[Federal Register Volume 73, Number 186 (Wednesday, September 24, 2008)]
[Notices]
[Pages 55124-55125]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-22333]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5231-N-01]


Multifamily Mortgage Insurance Premiums (MIPs) and Credit Subsidy 
Obligations for Fiscal Year (FY) 2009

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

ACTION: Notice.

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SUMMARY: This notice announces the mortgage insurance premiums (MIPs) 
for Federal Housing Administration (FHA) multifamily mortgage insurance 
programs that have commitments to be issued or reissued in Fiscal Year 
(FY) 2009. The FY2009 MIPs are the same as in FY2008. This annual 
notice includes for the first time two additional MIPs for the hospital 
mortgage insurance programs: (1) Supplemental loans for hospitals; and 
(2) refinancing for existing FHA-insured hospitals. These are not new 
MIPs and the amounts charged for them will be the same as in previous 
years.
    In addition to announcing MIPs for FY2009, this notice announces 
that credit subsidy obligations are required for firm commitments 
issued or reissued for FHA's three positive credit subsidy programs: 
(1) Section 221(d)(3) New Construction/Substantial Rehabilitation for 
Nonprofit/Cooperatives; (2) Section 241(a) Supplemental Loans for 
apartments only; and (3) Section 223(d) Operating Loss Loans. These 
obligations are not new for FY2009.

DATES: Effective Date: October 1, 2008.

FOR FURTHER INFORMATION CONTACT: Eric Stevenson, Deputy Director, 
Policy Division, Office of Multifamily Development, Department of 
Housing and Urban Development, 451 Seventh Street, SW., Washington, DC 
20410-8000; telephone: 202-708-1142 (this is not a toll-free number). 
Hearing- or speech-impaired individuals may access these numbers 
through TTY by calling the Federal Information Relay Service at 800-
877-8339 (this is a toll-free number).

SUPPLEMENTARY INFORMATION:

I. Background

    HUD's multifamily housing mortgage insurance regulation at 24 CFR 
207.254 provides as follows:

    Notice of future premium changes will be published in the 
Federal Register. The Department will propose MIP changes for 
multifamily mortgage insurance programs and provide a 30-day public 
comment period for the purpose of accepting comments on whether the 
proposed changes are appropriate.

    Under this regulation, HUD is required to publish a notice for 
public comment only when there are premium ``changes.'' Since HUD is 
not seeking to implement any premium changes for FY2009 for the 
multifamily mortgage insurance programs listed in this notice, a notice 
and public comment is not required. HUD is merely providing this notice 
to ensure that there is clarity as to the multifamily insured housing 
MIPs for FY2009, and is not seeking public comments.

II. Low-Income Housing Tax Credits

    MIP rates for many multifamily FHA mortgage programs depend on 
whether or not the sponsor is combining low-income housing tax credits 
with the FHA-insured loan. Under the Department of Housing and Urban 
Development Reform Act of 1989 (Pub. L. 101-235, approved December 15, 
1989), and HUD's implementing instructions, a sponsor is required to 
submit a certification regarding governmental assistance, including any 
low-income housing tax credits, with mortgage insurance applications.

III. MIPs for Multifamily Programs for FY 2009

    This notice announces the MIPs that will be in effect during FY2009 
for the multifamily housing programs listed in this notice and for 
FHA's hospital mortgage insurance program authorized under section 242 
of the National Housing Act, 12 U.S.C. 1715z-7. Section 241(a) 
Supplemental Loans and Section 223(a)(7) Refinancing of existing FHA-
insured mortgages under Section 242 Hospital Program, which is overseen 
by FHA's Office of Insured Health Care Facilities, have been added for 
the first time to the MIP table in this annual notice. No changes in 
the basis points charged on multifamily loan and hospital programs are 
proposed for FY2009. The effective date for these mortgage insurance 
premiums is October 1, 2008.

Credit Subsidy

    This notice also announces that a credit subsidy obligation 
continues to be required for the three sections of the National Housing 
Act listed below. However, if the mortgagor's equity is produced from 
low-income housing tax credits (LIHTC) for Sections 221(d)(3) or 
241(a), a credit subsidy obligation will not be required. For the loans 
requiring a credit subsidy obligation, the program office inserts a 
special clause into the firm commitment or an invitation pertaining to 
a Site Appraisal and Market Analysis (SAMA)/Feasibility/Multifamily 
Accelerated Processing (MAP) letter. The clause states that the firm 
commitment is contingent upon availability of funds.
     Section 221(d)(3) New Construction/Substantial 
Rehabilitation for Nonprofit/Cooperatives.
     Section 223(d) Operating Loss Loans for both apartments 
and health care facilities.
     Section 241(a) Supplemental Loans for additions or 
improvements for apartments only.
    The mortgage insurance premiums to be in effect for FHA firm 
commitments issued or reissued in FY2009 are shown in the table below:

[[Page 55125]]



                       Fiscal Year 2009 MIP Rates
                [Multifamily Loans and Hospital Programs]
------------------------------------------------------------------------
                                                           Basis points
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                     FHA Apartments
 
207 Multifamily Housing New Construction/Sub Rehab                    50
 without LIHTC..........................................
207 Multifamily Housing New Construction/Sub Rehab with               45
 LIHTC..................................................
207 Manufactured Home Parks without LIHTC...............              50
207 Manufactured Home Parks with LIHTC..................              45
221(d)(3) New Construction/Substantial Rehabilitation                 80
 (NC/SR) for Nonprofit/Cooperative Mortgagor without
 LIHTC..................................................
221(d)(3) Limited dividend with LIHTC...................              45
221(d)(4) NC/SR without LIHTC...........................              45
221(d)(4) NC/SR with LIHTC..............................              45
220 Urban Renewal Housing without LIHTC.................              50
220 Urban Renewal Housing with LIHTC....................              45
213 Cooperative.........................................              50
207/223(f) Refinance or Purchase for Apartments without              *45
 LIHTC..................................................
207/223(f) Refinance or Purchase for Apartments with                 *45
 LIHTC..................................................
223(a)(7) Refinance of Apartments without LIHTC.........              45
223(a)(7) Refinance of Apartments with LIHTC............              45
223d Operating Loss Loan for Apartments.................              80
241(a) Supplemental Loans for Apartments/coop without                 80
 LIHTC..................................................
241(a) Supplemental Loans for Apartments/coop with LIHTC              45
 
               FHA Health Care Facilities
 
232 NC/SR Health Care Facilities without LIHTC..........              57
232 NC/SR--Assisted Living Facilities with LIHTC........              45
231 Elderly Housing without LIHTC.......................              50
231 Elderly Housing with LIHTC..........................              45
232/223(f) Refinance for Health Care Facilities without              *50
 LIHTC..................................................
232/223(f) Refinance for Health Care Facilities with                 *45
 LIHTC..................................................
223(a)(7) Refinance of Health Care Facilities without                 50
 LIHTC..................................................
223(a)(7) Refinance of Health Care Facilities with LIHTC              45
223d Operating Loss Loan for Health Care Facilities.....              80
241(a) Supplemental Loans for Health Care Facilities                  57
 without LIHTC..........................................
241(a) Supplemental Loans for Health Care Facilities                  45
 with LIHTC.............................................
 
                      FHA Hospitals
 
242 Hospitals...........................................              50
223(a)(7) Refinance of Existing FHA-insured Hospital....              50
241(a) Supplemental Loans for Hospitals.................              50
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*The First Year MIP for the section 207/223(f) loans for apartments is
  one percent for the first year, as specified in sections 24 CFR
  207.232b(a). The first year MIP for a 232/223(f) health care facility
  remains at 100 basis points.


    Dated: September 15, 2008.
Brian D. Montgomery,
Assistant Secretary for Housing--Federal Housing Commissioner.
 [FR Doc. E8-22333 Filed 9-23-08; 8:45 am]
BILLING CODE 4210-67-P