[Federal Register: June 15, 1999 (Volume 64, Number 114)]
[Notices]               
[Page 32061-32062]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr15jn99-81]

=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-4458-N-01]

 
Loan Guarantee Recovery Fund; Solicitation for Participation in 
the National Rebuilding Initiative Financial Consortium

AGENCY: Office of the Assistant Secretary for Community Planning and 
Development, HUD.

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: The Department of Housing and Urban Development is seeking 
financial institutions interested in making HUD-guaranteed rebuilding 
loans to certain nonprofit organizations, including places of worship, 
that have been damaged or destroyed by an act or acts of arson or 
terrorism. Such financial institutions would become candidates to 
participate in HUD's National Rebuilding Initiative Financial 
Consortium.

FOR FURTHER INFORMATION CONTACT: Financial institutions interested in 
participating in the National Rebuilding Initiative Financial 
Consortium, should contact Tony Johnston, Office of Community Planning 
and Development, U.S. Department of Housing and Urban Development, Room 
7178, 451 Seventh Street, SW, Washington, DC 20410; telephone (202) 
708-0614, ext. 4560; FAX (202) 708-1798 (these numbers are not toll-
free). Hearing or speech-impaired individuals may access these 
telephone numbers via TTY by calling the toll-free Federal Information 
Relay Service at 1-800-877-8339.

SUPPLEMENTARY INFORMATION: The Secretary of HUD has authority under the 
Church Arson Prevention Act of 1996 (18 U.S.C. 241 note; Pub.L. 104-
155, approved July 3, 1996, 110 Stat. 1392) (the ``Act'') to guarantee 
rebuilding loans through the use of a ``Loan Guarantee Recovery Fund.'' 
Specifically, HUD may guarantee loans made by financial institutions to 
certain nonprofit organizations, including places of worship, that have 
been damaged or destroyed by an act or acts of arson or terrorism. 
Proceeds of rebuilding loans are used to construct and rehabilitate 
structures, replace and restore personal property, and to carry out 
other eligible activities. HUD's regulations implementing the Act are 
located in 24 CFR part 573 (entitled ``Loan Guarantee Recovery Fund'').

[[Page 32062]]

    President Clinton established the National Church Arson Task Force 
(NCATF) in June, 1996 due to the sharp rise in the number of arsons and 
other acts against places of worship in early 1996. According to the 
NCATF Second Year Report to the President, approximately 670 
investigations have been opened in connection with fires at places of 
worship. While the Report indicates that the number of these incidents 
has decreased since 1995, arsons continue to occur at places of 
worship.
    In addition to administering the Loan Guarantee Recovery Fund 
authorized by the Act, HUD has established the National Rebuilding 
Initiative (the ``NRI'') to bring together as many resources as 
possible to aid affected places of worship. The NRI is a partnership of 
the National Council of Churches, the Congress of National Black 
Churches, and HUD. While its two partners make grants available for 
rebuilding, HUD guarantees private sector loans made by banks and other 
financial institutions for rebuilding purposes.
    Although there have been reports of arson cases in the southern 
United States (where African-American places of worship have been 
disproportionately affected), the fires have not been limited to one 
particular geographic area. There have been arson reports in 39 states 
and the District of Columbia. Accordingly, HUD seeks to address the 
problem of rebuilding through a system of assistance that is nationwide 
in scope.
    HUD is especially interested in identifying financial institutions 
that:
    1. Value the HUD guarantee of rebuilding loans so as to effect a 
reduction in the standard interest rate charged for similar loans 
without the HUD guarantee; and
    2. Are knowledgeable of an entity or entities willing to assist 
nonprofit organizations seeking rebuilding loans in preparing the 
financial aspect of their applications for such loans.
    For purposes of this notice, the term ``financial institution'' 
means a lender which may be a bank, trust company, savings and loan 
association, credit union, mortgage company, or other issuer regulated 
by the Federal Deposit Insurance Corporation, the Office of Thrift 
Supervision, the Credit Union Administration, or the U.S. Comptroller 
of the Currency. A Financial Institution may also be a Pension Fund. 
(See 24 CFR 573.2.)
    To date, places of worship assisted in rebuilding their damaged 
properties have ranged in size from less than fifty congregants to as 
high as 1000 congregants.
    Financial institutions interested in participating in the National 
Rebuilding Initiative Financial Consortium, should contact Tony 
Johnston of HUD's Office of Community Planning and Development, at the 
address or telephone/fax numbers listed in the FOR FURTHER INFORMATION 
CONTACT section of this notice.

    Dated: June 9, 1999.
Cardell Cooper,
Assistant Secretary for Community Planning and Development.
[FR Doc. 99-15105 Filed 6-14-99; 8:45 am]
BILLING CODE 4458-N-01-P