[House Report 109-645]
[From the U.S. Government Publishing Office]



109th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     109-645

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



 
           FHA MULTIFAMILY LOAN LIMIT ADJUSTMENT ACT OF 2006

                                _______
                                

 September 8, 2006.--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. 5503]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Financial Services, to whom was referred the 
bill (H.R. 5503) to amend the National Housing Act to increase 
the mortgage amount limits applicable to FHA mortgage insurance 
for multifamily housing located in high-cost areas, having 
considered the same, report favorably thereon without amendment 
and recommend that the bill do pass.

                                CONTENTS

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

                          Purpose and Summary

    This legislation would increase the loan limits for FHA 
mortgage insurance for multifamily properties to make the 
program more relevant for high-cost areas. To accomplish this 
goal, H.R. 5503 would increase the multifamily loan limits in 
expensive areas to 170 percent above the base limit and give 
the Secretary of Housing and Urban Development (HUD) the 
discretion to increase the limit to 215 percent on a case-by-
case basis.

                  Background and Need for Legislation

    The FHA multifamily mortgage insurance program allows 
developers to obtain long-term, fixed-rate, non-recourse loans 
for the construction and substantial rehabilitation of 
affordable, multifamily housing. FHA-insured multifamily units 
are available for low- and moderate-income families and serve 
as an important source of housing, especially in expensive 
cities that lack other affordable housing alternatives. 
However, because of its statutory loan limits, in the past two 
years FHA was only able to insure a handful of multifamily 
loans for areas where housing costs are especially high, such 
as New York City, Philadelphia, Seattle, and Los Angeles.
    For example, in FY 2004 and 2005, because of inadequate 
loan limits, FHA insured only eight multifamily projects in the 
State of New York and five in Massachusetts. During this same 
time period, not a single multifamily new construction or 
substantial rehabilitation project in New Jersey was insured by 
FHA. Unlike the private-market housing choices available for 
higher-income families, there are few private-sector 
alternatives to the FHA multifamily insurance product, which 
helps to meet the housing needs of families at 80 to 150 
percent of area median income. Additionally, these middle-
income families do not have access to subsidized housing--such 
as the section 8 program--that addresses the needs of families 
making below 80 percent of area median income.
    Because most FHA projects do not require credit subsidy, 
H.R. 5503 will not expose the government to undue costs or 
increased risk of loss and will actually have a positive 
budgetary impact.

                                Hearings

    No hearings were held on this legislation.

                        Committee Consideration

    The Committee on Financial Services met in open session on 
July 26, 2006, and ordered H.R. 5503, FHA Multifamily Loan 
Limit Adjustment Act of 2006, favorably reported to the House 
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 with 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 held a hearing and 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 goal of H.R. 5503, the FHA Multifamily Loan Limit 
Adjustment Act of 2006 is to increase the loan limits for FHA 
mortgage insurance for multifamily properties in order to make 
the program more relevant for high-cost areas. To accomplish 
this goal, H.R. 5503 would increase the multifamily loan limits 
in expensive areas to 170 percent above the base limit and give 
the Secretary of HUD the discretion to increase the limit to 
215 percent on a case-by-case basis.

   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 new 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.

                        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:
                                                 September 7, 2006.
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. 5503, the FHA 
Multifamily Loan Limit Adjustment Act of 2006.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Susanne S. 
Mehlman.
            Sincerely,
                                          Donald B. Marron,
                                                   Acting Director.
    Enclosure.

H.R. 5503--FHA Multifamily Loan Limit Adjustment Act of 2006

    Summary: Under the National Housing Act, the Federal 
Housing Administration (FHA) is authorized to insure private 
loans used to finance certain multifamily homes, subject to 
loan limitations specified in appropriation acts. H.R. 5503 
would increase the current limit on the value of individual 
loans that FHA can guarantee in certain high-cost areas of the 
country under 12 of its 20 multifamily loan guarantee programs, 
such as housing for moderate and displaced families and 
cooperative projects. (High-cost housing markets are designated 
by FHA and include such cities as Boston, San Francisco, and 
Los Angeles.)
    CBO estimates that implementing H.R. 5503 would increase 
offsetting collections (a credit against discretionary 
spending) by $15 million in 2007 and $75 million over the 2007-
2011 period, assuming enactment of the annual appropriation 
acts necessary to implement the FHA programs and the Mortgage-
Backed Securities (MBS) program of the Government National 
Mortgage Association (GNMA). Such savings would stem from 
increasing the number of developers who could obtain loan 
insurance under many of FHA' s multifamily loan insurance 
programs. The budgetary savings would occur because the fees 
paid to FHA and GNMA are generally estimated to exceed the cost 
of expected defaults, as measured using the procedures 
specified in the Federal Credit Reform Act of 1990. Enacting 
the bill would not affect direct spending or revenues.
    H.R. 5503 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would impose no costs on state, local, or tribal 
governments.
    Estimated cost to the Federal Government: For this 
estimate, CBO assumes that the bill will be enacted near the 
beginning of fiscal year 2007. The estimated budgetary impact 
of H.R. 5503 is shown in the following table. The budget impact 
of this legislation falls within budget function 370 (commerce 
and housing credit).

----------------------------------------------------------------------------------------------------------------
                                                            By fiscal year, in millions of dollars--
                                               -----------------------------------------------------------------
                                                   2006       2007       2008       2009       2010       2011
----------------------------------------------------------------------------------------------------------------
                                        SPENDING SUBJECT TO APPROPRIATION

FHA and GNMA Spending Under Current Law:
    Estimated Authorization Level.............       -304       -270       -270       -270       -270       -270
    Estimated Outlays.........................       -304       -270       -270       -270       -270       -270
Proposed Changes:
    Subsidy Costs for FHA's Multifamily
     Programs:
        Estimated Authorization Level.........          0        -13        -13        -13        -13        -13
        Estimated Outlays.....................          0        -13        -13        -13        -13        -13
    Subsidy Costs for GNMA's Mortgage-Backed
     Securities Program:
        Estimated Authorization Level.........          0         -2         -2         -2         -2         -2
        Estimated Outlays.....................          0         -2         -2         -2         -2         -2
    Total Changes:
        Estimated Authorization Level.........          0         15         15         15         15         15
        Estimated Outlays.....................          0        -15        -15        -15        -15        -15
    Total FHA and GNMA Spending Under H.R.
     5503:
        Estimated Authorization Level.........       -304       -285       -285       -285       -285       -285
        Estimated Outlays.....................       -304       -285       -285       -285       -285      -285
----------------------------------------------------------------------------------------------------------------
\1\ The figures for 2006 are CBO's current estimate of budget authority and outlays for FHA's multifamily
  programs subject to the increased loan limitations under H.R. 5503 and for GNMA's Mortgage-Backed Securities
  (MBS) program under the enacted appropriation levels for this year. The 2007-2011 levels are CBO's baseline
  estimates of the amount of offsetting collections generated by those programs.

Note: FHA = Federal Housing Administration; GNMA = Government National Mortgage Association.

    Basis of estimate: The budgetary impact of this legislation 
would stem from additional offsetting collections recorded 
because the higher limits for many of FHA's multifamily 
programs would generate additional mortgage guarantees by FHA, 
as well as increased guarantee activity by GNMA. CBO estimates 
that enacting this bill would increase offsetting collections 
(that is, reduce outlays) by $75 million over the next five 
years, assuming the necessary appropriation actions.

Proposed changes

    The maximum amount of a loan that FHA can guarantee for 
multifamily housing depends on the base loan levels established 
by FHA, which vary by type and size of housing within a 
project. For example, the base loan limit for each unit of a 
building with two-bedroom apartments without elevators is 
roughly $54,000. Currently, in regions designated by FHA as 
high-cost areas, the base loan limit can be increased by up to 
270 percent. Thus, in a high-cost region, the loan limit for 
each unit in a building with two-bedroom apartments without 
elevators can be as high as $146,000 (i.e., 270 percent of the 
base limit). Under H.R. 5503, FHA could increase the base loan 
limit by up to 315 percent in high-cost areas. (In this 
example, the loan limit for that two-bedroom apartment could be 
as high as $170,000.)

Effects on FHA's subsidy costs

    The Federal Credit Reform Act of 1990 requires an 
appropriation of the subsidy costs and administrative costs 
associated with loan guarantees and direct loan programs. The 
subsidy cost is the estimated long-term cost to the government 
of a direct loan or loan guarantee, calculated on a net-
present-value basis, excluding administrative costs. Under 
current law, FHA's guarantees of multifamily loans result in 
net offsetting collections (that is, negative outlays) on the 
federal budget because the Administration estimates that 
guarantee fees collected on those mortgages will more than 
offset the costs of expected defaults, calculated on a present-
value basis. For 2007, CBO estimates that the weighted average 
subsidy estimate for the multifamily programs subject to the 
loan limit increases under this legislation is -1.34 percent. 
In addition, CBO estimates that, under current law, FHA will 
insure a total of $7 billion in multifamily loans in 2007.
    If FHA made more 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 in discretionary spending). According to industry 
experts, the current loan limits constrain new construction and 
rehabilitation of multifamily housing. Based on informal 
surveys of FHA field offices and realtors in certain high-cost 
areas, CBO expects that, under H.R. 5503, FHA would insure an 
additional 35 to 45 loans a year for multifamily projects(with 
a total face value of about $1 billion), We expect that the subsidy 
rate for those loans would be similar to the programs' estimated rate 
of -1.34 percent for 2007, Thus, CBO estimates that those additional 
loan guarantees would increase offsetting collections to the FHA (and 
thus reduce outlays) by about $13 million annually over the 2007-2011 
period.

Effects on GNMA's subsidy costs

    Changes in FHA's loan limits also would generate savings 
for GNMA. GNMA is responsible for guaranteeing securities 
backed by pools of mortgages insured by the federal government. 
In exchange for a fee charged to lenders or issuers of the 
securities, GNMA guarantees the timely payments of scheduled 
principal and interest due on the pooled mortgages that back 
those securities. Because the value of the fees collected is 
estimated to exceed the cost ofloan defaults in each year 
(using credit-reform methodology), the GNMA Mortgage-Backed 
Securities program is estimated to have a subsidy rate of -0.21 
percent in 2007, resulting in net receipts on the federal 
budget.
    Because most FHA multifamily loan guarantees are included 
in GNMA's MBS program, CBO estimates that raising the loan 
limit would result in additional GNMA collections of about $2 
million a year over the 2007-2011 period, These savings would 
affect discretionary spending because, like FHA, GNMA requires 
appropriation action to establish the total amount of its 
guarantees.
    Intergovernmental and Private-sector impact: H.R. 5503 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would impose no costs on state, local, or 
tribal governments.
    Estimated prepared by: Federal Costs: Susanne S. Mehlman; 
Impact on state, local and tribal govenments: Sarah Puro; 
Impact on the private sector: Paige Piper/Bach.
    Estimate approved by: Robert A. Sunshine, 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 
general welfare of the United States) and clause 3 (relating to 
the power to regulate 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 2006.''

Section 2. Multifamily housing mortgage limits in high cost areas

    This section increases the multifamily loan limits in high 
cost areas from 140 percent above the base limit to 170 percent 
above the base limit. Additionally, this section gives the HUD 
Secretary the discretion to increase this limit to 215 percent 
on a case-by-case basis.

         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 
        $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 [140] 170 percent in any geographical area where 
        the Secretary finds that cost levels so require and by 
        not to exceed [140] 170 percent, or [170 percent in 
        high cost areas] 215 percent in high cost areas, 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), $41,207 per family unit without a bedroom, 
        $47,511 per family unit with one bedroom, $57,300 per 
        family unit with two bedrooms, $73,343 per family unit 
        with three bedrooms, and $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, $49,710 per family unit with one bedroom, 
        $60,446 per family unit with two bedrooms, $78,197 per 
        family unit with three bedrooms, and $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 [140] 170 
        percent in any geographical area where the Secretary 
        finds that cost levels so require and by not to exceed 
        [140] 170 percent, or [170 percent in high cost areas] 
        215 percent in high cost areas, 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; (III) 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 in any geographical 
        area where the Secretary finds that cost levels so 
        require and by not to exceed 140 percent where the 
        Secretary determines it necessary on a project-by-
        project basis] 206A of this Act) by not to exceed 170 
        percent in any geographical area where the Secretary 
        finds that cost levels so require and by not to exceed 
        170 percent, or 215 percent in high cost areas, 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); (IV) 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; (V) 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 [140] 170 percent in any 
                geographical area where the Secretary finds 
                that cost levels so require and by not to 
                exceed [140] 170 percent, or [170 percent in 
                high cost areas] 215 percent in high cost 
                areas, 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 [140] 170 percent in any 
                geographical area where the Secretary finds 
                that cost levels so require and by not to 
                exceed [140] 170 percent, or [170 percent in 
                high cost areas] 215 percent in high cost 
                areas, 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 [140] 
        170 percent in any geographical area where the 
        Secretary finds that cost levels so require and by not 
        to exceed [140] 170 percent, or [170 percent in high 
        cost areas] 215 percent in high cost areas, 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 [140] 170 percent in any 
        geographical area where the Secretary finds that cost 
        levels so require and by not to exceed [140] 170 
        percent, or [170 percent in high cost areas] 215 
        percent in high cost areas, 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

           *       *       *       *       *       *       *


                                  
