Supporting Statement

Supporting Statement for Paperwork Reduction Act Submissions

Application for Mortgage Insurance for Cooperatives and Condominium Housing

2502-0141

(Form HUD-93201)

A. Justification

1. This is a request for extension of information collection 2502-0141, Application for Mortgage Insurance for Cooperatives and Condominium Housing, which includes Form HUD-93201 and supporting exhibits that comprise the basic application package for multifamily projects. The supporting exhibits to Form HUD-93201 are listed in Section L, “Attachments” of that form.

Section 213 of the National Housing Act (12 U.S.C. 1715e) outlines the eligibility requirements for mortgage insurance for cooperatives and condominiums. Regulation 24 CFR Section 213 – Cooperative Housing Mortgage Insurance authorizes the Secretary of HUD to insure mortgages for cooperatives and condominium housing developments.

HUD is required to analyze specific project information including financial data, cost data, and drawings and specifications before determining whether a proposed cooperative or condominium projects are eligible for mortgage insurance.

There has been a small increase in participants. This accounts for the minor increase in burden. HUD is anticipating more future participation.

2. Owners requesting mortgages for cooperatives and condominium housing developments provide financial data, cost data, and drawings and specifications. HUD uses the information to evaluate and determine the general eligibility of the proposed project. HUD technical specialists in appraisal, cost, architecture, and mortgage credit analyze this information to determine if a project is eligible for mortgage insurance. If the information were not collected and analyzed, the Department would have to rely solely on a sponsor’s undocumented request and the Department could expect to sustain substantial losses to the FHA Insurance Fund. This request previously included a burden for recordkeeping. However, recordkeeping for this type of project would be a standard business practice, and no hours are included. Form 93201, Application for Mortgage Insurance, requires a number of supporting exhibits.

3. The collection of information does not involve the use of automation. Due to the low number of respondents and the nature of the information collected, the benefits of automation would not reduce the burden. The form is available on HUDCLIPS as a fillable PDF file.

4. There is no duplication. The Department has avoided duplication of submissions where a project was to be insured and assisted by Section 8. In such cases only one set of documents is required.

5. The collection of information does not involve small businesses or small entities.

6. There would be consequences to the Federal program or policy activities if the information collection were not conducted in the method prescribed. The frequency of the submission is at the time of application for mortgage insurance. However, if the design requirements and/or cost and financial data have been submitted to HUD and then rejected or withdrawn, the information would need to be updated and resubmitted.

7. There are no special circumstances associated with the information collection.

1. 8. Information collected is conducted in a manner consistent with the guidelines of 5 CFR 1320.8(d). The Notice announcing this collection of information appeared in the Federal Register on October 8, 2010, Vol. 75, No. 189, page 60475. … comments received.

9. There are no payments or gifts to respondents.

10. The current information collection does not describe any assurance of confidentiality. This information collection does not ask any information about individuals other than name, address, telephone number, and association with the proposed project. The Privacy Act Statement covers exhibits, which do ask for personal data.

11. The collection does not contain information of a sensitive nature.

12. Annual Burden Estimate:

Information Collection	Number of Respondents	Frequency of Response	Responses per Annum	Burden Hours per Response	Total Annual Burden Hours	Hourly Cost	Total Annual Cost
HUD-93201 & Exhibits	20	1	20	4	80	$20.00	$1,600

Estimated hourly cost is based on an estimated average annual salary of $40,000 for project owner support staff.

13. There are no additional costs to the respondents for the collection of this information.

13. Annual Costs to the Federal Government:

Information Collection	Number of Responses	Hours Per Response	Total Annual Burden	Hourly Cost	Total Annual Cost
HUD-93201	20	1600	900	$41.00	$36,900

Estimated hourly cost is based on the average annual salary of a GS-12,/5 for reviewing the information.

15. This is request for extension of a previously approved information collection. There have been no program changes but a slight increase in participation has resulted in a burden increase.

15. The results of this collection will not be published.

17. HUD is not requesting approval to avoid displaying the expiration date on the form HUD-93201.

18. There are no exceptions.

____________________________________________________________________________________

B. Collection of Information Employing Statistical Methods.

The collection of information employing statistical methods does not apply.