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

CourtHousing And Urban Development Department
Citation87 FR 15258
Record Number2022-05578
Published date17 March 2022
Federal Register, Volume 87 Issue 52 (Thursday, March 17, 2022)
[Federal Register Volume 87, Number 52 (Thursday, March 17, 2022)]
                [Notices]
                [Pages 15258-15259]
                From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
                [FR Doc No: 2022-05578]
                [[Page 15258]]
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                DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
                [Docket No. FR-6314-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 Section 206A of the National Housing Act,
                HUD is providing notice of adjustment to the Basic Statutory Mortgage
                Limits for Multifamily Housing Programs for Calendar Year 2022. 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
                2022.
                DATES: Applicable date: January 1, 2022.
                FOR FURTHER INFORMATION CONTACT: Thomas Bernaciak, Deputy 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). Hearing or
                speech-impaired individuals may access this number through TTY by
                calling the toll-free Federal Information Relay Service at (800) 877-
                8339.
                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 states 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 the Federal
                Register notice published on January 31, 2013 (78 FR 6856, 6879).
                 The percentage change in the CPI-U used for the HOEPA adjustment is
                a 4.2 percent increase and the effective date of the HOEPA adjustment
                is January 1, 2022. The Dollar Amounts under Section 206A have been
                adjusted correspondingly and have an effective date of January 1, 2022,
                in accordance with the Federal Register notice published on November 2,
                2021 (86 FR 60357).
                 These revised statutory limits may be applied to FHA multifamily
                mortgage insurance applications submitted or amended on or after
                January 1, 2022, so long as the loan has not been initially endorsed.
                 The adjusted Dollar Amounts for Calendar Year 2022 are shown below.
                Basic Statutory Mortgage Limits for Calendar Year 2022 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....................................... $57,197 $66,715
                1....................................... 63,360 73,923
                2....................................... 75,683 90,643
                3....................................... 93,285 113,526
                4+...................................... 105,608 128,367
                ------------------------------------------------------------------------
                Section 213--Cooperatives
                ------------------------------------------------------------------------
                 Bedrooms Non-elevator Elevator
                ------------------------------------------------------------------------
                0....................................... $61,986 $66,002
                1....................................... 71,472 74,778
                2....................................... 86,197 90,930
                3....................................... 110,334 117,636
                4+...................................... 122,920 129,131
                ------------------------------------------------------------------------
                Section 234--Condominium Housing
                ------------------------------------------------------------------------
                 Bedrooms Non-elevator Elevator
                ------------------------------------------------------------------------
                0....................................... $63,251 $66,564
                1....................................... 72,930 76,305
                2....................................... 87,956 92,789
                3....................................... 112,588 120,039
                4+...................................... 125,427 131,765
                ------------------------------------------------------------------------
                Section 221(d)(4)--Moderate Income Housing
                ------------------------------------------------------------------------
                 Bedrooms Non-elevator Elevator
                ------------------------------------------------------------------------
                0....................................... $56,922 $61,488
                1....................................... 64,617 70,490
                2....................................... 78,107 85,717
                3....................................... 98,036 110,887
                4+...................................... 110,779 121,723
                ------------------------------------------------------------------------
                Section 231--Housing for the Elderly
                ------------------------------------------------------------------------
                 Bedrooms Non-elevator Elevator
                ------------------------------------------------------------------------
                0....................................... $54,118 $61,488
                1....................................... 60,501 70,490
                2....................................... 72,248 85,717
                3....................................... 86,947 110,887
                4+...................................... 102,221 121,723
                ------------------------------------------------------------------------
                Section 207--Manufactured Home Parks per Space--$26,258
                Indexing of per Unit Limit for Substantial Rehabilitation for Calendar
                Year 2022
                [[Page 15259]]
                 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 2022 base amount
                per dwelling unit to determine substantial rehabilitation for FHA
                insured loan programs is $16,983.
                 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, 2022, so long as the loan has not been
                initially endorsed.
                Environmental Impact
                 This notice involves the statutorily required establishment of
                mortgage limits and discretionary establishment of cost limits which do
                not constitute development decisions 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).
                Lopa P. Kolluri,
                Principal Deputy Assistant Secretary for the Office of Housing--Federal
                Housing Administration.
                [FR Doc. 2022-05578 Filed 3-16-22; 8:45 am]
                BILLING CODE 4210-67-P
                

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