Federal Register / Vol. 83, No. 247 / Thursday, December 27, 2018 / Notices 66729 

1The previous title was ‘‘Public Housing Annual 

Contribution Contract and Inventory Removal 

Application’’. 

metropolitan areas that are not covered 

by a CPI city-survey). 

AAFs use the same OMB metropolitan 

area definitions, as revised by HUD, that 

are used for the FY 2019 FMRs. 

Area Definitions 

To make certain that they are using 

the correct AAFs, users should refer to 

the Area Definitions Table section at 

http://www.huduser.gov/portal/ 

datasets/aaf.html. The Area Definitions 

Table lists CPI areas in alphabetical 

order by state, and the associated 

Census region is shown next to each 

state name. Areas whose AAFs are 

determined by local CPI surveys are 

listed first. All metropolitan areas with 

local CPI surveys have separate AAF 

schedules and are shown with their 

corresponding county definitions or as 

metropolitan counties. In the six New 

England states, the listings are for 

counties or parts of counties as defined 

by towns or cities. The remaining 

counties use the CPI for the Census 

Region and are not separately listed in 

the Area Definitions Table at http://

www.huduser.gov/portal/datasets/ 

aaf.html. 

Puerto Rico uses its own AAFs 

calculated from the Puerto Rico CPI as 

adjusted by the PRCS, the Virgin Islands 

uses the South Region AAFs and the 

Pacific Islands uses the West Region 

AAFs. All areas in Hawaii use the AAFs 

listed next to ‘‘Hawaii’’ in the Tables 

which are based on the CPI survey for 

the Honolulu metropolitan area. 

Dated: December 20, 2018. 

Todd M. Richardson, 

General Deputy Assistant Secretary for Office 

of Policy Development and Research. 

[FR Doc. 2018–28097 Filed 12–26–18; 8:45 am] 

BILLING CODE 4210–67–P 

DEPARTMENT OF HOUSING AND 

URBAN DEVELOPMENT 

[Docket No. FR–7006–N–15] 

60-Day Notice of Proposed Information 

Collection: Comment Request: Agency 

Information Collection Activities: 

Public Housing Annual Contributions 

Contract for Capital and Operating 

Grant Funds 

AGENCY: Office of the Assistant 

Secretary for Public and Indian 

Housing, HUD. 

ACTION: Notice. 

SUMMARY: HUD is seeking approval from 

the Office of Management and Budget 

(OMB) for the information and 

collection described below. The public 

housing program provides Operating 

Funds and Capital Funds to low rent 

projects owned and operated by public 

housing agencies (PHAs), subject to the 

terms and conditions contained in the 

Annual Contributions Contract (ACC) 

grant agreement. These program 

requirements govern how projects are 

funded and operated by PHAs. HUD has 

made changes and updates to its grant 

agreement, the Annual Contributions 

Contract (ACC) (the ‘‘New ACC’’), based 

on current applicable statutes and 

regulations. This notice is to provide 

PHAs with notice of the changes and the 

opportunity to comment on such 

changes. 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 60 days of public 

comment. 

DATES: Comments Due Date: February 

25, 2019. 

ADDRESSES: Interested persons are 

invited to submit comments regarding 

this proposal. All comments must refer 

to the proposal by name and OMB 

Control Number. There are two methods 

for submitting public comments. 

1. Submission of Comments by Mail. 

Comments may be submitted by mail to 

the Regulations Division, Office of 

General Counsel, Department of 

Housing and Urban Development, 451 

7th Street SW, Room 10276, 

Washington, DC 20410–0500. 

2. Electronic Submission of 

Comments. Interested persons may also 

submit comments electronically through 

the Federal eRulemaking Portal at 

www.regulations.gov. HUD strongly 

encourages commenters to submit 

comments electronically. Electronic 

submission of comments allows the 

commenter maximum time to prepare 

and submit a comment, ensures timely 

receipt by HUD, and enables HUD to 

make them immediately available to the 

public. Comments submitted 

electronically through the 

www.regulations.gov website can be 

viewed by other commenters and 

interested members of the public. 

Commenters should follow the 

instructions provided on that site to 

submit comments electronically. 

Note: To receive consideration as public 

comments, comments must be submitted 

through one of the methods specified above. 

Again, all submissions must refer to the 

docket number and title of the notice. 

No Facsimiled Comments. Facsimiled 

(faxed) comments are not acceptable. 

Public Inspection of Public 

Comments. Copies of all comments 

submitted are available for inspection 

and downloading at 

www.regulations.gov. In addition, all 

properly submitted comments and 

communications submitted to HUD will 

be available for public inspection and 

copying between 8 a.m. and 5 p.m., 

weekdays, at the above address. Due to 

security measures at the HUD 

Headquarters building, an advance 

appointment to review the public 

comments must be scheduled by calling 

the Regulations Division at 202–708– 

3055 (this is not a toll-free number). 

Individuals with speech or hearing 

impairments may access this number 

via TTY by calling the Federal Relay 

Service at 800–877–8339 (this is a tollfree number). 

FOR FURTHER INFORMATION CONTACT: 

Arlette Mussington, Office of Policy, 

Programs and Legislative Initiatives, 

PIH, Department of Housing and Urban 

Development, 451 7th Street SW, Room 

3178, Washington, DC 20410; telephone 

202–402–4109, (this is not a toll-free 

number). Persons with hearing or 

speech impairments may access this 

number via TTY by calling the Federal 

Information Relay Service at (800) 877– 

8339. Copies of available documents 

submitted to OMB may be obtained 

from Ms. Mussington. 

SUPPLEMENTARY INFORMATION: This 

notice informs the public that the 

Department is re-submitting the 

proposed information collection to OMB 

for review, under the Paperwork 

Reduction Act of 1995 (44 U.S.C. 

Chapter 35, as amended). HUD is 

seeking approval from OMB for the 

information collection described in 

Section A. 

A. Overview of Information Collection 

Title of Information Collection: Public 

Housing Annual Contributions Contract 

for Capital and Operating Grant Funds.1

OMB Approval Number: 2577–0075. 

Type of Request: Revision of a 

currently approved collection. 

Form Number: HUD–52840A; HUD– 

53012A; HUD–53012 B. 

Description of the need for the 

information and proposed use: The ACC 

establishes the basic terms and 

conditions for the PHA’s public housing 

programs and requires the PHA to 

manage and operate its public housing 

properties in accordance with the 

United States Housing Act of 1937 (42 

U.S.C. 1437 et seq.) (1937 Act) and all 

applicable HUD requirements. The ACC 

governs the award and use of two 

distinct public housing grant funds. The 

Capital Fund Program (CFP) provides 

financial assistance in the form of grants 


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66730 Federal Register / Vol. 83, No. 247 / Thursday, December 27, 2018 / Notices 

to PHAs to carry out eligible capital and 

management activities authorized by 

Section 9(d)(1) of the 1937 Act. The 

Operating Fund Program provides 

financial assistance in the form of grants 

to PHAs for the operation and 

maintenance of public housing 

authorized by Section 9(e)(1) of the 1937 

Act. Section 6 of the 1937 Act, 24 CFR 

5.403, 24 CFR 905.100 (Capital Fund), 

and 24 CFR 990.115 (Operating Fund) 

authorizes the Secretary of HUD to make 

annual contributions for federal 

financial assistance in the form of grants 

to PHAs to achieve and maintain the 

low income character of public housing 

projects. The Secretary is required to 

embody the provisions for such annual 

grant contributions in a grant agreement 

(i.e., the ACC). Additional applicable 

regulations include: 24 CFR part 907 for 

Substantial Default by a PHA; 2 CFR 

part 200 for Uniform Administrative 

Requirements, Cost Principles and 

Audit Requirements for Federal Awards, 

and 24 CFR part 5 for General HUD 

Program Requirements. 

The amendment of this notice of 

proposed information collection 

provides PHAs with sufficient notice of 

the changes to the New ACC, which was 

revised in order to align the agreement 

with existing statutes and regulations. It 

combines Part A and B of the 1995 ACC 

and the Mixed Finance Amendment to 

the 1995 ACC to streamline the grant 

agreement. The New ACC also removes 

Section 10, Operating Budget and 

Section 11, Pooling of Funds formerly in 

the 1995 version of ACC, because these 

provisions are no longer included in 24 

CFR part 990 and thus no longer apply. 

Section 22, Performance of Conditions 

Precedent to the Validity, which 

discussed implementation of the 1995 

version of the ACC, is also deleted. 

Additionally, the New ACC includes 

additional definitions that were not in 

the 1995 ACC but are already in existing 

regulations required by the 1937 Act 

and makes changes to definitions of 

‘‘Operating Costs’’ and ‘‘Operating 

Receipts’’ to be consistent with 24 CFR 

part 905 subpart F, 24 CFR 990.110 and 

990.115, 2 CFR 200.80 and 2 CFR 

200.307. Finally, the New ACC 

incorporates a definition for ‘‘Annual 

Contributions Contract’’ consistent with 

the terms and conditions under which 

the public housing grant program has 

been administered by HUD, and 

consistent with existing regulations at 2 

CFR 200.51, 24 CFR 905.100(b), and 

905.300(b), 905.306, 905.322, which 

refer to the programs as grants. This 

definition applies to both the Capital 

Fund and Operating Fund. 

Respondents: Public housing 

agencies. 

ACC provision Total 

responses Total hours Cost per hour 

Total cost 

($) 

1. Execute new ACC via HUD form 53012–A and B ...................................... 42 205 $24.34 $4,990 

2. Terminate or amend ACC ........................................................................... 78 390 24.34 9,493 

3. Request HUD approval of non-dwelling leases or agreements .................. 114 735 24.34 17,890 

4. HUD approval for easement uses ............................................................... 48 3524 24.34 8,567 

5. Submit General Depository Agreement (GDA) via form HUD 51999 ......... 265 651 24.34 15,845 

6. Request to terminate GDA .......................................................................... 107 202 24.34 4,917 

7. ACC revisions to change year end dates ................................................... 23 257 24.34 6,255 

8. ACC to consolidate PHAS ........................................................................... 18 217 24.34 5,282 

9. ACC revision to transfer programs .............................................................. 43 391 24.34 9,517 

10. Request review of Conflict of interest ....................................................... 102 951 24.34 23,147 

11. Request pooling of insurance .................................................................... 5 97 24.34 2,361 

12. Request for new Declaration of Trust (DOT) via form HUD 52190–A 

and B ............................................................................................................ 142 1249 24.34 30,400 

13. Request DOT amendment or termination ................................................. 221 2031 24.34 49,435 

14. Amend ACC for Capital Fund Finance via form HUD 52840–A ............... 73 788 24.34 19,180 

15. Amend ACC for Mixed Finance Supplementary Legal Document ............ 94 1981 50 99,050 

16. Amend ACC for Capital Grant ................................................................... 2820 11,070 24.34 269,443 

17. Amend ACC for Emergency Capital Fund Grant ...................................... 38 100 24.34 2,434 

18. Amend ACC Capital Fund for Safety and Security ................................... 75 96 24.34 2,337 

19. Amend ACC to Recapture Capital Fund Grant ......................................... 123 643 24.34 15,650 

20. Amend ACC for Energy Performance Contract ........................................ 38 192 24.34 4,673 

21. Amend ACC for Community Facilities Grants ........................................... 13 28 24.34 682 

22. Demo Disposition Approvals and Removing Units form ACC–HUD Form 

52860 ........................................................................................................... 162 1746 24.34 42,498 

23. Chicago Special Applications Center Approval for Inventory Removal 

Applications .................................................................................................. 851 6,010 33.06 225,072 

24. Supplementary Document: Unique Legal Document used by HQ Staff 

Mixed-Finance Amendment to the ACC ...................................................... 60 1440 50 72,000 

Totals ........................................................................................................ 6,765 34,944 ........................ 927,423 

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. 

Affected Public Who Will Be Asked or 

Required to Respond: The primary 

respondents are Public Housing 

Agencies. 


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Federal Register / Vol. 83, No. 247 / Thursday, December 27, 2018 / Notices 66731 

C. Authority 

Section 3507 of the Paperwork 

Reduction Act of 1995, 44 U.S.C. 

Chapter 35. 

Date: December 19, 2018. 

Dominique Blom, 

General Deputy Assistant Secretary for Public 

and Indian Housing. 

Annual Contributions Contract HUD– 

53012 (ACC) 

U.S. Department of Housing and Urban 

Development Office of Public and 

Indian Housing 

OMB Approval No. 2577–0075 

(exp. 01/31/2021) 

The information collection requirements 

contained in this document have been 

approved by the Office of Management and 

Budget (OMB) under the Paperwork 

Reduction Act of 1995 (44 U.S.C. 3501–3520) 

and assigned OMB control number 2577– 

0075. There is no personal information 

contained in this application. Information on 

activities and expenditures of grant funds is 

public information and is generally available 

for disclosure. Recipients are responsible for 

ensuring confidentiality when disclosure is 

not required. In accordance with the 

Paperwork Reduction Act, HUD may not 

conduct or sponsor, and a person is not 

required to respond to, a collection of 

information unless the collection displays a 

currently valid OMB control number. 

1. Definitions 

Act—The United Stated Housing Act 

of 1937 (42 U.S.C. 1437, et al.), as 

amended. 

Annual Contributions Contract 

(ACC)—This agreement between HUD 

and the HA which establishes the basic 

terms and conditions for the HA’s 

public housing grant program. 

Consolidated Annual Contributions 

Contract (consolidated ACC or CACC)— 

HUD’s annual Grant Funding Exhibits to 

the ACC, which together with the ACC, 

constitute the annual grant agreement 

for the HA’s public housing program. 

Cooperation Agreement— 

Agreement(s) prescribed by HUD for 

execution by the HA and the local 

governing body relative to the 

cooperation of the local governing body 

in the development and operation of the 

Project(s) and the obligation of the HA 

for payments in lieu of taxes (PILOT). 

Fiscal Year—The HA fiscal year. 

Grant Funding Exhibit—Exhibits to 

the ACC, in a form prescribed by HUD, 

reflecting HUD’s estimate of Operating 

Fund and Capital Fund grant funding or 

other public housing grant funding for 

which the HA is eligible. 

Housing Agency (HA)—The entity 

that meets the statutory definition set 

forth under the Act, and which is 

subject to the CACC. 

HUD—The U.S. Department of 

Housing and Urban Development. 

Mixed-Finance—Development or 

modernization of public housing units 

where the public housing units are 

owned in whole or in party by an entity 

other than a PHA (i.e., Owner-Entity). 

Operating Costs (Operating 

Expenditures or Operating Expenses)— 

Costs incurred by the HA for the 

necessary administration, operation and 

maintenance of a public housing 

Project; and which may be charged 

against Operating Receipts in 

accordance with the CACC and HUD 

requirements. Except as allowed by 

HUD, such costs do not include: any 

costs, expenses, expenditures, or 

charges incurred as part of the 

development or modernization of a 

public housing Project. 

Operating Receipts—All rents, 

revenues, income, and receipts accruing 

from, out of, generated by, or in 

connection with the ownership or 

operation of public housing, including 

grant funds received pursuant to HUD 

Requirements and is not limited to 

income from fees for services 

performed, the use or rental of real or 

personal property acquired with grant 

funds, the sale of commodities or items 

fabricated under the grant, license fees 

and royalties on patents and copyrights, 

and principal and interest on loans 

made with grant funds. Operating 

Receipts shall not include any funds 

received for the development or 

modernization of a Project; annual 

contributions pledged for payment of 

bonds or notes; proceeds from the 

disposition of real property; or rebates, 

credits, discounts and interest. 

Interest on the Operating Receipts 

(including the investment of Operating 

Receipts) constitutes Operating 

Receipts. 

Operating Reserve—The cumulative 

amount by which Operating Receipts 

have exceeded Operating Costs. 

Owner Entity—An entity, including 

the HA, that owns public housing units 

in a mixed finance project. 

Project (Public Housing Project)— 

Low-income housing, developed, 

acquired, or assisted by HUD under the 

Act, and the improvement of such 

housing, and necessary appurtenances 

thereto. The term includes all real and 

personal property, tangible and 

intangible, that is acquired or held by a 

HA in connection with a Project covered 

under the CACC. The term does not 

include housing under section 8 of the 

Act. 

Program (Public Housing program)— 

The HA’s public housing grant program. 

Program Receipts—Program Receipts 

shall mean Operating Receipts and any 

other funds received by the HA for the 

development, modernization, sale or 

transfer of Public Housing Projects. 

Subject to HUD Requirements, as 

defined in Paragraph 3, interest on the 

Program Receipts (including the 

investment of program receipts) 

constitutes Program Receipts. Program 

Receipts shall only be used to pay for 

public housing program expenditures, 

unless otherwise allowed by HUD 

Requirements. 

Public Housing—The term shall 

include Public Housing Projects, as well 

as all other real and personal property, 

tangible and intangible, which is 

acquired, or held by, the HA in 

connection with its public housing 

program covered under a CACC. 

Replacement Reserve Account—An 

account established by the HA, as 

approved by HUD, that may be used to 

fund any of the eligible capital activities 

outlined in the HA’s Capital Fund 5 

Year Action Plan as approved by HUD. 

2. Mission of HUD and HA 

a. HUD shall administer its Public 

Housing Program for the provision of 

decent, safe, and sanitary housing to 

eligible families in accordance with the 

CACC and all applicable HUD 

Requirements. HUD shall provide 

maximum responsibility and flexibility 

to HAs in making administrative 

decisions within all applicable statutes, 

executive orders, regulations and this 

ACC. HUD shall provide annual 

contributions, in the form of grants, to 

the HA in accordance with all 

applicable statutes, executive orders, 

regulations, and the CACC. 

b. The HA shall use Program Receipts 

to provide decent, safe, and sanitary 

housing for eligible families in 

compliance with the Act and all HUD 

requirements. HA shall at all times 

develop and operate Public Housing 

Projects in a manner that promotes 

serviceability, economy, efficiency, and 

stability of the Projects, and the 

economic and social well-being of the 

tenants. 

c. Except as otherwise provide by law, 

the HA shall develop, modernize and 

operate all Projects covered by the 

CACC, in accordance with HUD 

Requirements. The HA shall also ensure 

compliance with such requirements by 

any Owner Entity, contractor or 

subcontractor engaged in the 

development or operation of a Project 

covered under the CACC. 

3. HUD Requirements 

Except as otherwise provided by law, 

the HA must comply with the following 

‘‘HUD Requirements,’’ including all 


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such requirements as amended from 

time to time: 

a. The Act; 

b. Regulations at Title 2 of the Code 

of Federal Regulations, and regulations 

issued by HUD at Title 24 of the Code 

of Federal Regulations); 

c. Other Federal statutes (including 

appropriations acts), executive orders 

and regulatory requirements; and 

d. HUD-issued notices, and HUDrequired forms, or agreements. 

4. Cooperation Agreement(s) 

During the development and 

operation of the Project(s), the HA shall 

perform and comply with all applicable 

provisions of a Cooperation Agreement 

in the form prescribed by HUD, 

including the making of PILOT 

provided therein (or such lesser amount 

as may be prescribed by State law or 

agreed to by the local governing body); 

and shall at all times preserve and 

enforce its rights thereunder, and shall 

not terminate or amend the Cooperation 

Agreement(s) without the prior written 

approval of HUD. 

5. Declaration of Restrictive Covenants 

a. Record of Obligation. Upon the 

acquisition, development, or assistance 

of any real property with funds covered 

by the CACC, the HA shall execute and 

file for record against the Project and/or 

the owner’s leasehold interest an 

instrument (which shall be in the form 

of a declaration of trust, declaration of 

restrictive covenant, or such other 

document as approved or prescribed by 

HUD), confirming and further 

evidencing, but not limited to, (1) the 

obligation of the HA not to convey or 

encumber the Project except as 

expressly authorized in the CACC, (2) 

the obligation of the HA to develop, 

maintain and operate such Project in 

compliance with the CACC and HUD 

Requirements. 

1. Such instrument and all 

amendments shall be duly recorded or 

filed for record to give public notice of 

their contents and to protect the rights 

and interests of HUD. 

2. The HA shall promptly furnish 

HUD with appropriate evidence of such 

recording or filing. From time to time, 

as additional real property is acquired, 

assisted, or disposed of (or removed 

from the public housing program) by the 

HA in connection with its Public 

Housing Program, the HA shall 

promptly amend such instrument to 

incorporate all such real property and 

shall record the instrument, as 

amended. The declaration shall provide 

further that it may not be modified, 

amended or released without the prior 

written approval of HUD. The HA shall 

promptly furnish HUD with appropriate 

evidence of such recording or filing. 

b. Mixed-Financed Projects. The HA 

shall require the Owner Entity to 

execute and file for record against the 

Project, prior to the recordation of any 

other encumbrance, a declaration in the 

form approved by HUD. 

1. The declaration shall confirm and 

evidence the Owner Entity’s obligation 

during the term of CACC covering the 

Project units and throughout such 

further period when such approval may 

be required by law as then in effect, to 

develop, maintain and operate the 

Project units in compliance with the 

HUD Requirements. Such declaration 

and all amendments shall be duly 

recorded or filed for record to give 

public notice of their contents and to 

protect the rights and interests of HUD. 

2. The declaration shall provide 

further that it may not be modified, 

amended or released without the prior 

written approval of HUD. The HA shall 

promptly furnish HUD with appropriate 

evidence of such recording or filing. 

6. Disposition and Encumbrances 

a. Covenant Against Disposition and 

Encumbrances. The HA shall not 

demolish or dispose of any Project, or 

portion thereof, other than in 

accordance with the terms of the CACC 

and applicable HUD Requirements. The 

HA shall not encumber any Project, or 

portion thereof, without the prior 

written approval of HUD. The HA shall 

not pledge any assets of any Project 

covered by the CACC as collateral for 

any loan or other obligation, without the 

prior written approval of HUD. 

However, prior written approval by 

HUD is not required for the HA to enter 

into dwelling leases with eligible 

families for dwelling units in the 

Projects covered by the CACC, and such 

other normal uses associated with the 

operation of the Project(s). 

b. Mixed-Finance Projects. Without 

the prior written approval of HUD, no 

transfer, conveyance, or assignment 

shall be made: (i) Of any interest of a 

managing member, general partner, or 

controlling shareholder (any such 

interest being referred to as a 

‘‘Controlling Interest’’) of the Owner 

Entity; (ii) of a Controlling Interest in 

any entity which has a Controlling 

Interest in the Owner Entity; or, (iii) 

prior to the payment in full of all equity 

contributions described in the approved 

evidentiary documents, any other 

interest in the Owner Entity, or in any 

partner or member thereof. 

1. Notwithstanding the foregoing, 

HUD consent is not required where a 

business organization that has a limited 

interest (non-controlling and nonmanaging) in the Owner Entity transfers 

a non-controlling and non-managing 

interest in the business organization, 

provided that: (i) The Owner Entity 

provides HUD with written notice of 

such transfer; (ii) the transfer of such 

interest does not result in an entity 

obtaining a Controlling Interest or 

managing interest following the transfer; 

and, (iii) the Owner Entity certifies to 

HUD that the new owner of the limited 

interest remains obligated to fund its 

equity contribution in accordance with 

the terms of the HUD-approved 

organizational documents of the Owner 

Entity. 

2. HUD will not unreasonably 

withhold, delay, or condition a request 

by the Owner Entity for HUD’s consent 

to an internal reorganization of the 

corporate or partnership structure of the 

Owner Entity or any of the partners, 

members or stockholders of the Owner 

Entity. 

3. Notwithstanding the foregoing, the 

prior approval of HUD and the HA will 

not be required for the exercise by any 

investor partner of the Owner Entity 

(‘‘Investor’’) of its right pursuant to the 

Amended and Restated Limited 

Partnership Agreement of the Owner 

Entity (‘‘Partnership Agreement’’) to 

remove the general partner of the Owner 

Entity and appoint the Investor or its 

Affiliate (i.e., any entity which directly 

or indirectly controls, or is controlled 

by, or is under common control with, 

the specified entity) as an interim 

general partner of the Owner Entity so 

long as the Investor gives prompt 

written notice to HUD of such removal 

and appointment (‘‘Removal Notice’’); 

provided that HUD and the HA consent 

will be required for the appointment of 

such interim general partner to extend 

beyond a ninety (90) day period and for 

the appointment of any entity 

(including the Investor of an affiliate 

thereof) as the permanent replacement 

general partner. Such 90-day period will 

commence on the date of the Removal 

Notice (‘‘Interim Replacement Period’’). 

With the prior written approval of HUD 

and the HA, the Interim Replacement 

Period may be extended for an 

additional 90 days to allow the 

substitute general partner of the Owner 

Entity to find a replacement general 

partner acceptable to HUD and all other 

parties, provided that prior to the 

expiration of such additional 90-day 

period, the substitute general partner 

demonstrates that the Investor is 

continuing to fund (or has already 

funded) capital as required under the 

Partnership Agreement and that the 

Project continues to be operated in a 

manner consistent with HUD 

Requirements. 


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4. The consent of HUD and the HA 

will not be required for (i) any exercise 

by the Investor of its right to require the 

repurchase of its limited partnership 

interests as against the General Partner, 

any guarantor, and/or any affiliate 

thereof (‘‘Repurchaser’’) pursuant to the 

Partnership Agreement, provided that 

the Investor provides prompt written 

notice to HUD and the HA at the time 

of its exercise of such right, and further 

provided that any resale of the limited 

partnership interests by the Repurchaser 

will be subject to the approval of HUD 

and the HA, such approval not to be 

unreasonably withheld, delayed or 

conditioned, or (ii) the exercise by the 

HA (or any approved Affiliate thereof) 

of its rights to acquire interests or the 

Property pursuant to the Right of First 

Refusal and Purchase Option Agreement 

of approximately even date herewith. 

7. Insurance Requirements 

a. Except as otherwise provided by 

HUD, and in accordance with the CACC 

and HUD regulations and requirements, 

the HA shall procure adequate 

insurance to protect the HA from 

financial loss resulting from various 

hazards. 

b. Mandatory Insurance Coverage. 

The following types of insurance 

coverage are required: 

1. Commercial Property. Each policy 

must be written with a blanket limit, on 

a replacement cost basis, and with an 

agreed value clause eliminating any 

coinsurance provision. 

2. Commercial General Liability. 

3. Workers Compensation and 

Employers Liability. 

4. Owned and Non-Owned 

Automobile Liability. 

5. Theft, Disappearance, and 

Destruction, only if the amount of cash 

and checks on hand at any one time 

exceeds the amount prescribed by HUD. 

6. Employee Dishonesty. 

7. Boiler and Machinery if steam 

boilers have been installed. 

8. Flood Insurance for property 

located in a flood plain, as determined 

in the Federal Government’s National 

Flood Insurance Program. 

9. Lead-Based Paint Liability for HAs 

undergoing lead-based paint testing and 

abatement. 

10. Fidelity Bond Coverage. The HA 

must carry adequate fidelity bond 

coverage, as required by HUD, of its 

officers, agents, or employees handling 

cash or authorized to sign checks. 

c. Optional Insurance Coverage. The 

following types of insurance coverage 

are recommended and should be 

purchased when the HA has exposure to 

these covered risks: 

1. Boiler and Machinery (equipment 

breakdown). 

2. Directors and Officers or Public 

Officials Liability. 

3. Law Enforcement Liability when 

the Commercial General Liability 

insurer has excluded coverage. 

d. Authorized Insurance Companies. 

Insurance must be purchased from an 

insurance company or other entity that 

is licensed or duly authorized to write 

insurance in the State where the HA is 

located. 

e. Certificates of Insurance. At each 

renewal, the HA shall promptly have 

certificates of insurance submitted by 

the insurers to HUD describing the types 

of coverage, limits of insurance, policy 

numbers, and inception and expiration 

dates. 

f. Waivers and Self-Insurance Funds. 

Requests for waivers of this section not 

to purchase any form of required 

insurance, or to establish a selfinsurance fund in lieu of purchasing 

insurance, must be submitted in writing 

to HUD for approval and include 

specific justification and risk analysis. 

g. Restoration. Unless the HA has 

received prior written approval of HUD 

to the contrary, the HA shall, to the 

extent that insurance proceeds permit, 

promptly restore, reconstruct, and/or 

repair any damaged or destroyed 

property of a Project, in accordance with 

all HUD Requirements. 

h. Mixed Finance Projects. The HA, to 

the extent that insurance proceeds or 

condemnation award proceeds 

(‘‘Proceeds’’) permit, shall promptly 

cause the restoration, reconstruction, 

and/or repair (‘‘Restoration’’) of any 

damaged or destroyed property of the 

Project. The Owner Entity, to the extent 

Proceeds and other funds (if any are 

made available by the Owner Entity or 

the HA) permit, and to the extent 

Restoration is feasible, shall promptly 

cause the Restoration of ay damaged or 

destroyed property of the Project. Each 

mortgagee must permit Restoration if 

feasible (rather than require application 

of Proceeds to reduction of debt). If 

Restoration is not feasible, then the 

following requirements, which shall be 

incorporated into the Regulatory and 

Operating Agreement (or other such 

agreement) between the HA and the 

Owner Entity (and ground lease, if 

applicable), and with which all 

mortgage documents encumbering the 

Project shall be consistent, shall apply: 

1. Partial loss. In the event that less 

than all of the dwelling units in the 

Project are damaged, destroyed or lost as 

a result of casualty or condemnation, 

the following provisions shall apply: 

(A) If the Proceeds are less than, or 

equal to, the sum of the existing 

outstanding mortgage debt secured by 

the Project, excluding any such debt 

held by the HA to secure a loan of 

Capital Funds, other public housing 

development funds, or Program Receipts 

for the Project (‘‘Existing Mortgages’’), 

and such Proceeds are applied to 

reduction of Existing Mortgages, the 

number of Project units in the Project 

shall remain the number required 

immediately prior to the occurrence of 

the casualty or condemnation. 

(B) If the Proceeds are less than, or 

equal to, the sum of the Existing 

Mortgages but, at the election of the 

holders of the Existing Mortgages, are 

distributed among the holders thereof 

and the HA, by application first to 

reduction of the Existing Mortgages in 

an aggregate amount not to exceed the 

proportion of the Proceeds equal to the 

ratio of non-Project units to all dwelling 

units in the Project, and then by 

payment to the HA of the balance of the 

Proceeds; then the percentage of units in 

the Project (and the percentage of 

bedrooms contained therein) which 

shall be Project units shall remain the 

same as required immediately prior to 

the casualty or condemnation. 

(C) If the Proceeds are more than 

sufficient to pay off the Existing 

Mortgages, Proceeds in excess of the 

aggregate amount of the Existing 

Mortgages shall be applied in the 

following order of priority: 

(i). To reduce any outstanding 

indebtedness to the HA for a loan of 

Capital Funds, other public housing 

development funds, or Program 

Receipts; 

(ii). To reimburse the HA for any 

Capital Funds, HOPE VI Grant Funds or 

other public housing funds disbursed to 

the Owner Entity for development of the 

Project other than by loan; 

(iii). To the HA an amount equal to 

the total ‘‘cost of construction’’ 

attributable to the Project units, less the 

sum of (A) and (B) above; and 

(iv). To the Owner Entity. 

(D) Following application of Proceeds 

in accordance with this subparagraph 

the percentage of dwelling units in the 

Project which shall be Project units (and 

the percentage of bedrooms contained 

therein) shall remain the same as 

required immediately prior to the 

casualty or condemnation; provided, 

however, that to the extent that the 

payment to the HA pursuant to clauses 

(A), (B), and (C) shall be less than the 

‘‘cost of construction’’ attributable to the 

Project units, the number of remaining 

Project units shall be increased by a 

number of units (rounded down) equal 

to (1) the amount by which such 

payments to the HA shall be less than 

the cost of construction, divided by (2) 


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the quotient of (x) cost of construction, 

divided by (y) the number of Project 

units immediately prior to the 

occurrence of the casualty or 

condemnation. 

2. Total loss. In the event that all of 

the units in the Project are damaged, 

destroyed or lost as a result of casualty 

or condemnation, the following 

provisions shall apply: 

(A) The Proceeds shall be used to 

reduce the amount of the outstanding 

indebtedness of any mortgage(s) secured 

by the Project, including any 

mortgage(s) held by the HA, based on 

the priority recorded order of such 

mortgage(s); 

(B) If the Proceeds are more than 

sufficient to pay off the amount of the 

outstanding indebtedness of all 

mortgage(s) secured by the Project, 

including any mortgage(s) held by the 

HA, then the amount of the Proceeds in 

excess of such indebtedness shall be 

applied in the following order of 

priority: 

(i). To reduce any outstanding 

indebtedness to the HA for an 

unsecured loan of Capital Funds, or 

other HUD Development Funds or 

Program Receipts; 

(ii). To reimburse the HA for any 

Capital Funds, other public housing 

funds or Program Receipts disbursed to 

the Owner Entity for development of the 

Project other than by loan; 

(iii). To the HA an amount equal to 

the total ‘‘cost of construction’’ 

attributable to the Project units, less the 

sum of (a) and (b) above, and 

(iv). To the Owner Entity. 

For the purposes of this subsection, 

the term ‘‘cost of construction’’ shall 

mean the total cost of developing the 

Project, less land acquisition costs, if 

any, and non-capitalized soft costs. 

8. Employer Requirements 

The HA shall comply with all State 

and Federal laws applicable to 

employee benefit plans and other 

conditions of employment. 

9. Accounts, Records, and Government 

Access 

a. The HA shall maintain complete 

and accurate books of account for the 

Projects of the HA in such a manner as 

to permit the preparation of statements 

and reports in accordance with HUD 

Requirements, and to permit timely and 

effective audit. 

b. The HA shall furnish HUD such 

financial and program data, reports, 

records, statements, and documents at 

such times, in such form, and 

accompanied by such supporting data as 

required by HUD. The HA is required to 

submit information to, or access HUD’s 

system of records (SOR). HUD’s SOR are 

subject to the Privacy Act, the Freedom 

of Information Act, and other such 

applicable law. The HA shall not 

release, without prior HUD approval, 

any information contained in such 

records. 

c. The United States Government, 

including HUD and the Comptroller 

General, and its duly authorized 

representatives, shall have full and free 

access to all HA offices and facilities, 

and to all books, documents, and 

records of the HA relevant to the 

administration of the Projects under this 

CACC, including the right to audit and 

make copies. 

d. The HA shall engage and pay an 

independent public accountant to 

conduct audits that are required by HUD 

Requirements. The cost of audits 

required by HUD Requirements may be 

charged against Program Receipts. 

e. The foregoing (a)–(d) shall apply to 

any records and/or any facilities 

operated or maintained by an agent or 

independent contractor for the HA that 

assists in fulfilling any obligation under 

this CACC. Any such agent or 

independent contractor that denies or 

unduly limits HUD or its duly 

authorized representatives from 

reviewing records or denies or unduly 

limits HUD or its duly authorized 

representative entry to an office or 

facility, or prevents access to any office 

or facility, is a denial by the HA. 

10. Grant Funding 

a. HUD shall make annual 

contributions in the form of grant 

funding in the amounts provided for the 

Public Housing Program as stated in the 

Grant Funding Exhibits. 

b. Grant funding is subject to each 

year’s annual appropriations act. 

Appropriations may be reduced by HUD 

as directed by the Congress in an 

appropriations act. Grant funding may 

be reduced by an offset of a HA’s 

funding, pursuant to a formula 

prescribed by Congress in an 

appropriations act. Grant funding may 

also be reduced or offset pursuant to a 

formula devised by HUD if Congress has 

invested HUD with the discretion to 

devise and implement a funding 

formula in the appropriations act. Grant 

funding may also be terminated, 

recaptured, withheld, suspended, 

reduced or such other actions taken in 

accordance with HUD Requirements. 

c. Grant funding is calculated by 

applying applicable regulations in Title 

24 of the Code of Federal Regulations 

unless Congress provides otherwise. 

HUD will provide grant funding to the 

HA in accordance with HUD 

Requirements, unless modified by an 

appropriations act. The appropriations 

act, not the Title 24 of the Code of 

Federal Regulations, will always take 

precedence in formulating each year’s 

grant funding. Each year’s funding 

amounts and related information will be 

provided to the HA. Any change in 

funding or requirements to a Grant 

Funding Exhibit will be provided in a 

written notice to the HA. 

d. The HUD notice of a revised Grant 

Funding Exhibit(s) constitutes an 

amendment of the CACC. 

11. Depository 

a. The HA shall deposit and invest 

Program Receipts and investment 

securities received by or held for the 

account of the HA in connection with 

the development, operation and 

improvement of the Projects under a 

CACC with HUD in accordance with the 

terms of the General Depository 

Agreement(s) and all investment 

requirements provided in HUD and 

Treasury Notices and Regulations. The 

General Depository Agreement shall be 

in the form prescribed by HUD and 

must be executed by the HA and the 

depository. Immediately upon the 

execution of any General Depository 

Agreement, the HA shall furnish to HUD 

such executed or conformed copies 

thereof as HUD may require. A General 

Depository Agreement shall not be 

terminated except after 30 days’ notice 

to HUD. 

b. The HA shall maintain records that 

identify the source and application of 

funds in such a manner as to allow HUD 

to determine that all funds are and have 

been expended in accordance with HUD 

Requirements. The HA may only use 

Program Receipts for: (1) The payment 

of the costs of development and 

operation of the Projects under the 

CACC with HUD; (2) the purchase of 

investment securities as approved by 

HUD; and (3) such other purposes as 

may be specifically approved by HUD. 

Except as approved by HUD, and 

consistent with HUD Requirements, 

grant funds are not fungible. 

12. Termination of a Project 

If any Project covered by this ACC is 

terminated, all related Program Receipts 

shall, in accordance with the terms of 

this CACC and HUD Requirements, 

become part of another Project 

administered by the HA. If no Public 

Housing Project(s) exists, the remaining 

personal and real property, and Program 

Receipts, shall be distributed (including 

the possible remittance to HUD) as 

directed by HUD, consistent with HUD 

Requirements. 


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13. Notices, Defaults, Remedies 

a. Notice. Any notice required or 

permitted to be given under this ACC or 

CACC shall be in writing, signed by a 

duly authorized official, and addressed, 

if to the HA, to the principal office of 

the HA, and if to HUD, to the HUD 

office with jurisdiction over the HA, 

unless otherwise directed by regulation 

or other HUD Requirements. 

b. Substantial Default. A substantial 

default is a serious and material 

violation of any one or more of the 

covenants contained in the CACC. 

Events of substantial default shall 

include, but shall not be limited to, any 

of the following occurrences: (1) Failure 

to maintain and operate the Project(s) 

under this ACC in a decent, safe, and 

sanitary manner; (2) the disposition or 

encumbrance of any Project or portion 

thereof without HUD approval; (3) 

failure of the HA to comply with any 

civil rights requirements applicable to 

the HA and the Project(s); (4) 

abandonment of any Project by the HA, 

or if the powers of the HA to operate the 

public housing program in accordance 

with the provisions of this ACC are 

curtailed or limited to an extent that 

will prevent the accomplishment of the 

objectives of this ACC; (5) failure to 

carry out modernization or development 

in a timely, efficient and effective 

manner; and (6) termination of tax 

exemption (either real or personal 

property) on behalf of a Project covered 

under the CACC. 

1. Delivery of a notice of substantial 

default shall be required before the 

exercise of any remedy permitted under 

this ACC. Such notice shall: (1) Identify 

the specific covenants, statutes, 

executive orders, or regulations alleged 

to have been violated; (2) identify the 

specific events, actions, failure to act, or 

conditions that constitute the alleged 

substantial default; and (3) provide a 

specific timeframe for the HA to cure 

the substantial default, taking into 

consideration the nature of the default. 

2. Except in cases involving clear and 

apparent fraud, serious criminal 

behavior, or emergency conditions that 

pose an imminent threat to life, health, 

or safety, the HA shall have the right to 

appeal any such notice received from 

the HUD office with jurisdiction over 

the HA. Such informal appeals shall be 

in writing and shall be submitted within 

ten (10) working days from the date of 

the HA’s receipt of such notice. Appeals 

of the action of a HUD Office shall be 

made to the Assistant Secretary for 

Public and Indian Housing, or such 

other official as shall be a successor 

thereto. 

c. Remedies. Upon the occurrence of 

a substantial default, or the expiration of 

any applicable cure period provided by 

HUD, the HA shall: (1) Convey to HUD 

title to the Project(s) as demanded by 

HUD if, in the determination of HUD 

(which determination shall be final and 

conclusive), such conveyance of title is 

necessary to achieve the purposes of the 

Act; or (2) deliver possession and 

control of the Project(s) to HUD. 

d. Additional Remedies. Nothing 

contained in this ACC shall prohibit or 

limit HUD from the exercise of any 

other right or remedy existing under 

applicable law, or available at equity. 

HUD’s exercise or non-exercise of any 

right or remedy under this ACC or 

CACC shall not be construed as a waiver 

of HUD’s right to exercise that or any 

other right or remedy at any time. 

e. If HUD shall acquire title to, or 

possession of the Project(s), HUD shall 

re-convey or redeliver possession of the 

Project(s) to the HA, or to any entity 

recognized by HUD: (1) Upon a 

determination by HUD that the 

Substantial Default has been cured and 

that the Project(s) will thereafter be 

operated in accordance with the terms 

of the CACC; or (2) after the termination 

of HUD’s obligation to make payments, 

unless there are any obligations or 

covenants of the HA to HUD that are 

then in default. 

f. Termination for cause. HUD may at 

any time by notice to the HA declare 

this ACC or the CACC terminated with 

respect to any Project if: 

1. The HA has made any fraudulent 

or willful misrepresentation of any 

material fact in any document or data 

submitted to HUD as a basis for the 

CACC or as an inducement to HUD to 

enter into the CACC; or 

2. A substantial default exists in 

connection with any of the Projects. 

g. Mixed Finance Projects. In addition 

to the above the following shall apply to 

Mixed-Finance Projects: 

1. Each of the following shall also 

constitute an event of substantial default 

under the CACC: 

(A) The drawdown of Capital Funds, 

development grant funds, or other 

public housing funds, as applicable, in 

amounts greater than authorized, or in 

amounts greater than allowed by HUD 

Requirements; 

(B) Breach of any approved 

performance schedule; or 

(C) Serious and material breach of any 

terms, covenants, agreements, 

provisions, or warranties of: 

(i). The HA which, in the opinion of 

HUD, adversely affects the performance 

obligations of the HA, the Owner Entity, 

or other participating parties, and 

(ii). The Owner Entity, partner, or 

other participating party, made in any 

agreement submitted to HUD as part of 

the evidentiary materials which, in the 

opinion of HUD, adversely affects the 

performance obligations of the HA, the 

Owner Entity, partner, or other 

participating parties. 

2. HUD shall permit an Owner Entity, 

partner, or lender to participate, and 

may in its discretion, permit any other 

participating party to participate, in any 

appeal from a notice of substantial 

default delivered by HUD to the HA 

pursuant to this ACC with respect to a 

Project. 

3. During the term of any agreement 

between the HA and Owner Entity, and 

so long as the Owner Entity shall not be 

in default of its obligations thereunder, 

HUD agrees that in the event of the 

substantial default by the HA under the 

CACC, HUD shall exercise any remedies 

or sanctions authorized under the 

CACC, including taking possession of 

the HA’s interest in the Mixed Finance 

Project, in such manner as not to disturb 

the Owner Entity’s rights under any 

such agreements. 

4. Any rights of the mortgagee under 

a Note and First Mortgage (if any), 

including the right to exercise all 

remedies specified therein, shall not be 

subordinate to any other obligations 

imposed upon the Project, except as 

such obligations (1) shall be reflected in 

the Declaration of Restrictive Covenants, 

as required by the CACC, or a 

memorandum of lease (if applicable), 

and/or any other recorded instrument 

which shall have been recorded prior to 

the lien of the First Mortgage, or (2) 

shall be the subject of a subordination 

agreement with such mortgagee. 

14. HUD in Possession of Project(s) 

a. During any period in which HUD 

holds title to or possession of the 

Projects after a substantial default by the 

HA, HUD shall develop and/or operate 

such Project(s) as nearly as practicable 

in accordance with the provisions of the 

CACC. 

b. During any such period, HUD may, 

in the name and on behalf of the HA, 

or in its own name and on its own 

behalf (as HUD shall solely determine), 

exercise any and all rights of the HA 

under the CACC, and perform any and 

all obligations of the HA under the 

CACC. Nothing herein shall be deemed 

to make the action(s) or omission(s) of 

the HA attributable to HUD. 

15. Conflict of Interest 

a. In addition to any other applicable 

conflict of interest requirements, 

including those provided herein, HAs 

must also maintain written standards of 


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conduct covering conflicts of interest 

and governing the performance of its 

Board Member, executives, and 

employees engaged in the 

administration and operation of Projects 

covered by the CACC. A conflict of 

interest would arise when the employee, 

officer, or agent, any member of his or 

her immediate family, his or her 

partner, or an organization which 

employs (or is about to employ any of 

the parties indicated herein), has a 

financial or other interest in an 

organization considered for a contract 

with the HA, an RMC, other resident 

organization of the HA; or otherwise 

does business with, a tenant 

organization or tenants of the HA. The 

HA must disclose in writing any 

potential) conflict of interest to HUD. 

b. The HA, its contractors and 

subcontractors shall not enter into, or be 

a party to, any contract, subcontract, or 

arrangement in connection with a 

Project under the CACC in which any of 

the following classes of people has an 

interest, direct or indirect, during his or 

her tenure or for one year thereafter: 

1. Any present or former member or 

officer of the governing body of the HA, 

or any member of such individual’s 

immediate family. There shall be 

excepted from this prohibition any 

present or former tenant commissioner 

who does not serve on the governing 

body of a resident corporation, and who 

otherwise does not occupy a 

policymaking position with the resident 

corporation, the HA or a related 

business entity. 

2. Any employee of the HA who 

formulates policy or who influences 

decisions with respect to the Project(s), 

or any member of the employee’s 

immediate family, or the employee’s 

partner. 

3. Any public official, member of the 

local governing body, or State or local 

legislator, or any member of such 

individual’s immediate family, who 

exercises functions or responsibilities 

with respect to the Project(s) or the HA. 

4. Any member of these classes of 

persons must disclose the member’s 

interest or prospective interest to the 

HA. 

5. The requirements of this subsection 

may be waived by HUD for good cause, 

if the prohibited contract, subcontract or 

arrangement is otherwise permitted 

under State and local law. No person for 

whom a waiver is requested may 

exercise responsibilities or functions 

with respect to the contract, subcontract 

or arrangement to which the waiver 

pertains. 

6. The provisions of this subsection 

(b) shall not apply to the General 

Depository Agreement entered into with 

an institution regulated by a Federal 

agency, or to utility service for which 

the rates are fixed or controlled by a 

State or local agency. 

c. The HA shall not hire an employee 

in connection with a Project under this 

ACC if the prospective employee is an 

immediate family member of any person 

belonging to one of the following 

classes: 

1. Any present or former member or 

officer of the governing body of the HA. 

There shall be excepted from this 

prohibition any former tenant 

commissioner who does not serve on 

the governing body of a resident 

corporation, and who does not occupy 

a policymaking position with the HA. 

2. Any employee of the HA who 

formulates policy or who influences 

decisions with respect to the Project(s). 

3. Any public official, member of the 

local governing body, or State or local 

legislator, who exercises functions or 

responsibilities with respect to the 

Project(s) or the HA. 

d. The prohibition referred to in 

subsection (c) shall remain in effect 

throughout the class member’s tenure 

and for one year thereafter. 

e. A class member shall disclose to 

the HA the member’s familial 

relationship to any prospective 

employee. 

f. For purposes of this section, the 

term ‘‘immediate family member’’ 

means: the spouse, mother, father, 

mother-in-law, father-in-law, brother, 

sister, brother-in-law, sister-in-law, 

daughter-in-law, son-in-law or child of 

a covered class member (whether 

related as a full blood relative or 

adoption, or as a ‘‘half’’ or ‘‘step’’ 

relative, e.g., a half-brother or 

stepchild). 

1. The officers, employees, and agents 

of the HA must neither solicit nor 

accept gratuities, favors, or anything of 

monetary value from residents residing 

in Projects or participating in programs 

covered by the CACC. However, HAs 

may set standards for situations in 

which the financial interest is not 

substantial or the gift is an unsolicited 

item of nominal value. The standards of 

conduct must provide for disciplinary 

actions to be applied for violations of 

such standards by officers, employees, 

or agents of the HA. 

2. If the HA has a parent, affiliate, or 

subsidiary organization that is not a 

state or local government, the HA must 

also maintain equivalent written 

standards of conduct covering 

organizational conflicts of interest. 

‘‘Organizational conflicts of interest’’ 

means that because of relationships 

with a parent company, affiliate, or 

subsidiary organization, the HA is 

unable or appears to be unable to be 

impartial in conducting a procurement 

action involving a related organization; 

or in administering or operating a 

Project involving a related organization. 

g. Consistent with this section and 

HUD Requirements, the HA shall ensure 

that tenants served directly by the HA 

serve on the governing body of the HA. 

16. Civil Rights and Employment 

Requirements 

a. The HA shall comply with all 

statutory, regulatory, and executive 

order requirements pertaining to civil 

rights, equal opportunity, and 

nondiscrimination, as those 

requirements now exist, or as they may 

be enacted, promulgated, or amended 

from time to time. These requirements 

currently include, but are not be limited 

to, compliance with the following 

authorities: Title VI of the Civil Rights 

Act of 1964 (42 U.S.C. 2000d; 24 CFR 

part 1); the Fair Housing Act (42 U.S.C. 

3601–3619; 24 CFR part 100); section 

504 of the Rehabilitation Act of 1973 (29 

U.S.C. 794; 24 CFR part 8); (the Age 

Discrimination Act of 1975 (42 U.S.C. 

6101TM6107; 24 CFR part 146); the 

Americans with Disabilities Act (Pub. L. 

101–336, approved July 26, 1990; 28 

CFR part 35); Executive Order 11063 on 

Equal Opportunity in Housing (24 CFR 

part 107); Executive Order 11246 on 

Equal Employment Opportunity, as 

amended by Executive Order 11375 (41 

CFR part 60); and Executive Order 

12892 on Affirmatively Furthering Fair 

Housing. 

b. In connection with the 

development or operation of any 

Project, the HA shall not discriminate 

against any employee or applicant for 

employment because of race, color, 

religion, sex, disability, age, or national 

origin. The HA shall take affirmative 

action to ensure that applicants are 

employed, and that employees are 

treated during employment, without 

regard to race, color, religion, sex, 

disability, age, or national origin. Such 

action shall include, but not be limited 

to, the following: employment, 

upgrading, demotion, or transfer; 

recruitment or recruitment advertising; 

layoff or termination; rates of pay or 

other forms of compensation; and 

selection for training, including 

apprenticeship. The HA shall insert the 

foregoing provision (modified only to 

show the particular contractual 

relationship) in all its contracts in 

connection with the development or 

operation of any Project, except 

contracts for standard commercial 

supplies or raw materials and contracts 

referred to in subsection (C) of this 

section, and shall require all contractors 


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to insert a similar provision in all 

subcontracts, except subcontracts for 

standard commercial supplies or raw 

materials. The HA shall post at the 

Projects, in conspicuous places 

available to employees and applicants 

for employment, notices to be provided 

by HUD setting forth the provisions of 

this nondiscriminatory clause. 

c. The HA shall incorporate the 

language required by Executive Order 

11246, codified at 41 CFR 60–1.4(b) (or 

any successor provision), into any 

contract for construction work, or any 

modification thereof, which is paid for 

in whole or in part with funds obtained 

under this ACC. In addition, the HA 

agrees that it will be bound by the equal 

employment opportunity provisions set 

forth at 41 CFR 60–1.4(b) (or any 

successor provision) with respect to its 

own employment practices when it uses 

its own staff (force account) to carry out 

Federally assisted construction work. 

d. The HA shall, consistent with 12 

U.S.C. 1701u, codified at 24 CFR 135.1 

(or any successor provision), provide 

economic opportunities for Section 3 

residents and Section 3 business 

concerns. The HA may, consistent with 

applicable law and regulation, utilize 

work requirements when and where 

appropriate. 

17. Members or Delegates to Congress 

No member of or delegate to the 

Congress of the United States of 

America or resident commissioner shall 

be admitted to any share or part of this 

ACC or to any benefits which may arise 

from it. (As used in this section, the 

term ‘‘resident commissioner’’ refers to 

an individual appointed to oversee a 

territory or possession of the United 

States of America, e.g., Guam.) 

18. Rights of Third Parties 

Nothing in this ACC shall be 

construed as creating any right of any 

third party to enforce any provision of 

the ACC, the CACC, or to assert any 

claim against HUD or the HA. 

19. Waiver or Amendment 

Any right or remedy that HUD may 

have under this ACC may be waived in 

writing by HUD without the execution 

of a new or supplemental agreement, or 

by mutual agreement of the parties to 

this ACC. This agreement may be 

amended in writing: Provided that, none 

of the provisions of this ACC may be 

modified or amended in a manner that 

impairs HUD’s obligation to pay any 

annual contributions that have been 

pledged as security for any obligations 

of the HA. 

[FR Doc. 2018–28095 Filed 12–26–18; 8:45 am] 

BILLING CODE 4210–67–P 

DEPARTMENT OF HOUSING AND 

URBAN DEVELOPMENT 

[Docket No. FR–7006–N–19] 

60-Day Notice of Proposed Information 

Collection: Public Housing Mortgage 

Program and Section 30 

AGENCY: Office of the Assistant 

Secretary for Public and Indian 

Housing, HUD. 

ACTION: Notice. 

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 60 days of public 

comment. 

DATES: Comments Due Date: February 

25, 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 Colette.Pollard@hud.gov 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 tollfree Federal Relay Service at (800) 877– 

8339. 

FOR FURTHER INFORMATION CONTACT: 

Arlette Mussington, Office of Policy, 

Programs and Legislative Initiatives, 

PIH, Department of Housing and Urban 

Development, 451 7th Street SW, 

(L’Enfant Plaza, Room 2206), 

Washington, DC 20410; telephone 202– 

402–4109, (this is not a toll-free 

number). Persons with hearing or 

speech impairments may access this 

number via TTY by calling the Federal 

Information Relay Service at (800) 877– 

8339. Copies of available documents 

submitted to OMB may be obtained 

from Ms. Mussington. 

SUPPLEMENTARY INFORMATION: This 

notice informs the public that HUD is 

seeking approval from OMB for the 

information collection described in 

Section A. 

A. Overview of Information Collection 

Title of Information Collection: Public 

Housing Mortgage Program and Section 

30. 

OMB Approval Number: 2577–0265. 

Type of Request: Extension of an 

approved collection. 

Form Number: N/A—Because federal 

regulations have not been adopted for 

this program, no specific forms are 

required. 

Description of the need for the 

information and proposed use: Section 

516 of the Quality Housing and Work 

Responsibility Act of 1998 

(QHWRA)(Pub. L. 105–276, October 21, 

1998) added Section 30, Public Housing 

Mortgages and Security Interest, to the 

United States Housing Act of 1937 (1937 

Act)(42 U.S.C. 1437z–2). Section 30 

authorizes the Secretary of the 

Department of Housing and Urban 

Development (HUD) to approve a 

Housing Authority’s (HA) request to 

mortgage public housing real property 

or grant a security interest in other 

tangible forms of personal property if 

the proceeds of the loan resulting from 

the mortgage or security interest are 

used for low-income housing uses. 

Public Housing Agencies (PHAs) must 

provide information to HUD for 

approval to allow PHAs to grant a 

mortgage in public housing real estate or 

a security interest in some tangible form 

of personal property owned by the PHA 

for the purposes of securing loans or 

other financing for modernization or 

development of low-income housing. 

Respondents (i.e. affected public): 

Members of Affected Public: State, Local 

or Local Government and Non-profit 

organization. 

Information collection Number of 

respondents 

Frequency of 

response 

Responses 

per annum 

Burden hour 

per response 

Annual burden 

hours 

Hourly cost 

per response Annual cost 

2577–0157 ................... 30 3 90 41.78 3,760 $157.65 $592,750 

Total ...................... ........................ ........................ ........................ ........................ ........................ ........................ ........................


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