30-Day Notice of Proposed Information Collection: Comprehensive Transactional Forms Supporting FHA's Section 242 Mortgage Insurance Program for Hospitals
| Published date | 20 August 2019 |
| Citation | 84 FR 43154 |
| Record Number | 2019-17914 |
| Section | Notices |
| Court | Housing And Urban Development Department |
Federal Register, Volume 84 Issue 161 (Tuesday, August 20, 2019)
[Federal Register Volume 84, Number 161 (Tuesday, August 20, 2019)]
[Notices]
[Pages 43154-43156]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-17914]
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-7011-N-37]
30-Day Notice of Proposed Information Collection: Comprehensive
Transactional Forms Supporting FHA's Section 242 Mortgage Insurance
Program for Hospitals
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 an additional 30 days of
public comment.
DATES: Comments Due Date: September 19, 2019.
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: Natalia Yee, Director, Single Family
Insurance Operations Division, Department of Housing and Urban
Development, Department of Housing and Urban Development, 451 7th
Street SW, Washington, DC 20410; email or telephone 202-402-3506. 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. The Federal Register notice that solicited public comments
on the information for a period of 60 days was published on May 24,
2019.
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.
Type of Request: Revision.
Form Number: HUD-91070-OHF, HUD-91071-OHF, HUD-91073-OHF, HUD-
91111-OHF, HUD- 91725-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, HUD-94128-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,
[[Page 43155]]
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, 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 be 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 August 19,
2016, with an expiration date of August 31, 2019. Where changes have
been made to existing OHF forms, the proposed versions are also
presented in both redline/strikeout and unmarked formats. New or
unchanged forms are presented in unmarked format. The revised hospital
documents can be viewed at: http://portal.hud.gov/hudportal/HUD?src=/federal_housing_administration/healthcare_facilities/section_242/additional_resources/242_docs_2019renewal.
Two new forms are being added to this collection: HUD-92266-OHF
(Application for Transfer of Physical Assets) and HUD-92476B-OHF
(Escrow Agreement for Proceeds from Partial Release of Collateral). The
HUD-92266-OHF form is based on an existing Office of Multifamily form,
modified for Section 242-insured hospitals. The application collects
the information required for OHF staff to review requests to transfer
insured physical assets to new purchasers that will continue to hold
the FHA-insured loan. The HUD-92476B-OHF is being added to provide an
escrow agreement template for infrequent instances when a borrower
sells and requests to release HUD-insured collateral. Both documents
are based on existing versions used by the Office of Housing in other
mortgage insurance programs but modified to appropriately reflect
Section 242 program needs.
HUD-9250-OHF (Funds Authorizations) will be removed from the
collection. The document was added to Collection 2502-0602 in a prior
submission and was based upon a similar form used for OHP's residential
care facility program. The form has proven to be unnecessary for the
Section 242 hospital program and will be removed.
Thirty-five of the forty documents within the collection are being
renewed with no operational content changes, except for updated burden
hour estimates and additional language added to the burden statements
to ensure that requirements under 5 CFR 1320.8(b)(3) are met.
Additional language (specifically, the phrase ``under penalty of
perjury'') was also added to clarify fraud warnings and certification
for forms with certifications. Revisions are proposed for the HUD-
92466-OHF (Regulatory Agreement), HUD-92422-OHF (Financial and
Statistical Data for HUD Reporting), and HUD-94000-OHF (Security
Instrument) to include edits that were made to clarify current policies
and definitions, reflect updated general accepted accounting standards,
or to address minor inconsistencies across documents. A summary of the
specific changes made to the revised documents is provided below.
Summary of Changes to Documents
HUD-92476B-OHF Escrow Agreement for Proceeds from Partial Release
of Collateral. New document used to establish an escrow agreement and
escrow account as part of the approval process for the partial release
of FHA-insured collateral. Document defines permitted uses of escrowed
proceeds, including usage for collateralized property improvements,
purchase of equipment, or principal payments of the FHA-insured
mortgage. Requires approval of all advances in writing by HUD and the
Lender.
HUD-92266-OHF Application for Transfer of Physical Assets. New
document based on an existing Office of Multifamily Housing application
form for Transfer of Physical Assets transactions, modified for Section
242-insured hospitals.
HUD-92422-OHF Financial and Statistical Data for HUD Reporting.
Definitions were updated to be consistent with account names, and a
definition for ``Allowances for Contractual Deductions and Bad Debt''
was added. ``Deferred Financing Costs'' was moved from the ``Limited
Use Assets'' to the ``Long Term Debt and Leases'' (previously ``Long
Term Debt and Capital Leases'') account. ``Right of Use Assets'' was
added to the ``Net PPE'' account. Some restricted and unrestricted net
asset accounts were combined and account names and definitions were
updated. A note was added to clarify that ``Bad Debt Expense'' can be
recorded as a separate line item, depending on the accounting reporting
standards being used.
HUD-94000-OHF Security Instrument/Mortgage/Deed of Trust. In
Section 1 (Definitions), the definition of Patient Accounts Receivables
was clarified in the definition of Accounts Receivables. The definition
of Personality and Mortgaged Property was revised to add the income or
sales distributed from a joint venture.
HUD-92466-OHF Hospital Regulatory Agreement--Borrower. Changes were
made to sections of the Regulatory Agreement as follows:
Section 1 and Section 49 (Definitions). Revised to include
definitions found in 24 CFR 242.1 and Handbook 4615.1 to provide
clarity. Definitions section from Appendix D was moved to Section 49.
Definition of Patient Accounts Receivables was added for Distribution
of Assets in Section 18 and Additional Indebtedness in Section 20.
Section 11--Property and Operations; Encumbrances. Added
new item (g) regarding Borrower notification to HUD.
Section 17--Transactions with Affiliates. Clarified
transactions with Affiliates regarding lower of fully allocated cost or
market value.
Section 18--Distribution of Assets. Changed Section
18(b)(v) to reflect financial requirements per 24 CFR 242.1 for the
Surplus Cash definition. Included definitions and ratios in Section 49.
[[Page 43156]]
Section 19--Board Review/Business Plan/Consultants'
Report. Added ``BOARD REVIEW'' to title for clarity. In Section
19(c)(iv), removed ``pro forma balance sheet'' as a deliverable and
clarified Business Plan deliverables to HUD for income statement and
cash flow analysis. Combined the roles of ``Review Consultant'' and
``Independent Consultant'' into one consultant to allow for more timely
review and cost savings for Borrower.
Section 20--Additional Indebtedness. Under Long Term Debt,
clarified when HUD consent is needed versus notification and timing;
added CEO to parties eligible to submit documentation for notification;
and added new section 20(a)(vi) to specify Borrower agreement to assets
becoming part of the Mortgaged Property at HUD's discretion upon
release of a lien. Under Unsecured Short-Term Debt, clarified when HUD
consent is needed versus notification and timing and added CEO to
parties eligible to submit documentation for notification. Added
Section 20(c) for Lines of Credit to apply to short-term and long-term
lines of credits secured by accounts receivable.
Section 21--Successor Clause. Removed Section 21(a).
Clarified successor clauses and definitions to emphasize HUD's option
for approval.
Section 29--Permits and Approvals. Added new Section 29(e)
regarding Borrower's responsibility to report accrediting organization
or entity findings to HUD upon occurrence, along with action plan
requirements.
Section 36--Actions Requiring Prior Written Approval of
HUD. Revised 36(g) to clarify when HUD approval is required for actions
impacting collateral under the FHA-insured mortgage. Added new item
36(q) for establishing, developing, or organizing a joint venture.
A. Responses to Public Comments Received
HUD received one comment regarding collection 2502-0602 during the
60-day comment period that closed on July 23, 2019. The comment
addressed an issue with the link to the posted documents online not
working correctly. HUD corrected the issue and responded to this
comment directly.
Respondents (i.e. affected public): 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 other agents
involved in hospital projects seeking FHA mortgage insurance.
Estimated Number of Respondents: 485.
Estimated Number of Responses: 1,069.
Frequency of Response: 2.2.
Average Hours per Response: 74.
Total Estimated Burdens: 79,426.
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.
Authority: Section 3507 of the Paperwork Reduction Act of 1995,
44 U.S.C. Chapter 35.
Dated: August 9, 2019.
Colette Pollard,
Department Reports Management Officer, Office of the Chief Information
Officer.
[FR Doc. 2019-17914 Filed 8-19-19; 8:45 am]
BILLING CODE 4210-67-P
