[Federal Register Volume 76, Number 132 (Monday, July 11, 2011)]
[Notices]
[Pages 40741-40743]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-17233]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5534-N-01]


Federal Housing Administration (FHA) Mortgage Insurance Premiums 
for Multifamily Housing Programs, Health Care Facilities and Hospitals 
and Credit Subsidy Obligations for Fiscal Year (FY) 2011

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 FHA Multifamily Housing, Health Care Facilities, and Hospital 
Mortgage Insurance programs that have commitments to be issued or 
reissued in FY 2011. The FY 2011 MIPs are the same as in FY 2010. For 
the third consecutive fiscal year, the MIPs remain unchanged for FHA's 
mortgage insurance programs. In addition to announcing MIPs for FY 
2011, this notice announces that the risk categories

[[Page 40742]]

incurring positive credit subsidy obligations for firm commitments 
issued or reissued in FY 2011 are the same as those in FY 2010. There 
are three positive credit subsidy risk categories: (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.

DATES: Effective Date: July 11, 2011.

FOR FURTHER INFORMATION CONTACT: Iris Agubuzo, Office of Multifamily 
Development, Office of Housing, Department of Housing and Urban 
Development, 451 7th Street, SW, Washington, DC 20410-8000; telephone: 
202-402-2662 (this is not a toll-free number). Hearing- or speech-
impaired individuals may access these numbers through TTY by calling 
the Federal 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 FY 2011 for the 
multifamily mortgage insurance programs, health care facilities, and 
hospital insurance programs listed in this notice, a notice for public 
comment is not required. HUD is issuing this notice to ensure clarity 
on the appropriate MIPs charged for FY 2011, and is not seeking public 
comments.

II. Low-Income Housing Tax Credits

    MIP rates for many FHA mortgage insurance programs depend on 
whether or not the sponsor is combining low-income housing tax credits 
(LIHTC) with the FHA-insured loan. The LIHTC program is an indirect 
Federal subsidy used to finance the development of affordable rental 
housing for low-income households.

III. MIPs for FHA's Mortgage Insurance Programs for FY2011

    In the chart below, this notice announces the MIPs which will be in 
effect during FY 2011 for the multifamily housing health care 
facilities, and hospital mortgage insurance programs-authorized under 
the National Housing Act (12 U.S.C. 1713 et seq.). The multifamily 
housing programs are administered by FHA's Office of Multifamily 
Housing Programs. The health care facilities and the hospital insurance 
programs are administered by FHA's Office of Healthcare Programs. The 
programs of these offices are listed separately on the chart.

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 
LIHTC for the programs authorized under section 221(d)(3) or section 
241(a) of the National Housing Act, 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 FY 2011 are shown in the chart below.

 Fiscal Year 2011 MIP Rates Multifamily Housing, Health Care Facilities
                     and Hospital Insurance Programs
------------------------------------------------------------------------
                                                          Basis points
------------------------------------------------------------------------
                             FHA Apartments
------------------------------------------------------------------------
207 Multifamily Housing New Construction/Sub Rehab                    50
 without LIHTC........................................
207 Multifamily Housing New Construction/Sub Rehab                    45
 with 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                      *45
 without 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                    45
 LIHTC................................................
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          FHA Health Care Facilities (Nursing Homes, ALF & B&C)
------------------------------------------------------------------------
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                      *50
 without LIHTC........................................

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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                    45
 LIHTC................................................
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
223(f) Refinance or Purchase of Existing Non-FHA-                     50
 insured Hospital.....................................
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
  100 basis (one percent) points for the first year, as specified in
  sections 24 CFR 207.252b(a). The first year MIP for a Section 232/
  223(f) health care facility remains at 100 basis points (one percent).


    Dated: July 1, 2011.
Robert C. Ryan,
Acting Assistant Secretary for Housing--Federal Housing Commissioner.
[FR Doc. 2011-17233 Filed 7-8-11; 8:45 am]
BILLING CODE 4210-67-P