Notice2023-15969
Notice of HUD-Held Multifamily and Healthcare Loan Sale (MHLS 2023-2)
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
July 28, 2023
Issuing agencies
Housing and Urban Development Department
Abstract
This notice announces HUD's intention to sell one unsubsidized multifamily and nine unsubsidized healthcare mortgage loans, without Federal Housing Administration (FHA) insurance, in a competitive, sealed bid sale on or about August 30, 2023 (MHLS 2023-2 or Loan Sale). This notice also describes generally the bidding process for the sale and certain persons who are ineligible to bid.
Full Text
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<title>Federal Register, Volume 88 Issue 144 (Friday, July 28, 2023)</title>
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[Federal Register Volume 88, Number 144 (Friday, July 28, 2023)]
[Notices]
[Pages 48905-48907]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-15969]
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-6357-N-02]
Notice of HUD-Held Multifamily and Healthcare Loan Sale (MHLS
2023-2)
AGENCY: Office of the Assistant Secretary for Housing--Federal Housing
Commissioner, U.S. Department of Housing and Urban Development (HUD).
ACTION: Notice of sale of one (1) multifamily and nine (9) healthcare
mortgage loans.
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SUMMARY: This notice announces HUD's intention to sell one unsubsidized
multifamily and nine unsubsidized healthcare mortgage loans, without
Federal Housing Administration (FHA) insurance, in a competitive,
sealed bid sale on or about August 30, 2023 (MHLS 2023-2 or Loan Sale).
This notice also describes generally the bidding process for the sale
and certain persons who are ineligible to bid.
DATES: A Bidder's Information Package (BIP) will be made available on
or about August 2, 2023. Bids for the loans must be submitted on the
bid date, which is currently scheduled for August 30, 2023, between
certain specified hours. HUD anticipates that an award or awards will
be made on or before September 6, 2023. Closing is expected to take
place on September 20, 2023.
ADDRESSES: To become a qualified bidder and receive the BIP,
prospective bidders must complete, execute, and submit a
Confidentiality Agreement and a Qualification Statement acceptable to
HUD. Both documents will be available on the Mission Capital Advisors
bidding system website: <a href="http://market.missioncap.com">market.missioncap.com</a>. This website contains
information and links for sale registration and electronically
completing and submitting the documents.
Questions about bidder qualification process may be sent to:
Transaction Specialist at 1-844-709-0763 or email
<a href="/cdn-cgi/l/email-protection#b6fee3f2e5d7dad3c5f6f0d7dad5d9d8f7c5c5d3c2e5d7dad3c598d5d9db"><span class="__cf_email__" data-cfemail="19514c5d4a78757c6a595f78757a7677586a6a7c6d4a78757c6a377a7674">[email protected]</span></a>.
FOR FURTHER INFORMATION CONTACT: John Lucey, Director, Asset Sales,
U.S. Department of Housing and Urban Development at
<a href="/cdn-cgi/l/email-protection#bdd7d2d5d393ca93d1c8ded8c4fdd5c8d993dad2cb"><span class="__cf_email__" data-cfemail="87ede8efe9a9f0a9ebf2e4e2fec7eff2e3a9e0e8f1">[email protected]</span></a> or telephone (202) 708-2625.
SUPPLEMENTARY INFORMATION: HUD announces its intention to sell, in MHLS
2023-2, ten (10) unsubsidized mortgage loans (Mortgage Loans),
consisting of nine (9) first lien healthcare notes secured by skilled
nursing and assisted living facilities located in various locations
within Alabama, Iowa, Maine, Nebraska, New Jersey, Ohio, and
Pennsylvania, and one (1) first lien multifamily note secured by a
multifamily property located in Kentucky. The Healthcare Mortgage Loans
are non-performing mortgage loans. The multifamily loan is a performing
mortgage loan. The listing of the Mortgage Loans is included in the
BIP. The Mortgage Loans will be sold without FHA insurance and with HUD
servicing released. HUD will offer qualified bidders an opportunity to
bid competitively on the Mortgage Loans.
The Mortgage Loans will be stratified for bidding purposes into
mortgage loan pools as appropriate. Each pool will contain Mortgage
Loans that generally have similar performance, property
[[Page 48906]]
type, geographic location, lien position and other characteristics.
Loans may be offered in pools of more than one loan and, or in single
loan pools. Qualified bidders may bid on one or more pools.
Bidder eligibility criteria is set forth in the Qualification
Statement. As detailed in the Qualification Statement, certain
entities/individuals may be precluded from bidding depending on their
prior involvement with the loan(s).
The Bidding Process
The BIP describes in detail the procedure for bidding in MHLS 2023-
2. The BIP also includes a standardized non-negotiable loan sale
agreement (Loan Sale Agreement).
As part of its bid, each bidder must submit a minimum deposit of
the greater of One Hundred Thousand Dollars ($100,000) or ten percent
(10%) of the aggregate bid prices for all of such bidder's bids. In the
event the bidder's aggregate bid is less than One Hundred Thousand
Dollars ($100,000), the minimum deposit shall be not less than fifty
percent (50%) of the bidder's aggregate bid. HUD will evaluate the bids
submitted and determine the successful bid(s) in its sole and absolute
discretion. If a bidder is successful, the bidder's deposit will be
non-refundable and will be applied toward the purchase price, with any
amount beyond the purchase price being returned to the bidder. Deposits
will be returned to unsuccessful bidders after notification to
successful bidders. Closings are expected to take place on September
20, 2023.
The Loan Sale Agreement, which is included in the BIP, contains
additional terms and details. To ensure a competitive auction, the
terms of the bidding process and the Loan Sale Agreement are not
subject to negotiation.
Due Diligence Review
The BIP describes the due diligence process for reviewing loan
files in MHLS 2023-2. Qualified bidders will be able to access loan
information remotely via a high-speed internet connection. Further
information on performing due diligence review of the Mortgage Loans is
provided in the BIP.
Mortgage Loan Sale Policy
HUD reserves the right to add Mortgage Loans to or delete Mortgage
Loans from MHLS 2023-2 at any time prior to the award date. HUD also
reserves the right to reject any and all bids, in whole or in part,
without prejudice to HUD's right to include the Mortgage Loans in a
later sale. The Mortgage Loans will not be withdrawn after the award
date except as is specifically provided for in the Loan Sale Agreement.
This is a sale of unsubsidized mortgage loans, pursuant to Section
204(a) of the Departments of Veterans Affairs and Housing and Urban
Development, and Independent Agencies Appropriations Act of 1997, (12
U.S.C. 1715z-11a(a)).
Mortgage Loan Sale Procedure
HUD selected a competitive auction as the method to sell the
Mortgage Loans. This method of sale optimizes HUD's return on the sale
of these Mortgage Loans, affords the greatest opportunity for all
qualified bidders to bid on the Mortgage Loans, and provides the most
efficient vehicle for HUD to dispose of the Mortgage Loans.
Bidder Eligibility
In order to bid in the sale, a prospective bidder must complete,
execute, and submit both a Confidentiality Agreement and a
Qualification Statement acceptable to HUD. The following individuals
and entities are among those INELIGIBLE to bid on the Mortgage Loans
being sold in MHLS 2023-2:
1. A mortgagor or healthcare operator, including its principals,
affiliates, family members, and assigns, with respect to one or more of
the Mortgage Loans being offered in the Loan Sale, or an Active
Shareholder (as such term is defined in the Qualification Statement);
2. With respect to any other HUD multifamily and/or healthcare
mortgage loan not offered in the Loan Sale, any mortgagor or healthcare
operator, including any Related Party (as such term is defined in the
Qualification Statement) of either, that has failed to file financial
statements or is otherwise in default under such mortgage loan or is in
violation or noncompliance of any regulatory or business agreements
with HUD and that fails to cure such default or violation by no later
than August 1, 2023;
3. Any individual or entity that is debarred, suspended, or
excluded from doing business with HUD pursuant to Title 2 of the Code
of Federal Regulations, Part 2424;
4. Any contractor, subcontractor and/or consultant or advisor
(including any agent, employee, partner, director, principal or
affiliate of any of the foregoing) who performed services for, or on
behalf of, HUD in connection with MHLS 2023-2;
5. Any employee of HUD, a member of such employee's family, or an
entity owned or controlled by any such employee or member of such an
employee's family;
6. Any individual or entity that uses the services, directly or
indirectly, of any person or entity ineligible under provisions (3)
through (5) above to assist in preparing its bid on any Mortgage Loan;
7. An FHA-approved mortgagee, including any principals, affiliates,
or assigns thereof, that has received FHA insurance benefits for one or
more of the Mortgage Loans being offered in the Loan Sale;
8. An FHA-approved mortgagee and/or loan servicer, including any
principals, affiliates, or assigns thereof, that originated one or more
of the Mortgage Loans being offered in the Loan Sale if the Mortgage
Loan defaulted within two years of origination and resulted in the
payment of an FHA insurance claim;
9. Any affiliate, principal or employee of any person or entity
that, within the two-year period prior to August 1, 2023, serviced any
Mortgage Loan or performed other services for or on behalf of HUD in
regard to any Mortgage Loan;
10. Any contractor or subcontractor working for or on behalf of HUD
that had access to information concerning any Mortgage Loan or provided
services to any person or entity which, within the two-year period
prior to August 1, 2023, had access to information with respect to any
Mortgage Loan; and/or
11. Any employee, officer, director or any other person that
provides or will provide services to the prospective bidder with
respect to the Mortgage Loans during any warranty period established
for the Loan Sale, that serviced the Mortgage Loans or performed other
services for or on behalf of HUD or within the two-year period prior to
August 1, 2023, provided services to any person or entity which
serviced, performed services or otherwise had access to information
with respect to any Mortgage Loan for or on behalf of HUD.
Other entities/individuals not described herein may also be
restricted from bidding on the Mortgage Loans, as fully detailed in the
Qualification Statement.
The Qualification Statement provides further details pertaining to
eligibility requirements. Prospective bidders should carefully review
the Qualification Statement to determine whether they are eligible to
submit bids on the Mortgage Loans in MHLS 2023-2.
[[Page 48907]]
Freedom of Information Act Requests
HUD reserves the right, in its sole and absolute discretion, to
disclose information regarding MHLS 2023-2, including, but not limited
to, the identity of any successful bidder and its bid price or bid
percentage for the Mortgage Loans, upon the closing of the sale of the
Mortgage Loans. Even if HUD elects not to publicly disclose any
information relating to MHLS 2023-2, HUD may be required to disclose
information relating to MHLS 2023-2 pursuant to the Freedom of
Information Act and all regulations promulgated thereunder.
Scope of Notice
This notice applies to MHLS 2023-2 and does not establish HUD's
policy for the sale of other mortgage loans.
Julia R. Gordon,
Assistant Secretary for Housing--Federal Housing Commissioner.
[FR Doc. 2023-15969 Filed 7-27-23; 8:45 am]
BILLING CODE 4210-67-P
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</html>Indexed from Federal Register on July 28, 2023.
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