[Federal Register Volume 61, Number 87 (Friday, May 3, 1996)]
[Notices]
[Pages 19945-19946]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-11004]
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DEPARTMENT OF HOUSNG AND URBAN DEVELOPMENT
[Docket No. FR-3917-N-71]
Office of the Assistant Secretary for Housing; Notice of Proposed
Information Collection for Public Comment
AGENCY: Office of the Assistant Secretary for Housing, HUD.
ACTION: Notice.
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SUMMARY: The proposed information collection requirement described
below will be submitted to the Office of Management and Budget (OMB)
for review, as required by the Paperwork Reduction Act. The Department
is soliciting public comments on the subject proposal.
DATES: Comments due: July 2, 1996.
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: Oliver Walker, Housing,
Department of Housing & Urban Development, 451--7th Street SW., Room
9116, Washington, DC 20410.
FOR FURTHER INFORMATION CONTACT: Scott Werdal, Telephone number (202)
708-0614, extension 2562 (this is not a toll-free number).
SUPPLEMENTARY INFORMATION: The Department will submit the proposed
information collection to OMB for review, as required by the Paperwork
Reduction Act of 1995 (44 U.S.C. Chapter 35, as amended).
The Notice is soliciting comments from members of the public and
affected agencies concerning the proposed collection of information to:
(1) Evaluate 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)
Evaluate the accuracy of the agency's estimate of the burden of the
proposed collection of information; (3) Enhance the quality, utility,
and clarity of the information to be collected; and (4) 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
[[Page 19946]]
technology, e.g., permitting electronic submission of responses.
This Notice also lists the following information:
Title of Proposal: Owner Certification on Low-Income Housing Tax
Credits.
OMB Control Number: 2502-0377.
Agency form numbers: HUD-2880.
Description of the need for the information and proposed use: Since
the 1986 Tax Reform Act, Low Income Housing Tax Credits (LIHTCs) have
provided a significant amount of equity financing supporting the
development of affordable housing units. Since the implementation of
the 1989 HUD Reform Act, sponsors of HUD Multifamily projects seeking
new subsidies from HUD have been required to make a specific
certification with respect to LIHTCs.
Since 1992 HUD has, through Form HUD-2880, ``Applicant/Recipient
Disclosure/Update Report'' required that those persons or entities
which receive, or are applying to receive, HUD and other government
assistance, certify their intentions regarding the nature and extent of
the total assistance which will be required or obtained, including
LIHTCs.
The basic concept of ``subsidy layering'' is that total project
Sources of financing may not exceed total project uses, and to the
extent that they do, must be reduced so as to prevent excess subsidy
layering. Therefore, and as a logical first step, project sponsors
using LIHTCs and any other form of HUD assistance must identify all
anticipated project uses when completing Form HUD-2880. HUD recognizes
that this estimation is not particularly easy to make at a multi-
million dollar, Multifamily project's formative stages. Nevertheless,
pursuant to HUD Reform Act requirements, certain project uses relating
to the Builder, Developer and Syndicator fees are limited in accordance
with HUD Housing's Subsidy Layering Guidelines and implementing Notices
and instructions, and every effort must be made to segregate out-of-
pocket project costs which might otherwise be lumped into developer's
fees.
Sponsors of LIHTC projects, in particular, must be careful to
recognize that all costs associated with the project be properly
estimated and characterized. For example, incentives earned through
successful performance of what are essentially property management
duties should not be lumped into the Sources and Uses Statement which
the Form HUD-2880 certification requires as generic ``Developer's
Fees''. Such speculative future Uses of presently sought-after LIHTC
equity financing, and ultimately syndication installment proceeds,
should be identified as ``property management fees'' or ``General
Partner Reserve incentives''.
HUD has learned that the LIHTC certification and disclosure
requirements need not be an impediment to successful development of
LIHTC projects using FHA financing; nor do the subsidy layering
guidelines relating to Builders and Developers fees mean that subsidy
reductions will necessarily be imposed. Subsidy gathering problems are
far more common to Developers of LIHTC and other Affordable Multifamily
projects than subsidy layering problems. Only through informed,
thorough preparation of Form HUD-2880 can it be determined whether a
layering problem exists.
Members of affected public: Multifamily Project Sponsors; an
estimation of the total numbers of hours needed to prepare the
information collection is 1250, the number of respondents, 500,
frequency of response, once, and hours of response, 2.5.
Status of the proposed information collection: Extension with
change.
Authority: Section 3506 of the Paperwork Reduction Act of 1995,
44 U.S.C. Chapter 35, as amended.
Dated: April 26, 1996.
Nicolas P. Retsinas,
Assistant Secretary for Housing--Federal Housing Commissioner.
[FR Doc. 96-11004 Filed 5-2-96; 8:45 am]
BILLING CODE 4210-27-M
