www.hudclips.org U. S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT WASHINGTON, D. C. 20410-8000 April 26, 1990 OFFICE OF THE ASSISTANT SECRETARY FOR HOUSING-FEDERAL HOUSING COMMISSIONER Mortgagee Letter 90-13 TO: ALL APPROVED MORTGAGEES SUBJECT: OMB's Guidance on Government-wide New Restrictions on Lobbying You are hereby notified of the requirement to comply immediately with the new restrictions on lobbying called for by Section 319 (referred to as the Byrd Amendment) of Public Law 101-121. OMB's Interim Final Common Rule, published for comment on February 26, 1990 is enclosed. December 23, 1989 was the effective date of this new restriction. The Byrd amendment prohibits all applicants and recipients of Federal contracts, grants, loans, and cooperative agreements from using Federally appropriated funds for lobbying. It also requires disclosure of lobbying with other than Federally appropriated funds by each person who receives or requests financial assistance in the form of a contract, grant, loan, cooperative agreement or commitment for loan insurance or loan guaranty that exceeds the minimum dollar thresholds. APPLICABILITY: The Byrd Amendment is applicable to applicants and recipients and subcontractors of contracts, grants, or cooperative agreements exceeding $100,000, as well as to loans or commitments to insure loans exceeding $150,000. This includes all multifamily and coinsurance programs pursuant to Title II of the National Housing Act. For single family programs, the purchase of a personal residence is excluded from these requirements unless the mortgage amount exceeds $150,000. It must be emphasized that even if the loan or grant amounts are not large enough to trigger the certification and disclosure requirements, the prohibitions against the use of Federally appropriated funds for influencing or attempting to influence the actions of Federal officials apply. REQUIRED REPORTING: The OMB regulations require a certification that Federally appropriated funds are/ will/ have not been used in violation of Section 319 and that disclosure will be made of payments for lobbying with other than Federally appropriated funds. This certification is to be submitted by applicants as part of the application process for the "covered Federal actions" described above. Civil penalties from $10,000 to $100,000 can be assessed for noncompliance. _____________________________________________________________________ 2 Copies of the standard certification language are attached. There are two versions; one is called a "certification" and is for contracts, grants, loans and cooperative agreements. The other is called a "statement" and is for loan guarantees and loan insurance. There is also a standard disclosure form, Standard Form - LLL "Disclosure Form to Report Lobbying", which is also attached, that must be used to disclose lobbying with other than Federally appropriated funds at the time of application filing. Please note that the certification/statement and disclosure form must be submitted with each application, if required above. If it is not filed at the time of the application, it must be submitted before the applicant receives Federal assistance. This might occur where an application was submitted prior to December 23, 1989, but is not approved until after that date. In addition, at the end of each quarter a disclosure form shall be filed when an event requires disclosure or when previously filed disclosure information is inaccurate. It is up to the applicant to determine whether it is to be submitted. In mortgage insurance programs, the applicant is the mortgagee. However, the sponsor/mortgagor is a subrecipient and is also covered. In multifamily, submissions must be made with the following: 1) Mortgage insurance application, at any stage - HUD-92013 92013-Hosp, 92013-NHICF or HUD-93201, as appropriate; 2) Cost Certification forms - HUD-92330 or FHA-2205A; and 3) Request for Final Endorsement of Credit Instrument : Form FHA-2023. For single family insurance, each application that involves a mortgage amount that exceeds $150,000 must be accompanied by the disclosure form. These forms must be signed by the mortgagee and all mortgagors and must be submitted with the application for firm commitment for all HUD processed cases; it must be included as part of the closing package for all Direct Endorsement cases submitted for insurance. You are reminded that this certification by the lender and mortgagor is only required for applications that involve mortgage amounts that exceed $150,000. Generally, these applications will involve only 3 and 4 unit properties in high cost areas and most one-to-four unit applications in Hawaii. _____________________________________________________________________ 3 HUD Headquarters contacts: Any questions may be addressed to the appropriate Headquarters program office as follows: Single Family Programs - Morris Carter, (202) 755-6700 Single Family Property Disposition - Jackie Campbell (202) 755-5740 Multifamily Housing Management - James Tahash, ( 202 ) 426-3944 Multifamily Housing Development - Jane Luton, (202) 755-6223 Elderly & Assisted Housing - Larry Goldberger, (202) 755-5720 A Notice to Field offices and a Coinsuring Lender Letter on this matter have also been sent. Sincerely, C. Austin Fitts Assistant Secretary for Housing-Federal Housing Commissioner Enclosures