[Federal Register Volume 74, Number 161 (Friday, August 21, 2009)]
[Notices]
[Pages 42319-42320]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-20157]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5345-N-01]


Notice of HUD-Held Noncompetitive Sales of Assets

AGENCY: Office of the Assistant Secretary for Housing--Federal Housing 
Commissioner, HUD.

ACTION: Notice of sales of two portfolios of Secretary-held mortgage 
loans to units of Local Government using Section 237 of Fiscal Year 
2009 Omnibus Appropriations Act.

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SUMMARY: This notice announces HUD's intention to sell certain 
subsidized and nonsubsidized multifamily and healthcare mortgage loans 
in noncompetitive sales to units of State and Local Government.

DATES: Acceptance of pricing and closing of the sale of the assets.

FOR FURTHER INFORMATION CONTACT: John Lucey, Deputy Director, Asset 
Sales Office, Room 3136, U.S. Department of Housing and Urban 
Development, 451 Seventh Street, SW., Washington, DC 20410-8000; 
telephone 202-708-2625, extension 3927. Hearing- or speech-impaired 
individuals may call 202-708-4594 (TTY). These are not toll-free 
numbers.

SUPPLEMENTARY INFORMATION: HUD announces its intention to sell certain 
subsidized and nonsubsidized mortgage loans (Mortgage Loans) secured 
primarily by multifamily properties and one healthcare property to 
units of State and Local Government in noncompetitive transactions. The 
subsidized mortgage loans contain Section 8 assistance, Below Market 
Interest Rates, or Section 236 Interest Rate Reduction Payments. The 
final listings of the Mortgage Loans will be available upon request. 
The Mortgage Loans will be sold without FHA insurance and with 
servicing released to a unit of State and Local Government which will 
service and maintain the mortgage loans as an important element of 
continuing the mission of providing affordable housing.
    Two loan portfolio sales are in process:

    (1) A portfolio of ten subsidized multifamily loans 
collateralized by 1,763 affordable units in New York City; and
    (2) A portfolio of seven multifamily loans (six nonsubsidized 
loans, one subsidized loan), collateralized by 2,274 units, in 
Arizona, California, the District of Columbia, Illinois, and 
Tennessee.

Due Diligence Review

    Upon HUD's receipt of an executed Confidentiality Agreement by the 
interested purchaser, they will be granted access to the available loan 
information for the loans to be offered in the sale. Access to loan 
information will be provided through electronic transfer of files.

Mortgage Loan Sale Policy

    HUD reserves the right to add Mortgage Loans to or delete Mortgage 
Loans from any sale at any time prior to the Award Date. Mortgage Loans 
will not be withdrawn after the Award Date except as is specifically 
provided in the Loan Sale Agreement. The new mortgagor will be bound to 
the terms indicated by the Loan Sale Agreement. Regulatory Agreements 
and Escrow Accounts may continue and may be assigned to the mortgagee.
    These are sales of Mortgage Loans to a unit of local government, 
pursuant to Section 203(k)(3) of the Housing and Community Development 
Amendments of 1978, Section 204 of the Departments of Veterans Affairs 
and Housing and

[[Page 42320]]

Urban Development, and Independent Agencies Appropriations Act, 1997, 
and Section 237 of the Omnibus Appropriations Act of 2009.

Mortgage Loan Sale Procedure

    HUD will pursue noncompetitive sales as the method to sell the 
Mortgage Loans. This method of sale will ensure affordable housing by 
awarding the Mortgage Loans to units of State and Local Government. The 
final purchase price will be based on the Office of Management and 
Budget's approved market valuation methodology and, if applicable, 
adjusted by immediate repairs required to maintain the property. The 
itemized cost of immediate repairs shall adhere to HUD's Post-Closing 
Repair Requirements form HUD-9552.

Freedom of Information Act Requests

    HUD will comply with the provisions of the Freedom of Information 
Act, 5 U.S.C. 552 and applicable regulations, in its disclosure of 
information regarding these sales, including, but not limited to, the 
successful bid price or bid percentage for any pool of loans or 
individual loan, upon the closing of the sales of all the Mortgage 
Loans.

Scope of Notice

    This notice applies to these sales only and does not establish 
HUD's policy for the sale of other mortgage loans.

    Dated: August 17, 2009.
Ronald Y. Spraker,
Acting General Deputy Assistant Secretary for Housing--Federal Housing 
Commissioner.
[FR Doc. E9-20157 Filed 8-20-09; 8:45 am]
BILLING CODE 4210-67-P