# February 28, 2005

# 

# MORTGAGEE LETTER 2005-10

## TO: ALL FHA-APPROVED MULTIFAMILY MORTGAGEES

**SUBJECT:** Increase in High Cost Percentage for FHA-Insured
Multifamily Housing in High-Cost Areas

Section 302(b) of the Federal Housing Administration Loan Limit
Adjustment Act of 2003 (Pub. L. 108-186, approved December 16, 2003)
allows the Secretary to grant exceptions to the maximum mortgage limits
set forth in Sections 207(c)(3), 213(b)(2)(B)(i),
220(d)(3)(B)(iii)(III), 221(d)(3)(ii)(II), 221(d)(4)(ii)(II),
231(c)(2)(B), and 234(e)(3)(B) of the National Housing Act. The
Secretary may increase the maximum mortgage limits in the above sections
by: (1) up to 140 percent in geographical areas where cost levels so
require, and (2) up to 140 percent, or up to 170 percent in high-cost
areas, where necessary on a project-by-project basis. By final rule
published at 69 FR 10701, March 3, 2004, 24 CFR §200.15, "Maximum
Mortgage" was revised to conform to the statutory changes made by
Section 302(b).

The Department has prepared a list of High Cost Areas that may be
eligible for the maximum 170 percent increase on a project-by-project
basis. This list is attached and also will be posted on the HUD website
along with the list of Base City High Cost Percentages for FHA Statutory
Mortgage Programs for calendar year 2005.

Please note that the 2005 Base City High Cost Percentages, and the list
of High Cost Areas, were effective as of January 1, 2005.

Sincerely,

John C. Weicher

Assistant Secretary for Housing--

Federal Housing Commissioner

Attachment

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  The High Cost Percentages shown are [multipliers]{.underline}                                        
  of the Basic Statutory Mortgage                                                                      

  Limits.                                                                                              

                                                                                                       

  Cities shown within the High Cost Areas box are designated as                                        
  High Cost                                                                                            

  Areas for calendar year 2005**.**                                                                    

                                                                                                       

  Hubs/ Program Centers with jurisdiction over these cities are                                        
  eligible to increase                                                                                 

  their assigned High Cost Percentage (HCP) to a multiplier of                                         
  [270 percent]{.underline} times                                                                      

  the Basic Statutory Mortgage Limits on a case by case basis.                                         

                                                                                                       

  Hubs/ Program Centers with jurisdiction over other areas (with                                       
  the exception of                                                                                     

  Special Limit Areas) are eligible to increase their assigned                                         
  HCP to a multiplier of                                                                               

  240 percent times the Basic Statutory Mortgage Limits on a                                           
  case-by-case basis.                                                                                  

                                                                                                       

  Special Limit Areas have an HCP multiplier of 360 percent.                                           

                                                                                                       

  **[HIGH COST AREAS]{.underline}**                                                                    

                                                                                                       

  ALBANY NY                                                                  208   \%                  

  ATLANTA GA HUB                                                             186   \%                  

  BALTIMORE MD                                                               214   \%                  

  BANGOR ME (PORTLAND)                                                       214   \%                  

  BIRMINGHAM AL                                                              182   \%                  

  BOISE ID                                                                   175   \%                  

  BOSTON MA                                                                  240   \%                  

  BUFFALO NY                                                                 234   \%                  

  BURLINGTON VT                                                              197   \%                  

  CAMDEN NJ (TRENTON)                                                        240   \%                  

  CHARLESTON WV                                                              202   \%                  

  CHICAGO IL                                                                 240   \%                  

  CINCINNATI OH                                                              196   \%                  

  CLEVELAND OH                                                               219   \%                  

  COLUMBIA SC                                                                203   \%                  

  COLUMBUS OH HUB                                                            194   \%                  

  DENVER CO                                                                  237   \%                  

  DES MOINES IA                                                              182   \%                  

  DETROIT MI                                                                 230   \%                  

  FORT WORTH TX                                                              176   \%                  

  GRAND RAPIDS MI                                                            195   \%                  

  GREENSBORO NC (WN-SLM)                                                     238   \%                  

  HARTFORD CT                                                                240   \%                  

  HELENA MT                                                                  175   \%                  

  INDIANAPOLIS IN                                                            202   \%                  

  JACKSONVILLE FL                                                            181   \%                  

  KANSAS CITY MO                                                             212   \%                  

  KNOXVILLE TN                                                               178   \%                  

  LOS ANGELES CA                                                             240   \%                  

  LOUISVILLE KY                                                              200   \%                  

  MANCHESTER NH                                                              212   \%                  

  MEMPHIS TN                                                                 177   \%                  

  MIAMI FL                                                                   217   \%                  

  MILWAUKEE WI                                                               234   \%                  

  MINNEAPOLIS MN                                                             240   \%                  

  NASHVILLE TN                                                               184   \%                  

  NEW YORK NY                                                                240   \%                  

  NEWARK NJ                                                                  240   \%                  

  OMAHA NE                                                                   200   \%                  

  PHILADELPHIA PA                                                            240   \%                  

  PHOENIX AZ                                                                 186   \%                  

  PITTSBURGH PA                                                              215   \%                  

  PORTLAND OR                                                                225   \%                  

  PROVIDENCE RI                                                              240   \%                  

  RENO NV                                                                    211   \%                  

  RICHMOND VA                                                                192   \%                  

  SACRAMENTO CA                                                              240   \%                  

  SALT LAKE CITY UT                                                          187   \%                  

  SAN DIEGO CA                                                               240   \%                  

  SAN FRANCISCO CA                                                           240   \%                  
  -------------------------------------------------------------- --- --- --- ----- ---- -- -- -- -- -- --

  --------------------------------------------------------------- --- --- --- ----- ----
  SAN JUAN PR (K WST)                                                         219   \%

  SANTA ANA CA (L.A.)                                                         240   \%

  SEATTLE WA                                                                  240   \%

  SPOKANE WA                                                                  197   \%

  SPRINGFIELD IL                                                              226   \%

  ST. LOUIS MO                                                                228   \%

  TAMPA FL                                                                    210   \%

  TOPEKA KS                                                                   184   \%

  WASHINGTON DC                                                               230   \%

  WILMINGTON DE                                                               233   \%

  **[OTHER (NON-HIGH COST) AREAS]{.underline}**                                      

                                                                                     

  ALBUQUERQUE NM                                                              169   \%

  CASPER WY                                                                   160   \%

  DALLAS TX                                                                   174   \%

  FARGO ND                                                                    167   \%

  HOUSTON TX                                                                  171   \%

  JACKSON MS                                                                  173   \%

  LITTLE ROCK AR                                                              163   \%

  LUBBOCK TX                                                                  167   \%

  NEW ORLEANS LA                                                              173   \%

  OKLAHOMA CITY OK                                                            173   \%

  SAN ANTONIO TX                                                              169   \%

  SHREVEPORT LA                                                               171   \%

  SIOUX FALLS SD                                                              167   \%

  TULSA OK                                                                    169   \%

                                                                                     

                                                                                    

  **[SPECIAL LIMIT AREAS]{.underline}**                                              

  US VIRGIN ISLANDS.                                                          360   \%

  HONOLULU HI                                                                 360   \%

  ANCHORAGE AK                                                                360   \%
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