54900 Federal Register / Vol. 75, No. 174 / Thursday, September 9, 2010 / Notices 

ACTION: Notice. 

SUMMARY: HUD announces the 

availability on its Web site of the 

applicant information, submission 

deadlines, funding criteria, and other 

requirements for the FY2010 LeadBased Paint Hazard Control Grant 

Program and Lead Hazard Reduction 

Demonstration Grant Program NOFA. 

Approximately $110 million is made 

available through this NOFA, by the 

Consolidated Appropriations Act, 2010 

(Pub. L. 111–117, approved December 

16, 2009). The purpose of these 

programs is to assist states, Native 

American Tribes, cities, counties/ 

parishes, or other units of local 

government undertake comprehensive 

programs to identify and control leadbased paint hazards in eligible privately 

owned rental or owner-occupied 

housing. The Lead Hazard Reduction 

Demonstration Grant Program is 

targeted, however, to urban jurisdictions 

with the greatest lead-based paint 

hazard control needs. 

The notice providing information 

regarding the application process, 

funding criteria and eligibility 

requirements can be found using the 

Department of Housing and Urban 

Development agency link on the 

Grants.gov/Find Web site at http:// 

www.grants.gov/search/agency.do. A 

link to Grants.gov is also available on 

the HUD Web site at http:// 

www.hud.gov/offices/adm/grants/ 

fundsavail.cfm. The Catalogue of 

Federal Domestic Assistance (CFDA) 

number for the Lead-Based Paint Hazard 

Control Program is 14.900. The CFDA 

number for the Lead Hazard Reduction 

Demonstration Grant Program is 14.905. 

Applications must be submitted 

electronically through Grants.gov. 

FOR FURTHER INFORMATION CONTACT: For 

information concerning the Lead-Based 

Paint Hazard Control Grant Program and 

Lead Hazard Reduction Demonstration 

Grant Program, contact Michelle M. 

Miller, Director, Programs Division, 

Office of Healthy Homes and Lead 

Hazard Control, Department of Housing 

and Urban Development, 451 Seventh 

Street, SW., Room 8236, Washington DC 

20410–3000; telephone number 202– 

402–5769 (this is not a toll-free 

number). Persons with speech or 

hearing impairments may access this 

telephone number via TTY by calling 

the toll-free Federal Relay Service 

during working hours at 800–877–8339. 

Dated: September 1, 2010. 

Aaron Santa Anna, 

Assistant General Counsel for Regulations. 

[FR Doc. 2010–22537 Filed 9–8–10; 8:45 am] 

BILLING CODE 4210–67–P 

DEPARTMENT OF HOUSING AND 

URBAN DEVELOPMENT 

[Docket No. FR–5407–N–02] 

Notice of HUD–Held Multifamily and 

Healthcare Loan Sale (MHLS 2010–2) 

AGENCY: Office of the Assistant 

Secretary for Housing—Federal Housing 

Commissioner, HUD. 

ACTION: Notice of sale of mortgage loans. 

SUMMARY: This notice announces HUD’s 

intention to sell certain unsubsidized 

multifamily and healthcare mortgage 

loans, without Federal Housing 

Administration (FHA) insurance, in a 

competitive, sealed bid sale (MHLS 

2010–2). Additionally, HUD may extend 

the sale to include a supplementary 

pool of unsubsidized multifamily 

mortgage loan(s), without FHA 

insurance, limited to not-for-profit 

organizations and units of State and 

Local Government. This notice also 

describes generally the bidding process 

for the sale and certain persons who are 

ineligible to bid. 

The Qualification Statement in 

connection with the sale has the 

following new provisions and revisions: 

(1) Part II, Number 7 was revised to 

reflect that the Purchaser must also meet 

the requirements in Paragraph I of the 

Qualification Statement to become a 

qualified bidder with respect to the 

relevant Mortgage Loans; (2) Part II, 

Number 8 and Paragraph M were added 

to allow a limited partner or nonmanaging member (which may include 

a tax credit investor) to qualify to bid on 

a Mortgage Loan(s) in which Purchaser 

has made a financial investment; (3) 

paragraph K was revised to allow 

Purchaser the option to provide a 

complete listing or organizational chart 

of known Related Parties or affiliates 

which HUD will review, pursuant to its 

2530 Previous Participation process, to 

determine whether a Purchaser is a 

Qualified Bidder; and (4) Paragraph L 

was added to descibe the status of, and 

limitations on bidding for, a Purchaser 

who has selected box 8. 

The Department has notified units of 

Local Governments of this planned sale 

and has provided each jurisdiction with 

the opportunity to purchase assets 

directly from the Department. It is 

anticipated that any direct sales of these 

notes to units of local governments 

would be offered and closed in the same 

timeframe as the competitive sale. 

The Department is also in the process 

of working with the California Housing 

Finance Agency for the direct sale of 

The Winery, a multifamily loan. It is 

anticipated that the sale of this asset 

will take place in the same timeframe as 

the competitive sale. 

DATES: The Bidder’s Information 

Package (BIP) was made available to 

qualified bidders on August 11, 2010. 

Bids will only be accepted during the 

period from 1 p.m. EDT on September 

8, 2010 to 1 p.m. EDT on September 9, 

2010. HUD anticipates that awards will 

be made on or before September 10, 

2010. Closings are expected to take 

place between September 15, 2010 and 

September 22, 2010. 

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 are available on 

the HUD Web site at http:// 

www.hud.gov/offices/hsg/comp/asset/ 

mfam/mhls.cfm. Please mail and fax 

executed documents to KDX Ventures: 

KDX Ventures, c/o The Debt Exchange, 

133 Federal Street, 10th Floor, Boston, 

MA 02111, Attention: MHLS 2010–2 

Sale Coordinator, Fax: 1–617–531– 

3499. 

FOR FURTHER INFORMATION CONTACT: John 

Lucey, Deputy Director, Asset Sales 

Office, Room 3136, Department of 

Housing and Urban Development, 451 

Seventh Street, SW., Washington, DC 

20410–8000; telephone 202–708–2625, 

extension 3927. Hearing- or speechimpaired individuals may call 202–708– 

4594 (TTY). These are not toll-free 

numbers. 

SUPPLEMENTARY INFORMATION: HUD 

announces its intention to sell in MHLS 

2010–2 certain unsubsidized mortgage 

loans (Mortgage Loans) secured by 

multifamily and healthcare properties 

located throughout the United States. 

The Mortgage Loans are comprised 

primarily of non-performing mortgage 

loans. A final listing of the Mortgage 

Loans will be included in the BIP. The 

Mortgage Loans will be sold without 

FHA insurance and with 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 several 

mortgage loan pools, which may include 

a supplementary pool of unsubsidized 

multifamily mortgage loan(s), without 

Federal Housing Administration (FHA) 

insurance, limited to not-for-profit 

organizations and units of State and 

Local Government. Each pool will 

contain Mortgage Loans that generally 

have similar performance, property 

type, geographic location, lien position 

and other characteristics. Qualified 

bidders may submit bids on one or more 

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Federal Register / Vol. 75, No. 174 / Thursday, September 9, 2010 / Notices 54901 

pools of Mortgage Loans or may bid on 

individual loans. A mortgagor, or 

related party who is a qualified bidder 

as set forth in the Qualification 

Statement and whose loan is current 

may submit an individual bid on its 

own Mortgage Loan. A tax credit 

investor who is a qualified bidder may 

submit a bid(s) in accordance with the 

terms set forth in the Qualification 

Statement. 

Interested mortgagors or related 

parties should review the Qualification 

Statement to determine whether they 

may also be eligible to qualify to submit 

bids on one or more pools of Mortgage 

Loans or on individual loans in MHLS 

2010–2. 

The Bidding Process 

The BIP will describe in detail the 

procedure for bidding in MHLS 2010–2. 

The BIP will also include a standardized 

non-negotiable loan sale agreement 

(Loan Sale Agreement). Deposits are 

calculated based upon each bidder’s 

aggregate bid price. For an aggregate bid 

price greater than or equal to one 

hundred thousand dollars ($100,000), 

each bidder must submit a deposit equal 

to the greater of: (1) One hundred 

thousand dollars ($100,000); or (2) ten 

percent (10%) of its bid price. In the 

event the bidder’s aggregate bid price is 

less than $100,000, the minimum 

deposit shall not be less than fifty 

percent (50%) of its bid price. 

HUD will evaluate the bids submitted 

and determine the successful bids, in 

terms of the best value to HUD, 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. Deposits will 

be returned to unsuccessful bidders. 

Closings are expected to take place 

between September 15, 2010 and 

September 22, 2010. 

These are the essential terms of sale. 

The Loan Sale Agreement, which will 

be included in the BIP, will contain 

additional terms and details. To ensure 

a competitive bidding process, the terms 

of the bidding process and the Loan Sale 

Agreement are not subject to 

negotiation. 

Due Diligence Review 

The BIP will describe the due 

diligence process for reviewing loan 

files in MHLS 2010–2. 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 will be provided in the 

BIP. 

Mortgage Loan Sale Policy 

HUD reserves the right to add 

Mortgage Loans to or remove Mortgage 

Loans from MHLS 2010–2 at any time 

prior to the Award Date, without 

prejudice to HUD’s right to include any 

Mortgage Loans in a later sale. HUD also 

reserves the right to reject any and all 

bids, in whole or in part. Mortgage 

Loans will not be withdrawn after the 

Award Date except as is specifically 

provided 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 sale 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 

quickest and most efficient vehicle for 

HUD to dispose of the Mortgage Loans. 

HUD’s intention to limit a 

supplementary pool to not-for-profit 

organizations and units of State and 

Local Government enables HUD to 

ensure certain projects maintain 

affordability after the sale. 

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. Not-for-profit organizations and 

units of State and Local Government 

must complete, execute and submit both 

a Confidentiality Agreement and 

Qualification Statement for Non-Profits, 

Units of State and Local Government 

acceptable to HUD. The following 

individuals and entities are ineligible to 

bid on any of the Mortgage Loans 

included in MHLS 2010–2: 

(1) Any employee of HUD, a member 

of such employee’s household, or an 

entity owned or controlled by any such 

employee or member of such an 

employee’s household; 

(2) any individual or entity that is 

debarred, suspended, or excluded from 

doing business with HUD pursuant to 

Title 24 of the Code of Federal 

Regulations, Part 24, and Title 2 of the 

Code of Federal Regulations, Part 2424; 

(3) 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 2010–2; 

(4) any individual who was a 

principal, partner, director, agent or 

employee of any entity or individual 

described in subparagraph 3 above, at 

any time during which the entity or 

individual performed services for or on 

behalf of HUD in connection with 

MHLS 2010–2; 

(5) any individual or entity that uses 

the services, directly or indirectly, of 

any person or entity ineligible under 

subparagraphs 1 through 4 above to 

assist in preparing any of its bids on the 

Mortgage Loans; 

(6) any individual or entity which 

employs or uses the services of an 

employee of HUD (other than in such 

employee’s official capacity) who is 

involved in MHLS 2010–2; 

(7) any mortgagor (or affiliate of a 

mortgagor) that failed to submit to HUD 

on or before July 30, 2010, audited 

financial statements for fiscal years 2005 

through 2009 for a project securing a 

Mortgage Loan; 

(8) any individual or entity and any 

Related Party (as such term is defined in 

the Qualification Statement) of such 

individual or entity that is a mortgagor 

in any of HUD’s multifamily housing or 

healthcare programs and that is in 

default under such mortgage loan or is 

in violation of any regulatory or 

business agreements with HUD, unless 

such default or violation was cured on 

or before July 30, 2010. This paragraph 

does not pertain to a tax credit investor; 

(9) any entity or individual that 

serviced or held any Mortgage Loan at 

any time during the 2-year period prior 

to July 30, 2010, is ineligible to bid on 

such Mortgage Loan or on the pool 

containing such Mortgage Loan, but may 

bid on loan pools that do not contain 

Mortgage Loans that they have serviced 

or held at any time during the 2-year 

period prior to July 30, 2010; and 

(10) also ineligible to bid on any 

Mortgage Loan are: (a) Any affiliate or 

principal of any entity or individual 

described in the preceding sentence 

(paragraph 9); (b) any employee or 

subcontractor of such entity or 

individual during that 2-year period; or 

(c) any entity or individual that employs 

or uses the services of any other entity 

or individual described in this 

paragraph in preparing its bid on such 

Mortgage Loan. 

In addition, to be eligible to bid in 

HUD’s supplementary pool of 

unsubsidized multifamily mortgage 

loan(s) for sale(s) limited to not-forprofit organizations and units of State 

and Local Government, a prospective 

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54902 Federal Register / Vol. 75, No. 174 / Thursday, September 9, 2010 / Notices 

bidder must qualify as one or more of 

the following: 

(1) An entity that is a nonprofit 

organization as described in Section 

501(c)(3) of the Internal Revenue Code 

of 1954 (26 U.S.C.A. § 501(c)(3)); and/or 

(2) an entity that is unit of general 

local government or State agency. 

Prospective bidders should carefully 

review the Qualification Statement, as 

revised, to determine whether they are 

eligible to submit bids on the Mortgage 

Loans in MHLS 2010–2. 

Freedom of Information Act Requests 

HUD reserves the right, in its sole and 

absolute discretion, to disclose 

information regarding MHLS 2010–2, 

including, but not limited to, the 

identity of any successful bidder and its 

bid price or bid percentage for any pool 

of loans or individual loan, upon the 

closing of the sale of all the Mortgage 

Loans. Even if HUD elects not to 

publicly disclose any information 

relating to MHLS 2010–2, HUD will 

have the right to disclose any 

information that HUD is obligated to 

disclose pursuant to the Freedom of 

Information Act and all regulations 

promulgated thereunder. 

Scope of Notice 

This notice applies to MHLS 2010–2 

and does not establish HUD’s policy for 

the sale of other mortgage loans. 

Dated: August 18, 2010. 

David H. Stevens, 

Assistant Secretary for Housing—Federal 

Housing Commissioner. 

[FR Doc. 2010–22399 Filed 9–8–10; 8:45 am] 

BILLING CODE 4210–67–P 

DEPARTMENT OF HOUSING AND 

URBAN DEVELOPMENT 

[Docket No. FR–5432–N–01] 

Statutorily Mandated Designation of 

Difficult Development Areas and 

Qualified Census Tracts for 2011 

AGENCY: Office of the Assistant 

Secretary for Policy Development and 

Research, HUD. 

ACTION: Notice. 

SUMMARY: This document designates 

‘‘Difficult Development Areas’’ (DDAs) 

for purposes of the Low-Income 

Housing Tax Credit (LIHTC) under 

Section 42 of the Internal Revenue Code 

of 1986 (IRC) (26 U.S.C. 42). The United 

States Department of Housing and 

Urban Development (HUD) makes new 

DDA designations annually. The 

designations of ‘‘Qualified Census 

Tracts’’ (QCTs) under IRC Section 42 

published October 6, 2009, remain in 

effect. 

FOR FURTHER INFORMATION CONTACT: For 

questions on how areas are designated 

and on geographic definitions, contact 

Michael K. Hollar, Senior Economist, 

Economic Development and Public 

Finance Division, Office of Policy 

Development and Research, Department 

of Housing and Urban Development, 

451 Seventh Street, SW., Room 8234, 

Washington, DC 20410–6000; telephone 

number 202–402–5878, or send an email to Michael.K.Hollar@hud.gov. For 

specific legal questions pertaining to 

Section 42, contact Branch 5, Office of 

the Associate Chief Counsel, 

Passthroughs and Special Industries, 

Internal Revenue Service, 1111 

Constitution Avenue, NW., Washington, 

DC 20224; telephone number 202–622– 

3040, fax number 202–622–4753. For 

questions about the ‘‘HUB Zones’’ 

program, contact Mariana Pardo, 

Assistant Administrator for 

Procurement Policy, Office of 

Government Contracting, Small 

Business Administration, 409 Third 

Street, SW., Suite 8800, Washington, DC 

20416; telephone number 202–205– 

8885, fax number 202–205–7167, or 

send an e-mail to hubzone@sba.gov. A 

text telephone is available for persons 

with hearing or speech impairments at 

202–708–8339. (These are not toll-free 

telephone numbers.) Additional copies 

of this notice are available through HUD 

User at 800–245–2691 for a small fee to 

cover duplication and mailing costs. 

Copies Available Electronically: This 

notice and additional information about 

DDAs and QCTs are available 

electronically on the Internet at http:// 

www.huduser.org/datasets/qct.html. 

SUPPLEMENTARY INFORMATION: 

This Document 

This notice designates DDAs for each 

of the 50 states, the District of Columbia, 

Puerto Rico, American Samoa, Guam, 

the Northern Mariana Islands, and the 

U.S. Virgin Islands. The designations of 

DDAs in this notice are based on final 

Fiscal Year (FY) 2010 Fair Market Rents 

(FMRs), FY2010 income limits, and 

2000 Census population counts, as 

explained below. In accordance with the 

Gulf Opportunity Zone Act of 2005 (GO 

Zone Act) (Pub. L. 109–135, approved 

December 21, 2005), as amended by the 

U.S. Troop Readiness, Veterans’ Care, 

Katrina Recovery, and Iraq 

Accountability Appropriations Act of 

2007, (Pub.L.110–28, approved, May 25, 

2007), GO Zone DDAs expire on 

December 31, 2010. Thus, this notice 

does not designate GO Zone DDAs. 

2000 Census 

Data from the 2000 Census on total 

population of metropolitan areas and 

nonmetropolitan areas are used in the 

designation of DDAs. The Office of 

Management and Budget (OMB) first 

published new metropolitan area 

definitions incorporating 2000 Census 

data in OMB Bulletin No. 03–04 on June 

6, 2003, and updated them periodically 

through OMB Bulletin No. 09–01 on 

November 20, 2008. The FY2010 FMRs 

and FY2010 income limits used to 

designate DDAs are based on these new 

metropolitan statistical area (MSA) 

definitions, with modifications to 

account for substantial differences in 

rental housing markets (and, in some 

cases, median income levels) within 

MSAs. 

Background 

The U.S. Department of the Treasury 

(Treasury) and its Internal Revenue 

Service (IRS) are authorized to interpret 

and enforce the provisions of the IRC, 

including the LIHTC found at Section 

42. The Secretary of HUD is required to 

designate DDAs and QCTs by IRC 

Section 42(d)(5)(B). In order to assist in 

understanding HUD’s mandated 

designation of DDAs and QCTs for use 

in administering IRC Section 42, a 

summary of the section is provided. The 

following summary does not purport to 

bind Treasury or the IRS in any way, 

nor does it purport to bind HUD, since 

HUD has authority to interpret or 

administer the IRC only in instances 

where it receives explicit statutory 

delegation. 

Summary of the Low-Income Housing 

Tax Credit 

The LIHTC is a tax incentive intended 

to increase the availability of lowincome housing. IRC Section 42 

provides an income tax credit to owners 

of newly constructed or substantially 

rehabilitated low-income rental housing 

projects. The dollar amount of the 

LIHTC available for allocation by each 

state (credit ceiling) is limited by 

population. Each state is allowed a 

credit ceiling based on a statutory 

formula indicated at IRC Section 

42(h)(3). States may carry forward 

unallocated credits derived from the 

credit ceiling for one year; however, to 

the extent such unallocated credits are 

not used by then, the credits go into a 

national pool to be redistributed to 

states as additional credit. State and 

local housing agencies allocate the 

state’s credit ceiling among low-income 

housing buildings whose owners have 

applied for the credit. Besides IRC 

Section 42 credits derived from the 

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