Changes in Certain Multifamily Mortgage Insurance Premiums for 2008, 59150-59151 [07-5149]

Agencies

• DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Federal Register Volume 72, Number 201 (Thursday, October 18, 2007)]
[Notices]
[Pages 59150-59151]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 07-5149]



[[Page 59149]]

-----------------------------------------------------------------------

Part III





Department of Housing and Urban Development





-----------------------------------------------------------------------



Changes in Certain Multifamily Mortgage Insurance Premiums for 2008; 
Notice

Federal Register / Vol. 72, No. 201 / Thursday, October 18, 2007 / 
Notices

[[Page 59150]]


-----------------------------------------------------------------------

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-4679-N-13]


Changes in Certain Multifamily Mortgage Insurance Premiums for 
2008

AGENCY: Office of the Assistant Secretary for Housing--Federal Housing 
Commissioner, (HUD).

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: In accordance with HUD regulations, this notice announces the 
changes in the mortgage insurance premiums (MIP) for the following 
Federal Housing Administration (FHA) multifamily mortgage insurance 
programs whose commitments will be issued or reissued in Fiscal Year 
(FY) 2008. The new MIPs will be effective as of December 1, 2007.

DATES: Comment Due Date: November 19, 2007.

ADDRESSES: Interested persons are invited to submit comments regarding 
this Notice to the Regulations Division, Office of General Counsel, 
Department of Housing and Urban Development, 451 Seventh Street, SW., 
Room 10276, Washington, DC 20410-0500. Interested persons also may 
submit comments electronically through the Federal eRulemaking Portal 
at: https://www.regulations.gov. Commenters should follow the 
instructions provided on that site to submit comments electronically. 
HUD strongly encourages commenters to submit their comments 
electronically through https://www.regulations.gov. The comments 
received through this portal are posted and can be easily viewed.
    Facsimile (FAX) comments are not acceptable. In all cases, 
communications must refer to the docket number and title. All comments 
and communications submitted will be available, without change, for 
public inspection and copying between 8 a.m. and 5 p.m. weekdays at the 
above address. Due to security measures at the HUD Headquarters 
building, please schedule an appointment to review the public comments 
by calling the Regulations Division at (202) 708-3055 (this is not a 
toll-free number). Copies of electronically filed comments are also 
available for inspection and downloading at https://www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: Eric Stevenson, Director, Policy 
Division, Office of Multifamily Development, Department of Housing and 
Urban Development, 451 Seventh Street, SW., Washington, DC 20410-8000, 
Telephone: (202) 708-1142 (this is not a toll-free number). Hearing-or 
speech-impaired individuals may access these numbers through TTY by 
calling the Federal Information Relay Service at (800) 877-8339 (this 
is a toll-free number).

SUPPLEMENTARY INFORMATION:

Introduction

    HUD's regulations at 24 CFR 207.252, 207.252a and 207.254 provide 
that instead of setting the MIP at one specific rate for all programs, 
the Secretary is permitted to change an MIP program by program within 
the full range of HUD's statutory authority of one-fourth of one 
percent to one percent of the outstanding mortgage principal per annum 
through a notice, as provided in section 203(c)(1) of the National 
Housing Act (the Act) (12 U.S.C. 1709(c)(1)). The regulation at 24 CFR 
207.254 states that HUD will provide a 30-day period for public comment 
on notices changing MIPs in multifamily insured housing programs.
    Pursuant to this 30-day comment procedure, this notice announces 
changes for FY 2008 in the MIP for programs authorized under the Act. 
These changes will be effective December 1, 2007.

Credit Subsidy

    Appropriated positive credit subsidy is required for loan guarantee 
commitments under the three sections of the Act listed below:
     Section 221(d)(3) for new construction or substantial 
rehabilitation (NC/SR).
     Section 223(d) for operating loss loans for both 
apartments and health care facilities.
     Section 241(a) for supplemental loans for additions or 
improvements for apartments only.
    The following programs will have MIP changes:
     Section 221(d)(4) New Construction/Substantial 
Rehabilitation (NC/SR): The MIP is increased from 45 basis points in 
FY2007 to 61 basis points in FY2008.
     Section 207/223(f) refinance or purchase of apartment 
mortgages: The MIP is increased from 45 basis points in FY2007 to 61 
basis points in FY2008.
     Section 223(a)(7) refinance of FHA insured apartment 
mortgages: The MIP is increased from 45 basis points in FY2007 to 61 
basis points in FY2008.
    The increase of 16 basis points in section 221(d)(4) new 
construction and substantial rehabilitation (NC/SR), section 207/223(f) 
refinancing or purchase of apartments, and section 223(a)(7) 
refinancing of FHA insured apartment mortgages is to help cover 
administrative costs.
    For all projects with low-income housing tax credits (LIHTC) the 
sponsor is required under the Department of Housing and Urban 
Development Reform Act of 1989, Pub. L. 101-235 (approved December 15, 
1989) and HUD's implementing instructions to submit a certification 
regarding governmental assistance with all mortgage insurance 
applications.
    The following MIPs are unchanged:
     All sections of the Act where the mortgagor equity is 
produced from the proceeds of the sale of low-income housing tax 
credits (LIHTC): the MIP remains at 45 basis points.
     Section 213 Cooperative Housing MIP remains at 50 basis 
points.
     Section 221(d)(3) Nonprofit/Cooperative MIP remains at 80 
basis points.
     Section 223(d) Operating Loss Loans for apartments or 
health care facilities MIP remains at 80 basis points.
     Section 241(a) Improvements/Additions for apartments MIP 
remains at 80 basis points.
     Section 241(a) Improvements/Additions for Health Care 
Facilities MIP remains at 57 basis points.
     Section 207 Manufactured Home Parks (NC/SR) MIP remains at 
50 basis points.
     Section 232 NC/SR Health Care Facilities MIP remains at 57 
basis points.
     Section 220 Urban Renewal Housing MIP remains at 50 basis 
points.
     Section 231 Elderly Housing MIP remains at 50 basis 
points.
     Section 232/223(f) Refinance or Purchase of Health Care 
Facilities MIP remains at 50 basis points.
     Section 223(a)(7) refinance of Health Care Facilities MIP 
remains at 50 basis points.
     Section 242 Hospitals MIP remains at 50 basis points.
     Title XI--Group Practice MIP remains at 50 basis points.
    The First Year MIP for the section 207/223(f) loans for apartments 
and 232/223(f) loans for health care facilities remains at one percent.
    Premiums for risk-sharing applications under sections 542(b) and 
542(c) of the Housing and Community Development Act of 1992 MIP remain 
at 50 basis points. Risk-sharing premiums are paid by a risk-sharing 
Housing Finance Agency depending on the percentage of risk assumed by 
it in accordance with regulations at 24 CFR 266.604. The premium paid 
by Fannie Mae or Freddie Mac is 50% of 50 basis points. The 50 basis 
points apply to all

[[Page 59151]]

risk-sharing loans whether or not they have LIHTC.
    If the mortgagor's equity is produced from LIHTC for sections 
221(d)(3) or 241(a), a credit subsidy obligation will not be required. 
Only nonprofit and nonprofit cooperative mortgagors can obtain a 100 
percent mortgage under section 221(d)(3) of the Act. The nonprofits 
cannot be under the control or influence of profit-motivated entities 
and continue to require HUD approval prior to issuance of the firm 
commitment.
    The mortgage insurance premiums to be in effect for FHA firm 
commitments issued or reissued in FY 2008 are shown in the table below:

           Fiscal Year 2008 MIP Rates Multifamily Loan Program
------------------------------------------------------------------------
                     Loan program                         Basis points
------------------------------------------------------------------------
207 Multifamily Housing NC/SR without LIHTC..........                 50
207 Multifamily Housing NC/SR with LIHTC.............                 45
207 Manufactured Home Parks without LIHTC............                 50
207 Manufactured Home Parks with LIHTC...............                 45
221(d)(3) Nonprofit/Cooperative mortgagor without                     80
 LIHTC...............................................
221(d)(3) Limited dividend with LIHTC................                 45
221(d)(4) NC/SR without LIHTC........................                 61
221(d)(4) NC/SR with LIHTC...........................                 45
232 NC/SR Health Care Facilities without LIHTC.......                 57
232 NC/SR--Assisted Living Facilities with LIHTC.....                 45
220 Urban Renewal Housing without LIHTC..............                 50
220 Urban Renewal Housing with LIHTC.................                 45
213 Cooperative......................................                 50
231 Elderly Housing without LIHTC....................                 50
231 Elderly Housing with LIHTC.......................                 45
207/223(f) Refinance or Purchase for Apartments                      *61
 without LIHTC.......................................
207/223(f) Refinance or Purchase for Apartments with                 *45
 LIHTC...............................................
232/223(f) Refinance for Health Care Facilities                      *50
 without LIHTC.......................................
232/223(f) Refinance for Health Care Facilities with                 *45
 LIHTC...............................................
223(a)(7) Refinance of Apartments without LIHTC......                 61
223(a)(7) Refinance of Apartments with LIHTC.........                 45
223(a)(7) Refinance of Health Care Facilities without                 50
 LIHTC...............................................
223(a)(7) Refinance of Health Care Facilities with                    45
 LIHTC...............................................
223d Operating loss loan for Apartments..............                 80
223d Operating loss loan for Health Care Facilities..                 80
241(a) Improvements/additions for Apartments/coop                     80
 without LIHTC.......................................
241(a) Improvements/additions for Apartments/coop                     45
 with LIHTC..........................................
241(a) Improvements/additions for Health Care                         57
 Facilities without LIHTC............................
241(a) Improvements/additions for Health Care                         45
 Facilities with LIHTC...............................
242 Hospitals........................................                 50
Title XI-- Group Practice............................                50
------------------------------------------------------------------------
*The First Year MIP for the section 207/223(f) loans for apartments is
  one percent for the first year, as specified in section 24 CFR
  207.232b(a). The first year MIP for 232/223(f) health care facilities
  remains at one percent.

Applicable Mortgage Insurance Premium Procedures

    The MIP regulations are found in 24 CFR part 207. This notice is 
published in accordance with the procedures stated in 24 CFR 207.252, 
207.252(a), and 207.254.

Transition Guidelines

A. General

    FHA will honor outstanding commitments issued before December 1, 
2007 and endorse the notes for insurance.

B. Extension of Outstanding Firm Commitments

    FHA may extend or amend outstanding firm commitments issued prior 
to December 1, 2007 when the Hub/Program Center determines that the 
underwriting conclusions (rents, expenses, construction costs, mortgage 
amount and cash required to close) are still valid in accordance with 
Mortgagee Letter 03-21, ``FHA Policies for Controlling Multifamily Firm 
Commitments and Credit Subsidy,'' dated December 3, 2003. If the 
commitment has been extended 90 days from the original expiration date, 
the mortgagee must provide updated appraisal, market cost and mortgage 
credit information. If the loan is processed under Traditional 
Application Processing, the Hub/program center must update its own 
conclusions (appraisal/market study, cost and mortgage credit 
underwriting). A new market study is required if the existing study is 
over one year old.

C. Reopening of Expired Firm Commitments

    Reopening requests for expired firm commitments will be reprocessed 
by FHA field staff with updated appraisal, market cost and mortgage 
credit information using either traditional application processing 
(TAP) or multifamily accelerated processing (MAP) updated applications. 
The new MIP will apply to reopened commitments which are reissued on or 
after December 1, 2007. Reopening requests received within the 90 days 
of the expiration of the commitments are required to pay a reopening 
fee of $.50 per thousand of the requested mortgage. After expiration of 
the 90-day reopening period, mortgagees are required to submit new 
applications with the $3 per thousand application fee.

    Dated: September 19, 2007.
Brian D. Montgomery,
Assistant Secretary for Housing--Federal Housing Commissioner.
[FR Doc. 07-5149 Filed 10-15-07; 2:36 pm]
BILLING CODE 4210-67-P