[Federal Register Volume 87, Number 80 (Tuesday, April 26, 2022)]
[Notices]
[Pages 24574-24577]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-08846]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-7056-N-10]


60-Day Notice of Proposed Information Collection: Comprehensive 
Transactional Forms Supporting FHA's Section 242 Mortgage Insurance 
Program for Hospitals, OMB Control No.: 2502-0602

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 60 days of public comment.

DATES: Comments Due Date: June 27, 2022.

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: Colette Pollard, Reports Management 
Officer, QDAM, Department of Housing and Urban Development, 451 7th 
Street SW, Washington, DC 20410; email Colette Pollard at 
[email protected] or telephone 202-402-3400. 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.

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.
    OMB Expiration Date: November 30, 2022.
    Type of Request: Revision of a currently approved collection.
    Form Numbers: HUD-2510R, HUD-90032-OHF, HUD-90033-OHF, HUD-91070-
OHF, HUD-91071-OHF, HUD-91073-OHF, HUD-91725-OHF, HUD-91725-CERT-OHF, 
HUD-91725-INST-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.
    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, 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,

[[Page 24575]]

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 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 November 
12, 2019, with an expiration date of November 30, 2022.
    Three new forms are being added to this collection that are listed 
in the table above: HUD-90032-OHF (Lender Narrative--Interest Rate 
Reduction), HUD-90033-OHF (Lender's Certification in Support of Request 
for IRR), and HUD-2510R (Release of Regulatory Agreement). The HUD-
90033-OHF and HUD-90032-OHF are being added for occasional situations 
involving interest rate reductions of FHA-insured hospital loans. The 
forms allow the lender to summarize the rationale for the request and 
certify that programmatic requirements for interest rate reductions 
have been met. The documents are based on OHF draft guidance as well as 
similar forms used by the Section 232 program. The HUD-2510R has been 
added to facilitate the process regarding the release and discharge of 
the Regulatory Agreement.
    Two forms will be removed from the collection: HUD-91111-OHF 
(Survey Instructions and Borrower's Certification) and HUD-94128-OHF 
(Environmental Assessment and Compliance Findings for the Related 
Laws). The HUD-91111-OHF will be removed from the collection and the 
information from this form has been combined with HUD-91073-OHF 
(formally: HUD Survey Instructions and Surveyor's Report; and now 
renamed: HUD Survey Instructions, Surveyor's Report, and Borrower's 
Survey Certification). The HUD-94128-OHF will be removed from the 
collection because HUD's Environmental Review Online System (HEROS) is 
now used to prepare environmental reviews.
    The Public Burden Statement and the Warning have been revised on 
all forms.
    Three documents within the collection are being renewed with only 
changes to the revised Public Burden Statement and the Warning. The 
remaining thirty-seven of the forty forms within the collection are 
being renewed with changes. Revisions include edits that were made to 
clarify current policies and definitions, reflect updated general 
accepted accounting standards, or to address inconsistencies across 
documents.
    A summary of the specific changes (beyond the Public Burden 
Statement and the Warning) made to the revised documents is provided 
below.

Summary of Changes to Documents

     HUD-2510R Release of Regulatory Agreement. New document 
added to facilitate the process regarding the release and discharge of 
the Regulatory Agreement. This form will be used by the Office of 
Hospital Facilities, the Office of Residential Care Facilities, and 
Multifamily. The Number of Respondents will take the respondents from 
all three offices into consideration.
     HUD-90032-OHF Lender Narrative--Interest Rate Reduction. 
New document based on an existing Office of Residential Care Facilities 
application form to request an interest rate reduction, modified for 
Section 242-insured hospitals.
     HUD-90033-OHF Lender's Certification in Support of Request 
for IRR. New document based on an existing Office of Residential Care 
Facilities application form to request an interest rate reduction, 
modified for Section 242-insured hospitals.
     HUD-91070-OHF Consolidated Certifications Borrower. 
Changes were made to the parts of the certification as follows:
    [ssquf] Instructions. Added Feasibility Consultant as an option. 
Removed N/A from each line to improve readability.
    [ssquf] Part VII. Added a new section, similar to the Supplemental 
Underwriting section on existing Office of Residential Care Facility 
form. Specifically, added questions on delinquency of federal debt; 
legal action and judgements; bankruptcy question; liens (liens must be 
addressed prior to closing); investigations; and physician involvement.
    [ssquf] Part VII. Re-organized the list of entities. Added 
additional lines for ``Other'' categories. Made consistent with page 1-
2 of the form.
     HUD-91071-OHF Escrow Agreement for Off-site Facilities. 
Changes were made to the sections of the agreement as follows:
    [ssquf] Section D. Added new language to allow for extensions for 
up to 90 days which must be submitted in advance to HUD and the Lender 
with a detailed explanation for the extension. This was an issue during 
the pandemic because the document did not have any specific language to 
allow for extensions during a shutdown.
    [ssquf] Agreement #1 and #8. Capitalized Depository Institution and 
added that Depository Institution must be satisfactory to HUD as well 
as the Lender.
    [ssquf] Agreement #5 and #7. Lender was added as recipient of 
requested information. Added specific references to documents to be 
used for disbursements.
     HUD-91073-OHF HUD Survey Instructions, Surveyor's Report, 
and Borrower's Survey Certification. Combined HUD-91111-OHF and HUD-
91073-OHF into a new updated HUD-91073-OHF HUD Survey Instructions, 
Surveyor's Report and Borrower's Certification. Updating ALTA/NSPS 
Standards to latest version (2021) and revising additional 
requirements. Clarifying language for when the Borrower's certification 
can be used. Also updated Table A requirements.
     HUD-91725-OHF Opinion by Counsel to the Borrower. Changes 
were made throughout to add clarity.
     HUD-91725-INST-OHF Instructions to Opinion of Borrower's 
Counsel. Only the Warning has been revised.
     HUD-91725-CERT-OHF Exhibit A to Opinion of Borrower's 
Counsel Certification. Only the Warning has been revised.
     HUD-92013-OHF Application for Hospital Project Mortgage 
Insurance. Changed the document from a Word document to an Excel 
document. This allows the user to enter data, which is totaled where 
necessary. Added a Schedule so that 92013-line items may be broken out 
into components.
     HUD-92023-OHF Request for Final Endorsement of Credit 
Instrument. Changes were made to clarify minor inconsistencies within 
the document, and an update was added to reflect email submission 
rather than standard mail.
     HUD-92070-OHF Lease Addendum. Removed the Instruction 
language for brevity, which is consistent

[[Page 24576]]

with the existing Office of Residential Care Facilities form. 
Capitalized Tenant, Landlord, and Lender throughout the document for 
clarity. Added ``from an FHA Lender (Lender)'' to clearly define Lender 
in the transaction. Removed the language above the signatures 
indicating ``certifies under penalty of perjury'' because this language 
is not customary for a Lease Addendum, as there are no statements or 
representations provided.
     HUD-92080-OHF Change of Mortgage Record. Only the Public 
Burden Statement and the Warning have been revised.
     HUD-92117-OHF Borrower's Certification--Full or Partial 
Completion of Project. Added language to #5 to clarify that the 
requirement pertains to the advance.
     HUD-92205-OHF Borrower's Certificate of Known Costs 
(Section 242/223f, 242/223(a)(7)). Adjusted title of form to include 
``Insurance Upon Completion,'' to differentiate it from the insurance 
of advances form (HUD-92330-OHF). Clarified terminology in the 
Instructions on page 1 to include repairs and limited rehabilitation. 
Corresponding schedules for each item were added to the table for 
greater clarity. Additional clarification added, which makes explicit 
that deferred repairs and deferred limited rehabilitation amounts are 
to be escrowed. Updated Schedules to explicitly include additional fees 
and expenses.
     HUD-92223-OHF Surplus Cash Note. Changes were made 
throughout to add clarity. In Section 2, added clarity to the document 
by combining sections and eliminated reference ``Except as provided in 
Section 5 below,'' Section 5 was eliminated and added to Section 2. 
Added clarity to payments due under the Surplus Cash Note by adding 
``and per requirements under the Borrower's Regulatory Agreement and 
Commitment for Insurance (if applicable)'' (Section 4 eliminated as it 
is now contained in Section 2). Added ``No payments towards the Surplus 
Cash Note shall be made before final endorsement, unless HUD has 
approved,'' which incorporates Section 7 and provides for flexibility 
if approved by HUD. (Section 7 eliminated as it is now contained in 
Section 2).
     HUD-92266-OHF Application for Transfer of Physical Assets. 
Changes were made to clarify minor inconsistencies within the document 
and clarify directions as to what entities complete and submit the 
form.
     HUD-92322-OHF Intercreditor Agreement. Changes were made 
to the sections of the agreement as follows:
    [ssquf] Section 1.14 definition for ``Facility'' changed to 
reference 24 CFR 242.1.
    [ssquf] Section 1.15 includes ``Pledged Affiliates'' as defined in 
HUD's loan docs.
    [ssquf] Section 2.3(e) replaces ``operator or receiver'' with 
``entity'' as Operator is typically used in 232.
    [ssquf] Section 2.7(f)(iii) removed because this subsection 
references the Section 232 Operator Regulatory Agreement.
    [ssquf] Section 3.4(c) clarified what costs are due under current 
mortgage costs.
    [ssquf] Section 3.6(c) added language that ``notwithstanding any 
contrary provision contained in the AR Loan Documents, a default under 
the FHA Loan Documents shall not constitute a default under the AR Loan 
Documents if no other default occurred under the AR Loan Documents''.
    [ssquf] Section 4.1 changed ``donee'' to ``assignee''.
     HUD-92330A-OHF Contractor's Certificate of Actual Cost. 
Changes were made to the Trade Items, which were updated with latest 
Construction Specifications Institute (CSI) categories. Also, clarifies 
that an Attachment A shall be included when/if an Identity of Interest 
exists.
     HUD-92330-OHF Borrower's Certificate of Actual Cost. Added 
clarification/typographic changes to improve readability, as well as 
identify whether the HUD-92330A-OHF is accompanying the certification. 
Renumbered first 5 items in the table for standardization with other 
forms and processes.
     HUD-92403A-OHF Borrower's and Architect's Certificate of 
Payment. Only the Public Burden Statement and the Warning have been 
revised.
     HUD-92403-OHF Application for Insurance of Advance of 
Mortgage Proceeds. Updated Instructions to Borrower for electronic 
submission, to reference budget categories, and add clarity. Updated 
Instructions to Lender. Replaced the Table to include the Budget 
Category and references to HUD-92448-OHF, and updated drawings to 
documents. Updated Instructions to Lender for electronic submission, 
added Owner cash equity sentence, changed Mortgagor's to Borrower's, 
and changed escrow to equity. Removed references to an old Handbook 
4480.1.
     HUD-92415-OHF Request for Permission to Commence 
Construction Prior to Initial Endorsement for Mortgage Insurance. 
Updated wording in introduction to request and Term 1 for continuity. 
Changed wording in Term 2 to better reflect hospital program policies. 
Added Term 4 and revised Terms 5 and 7 for clarity, renumbered 
paragraphs as required. Revised paragraph 8 to match language in Terms 
9 and 10 for continuity. Revised Term 9 to add construction manager 
agreement as an option and revised language for clarification. Added 
Term 10 regarding permits to clarify this is a requirement. Revised 
Terms 13 and 14 for continuity and update paragraph references.
     HUD-92422-OHF Financial and Statistical Data for HUD 
Reporting. Changes were made throughout to add clarity.
     HUD-92434-OHF Lender's Certificate. Reorganized the 
introductory section to add clarity and improve readability.
     HUD-92441-OHF Building Loan Agreement. Section 4b--
clarified who at HUD should receive the information; changed the report 
deadline from 45 days after quarter end to 40 days to be consistent 
with similar report required under Regulatory Agreement.
     HUD-92442-OHF Construction Contract. Updated definitions 
paragraph to add clarity.
     HUD-92448-OHF Contractor's Requisition Project Mortgages. 
Changes were made throughout to add clarity.
     HUD-92452A-OHF Payment Bond. Updated to include 
Construction Managers and Project Description requirement.
     HUD-92452-OHF Performance Bond. Updated to include 
Construction Managers and Project Description requirement.
     HUD-92455-OHF Request for Endorsement of Credit Instrument 
& Certificate of Lender, Borrower, & General Contractor. Added Deferred 
Repairs and Deferred Limited Rehabilitation concepts to existing 
language, to differentiate Repairs (under 223(a)(7)) and Limited 
Rehabilitation (under 223(f)) that occur after initial/final 
endorsement (Deferred). Added paragraph (from Section 242 regulations) 
regarding required compliance of the Borrower to the Certificate of 
Borrower section.
     HUD-92456-OHF Escrow Agreement for Incomplete 
Construction. Updated references to related forms; added paragraphs for 
sources of escrow funds; and added language for use of remaining escrow 
funds.
     HUD-92464-OHF Request for Approval of Advance of Escrow 
Funds. Added document to be forwarded to HUD as well as the Lender. 
Changes for documents and supporting data to be submitted 
electronically to HUD--no longer in duplicates mailed to HUD. Clarified 
signatories for the Borrower for certain sections.

[[Page 24577]]

     HUD-92466-OHF Regulatory Agreement--Borrower. Changes were 
made to sections of the Regulatory Agreement as follows:
    [ssquf] Section 8(b)(ii)(1) and 8(b)(ii)(3) for Conditions to be 
Satisfied During and Following Construction. Expanded the report to 
include ``deferred work or limited rehabilitation'' for consistency 
with terminology in this section and clarify terms for Construction or 
repairs.
    [ssquf] Section 10(b) for Property and Operation; Encumbrances. 
Language changed to allow Borrowers to adjudicate liens, etc. in good 
faith with HUD's permission.
    [ssquf] Section 11(f) for Finances and Financial Records. Changed 
``reasonable time'' to ``10 business days'' to better define the 
timeline to submit the documents. Added ``shall be maintained in 
accordance with U.S. GAAP'' to differentiate from OHF reporting 
requirements as required in the OHF Handbook. Although it should be 
obvious, 24 CFR 5.801 for uniform reporting financial standards for HUD 
programs does not specifically include the 242/OHF Program. Section 
11(f) for Finances and Financial Records.
    [ssquf] Section 11(g) for Finances and Financial Records. Added 
language to allow HUD or its representatives to ask questions on the 
finances, operation and condition of the property.
    [ssquf] Section 13 for Mortgage Reserved Fund (MRF). Added 
clarifying language on type of account and beneficiary.
    [ssquf] Section 19(a)(i) for Additional Indebtedness and Leasing 
for Long Term Debt: Reordered some of the subsections and added some 
clarifying language as it relates to proposed debt.
    [ssquf] Section 19(d) for Additional Indebtedness--Reporting 
Requirements: Changed the reporting requirements to an annual report 
due within 40 days of the Borrower's fiscal year.
    [ssquf] Section 45 for Definitions. Clarified definitions.
     HUD-92476-OHF Escrow Agreement for Deferred Repairs. 
Renamed Document from ``Escrow Agreement for Deferred Work'' to 
``Escrow Agreement for Deferred Repairs'' to properly reflect the type 
of work involved. Similar changes were made throughout document. Added 
language in Section D to allow for extensions of up to 90 days if 
needed. Revised chart in Exhibit A to reflect a breakout of costs to be 
covered by the Escrow for Deferred Repairs.
     HUD-92476A-OHF Escrow Agreement for Deferred Limited 
Rehabilitation. Renamed Document from ``Escrow Agreement for Limited 
Rehabilitation'' to ``Escrow Agreement for Deferred Limited 
Rehabilitation'' to properly reflect the type of work involved. Similar 
changes were made throughout document. Added language in Section D to 
allow for extensions of up to 90 days if needed. Revised chart in 
Exhibit A to reflect a breakout of costs to be covered by the Escrow 
for Deferred Limited Rehabilitation.
     HUD-92476B-OHF Escrow Agreement for Proceeds from Partial 
Release of Collateral. Only the Public Burden Statement and the Warning 
have been revised.
     HUD-92479-OHF Off-Site Bond--Dual Obligee. Updated to 
include Construction Managers and Project Description requirement.
     HUD-92554-OHF Supplementary Conditions of the Contract for 
Construction. Article 1(B) Minimum Wages updated and clarified per 
program regulations.
     HUD-92576-OHF Certificate for Need for Health Facility and 
Assurance of Enforcement of State Standards. Renamed document. Removed 
unneeded requests for information.
     HUD-93305-OHF Agreement and Certification. Changed wording 
to reflect regulations for clarity.
     HUD-94000-OHF Security Instrument/Mortgage/Deed of Trust. 
Inserted ``Pledged Affiliates'' where Borrower appears. Updated 
definitions. Inserted clarifying language to ensure that all project 
funds are deposited into a DACA. Inserted language in Section 17(b) to 
allow subordinate liens to be repaid with prior Lender and HUD 
approval.
    HUD-94001-OHF Healthcare Facility Note. In Section 7(a), deleted 
the language ``or in the Borrower's Security Instrument or in the 
Borrower's Regulatory Agreement'' because personal liability is not a 
concept recognized in the Section 242 program, unlike Multifamily and 
Section 232.
    Respondents (i.e. affected public): Not-for-profit institutions; 
State, Local or Tribal Government.
    Estimated Number of Respondents: 718.
    Estimated Number of Responses: 1,302.
    Frequency of Response: 70.
    Average Hours per Response: 118.
    Total Estimated Burden: 73,187 hours.

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.

C. Authority

    Section 3507 of the Paperwork Reduction Act of 1995, 44 U.S.C. 
chapter 35.

Janet M. Golrick,
Acting Chief of Staff for Housing, Federal Housing Commissioner, HUD.
[FR Doc. 2022-08846 Filed 4-25-22; 8:45 am]
BILLING CODE 4210-67-P