers of physical assets.
(6) In connection with a transaction, to approve environmental
assessment and compliance findings for related laws report, HUD form
4128 or through the HUD Environmental Review Online System (HEROS).
(7) To issue a commitment to insure and endorse for insurance a
mortgage note given to refinance a HUD-insured or HUD-held mortgage,
pursuant to sections 223(a)(7) or 223(f) of the National Housing Act
(12 U.S.C. 1715n), in accordance with protocol(s) established between
the Office of Recapitalization and the Office of Multifamily
Production.
(8) For qualified nonprofit entities acquiring projects that are
the subject of a restructuring transaction, to modify, assign, or
forgive debt created in the restructuring.
(9) To administer escrow accounts and modify the agreement
established under the restructuring transaction for the purpose of
addressing immediate and near-term rehabilitation needs of a project.
(10) To perform all functions of a source selection official in
relation to a procurement under the subject matter jurisdiction of the
Office of Recapitalization, subject to laws, regulations, and HUD
policies and procedures governing the procurement process.
(11) To administer grant programs, other than selecting a grantee.
(12) To extend the maturity date of and otherwise modify mortgage
restructuring notes, contingent repayment notes, Demo notes, and notes
evidencing GRP Loans, and approve, in connection with a project's sale
or mortgage refinancing, the assumption, modification, and/or
subordination of mortgage restructuring notes, contingent repayment
notes or Demo notes, previously created during a debt restructuring
transaction, and notes evidencing GRP Loans.
(13) To administer all Section 236 prepayments and all processing
pursuant to prepayments.
(14) To administer all Rental Assistance Demonstration transactions
processed by the Office of Multifamily Housing Programs.
(15) To designate an official to review any appeal, conduct the
conference, and issue the written decision in accordance with 24 CFR
401.651.
C. To the Affordable Housing Transaction Division Director and each
Affordable Housing Transaction Branch Chief, through the Deputy
Assistant Secretary for Multifamily Housing Programs and the Director
and Deputy Director of the Office of Recapitalization, the following
authority is delegated
(1) To modify and sign any documents necessary to perform
enumerated functions and to waive any directive issued by the Office of
Recapitalization that is not mandated by a statute or regulation.
(2) To administer the following provisions of MAHRA;
(a) To make eligibility determinations under sections 512 and 516
of MAHRA;
(b) In connection with a restructuring transaction, to make rent
and/or mortgage restructuring determinations under sections 514, 515,
517, and 524; and
(c) To reject or hear and decide any appeal made to the transaction
branch responsible for M2M under and in accordance with 24 CFR 401.645
or another permissible procedure.
(3) In connection with a restructuring transaction, to modify the
principal balance, payments, interest rate, and amortization period and
other terms of existing FHA-insured and HUD-held mortgages, including
any HUD or Secretary-held subordinate debt encumbering or otherwise
related to a project; and to issue restructuring commitments and
closing documents relating to such debt.
(4) To issue HUD forms 92264 and 92264A upon approval of a
restructuring plan.
(5) In connection with a restructuring transaction, to approve
transfers of physical assets.
(6) In connection with a transaction, to approve environmental
assessment and compliance findings for related laws report, HUD form
4128 or through the HUD Environmental Review Online System (HEROS).
(7) To issue a commitment to insure and endorse for insurance a
mortgage note given to refinance a HUD-insured or HUD-held mortgage,
pursuant to sections 223(a)(7) or 223(f) of the National Housing Act
(12 U.S.C. 1715n), in accordance with protocol(s) established between
the Office of Recapitalization and the Office of Multifamily
Production.
(8) To modify and sign any documents necessary to perform
enumerated functions related to the rehabilitation needs of a project
that was the subject of a restructuring transaction.
(9) To administer escrow accounts and modify the agreement
established under the restructuring transaction, for the purpose of
addressing immediate and near-term rehabilitation needs of a project.
D. Authority to Redelegate within the Office of Recapitalization.
The Director and Deputy Director of the Office of Recapitalization may
further redelegate, or withdraw from, any authority delegated to them
in this notice to any other Office of Recapitalization official.
Section V. Authority Excepted
The authority redelegated in this notice does not include the
authority to issue or to waive HUD regulations. The authority
redelegated in this notice does not include the authority to sue or be
sued.
Section VI. Further Redelegations
Except as otherwise specified in this notice, the Deputy Assistant
Secretary may redelegate, or withdraw from, any authority delegated to
the Deputy Assistant Secretary under this notice to any Multifamily
Housing Programs official. The Deputy Assistant Secretary for
Multifamily Housing Programs is authorized to redelegate authority to
Regional Directors outside their geographic jurisdiction, as necessary,
to facilitate Workload Sharing when field staff is required to perform
duties outside their geographic jurisdiction, but otherwise consistent
with the limitations established in this notice. The authority
specified in Section III. A, item (10) (the Self-Help Housing Property
Disposition Program) may not be further redelegated by the Deputy
Assistant Secretary for Multifamily Housing Programs to other
officials.
A Regional Director may redelegate to, or withdraw from any
official within his or her geographic jurisdiction and expanded
geographic jurisdiction as authorized by the Deputy Assistant Secretary
for Multifamily Housing Programs, any authority delegated to the
Regional Director under this notice except:
(a) A Regional Director has limited authority to redelegate the
authority to issue FHA conditional or firm mortgage insurance
commitments, as set forth in
[[Page 76100]]
Section III(D)(3) of these redelegations; and
(b) a Regional Director may not further redelegate the authority
which is delegated to Regional Directors, Asset Management Division
Directors, and Satellite Office Asset Management Division Directors/
Satellite Office Coordinators to issue: (i) A notice of violation under
the terms of a regulatory agreement; (ii) a notice of default under the
terms of a Section 8 housing assistance payments contract; (iii) an
approval of a partial release of security; or (iv) an approval of a
release from a residual receipts account.
Except as stated otherwise herein, the authority redelegated to
Operations Officers, Production Division Directors, Asset Management
Division Directors, and Satellite Office Asset Management Division
Directors/Satellite Office Coordinators may not be further redelegated
by those officials.
Section VII. Revocation of Delegations
All prior redelegations of authority to the Deputy Assistant
Secretary and other staff in the Office of Multifamily Housing Programs
are hereby superseded. The Assistant Secretary for Housing--Federal
Housing Commissioner, Chief of Staff for Housing, General Deputy
Assistant Secretary for Housing, and Associate General Deputy Assistant
Secretary for Housing may, at any time, revoke any of the authority
redelegated in this notice. Notice of any revocation will be published
in the Federal Register.
Section VIII. Ratification
All actions previously taken before publication of this notice by
the specified HUD officials consistent with the authorities described
herein are ratified.
Authority: Section 7(d), Department of Housing and Urban
Development Act (42 U.S.C. 3535(d)).
Dana T. Wade,
Assistant Secretary for Housing--Federal Housing Commissioner.
[FR Doc. 2020-26224 Filed 11-25-20; 8:45 am]
BILLING CODE 4210-67-P