[Federal Register Volume 82, Number 82 (Monday, May 1, 2017)]
[Notices]
[Pages 20371-20372]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-08721]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No.: FR-6017-N-01]
Federal Housing Administration (FHA): Indefinite Deferral of
Implementation of the Small Building Risk Sharing Initiative
AGENCY: Office of the Assistant Secretary for Housing--Federal Housing
Commissioner, HUD.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: This notice advises the public that HUD is deferring
implementation of the Small Building Risk Sharing Program authorized by
Section 542(b) of the Housing and Community Development Act of 1992, to
facilitate the financing of small multifamily properties.
FOR FURTHER INFORMATION CONTACT: Donald Billingsley, Office of
Multifamily Housing Programs, Office of Production, Department of
Housing and Urban Development, 451 7th Street SW., Room 6148,
Washington, DC 20410; email address [email protected] and
telephone number (202) 402-7125 (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.
SUPPLEMENTARY INFORMATION: The ``Small Building Risk Sharing Initiative
Final Notice'' (Final Notice) was published on July 16, 2015 at 80 FR
42105, following an initial notice published for public comment on
November 4, 2013, at 78 FR 66043. The Final Notice announced
implementation of an Initiative under the Risk Sharing Program,
authorized by Section 542(b) of the Housing and Community Development
Act of 1992, to facilitate the financing of small multifamily
properties.
While applications were received pursuant to the Final Notice, HUD
never implemented the program. In addition, it is not clear whether the
program is still needed under current economic conditions. HUD
therefore indefinitely defers the applicability of the Final Notice
implementing the Small Buildings Risk Sharing Program (the
``Initiative'') under Section 542(b) of the
[[Page 20372]]
Housing and Community Development Act of 1992 and will not accept
additional applications at this time. HUD may in the future proceed
with the program or a revised program; however, HUD would, at a
minimum, have to determine the following before proceeding:
(a) If the Initiative is still needed to provide debt financing to
small, affordable properties, or whether the availability of long-term,
low-cost permanent financing to support small properties has increased
substantially since the Initiative was first proposed, specifically
through new and expanded federally backed financing programs offered
through Fannie Mae and Freddie Mac;
(b) The regulatory requirements and restrictions that would be
imposed on property owners/borrowers participating in the Initiative
regarding tenant rents and incomes, and whether these requirements
would impose unfair and inappropriate economic burden on small property
owners who provide affordable market rents but do not otherwise receive
a government funded housing subsidy;
(c) Whether existing Federal Housing Administration multifamily
lending programs, including the newly expanded Tax Credit Pilot Program
which supports new construction and substantial rehabilitation
projects, adequately serve the debt financing needs of small properties
that support affordable rental housing; and,
(d) If the provisions of the Initiative as published adequately
account for HUD's share of risk assumed for loans originated under the
Initiative, or need to be modified in a revised Initiative notice.
Dated: April 24, 2017.
Genger Charles,
General Deputy Assistant Secretary for Housing.
[FR Doc. 2017-08721 Filed 4-28-17; 8:45 am]
BILLING CODE 4210-67-P