Only official editions of the 3. The OFR/GPO partnership is committed to presenting accurate and reliable Document Drafting Handbook The following chart indicates which filing options are available for which programs. Attach an organization chart. Use the PDF linked in the document sidebar for the official electronic format. Removed when the unauthorized distribution is repaid or five (5) years after the placement date of the flag whichever is sooner. Due to security measures at the HUD Headquarters building, an advance appointment to review the public comments must be scheduled by calling the Regulations Division at 202-708-3055 (this is not a toll-free number). This page should refresh momentarily. See Section B for a description of what the organization chart must include. Violation of Business Agreements-Material Unresolved Audit Findings. These tools are designed to help you understand the official document edition of the Federal Register. Until further notice, if using the paper Form HUD-2530, use these instructions. 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. documents in the last year, 29 HUD 2530 regulatory & APPS submission experts. This table of contents is a navigational tool, processed from the Interest reduction payments under section 236 of the National Housing Act (, Rental Assistance Payments under section 236 of the National Housing Act (. This Guide applies to Covered Projects administered by the Office of Multifamily Housing, the Office of Grant Administration and the Office of Healthcare Programs, as listed in HUD's regulations in 24 CFR part 200 subpart H. The Covered Projects are those that are insured under the following sections of the National Housing Act: Sections 213, 220, 231, 223(d), 221(d)(4), 241(a), 223(f), 232/223(f), 242/223(f), 223(a)(7), 232, 232(i), 242, 542(b) and 542(c). The public comment period on the proposed rule closed on October 9, Start Printed Page 304962015, and HUD received 33 sets of public comments. Any individual or entity determined by HUD not to exercise financial or operational control of a Covered Project or Specified Capacity shall not be considered a Controlling Participant. In addition, HUD would provide that the FHA Commissioner may exclude any previous participation the FHA Commissioner determines to be irrelevant in evaluating risk and/or any previous participation in which the Controlling Participant did not exercise, actually or constructively, control. At least one natural person must be identified as a Controlling Participant for each Specified Capacity. 8. Nursing Homes and Assisted Living Facilities. Violation of Business Agreements-Unacceptable Physical Condition, Below 30 Real Estate Assessment Center (REAC) score, two consecutive REAC scores below 60, Repeated REAC scores below 60, or other Repeated failures to maintain decent, safe and sanitary conditions. documents in the last year, 988 Tier 1 flags are elevated risk to HUD. This situation should be rare. The participant should assure that compliance with the certification is met. The appendix to this document provides the proposed Guide for which HUD is seeking public comment for a period of 30 days. 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 Tier 3 flags relate to a single and/or less serious incident of non-compliance and can be resolved and removed. HUD would advise that the Guide elaborates on the basic procedures involved in the previous participation review process. A Proposed Rule by the Housing and Urban Development Department on 05/17/2016. Removed when the action plan is received and in good standing or five (5) years after the placement date of the flag whichever is sooner. All principals listed in Block 7 must be listed in Column 1. 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. Minor officers. In this step Controlling Participants electronically certify to previous participation certifications and send the submission to HUD for review. Again, all submissions must refer to the docket number and title of the document. List the latest Management Review and Physical Inspection dates and scores in Column 6. HUD Office of Housing Counseling HUD Approved Housing Counseling Agencies. offers a preview of documents scheduled to appear in the next day's 2. In addition to issuance of the proposed Guide for comment, HUD also seeks comment on the following additional provisions that are proposed to be included or revised in the regulation. New Documents This situation should be rare. Note: This section is not applicable for General Contractors that did not have ownership interest in the project. HUD considers Tier 1 flags to be a significant long-term risk to HUD and warrant significant mitigation in new transactions. 12/01/10: New Guidance for Presidentially Declared Disasters: 11/29/10: Emergency Capital Repair Grants 2010 NOFA announced for eligible multifamily projects owned by private nonprofit entities that are designated for occupancy by elderly tenants. 4 0 obj Participants with Previous Participation must complete Attachment 1 of the Consolidated Certification for projects participated in over the past 10 years. ], Consolidated Certification Completion Instructions, [It is the participant's responsibility to assure that the Consolidated Certification is correct, complete and accurate.]. Tier 1 flags warrant permanent consideration when reviewing Controlling Participants for their participation in triggering events. documents in the last year, 778 Publicly Held Companies. 05/16/2016 at 8:45 am. However, the Guide makes clear that not every entity identified in the organizational chart will be considered a Controlling Participant, as defined in the regulation. on NARA's The Controlling Participants must sign and date the submission. A. Each signature block must include a signature. It is the signer's responsibility to assure that they are authorized to sign on behalf of others. 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. Secure Systems ID Registration 1. Register, and does not replace the official print version or the official This prototype edition of the At least one natural person, and not just entities. The Guide also includes certain information collection requirements but those requirements are ones which are already included in HUD's 2530 form and which already have an approval number assigned by the Office of Management and Budget under the Paperwork Reduction Act. 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. Previous Participation Certification-form HUD 2530 (Only required if agent for the property is changing.) the current document as it appeared on Public Inspection on 1503 & 1507. All submissions must refer to the above docket number and title. Failure to provide or comply with a HUD required action plan and/or certification in a timely manner. The August 10, 2015, proposed rule proposed to clarify which individuals and entities will be reviewed, the purpose of the review, and the review to be undertaken. Commenters suggested that HUD revise the proposed regulations to provide the greater certainty and specificity they need. HUD has made several upgrades to the system to improve the applicant submission process. 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. Therefore, Government agencies and Instrumentalities of Government are not reflected on this Nonprofit Roster unless the entities are also a nonprofit organization. 3 0 obj Show all participants, not just those who the Lender or Applicant considers to be principals or Controlling Participants. The participant should assure that compliance with the certification is met. 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. For example, HUD now allows for electronic signatures of APPS submissions, ability to upload submission packages, and has improved the baseline submission to allow for edits. 9. 4. These can be useful Controlling Participants require Previous Participation Review and must complete Previous Participation Review submissions. Participants may utilize either the electronic Active Partners Performance System (APPS) or a paper alternative. Removed when the most recent REAC score is above 59. 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. If HUD determines that an officer of a corporation or other entity does not have significant involvement in a Covered Project, such officers are excluded. HUD would clarify that the FHA Commissioner must consider the Controlling Participant's Start Printed Page 30497previous financial and operational performance in HUD programs that may indicate a financial or operating risk in approving the Controlling Participant's participation in the subject Triggering Event. The Public Inspection page Submission of Comments by Mail. 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. The Guide also applies to non-insured projects that include Section 202 or Section 811 Capital Advances or Direct Loans, Section 236 loans, or Subsidized Projects in which 20 percent or more of the units now receive or will receive a subsidy in the form of: For the Sections 223(a)(7), 223(f), 241(a), 232(i) and 223(d) programs Controlling Participants are only subject to previous participation review if they were not previously approved to participate in that project. Attach an organization chart with Social Security Numbers or Tax ID numbers for Controlling Participants. 1. 01/14/2021, 392 If you do not know who your Approving Official and authorized LOCCS users are, or if your Approving Official is no longer available, please contact your assigned HUD Financial Analyst for assistance: Gail Avery 817.978.5962 headings within the legal text of Federal Register documents. documents in the last year, 1493 [FR Doc. Register documents. 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. Previous Participation Review is required for Controlling Participants. The flag history in the system to assess patterns of misconduct and risk to the Department. Tier 3 flags are considered a single risk to HUD and will be removed when the reason for the flag is corrected.Start Printed Page 30502. 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. HUD may still require a so-called “LLCI certification,” an “Identification and Certification of Eligible Limited Liability Investor Entities,” “Passive Investor Certification” or any other such certification. 1. Enter your organization’s Tax Identification Number (TIN) and click Submit. No Facsimile Comments. documents in the last year, by the National Park Service include documents scheduled for later issues, at the request documents in the last year, 794 While every effort has been made to ensure that One incident of Unauthorized Distributions. <>/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>> Controlling Participants with No Previous Participation should write “No Previous Participation, First Experience.”, Principal roles must be included in Column 3. This site displays a prototype of a “Web 2.0” version of the daily HUD would further clarify that it will review the prior participation of Controlling Participants, as defined in the August 10, 2015, proposed rule, as a prerequisite to participation in HUD's multifamily housing and healthcare programs listed in § 200.214. the material on is accurately displayed, consistent with 3. Organization charts are visual representations of the ownership structure of an organization. endobj 10. 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. Commenters stated that, in addition to reforms to the regulations, reforms to the review process, additional guidance and training materials were also needed. Wholly-owned entities. 3. 3. Several comments expressed concern that the proposed regulations were overly broad and therefore would be open to various interpretations, which would complicate the review process for applicants and participants rather than simplify the process. HUD would also advise that for any significant changes made to the Guide, HUD would provide advance notice and the opportunity to comment, providing a comment period of no less than 30 days. The RAC, Part I should be submitted with the following components answered: Page 1. Go to 2. We will work with you on the submittal on a case by case basis. To the extent ownership interests are identified as widely held, the Applicant must provide any information requested by HUD regarding such interests. All wholly-owned entities in all tiers are excluded. If the “yes” box is checked a detailed explanation of the circumstances (including mitigating factors) must be provided. If there are current flags in the system, HUD staff will review: Based upon this review, including review of the certifications, HUD will determine whether or not the Controlling Participant poses an unacceptable Risk to the Covered Project, in accordance with the definition in 24 CFR 200.212, namely whether the Controlling Participant could be expected to participate in the Covered Project in a manner consistent with furthering the Department's purpose of supporting and providing decent, safe and affordable housing for the public. legal research should verify their results against an official edition of In addition, the individuals and entities determined by HUD to exercise financial or operational control over these entities are also Controlling Participants. the official SGML-based PDF version on, those relying on it for 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. 14. 1 0 obj Removed when the missing Annual Financial Statements are filed or five (5) years after the placement date of the flag, whichever is sooner. on Facsimile (FAX) comments are not acceptable. All properly submitted comments and communications submitted to HUD will be available for public inspection and copying between 8 a.m. and 5 p.m. weekdays at the above address. The “middle tiers” of an organizational chart are often shell entities. Members of a Board of Directors. When HUD has taken this approach, HUD commits to provide notice and opportunity for comment for any significant changes made to the document. This exclusion does not apply to the members of boards of directors of hospitals, the rule for which is specified in the Regulation and captured in #8 within the Listing of Controlling Participants above. 7. This repetition of headings to form internal navigation links documents in the last year, by the Federal Communications Commission Flags refer to an issue or issues in a prospective participant's application for which further review is necessary. 6 Contract Number, Voucher Month, and Voucher Year MUST be entered for each miscellaneous adjustment. Based on this determination, HUD may approve, disapprove, limit, or otherwise condition the continued participation of the Controlling Participant in the Triggering Event. Director, Office of Asset Management and Portfolio Oversight or Delegate. Copies of all comments submitted are available for inspection and downloading at This exclusion does not apply to any such member, partner, stakeholder or other owner of an entity (“Proposed Excluded Member”) who would have an interest greater than 25% if the combined percentages of all other members, partners, stakeholders or other owners (including beneficial interests in trusts) with whom the Proposed Excluded Member has an “Identity of Interest” or other conflict of interest because of familial relation or common financial interest exceeds 25%. 7. Federal Register issue. The Cities reserve the right to accept all or part of an y proposal, to reject any or all proposals and to re-solicit for proposals. A “Repeated” Offense means there are three or more occurrences. Comments submitted electronically through the Web site can be viewed by other commenters and interested members of the public. Go to 2. None of MM A, JV B or P 2 are Controlling Participants of the Borrower. Controlling Participants. Flags are to be a meaningful representation of risk, and therefore, they should not be placed for minor infractions that do not pose a risk to HUD. These entities are not exercising control, the partners, members or owners of such entity are controlling. 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. Less than 25% ownership interest. 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. documents in the last year, 315 to the courts under 44 U.S.C. If the following screen is displayed stating that the Participant (TIN) had been processed, the organization’s TIN is already registered in SECURE SYSTEMS. 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 comments in the system related to the flag. on 01/14/2021, 198 Supplemental notice of proposed rulemaking. 13. of the issuing agency. If all the officers of the entity certify as to who have significant and insignificant involvement, this certification shall be evidence of the significant and insignificant involvement. should verify the contents of the documents against a final, official It is not an official legal edition of the Federal Controlling Participants on the organization chart must match Block 7. better and aid in comparing the online edition to the print edition. For example, the Guide requires organizational information to be presented in an organizational chart instead of merely listed. Participants may provide support for their reconsideration or additional information that was not previously provided. * Unless otherwise determined by HUD due to mitigating circumstances. 1. Open for Comment, Economic Sanctions & Foreign Assets Control, Notice of Availability of the Record of Decision, Providing an Order of Succession Within the Environmental Protection Agency, Promoting Small Modular Reactors for National Defense and Space Exploration, Department of Housing and Urban Development, II. Interested persons may submit comments electronically through the Federal eRulemaking Portal at rendition of the daily Federal Register on does not For Tier 2 flags that have a resolution date (as listed in the chart below), flags will not be removed until the time period has expired even if the action has been resolved earlier. Inclusion of Applicability of Processing Guide in Regulations, Processing Guide for Previous Participation Reviews of Prospective Multifamily Housing and Healthcare Programs' Participants, Applicability of the Previous Participation Review, A. Retained for five (5) years after the placement date of the flag. 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. In addition to publication in the Federal Register, this document and Guide can be found at​hudportal/​HUD?​src=​/​program_​offices/​housing/​mfh. Officers of a for-profit corporation's Board of Directors. We recently moved this document. the Federal Register. documents in the last year, 236 Organization Chart: Attach an organization chart with Social Security Numbers or Tax ID numbers for Controlling Participants. HUD will not make any significant changes to the Guide without first offering advance notice and the opportunity for comment for a period of not less than 30 days. 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.