[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]
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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.
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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
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Bedrooms Non-elevator Elevator
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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
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Section 213--Cooperatives
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Bedrooms Non-elevator Elevator
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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
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Section 234--Condominium Housing
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Bedrooms Non-elevator Elevator
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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
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Section 221(d)(4)--Moderate Income Housing
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Bedrooms Non-elevator Elevator
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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
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[[Page 20901]]
Section 231--Housing for the Elderly
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Bedrooms Non-elevator Elevator
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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
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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