[Federal Register Volume 66, Number 14 (Monday, January 22, 2001)]
[Notices]
[Pages 6647-6648]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-1839]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-4643-N-01]


Sections 202 and 811 Capital Advance Programs: Revised 
Development Cost Limits

AGENCY: Office of the Assistant Secretary for Housing-Federal Housing 
Commissioner, HUD.

ACTION: Notice.

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SUMMARY: This notice announces changes to the development cost limits 
for the Sections 202 and 811 Capital Advance Programs. The development 
cost limits were established in 1989 for the Section 811 group homes 
and in Fiscal Year (FY) 1999 were increased by 20 percent. Also in FY 
1999 the cost limits for elderly projects and independent living 
projects for persons with disabilities were replaced with the Section 
221(d)(3) per unit limits authorized by Congress in 1992.
    Even with last year's increase in the development cost limits, a 
number of nonprofit owners still need additional sources of funding to 
construct their projects. In an attempt to alleviate this problem, the 
base development limits from 1989 and 1992 respectively have been 
adjusted to 2000 using the Federal Reserve Bank of Minneapolis' 
Consumer Price Index (CPI) calculator which may be found on the 
internet at http://minneapolisfed.org/economy/calc/cpihome.html.

EFFECTIVE DATE: January 22, 2001.

FOR FURTHER INFORMATION CONTACT: Willie Spearmon, Director, Office of 
Housing Assistance and Grant Administration, Department of Housing and 
Urban Development, 451 7th St. SW, Washington, DC 20410, 202-708-3000. 
(This is not a toll-free number.) For hearing and speech-impaired 
persons, this number may be accessed via TTY by calling the Federal 
Information Relay Service at 1-800-877-8339.

SUPPLEMENTARY INFORMATION: Section 202 (12 U.S.C. 1701q), Supportive 
Housing for the Elderly, of the National Housing Act of 1959, requires 
the Secretary to periodically establish development cost limitations by 
market area for various types and sizes of supportive housing for the 
elderly by publishing a notice in the Federal Register. The statute 
also requires that the Secretary adjust the cost limitation not less 
than once annually to reflect changes in the general level of 
construction, reconstruction or rehabilitation costs.
    Section 811 (42 U.S.C. 8013), Supportive Housing for Persons with 
Disabilities, of the Cranston-Gonzales National Affordable Housing Act 
contains similar language.
    HUD has determined the best way to comply with this requirement is 
to adjust the base limits annually by changes in the CPI. We found the 
CPI not only easy to use but meeting Congressional intention.
    Therefore, the total development cost of the property or project 
attributable to dwelling use, adjusted by locality as described below, 
(less the incremental development cost and the capitalized operating 
costs associated with any excess amenities and design features the 
borrower must pay for) may not exceed:
    (1) For the elderly.
    For non-elevator structures:
$41,238 per family unit without a bedroom;
$47,548 per family unit with one bedroom;
$57,344 per family unit with two bedrooms.

    For elevator structures:
$43,398 per family unit without a bedroom;
$49,748 per family unit with one bedroom;
$60,493 per family unit with two bedrooms.

    (2) For persons with disabilities.
    (a) For independent living projects and dwelling units in 
multifamily developments, condominium and cooperative housing.

    For non-elevator structures:
$41,238 per family unit without a bedroom;
$47,548 per family unit with one bedroom;
$57,344 per family unit with two bedrooms;
$73,400 per family unit with three bedrooms;
$81,770 per family unit with four or more bedrooms.

    For elevator structures:
$43,398 per family unit without a bedroom;
$49,748 per family unit with one bedroom;
$60,493 per family unit with two bedrooms;
$78,257 per family unit with three bedrooms;
$85,902 per family unit with four or more bedrooms.
    (b) For group homes only.

[[Page 6648]]



                           Type of Disability
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                                                Physical and/   Chronic
               No. of residents                       or         mental
                                                developmental   illness
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2.............................................     $166,022     $160,262
3.............................................      178,533      172,340
4.............................................      191,045      183,069
5.............................................      203,556      193,798
6.............................................      216,054      204,527
7.............................................      221,547      209,653
8.............................................      227,040      214,778
9.............................................      236,972      223,212
10............................................      248,013      232,616
11............................................      256,835      240,065
12............................................      266,766      248,498
13............................................      277,308      257,140
14............................................      287,836      265,782
15............................................      298,365      274,409
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    These cost limits reflect those costs reasonable and necessary to 
develop a project of modest design that complies with HUD minimum 
property standards; the accessibility requirements of Sec. 891.120(b); 
and the project design and cost standards of Sec. 891.120 and 
Sec. 891.210.
    Increased development cost limits.
    (1) HUD may increase the development cost limits by up to 140 
percent in any geographic area where the cost levels require, and may 
increase the development cost limits by up to 160 percent on a project-
by-project basis. This increase may include covering additional costs 
to make dwelling units accessible through rehabilitation.
    (2) If HUD finds that high construction costs in Alaska, Guam, the 
Virgin Islands, or Hawaii make it infeasible to construct dwellings, 
without the sacrifice of sound standards of construction, design, and 
livability, within the development cost limits provided above, the 
amount of the capital advances may be increased to compensate for such 
costs. The increase may not exceed the limits established above 
(including any high cost area adjustment) by more than 50 percent.
    HUD expects to publish its next notice of change in the development 
cost limits in October 2001.

    Dated: January 12, 2001.
William C. Apgar,
Assistant Secretary for Housing-Federal Housing Commissioner.
[FR Doc. 01-1839 Filed 1-19-01; 8:45 am]
BILLING CODE 4210-27-P