[Federal Register Volume 87, Number 235 (Thursday, December 8, 2022)]
[Notices]
[Pages 75251-75254]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-26707]


=======================================================================
-----------------------------------------------------------------------

FEDERAL HOUSING FINANCE AGENCY

[No. 2022-N-16]


Proposed Collection; Comment Request

AGENCY: Federal Housing Finance Agency.

ACTION: 30-Day notice of submission of information collection for 
approval from Office of Management and Budget.

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

SUMMARY: The Federal Housing Finance Agency (FHFA), as part of its 
continuing effort to reduce paperwork and respondent burden, invites 
public comments on an information collection titled the ``Affordable 
Housing Program,'' as required by the Paperwork Reduction Act of 1995 
(PRA). FHFA intends to submit to the Office of Management and Budget 
(OMB) the information collection (assigned control number 2590-0007 by 
OMB) for review and approval of a reinstatement of the control number, 
which has expired.

DATES: Interested persons may submit comments on or before January 9, 
2023.

ADDRESSES: Submit comments to the Office of Information and Regulatory 
Affairs of the Office of Management and Budget, Attention: Desk Officer 
for the Federal Housing Finance Agency, Washington, DC 20503, Fax: 
(202) 395-3047, Email: [email protected]. Please also submit 
comments to FHFA, identified by ``Proposed Collection; Comment Request: 
'Affordable Housing Program, (No. 2022-N-16)' '' by any of the 
following methods:
     Agency Website: www.fhfa.gov/open-for-comment-or-input.
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments. If you submit your 
comment to the Federal eRulemaking Portal, please also send it by email 
to FHFA at [email protected] to ensure timely receipt by FHFA. 
Include the following information in the subject line of your 
submission: Comments (No. 2022-N-16).
     Mail/Hand Delivery: Federal Housing Finance Agency, 400 
Seventh Street SW, Washington, DC 20219, ATTENTION: Proposed 
Collection; Comment Request: ``Affordable Housing Program, (No. 2022-N-
16)''. Please note that all mail sent to FHFA via the U.S. Postal 
Service is routed through a national irradiation facility, a process 
that may delay delivery by approximately two weeks. For any time-
sensitive correspondence, please plan accordingly.
    We will post all public comments we receive without change, 
including any personal information you provide, such as your name and 
address, email address, and telephone number, on the FHFA website at 
http://www.fhfa.gov.
    Copies of all comments received will be available for examination 
by the public through the electronic comment docket for this PRA Notice 
also located on the FHFA website.

FOR FURTHER INFORMATION CONTACT: Eric Howard, Principal Policy Analyst, 
[email protected], (202) 649-3009; or Tiffani Moore, Supervisory 
Policy Analyst, [email protected], (202) 649-3304; or Angela 
Supervielle, Counsel, [email protected], (202) 649-3973 
(these are not toll-free numbers); Federal Housing Finance Agency, 400 
Seventh Street SW, Washington, DC 20219. For TTY/TRS users with hearing 
and speech disabilities, dial 711 and ask to be connected to any of the 
contact numbers above.

SUPPLEMENTARY INFORMATION:

[[Page 75252]]

A. Background

1. Paperwork Reduction Act

    Under the PRA (44 U.S.C. 3501-3520), Federal agencies must obtain 
approval from OMB for each collection of information they conduct or 
sponsor. ``Collection of information'' is defined in 44 U.S.C. 3502(3) 
and 5 CFR 1320.3(c) to include agency requests or requirements that ten 
or more persons submit information to a third party. FHFA's collection 
of information set forth in this document is titled the ``Affordable 
Housing Program'' (assigned control number 2590-0007 by OMB). To comply 
with the PRA requirement, FHFA is publishing notice of a proposed 
three-year extension of this collection of information and 
reinstatement of the control number, which has expired.

2. Affordable Housing Program

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

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

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

    \3\ 12 CFR 1291.13(b).
---------------------------------------------------------------------------

    The AHP regulation requires each Bank to establish a General Fund, 
which is a competitive application program under which the Bank accepts 
applications for AHP subsidized advances or direct subsidies (grants) 
submitted by its members on behalf of non-member entities having a 
significant connection to the projects for which subsidy is being 
sought (project sponsors).\4\ The AHP regulation also authorizes each 
Bank, in its discretion, to establish, on a phased-in basis, up to 
three Targeted Funds, which are competitive application programs under 
which funds are targeted to address specific affordable housing needs 
within the Bank's district that are either unmet, have proven difficult 
to address through the Bank's General Fund, or align with the 
objectives identified in the Bank's strategic plan.\5\ Each Bank 
accepts applications for AHP subsidy under its competitive application 
program(s) during a specified number of funding periods each year, as 
determined by the Bank.\6\ A Bank must determine for each application 
it receives whether the proposed project meets applicable AHP 
regulatory eligibility requirements.\7\ The Bank must score each 
application according to AHP regulatory and Bank-specific scoring 
guidelines, and approve the highest scoring projects within that 
funding period for AHP subsidy.\8\
---------------------------------------------------------------------------

    \4\ 12 CFR 1291.21. Under the regulation, an AHP project sponsor 
may be an entity that either: (1) has an ownership interest in a 
rental project; (2) is integrally involved in an owner-occupied 
project, such as by exercising control over the planning, 
development, or management of the project, or by qualifying 
borrowers and providing or arranging financing for the owners of the 
units; (3) operates a loan pool; or (4) is a revolving loan fund. 12 
CFR 1291.1 (definition of ``sponsor'').
    \5\ 12 CFR 1291.20(b).
    \6\ 12 CFR 1291.22(a).
    \7\ 12 CFR 1291.22(b)(1).
    \8\ 12 CFR 1291.22(c).
---------------------------------------------------------------------------

    The regulation provides that, prior to each disbursement of AHP 
subsidy for a project approved under a Bank's competitive application 
program(s), the Bank must verify that the project continues to meet 
applicable AHP regulatory eligibility requirements, as well as all 
commitments made in the approved AHP application.\9\ As part of this 
process, Banks typically require that the member and project sponsor 
provide documentation demonstrating continuing compliance. In the event 
of project noncompliance, a project sponsor is required to make a 
reasonable effort to cure the noncompliance within a reasonable period 
of time.\10\
---------------------------------------------------------------------------

    \9\ 12 CFR 1291.30(c).
    \10\ 12 CFR 1291.60(b)(1).
---------------------------------------------------------------------------

    If the project sponsor cannot cure the noncompliance within a 
reasonable period of time, the regulation permits a Bank to approve a 
modification to the terms of an approved application that would change 
the score that the application received for the funding period in which 
it was originally scored and approved, had the changed facts been 
operative at that time. Before a Bank approves a modification: (i) the 
project, incorporating the changes, must continue to meet the 
regulatory eligibility requirements; (ii) the application, as 
reflective of the changes, must continue to score high enough to have 
been approved in the funding period in which it was originally scored 
and approved; and (iii) there must be good cause for the modification, 
and the analysis and justification for the modification must be 
documented by the Bank in writing.\11\
---------------------------------------------------------------------------

    \11\ 12 CFR 1291.29(a).
---------------------------------------------------------------------------

    The regulation requires generally that a Bank monitor owner-
occupied and rental projects receiving AHP subsidy under its 
competitive application program(s) prior to and after project 
completion. During the initial monitoring period, a Bank must determine 
whether the project is making satisfactory progress towards completion, 
in compliance with the commitments made in the approved application, 
Bank policies, and applicable AHP regulatory requirements. Following 
project completion, the Bank must determine whether satisfactory 
progress is being made towards occupancy of the project by eligible 
households.\12\ Within a reasonable period of time after project 
completion, the Bank must determine whether the project meets 
applicable AHP regulatory requirements and the commitments made in the 
approved application.\13\ During the long-term 15-year monitoring 
period for rental projects, subject to certain exceptions in the AHP 
regulation, the Bank must determine whether the household incomes and 
rents in the project comply with the income targeting and rent 
commitments made in the approved application.\14\ For both the initial 
and long-term monitoring, a Bank must review appropriate documentation 
maintained by the project sponsor.
---------------------------------------------------------------------------

    \12\ 12 CFR 1291.50(a)(1).
    \13\ 12 CFR 1291.50(a)(2).
    \14\ 12 CFR 1291.50(c)(1).
---------------------------------------------------------------------------

Homeownership Set-Aside Programs
    The AHP regulation also authorizes each Bank, in its discretion, to 
allocate up to the greater of $4.5 million or 35 percent of its annual 
required AHP contribution to establish homeownership set-aside programs 
for

[[Page 75253]]

the purpose of promoting homeownership for low- or moderate-income 
households.\15\ Under these homeownership set-aside programs, a Bank 
provides AHP direct subsidies to its members who, in turn, provide the 
subsidies as grants to eligible households for down payment, closing 
cost, counseling cost or rehabilitation assistance in connection with 
the household's purchase of a primary residence or rehabilitation of an 
owner-occupied residence.\16\ Prior to the Bank's disbursement of a 
direct subsidy under its homeownership set-aside program(s), the member 
must agree that the subsidy will be provided in compliance with all 
applicable AHP regulatory eligibility requirements.\17\
---------------------------------------------------------------------------

    \15\ 12 CFR 1291.12(b); 1291.40.
    \16\ 12 CFR 1291.42(d).
    \17\ 12 CFR 1291.15(a).
---------------------------------------------------------------------------

AHP Information Submitted by Banks to FHFA
    FHFA's Data Reporting Manual (DRM) requires each Bank to submit to 
FHFA aggregate AHP information.\18\ Specifically, the DRM requires each 
Bank to submit to FHFA project-level information regarding its 
competitive application program(s) and household-level information 
regarding its homeownership set-aside program(s) semi-annually. The 
information the Banks are required to submit to FHFA under the DRM is 
derived from the documentation submitted by Bank members and project 
sponsors that is described above.
---------------------------------------------------------------------------

    \18\ The AHP reporting requirements are located in chapter 5 of 
the DRM, which is available electronically on FHFA's public website 
at http://www.fhfa.gov/SupervisionRegulation/FederalHomeLoanBanks/Documents/FHFB-Resolutions/2006/2006-13-Attachment.pdf.
---------------------------------------------------------------------------

B. Need for and Use of the Information Collection

    The Banks use the AHP information collected from Bank members and 
project sponsors to determine whether: (1) projects for which Bank 
members and project sponsors are seeking subsidies under the Banks' 
competitive application programs satisfy the applicable statutory and 
regulatory requirements and score highly enough in comparison with 
other applications submitted during the same funding period to be 
approved for AHP subsidies; (2) projects approved under the Banks' 
competitive application programs continue to meet the applicable AHP 
regulatory requirements and comply with the commitments made in the 
approved applications each time AHP subsidy is disbursed by the Banks, 
through their members, to the project sponsors; (3) requests for 
modifications of projects approved under the Banks' competitive 
application programs meet the AHP regulatory requirements for approval; 
(4) during the initial monitoring period, projects approved under the 
Banks' competitive application programs are making satisfactory 
progress towards completion, are making satisfactory progress towards 
occupancy of the projects by eligible households after completion, and, 
within a reasonable period of time after completion, are in compliance 
with the commitments made in the approved applications, Bank policies, 
and applicable AHP regulatory requirements; (5) during the long-term 
15-year monitoring period, completed rental projects continue to comply 
with the household income targeting and rent commitments made in the 
approved applications; and (6) applications for direct subsidy under 
Banks' homeownership set-aside programs were approved, and the direct 
subsidies disbursed, in accordance with applicable AHP regulatory 
requirements.
    FHFA uses the information required to be submitted by the Banks 
under the DRM to verify that the Banks' funding decisions, and the uses 
of the funds awarded, were consistent with statutory and regulatory 
requirements.

C. Burden Estimate

    FHFA has analyzed each of the six facets of this information 
collection in order to estimate the hour burdens that the collection 
will impose upon Bank members and AHP project sponsors annually over 
the next three years. Based on that analysis, FHFA estimates that the 
total annual hour burden will be 92,599. The method FHFA used to 
determine the annual hour burden for each facet of the information 
collection is explained in detail below.

I. AHP Competitive Application Submissions

    FHFA estimates that Bank members, on behalf of project sponsors, 
will submit to the Banks an annual average of 1,250 applications for 
AHP subsidies under the Banks' competitive application programs, and 
that the average preparation time for each application will be 24 
hours. Therefore, the estimate for the total annual hour burden on 
members and project sponsors in connection with the preparation and 
submission of AHP competitive applications is 30,000 hours (1,250 
applications x 24 hours).

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

    FHFA estimates that Bank members, on behalf of project sponsors, 
will make an annual average of 345 submissions to the Banks documenting 
that projects approved under the Banks' competitive application 
programs continue to comply with applicable AHP regulatory eligibility 
requirements and all commitments made in the approved AHP applications 
at the time each AHP subsidy is disbursed to the project sponsors, and 
that the average preparation time for each submission will be 1 hour. 
Therefore, the estimate for the total annual hour burden on members and 
project sponsors in connection with the preparation and submission of 
these compliance submissions is 345 hours (345 submissions x 1 hour).

III. Modification Requests for Approved Competitive Application 
Projects

    FHFA estimates that Bank members, on behalf of project sponsors, 
will submit to the Banks an annual average of 318 requests for 
modifications to projects that have been approved under the Banks' 
competitive application programs, and that the average preparation time 
for each request will be 2.5 hours. Therefore, the estimate for the 
total annual hour burden on members and project sponsors in connection 
with the preparation and submission of these modification requests is 
795 hours (318 requests x 2.5 hours).

IV. Initial Monitoring Submissions for Approved Competitive Application 
Projects

    FHFA estimates that project sponsors will make an annual average of 
265 submissions of documentation to the Banks for purposes of the 
Banks' initial monitoring of in-progress and recently completed 
projects approved under their competitive application programs, and 
that the average preparation time for each submission will be 5 hours. 
Therefore, the estimate for the total annual hour burden on project 
sponsors in connection with the preparation and submission of 
documentation required for initial monitoring of competitive 
application projects is 1,325 hours (265 submissions x 5 hours).

V. Long-Term Monitoring Submissions for Completed Competitive 
Application Rental Projects

    FHFA estimates that project sponsors will make an annual average of 
3,178 submissions of documentation to the Banks for purposes of the 
Banks' long-term monitoring of completed rental

[[Page 75254]]

projects approved under their competitive application programs, and 
that the average preparation time for each submission will be 3 hours. 
Therefore, the estimate for the total annual hour burden on project 
sponsors in connection with the preparation and submission of 
documentation required for long-term monitoring of completed 
competitive application rental projects is 9,534 hours (3,178 
submissions x 3 hours).

VI. Homeownership Set-Aside Program Applications and Certifications

    FHFA estimates that Bank members will submit to the Banks an annual 
average of 10,120 applications and required certifications for AHP 
direct subsidies under the Banks' homeownership set-aside programs, and 
that the average preparation time for those submissions will be 5 
hours. Therefore, the estimate for the total annual hour burden on 
members in connection with the preparation and submission of 
homeownership set-aside program applications and certifications is 
50,600 hours (10,120 applications/certifications x 5 hours).

D. Public Comments Request

    In accordance with the requirements of 5 CFR 1320.8(d), FHFA 
published an initial notice and request for public comments regarding 
this information collection in the Federal Register on August 5, 
2022.\19\ The 60-day comment period closed on October 4, 2022. FHFA 
received no comments.
---------------------------------------------------------------------------

    \19\ See 87 FR 48023 (August 5, 2022).

Shawn Bucholtz,
Chief Data Officer, Federal Housing Finance Agency.
[FR Doc. 2022-26707 Filed 12-7-22; 8:45 am]
BILLING CODE 8070-01-P