Notice of Submission of Proposed Information Collection to OMB; Section 202 Supportive Housing for the ElderlyApplication Submission Requirements

SUMMARY: The proposed information collection requirement described

below has been submitted to the Office of Management and Budget (OMB)

for expedited review, as required by the Paperwork Reduction Act. The

Department is soliciting public comments on the subject proposal.

ADDRESS: Interested persons are invited to submit comments regarding

this proposal. Comments must be received within seven (7) days from the

date of this Notice. Comments should refer to the proposal by name and

should be sent to: Joseph F. Lackey, Jr., OMB Desk Officer, Office of

Management and Budget, New Executive Office Building, Washington, DC

20503.

FOR FURTHER INFORMATION CONTACT: Kay F. Weaver, Reports Management

Officer, Department of Housing and Urban Development, 451 7th Street,

Southwest, Washington, DC 20410, telephone number (202) 708-0050. This

is not a toll-free number. Copies of the proposed forms and other

available documents submitted to OMB may be obtained from Ms. Weaver.

SUPPLEMENTARY INFORMATION: This Notice informs the public that the

Department of Housing and Urban Development has submitted to OMB, for

expedited processing, an information collection package with respect to

the application submission requirements for the Section 202 Supportive

Housing Program for the Elderly. HUD is requesting a seven-day OMB

review of this information collection.

The funds for this project development and construction assistance,

which are capital advances and project rental assistance contracts,

were appropriated by the Departments of Veterans Affairs and Housing

and Urban Development, and Independent Agencies Appropriations Act,

1995, (Pub. L. 103-327, enacted September 28, 1994).

HUD intends to make available $510,518,387 in capital advance

assistance which will produce approximately 7,409 units of supportive

housing for the elderly. HUD also will make available sufficient

project rental assistance funds to help cover the project's operating

cost. These funds will be provided to private nonprofit organizations

and nonprofit consumer cooperatives to expand the supply of supportive

housing for the elderly.

This Section 202 application submission package describes the

contents of the application package and includes the forms and other

information an applicant needs to file an application. The Section 202

application consists of 11 exhibits which are evaluated by HUD to

determine (1) the applicant's eligibility to participate in the

program; (2) the applicant's ability (financially and administratively)

to develop and operate the proposed project; (3) the need for the

supportive housing in the area to be served; (4) the extent to which

the applicant has site control; (5) the suitability of the site; (6)

the adequacy of the provision of supportive services; (7) the adequacy

of the proposed facility; and (8) that the applicant has properly

certified to comply with the various governmental requirements,

Executive Orders, etc.

The Department has submitted the proposal for the collection of

information, as described below, to OMB for review, as required by the

Paperwork Reduction Act (44 U.S.C. Chapter 35);

(1) the title of the information collection proposal;

(2) the office of the agency to collect the information;

(3) the description of the need for the information and its

proposed use;

(4) the agency form number, if applicable;

(5) what members of the public will be affected by the proposal;

(6) how frequently information submission will be required;

(7) an estimate of the total number of hours needed to prepare the

information submission including the number of respondents, frequency

of response, and hours of response;

(8) whether the proposal is new or an extension, reinstatement, or

revision of an information collection requirement; and

(9) the names and telephone numbers of an agency official familiar

with the proposal and of the OMB Desk Officer for the Department.

Authority: Section 3507 of the Paperwork Reduction Act, 44

U.S.C. 3507; Section 7(d) of the Department of Housing and Urban

Development Act, 42 U.S.C. 3535(d).

Dated: May 24, 1995.

Jeanne K. Engel,

General Deputy Assistant Secretary for Housing--Federal Housing

Commissioner.

Notice of Submission of Proposed Information Collection to OMB

Proposal: Section 202 Supportive Housing Program for the Elderly--

Application Submission Requirements, FR-3904.

Office: Office of Assistant Secretary for Housing--Federal Housing

Commissioner.

Description of the Need for the Information and Its Proposed Use: This

information collection is required in connection with the application

submission requirements for the Section 202 Supportive Housing Program

for the Elderly. HUD intends to make available $510,518,387 in capital

advance assistance to expand the supply of supportive housing for the

elderly. This information collection describes the contents of the

application package which is used by HUD to determine the acceptability

of the requests for capital advance assistance.

Form Number: HUD-92015-CA

Respondents: Private Nonprofit Organizations and Nonprofit Consumer

Cooperatives

Frequency of Submission: Annually

Reporting Burden:

----------------------------------------------------------------------------------------------------------------

Number Frequency of Hours per Burden

ofrespondents Response response hours

----------------------------------------------------------------------------------------------------------------

Application package..................... 600 1 41.3 22,500

----------------------------------------------------------------------------------------------------------------

Total Estimated Burden Hours: 22,500

Status: Reinstatement with Change

Contact: Margaret F. Milner, HUD (202) 708-4542; Joseph F. Lackey, Jr.,

OMB (202) 395-7316.

Dated: May 24, 1995. [[Page 29672]]

Section 202 Application Submission Requirements OMB No. 2502-0267

A. Supporting Statement

1. Need for Information

The Section 202 program, amended by the National Affordable Housing

Act (NAHA) of 1990 and the Housing and Community Development Act of

1992, provides capital advances to private nonprofit organizations and

nonprofit consumer cooperatives to expand the supply of supportive

housing for the elderly. In order to ensure that only eligible private

nonprofit organizations and nonprofit consumer cooperatives are

selected, it is important to obtain information from prospective

applicants to assist HUD in determining if they have the administrative

capacity to develop such a project and whether the project design and

proposed services meet the needs of the residents. These factors are

critical in meeting statutory requirements and in protecting the

Department's financial interest in projects funded under this program.

In keeping with the Department's commitment to streamline the

Section 202 application submission package, the Department met with

representatives of Section 202 nonprofit organizations, housing

consultants and other program staff to discuss ideas for revamping the

Section 202 application submission package to make it less burdensome

to Section 202 applicants without compromising the Federal Government's

financial interest in the project.

More recently, the Department held two working group sessions to

identify further ways to streamline the Section 202 program and make it

more consumer friendly. The working groups consisted of Sponsors of

Section 202 projects and HUD staff. Additionally, the Department

conducted a Section 202 consumer forum in which program beneficiaries,

primarily elderly residents and potential residents, expressed their

concerns about the quality of living in existing Section 202 projects

and provided ideas for improving the program and projects. The

supporting justification as contained herein reflects the results of

the Department's meetings and telephone conversations with the private

sector and HUD program staff.

The Section 202 application submission package for the fund

reservation was approved by OMB under No. 2502-0267 which expired in

December 1994. The Department is requesting reinstatement of OMB No.

2502-0267 to permit the Department to collect the information

identified in this submission.

The Department has an on-going commitment to identify ways to

simplify the process by which the Section 202 program is administered

(including the application submission requirements) so that it can be

more consumer friendly. Because of this commitment, the Department

wanted greater participation from the private sector in revising the

program. To accomplish this, additional time was needed to arrange for

and conduct the various working group sessions with the private sector

and other program staff, and to evaluate the recommendations resulting

from these sessions. As a result of this public-private effort, the

Department was unable to make the final revisions to the application

submission package prior to the OMB expiration date.

Based on our previous years' experience, the Department receives

far more applications than available resources can fund. In Fiscal Year

(FY) 1994, the Department received 492 applications requesting some

26,364 units of housing and could only select for funding 164

applications for some 7,819 units of housing.

Because the Department has continued to reduce program requirements

at the fund reservation stage and because the program provides for

capital advances (in lieu of loans), the Section 202 program is

expected to attract more nonprofit organizations. It is anticipated

that the number of applications received will exceed those received in

FY 1994. In view of the highly competitive nature of the Section 202

program, it is necessary to have the responses comply with prescribed

application requirements in order to form a basis for HUD's evaluation

in selecting applications.

The application submission requirements, summarized below, were

developed after much consultation with the professionals in the field

of providing housing for the elderly and were intended to not only

reduce the paperwork burden to the nonprofit applicants but to minimize

their front-end expenditures in putting together an application

package. This is important because only a small percentage of the

universe of applications received ultimately are funded.

Contents of Application Package

The contents of the Application for a Section 202 Fund Reservation

have been reorganized and reduced from five parts and 22 exhibits to

four parts and 11 exhibits. Included with the 11 exhibits are six

prescribed forms; five are required and one is optional.

There are 15 certifications in the application package. Eleven of

the certifications have been combined into a single document as a

convenience to the applicant. The four components of the application

submission package are:

Part 1--Application for Section 202 Supportive Housing Capital Advance

Part 2--Sponsor's Ability to Develop and Operate the Proposed Project

Part 3--Need for Supportive Housing in Area to be Served, Extent to

Which Sponsors has Site Control, and Suitability of Site; Adequacy of

Provision of Supportive Services and of the Proposed Facility

Part 4--General Application requirements and Certifications

All of the required application exhibits are specifically

identified in Section 889.270(b) of the Section 202 regulations, as

amended.

2. The Section 202 application submission requirements are

necessary to assist HUD in determining an applicant's eligibility and

capacity to develop housing for the elderly consistent with prescribed

statutory and program criteria. A thorough evaluation of an applicant's

qualifications and capabilities is critical in protecting the Federal

Government's financial interest and to mitigate any possibility of

fraud, waste or mismanagement or public funds.

The procedures for information collection requires the prospective

applicant to submit its Section 202 application to the appropriate

local HUD Office by the nationally established deadline date (usually

between March and June). Local HUD Office evaluate applications based

on established criteria (identified in Section 889.300 of the

regulations), rate the applications and make selection recommendations

to Headquarters (usually by the first week of September). Applicants

are notified of selection or nonselection generally by September 30.

This process occurs once a year.

The purpose and use of the four components of the application

exhibits are briefly described below:

(a) Part 1--Application for Section 202 Supportive Housing--Capital

Advance

Exhibit 1: This exhibit requires applicants to submit Form HUD-

92015-CA, Request for Section 202 Fund Reservation--Summary

Information. This is a relatively new form which replaced Form HUD-

92013, Application for Multifamily Housing Project, at the fund

reservation stage. Form HUD-92015-CA was specifically designed to

require the minimum information needed about the project for HUD

[[Page 29673]] review at this stage. The form identifies the applicant

and its known development team members as well as collects basic

information with regard to the proposed project's characteristics. It

is used by HUD staff to obtain basic information regarding the proposed

project. Since this Form is only used at the fund reservation stage, in

the previous clearance submission to OMB, we requested that it be

assigned the same OMB number as this submission (i.e., 2502-0267). It

inadvertently was assigned OMB No. 2502-0462 which relates to the

Section 811 application submission package.

(b) Part 2--Sponsor's Ability To Develop and Operate the Proposed

Project

Exhibit 2: This exhibit requests the submission of organizational

documents, IRS tax exemption ruling, and a Resolution, which also

includes a listing of all officers and directors, concerning Conflict

of Interest to assure that no officer or director has a financial

interest in the project. It is important to note that not all

applicants will have to submit all of the information asked for in this

exhibit. Applicants who have received a Section 202 fund reservation

within the last three funding cycles are not required to submit their

organizational documents and IRS tax exemption rulings. Instead, these

applicants must submit only the project numbers of their latest

application and any modifications to these documents, if any.

Exhibit 3: This exhibit requests narrative descriptions of the

applicant's experience in operating rental housing projects as well as

its experience with programs other than housing such as the provisions

of services. This information includes the applicant's experience in

serving the elderly and minorities. This information will assist HUD in

determining the applicant's over-all previous experience and capacity

to operate the proposed project over an extended period of time. This

is consistent with the statute which requires applicants to be selected

on, among things, their ability to develop and operate the proposed

housing.

In addition, the statute provides for the local coordination of

services by requiring, among things, that applicants have management

capacity to coordinate the provision of services and seek on a

continuous basis new sources of assistance for the provision of

supportive services tailored to the individual needs of the residents.

In order to assess the applicant's ability to carry out these statutory

requirements, the applicant is required to submit a statement

evidencing its ties to the community, including minority support, in

which the proposed project is to be built as well as a statement

regarding its purposes and activities.

Under this part, the applicant also submits a narrative description

of its contracting experience with minority and women-owned businesses

pursuant to Executive Orders 11625, 12432 and 12138, as well as its

efforts to involve elderly persons, including minority elderly persons,

in the development of the application and its intent to involve such

persons in the development of the project.

Included in this exhibit is a certified Resolution from the

applicant's Board acknowledging its responsibilities of sponsorship and

long-term support of the project, along with its willingness to fund

the minimum capital investment, estimated start-up expenses, and the

cost of any amenities or features that cannot be covered by the capital

advance.

It is important to note that many applicants will experience some

relief of paperwork burden in preparing this exhibit because applicants

that have participated in prior funding competitions will be able to

utilize information and exhibits from previously prepared applications.

Some examples include information regarding previous experience in the

provision of housing and services, supportive services plan, community

ties, and experiences serving minorities.

(c) Part 3--Need for Supportive Housing in Area to be Served, Extent to

Which Sponsor has Site Control, and Suitability of Site; Adequacy of

Provision of Supportive Services and of the Proposed Facility

Exhibit 4: This exhibit requests information pertaining to the

categories of elderly persons to be served, proposed site (including

environmental condition of the site), proposed design of the facility,

provision of supportive services, and demand for the proposed housing.

Also, the applicant must include a map showing the racial composition

and location of facilities and services of the area where the project

is to be located and Form HUD-92013E, Supplemental Application

Processing Form--Housing for the Elderly (OMB No. 2502-0232).

Information relative to the site and proposed residents is

necessary to assure that the proposed site is acceptable from an

environmental and locational standpoint for the intended use and the

applicant has control of the site as well as can obtain proper zoning.

In addition, the information is needed to determine the market needs

and demand for supportive housing for the elderly in the area to be

served by the proposed project.

Form HUD-92013E is used by the applicant to identify supportive

services, if any, to be provided to proposed residents of the housing.

In granting the previous approval to collect information under 2502-

0267, OMB conditioned the approval on the correction of two forms, one,

of which, was Form HUD-92013E. OMB specified that the Department must

accurately reflect the burden in the disclosure statement. The

disclosure statement for this form is contained on the top of the

second page and it reflects 8 burden hours. The reporting of 8 burden

hours is correct for this form and this submission package has been

revised to reflect 8 burden hours for this form.

In addition to describing the proposed services, the applicant

provides information about (1) any public or private sources of

assistance expected to fund the proposed services; (2) the manner in

which the services will be provided; (3) the building design and how

the design will facilitate the delivery of services and accommodate the

changing needs of the residents; and (4) how and if the proposed

project will promote energy efficiency, including any innovative

construction or rehabilitation methods.

This information is evaluated to determine the adequacy of the

provision of such services and how such services will be funded; how

the services and building design will meet the identified needs of the

residents as well as accommodate the aging in place of the residents

over the years. This is important because the NAHA requires HUD to

ensure that supportive services are provided which are tailored to the

needs of the type of elderly persons (including the frail elderly)

occupying the housing. HUD funds (Project Rental Assistance Contract

funds) may be used to cover a small portion (15 percent) of the cost

for such services. The balance of the service cost must be provided

from other sources.

Information with respect to the promotion of an energy efficient

building design will be used to assist HUD in determining compliance

with the energy efficiency standards in accordance with Section 109 of

NAHA. The information required under this Exhibit is in accordance with

the NAHA.

(d) Part 4--General Application Requirements and Certifications

Exhibit 5: To assist HUD in determining if the applicant is over-

[[Page 29674]] committed, the applicant submits for HUD's review a list

of all Section 202 and Section 811 applications submitted for the

current fiscal year funding round, and a list of projects previously

funded which have not finally closed. This is information that an

applicant that participated in a prior year can easily update, if

necessary, and resubmit for the current year.

Exhibit 6: Form HUD-2880, Applicant/Recipient Disclosure/Update

Report (OMB No. 2525-0101), is required by Section 102 of the HUD

Reform Act of 1989. The applicant uses this form to disclose any other

government assistance that may be provided in connection with the

proposed project as well as to report its Social Security Numbers or

Employee Identification Numbers. this information assists HUD to ensure

that the applicant does not receive more assistance than is necessary

to develop and operate the proposed project.

Exhibit 7. This exhibit is a certification, to be completed by the

Section 202 applicant, that the application was submitted to the State

for its review or that the State was contacted and it was determined

that a State review was not required. This certification is required by

OMB in accordance with Executive Order 12372.

Exhibit 8. This is a Guide Form, titled Project Data on Occupancy,

Displacement and Real Property Acquisition (Form HUD-40087), and its

use is optional. An applicant, at its option, may use to report

information relative to the acquisition of property and the relocation

or displacement of occupants in cases where the applicant proposes to

acquire property which is occupied. This information is consistent with

the requirements of the Uniform Relocation Assistance and Real Property

Acquisition Act of 1970, as amended.

In granting the previous approval to collect information under

2502-0267, OMB conditioned the approval on the correction of two forms,

one, of which, was Form HUD-40087. OMB specified that the Department

must accurately reflect the burden in the disclosure statement. This

form is exempt from the burden disclosure requirements because it is

only a ``guide'' form to be used at the option of the applicant. It is

only included in the application package as a convenience to the

applicant. The applicant is not required to submit this form. The

information regarding any relocation activities may be submitted in

narrative form.

Exhibit 9. Information requested on Form SF-424, Application for

Federal Assistance (OMB No. 0348-0043), serves a dual purpose. Pursuant

to Executive Order 12372, the applicant submits this form to the State

which is used by the State to initiate the intergovernmental review

process. The applicant also uses the form to certify that it is not

delinquent on any Federal debt which is an OMB requirement.

Exhibit 10. The applicant provides the Form SF-LLL, Disclosure of

Lobbying Activities (OMB No. 0348-0046), to indicate if other than

federally appropriated funds have been or will be used to lobby the

Executive or Legislative branches of the Federal Government pursuant to

Title 31 U.S.C., Section 1352.

Exhibit 11. This exhibit represents the consolidation of the

following ten certifications into a single document, thereby requiring

one signature for all. These certifications are required by

governmental actions, Executive Orders, etc. and are used to review the

applicant's intent to comply with the (1) Civil Rights, Fair Housing

and Equal Opportunity laws; (2) Drug-Free Workplace Act; (3) HUD's

design and cost standards including the Uniform Federal Accessibility

Standards and Section 504 of the Rehabilitation Act of 1973; (4)

acquisition relocation requirements of the Uniform Relocation

Assistance and Real Property Acquisition Policies Act of 1970, as

amended; (5) requirement to form an Owner after issuance of the capital

advance; (6) Davis-Bacon Act Provisions; (7) requirement that the

project be consistent with the Consolidated Plan for the appropriate

jurisdiction; (8) Flood Disaster Protection Act of 1973; (9) National

Environmental Policy Act; (10) Anti-Lobbying Prohibition; and (11)

requirement regarding the truth and accuracy of the information

contained in the application.

Included in this exhibit also is a guide format for use by the

public official responsible for developing the Consolidated Plan to

indicate whether or not the proposed activities are consistent with the

Consolidated Plan or the previous year's Comprehensive Housing

Affordability Strategy (CHAS) if the Consolidated Plan has not yet

started.

In the absence of collecting the above information, the Department

would not be able to assess the worthiness of the applications,

determine whether the facilities and services meet statutory and

regulatory requirements, or make sound judgements regarding the

potential risk to the Government.

3. Each fiscal year (near the beginning of the funding cycle), HUD

issues a Notice pertaining to application submission requirements.

During this process, the Department reevaluates the application

submission requirements to identify ways to reduce the burden to the

applicants. Because the Section 202 program had changed drastically

when it was converted to a capital advance program, the Department made

major revisions to the application package at that time. More recently,

in response to feedback from the professionals in the field of

developing Section 202 housing, the Department made further major

changes to streamline the program. This has resulted in less paperwork

for the applicants. Therefore, in revising the application package,

consideration was given to modifying it to require the minimum of

information needed by HUD to conduct the program in accordance with the

NAHA, statutory and regulatory requirements and, at the same time, to

establish a selection system which is equitable to all participants.

The information described under Item 2 above represents the minimum

information acceptable to HUD. Further, as mentioned in Item No. 2

above, many applicants will experience a tremendous relief from

paperwork burden because they will not have to spend time preparing

``new'' information to complete an Exhibit. In some cases, those

applicants that have participated in this program in the past will be

able to utilize previously submitted information.

4. No duplication exists, as there are no other forms or exhibits

used for the purposes specified under Item 2 herein. Individual

applications are evaluated and rated by HUD on the merits of the

responses submitted with the application. Each application is unique.

The information contained in each application relates to a particular

Sponsor proposing a specific project, design, site, etc., and, as such,

the information collected from applicants will be significantly

different per application.

Also, the Department implemented a new requirement which relieves a

previously funded applicant of the burden of submitting certain

documents (e.g., the organization's Articles of Incorporation, By-Laws

and IRS tax exemption ruling). Further, since FY 1991 when the program

was converted to a capital advance program, HUD has been reviewing and

modifying the application submission requirements to assure that only

necessary information is being requested of applicants. HUD has taken

into consideration suggestions made by the private sector in modifying

the application submission requirements.

5. Due to the highly competitive nature of the Section 202 program,

the [[Page 29675]] application submission requirements were developed

in a way to minimize the front-end cost to the nonprofit applicant and

only require the minimum amount of information needed in HUD's

evaluation. This is important due to the fact that only a small

percentage of the universe of applications received ultimately get

selected. For example, although applicants may still obtain the

services of a housing consultant, information on the consultant is no

longer required to be submitted at this stage. HUD review and approval

of the consultant will be done at a later stage and only for those

projects which are ultimately selected for funding.

Also, eliminated at the fund reservation stage is the submission of

Form HUD-92530, regarding the applicant's previous participation in HUD

programs and Form HUD-92013 Supplement, Supplement to Application for

Multifamily Housing Project. The submission and review of these forms

have been deferred to a subsequent processing stage. Sponsors no longer

have to submit sketches of the site plans which included typical unit

and floor plans, making it unnecessary for an applicant to have to

obtain input from an architect at this stage. Other major documents

recently eliminated at this stage are the applicants's financial

statements and a narrative description of the applicant's financial

history. The elimination of these documents will result in a tremendous

relief of paperwork burden to small and minority applicants.

The Department has consolidated several of the certification forms

into a single document for the applicant's convenience.

Also, the Department has prepared sample Application Packages which

include all the required forms and materials necessary to put together

an Application Package. The sample Application Packages will be made

available to all applicants well in advance of the deadline date for

submission of applications.

Local HUD Offices are required to conduct workshops to provide

needed guidance to applicants in preparing the application packages. In

an effort to assist the small sponsoring organizations as well as

first-time applicants, HUD staff also conducts pre-workshops especially

designed for them.

In addition to the above, HUD recognizes that some applicants, who

are sincerely interested in providing housing, may lack the staff and

other resources to develop such a project. Therefore, in recognition of

the need for these applicants to use the services of professional

housing consultants, HUD permits a reasonable fee for consultant's

services to be included in the Section 202 capital advance. The

consultant may assist the applicant in preparing the Application

Package to request a Section 202 Capital Advance and throughout the

final development of the project should the applicant be selected for

funding.

6. Currently, the information collection activities occur annually

to coincide with the receipt of annual fiscal year appropriations for

the program. Each year, Congress appropriates funds with which to

select new applications. HUD, in turn, invites applications and makes

selections based on the funds available for the year. These funds are

normally exhausted at the end of each fiscal year. The Section 202

regulations require HUD to publish a Notice of Fund Availability (NOFA)

in the Federal Register when such funds are made available by Congress.

The regulations also require HUD to specify a deadline date for receipt

of applications. In order for HUD to accept an application, the

application must have been submitted in response to a specific NOFA and

Invitation requesting such an application and by the closing date

stated in the Invitation. As the funding cycle for the program occurs

annually, including the Invitations for Applications, it is not

possible to require the submission of this information less frequently.

7. Part 5 CFR 1320.6 lists 10 items that OMB will not approve for

information collection, unless it can be demonstrated that the

collection of information is necessary to satisfy statutory

requirements or other substantial need.

This request for information is consistent with the guidelines

under 5 CFR 1320.6 with the exception of one item. Subparagraph (c) of

the above CFR indicates OMB's disapproval of requiring respondents to

submit more than an original and two copies of any document. HUD

requires applicants to submit an original and four copies of the

Section 202 Application. The changes to the application submission

requirement resulted in a better organized Application Package. As the

program is administered on an annual basis, processing of the

application must be accomplished in an expeditious manner in order that

decisions regarding selections of applications and reservations of

funds can be made prior to the end of the fiscal year (September 30).

During the course of processing the applications, eight HUD

technical disciplines are involved in the review process: staff from

Valuation, Architectural and Engineering, Housing Management, Fair

Housing and Equal Opportunity, Economic and Market Analysis, Community

Planning and Development, the Multifamily Housing Representative and

the Office Counsel. These HUD staff members are required to comment on

the approvability of each application received.

Because of the (1) various HUD staff involved in the review

process, (2) tremendous volume of applications received each fiscal

year, and (3) the commitment to obligate funds by the fiscal year-end,

HUD requires concurrent reviews of the applications by the

aforementioned HUD staff to assure prompt processing with minimum

interruption. For example, additional information or clarification is

often needed from applicants to permit HUD to make a fair and complete

review. The requirement for simultaneous reviews promotes a more

efficient, time-saving method to provide applicants a single

notification regarding all deficiencies noted as a result of a full

review from each HUD technical discipline.

HUD needs more than an original and two copies of the application

in order to carry out the above procedures for concurrent reviews.

8. This OMB request is the result of on-going telephone

conversations, meetings and workshops HUD staff recently held with

Section 202 nonprofit Sponsors, housing consultants, elderly residents

and potential residents, and other interested HUD program staff. The

Department consulted with various housing professionals representing

the types of Sponsors that generally participate in the Section 202

program; i.e., minority organizations, small organizations and

nonminority organizations. Following is a list of some of the housing

professionals (Housing Consultants and Section 202 Sponsors) that HUD

consulted with by telephone, meetings and/or workshop sessions:

Judy Ponds, Housing Services, 1234 4th Street SW., Washington, DC

20024, (202) 488-1639

Sam Simmons, National Center on Black Aged, 1424 K Street NW., Suite

500, Washington, DC 20005, (202) 637-8400

Nick Smyrnis, AHEPA Management Corp., 7202 N. Shadeland Ave.,

Indianapolis, IN, (317) 845-3410

Jane Graf, Mercy Charities Housing, 1028A Howard Street, San Francisco,

CA 94103, (415) 487-6825 [[Page 29676]]

Mark Olshan, B'nai B'rith, 1640 Rhode Island Avenue, NW., Washington,

DC 20036, (202) 857-6580

Alan Patricio, P.O. Box 53274, Atlanta, GA 30355, (404) 237-9877

Joe Howell, 815 15th Street NW., Washington, DC 20005, (202) 393-3044

Randy Speaker, Bank IV Towers, 534 Kansas Avenue, Suite 910, Topeka, KS

66603, (913) 232-8338

Harrison Joseph, Nat'l Baptist Convention, 338 Washington Street,

Newark, OH 43005, (614) 258-7998

Tom Slemmer, Nat'l Church Residences, 2335 N. Bank Drive, (614) 451-

2151

Don Redfoot, American Assn. for Retired Persons, 601 E Street NW.,

Washington, DC 20049, (202) 434-2277

Jose Fabregas, CODEC, Inc., 300 SW 12th Street, Suite A, Miami FL

33130, (305) 642-1361.

Additionally, inasmuch as this OMB request is submitted in

accordance with 24 CFR 889.270, as amended, the promulgation procedure

for regulations allows sufficient participation by outside agency

contacts to review and comment on the application materials.

9. HUD does not assure confidentiality.

10. The application submission requirements do not contain any

sensitive questions.

11. Provide estimates of annualized cost to the Federal Government

and to the respondents.

(a) Estimate of Cost to Federal Government: Inasmuch as the

majority of the work involved in reviewing the applications is

performed at the local HUD Office level, the significant costs

attributable to the promulgation of the application requirements will

be the cost involved in reviewing the information submitted by

applicants. Outstanding program procedures require the following

reviews performed by the various Field Office staff. The cost to the

Federal Government is based on an average salary at the GS-12 level,

except for the Office Counsel and the Clerical Assistant which is at

the GS-14 and GS-7 levels, respectively. Also, included is the cost

associated with the preparation and printing of the HUD Application

Package for use by the applicants in putting together their individual

Application Packages.

Reviews

------------------------------------------------------------------------

Total time

per

HUD staff application Hourly rate Total

(hours)

------------------------------------------------------------------------

Multifamily housing

representative................ 3 $22 $66

Architectural.................. 1 22 22

Valuation...................... 3 22 66

Economic and market analysis... 1 22 22

Fair housing and equal

opportunity................... 1 22 22

Housing management............. 1 22 22

Community planning and

development................... 1 22 22

Field office counsel........... 3 31 93

Clerical assistant............. 0.5 13 6.5

----------------------------------------

Total staff time--per

application............. 14.5 ........... $341.5

Total annual number of

responses............... ............ ........... * x 600

----------------------------------------

Total annual staff time

cost to government...... ............ ........... 204,900

Other cost for all

applications:

Printing/reproducing HUD

application package (600

copies)................... ............ ........... 700

Postage (600 copies x

$3.00).................... ............ ........... 1,800

Multifamily Clearinghouse

(Mailing Services)........ ............ ........... **5,000

----------------------------------------

Total other cost......... ............ ........... 7,500

Total estimated annual

cost to government...... ............ ........... 212,400

------------------------------------------------------------------------

*See Item 12 below for an explanation.

**The Department now utilizes the services of a Multifamily

Clearinghouse to maintain a national mailing list for Section 2020

Applications and to mail out the applications. Most applicants will

receive their packages through the mail. However, some applicants will

be handed copies of the Application Packages at the HUD-held

workshops.

(b) Estimate of cost to Respondents: In estimating the cost to the

applicants, it should be noted that in order to comply with the revised

program requirements, the applicant may retain an attorney. In

addition, as many nonprofit organizations do not have in-house

expertise or a staff to develop an application, a housing consultant is

usually hired by the applicant. The applicant is a nonprofit

organization and as such provides its services at no cost. In view of

this, the following illustrates the estimated cost to the public:

Housing consultant ($40 per hour)......................... $1,092

Applicant (sponsor)....................................... (**)

Attorney.................................................. 1,000

-------------

Total cost per respondent........................... 2,092

Total annual number of responses.................... * x 600

-------------

Total estimated annual cost for all applicants...... 1,255,200

*See Item 12 below for an explanation.

**Probono.

This reflects no change in the cost to the applicant from the

previous OMB submission. Beginning this year, the Department is

requiring the applicant to include as part of Exhibit 4 information

about the environmental condition of the proposed site. An adjustment

was made to take into consideration the additional time and cost that

will be incurred by the applicant to inspect the proposed site for this

purpose. Also, an adjustment was made to the burden hour time

associated with Form HUD-92013E, Supplemental Application Processing

Form--Housing for the Elderly, to comply with OMB's conditions for

approval. However, these adjustments (increases) are offset by the

reduction of burden hour time associated with the elimination of the

financial documents.

It should be noted that many professionals work on a retainer basis

and if the application does not obtain HUD approval, they do not

collect a fee. The figures presented above are based on our own

experience, as well as [[Page 29677]] consultation with housing

professionals in the field.

12. Although for Fiscal Year 1994 HUD received approximately 500

Section 202 applications, it is anticipated that because the Department

has further simplified the application submission requirements coupled

with the fact that the program provides capital advances in lieu of

loans, the number of applicants will increase beyond the Fiscal Year

1994 level. It is anticipated that the level of activity will average

600 applications annually over the next three years. Although the

program funding cycle is on an annual basis, each prospective applicant

could submit more than one application. However, our estimate of time

involved in based on one application per applicant.

To assist the applicant in putting together an Application for a

Fund Reservation, the Department developed an Application Package

consisting of the information, forms and materials needed by the

applicant to assemble an application. The HUD Application Package,

which will be made available to all applicants, is expected to aid in

reducing the applicant's and housing consultant's time and effort in

putting together an application.

Given the above and using the categories presented in the

illustration in Item 11(b) above, the estimated amount of hours

involved in developing a complete application submission is as follows:

------------------------------------------------------------------------

Hours

------------------------------------------------------------------------

Housing consultant............................................ 27.3

Attorney...................................................... 2.0

Applicant (sponsor)........................................... 12.0

---------

Total................................................... 41.3

------------------------------------------------------------------------

These figures are based on HUD's experience, as well as

consultation with housing professionals in the field.

This reflects a slight decrease (1 hour) from the previous OMB

submission (from 42.3 to 41.3 hours). This represents the net result of

adjusting the burden time associated with Form HUD-92013E, the exhibit

regarding project information to include an environmental review of the

site by the applicant and the elimination of the applicant's financial

documents.

A Tabulation of Annual Reporting Burden is shown in Table 1. It

should be noted that Exhibits 4, 6, 9 and 10 already have OMB

clearances as shown in the Table. These information collections are

common to many of our programs and our request for clearance was

calculated to include the burden associated for all program uses. The

burden shown in Table 1 for Exhibits 4, 6, 9 and 10, therefore,

reflects our estimate applicable to the Section 202 program. No

adjustment to the previously cleared Exhibits 4, 6, 9 and 10 is

required.

13. The primary reduction of 6,377 in the total burden hours (from

28,877 to 22,500) is due to a change in information requested in the

application, specifically, the elimination of the financial documents,

and a decrease in the number of applicants (from 788 to 600) expected

to submit applications this fiscal year. A minor adjustment to the

applicant's burden time (associated with Exhibit 4) was made to include

the additional time an applicant will need to perform an environmental

inspection of the proposed site. In the past, most applicants would

generally inspect the site to determine its acceptability for

developing a project for the elderly, which included inspecting it for

potential environmental problems. However, because the Department is

specifically requiring that an environmental inspection be performed,

we have adjusted the applicant's burden time to include this function.

An adjustment also was made to Form HUD-92013E to provide for the 8

hour burden time as reported in the disclosure statement on the form.

However, in view of the elimination of the financial documents and the

decrease in applicant participation, the net result is a reduction in

total burden hours.

15. Not applicable.

B. Collections of Information Employing Statistical Methods.

Not applicable.

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[FR Doc. 95-13603 Filed 6-2-95; 8:45 am]

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