Supporting Statement

Supporting Statement for Paperwork Reduction Act Submissions

Application for Mortgage Insurance for Cooperatives

2502-0141

(Form HUD-93201)

A. Justification

1. This is a request to reinstate 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 Department of Housing and Urban Development (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.

In April 2005, HUD requested, and OMB approved, discontinuation of this collection because there were fewer than 10 respondents per year. HUD now requests reinstatement of this collection because HUD is anticipating more participation due a program change to increase volume.

Owners requesting mortgages for cooperatives 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 Federal Housing

Administration Insurance Fund. Form 93201, Application for Mortgage Insurance, requires several supporting exhibits.

3. The collection of information does not involve the use of the 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 PDF file.

3. 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. Explain any special circumstances that would cause an information collection to be conducted in a manner:

• requiring respondents to report information to the agency more than quarterly;

Not Applicable

• requiring respondents to prepare a written response to a collection of information in fewer than 30 days after receipt of it;

Not Applicable

• requiring respondents to submit more than an original and two copies of any document;

Not Applicable

• requiring respondents to retain records other than health, medical, government contract, grant-in-aid, or tax records for more than three years;

Not Applicable

• in connection with a statistical survey, that is not designed to produce valid and reliable results than can be generalized to the universe of study;

Not Applicable

• requiring the use of a statistical data classification that has not been reviewed and approved by OMB;

• Not Applicable

that includes a pledge of confidentiality that is not supported by authority established in statute or regulation, that is not supported by disclosure and data security policies that are consistent with the pledge, or which unnecessarily impedes sharing of data with other agencies for compatible confidential use; or

Not Applicable

• requiring respondents to submit proprietary trade secret, or other confidential information unless the agency can demonstrate that it has instituted procedures to protect the information's confidentiality to the extent permitted by law.

• Not Applicable

There are no special circumstances that require the collection of information to be inconsistent with the guidelines.

8. In accordance with 5CFR 1320.8(d), this information collection soliciting public comments was announced in the Federal Register on April 21, 2017, Volume 82, No. 76, Pages 18766. (0) Comment 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	$20.02	$1,601.60

Estimated hourly cost is based on the average annual salary of a GS-6/2, of $20.02.

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	80	1600	$43.29	$69,264.00

Estimated hourly cost is based on the average annual salary of a GS-12/5, of $43.29

15. This is a Revision of a currently approved collection. Various items on the form HUD-93201 needed updates, such as the Mortgage Insurance Rates and Mortgage Insurance Premium.

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.

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B. Collection of Information Employing Statistical Methods.

The collection of information employing statistical methods does not apply.