[Federal Register Volume 70, Number 79 (Tuesday, April 26, 2005)]
[Notices]
[Pages 21411-21430]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-8333]
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FEDERAL HOUSING FINANCE BOARD
[No. 2005-N-02]
Proposed Collection; Comment Request
AGENCY: Federal Housing Finance Board.
ACTION: Notice.
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SUMMARY: In accordance with the requirements of the Paperwork Reduction
Act of 1995, the Federal Housing Finance Board (Finance Board) is
seeking public comments concerning proposed changes to the information
collection entitled ``Affordable Housing Program (AHP),'' which has
been assigned control 3069-0006 by the Office of Management and Budget
(OMB). The Finance Board intends to submit the entire AHP information
collection, with the proposed changes described in this Notice, to OMB
for review and approval of a three-year extension of the control
number, which is due to expire on July 31, 2007.
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DATES: Interested persons may submit comments on or before June 27,
2005.
COMMENTS: Submit comments by any of the following methods:
E-mail: comments@fhfb.gov.
Fax: 202-408-2580.
Mail/Hand Delivery: Federal Housing Finance Board, 1777 F Street
NW., Washington, DC 20006, ATTENTION: Public Comments.
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 e-mail to the
Finance Board at comments@fhfb.gov to ensure timely receipt by the
agency.
Include the following information in the subject line of your
submission: Federal Housing Finance Board. Proposed Collection; Comment
Request: Affordable Housing Program (AHP). 2005-N-02.
We will post all public comments we receive on this notice without
change, including any personal information you provide, such as your
name and address, on the Finance Board website at http://www.fhfb.gov/pressroom/pressroom_regs.htm.
FOR FURTHER INFORMATION CONTACT: Charles E. McLean, Associate Director,
Community Investment and Affordable Housing Division, Office of
Supervision, mcleanc@fhfb.gov, 202-408-2537, or Deattra D. Perkins,
Community Development Specialist, Community Investment and Affordable
Housing Division, Office of Supervision, perkinsd@fhfb.gov, 202-408-
2527. You also can contact staff by facsimile at 202-408-2850 or
regular mail to the Federal Housing Finance Board, 1777 F Street NW.,
Washington, DC 20006.
SUPPLEMENTARY INFORMATION:
A. Background
Section 10(j) of the Federal Home Loan Bank Act (Bank Act) requires
the Finance Board to promulgate regulations under which each of the 12
Federal Home Loan Banks (Banks) must establish an Affordable Housing
Program (AHP) to make subsidized advances to members engaged in lending
for long term, low- and moderate-income, owner-occupied and affordable
rental housing at subsidized interest rates. See 12 U.S.C. 1430(j).
Section 10(j) also establishes the standards and requirements for
making subsidized AHP advances to Bank members. Part 951 of the Finance
Board regulations implements the statutory requirements and authorizes
the Banks to make AHP funding decisions. See 12 CFR part 951.
Under the AHP, each Bank contributes at least 10 percent of its
previous year's net earnings to subsidize the cost of affordable owner-
occupied and rental housing targeted to individuals and families with
incomes at or below 80 percent of the area median income. The Banks
make the majority of the AHP subsidy available through a competitive
program that requires members to submit applications on behalf of one
or more sponsors of eligible housing projects. In 2004, the competitive
program contributed $3.4 billion toward the construction of 31,000
housing units. Since its inception in 1990, the competitive program has
contributed $35 billion toward the construction of 380,000 housing
units.
The rest of the AHP subsidy is awarded through non-competitive
homeownership set-aside programs under which each Bank annually can set
aside an amount up to the greater of $3 million or 25 percent of its
AHP funds to assist low- and moderate-income households purchase homes.
A Bank also may contribute up to the greater of $1.5 million or 10
percent of its AHP funds each year to fund an additional set-aside
program to assist low- and moderate-income households that also are
first-time homebuyers. Members obtain AHP set-aside funds from their
Bank and give the funds as grants to eligible households. A household
can use a set-aside grant for down-payment or closing cost assistance
or counseling costs in connection with the purchase or rehabilitation
of owner-occupied units. Each Bank sets its own maximum grant amount,
which may not exceed $15,000 per household. In 2004, the Banks awarded
$39 million in grants to 8,121 households under set-aside programs,
making an average grant of $4,916. Since the inception of the set-aside
program in 1995, the Banks have awarded $213 million in grants to
47,813 households.
B. Need for and Use of the Information Collection
The Finance Board currently requires the Banks to collect 183 data
elements related to the AHP. The Banks use this data to determine
whether an AHP applicant satisfies the statutory and regulatory
requirements to receive subsidized advances or direct subsidies under
the AHP. The Finance Board uses the information to ensure that Bank
funding decisions, and the use of the funds awarded, are consistent
with statutory and regulatory requirements.
In February 2005, the Finance Board proposed moving many of its
data requirements, including the AHP data, into a Data Reporting Manual
(DRM) that will represent an investigatory order enforceable through
the Finance Board's statutory powers. 70 FR 9551 (Feb. 28, 2005). After
the DRM is approved in final form, the Finance Board expects that the
AHP information collection will move from part 951 to the DRM.
C. Proposed Changes to the Information Collection
In September 2004, Finance Board staff informally solicited input
from the 12 Banks on proposed changes to AHP Data reporting and has
taken their responses (nine from individual Banks and one from the
Banks' Chief Investment Officers on behalf of all Banks) into account
in the proposed changes it is seeking comment upon in this Notice.
The first proposed change would update the underlying AHP database
application, which currently collects data from the Banks using a web-
based system that is technologically obsolete. The new AHP database
application will capture uniform and accurate data that can be easily
queried and analyzed. Data submission from the Banks to the Finance
Board will be in formatted files that can be created by a Bank in the
manner it considers most efficient or convenient. In changing the
manner in which it collects data, the Finance Board does not intend to
require the Banks to modify or adopt new electronic information
management systems. Therefore, the proposed changes to the database
application should not result in significant electronic system upgrade
costs to the Banks.
The second proposed change would reduce the number of AHP data
elements, deleting 88 and adding 13, and change the reporting format
for some data elements. The Finance Board currently collects 183 AHP
data elements, most of which relate to competitive program projects.
The Finance Board proposes eliminating 88 competitive program data
elements, such as ongoing entry of project modification changes.
The Finance Board proposes adding 13 new data elements, including
geo-coded information in competitive and set-aside program applications
that is necessary to monitor the distribution of AHP awards and the
national impact of the program. Respondents can obtain geo-coded
information by entering the project/property address into the Federal
Financial Institutions Examination Council (FFIEC) geo-coding Web site
at http://www.ffiec.gov/geocode/default.htm or through use of specific
software.
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Other new elements include the amount of first and second mortgages
and interest rate(s) (stated as an annual percentage rate) for a set-
aside grant recipient's mortgage, and whether the mortgage is subject
to the Home Ownership and Equity Protection Act (HOEPA).\1\ The Finance
Board needs this information to ensure that AHP subsidies provided by a
Bank to a member are passed on to the ultimate borrower. See 12 U.S.C.
1430(j)(9)(E). The majority of Bank members already are required under
other statutes\2\ to collect the data the Finance Board proposes to add
to the AHP database. Therefore, the incremental additional burden
imposed to report the information to the Finance Board should be
minimal.
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\1\ See 15 U.S.C. 1639; 12 CFR 226.31, et seq. For information
about HOEPA go to: http://www.the.gov/bcp/conline/pubs/homes/32mortgs.htm.
\2\ For instance, many Bank members already are required to
collect geo-coding information and HOEPA status under the Home
Mortgage Disclosure Act (HMDA). See 12 U.S.C. 2801 et seq. For
information about HDMA reporting go to: http://www.ffiec.gov/hmda/about.htm. Members also are required to disclose the loan amount and
interest rate to borrowers under the Truth in Lending Act (TILA).
See 15 U.S.C. 1601 et seq. For information about TILA disclosure go
to: http://www.occ.treas.gov/handbook/til/
pdf#search=`Truth%20in%20Lending%20Act'.
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In order to reduce data entry time, the Finance Board is proposing
to change reporting for 19 data elements from a numeric format to a
categorical (yes/no) entry. The Finance Board also expects to reduce
the reporting frequency for project level data from up to eight times a
year to one annual report.
To facilitate public input on these proposed changes, Appendix A
lists the proposed AHP data elements and Appendix B is a side-by-side
chart listing the existing AHP data elements that will be retained or
eliminated in the proposed database.
D. Burden Estimate
In a Federal Register notice published in May 2004 (69 FR 24600
(May 4, 2004)), the Finance Board analyzed the cost and hour burden for
the seven facets of the AHP information collection--AHP applications,
AHP modification requests, AHP monitoring agreements, AHP recapture
agreements, homeownership assistance program applications,
verifications of statutory and regulatory compliance at the time of
subsidy disbursement, and Bank Advisory Council reports and
recommendations on AHP implementation plans. The total annual hour
burden for four of the seven facets will not be affected by the
proposed changes to the AHP database. These four facets are the same as
in the May 2004 Federal Register notice and are not repeated here. The
three facets that will be affected--AHP applications, AHP modification
requests, and homeownership assistance program applications--are
described in detail below.
The estimate for the total hour burden for applicant and member
respondents for all seven facets of the AHP information collection,
including the proposed changes, is 61,313 hours, a decrease of 1,725
hours.
1. AHP Applications
The Finance Board estimates that the proposed changes to the AHP
database would reduce the 25 hour processing time for each application
by 1 hour. The Finance Board estimates a total annual average of 2,050
applicants for AHP funding, with 1 response per applicant. The estimate
for the total annual hour burden for AHP applications is 49,200 hours
(2,050 applicants x 1 application x 24 hours).
2. AHP Modification Requests
The Finance Board estimates that the reduction in reporting
frequency that is part of the proposed changes to the AHP database
would reduce the 3-hour processing time for each modification request
by 30 minutes. The Finance Board estimates a total annual average of
150 requests, with 1 response per requestor. The estimate for the total
annual hour burden for AHP modification requests is 375 hours (150
requestors x 1 request x 2.5 hours).
3. Homeownership Assistance Program Applications
The Finance Board estimates that the proposed changes to the AHP
database would increase the 2-hour processing time for each application
by 10 minutes. The Finance Board estimates a total annual average of
2,400 homeownership assistance program applications, with 1 application
per respondent. The estimate for the total annual hour burden for
homeownership assistance program applications is 5,200 hours (2,400
respondents x 1 application x 130 minutes).
E. Comment Request
1. Proposed Changes to the AHP Database
The Finance Board requests comments on the utility and practicality
of the proposed data elements, including whether additional elements
should be included, deleted, or modified.
2. Paperwork Reduction Act Burden Estimate
The Finance Board requests written comments on the following: (1)
Whether the collection of information is necessary for the proper
performance of Finance Board functions, including whether the
information has practical utility; (2) the accuracy of the Finance
Board's estimates of the burdens of the collection of information; (3)
ways to enhance the quality, utility, and clarity of the information
collected; and (4) ways to minimize the burden of the collection of
information on respondents, including through the use of automated
collection techniques or other forms of information technology.
Dated: April 19, 2005.
By the Federal Housing Finance Board.
Mark J. Tenhundfeld,
General Counsel.
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[FR Doc. 05-8333 Filed 4-25-05; 8:45 am]
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