[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.

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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 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

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                Bedrooms                   Non-elevator      Elevator
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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
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Section 213--Cooperatives

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                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
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Section 234--Condominium Housing

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                Bedrooms                   Non-elevator      Elevator
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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
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Section 221(d)(4)--Moderate Income Housing

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                Bedrooms                   Non-elevator      Elevator
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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
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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
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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