[Federal Register Volume 88, Number 67 (Friday, April 7, 2023)]
[Notices]
[Pages 20900-20901]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-07344]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-6394-N-01]


Annual Indexing of Basic Statutory Mortgage Limits for 
Multifamily Housing Programs; Annual Indexing of Substantial 
Rehabilitation Threshold

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

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: In accordance with the National Housing Act, HUD is providing 
notice of adjustment to the Basic Statutory Mortgage Limits for 
Multifamily Housing Programs for calendar year 2023. HUD is also 
providing notice of adjustment to the per unit cost threshold for 
determining substantial rehabilitation in the Multifamily Housing 
Programs pursuant to its administrative guidance for calendar year 
2023.

DATES: Applicable January 1, 2023.

FOR FURTHER INFORMATION CONTACT: Willie Fobbs III, Director, Office of 
Multifamily Production, Department of Housing and Urban Development, 
451 Seventh Street SW, Washington, DC 20410-8000, telephone (202) 402-
3242 (this is not a toll-free number). HUD welcomes and is prepared to 
receive calls from individuals who are deaf or hard of hearing, as well 
as individuals with speech or communication disabilities. To learn more 
about how to make an accessible telephone call, please visit: https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs.

SUPPLEMENTARY INFORMATION: 
    Section 206A of the National Housing Act (12 U.S.C. 1712a) provides 
authority for the annual adjustment for the following FHA multifamily 
statutory dollar limits:

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)).

    Section 206A goes on to state that the preceding ``Dollar Amounts'' 
shall be adjusted annually (commencing in 2004) on the effective date 
of the Federal Reserve Board's adjustment of the $400 figure in the 
Home Ownership and Equity Protection Act of 1994 (HOEPA). 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 Federal Reserve Board for purposes of the 
above-described HOEPA adjustment.

(b) Notification

    The Federal Reserve Board on a timely basis shall notify the 
Secretary, or his designee, in writing of the adjustment described in 
subsection (a) and of the effective date of such adjustment to permit 
the Secretary to undertake publication in the Federal Register of 
corresponding adjustments to the Dollar Amounts. The dollar amount of 
any adjustment shall be rounded to the next lower dollar.
    Note that 206A has not been updated to reflect the fact that HOEPA 
has been revised to use $1,000 as the basis for the adjustment rather 
than $400, and the Consumer Finance Protection Bureau has replaced the 
Federal Reserve Board in administering the adjustment. These changes 
were made by the Dodd-Frank Wall Street Reform and Consumer Protection 
Act's amendments to the Truth in Lending Act, as further explained in 
the regulatory implementation of said changes found in 78 FR 6856, 6879 
(Jan. 31, 2013).
    The percentage change in the CPI-U used for the HOEPA adjustment is 
an 8.3 percent increase and the effective date of the HOEPA adjustment 
is January 1, 2023. The Dollar Amounts under section 206A have been 
adjusted correspondingly and have an effective date of January 1, 2023. 
(See 87 FR 78831, Dec. 23, 2022).
    These revised statutory limits may be applied to FHA multifamily 
mortgage insurance applications submitted or amended on or after 
January 1, 2023, so long as the loan has not been initially endorsed.
    The adjusted Dollar Amounts for calendar year 2023 are shown below.

Basic Statutory Mortgage Limits for Calendar Year 2023 Multifamily Loan 
Program

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

------------------------------------------------------------------------
                Bedrooms                   Non-elevator      Elevator
------------------------------------------------------------------------
0.......................................         $61,944         $72,252
1.......................................          68,618          80,058
2.......................................          81,964          98,166
3.......................................         101,027         122,948
4+......................................         114,373         139,021
------------------------------------------------------------------------

Section 213--Cooperatives

------------------------------------------------------------------------
                Bedrooms                   Non-elevator      Elevator
------------------------------------------------------------------------
0.......................................         $67,130         $71,480
1.......................................          77,404          80,984
2.......................................          93,351          98,477
3.......................................         119,491         127,399
4+......................................         133,122         139,848
------------------------------------------------------------------------

Section 234--Condominium Housing

------------------------------------------------------------------------
                Bedrooms                   Non-elevator      Elevator
------------------------------------------------------------------------
0.......................................         $68,500         $72,088
1.......................................          78,983          82,638
2.......................................          95,256         100,490
3.......................................         121,932         130,002
4+......................................         135,837         142,701
------------------------------------------------------------------------

Section 221(d)(4)--Moderate Income Housing

------------------------------------------------------------------------
                Bedrooms                   Non-elevator      Elevator
------------------------------------------------------------------------
0.......................................         $61,646         $66,591
1.......................................          69,980          76,340
2.......................................          84,589          92,831
3.......................................         106,172         120,090
4+......................................         119,973         131,826
------------------------------------------------------------------------


[[Page 20901]]

Section 231--Housing for the Elderly

------------------------------------------------------------------------
                Bedrooms                   Non-elevator      Elevator
------------------------------------------------------------------------
0.......................................         $58,609         $66,591
1.......................................          65,522          76,340
2.......................................          78,244          92,831
3.......................................          94,163         120,090
4+......................................         110,705         131,826
------------------------------------------------------------------------

Section 207--Manufactured Home Parks
    Per Space--$28,437

Indexing of per Unit Limit for Substantial Rehabilitation for Calendar 
Year 2023

    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 5.1.2.A.2.b of the 2020 MAP 
Guide requires that this base amount be annually adjusted for inflation 
based on the percentage change published by the Bureau of Labor 
Statistics of the Department of Labor or other inflation cost index. 
Applying the HOEPA adjustment to the base amount, the 2023 base amount 
per dwelling unit to determine substantial rehabilitation for FHA 
insured loan programs is $18,392.
    This per unit cost threshold for substantial rehabilitation may be 
applied to FHA multifamily mortgage insurance applications submitted or 
amended on or after January 1, 2023, so long as the loan has not been 
initially endorsed.

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).

Julia R. Gordon,
Assistant Secretary for Housing, Federal Housing Commissioner.
[FR Doc. 2023-07344 Filed 4-6-23; 8:45 am]
BILLING CODE 4210-67-P