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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
WASHINGTON, D. C. 20410

March 25, 1983
OFFICE OF THE ASSISTANT SECRETARY FOR
HOUSING-FEDERAL HOUSING COMMISSIONER
Mortgagee Letter 83-8
TO:  ALL APPROVED MORTGAGEES
SUBJECT:  Withholding of Interest on HUD Debentures
 
     The Tax Equity and Fiscal Requirements Act of 1982 requires
payers of interest to withhold ten (10) percent of each interest
payment as a Federal income tax withholding unless the recipient is
eligible for exemption.  Recipients of interest on HUD debentures are
paid directly by the Bureau of Public Debt, Treasury Department.
Therefore, in accordance with the Act, the Bureau of Public Debt will
withhold ten percent of each debenture interest payment unless an
exemption certificate is filed with the Bureau.
 
     For exemption, Form PD 5064, Certificate of Exemption From
Withholding on Interest, must be filed with the Bureau no later than
one full month prior to the interest payment date.  The form may be
obtained by writing to:
 
     (1)   Any Federal Reserve Bank or Branch, or
 
     (2)   Bureau of the Public Debt, Department F,
           Washington, D.C. 20226
 
     Inquiries relative to withholding of interest on HUD debentures
should be made via calling the Bureau of Public Debt's public inquiry
service, telephone (202) 287-4113.  (This is not a toll-free number.)
 
                               Sincerely,
 
                               Philip Abrams
                               Assistant Secretary for
                               Housing-Federal Housing Coimmissioner