Previous Participation Certification-form HUD 2530 (Only required if agent for the property is changing.) The Guide, in addition to elaborating upon terms and provisions in the proposed rule, also addresses “flags,” which are not addressed in either the existing regulations or proposed regulations. The public comment period on the proposed rule closed on October 9, Start Printed Page 304962015, and HUD received 33 sets of public comments. endobj HUD Office of Housing Counseling HUD Approved Housing Counseling Agencies. Attach an organization chart. On August 10, 2015, HUD published in the Federal Register, a proposed rule that would revise HUD's regulations for reviewing the previous participation of Federal programs of certain participants seeking to take part in multifamily housing and healthcare programs administered by HUD's Office of Housing. HUD sponsors housing counseling agencies throughout the country that can provide advice on buying a home, renting, defaults, foreclosures, and credit issues. Supplemental notice of proposed rulemaking. Consolidated Certifications are the following forms: HUD 90013-ORCF, Consolidated Certification-Borrower, HUD 90014-ORCF, Consolidated Certification-Principal of the Borrower, HUD 90015-ORCF, Consolidated Certification-Operator, HUD 90017-ORCF, Consolidated Certification-Management Agent, and HUD 90018-ORCF, Consolidated Certification-General Contractor. 01/14/2021, 327 Aaron Hutchinson, Office of Housing, Department of Housing and Urban Development, 451 7th Street SW., Room 6178, Washington, DC 20410; telephone number 202-708-3994 (this is not a toll- free number). 1 0 obj on Controlling Participants are those entities and individuals (i) serving as a Specified Capacity with respect to a Covered Project and (ii) the entities and individuals in control of the Specified Capacities. At least one natural person must be identified as a Controlling Participant for each Specified Capacity. Therefore, Government agencies and Instrumentalities of Government are not reflected on this Nonprofit Roster unless the entities are also a nonprofit organization. HUD strongly encourages commenters to submit comments electronically. Most recent REAC score is below 60, and additional (does not need to be consecutive) REAC score(s) below 60 over the past five years. The Public Inspection page may also Linda Barriga 817.978.5945 Linda.A.Barriga@hud.gov. Commenters should follow the instructions provided on that site to submit comments electronically. To receive consideration as public comments, comments must be submitted through one of the two methods specified above. General Contractor Performance—One Year Warranty, Failure to correct material warranty issues identified in HUD's Nine-Month and 12-Month Warranty Inspections (After Construction Period), Automatically Flagged when the Annual Financial Statements are overdue. Anyone on an organizational chart that is debarred, suspended, or is subject to a Limited Denial of Participation (LDP), a voluntary abstention or a voluntary exclusion may not participate in the Covered Project. Members of a Board of Directors. 2016-11346 Filed 5-16-16; 8:45 am], updated on 4:15 PM on Thursday, January 14, 2021, updated on 8:45 AM on Friday, January 15, 2021. These markup elements allow the user to see how the document follows the All organization charts submitted in connection with a Triggering Event are considered part of the application for HUD review and subject to the certifications stating that the application is true and complete. Removed when the most recent REAC score is above 59. While every effort has been made to ensure that The Status of the Loan must be listed in Column 4. See Chapter 3 of the APPS Userguide for specific instructions and screen shots: Step 4: Complete the Certification and Submit to HUD. Director, Office of Hospital Facilities or Delegate. The controlling owners (entities and/or individuals) of the entity that controls the Specified Capacity. Procced to Step 2 – HUD Secure Systems Registration. With respect to projects under the Section 232 program, the nursing home administrator of nursing homes and equivalent positions in assisted living facilities are excluded. The participant should assure that compliance with the certification is met. To register your organization: 1. Violation of Business Agreements-Repeated Failure to File Financial Statements, Repeated Failure to File Financial Statements for three or more occurrences, Violation of Business Agreements-Conversion to Unapproved Use, Project was converted to a use that is not permitted under the program obligations, Violation of Business Agreements-Unauthorized Alteration to Facility, Project or part of the project completed a significant addition/alteration/construction/licensure status without prior approval, Violation of Business Agreements-Repeated Unresolved Audit Findings. electronic version on GPO’s govinfo.gov. Any officers and other executive management (including Executive Director and other similar capacities) of the Specified Capacity. If an entity's organizational documents specify which members, partners or owners are authorized to exercise day-to-day control of that entity, then any other members, partners or owners who are not authorized to exercise state day-to-day control of an entity are excluded. Content updated January 6, 2018 : U.S. Department of Housing and Urban Development 451 7th Street S.W., Washington, DC 20410 Telephone: (202) 708-1112 TTY: (202) 708-1455 If there is a certification that a controlling participant cannot certify to, the participant must strikethrough that particular certification, initial the strikethrough and attach a signed letter of explanation. rendition of the daily Federal Register on FederalRegister.gov does not Principal Deputy Assistant Secretary for Housing. As part of the Previous Participation Certification, participants are only required to list all projects which they have participated in over the previous 10 year period. 4. These tools are designed to help you understand the official document Removed when there is a one-year period of time in which borrower has made all mortgage payments by the fifteenth of each respective month, or five (5) years after the placement date of the flag, whichever is sooner. On August 10, 2015, at 80 FR 47874, HUD published a document that proposed to amend its regulations, at 24 CFR part 200, subpart H, that govern the process by which HUD reviews the previous participation and performance of applicants seeking to participate in HUD's multifamily and healthcare programs. Start Printed Page 30498Notwithstanding the foregoing or anything else in this Guide, if HUD determines that an individual or entity does not actually exercise financial or operational control of a Covered Project or Specified Capacity, such individual or entity shall not be considered a Controlling Participant. For example, if a Borrower LLC's managing member (“MM A”) is a joint venture partnership (“JV B”) of two entities (“P 1” and “P 2”) and that joint venture's organizational documents indicate that the day-to-day control of the joint venture is exercised by one of the two partners (P 1), then all of those entities, except P 1 is excluded. Shows percentages of ownership and role in the entity (e.g. Syndicator and direct investor entities in Low-Income Housing Tax Credits, Historic Tax Credits, New Markets Tax Credits or other tax credits (if HUD determines such credits are substantially similar to the listed tax credits) are excluded unless such entities exercise day-to-day control or seek other involvement that would trigger the need for previous participation review. Finally, the definition would provide that any information collection in connection with review of previous participation must follow all applicable requirements for information collection. Tier 2 flags warrant consideration for an extended period of time when reviewing Controlling Participants for their participation in Triggering Events, even after the underlying reason for the flag is resolved. Learn more here. Please see the below table for the officials responsible for rendering reconsideration decisions applicable to each program area. No Facsimile Comments. Retained for five (5) years after the placement date of the flag. If there are no flags in the system and the applicant is able to make all the certifications or HUD has approved any reason why a certification cannot be made, the Previous Participation Review is considered complete and the submission will be approved. The Commissioner's review of Previous Participation shall consider compliance with applicable statutes, regulations and program requirements. provide legal notice to the public or judicial notice to the courts. See Section B for a description of what the organization chart must include. Public Inspection of Public Comments. See Chapter 2 of the APPS Userguide for specific instructions and screen shots: This step creates a submission for a Controlling Participant's role in a specific project. This PDF is The following chart indicates which filing options are available for which programs. To apply for an Standard User ID, fill out the form below and click Send when you are through. Currently, all principals seeking to participate in HUD's multifamily housing and healthcare programs must certify that all principals involved in a proposed project have acted responsibly and have honored their legal, financial, and contractual obligations in their previous participation in HUD programs, in certain programs administered by the U.S. Department of Agriculture, and in projects assisted or insured by state and local government housing finance agencies. Include all previous participation from the past 10 years in: (a) Covered Projects, (b) housing projects with current flags under the U.S. Department of Agriculture's previous participation review system and (c) any other housing project participating in a federal, state or local or government program if during the Controlling Participant's participation in the housing project (i) the housing project was foreclosed upon; (ii) the housing project was transferred by a deed in lieu of foreclosure; or (iii) an event of default, or similarly termed event, was declared against the housing project or the Controlling Participant pursuant to the government program's project documents. Mortgage assigned title or conveyed property to HUD, Foreclosure, loan sale, or other property disposition effort by HUD, HUD receives a deed in lieu of foreclosure, Limited Denial of Participation (LDP)—Current or Past, Participant is currently or has previously been placed on the LDP list, Participant is currently or has previously been placed on the Debarment list or the participant is or was temporarily suspended from participation in HUD programs, Voluntary Abstention or Exclusion—Current or Past, Participant is currently or has previously been subject to a voluntary abstention, Conviction for fraud or embezzlement of funds, Participant has been convicted of fraud or embezzlement of funds. See the APPS Quick Tips for detailed instructions on the registration process: This step establishes the organization structure and previous participation of Controlling Participants. 2. Retained for five (5) years after placement of the flag, so long as the most recent REAC score is greater than 59 or the failure to maintain decent, safe and sanitary housing is deemed cured by HUD. 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. None of MM A, JV B or P 2 are Controlling Participants of the Borrower. With respect to non-profit Borrowers under the Section 242 program, the executive management of the Borrower and the members of the Board of Directors that HUD determines have control over the finances or operation of the hospital. ������Y,��N&��"�]K��WA��"�`�XeD��/=����>sG q�`��ѡ���YtX���e�b$�{Z�짏S��G�o�u��|5�LEs�%S?1�l��y���Y�Y��-r�|��r8d�髭�g!�"E�o�@�%�Q� ���JƁ���&��w�J١��:�י�Γ�pR&i��O�?Nј1ܨ�5���DrtC����+�^�UĹy�����_˫�H���P^�n��Wp�X�>~�NK$3[�}���xbz�n�e ��@�| k w��[���N���1α�1\a��pw�ce�pw66f'5�p$���:�LKs��̇X�$�yga�%r��*w˜=����-q]�iJ�{F�S�F��D-�-QT�P documents in the last year, 236 HUD-27054E eLOCCS Access Authorization FormNote: Grantees should maintain copies of this form for their own re… EIV, FASSUB, PASS support, HUD Flag consulting, HUD Secure System specialists. documents in the last year, 72 HUD will notify participants in writing when flags are placed. However, the user needs a Secure Systems ID in order to complete the HUD 27054E form and registration. �J|���Ϧ�Q�|��Oq:V����~��ђ�7�ZKN This feature is not available for this document. and services, go to A. This repetition of headings to form internal navigation links This may include any officers, directors or members of an executive management team (even of excluded entities) who would otherwise not be required to make a submission if they are exercising control over the Specified Capacity. There are two methods for submitting public comments. The Public Inspection page Failure to Provide or Comply with Action Plan. Authorized person(s) may sign on behalf of other person(s) or entities. If the applicant or Mortgagee has any reason to believe that any Controlling Participant is not of sound mind or body or is otherwise incapacitated, such information must be disclosed to HUD to review and determine whether another individual is acting as a Controlling Participant. offers a preview of documents scheduled to appear in the next day's The President of the United States communicates information on holidays, commemorations, special observances, trade, and policy through Proclamations. This document has been published in the Federal Register. At least one natural person, and not just entities. We will work with you on the submittal on a case by case basis. Any other person or entity determined by HUD to exercise day-to-day control over a Specified Capacity. If a recommendation for rejection is proposed, HUD staff will notify the participant, or lender, if applicable, in advance of the recommendation. If the “yes” box is checked a detailed explanation of the circumstances (including mitigating factors) must be provided. documents in the last year, by the International Trade Commission The Grantees (all new or reinstated user who need to access eLOCCS) need to complete the LOCCS HUD-27054E form, have it notarized, send the The commenters were from real estate organizations, affordable housing nonprofit organizations, consulting firms, non-profit organizations, and law firms. Entities that do not take actions themselves but only serve as legal vehicles through which the partners, members or owners of such entity take actions are excluded. However, HUD reserves the right to review and consider a participant's previous participation in a federal project beyond the 10 year period when determining whether to approve participation in the project associated with an application. HUD 2530 regulatory & APPS submission experts. One of the longstanding complaints about HUD's previous participation review process is that the process and the regulations that govern the process are very outdated and do not keep up with the times. 2. It is the signer's responsibility to assure that they are authorized to sign on behalf of others. A flag does not automatically exclude an applicant from participation in HUD's programs; however, flags are considered risk factors that require appropriate mitigation, where possible. documents in the last year, 794 If the following screen is displayed stating that the Participant (TIN) had been processed, the organization’s TIN is already registered in SECURE SYSTEMS. Organization charts are visual representations of the ownership structure of an organization. o Submitted through APPS with signature pages mailed to HUD –or- o Paper 2530 submitted to HUD project manager 3-3 Business Registry o Any new participant doing business with HUD must register in the Business Registry HUD will disapprove a Controlling Participant if the Controlling Participant is suspended, debarred or subject to other restriction pursuant to 2 CFR part 180 or 2 CFR part 2424. See Chapter 7 of the APPS Userguide for specific instructions and screen shots: Step 5: Upload the Organization Chart with the Signature Pages. Wholly-owned entities. More information and documentation can be found in our Each Controlling Participant must be registered in the BPRS System. These can be useful Shell entities. This is Step 5 in the Step-By-Step Instructions: https://hudapps2.hud.gov/apps/part_reg/apps040.cfm. HUD would further provide that at the FHA Commissioner's discretion, as necessary to determine financial or operating risk and to the extent the FHA Commissioner determines such information to be reliably available, the FHA Commissioner may consider the Controlling Participant's participation and performance in any federal, state or local government program. has no substantive legal effect. }�m��Բ|��K��ww�A�$�JNjo& ���b�������^�~���tʒ�#�f:a���%q����=�ｹ��{u�Oc�����=��Y��E.�N�8��b�ޞkv��1�-������ޯ#��]�}�F���;�e�X�'�%O)�*.� �R��X�u����b98_���L�!Z2�3�u8 !�c�� �CV%�]\�:��6 �L����48�_G��0��;���C$F����� For insured projects, if applicable, the person (people) and/or entity (entities) to be listed on the Regulatory Agreement Non-Recourse Debt section. 4. Reference the registration link for registration instructions to Secure Systems and HUD-27054E form. All principals listed in Block 7 must be listed in Column 1. ATTENTION: This computer system, and all the systems associated with this system for User Authorization and Authentication, are protected by a computer security system; unauthorized access to these systems is not permitted; and usage may be monitored. documents in the last year, 658 HUD would further revise the policy language in § 200.210 to advise that the regulations in 24 CFR part 200, subpart H, as proposed to be amended by the August 10, 2015, proposed rule would be supplemented by the Processing Guide for Previous Participation Reviews of Prospective Multifamily Housing and Healthcare Programs' Participants (Guide), which would be made available on HUD's Web site at www.hud.gov. Attach an organization chart with Social Security Numbers or Tax ID numbers for Controlling Participants. Keyword Research: People who searched hudapps2.hud.gov also searched 2. 01/14/2021, 42 Removed when the unauthorized distribution is repaid or five (5) years after the placement date of the flag whichever is sooner. See Section B for a description of what the organization chart must include. Program offices may waive any portion of this Guide that is not regulatory subject, however, to a good cause justification as required by HUD for all waivers. 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 20410-0001. daily Federal Register on FederalRegister.gov will remain an unofficial This document opens the public comment period solely for the provisions addressed in this document to address concerns that while the proposed rule provided greater flexibility, it lacked the greater certainty to which HUD committed, and how HUD would provide such certainty. Through this document, HUD proposes to use an approach that HUD has taken in certain of its other regulations and that is to provide regulations that clearly document the regulatory requirements imposed, but provide in a supplemental document, a document referenced in the regulations, that will address the specific procedures to be followed. on Here is a link: https://hudapps2.hud.gov/ apps/ part_ reg/ apps040.cfm. 14. Federal Register issue. 3. Whether an Identity of Interest or other conflict of interest exists is determined by HUD. Be sure to leave feedback using the 'Feedback' button on the bottom right of each page! <>/ExtGState<>/XObject<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/Annots[ 24 0 R] /MediaBox[ 0 0 612 792] /Contents 4 0 R/Group<>/Tabs/S/StructParents 0>> Participants with Previous Participation must complete Attachment 1 of the Consolidated Certification for projects participated in over the past 10 years. The President of the United States manages the operations of the Executive branch of Government through Executive orders. 3 0 obj HUD submits that a lean set of regulations supplemented by a detailed processing Guide that is subject to notice and comment for any significant changes is the best approach for this process and one that will endure successfully for some time. Go to https://hudapps2.hud.gov/apps/part_reg/apps040.cfm 2. Again, all submissions must refer to the docket number and title of the document. For real estate investment trusts (REITs), the REIT itself, the chief executive officer (or equivalent position) and all company officers (except those officers determined by HUD not to exercise day-to-day control over the REIT, the Specified Capacity or the Covered Project) must file. Unless exercising control through another capacity, members, partners, stakeholders and owners of entities with less than a 25% interest in an entity are excluded. Please do not submit any RACs until this step is completed. that agencies use to create their documents. The organization chart must include the following: 1. This Guide updates and clarifies previous procedures and supersedes outstanding policy and guidance concerning previous participation review found in the following: Multifamily Accelerated Processing (MAP) Guide Handbook 4430.G, Multifamily Asset Management and Project Servicing Handbook 4350.1, Healthcare Mortgage Insurance Program Handbook 4232.1, and Mortgage Insurance for Hospitals 4615.1. Overall the commenters were very supportive and appreciative of HUD's efforts to reform the regulations. Complete HUD’s Business Partner Registration at: https://hudapps2.hud.gov/apps/part_reg/apps040.cfm Once these steps are completed, please contact Jenny DeSilva at Blueprint Housing Solutions to begin training and instituting the following HUD Systems programs into your processes: • HUD Systems Clearly show all tiers of the ownership structure, including the members or owners of the entities listed. In lieu of disapproval, HUD may (1) condition or limit the Controlling Participant's participation; (2) temporarily withhold issuing a determination in order to gather more necessary information; or (3) require the Controlling Participant to remedy or mitigate outstanding violations of HUD requirements to the Commissioner's satisfaction in order to participate in the Triggering Event. 7. 01/14/2021, 198 HUD may disapprove a Controlling Participant if HUD determines: (i) The Controlling Participant is materially restricted, including voluntarily, from doing business with HUD (other than the restrictions listed above) or any other Start Printed Page 30501department or agency of the federal government if the Commissioner determines that such restriction demonstrates a significant risk to proceeding with the Triggering Event; or (ii) HUD determines that the Controlling Participant's record of Previous Participation reveals significant risk to proceeding with the Triggering Event. 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