[Federal Register Volume 70, Number 5 (Friday, January 7, 2005)]
[Notices]
[Page 1444]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-305]


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FEDERAL HOUSING FINANCE BOARD

[No. 2004-N-13]


Notice of Annual Adjustments

AGENCY: Federal Housing Finance Board.

ACTION: Notice.

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SUMMARY: The Federal Housing Finance Board (Finance Board) has adjusted 
the cap on average total assets that defines a ``Community Financial 
Institution'' (CFI) and the limits on annual compensation for Federal 
Home Loan Bank (Bank) directors based on the annual percentage increase 
in the Consumer Price Index for all urban consumers (CPI-U), as 
published by the U.S. Department of Labor (DOL). The Finance Board also 
has made similar adjustments to the maximum dollar limits on certain 
allocations by a Bank of its annual required Affordable Housing Program 
(AHP) contributions.

FOR FURTHER INFORMATION CONTACT: Scott L. Smith, Associate Director, by 
telephone at (202) 408-2991 or by electronic mail at [email protected], 
or Mark Edward Stover, Senior Economist, by telephone at (202) 408-2828 
or by electronic mail at [email protected]. Send regular mail to the 
Federal Housing Finance Board, Office of Supervision, Regulations and 
Research, 1777 F Street, NW., Washington, DC 20006.

SUPPLEMENTARY INFORMATION: The Bank Act and Finance Board regulations 
require publication of annual adjustments to the following dollar 
amounts, based on any increase in the CPI-U, as published by the DOL:
     The cap on average total assets that defines a CFI (CFI 
Asset Cap). See 12 U.S.C. 1422(13) and 12 CFR 925.1.
     The limits on annual compensation for Bank directors. See 
12 U.S.C. 1427(i)(2) and 12 CFR 918.3(a).
     Maximum dollar limits allocations by a Bank of its annual 
required AHP contributions towards homeownership set-aside programs and 
an additional homeownership set-aside program assisting first-time 
homebuyers, and from its annual required AHP contribution for the 
subsequent year to the current year's competitive application program. 
See 12 CFR 951.3(a)(1)-(2).
    These annual adjustments, which are effective January 1, 2005, are 
based on the percentage increase in the CPI-U from November 2003 to 
November 2004. The CPI-U increased 3.5 percent from November 2003 to 
November 2004.
    The Finance Board uses data from November rather than waiting for 
the December data, which is published in mid-January, in order to 
provide notice to the Banks as close to the January 1st effective date 
as possible. This is consistent with the practice of other Federal 
agencies that rely on other than December data when calculating annual 
inflation adjustments so they can announce their adjustments prior to 
the effective date of January 1. The Finance Board also uses data that 
has not been seasonally adjusted. The DOL encourages the use of CPI-U 
data that has not been seasonally adjusted in ``escalation agreements'' 
because seasonal factors are updated annually and seasonally adjusted 
data are subject to revision for up to five years following the 
original release. Unadjusted data are not routinely subject to 
revision, and previously published unadjusted data are corrected only 
when significant calculation errors are discovered.
    Based on the 3.5 percent increase in the CPI-U, the Finance Board 
has made the following adjustments, effective January 1, 2005:
     CFI Asset Cap. The CFI Asset Cap increased to $567 million 
(2004 limit was $548 million). The Finance Board arrived at the 
adjusted limit of $567 million by rounding to the nearest million.\1\
     Bank Director Compensation. The annual compensation limits 
for Bank directors increased for a chairperson to $28,364 (2004 limit 
was $27,405), for a vice-chairperson to $22,692 (2004 limit was 
$21,924), and for all other board members to $17,019 (2004 limit was 
$16,443). The Finance Board arrived at these adjusted annual 
compensation limits by rounding to the nearest dollar.\1\
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    \1\ Since the calculations are based on cumulative CPI-U changes 
applied to the limits as they first appeared in Finance Board 
regulations, the changes are not distorted over time by rounding.
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     AHP. The limit on contributions towards homeownership set-
aside programs increased to $3.2 million (2004 limit was $3.1 million). 
The limit on contributions towards an additional first-time homebuyer 
set-aside program remains at $1.6 million. The limit on allocations 
from a Bank's annual required AHP contribution for the subsequent year 
to the current year's competitive application program increased to $3.2 
million (2004 limit was $3.1 million). The limits on allocations from 
AHP contributions are rounded to the nearest $100,000.\1\

    Dated: December 30, 2004.

    By the Federal Housing Finance Board.
Ronald A. Rosenfeld,
Chairman.
[FR Doc. 05-305 Filed 1-6-05; 8:45 am]
BILLING CODE 6725-01-P