[Federal Register Volume 85, Number 108 (Thursday, June 4, 2020)]
[Notices]
[Pages 34460-34461]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-12084]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-6212-N-01]


Annual Indexing of Basic Statutory Mortgage Limits for 
Multifamily Housing Programs

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

ACTION: Notice.

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SUMMARY: In accordance with Section 206A of the National Housing Act, 
HUD has adjusted the Basic Statutory Mortgage Limits for Multifamily 
Housing Programs for Calendar Year 2020.

DATES: Applicable Date: January 1, 2020.

FOR FURTHER INFORMATION CONTACT: Patricia M. Burke, Acting Director, 
Office of Multifamily Development, Department of Housing and Urban 
Development, 451 Seventh Street SW, Washington, DC 20410-8000, 
telephone (202) 402-5693 (this is not a toll-free number). Hearing or 
speech-impaired individuals may access this number through TTY by 
calling Federal Relay Service at (800) 877-8339 (this is a toll-free 
number).

SUPPLEMENTARY INFORMATION: The FHA Down Payment Simplification Act of 
2002 (Pub. L. 107-326, approved December 4, 2002) amended the National 
Housing Act by adding a new Section 206A (12 U.S.C. 1712a). Under 
Section 206A, the following are affected:

    I. Section 207(c)(3)(A) (12 U.S.C. 1713(c)(3)(A));
    II. Section 213(b)(2)(A) (12 U.S.C. 1715e(b)(2)(A));
    III. Section 220(d)(3)(B)(iii)(I) (12 U.S.C. 
1715k(d)(3)(B)(iii)(I));
    IV. Section 221(d)(4)(ii)(I) (12 U.S.C. 1715l(d)(4)(ii)(I));
    V. Section 231(c)(2)(A) (12 U.S.C. 1715v(c)(2)(A)); and
    VI. Section 234(e)(3)(A) (12 U.S.C. 1715y(e)(3)(A)).

    The Dollar Amounts in these sections are the base per unit 
statutory limits for Federal Housing Administration's (FHA) multifamily 
mortgage programs collectively referred to as the `Dollar Amounts.' 
They are adjusted annually (commencing in 2004) on the effective date 
of the Consumer Financial Protection Bureau's (CFPB's) adjustment of 
the $400 figure in the Home Ownership and Equity Protection Act of 1994 
(HOEPA) (Pub. L. 103-325, approved September 23, 1994). The adjustment 
of the Dollar Amounts shall be calculated using the percentage change 
in the Consumer Price Index for All Urban Consumers (CPI-U) as applied 
by the CFPB for purposes of the above-described HOEPA adjustment.
    The percentage change in the CPI-U used for the HOEPA adjustment is 
2.3 percent and the effective date of the HOEPA adjustment is January 
1, 2020. The Dollar Amounts under Section 206A have been adjusted 
correspondingly and have an effective date of January 1, 2020.
    These revised statutory limits, high cost areas and per unit cost 
thresholds for substantial rehabilitation may be applied to FHA 
multifamily mortgage insurance applications submitted or

[[Page 34461]]

amended on or after January 1, 2020, so long as the loan has not been 
initially endorsed.
    The adjusted Dollar Amounts for Calendar Year 2020 are shown below:

Basic Statutory Mortgage Limits for Calendar Year 2020

Multifamily Loan Program

Section 207--Multifamily Housing
Section 207 pursuant to Section 223(f)--Purchase or Refinance Housing
Section 220--Housing in Urban Renewal Areas

------------------------------------------------------------------------
                Bedrooms                   Non-elevator      Elevator
------------------------------------------------------------------------
0.......................................         $54,892         $64,026
1.......................................          60,807          70,944
2.......................................          72,633          86,990
3.......................................          89,525         108,951
4+......................................         101,352         123,193
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Section 213--Cooperatives

------------------------------------------------------------------------
                Bedrooms                   Non-elevator      Elevator
------------------------------------------------------------------------
0.......................................         $59,488         $63,342
1.......................................          68,592          71,764
2.......................................          82,723          87,265
3.......................................         105,887         112,895
4+......................................         117,966         123,927
------------------------------------------------------------------------

Section 234--Condominium Housing

------------------------------------------------------------------------
                Bedrooms                   Non-elevator      Elevator
------------------------------------------------------------------------
0.......................................         $60,702         $63,881
1.......................................          69,991          73,230
2.......................................          84,411          89,049
3.......................................         108,050         115,201
4+......................................         120,372         126,454
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Section 221(d)(4)--Moderate Income Housing

------------------------------------------------------------------------
                Bedrooms                   Non-elevator      Elevator
------------------------------------------------------------------------
0.......................................         $54,628         $59,010
1.......................................          62,013          67,649
2.......................................          74,959          82,262
3.......................................          94,085         106,418
4+......................................         106,314         116,817
------------------------------------------------------------------------

Section 231--Housing for the Elderly

------------------------------------------------------------------------
                Bedrooms                   Non-elevator      Elevator
------------------------------------------------------------------------
0.......................................         $51,937         $59,010
1.......................................          58,063          67,649
2.......................................          69,336          82,262
3.......................................          83,443         106,418
4+......................................          98,101         116,817
------------------------------------------------------------------------

Section 207--Manufactured Home Parks
Per Space--$25,200

Per Unit Limit for Substantial Rehabilitation for Calendar Year 2020

    The 2016 Multifamily Accelerated Processing (MAP) Guide established 
a base amount of $15,000 per unit to define substantial rehabilitation 
for FHA insured loan programs. Section 5.1.D.2 of the MAP guide 
requires that this base amount be adjusted periodically based on the 
percentage change published by the CFPB or other inflation cost index 
published by HUD. Applying the HOEPA adjustment to the base amount, the 
2020 base amount per dwelling unit to determine substantial 
rehabilitation for FHA insured loan programs is $16,299.

Environmental Impact

    This issuance establishes mortgage and cost limits that do not 
constitute a development decision affecting the physical condition of 
specific project areas or building sites. Accordingly, under 24 CFR 
50.19(c)(6), this notice is categorically excluded from environmental 
review under the National Environmental Policy Act of 1969 (42 U.S.C. 
4321).

    Dated: June 1, 2020.
John Garvin,
General Deputy Assistant Secretary for Housing.
[FR Doc. 2020-12084 Filed 6-3-20; 8:45 am]
 BILLING CODE 4210-67-P