[Federal Register Volume 61, Number 183 (Thursday, September 19, 1996)]
[Notices]
[Pages 49330-49331]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-23960]
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-4108-N-02]
Office of the Assistant Secretary for Community Planning and
Development; Notice of Submission of Proposed Information Collection to
OMB
AGENCY: Office of the Assistant Secretary for Community Planning and
Development, HUD.
ACTION: Notice of submission of proposed information collection to OMB.
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SUMMARY: The proposed information collection requirement described
below has been submitted to the Office of Management and Budget (OMB)
for emergency review and approval, as required by the Paperwork
Reduction Act. The Department is soliciting public comments on the
subject proposal.
DATES: The due date for comments is: September 26, 1996.
ADDRESSES: Interested persons are invited to submit comments regarding
this proposal. Comments must be received within seven (7) days from the
date of this notice. Comments should refer to the proposal by name and
should be sent to: Joseph F. Lackey, Jr., HUD Desk Officer, Office of
Management and Budget, New Executive Office Building, Washington, DC
20503.
FOR FURTHER INFORMATION CONTACT:
Kay F. Weaver, Reports Management Officer, Department of Housing and
Urban Development, 451 Seventh Street, SW, Washington, DC 20410,
telephone (202) 708-0050. Hearing- or speech-impaired individuals may
access this number via TTY by calling the Federal Information Relay
Service at 1-800-877-8399. (Other than the ``800'' number, these
telephone numbers are not toll-free.) Copies of available documents
submitted to OMB may be obtained from Ms. Weaver.
SUPPLEMENTARY INFORMATION: This notice informs the public that HUD has
submitted to OMB, for emergency processing, an information collection
package with respect to a final rule, entitled ``Loan Guarantee
Recovery Fund'', published on September 6, 1996 (61 FR 47404). HUD
seeks to implement this initiative on the final day of the rule
(October 7, 1996), unless prior to that date Congress authorizes an
earlier effective date for this rule.
The final rule implements section 4 of the ``Church Arson
Prevention Act of 1996'' (Pub. L. 104-155, approved July 3, 1996) (the
Act) by establishing a new 24 CFR part 573. Section 4 of the Act
authorizes the Secretary of HUD to guarantee loans made by financial
institutions to assist certain nonprofit organizations (organizations
described in section 501(c)(3) of the Internal Revenue Code of 1996)
that have had property damaged as a result of acts of arson or
terrorism. Part 573 describes the procedures, terms, and conditions by
which HUD will guarantee loans to assist eligible nonprofit
organizations. Under 24 CFR part 573, eligible borrowers may use
guaranteed loan funds for a wide range of activities, including: (1)
The acquisition of real or personal property; (2) the rehabilitation of
real property; (3) the construction, reconstruction, or replacement of
real property improvement; (4) site preparation; (5) architectural,
engineering, and security expenses; and (6) refinancing existing
indebtedness.
Certain provisions of 24 CFR part 573 establish information
collection requirements. Specifically, Sec. 573.6 sets forth the
information which a financial institution seeking a section 4
guaranteed loan must submit to HUD. Section 573.7 establishes the
information which must be contained in the loan guarantee agreement
between the financial institution and the Secretary. Section 573.8
lists the environmental review information which a borrower must
collect and provide to HUD. Further, Sec. 573.11 describes the
recordkeeping requirements which must be followed by a financial
institution receiving section 4 loan guarantee assistance.
HUD has submitted the proposal for the collection of information,
as described below, to OMB for review, as required by the Paperwork
Reduction Act (44 U.S.C. Chapter 35):
(1) Title of the information collection proposal: Final Rule--Loan
Guarantee Recovery Fund
(2) Summary of the collection of information:
A financial institution seeking a section 4 guaranteed loan must
submit to HUD the following documentation:
1. A statement that the institution is a financial institution as
defined at Sec. 573.2.
2. The borrower's original request for a loan from the financial
institution that includes:
(a) A statement that the Borrower is eligible as defined at
Sec. 573.2;
(b) A description of each eligible activity for which the loan is
requested:
(c) A certification by the borrower that the activities to be
assisted resulted from an act of arson or terrorism which is the
subject of the certification described in paragraph Sec. 573.6(b)(5);
(d) A narrative of the institution's underwriting standards used in
reviewing the loan request;
(e) A certification by a Certification Official (CO) that the
damage or destruction to be remedied by the use of the guaranteed loan
funds resulted from an act of arson or terrorism. The CO shall execute
an Official Incident Report or an equivalent report;
(f) Documentation for environmental threshold review; and
(g) Any previously issued environmental reviews prepared by local,
State, or other Federal agencies for the proposed property.
(3) Rights and responsibilities with respect to the guaranteed loan
shall be substantially described in an agreement
[[Page 49331]]
entered into between the financial institution, as the lender, and the
Secretary, as the guarantor, which agreement shall provide that:
(a) The lender has submitted or will submit a request for loan
guarantee assistance that is accompanied by the borrower's request for
a loan to carry out eligible activities described in Sec. 573.3;
(b) The lender will require the borrower to execute a promissory
note promising to repay the guaranteed loan in accordance with the
terms thereof;
(c) The lender will require the borrower to provide collateral
security, to an extend and in a form, acceptable to HUD;
(d) HUD in its discretion may decline any financial institution's
participation if underwriting criteria are insufficient to make the
guarantee an acceptable financial risk or the interest rates or fees
are unacceptable. HUD expects the interests rates being requested will
take into the account the value of the Federal guarantee;
(e) HUD reserves the right to limit loan guarantees to loans
financing the replacement of damaged properties with comparable new
properties;
(f) The lender will follow certain claim procedures to be specified
by HUD in connection with any defaults, including appropriate
notification of default as required by HUD;
(g) The lender will follow procedures for payment under the
guarantee whereby the lender will be paid (up to the amount of
guarantee) the amount owed to the lender less any amount recovered from
the underlying collateral security for the loan;
(h) The lender reserves the right to approve the general
contractor, the contract with the general contractor, bonding or a
letter of credit from the general contractor equal to at least 25
percent of the construction costs, and architectural insurance
coverage; and
(i) Other requirements, terms, and conditions required by HUD.
Records pertaining to the loans made by the financial institution
shall be held for the life of the loan. A lender with a section 4
guaranteed loan shall allow HUD, the Comptroller General of the United
States, and their authorized representatives access from time to time
to any documents, papers or files which are pertinent to the guaranteed
loan, and to inspect and make copies of such records which relate to
any section 4 loan. Any inspection will be made during the lender's
regular business hours or any other mutually convenient time.
(4) Description of the need for the information and its proposed
use:
To appropriately determine which financial institutions should be
provided with section 4 loan guarantee assistance, certain information
is required. Among other necessary criteria, HUD must determine
whether: (1) the lender is an eligible section 501(c)(3) nonprofit
organization; (2) the loan will assist in the rehabilitation of
property damaged or destroyed by acts of arson or terrorism; (3) the
activities which will be assisted by the loan are eligible activities
under Sec. 573.3; (4) the financial institution utilizes sufficient
underwriting standards; (5) the assisted activities will comply with
all applicable environmental laws and requirements.
(4) Description of the likely respondents, including the estimated
number of likely respondents, and proposed frequency of response to the
collection of information:
Participants will be financial institutions such as banks, trust
companies, savings and loan associations, credit unions, mortgage
companies, or other issuers regulated by the Federal Deposit Insurance
Corporation, the Office of Thrift Supervision, the Credit Union
Administration, or the U.S. Comptroller of the Currency.
The estimated number of respondents is 300. The proposed frequency
of the response to the collection of information is one-time. The
application for section 4 loan guarantee assistance need only be
submitted once per loan.
(5) Estimate of the total reporting and recordkeeping burden that
will result from the collection of information:
Reporting Burden:
Number of respondents: 300
(@ ____ hour per response):
Total Estimated Burden Hours: 12,240
Authority: Section 3507 of the Paperwork Reduction Act of 1995,
44 U.S.C. Chapter 35, as amended.
Dated: September 12, 1996.
David S. Cristy,
Director, IRM Policy and Management Division.
[FR Doc. 96-23960 Filed 9-18-96; 8:45 am]
BILLING CODE 4210-29-M