Notice2022-26707
Proposed Collection; Comment Request
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
December 8, 2022
Issuing agencies
Federal Housing Finance Agency
Abstract
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.
Full Text
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<title>Federal Register, Volume 87 Issue 235 (Thursday, December 8, 2022)</title>
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[Federal Register Volume 87, Number 235 (Thursday, December 8, 2022)]
[Notices]
[Pages 75251-75254]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-26707]
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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.
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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: <a href="/cdn-cgi/l/email-protection#b9f6f0ebf8e6caccdbd4d0cacad0d6d7f9d6d4db97dcd6c997ded6cf"><span class="__cf_email__" data-cfemail="652a2c37243a161007080c16160c0a0b250a08074b000a154b020a13">[email protected]</span></a>. 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:
<bullet> Agency Website: <a href="http://www.fhfa.gov/open-for-comment-or-input">www.fhfa.gov/open-for-comment-or-input</a>.
<bullet> Federal eRulemaking Portal: <a href="http://www.regulations.gov">http://www.regulations.gov</a>.
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 <a href="/cdn-cgi/l/email-protection#45172022062a2828202b313605232d23246b222a33"><span class="__cf_email__" data-cfemail="7f2d1a183c1012121a110b0c3f1917191e51181009">[email protected]</span></a> to ensure timely receipt by FHFA.
Include the following information in the subject line of your
submission: Comments (No. 2022-N-16).
<bullet> 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
<a href="http://www.fhfa.gov">http://www.fhfa.gov</a>.
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,
<a href="/cdn-cgi/l/email-protection#b3f6c1dad09dfbdcc4d2c1d7f3d5dbd5d29dd4dcc5"><span class="__cf_email__" data-cfemail="6722150e04492f081006150327010f010649000811">[email protected]</span></a>, (202) 649-3009; or Tiffani Moore, Supervisory
Policy Analyst, <a href="/cdn-cgi/l/email-protection#65310c0303040b0c4b280a0a170025030d03044b020a13"><span class="__cf_email__" data-cfemail="ebbf828d8d8a8582c5a68484998eab8d838d8ac58c849d">[email protected]</span></a>, (202) 649-3304; or Angela
Supervielle, Counsel, <a href="/cdn-cgi/l/email-protection#f5b49b92909994dba680859087839c90999990b5939d9394db929a83"><span class="__cf_email__" data-cfemail="71301f16141d105f22040114030718141d1d1431171917105f161e07">[email protected]</span></a>, (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:
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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\
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\1\ See 12 U.S.C. 1430(j)(1) and (2).
\2\ See 12 U.S.C. 1430(j)(5)(C).
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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\
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\3\ 12 CFR 1291.13(b).
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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\
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\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).
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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\
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\9\ 12 CFR 1291.30(c).
\10\ 12 CFR 1291.60(b)(1).
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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\
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\11\ 12 CFR 1291.29(a).
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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.
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\12\ 12 CFR 1291.50(a)(1).
\13\ 12 CFR 1291.50(a)(2).
\14\ 12 CFR 1291.50(c)(1).
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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\
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\15\ 12 CFR 1291.12(b); 1291.40.
\16\ 12 CFR 1291.42(d).
\17\ 12 CFR 1291.15(a).
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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.
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\18\ The AHP reporting requirements are located in chapter 5 of
the DRM, which is available electronically on FHFA's public website
at <a href="http://www.fhfa.gov/SupervisionRegulation/FederalHomeLoanBanks/Documents/FHFB-Resolutions/2006/2006-13-Attachment.pdf">http://www.fhfa.gov/SupervisionRegulation/FederalHomeLoanBanks/Documents/FHFB-Resolutions/2006/2006-13-Attachment.pdf</a>.
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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
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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.
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\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
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