Notice2021-19496
Annual Indexing of Basic Statutory Mortgage Limits for Multifamily Housing Programs; Annual Indexing of Substantial Rehabilitation Threshold
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
September 9, 2021
Effective
January 1, 2021
Issuing agencies
Housing and Urban Development Department
Abstract
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 2021. 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 2021.
Full Text
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<title>Federal Register, Volume 86 Issue 172 (Thursday, September 9, 2021)</title>
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[Federal Register Volume 86, Number 172 (Thursday, September 9, 2021)]
[Notices]
[Pages 50554-50555]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-19496]
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-6274-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, Housing and Urban Development (HUD).
ACTION: Notice.
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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 2021. 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
2021.
DATES: Effective January 1, 2021.
FOR FURTHER INFORMATION CONTACT: Patricia M. Burke, Director, Office of
Multifamily Production, 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 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 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 in
order 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
a 0.3 percent increase and the effective date of the HOEPA adjustment
is January 1, 2021. The Dollar Amounts under Section 206A have been
adjusted correspondingly and have an effective date of January 1, 2021.
These revised statutory limits may be applied to FHA multifamily
mortgage insurance applications submitted or amended on or after
January 1, 2021, so long as the loan has not been initially endorsed.
The adjusted Dollar Amounts for Calendar Year 2021 are shown below.
To implement the Consumer Finance Protection Bureau's adjustment, a
one-time proration is required to the 0.3 percent figure, which was
computed from April 2019 to April 2020 (see 85 FR 50944, Aug. 19,
2020). Because HUD's previous Dollar Amounts utilized CPI-U data
through December 2019, only interim CPI-U data from January 2020
through April 2020 is reflected in the table calculations. The overall
impact of this adjustment resulted in no change for Calendar Year 2021,
because CPI-U showed minor inflation of 1 percent in January and
February 2020, but was fully offset by minor deflation of 1% in March
and April 2020, associated with COVID-19 pandemic economic disruptions.
Moving forward in future years HUD will continue to utilize the
CFPB's time period (April to April) used for the HOEPA CPI-U
adjustment, which is typically published in the August preceding the
following January effective date.
Basic Statutory Mortgage Limits for Calendar Year 2021 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....................................... $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
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Bedrooms Non-elevator Elevator
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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
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Section 234--Condominium Housing
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Bedrooms Non-elevator Elevator
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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
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Bedrooms Non-elevator Elevator
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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
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Section 231--Housing for the Elderly
[[Page 50555]]
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Bedrooms Non-elevator Elevator
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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
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Section 207--Manufactured Home Parks
Per Space--$25,200
Indexing of Per Unit Limit for Substantial Rehabilitation for Calendar
Year 2021
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 2021 base amount
per dwelling unit to determine substantial rehabilitation for FHA
insured loan programs is $16,299.
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, 2021, 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).
Lopa P. Kolluri,
Principal Deputy Assistant Secretary for the Office of Housing--Federal
Housing Administration.
[FR Doc. 2021-19496 Filed 9-8-21; 8:45 am]
BILLING CODE 4210-67-P
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</html>Indexed from Federal Register on September 9, 2021.
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