[House Report 108-247]
[From the U.S. Government Publishing Office]



108th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    108-247

======================================================================


 
           FHA MULTIFAMILY LOAN LIMIT ADJUSTMENT ACT OF 2003

                                _______
                                

 September 3, 2003.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

  Mr. Oxley, from the Committee on Financial Services, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 1985]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Financial Services, to whom was referred the 
bill (H.R. 1985) to amend the National Housing Act to increase 
the maximum mortgage amount limit for FHA-insured mortgages for 
multifamily housing located in high-cost areas, having 
considered the same, report favorably thereon with an amendment 
and recommend that the bill as amended do pass.

                                CONTENTS

                                                                   Page
Amendment........................................................     1
Purpose and Summary..............................................     2
Background and Need for Legislation..............................     2
Hearings.........................................................     3
Committee Consideration..........................................     4
Committee Votes..................................................     4
Committee Oversight Findings.....................................     4
Performance Goals and Objectives.................................     4
New Budget Authority, Entitlement Authority, and Tax Expenditures     4
Committee Cost Estimate..........................................     4
Congressional Budget Office Cost Estimate........................     4
Federal Mandates Statement.......................................     6
Advisory Committee Statement.....................................     6
Constitutional Authority Statement...............................     6
Applicability to Legislative Branch..............................     6
Section-by-Section Analysis......................................     6
Changes in Existing Law Made by the Bill, as Reported............     7

                               Amendment

  The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``FHA Multifamily Loan Limit Adjustment 
Act of 2003''.

SEC. 2. MAXIMUM MORTGAGE AMOUNT LIMIT FOR MULTIFAMILY HOUSING IN HIGH-
                    COST AREAS.

  In the National Housing Act, sections 207(c)(3), 213(b)(2)(B)(i), 
220(d)(3)(B)(iii)(II), 221(d)(3)(ii)(II), 221(d)(4)(ii)(II), 
231(c)(2)(B), and 234(e)(3)(B) (12 U.S.C. 1713(c)(3), 
1715e(b)(2)(B)(i), 1715k(d)(3)(B)(iii)(II), 1715l(d)(3)(ii)(II), 
1715l(d)(4)(ii)(II), 1715v(c)(2)(B)), and 1715y(e)(3)(B)) are each 
amended--
          (1) by striking ``110 percent'' and inserting ``170 
        percent''; and
          (2) by striking ``140 percent'' and inserting ``170 
        percent''.

SEC. 3. CATCH-UP ADJUSTMENTS TO CERTAIN MAXIMUM MORTGAGE AMOUNT LIMITS.

  (a) Section 207 Limits.--Section 207(c)(3) of the National Housing 
Act (12 U.S.C. 1713(c)(3)) is amended by striking ``$11,250'' and 
inserting ``$17,460''.
  (b) Section 213 Limits.--Section 213(b)(2)(A) of the National Housing 
Act (12 U.S.C. 1715e(b)(2)(A)) is amended--
          (1) by striking ``$38,025'', ``$42,120'', ``$50,310'', 
        ``$62,010'', and ``$70,200'' and inserting ``$41,207'', 
        ``$47,511'', ``$57,300'', ``$73,343'', and ``$81,708'', 
        respectively; and
          (2) by striking ``$49,140'', ``$60,255'', ``$75,465'', and 
        ``$85,328'' and inserting ``$49,710'', ``$60,446'', 
        ``$78,197'', and ``$85,836'', respectively.

                          Purpose and Summary

    H.R. 1985, the FHA Multifamily Loan Limit Adjustment Act of 
2003, amends the National Housing Act to increase the maximum 
mortgage amount limit for FHA-insured mortgages for multifamily 
housing located in high-cost areas. It changes the statutory 
maximum adjustment percentage for geographic areas from 110 to 
170 percent, which changes HUD's maximum high cost percentage 
to 270 percent. Providing the HUD Secretary additional 
flexibility to increase the maximum loan limits in high cost 
areas greatly improves the FHA multifamily mortgage insurance 
programs, particularly in extremely high-cost geographical 
areas. With severe shortages of affordable rental housing in 
most of the high cost markets, this change enables developers 
to provide much-needed new affordable housing to low- and 
moderate-income families.

                  Background and Need for Legislation

    Since its inception in 1934, the Federal Housing 
Administration (FHA) has provided vital public services 
contributing to the health and well-being of individuals and 
communities through its nationally administered programs. After 
being consolidated into the Department of Housing and Urban 
Development's (HUD) Office of Housing in 1965, the FHA 
continued its core mission of contributing to the building and 
maintenance of healthy, prosperous neighborhoods and expanding 
opportunities for affordable home ownership, rental housing and 
healthcare.
    The FHA is one of the most effective programs in helping 
low-income buyers purchase their first home. It was originally 
designed to encourage lenders to make credit more readily 
available and at lower rates. Through the FHA program, HUD 
insures mortgages and loans made by HUD-approved lenders for a 
wide variety of purposes, including new construction, 
rehabilitation, property improvement, and refinancing in 
connection with a wide variety of types of property. FHA 
programs include all types of residential property 
(multifamily, single family, manufactured homes), 
nonresidential commercial property, hospitals, and certain 
other healthcare facilities.
    Through its numerous multifamily housing programs, HUD is a 
primary partner in the development of affordable rental 
housing. FHA provides mortgage insurance to HUD-approved 
lenders to facilitate the construction, substantial 
rehabilitation, purchase, and refinancing of multifamily 
housing projects and healthcare facilities. Mortgage insurance 
covers the lender if a borrower defaults on the insured loan. 
Section 221(d)(3), section 221(d)(4) (Mortgage Insurance for 
Rental and Cooperative Housing), and section 223(f) (Mortgage 
Insurance for Nursing Homes, Intermediate Care, Board and Care, 
and Assisted Living Facilities), are multifamily housing's most 
widely used mortgage insurance programs for the financing and 
refinancing of apartments and healthcare facilities.
    The FHA multifamily mortgage insurance program is a 
critical source of financing for affordable multifamily rental 
housing. During the previous two years, Congress supported and 
implemented improvements to the program, including increasing 
the base loan limits by 25 percent and indexing the loan limits 
to inflation, which begins in 2004. As a result, loan volumes 
have increased significantly in many areas of the country where 
the program previously was not working.
    However, there are a number of high-cost urban markets, 
such as New York, Boston, San Francisco, Chicago and Los 
Angeles, where construction costs are significantly higher than 
in other areas of the country, and the high-cost factors have 
not been sufficient to allow use of the FHA multifamily 
mortgage insurance programs.
    Under current statute, the HUD Secretary may increase the 
loan limits in high cost geographic areas up to a maximum that 
is expressed as a specific percentage (currently 110 percent) 
above the statute's base limit. The Secretary may also increase 
the loan limits on a project-by-project basis up to a level 
that is a specific percentage (currently 140 percent) above the 
base limit, if it is deemed necessary because of high costs.
    HUD publishes high cost percentages that are used to 
determine FHA multifamily mortgage limits in high cost areas. 
These high cost percentages are expressed as a percentage of 
the base limit, as opposed to a percentage above the base limit 
as expressed in the statute.

                                Hearings

    The Subcommittee on Housing and Community Opportunity held 
a hearing on July 22, 2003 on H.R. 1985, the FHA Multifamily 
Loan Limit Adjustment Act of 2003. The following witnesses 
testified: The Honorable John Weicher, Assistant Secretary, 
Housing/Federal Housing Commissioner, U.S. Department of 
Housing and Urban Development; Mr. Howard Earl Cohen, 
President, The Beacon Companies, LLP; Ms. Linda D. Cheatham, 
Senior Vice President, Berkshire Mortgage Finance on behalf of 
the Mortgage Bankers Association of America; Mr. Casimir 
Kolaski, President, Kolaski Housing Advisors, Inc.; and Mr. 
Gary H. Ruping, President, Ruping Builders, Inc., on behalf of 
the National Association of Home Builders.

                        Committee Consideration

    On July 22, 2003, the Subcommittee on Housing and Community 
Opportunity met in open session and approved H.R. 1985, the FHA 
Multifamily Loan Limit Adjustment Act of 2003, for full 
committee consideration by a voice vote.
    On July 23, 2003, the Committee on Financial Services met 
in open session and considered H.R. 1985 (pursuant to rule 
2(b)(4) of the Rules of the Committee on Financial Services for 
the 108th Congress) and ordered the bill reported to the House, 
with an amendment, with a favorable recommendation, by a voice 
vote.

                            Committee Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee to list the record votes 
on the motion to report legislation and amendments thereto. No 
record votes were taken in conjunction with the consideration 
of this legislation. A motion by Mr. Oxley to report the bill 
to the House with a favorable recommendation was agreed to by a 
voice vote.

                      Committee Oversight Findings

    Pursuant to clause 3(c)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee made findings that are 
reflected in this report.

                    Performance Goals and Objectives

    Pursuant to clause 3(c)(4) of rule XIII of the Rules of the 
House of Representatives, the Committee establishes the 
following performance related goals and objectives for this 
legislation:
    The FHA will use the authority granted in this bill to 
improve the availability of multifamily housing in the United 
States.

   New Budget Authority, Entitlement Authority, and Tax Expenditures

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee adopts as its 
own the estimate of budget authority, entitlement authority, or 
tax expenditures or revenues contained in the cost estimate 
prepared by the Director of the Congressional Budget Office 
pursuant to section 402 of the Congressional Budget Act of 
1974.

                        Committee Cost Estimate

    The Committee adopts as its own the cost estimate prepared 
by the Director of the Congressional Budget Office pursuant to 
section 402 of the Congressional Budget Act of 1974.

                  Congressional Budget Office Estimate

    Pursuant to clause 3(c)(3) of rule XIII of the Rules of the 
House of Representatives, the following is the cost estimate 
provided by the Congressional Budget Office pursuant to section 
402 of the Congressional Budget Act of 1974:

                                     U.S. Congress,
                               Congressional Budget Office,
                                   Washington, DC, August 15, 2003.
Hon. Michael G. Oxley,
Chairman, Committee on Financial Services,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 1985, the FHA 
Multifamily Loan Limit Adjustment Act of 2003.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Susanne S. 
Mehlman.
             Sincerely,
                                       Douglas Holtz-Eakin,
                                                          Director.
     Enclosure.

H.R. 1985--FHA Multifamily Loan Limit Adjustment Act of 2003

     CBO estimates that implementing H.R. 1985 would have no 
significant Federal cost and would not affect direct spending 
or revenues. H.R. 1985 contains no intergovernmental or 
private-sector mandates as defined in the Unfunded Mandates 
Reform Act and would impose no costs on State, local, or tribal 
governments.
     Under the National Housing Act, the Federal Housing 
Administration (FHA) is authorized to insure private loans used 
to finance certain multifamily homes, subject to certain 
limitations specified in appropriation acts. H.R. 1985 would 
increase the current limit on the value of loans that FHA can 
guarantee in certain high-cost areas of the country under six 
different loan guarantee programs. (High-cost housing markets 
include such cities as Boston, San Francisco, and Los Angeles.) 
FHA would be able to insure loans at higher levels in other 
parts of the country as well, but on a project-by-project 
basis.
     Under current law, most FHA programs that guarantee 
multifamily mortgages have a negative subsidy rate as estimated 
under credit reform procedures, resulting in net offsetting 
collections to the government. That is, guarantee fees paid to 
FHA for new mortgages more than offset the cost of expected 
defaults, resulting in net collections from five of the six 
loan guarantee programs affected by the bill. (One of the 
programs that would be affected by the bill--loans to support 
housing for moderate income and displaced families--is 
estimated to have a positive subsidy rate of 5.35 percent in 
2004). In 2002, FHA insured about $5 billion in loans for 
multifamily projects. The budgetary impact of those guarantees 
was recorded as discretionary savings of about $20 million.
     If FHA made additional loan guarantees as a result of the 
higher cap on the value of loans in high-cost areas, the agency 
would record additional offsetting collections (which would be 
a reduction is discretionary spending). Based on information 
from FHA, however, CBO does not expect that demand for 
multifamily housing guarantees would increase significantly 
under this bill. In many high-cost areas of the country, 
additional problems, such as regulatory barriers and market 
forces (e.g., supply of suitable sites), also contribute to the 
lack of multifamily housing. Therefore, CBO estimates that any 
additional collections under the bill would be insignificant 
over the next five years.
     The CBO staff contact for this estimate is Susanne S. 
Mehlman. This estimate was approved by Peter H. Fontaine, 
Deputy Assistant Director for Budget Analysis.

                       Federal Mandates Statement

    The Committee adopts as its own the estimate of Federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                   Constitutional Authority Statement

    Pursuant to clause 3(d)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee finds that the 
Constitutional Authority of Congress to enact this legislation 
is provided by Article 1, section 8, clause 1 (relating to the 
defense and general welfare of the United States), and clause 3 
(relating to the power to regulate foreign and interstate 
commerce).

                  Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

             Section-by-Section Analysis of the Legislation


Section 1. Short title

    This section establishes the short title of the bill, the 
``FHA Multifamily Loan Limit Adjustment Act of 2003.''

Section 2. Maximum mortgage amount limit for multifamily housing in 
        high-cost areas

    This section amends the National Housing Act at (1) section 
207(c)(3) (Rental Housing; 12 U.S.C. 1713(c)(3)), (2) section 
213(b)(2)(B)(i) (Cooperative Housing; 12 U.S.C. 
1715e(b)(2)(B)(i)), (3) section 220(d)(3)(B)(iii)(II) 
(Rehabilitation and Neighborhood Conservation Housing; 12 
U.S.C. 1715k(d)(3)(B)(iii)(II)), (4) sections 221(d)(3)(ii)(II) 
and 221(d)(4)(ii)(II) (Housing for Moderate Income and 
Displaced Families; 12 U.S.C. 1715l(d)(3)(ii)(II) and 
1715l(d)(4)(ii)(II)), (5) section 231(c)(2)(B) (Housing for 
Elderly Persons; 12 U.S.C. 1715v(c)(2)(B)), and (6) section 
234(e)(3)(B) (Condominiums; 12 U.S.C. 1715y(e)(3)(B)) to grant 
the Secretary of Housing and Urban Development (HUD) the 
authority to increase, by regulation, the eligible FHA 
insurance mortgage dollar amount limits in geographic areas of 
high cost by up to 170 percent. This updates the current 110 
percent limit on the promulgated amount and raises the project-
by-project limit from 140 percent to 170 percent. In addition, 
this raises the baseline unit mortgage insurance limits for 
cooperative housing to reflect increases in construction costs 
that have been applied to other multi-family housing programs.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

NATIONAL HOUSING ACT

           *       *       *       *       *       *       *


TITLE II--MORTGAGE INSURANCE

           *       *       *       *       *       *       *


                        rental housing insurance

      Sec. 207. (a) * * *

           *       *       *       *       *       *       *

      (c) To be eligible for insurance under this section a 
mortgage on any property or project shall involve a principal 
obligation in an amount--
          (2) * * *
          (3)(A) not to exceed, for such part of the property 
        or projects as may be attributable to dwelling use 
        (excluding exterior and land improvements as defined by 
        the Secretary), $38,025 per family unit without 
        bedroom, $42,120 per family unit with one bedroom, 
        $50,310 per family unit with two bedrooms, $62,010 per 
        family unit with three bedrooms, and $70,200 per family 
        unit with four or more bedrooms, or not to exceed 
        [$11,250] $17,460 per space; except that as to projects 
        to consist of elevator-type structures the Secretary 
        may, in his discretion, increase the dollar amount 
        limitations per family unit to not to exceed $43,875 
        per family unit without a bedroom, $49,140 per family 
        unit with one bedroom, $60,255 per family unit with two 
        bedrooms, $75,465 per family unit with three bedrooms, 
        and $85,328 per family unit with four or more bedrooms, 
        as the case may be, to compensate for the higher costs 
        incident to the construction of elevator type 
        structures of sound standards of construction and 
        design; and except that the Secretary may, by 
        regulation, increase any of the foregoing dollar amount 
        limitations contained in this paragraph by not to 
        exceed [110 percent] 170 percent in any geographical 
        area where the Secretary finds that cost levels so 
        require and not to exceed [140 percent] 170 percent 
        where the Secretary determines it necessary on a 
        project-by-project basis, but in no case may any such 
        increase exceed 90 percent where the Secretary 
        determines that a mortgage purchased or to be purchased 
        by the Government National Mortgage Association in 
        implementing its special assistance functions under 
        section 305 of this Act (as such section existed 
        immediately before November 30, 1983) is involved.

           *       *       *       *       *       *       *


                     cooperative housing insurance

      Sec. 213. (a) * * *
      (b) To be eligible for insurance under this section a 
mortgage on any property or project of a corporation or trust 
of the character described in paragraph numbered (1) of 
subsection (a) of this section shall involve a principal 
obligation in an amount--
          (2)(A) not to exceed, for such part of the property 
        or project as may be attributable to dwelling use 
        (excluding exterior land improvements as defined by the 
        Secretary), [$38,025] $41,207 per family unit without a 
        bedroom, [$42,120] $47,511 per family unit with one 
        bedroom, [$50,310] $57,300 per family unit with two 
        bedrooms, [$62,010] $73,343 per family unit with three 
        bedrooms, and [$70,200] $81,708 per family unit with 
        four or more bedrooms, and not to exceed 98 per centum 
        of the amount which the Secretary estimates will be the 
        replacement cost of the property or project when the 
        proposed physical improvements are completed: Provided, 
        That as to projects to consist of elevator-type 
        structures the Secretary may, in his discretion, 
        increase the dollar amount limitations per family unit 
        to not to exceed $43,875 per family unit without a 
        bedroom, [$49,140] $49,710 per family unit with one 
        bedroom, [$60,255] $60,446 per family unit with two 
        bedrooms, [$75,465] $78,197 per family unit with three 
        bedrooms, and [$85,328] $85,836 per family unit with 
        four or more bedrooms, as the case may be, to 
        compensate for the higher cost incident to the 
        construction of elevator-type structures of sound 
        standards of construction and design; (B)(i) the 
        Secretary may, by regulation, increase any of the 
        dollar amount limitations in subparagraph (A) (as such 
        limitations may have been adjusted in accordance with 
        section 206A of this Act) by not to exceed [110 
        percent] 170 percent in any geographical area where the 
        Secretary finds that cost levels so require and not to 
        exceed [140 percent] 170 percent where the Secretary 
        determines it necessary on a project-by-project basis, 
        but in no case may any such increase exceed 90 percent 
        where the Secretary determines that a mortgage 
        purchased or to be purchased by the Government National 
        Mortgage Association in implementing its special 
        assistance functions under section 305 of this Act (as 
        such section existed immediately before November 30, 
        1983) is involved; and (ii) in the case of a mortgagor 
        of the character described in paragraph (3) of 
        subsection (a) the mortgage shall involve a principal 
        obligation in an amount not to exceed 90 per centum of 
        the amount which the Secretary estimates will be the 
        replacement cost of the property or project when the 
        proposed physical improvements are completed; and (iii) 
        upon the sale of a property or project by a mortgagor 
        of the character described in paragraph (3) of 
        subsection (a) to a nonprofit cooperative ownership 
        housing corporation or trust within two years after the 
        completion of such property or project the mortgage 
        given to finance such sale shall involve a principal 
        obligation in an amount not to exceed the maximum 
        amount computed in accordance with this subparagraph 
        (B)(i).

           *       *       *       *       *       *       *


     rehabilitation and neighborhood conservation housing insurance

      Sec. 220. (a) * * *

           *       *       *       *       *       *       *

      (d) To be eligible for insurance under this section a 
mortgage shall meet the following conditions:
      (1) * * *

           *       *       *       *       *       *       *

      (3) The mortgage shall--
          (A) * * *
          (B)(ii) * * *
          (iii)(I) not to exceed, for such part of the property 
        or project as may be attributable to dwelling use 
        (excluding exterior land improvements as defined by the 
        Secretary), $38,025 per family unit without a bedroom, 
        $42,120 per family unit with one bedroom, $50,310 per 
        family unit with two bedrooms, $62,010 per family unit 
        with three bedrooms, and $70,200 per family unit with 
        four or more bedrooms, except that as to projects to 
        consist of elevator-type structures the Secretary may, 
        in his discretion, increase the dollar amount 
        limitations per family unit not to exceed $43,875 per 
        family unit without a bedroom, $49,140 per family unit 
        with one bedroom, $60,255 per family unit with two 
        bedrooms, $75,465 per family unit with three bedrooms, 
        and $85,328 per family unit with four or more bedrooms, 
        as the case may be, to compensate for the higher costs 
        incident to the construction of elevator-type 
        structures of sound standards of construction and 
        design; and (II) with respect to rehabilitation 
        projects involving not more than five family units, the 
        Secretary may by regulation increase by 25 per centum 
        any of the dollar amount limitations in subparagraph 
        (B)(iii)(I) (as such limitations may have been adjusted 
        in accordance with section 206A of this Act) which are 
        applicable to units with two, three, or four or more 
        bedrooms with respect to dollar amount limitations 
        applicable to rehabilitation projects described in 
        subclause (II), the Secretary may, by regulation, 
        increase the dollar amount limitations contained in 
        subparagraph (B)(iii)(I) (as such limitations may have 
        been adjusted in accordance with section 206A of this 
        Act)) by not to exceed [110 percent] 170 percent in any 
        geographical area where the Secretary finds that cost 
        levels so require and by not to exceed [140 percent] 
        170 percent where the Secretary determines it necessary 
        on a project-by-project basis, but in no case may any 
        such increase exceed 90 percent where the Secretary 
        determines that a mortgage purchased or to be purchased 
        by the Government National Mortgage Association in 
        implementing its special assistance functions under 
        section 305 of this Act (as such section existed 
        immediately before November 30, 1983) is involved); 
        (III) That nothing contained in this subparagraph 
        (B)(iii)(I) shall preclude the insurance of mortgages 
        covering existing multifamily dwellings to be 
        rehabilitated or reconstructed for the purposes set 
        forth in subsection (a) of this section; (IV) with 
        respect to rehabilitation projects involving not more 
        than five family units, the Secretary may further 
        increase any of the dollar limitations which would 
        otherwise apply to such projects by not to exceed 20 
        per centum if such increase is necessary to account for 
        the increased cost of the project due to the 
        installation therein of a solar energy system (as 
        defined in subparagraph (3) of the last paragraph of 
        section 2(a) of this Act) or residential energy 
        conservation measures (as defined in section 210(11)(A) 
        through (G) and (I) of Public Law 95-619) in cases 
        where the Secretary determines that such measures are 
        in addition to those required under the minimum 
        property standards and will be cost-effective over the 
        life of the measure; and

           *       *       *       *       *       *       *


           housing for moderate income and displaced families

      Sec. 221. (a) * * *

           *       *       *       *       *       *       *

      (d) To be eligible for insurance under this section, a 
mortgage shall--
          (1) * * *

           *       *       *       *       *       *       *

          (3) if executed by a mortgagor which is a public body 
        or agency (and, except with respect to a project 
        assisted or to be assisted pursuant to section 8 of the 
        United States Housing Act of 1937, which certifies that 
        it is not receiving financial assistance from the 
        United States exclusively pursuant to such Act), a 
        cooperative (including an investor-sponsor who meets 
        such requirements as the Secretary may impose to assure 
        that the consumer interest is protected), or a limited 
        dividend corporation (as defined by the Secretary), or 
        a private nonprofit corporation or association, or 
        other mortgagor approved by the Secretary, and 
        regulated or supervised under Federal or State laws or 
        by political subdivisions of States, or agencies 
        thereof, or by the Secretary under a regulatory 
        agreement or otherwise, as to rents, charges, and 
        methods of operation, in such form and in such manner 
        as in the opinion of the Secretary will effectuate the 
        purposes of this section--
                  (ii)(I) not exceed, for such part of the 
                property or project as may be attributable to 
                dwelling use (excluding exterior land 
                improvements as defined by the Secretary), 
                $42,048 per family unit without a bedroom, 
                $48,481 per family unit with one bedroom, 
                58,469 per family unit with two bedrooms, 
                $74,840 per family unit with three bedrooms, 
                and $83,375 per family unit with four or more 
                bedrooms; except that as to projects to consist 
                of elevator-type structures the Secretary may, 
                in his discretion, increase the dollar amount 
                limitations per family unit to not to exceed 
                $44,250 per family unit without a bedroom, 
                $50,724 per family unit with one bedroom, 
                $61,680 per family unit with two bedrooms, 
                $79,793 per family unit with three bedrooms, 
                and $87,588 per family unit with four or more 
                bedrooms, as the case may be, to compensate for 
                the higher costs incident to the construction 
                of elevator-type structures of sound standards 
                of construction and design; (II) the Secretary 
                may, by regulation, increase any of the dollar 
                amount limitations in subclause (I) (as such 
                limitations may have been adjusted in 
                accordance with section 206A of this Act) by 
                not to exceed [110 percent] 170 percent in any 
                geographical area where the Secretary finds 
                that cost levels so require and by not to 
                exceed [140 percent] 170 percent where the 
                Secretary determines it necessary on a project-
                by-project basis, but in no case may any such 
                increase exceed 90 percent where the Secretary 
                determines that a mortgage purchased or to be 
                purchased by the Government National Mortgage 
                Association in implementing its special 
                assistance functions under section 305 of this 
                Act (as such section existed immediately before 
                November 30, 1983) is involved; and

           *       *       *       *       *       *       *

          (4) if executed by a mortgagor and which is approved 
        by the Secretary--
                  (ii)(I) not exceed, or such part of the 
                property or project as may be attributable to 
                dwelling use (excluding exterior land 
                improvements as defined by the Secretary), 
                $37,843 per family unit without a bedroom, 
                $42,954 per family unit with one bedroom, 
                $51,920 per family unit with two bedrooms, 
                $65,169 per family unit with three bedrooms, 
                and $73,846 per family unit with four or more 
                bedrooms; except that as to projects to consist 
                of elevator-type structures the Secretary may, 
                in his discretion, increase the dollar amount 
                limitations per family unit to not to exceed 
                $40,876 per family unit without a bedroom, 
                $46,859 per family unit with one bedroom, 
                $56,979 per family unit with two bedrooms, 
                $73,710 per family unit with three bedrooms, 
                and $80,913 per family unit with four or more 
                bedrooms, as the case may be, to compensate for 
                the higher costs incident to the construction 
                of elevator-type structures of sound standards 
                of construction and design; (II) the Secretary 
                may, by regulation, increase any of the dollar 
                limitations in subclause (I) (as such 
                limitations may have been adjusted in 
                accordance with section 206A of this Act) by 
                not to exceed [110 percent] 170 percent in any 
                geographical area where the Secretary finds 
                that cost levels so require and by not to 
                exceed [140 percent] 170 percent where the 
                Secretary determines it necessary on a project-
                by-project basis, but in no case may any such 
                increase exceed 90 percent where the Secretary 
                determines that a mortgage purchased or to be 
                purchased by the Government National Mortgage 
                Association in implementing its special 
                assistance functions under section 305 of this 
                Act (as such section existed immediately before 
                November 30, 1983) is involved;

           *       *       *       *       *       *       *


                      housing for elderly persons

      Sec. 231. (a) * * *

           *       *       *       *       *       *       *

      (c) To be eligible for insurance under this section, a 
mortgage to provide housing for elderly persons shall--
          (2)(A) not to exceed, for such part of the property 
        or project as may be attributable to dwelling use 
        (excluding exterior land improvement as defined by the 
        Secretary), $35,978 per family unit without a bedroom, 
        $40,220 per family unit with one bedroom, $48,029 per 
        family unit with two bedrooms, $57,798 per family unit 
        with three bedrooms, and $67,950 per family unit with 
        four or more bedrooms; except that as to projects to 
        consist of elevator-type structures the Secretary may, 
        in his discretion, increase the dollar amount 
        limitations per family unit to not to exceed $40,876 
        per family unit without a bedroom, $46,859 per family 
        unit with one bedroom, $56,979 per family unit with two 
        bedrooms, $73,710 per family unit with three bedrooms, 
        and $80,913 per family unit with four or more bedrooms, 
        as the case may be, to compensate for the higher costs 
        incident to the construction of elevator-type 
        structures of sound standards of construction and 
        design; (B) the Secretary may, by regulation, increase 
        any of the dollar limitations in subparagraph (A) (as 
        such limitations may have been adjusted in accordance 
        with section 206A of this Act) by not to exceed [110 
        percent] 170 percent in any geographical area where the 
        Secretary finds that cost levels so require and by not 
        to exceed [140 percent] 170 percent where the Secretary 
        determines it necessary on a project-by-project basis, 
        but in no case may any such increase exceed 90 percent 
        where the Secretary determines that a mortgage 
        purchased or to be purchased by the Government National 
        Mortgage Association in implementing its special 
        assistance functions under section 305 of this Act (as 
        such section existed immediately before November 30, 
        1983) is involved; (C) the Secretary may, by 
        regulation, increase any of the dollar limitations in 
        subparagraph (A) (as such limitations may have been 
        adjusted in accordance with section 206A of this Act) 
        by not to exceed 20 per centum if such increase is 
        necessary to account for the increased cost of the 
        project due to the installation therein of a solar 
        energy system (as defined in subparagraph (3) of the 
        last paragraph of section 2(a) of this Act) or 
        residential energy conservation measures (as defined in 
        section 210(11) (A) through (G) and (I) of Public Law 
        95-619) in cases where the Secretary determines that 
        such measures are in addition to those required under 
        the minimum property standards and will be cost-
        effective over the life of the measure;

           *       *       *       *       *       *       *


                  mortgage insurance for condominiums

      Sec. 234. (a) * * *

           *       *       *       *       *       *       *

      (e) To be eligible for insurance, a blanket mortgage on 
any multi-family project of a mortgagor of the character 
described in subsection (d) shall involve a principal 
obligation in an amount--
          (2) * * *
          (3)(A) not to exceed, for such part of the project as 
        may be attributable to dwelling use (excluding exterior 
        land improvements as defined by the Secretary), $42,048 
        per family unit without a bedroom, $48,481 per family 
        unit with one bedroom, $58,469 per family unit with two 
        bedrooms, $74,840 per family unit with three bedrooms, 
        and $83,375 per family unit with four or more bedrooms; 
        except that as to projects to consist of elevator-type 
        structures the Secretary may, in his discretion, 
        increase the dollar amount limitations per family unit 
        to not to exceed $44,250 per family unit without a 
        bedroom, $50,724 per family unit with one bedroom, 
        $61,680 per family unit with two bedrooms, $79,793 per 
        family unit with three bedrooms, and $87,588 per family 
        unit with four or more bedrooms, as the case may be, to 
        compensate for higher costs incident to the 
        construction of elevator-type structures of sound 
        standards of construction and design; (B) the Secretary 
        may, by regulation, increase any of the dollar 
        limitations in subparagraph (A) (as such limitations 
        may have been adjusted in accordance with section 206A 
        of this Act) by not to exceed [110 percent] 170 percent 
        in any geographical area where the Secretary finds that 
        cost levels so require and by not to exceed [140 
        percent] 170 percent where the Secretary determines it 
        necessary on a project-by-project basis, but in no case 
        may any such increase exceed 90 percent where the 
        Secretary determines that a mortgage purchased or to be 
        purchased by the Government National Mortgage 
        Association in implementing its special assistance 
        functions under section 305 of this Act (as such 
        section existed immediately before November 30, 1983) 
        is involved; and

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