[Federal Register Volume 78, Number 187 (Thursday, September 26, 2013)]
[Notices]
[Pages 59366-59368]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-23473]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5737-N-01]


Multifamily, Healthcare Facilities, and Hospital Mortgage 
Insurance Premiums for Fiscal Year (FY) 2014

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

ACTION: Notice.

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SUMMARY: In accordance with HUD regulations, this Notice announces the 
mortgage insurance premiums (MIPs) for Federal Housing Administration 
(FHA) Multifamily, Healthcare Facilities, and Hospital mortgage 
insurance programs that have commitments to be issued or reissued in FY 
2014. FY 2014 MIPs are the same as in FY 2013. In addition, the Notice 
clarifies that conventional or FHA-insured projects with existing low-
income housing tax credits (LIHTC), and other affordable projects that 
meet the affordability criteria as defined in this Notice, are eligible 
for the LIHTC MIPs as are projects with new LIHTC generated as a result 
of or in conjunction with an FY2014-insured loan. Clarification is also 
provided in regards to the upfront or first-year MIP amount charged for 
FHA mortgage insurance under Section 223(a)(7) of the National Housing 
Act, which is 50 basis points (bps) for both affordable and market rate 
properties for Multifamily, Healthcare Facilities, and Hospital 
mortgage insurance programs. This Notice does not apply to loans 
insured under the Risk Sharing programs of section 542(b) or 542(c) of 
the Housing and Community Development Act of 1992.

DATES: Effective Date: October 1, 2013.

FOR FURTHER INFORMATION CONTACT: Theodore K. Toon, Director, Office of 
Multifamily Development, Office of Housing, Department of Housing and 
Urban Development, 451 7th Street SW.,

[[Page 59367]]

Washington, DC 20410-8000, telephone number 202-402-8386 (this is not a 
toll free number). Hearing or speech-impaired individuals may access 
these numbers via TTY by calling the Federal Relay Service at 800-877-
8339 (this is a toll-free number).

SUPPLEMENTARY INFORMATION: 

I. Background

    HUD's mortgage insurance regulations at 24 CFR 207.254 provide 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 in the 
Federal Register for public comment only when there are premium 
changes. This notice announces that the FY 2014 MIPs are the same the 
FY 2013 MIPs, published in the Federal Register on August 15, 2012 (77 
FR 49007). Since HUD is not seeking to implement any premium changes 
for FY 2014 for the mortgage insurance programs listed in this notice, 
HUD is not seeking public comment. HUD is also issuing this notice to 
clarify that: (1) The first-year or upfront MIP mortgage insurance fee 
charged for Section 223(a)(7) loans for Multifamily, Healthcare 
Facilities, and Hospital mortgage insurance programs, and (2) the 
eligibility of properties with existing LIHTCs as a result of a 
previous transaction and other affordable projects, to benefit from the 
LIHTC MIPs.

II. MIPs for FHA's Mortgage Insurance Programs for FY2014

    The chart below announces the MIPs which will be in effect during 
FY2014 for the Multifamily, Healthcare Facilities, and Hospital 
mortgage insurance programs authorized under the National Housing Act 
(12 U.S.C. 1713 et seq.). Multifamily programs are administered by 
FHA's Office of Multifamily Housing Programs. Healthcare Facilities and 
the Hospital mortgage insurance programs are administered by FHA's 
Office of Healthcare Programs. The programs of these offices are listed 
separately on the chart.

III. Clarifying Upfront Insurance Fee Under Section 223(a)(7)

    The upfront or first-year MIP fee for mortgage insurance for 
projects with or without LIHTCs under Section 223(a)(7) is 50 bps for 
FHA insured mortgages under Multifamily, Healthcare Facilities, and 
Hospital mortgage insurance programs. These programs are denoted with 
two asterisks in the MIP chart below. The first-year insurance fee 
applies to both affordable and market-rate loan transactions and is 
collected at the closing of all Section 223(a)(7) loans.

IV. Projects With Existing Low-Income Housing Tax Credits or Equivalent 
Affordability Requirements, and Projects With Project-Based Section 8 
Contracts

    HUD is clarifying that projects with either new LIHTC generated as 
a result of or in conjunction with the new FHA financing and projects 
with existing LIHTC are eligible to benefit from the LIHTC MIPs. 
``Existing'' LIHTC is defined below. The eligibility of projects with 
existing LIHTC is intended to support the preservation of already-
operating, affordable housing for low-income renters.
    Eligible projects with ``existing'' LIHTCs must meet the following 
criteria of affordability consistent with guidance given in Mortgagee 
Letter 2010-21 \1\ to benefit from the LIHTC MIPs: (a) Projects that 
have a recorded regulatory agreement in effect for at least 15 years 
after final endorsement and monitored by competent public authority; 
(b) projects that meet at least the minimum LIHTC restrictions of 20 
percent of units at 50 percent of the Area Median Income (AMI); or 40 
percent of units at 60 percent of AMI, with economic rents (i.e., the 
portion paid by the tenants) on those units no greater than LIHTC 
rents; and (c) mixed income projects if the minimum low income unit 
rent and occupancy restrictions and regulatory agreement meet the above 
criteria.
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    \1\ Mortgagee Letter 2010-21 can be accessed at http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/letters/mortgagee/2010ml.
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    Loans for properties with an active Project-Based Section 8 
contract covering any of the units continue to be exempt from the 
increases established with the FY 2013 MIPs, which means that FY 2014 
loans are subject to the ``with LIHTC'' rates for the programs stated 
below. Loans with other affordability requirements, i.e., not LIHTC or 
Project-Based Section 8, may likewise be eligible for the ``with 
LIHTC'' rates, provided the affordability requirements are equivalent 
to all of the criteria described above for ``existing'' LIHTCs.

V. Positive Credit Subsidy Programs

    HUD will continue to suspend issuance and reissuance of commitments 
under two programs that have previously required positive credit 
subsidy: Section 221(d)(3) New Construction/Substantial Rehabilitation 
(NC/SR) for Nonprofit/Cooperative Mortgagors without LIHTC and Section 
223(d) Operating Loss Loans for Apartments.
    The MIPs to be in effect for FHA Firm Commitments issued or 
reissued in FY 2014 are shown in the chart below:

    Fiscal Year 2014 MIP Rates Multifamily, Healthcare Facilities and
                       Hospital Insurance Programs
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                                                           Basis points
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FHA Multifamily:                                          ..............
    207 Multifamily Housing New Construction/Sub Rehab                70
     without LIHTC......................................
    207 Multifamily Housing New Construction/Sub Rehab                45
     with LIHTC.........................................
    207 Manufactured Home Parks without LIHTC...........              70
    207 Manufactured Home Parks with LIHTC..............              45
    221(d)(3) New Construction/Substantial                           N/A
     Rehabilitation (NC/SR) for Nonprofit/Cooperative
     mortgagor without LIHTC............................
    221(d)(3) Limited dividend with LIHTC...............              45
    221(d)(4) NC/SR without LIHTC.......................              65
    221(d)(4) NC/SR with LIHTC..........................              45
    220 Urban Renewal Housing without LIHTC.............              70
    220 Urban Renewal Housing with LIHTC................              45
    213 Cooperative.....................................              70
    207/223(f) Refinance or Purchase for Apartments                 * 60
     without LIHTC......................................
    207/223(f) Refinance or Purchase for Apartments with            * 45
     LIHTC..............................................
    223(a)(7) Refinance of Apartments without LIHTC.....           ** 50

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    223(a)(7) Refinance of Apartments with LIHTC........           ** 45
    223d Operating Loss Loan for Apartments.............             N/A
    231 Elderly Housing without LIHTC...................              70
    231 Elderly Housing with LIHTC......................              45
    241(a) Supplemental Loans for Apartments/coop                     95
     without LIHTC......................................
    241(a) Supplemental Loans for Apartments/coop with                45
     LIHTC..............................................
FHA Healthcare Facilities (Nursing Homes, ALF & B&C):     ..............
    232 NC/SR Healthcare Facilities without LIHTC.......              77
    232 NC/SR--Assisted Living Facilities with LIHTC....              45
    232/223(f) Refinance for Healthcare Facilities                  * 65
     without LIHTC......................................
    232/223(f) Refinance for Healthcare Facilities with             * 45
     LIHTC..............................................
    223(a)(7) Refinance of Healthcare Facilities without           ** 55
     LIHTC..............................................
    223(a)(7) Refinance of Healthcare Facilities with              ** 45
     LIHTC..............................................
    223d Operating Loss Loan for Healthcare Facilities..              95
    241(a) Supplemental Loans for Healthcare Facilities               72
     without LIHTC......................................
    241(a) Supplemental Loans for Healthcare Facilities               45
     with LIHTC.........................................
FHA Hospitals:                                            ..............
    242 Hospitals.......................................              70
    223(a)(7) Refinance of Existing FHA-insured Hospital           ** 55
    223(f) Refinance or Purchase of Existing Non-FHA-               * 65
     insured Hospital...................................
    241(a) Supplemental Loans for Hospitals.............              65
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* The first-year or upfront MIP fee for loans insured under Section
  223(f) for Multifamily, Healthcare Facilities, and Hospital programs
  is 100 basis (one percent) points. The annual MIP amounts are
  otherwise shown above for the respective Section 223(f) programs.
** The first-year or upfront MIP fee for loans under Section 223(a)(7)
  for Multifamily, Healthcare Facilities, and Hospital programs is 50
  basis points. The annual MIP amounts are otherwise shown above for the
  respective Section 223(a)(7) programs.


    Dated: September 20, 2013.
Carol J. Galante,
Assistant Secretary for Housing--Federal Housing Commissioner.
[FR Doc. 2013-23473 Filed 9-25-13; 8:45 am]
BILLING CODE 4210-67-P