Icr 2502-dh

Paperwork Reduction Act Submission

Please read the instruction before completing this form. For additional forms or assistance in completing this forms, contact your agency’s Paperwork Reduction Officer. Send two copies of this form, the collection instrument to be reviewed, the Supporting Statement, and any additional documentation to: Office of Information and Regulatory Affairs, Office of Management and Budget, Docket Library, Room 10102, 725 Seventeenth St. NW, Washington, DC 20503.

1. Agency/Subagency Originating Request: U.S. Department of Housing and Urban Development Office of Housing, Single Family Asset Management Division		2. OMB Control Number: a.	b.   None 2502
3. Type of information collection: (check one) New Collection Revision of a currently approved collection Extension of a currently approved collection Reinstatement, without change, of previously approved collection for which approval has expired Reinstatement, with change, of previously approved collection for which approval has expired Existing collection in use without an OMB control number For b-f, note item A2 of Supporting Statement instructions.	4. Type of review requested: (check one) Regular Emergency - Approval requested by Delegated 5. Small entities: Will this information collection have a significant economic impact on a substantial number of small entities? Yes No 6. Requested expiration date: a. Three years from approval date b. Other (specify)

7. Title:

HUD-Owned Real Estate – Dollar Home Sales Program

8. Agency form number(s): (if applicable)

None

9. Keywords:

Housing, Real property disposition, Single Family; Dollar Home

10. Abstract: The information provided is for the Department’s program that offers single family properties to local governments for one dollar and to Community Development Corporations (CDCs) on a cost recovery basis. Information collected will be used in binding contracts between the purchaser and HUD. The respondents are purchasers of HUD-owned properties: community development corporations and governmental entities.

11. Affected public: (mark primary with “P” and all others that apply with “X”) a. Individuals or households e.   Farms b.   Business or other for-profit f.   Federal Government c.P Not-for-profit institutions g.P State, Local or Tribal Government		12. Obligation to respond: (mark primary with “P” and all others that apply with “X”) a. Voluntary b. Required to obtain or retain benefits (P) c.  P Mandatory
13. Annual reporting and recordkeeping hour burden: a. Number of respondents 56 b. Total annual responses 875 Percentage of these responses collected electronically 0% c. Total annual hours requested 783 d. Current OMB inventory 0 e. Difference (+,-) +783 f. Explanation of difference: 1. Program change: +783 2. Adjustment:		14. Annual reporting and recordkeeping cost burden: (in thousands of dollars) Do not include costs based on the hours in item 13. a. Total annualized capital/startup costs b. Total annual costs (O&M) c. Total annualized cost requested d. Total annual cost requested e. Current OMB inventory f. Explanation of difference: 1. Program change: 2. Adjustment:
15. Purpose of Information collection: (mark primary with “P” and all others that apply with “X”) a. P Application for benefits e. X Program planning or management b. P Program evaluation f.   Research c.   General purpose statistics g. P Regulatory or compliance d.   Audit		16. Frequency of recordkeeping or reporting: (check all that apply) a. Record keeping b. Third party disclosure c. Reporting: 1. On occasion 2. Weekly 3. Monthly 4. Quarterly 5. Semi-annually 6. Annually 7. Biennially 8. Other (describe)
17. Statistical methods: Does this information collection employ statistical methods? Yes No	18. Agency contact: (person who can best answer questions regarding the content of this submission) Name: James C. Everett Phone: (202) 708-1672 x2133

19. Certification for Paperwork Reduction Act Submissions

On behalf of the U.S. Department of Housing and Urban Development, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9.

Note: The text of 5 CFR 1320.9, and the related provisions of 5 CFR 1320/8(b)(3) appears at the end of the instructions. The certification is to be made with reference to those regulatory provisions as set forth in the instructions.

The following is a summary of the topics, regarding the proposed collections of information that the certification covers:

1. It is necessary for the proper performance of agency functions;

2. It avoids unnecessary duplication;

3. It reduces burden on small entities;

4. It uses plain, coherent, and unambiguous terminology that is understandable to respondents;

5. Its implementation will be consistent and compatible with current reporting and recordkeeping practices;

6. It indicates the retention periods for recordkeeping requirements;

7. It informs respondents of the information called for under 5 CFR 1320.8(b)(3):

1. Why the information is being collected;

2. Use of the information;

3. Burden estimate;

4. Nature of response (voluntary, required for a benefit, or mandatory);

5. Nature and extent of confidentiality; and

6. Need to display currently valid OMB control number;

(h) It was developed by an office that has planned and allocated resources for the efficient and effective management and use of the information to collected (see note in item 19 of the instructions);

(i) It uses effective and efficient statistical survey methodology; and

(j) It makes appropriate use of information technology.

If you are unable to certify compliance with any of these provisions, identify the item below and explain the reason in item 18 of the Supporting Statement.

     

Signature of Program Official: X Michael E. Winiarski, Dep. Director, Organizational Policy, Planning and Analysis Division, HROA

Date:

Supporting Statement to Paperwork Reduction Act Submission

HUD-Owned Real Estate – Dollar Home Sales Program

A. JUSTIFICATION

1. The National Housing Act (P.L. 479, 48 Stat., 1246, 12 U.S.C., 1701 et seq.) authorizes the Secretary of Housing and Urban Development to deal with, complete, rent, renovate, modernize, insure, or sell for cash or credit, at his/her discretion, any properties conveyed to the Department under contracts of mortgage insurance. Regulations regarding the disposition of acquired properties by sale are contained in 24 CFR Part 291, Disposition of HUD-Acquired Single Family Property. Section 291.90 (a)-(e) prescribes sales methods and (e) notes that HUD may select any other methods of sale, as determined by the Secretary.

Within the general property disposition program, the Department may also dispose of properties through special programs targeting market groups or policy goals. The “$1 HOME Sales to Local Governments Program” was implemented by administrative directive HN-00-07, pursuant to the authority at 12 U.S.C. 1710(g).

Initial regulations for the program are being prepared pursuant to specific statutory authority at Disposition of HUD-Owned Properties, 12 U.S.C. 1715z-11a which offers these properties to Units of General Local Government for one dollar or to Community Development Corporations (CDCs) on a cost recovery basis.

The information collection items in this request were previously approved under OMB Control No. 2502-0306, Single Family Property Disposition and Acquisition (Conveyance) of Mortgaged properties. This collection of information is needed in the implementation of the Dollar Home Sales Program. This is a request for a new collection to disaggregate the information collection requirements of the sales contracts and addenda (OMB Control No. 2502-0306). The sales contracts and addenda however, will be used in binding contracts between a purchaser of an acquired single-family asset and HUD pursuant to this specific program.

2. The program promotes the sale of properties that have been in inventory and available for sale for at least 6 months. The sale of these properties under this program makes it possible for local governments to rehabilitate the homes and make them available as low and moderate-income housing at a considerable savings. The newly occupied homes can then act as catalysts for neighborhood revitalization, attracting new residents and businesses to an area. The information collections contained in this clearance request deal only with the Dollar Home Sales Program. That program offers single family properties to local governments for one dollar plus closing costs and to CDCs on a cost recovery basis. Listed below are the information collections associated with the Dollar Home Sales program and a description of their purposes.

Certification of occupancy. A unit of local government and CDC must certify that the property is not occupied.

Written expression of interest. A unit of local government and CDC will submit a written expression of interest. .

Sales contract and addendum. Local governments and CDCs must (1) identify to HUD the intended disposition strategy(ies) and clear public purpose goals and objectives that will be pursued with properties purchased through this program; (2) affirm that all profits from resales of these Dollar Homes will go to support local housing/community development initiatives; (3) identify what specific programs or uses any profits will support; and (4) agree to provide HUD with annual reports for all properties purchased under this program.

Identification of Agent. A local government may identify an agency of government such as a housing authority to act as its agent to purchase Dollar Homes.

Recordkeeping sufficient to provide HUD with the required annual report.

Annual Report. Organizations participating in the Dollar Home Sales Program must provide HUD with an annual report on all properties purchased under the program. The report includes information on profits on resale; uses made of the resale profits; and the person or entity that purchased each property.

Annual Audit. Organizations participating in the program are subject to an annual audit.

3. The information is not collected electronically. Sales contracts, addendums, Dollar Home documentation, and other documents requiring original signatures will be submitted to HUD in hard copy.

4. The Single Family Property Disposition Dollar Home Sales Program is the only HUD program that sells single-family acquired properties to local government entities or their agents. Therefore, the information collected is unique to this program. The Dollar Home Sales Program is a stand-alone program, and the information collected is not duplicative.

4. The information collected does not have a significant economic impact on a substantial number of small “entities” – which includes small organization or small governmental jurisdiction. The Dollar Home Sales program will be operated through the HUD Homes web site. Local governments will not use a broker to submit a bid; they will work with the M&M contractor directly. Expression of interest, recordkeeping and reporting will be of minor impact.

4. Information collected and the audit requirement is the minimum needed to implement the Dollar Home Sales Program using appropriate management control tools to protect against fraud and abuse. Upon purchase, the governmental entity and CDC purchaser will execute a sales contract addendum which: (1) identifies the intended disposition strategies and public purpose goals and objectives to be pursued with properties purchased through this program; (2) identifies the specific programs or uses that resale profits will support; and (3) requires the purchaser to provide HUD with an annual report on all properties purchased under this program, including information on the amount of profit realized on resale, the use of the profit, and the person or entity that purchased the property on resale. These requirements will be backed up by the imposition of sanctions as defined in 291.640 Enforcement.

4. There are no special circumstances involved in this collection.

4. In accordance with 5 CFR 1320.8(d), HUD published a notice soliciting public comments in the Federal Register on November 2, 2006 page 64549 Vol. 71 No. 212. No comments were received.

4. Other than remuneration of contractors and sales commission payments to brokers submitting selected offers, no gift or other type payments are made to the respondents.

4. These information collections take into consideration the need to assure data confidentiality and provide adequate Privacy Act Notice statements where needed.

4. This information collection does not contain any questions of a sensitive nature.

4. The following are the estimates of the burden hours of the collection of information.

Information Collection	Number of Respondents	Frequency of Response (Averages)	Total Annual Responses	Hours per Response	Total Annual Hours	Cost per Hour	Total Annual Cost
Dollar Home Sales Program
Written Expression of Interest	56	2.23	125	0.25	32	$25	800
Sales Contract		2.23	125	0.5	63	$25	$1,575
Addendum		2.23	125	0.5	63	$25	1,575
Recordkeeping		2.23	125	1.0	125	$25	3,125
Certification of occupancy		2.23	125	1.0	125	$25	3,125
Annual Report		2.23	125	1.0	125	$25	3,125
Annual Audit		2.23	125	2.0	250	$25	6,250
Totals	56		875		783		$19,575

Assumptions:

• Annual Dollar Home sales averaged 125 properties among 56 different entities during the 2003-2006 periods.

4. There are no additional costs to the respondents.

4. Cost to the Federal Government.

Information Collection	Total Annual Responses	Review / Completion by HUD Staff	Hours per Response	Total Annual Hours	Cost per Hour	Total Annual Cost
Dollar Home Sales Program Forms
Required notifications / posting on web/ designation of agent	125	125	0.2	25	$26	650
Annual Report	125	125	0.5	63	$26	1,638
Audit Report	125	125	0.5	63	$26	1,638
Totals	475	475		151	$26	$3,926

4. This is a request for a new information collection. This results in an increase of 56 respondents, 875 responses, and 783 burden hours to government and respondent.

4. These collections of information do not include results that will be published.

4. HUD is not seeking to display the expiration date for OMB approval of this information collection.

4. There are no exceptions to the certification statement.

B. COLLECTION OF INFORMATION EMPLOYING STATISTICAL METHODS.

No statistical methods are employed in the collection of this information.

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OMB 83-I 10/95