Indexing Methodology for Title I Manufactured Home Loan Limits, 63018-63022 [2022-22535]

Download as PDF 63018 Federal Register / Vol. 87, No. 200 / Tuesday, October 18, 2022 / Proposed Rules DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 24 CFR Part 201 [Docket No. FR–6207–P–01] RIN 2502–AJ52 Indexing Methodology for Title I Manufactured Home Loan Limits Office of the Assistant Secretary for Housing—Federal Housing Commissioner, Housing and Urban Development (HUD). ACTION: Proposed rule. AGENCY: Section 2145 of the Housing and Economic Recovery Act of 2008 amended the maximum loan limits for manufactured home loans insured under Title I of the National Housing Act and required regulations to implement future indexing of the loan limit amounts for manufactured homes originated under the Manufactured Home Loan program and the Property Improvement Loan program. This proposed rule would establish indexing methodologies using data from the United States Census Bureau to annually calculate the loan limits for Manufactured Home Loans, Manufactured Home Lot Loans, and Manufactured Home and Lot Combination Loans (‘‘Combination Loans’’) insured under Title I of the National Housing Act for the Manufactured Home Loan program. DATES: Comment due date: December 19, 2022. ADDRESSES: HUD invites interested persons to submit comments to the Office of the General Counsel, Regulations Division, Department of Housing and Urban Development, 451 7th Street SW, Room 10276, Washington, DC 20410–0500. Communications should refer to the above docket number and title and should contain the information specified in the ‘‘Request for Comments’’ section. There are two methods for submitting public comments. 1. Submission of Comments by Mail. Comments may be submitted by mail to the Regulations Division, Office of General Counsel, Department of Housing and Urban Development, 451 7th Street SW, Room 10276, Washington, DC 20410–0500. Due to security measures at all Federal agencies, however, submission of comments by mail often results in delayed delivery. To ensure timely receipt, HUD recommends that khammond on DSKJM1Z7X2PROD with PROPOSALS SUMMARY: VerDate Sep<11>2014 16:26 Oct 17, 2022 Jkt 259001 comments be mailed at least two weeks in advance of the public comment deadline. 2. Electronic Submission of Comments. Comments may also be submitted electronically through the Federal eRulemaking Portal at www.regulations.gov. HUD strongly encourages commenters to submit comments electronically. Electronic submission of comments allows the commenter maximum time to prepare and submit a comment, ensures timely receipt by HUD, and enables HUD to make comments immediately available to the public. Comments submitted electronically through the website can be viewed by other commenters and interested members of the public. Commenters should follow instructions provided on that site to submit comments electronically. insure, through the Federal Housing Administration (FHA), loans made by FHA-approved lenders to eligible borrowers to finance the purchase, refinance, or improvement of a manufactured home, with or without the lot. HUD insures these loans under HUD’s Property Improvement Loan program and HUD’s Manufactured Home Loan program. FHA insures the lender against loss if the borrower defaults. A Title I Manufactured Home Loan may be used for the purchase or refinancing of a manufactured home, a lot on which to place a manufactured home, or a manufactured home and lot in combination. The manufactured home must be used as the principal residence of the borrower. Applicable loan limits and requirements are codified in 24 CFR part 201. Note: To receive consideration as public comments, comments must be submitted using one of the two methods specified above. Again, all submissions must refer to the docket number and title of the notice. Section 2117 of the Housing and Economic Recovery Act of 2008 (HERA) 1 added the definition of real estate to include all natural resources and structures permanently affixed to the land, amended the maximum loan limits for manufactured home loans and certain property improvement loans insured under Title I of the National Housing Act, and required future changes to the amounts for manufactured home loans to be made through regulation. HERA also stipulated that the Secretary develop a metric that uses United States Census Bureau (‘‘Census Bureau’’) data 2 on manufactured home prices to calculate an index for adjusting loan limits in the future. No Facsimile Comments. Facsimile (fax) comments are not acceptable. Public Inspection of Comments. All comments and communications submitted to HUD will be available for public inspection and copying between 8 a.m. and 5 p.m. weekdays at the above address. Due to security measures at HUD Headquarters, an advance appointment to review the public comments must be scheduled by calling the Regulations Division at 202–7083055. This is not a toll-free number. Individuals can dial 7–1–1 to access the Telecommunications Relay Service (TRS), which permits users to make text-based calls, including Text Telephone (TTY) and Speech to Speech (STS) calls. Copies of all comments submitted are available for inspection and downloading at: www.regulations.gov. FOR FURTHER INFORMATION CONTACT: Kevin Stevens, Department of Housing and Urban Development, 451 7th St SW, Room 9266, Washington, DC 20410– 4000; telephone number 202–402–2378 (this is not a toll-free number). Individuals can dial 7–1–1 to access the Telecommunications Relay Service (TRS), which permits users to make text-based calls, including Text Telephone (TTY) and Speech to Speech (STS) calls. SUPPLEMENTARY INFORMATION: I. Background Title I of the National Housing Act authorizes the Secretary of HUD to PO 00000 Frm 00003 Fmt 4702 Sfmt 4702 In compliance with HERA, on March 3, 2009, HUD published Title I Letter TI–480 3 notifying lenders of the new statutory loan limits. HUD also noted in that Title I Letter the need for the Secretary to develop an indexing method that would determine future loan limits. HUD regulations still reflect the outdated, pre-HERA Loan Limits. Initially after HERA’s enactment, Census Bureau data showed a decline in home prices. However, for compliance with HERA, HUD did not lower loan limits and the limits were kept at the 1 Public Law 110–289, 2117, 122 Stat. 2654, 2844–45 (2008). 2 See generally, U.S. Commerce Department, Census Bureau data on manufactured homes, available at: www.census.gov/programs-surveys/ mhs.html. 3 ‘‘Increased Maximum Loan Limits for Title I Manufactured Home Loans,’’ https://portal.hud. gov/hudportal/HUD?src=/program_offices/ administration/hudclips/letters/title1. E:\FR\FM\18OCP1.SGM 18OCP1 Federal Register / Vol. 87, No. 200 / Tuesday, October 18, 2022 / Proposed Rules 63019 described in the Title I letter are outlined below: threshold set under HERA. The outdated Loan Limits, and the 2008 Loan Limits currently in effect as TABLE 1—LOAN LIMITS UNDER HERA COMPARED TO PRE-HERA LOAN LIMITS Title I loan program name Eligible loan name for property type Property Improvement Loan Program ................ Manufactured Home Improvement Loan for units classified as real estate. Manufactured Home Loan (unit only) ................ Manufactured Home Lot Loan (lot only) ............ Manufactured Home and Lot (Combination Loan). Manufactured Home Loan Program ................... HUD has developed preliminary indexes on which future loan limits could be annually adjusted. This methodology uses Census Bureau data, as required by HERA. The indexes for Title I unit-only loan limits would rely on the Census Bureau’s Manufactured Housing Survey, which collects manufactured home sale prices for units that are sold (or intended to be sold) for residential use. At this time, it does not collect prices for land or lot sales or costs for home improvements, as it relates to manufactured housing. However, the Census Bureau’s New Residential Sales data do provide estimates of the median price of newly constructed single-family homes, which includes the value of the lot. For compliance with the HERA statute, the index for Title I Lot Loan limits would be based on Census Bureau data on prices for newly constructed singlefamily homes with land. khammond on DSKJM1Z7X2PROD with PROPOSALS II. Proposed Rule As required by HERA, this proposed rule would update the loan limits in § 201.10 to establish an index for which future loan limits would be revised through notice. HUD is also proposing to amend the definition of ‘‘manufactured home’’ in § 201.2 to conform to the loan limit change. HUD proposes to index loan limits based on sale prices, unit sizes, and property data collected by the Census Bureau. HUD seeks comments on the proposed indexes and methodology for the different loan types. Further, commenters are invited to suggest whether the methodology should include an additional or alternative index for specific loans and how they VerDate Sep<11>2014 16:26 Oct 17, 2022 Jkt 259001 Loan limits prior to HERA 2008 Loan limit basis per HERA currently in effect $7,500 $25,090 48,600 16,200 64,800 (48,600 + 16,200) 69,678 23,226 92,904 (69,678 + 23,226) could better represent adjustment in the loan limits. HUD proposes to establish separate indexing methodologies to annually calculate future loan limits for manufactured home loans, manufactured home lot loans, and manufactured home and lot combination loans under the Manufactured Home Loan program. HUD assigns ‘‘Index 100’’ to the loan limit amounts enacted by HERA, as shown in Table 3 of this preamble. First, the proposed rule would create a dual index based on purchase prices of manufactured homes, which are collected by the Census Bureau. The dual index would distinguish purchase prices based on the number of sections that make up a home. An index for single-section manufactured homes would use only single-section home sale data. A separate index for double- and multi-section manufactured homes would use only double-section home sale data.4 This would allow HUD to apply loan limits which more closely reflect the prices of homes with one section (single-section) and homes with more than one section (double or multisection). HUD proposes to adjust loan limits for single-section and double or multisection manufactured home loans annually based on changes to indexes for the average price of single-section and double-section manufactured homes, respectively. To determine each index, HUD proposes to use the average price data for the most recent 12 months available at the time HUD calculates the adjustment, weighted according to the number of manufactured units shipped during that same period. Each index would be calculated separately, using shipping and price data for singlesection units for the single-section index and shipping and price data for doublesection units for the double- or greater section index. Consistent with HERA, HUD would not decrease loan limits even if an annual index reflects a decline. 4 For an example of the latest data according to Census, see ‘‘MHS Latest Data,’’ https:// www.census.gov/data/tables/time-series/econ/mhs/ latest-data.html. 5 The New Residential Sales data come from Census’s Survey of Construction. More information can be found here: www.census.gov/construction/ nrs/. PO 00000 Frm 00004 Fmt 4702 Sfmt 4702 Second, HUD proposes creating an index for Manufactured Home Lot Loans based on median home prices in Census Bureau’s New Residential Sales data.5 Since these estimates reflect sales of newly constructed single-family housing including land, they are a suitable general indicator of the movement of prices for land to be financed with Manufactured Home Lot Loans. HUD would set Manufactured Home Lot Loan limits annually by indexing the loan limit established by HERA in 2008 to the growth in median new home prices. Finally, the loan limit for manufactured home and lot Combination Loans would be determined by adding the manufactured home lot loan limit to either the singleor double-section loan limit, depending on the home. HUD’s proposed indexes are demonstrated in table 2 of this preamble: E:\FR\FM\18OCP1.SGM 18OCP1 63020 Federal Register / Vol. 87, No. 200 / Tuesday, October 18, 2022 / Proposed Rules TABLE 2—PROPOSED INDEX METHODOLOGIES FOR TITLE I MANUFACTURED HOME LOAN LIMITS Three eligible loan types 1. Manufactured (Home only). Home Proposed methodology/index Loan 2. Manufactured Home Lot Loan (Lot only). 3. Manufactured Home and Lot Loan (Combination Loan). • Single-Section Index for single-section homes: average single-section home price with future indexing based on movement in single-section home prices or • Double Section Index for homes composed of two or more sections: average double-section home price with future indexing based on movement in double-section home prices * Manufactured Home Lot Loan limit indexed using changes in the median new home price * Manufactured Home and Lot Combination indexed using the Manufactured Home Lot Loan Index, plus the applicable index for sections in a Manufactured Home • Single-Section Index for single-section homes, or • Double Section Index for homes composed of more than one section. * Single-and double-section price averages based on data at: www.census.gov/data/tables/time-series/econ/mhs/latest-data.html. The median new home price comes from: www.census.gov/construction/nrs/historical_data/. Table 3 below shows examples of the loan limits, based on recent data from Census Bureau. TABLE 3—EXAMPLE LOAN LIMITS—TITLE I MANUFACTURED HOME LOAN PROGRAM Title I loan program name Future index methodology Description of property Current limits (per HERA) Example 2022 loan limits (based on 2021 Census data) Index Manufactured Home Loan Program. Manufactured Home Loan Program. Manufactured Home Loan Program. Manufactured Home Loan Program. Single-section Manufactured Home (unit only) ..... Manufactured Home Loan Program. Double- or greater-section Manufactured Home and Lot (Combination Loan). Double- or greater-section Manufactured Home (unit only). Manufactured Home Lot (lot only) ......................... Single-section Manufactured (Combination Loan). Home and Lot Indexed to average single-section manufactured home price. Note 1. Indexed to average double-section manufactured home price. Note 1. Indexed to median sales price for new single-family homes. Note 2. Limit for Single-Section + Limit for Lot Loan. Limit for Double- or Multi-Section + Limit for Lot Loan. Loan limit $69,678 104.2 ........ $72,600 69,678 189.4 ........ 132,000 23,226 160.2 ........ 37,205 92,904 (69,678 + 23,226) 92,904 (69,678 + 23,226) NA ............ 109,805 (72,600 + 37,205) 169,205 (132,000 + 37,205) NA ............ Table 3 Notes: 1. Indexing to occur at the beginning of each year, based on the weighted average price data for the most recent 12 months available from the Manufactured Housing Survey. 2. Indexing to occur at the beginning of each year, based on the median sales price of the most recent 12 months available from the New Residential Sales data. As discussed in the proposed § 201.10(h), HUD would annually adjust future loan limits using the above methodology and post new loan limits, including an explanation of the calculation by notice, such as through a Title I letter and on HUD.gov. khammond on DSKJM1Z7X2PROD with PROPOSALS III. Manufactured Home Improvement Loans This proposed rule does not propose an index for Manufactured Home Improvement Loans, which are insured under regulations for the Property Improvement Loan program. While HERA authorized adjustments to the limit of loans that finance improvements to manufactured homes under the Property Improvement Loan program, that authorization was not extended to site-built condominiums, townhomes, or detached dwellings. HUD does not believe any existing Census Bureau data fully reflect changes in the manufactured housing property improvement loan market. Therefore, VerDate Sep<11>2014 16:26 Oct 17, 2022 Jkt 259001 the implementation of HERA regarding Manufactured Home Improvement Loans would be subject to inaccuracy. Additionally, setting different loan limits for only this subset of the broader Property Improvement Loan program would cause complication, as the program and market for property improvements makes no other differentiation between improvements to manufactured homes vs. non manufactured homes. Therefore, HUD intends to publish an advanced notice of proposed rulemaking requesting public comment seeking input on implementation of a Property Improvement Loan index for manufactured homes. Because the Manufactured Home Improvement Loan program is such a small subset of the overall Property Improvement Loan program, HUD believes that this delay in the implementation of HERA to Manufactured Home Improvement Loans would have minimal, if any, PO 00000 Frm 00005 Fmt 4702 Sfmt 4702 effect on the Property Improvement Loan program. However, HUD seeks comment on the impact of delaying increases to the loan limit for Manufactured Home Improvement Loans. IV. Findings and Certifications Regulatory Review—Executive Orders 12866 and 13563 Pursuant to Executive Order 12866 (Regulatory Planning and Review), a determination must be made whether a regulatory action is significant and therefore, subject to review by the Office of Management and Budget (OMB) in accordance with the requirements of the order. Executive Order 13563 (Improving Regulations and Regulatory Review) directs executive agencies to analyze regulations that are ‘‘outmoded, ineffective, insufficient, or excessively burdensome, and to modify, streamline, expand, or repeal them in accordance with what has been learned.’’ Executive E:\FR\FM\18OCP1.SGM 18OCP1 Federal Register / Vol. 87, No. 200 / Tuesday, October 18, 2022 / Proposed Rules Order 13563 also directs that, where relevant, feasible, and consistent with regulatory objectives, and to the extent permitted by law, agencies are to identify and consider regulatory approaches that reduce burdens and maintain flexibility and freedom of choice for the public. This proposed rule has been determined to be a ‘‘significant regulatory action,’’ as defined in section 3(f) of the order, but not economically significant under section 3(f)(1) of the order. The docket file is available for public inspection in the Regulations Division, Office of General Counsel, Department of Housing and Urban Development, 451 7th Street SW, Room 10276, Washington, DC 20410–0500. Due to security measures at the HUD Headquarters building, please schedule an appointment to review the docket file by calling the Regulations Division at 202–402–3055 (this is not a toll-free number). Individuals can dial 7–1–1 to access the Telecommunications Relay Service (TRS), which permits users to make text-based calls, including Text Telephone (TTY) and Speech to Speech (STS) calls. khammond on DSKJM1Z7X2PROD with PROPOSALS Regulatory Flexibility Act The Regulatory Flexibility Act (RFA) (5 U.S.C. 601 et seq.) generally requires an agency to conduct a regulatory flexibility analysis of any rule subject to notice and comment rulemaking requirements, unless the agency certifies that the rule will not have a significant economic impact on a substantial number of small entities. Accordingly, the undersigned certifies that the proposed rule will not have a significant economic impact on a substantial number of small entities. Notwithstanding HUD’s determination that this rule will not have a significant effect on a substantial number of small entities, HUD specifically invites comments regarding any lessburdensome alternatives to this rule that will meet HUD’s objectives as described in the preamble to this rule. Environmental Impact This proposed rule would establish and review loan limits. Accordingly, under 24 CFR 50.19(c)(6) this proposed rule is categorically excluded from environmental review under the National Environmental Policy Act of 1969 (42 U.S.C. 4321). Executive Order 13132—Federalism Executive Order 13132 (entitled ‘‘Federalism’’) prohibits an agency from publishing any rule that has federalism implications if the rule either: (i) imposes substantial direct compliance VerDate Sep<11>2014 16:26 Oct 17, 2022 Jkt 259001 costs on state and local governments and is not required by statute, or (ii) preempts state law, unless the agency meets the consultation and funding requirements of section 6 of the Executive order. This proposed rule does not have federalism implications and does not impose substantial direct compliance costs on state and local governments or preempt state law within the meaning of the Executive order. Unfunded Mandates Reform Act Title II of the Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531– 1538) (UMRA) establishes requirements for Federal agencies to assess the effects of their regulatory actions on state, local, and tribal governments, and on the private sector. This proposed rule would not impose any Federal mandates on any state, local, or tribal governments, or on the private sector, within the meaning of the UMRA. List of Subjects in 24 CFR Part 201 Claims, Health facilities, Historic preservation, Home improvement, Loan programs-housing and community development, Manufactured homes, Mortgage insurance, Reporting and recordkeeping requirements. For the reasons discussed in the preamble, HUD proposes to amend 24 CFR part 201 as follows: PART 201—TITLE I PROPERTY IMPROVEMENT AND MANUFACTURED HOME LOANS 1. The authority for 24 CFR part 201 continues to read as follows: ■ Authority: 12 U.S.C. 1703; 15 U.S.C. 1639c; 42 U.S.C. 3535(d). 2. Amend § 201.2 by revising the definition of ‘‘Manufactured home’’ to read as follows: ■ § 201.2 Definitions. * * * * * Manufactured home means a transportable structure, comprised of one or more modules, each built on a permanent chassis, with or without a permanent foundation, designed for occupancy as a principal residence by a single family. For purposes of the annual adjustments to loan limits under this part, a manufactured home may be a single-section home comprised of one module, a double-section home comprised of two modules, or a multisection home comprised of three or more modules. A new manufactured home shall comply with the minimum property standards prescribed by the Secretary to assure its livability and durability that are published as the PO 00000 Frm 00006 Fmt 4702 Sfmt 4702 63021 Manufactured Home Construction and Safety Standards implementing the National Manufactured Housing Construction and Safety Standards Act of 1974, 42 U.S.C. 5401–5426, at 24 CFR part 3280. To qualify for a manufactured home loan insured under this part, an existing manufactured home must have been constructed in accordance with standards published at 24 CFR part 3280 and must meet standards similar to the minimum property standards applicable to existing homes insured under title II of the Act, as prescribed by the Secretary. * * * * * ■ 3. Amend § 201.10 as follows: ■ a. In paragraph (a)(1)(i), remove ‘‘$17,500’’ and add in its place ‘‘$25,090’’; ■ b. Revise the introductory texts of paragraphs (b)(1) and (2), paragraph (c), the introductory texts of paragraphs (d)(1) and (2), and the introductory text of paragraph (f)(5); and ■ c. Add paragraph (h). The revisions and addition read as follows: § 201.10 Loan amounts. * * * * * (b) * * * (1) The total principal obligation for a loan to purchase a new manufactured home shall not exceed the sum of the following itemized amounts, up to a maximum set according to an index established by HUD in paragraph (h)(1) of this section and updated through notice which shall establish separate loan limits for single-section homes and double-section or multi-section homes: * * * * * (2) The total principal obligation for a loan to purchase an existing manufactured home shall not exceed the lesser of the following amounts, up to a maximum set according to an index established by HUD in paragraph (h)(1) of this section and updated through notice which shall establish separate loan limits for double-section or multisection homes: * * * * * (c) Manufactured home lot loans. The total principal obligation for a loan to purchase and, if necessary, develop a lot suitable for a manufactured home, including on-site water and utility connections, sanitary facilities, site improvements and landscaping, shall not exceed 95 percent of either the appraised value of the developed lot (as determined by a HUD-approved appraisal) or the total of the purchase price and development costs, whichever is less, up to a maximum set according to an index established by HUD in E:\FR\FM\18OCP1.SGM 18OCP1 khammond on DSKJM1Z7X2PROD with PROPOSALS 63022 Federal Register / Vol. 87, No. 200 / Tuesday, October 18, 2022 / Proposed Rules paragraph (h)(2) of this section and updated through notice. (d) * * * (1) The total principal obligation for a loan to purchase a new manufactured home and a lot on which to place the home shall not exceed the sum of the following itemized amounts, up to a maximum set according to an index established by HUD in paragraph (h)(3) of this section and updated through notice which shall establish separate loan limits for single-section homes and double-section or multi-section homes: * * * * * (2) The total principal obligation for a Combination Loan, to purchase an existing manufactured home and lot, shall not exceed the lesser of the following amounts, up to a maximum set according to an index established by HUD in paragraph (h)(3) of this section and updated through notice which shall establish separate loan limits for singlesection homes and double-section or multi-section homes: * * * * * (f) * * * (5) When a borrower’s existing manufactured home is being refinanced in connection with the purchase of a manufactured home lot, the total principal obligation of the combination loan shall not exceed the lesser of the following amounts, up to the maximum established in paragraph (h)(3) of this section: * * * * * (h) Annual adjustments. HUD shall adjust the following loan limits annually through notice: (1) In paragraphs (b)(1) and (2) of this section, the single-section manufactured home loan limit shall be adjusted to reflect changes in the average price of single-section manufactured home sales and the double-section or multi-section manufactured home loan limit shall be increased to reflect changes in doublesection manufactured home sales, according to data published by the Census Bureau, except that the loan limits shall not be set below $69,678. (2) In paragraph (c) of this section, the manufactured home lot loan limit shall be increased to reflect changes in the average price of all single-family home sales according to data published by HUD, except that the loan limit shall not be set below $23,226. (3) In paragraphs (d)(1) and (2) of this section, the combination manufactured home and lot loan limits shall be increased to be the sum of the applicable loan limit for the manufactured home loan in paragraph VerDate Sep<11>2014 16:26 Oct 17, 2022 Jkt 259001 (b)(1) of this section and the lot loan limit in paragraph (c) of this section, except that the loan limit shall not be set below $92,904. Julia R. Gordon, Assistant Secretary for Housing, FHA Commissioner. [FR Doc. 2022–22535 Filed 10–17–22; 8:45 am] BILLING CODE 4210–67–P ENVIRONMENTAL PROTECTION AGENCY 40 CFR Part 271 [EPA–R03–RCRA–2022–0351; FRL–9947– 01–R3] Virginia: Final Authorization of State Hazardous Waste Management Program Revisions Environmental Protection Agency (EPA). ACTION: Proposed rule. AGENCY: The Commonwealth of Virginia has applied to Environmental Protection Agency (EPA) for final authorization of revisions to its hazardous waste program under the Resource Conservation and Recovery Act (RCRA). By this action, EPA proposes to grant final authorization to Virginia. In the ‘‘Rules and Regulations’’ section of this issue of the Federal Register, EPA is authorizing the revisions by a direct final rule. EPA did not make a proposal prior to the direct final rule because EPA believes this action is not controversial and does not expect comments that oppose it. EPA has explained the reasons for this authorization in the preamble to the direct final rule. Unless EPA receives written adverse comments pertaining to this State revision during the comment period, the direct final rule will become effective on the date it establishes, and EPA will not take further action on this proposed rulemaking. However, if EPA receives adverse comments pertaining to this State revision, EPA will publish a timely withdrawal in the Federal Register and the direct final rule will not take effect. EPA will then respond to public comments in a later final rule based on this proposed rulemaking. You may not have another opportunity for comment. If you want to comment on this action, you must do so at this time. DATES: Send written comments by November 17, 2022. ADDRESSES: Submit your comments, identified by Docket ID No. EPA–R03– RCRA–2022–0351, at SUMMARY: PO 00000 Frm 00007 Fmt 4702 Sfmt 9990 www.regulations.gov/. Follow the online instructions for submitting comments. Once submitted, comments cannot be edited or removed from www.regulations.gov. The EPA may publish any comment received to its public docket. Do not submit electronically any information you consider to be Confidential Business Information (CBI) or other information the disclosure of which is restricted by statute. Multimedia submissions (audio, video, etc.) must be accompanied by a written comment. The written comment is considered the official comment and should include discussion of all points you wish to make. The EPA will generally not consider comments or comment contents located outside of the primary submission (i.e., on the web, cloud, or other file sharing system). For additional submission methods, the full EPA public comment policy, information about CBI or multimedia submissions, and general guidance on making effective comments, please visit https://www.epa.gov/dockets/ commenting-epa-dockets. The EPA encourages electronic submittals, but if you are unable to submit electronically or need other assistance, please contact Jacqueline Morrison, the contact listed in the FOR FURTHER INFORMATION CONTACT provision below. Please also contact Jacqueline Morrison if you need assistance in a language other than English or if you are a person with disabilities who needs a reasonable accommodation at no cost to you. FOR FURTHER INFORMATION CONTACT: Jacqueline Morrison, RCRA Programs Branch; Land, Chemicals, and Redevelopment Division, U.S. Environmental Protection Agency Region 3, Four Penn Center, 1600 John F Kennedy Blvd. (Mail code 3LD30), Philadelphia, PA 19103–2852; phone: (215) 814–5664, email: morrison.jacqueline@epa.gov@epa.gov. SUPPLEMENTARY INFORMATION: EPA has explained the reasons for this action in the preamble to the direct final rule. For additional information, see the direct final rule published in the ‘‘Rules and Regulations’’ section of this issue of the Federal Register. Authority: This action is issued under the authority of sections 2002(a), 3006 and 7004(b) of the Solid Waste Disposal Act, as amended, 42 U.S.C. 6912(a), 6926, 6974(b). Adam Ortiz, Regional Administrator, EPA Region III. [FR Doc. 2022–22577 Filed 10–17–22; 8:45 am] BILLING CODE 6560–50–P E:\FR\FM\18OCP1.SGM 18OCP1

Agencies

[Federal Register Volume 87, Number 200 (Tuesday, October 18, 2022)]
[Proposed Rules]
[Pages 63018-63022]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-22535]



[[Page 63018]]

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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Part 201

[Docket No. FR-6207-P-01]
RIN 2502-AJ52


Indexing Methodology for Title I Manufactured Home Loan Limits

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

ACTION: Proposed rule.

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SUMMARY: Section 2145 of the Housing and Economic Recovery Act of 2008 
amended the maximum loan limits for manufactured home loans insured 
under Title I of the National Housing Act and required regulations to 
implement future indexing of the loan limit amounts for manufactured 
homes originated under the Manufactured Home Loan program and the 
Property Improvement Loan program. This proposed rule would establish 
indexing methodologies using data from the United States Census Bureau 
to annually calculate the loan limits for Manufactured Home Loans, 
Manufactured Home Lot Loans, and Manufactured Home and Lot Combination 
Loans (``Combination Loans'') insured under Title I of the National 
Housing Act for the Manufactured Home Loan program.

DATES: Comment due date: December 19, 2022.

ADDRESSES: HUD invites interested persons to submit comments to the 
Office of the General Counsel, Regulations Division, Department of 
Housing and Urban Development, 451 7th Street SW, Room 10276, 
Washington, DC 20410-0500. Communications should refer to the above 
docket number and title and should contain the information specified in 
the ``Request for Comments'' section. There are two methods for 
submitting public comments.
    1. Submission of Comments by Mail. Comments may be submitted by 
mail to the Regulations Division, Office of General Counsel, Department 
of Housing and Urban Development, 451 7th Street SW, Room 10276, 
Washington, DC 20410-0500. Due to security measures at all Federal 
agencies, however, submission of comments by mail often results in 
delayed delivery. To ensure timely receipt, HUD recommends that 
comments be mailed at least two weeks in advance of the public comment 
deadline.
    2. Electronic Submission of Comments. Comments may also be 
submitted electronically through the Federal eRulemaking Portal at 
www.regulations.gov. HUD strongly encourages commenters to submit 
comments electronically. Electronic submission of comments allows the 
commenter maximum time to prepare and submit a comment, ensures timely 
receipt by HUD, and enables HUD to make comments immediately available 
to the public. Comments submitted electronically through the website 
can be viewed by other commenters and interested members of the public. 
Commenters should follow instructions provided on that site to submit 
comments electronically.

    Note:  To receive consideration as public comments, comments 
must be submitted using one of the two methods specified above. 
Again, all submissions must refer to the docket number and title of 
the notice.

    No Facsimile Comments. Facsimile (fax) comments are not acceptable.
    Public Inspection of Comments. All comments and communications 
submitted to HUD will be available for public inspection and copying 
between 8 a.m. and 5 p.m. weekdays at the above address. Due to 
security measures at HUD Headquarters, an advance appointment to review 
the public comments must be scheduled by calling the Regulations 
Division at 202-708-3055. This is not a toll-free number. Individuals 
can dial 7-1-1 to access the Telecommunications Relay Service (TRS), 
which permits users to make text-based calls, including Text Telephone 
(TTY) and Speech to Speech (STS) calls. Copies of all comments 
submitted are available for inspection and downloading at: 
www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: Kevin Stevens, Department of Housing 
and Urban Development, 451 7th St SW, Room 9266, Washington, DC 20410-
4000; telephone number 202-402-2378 (this is not a toll-free number). 
Individuals can dial 7-1-1 to access the Telecommunications Relay 
Service (TRS), which permits users to make text-based calls, including 
Text Telephone (TTY) and Speech to Speech (STS) calls.

SUPPLEMENTARY INFORMATION:

I. Background

    Title I of the National Housing Act authorizes the Secretary of HUD 
to insure, through the Federal Housing Administration (FHA), loans made 
by FHA-approved lenders to eligible borrowers to finance the purchase, 
refinance, or improvement of a manufactured home, with or without the 
lot. HUD insures these loans under HUD's Property Improvement Loan 
program and HUD's Manufactured Home Loan program. FHA insures the 
lender against loss if the borrower defaults. A Title I Manufactured 
Home Loan may be used for the purchase or refinancing of a manufactured 
home, a lot on which to place a manufactured home, or a manufactured 
home and lot in combination. The manufactured home must be used as the 
principal residence of the borrower. Applicable loan limits and 
requirements are codified in 24 CFR part 201.
    Section 2117 of the Housing and Economic Recovery Act of 2008 
(HERA) \1\ added the definition of real estate to include all natural 
resources and structures permanently affixed to the land, amended the 
maximum loan limits for manufactured home loans and certain property 
improvement loans insured under Title I of the National Housing Act, 
and required future changes to the amounts for manufactured home loans 
to be made through regulation. HERA also stipulated that the Secretary 
develop a metric that uses United States Census Bureau (``Census 
Bureau'') data \2\ on manufactured home prices to calculate an index 
for adjusting loan limits in the future.
---------------------------------------------------------------------------

    \1\ Public Law 110-289, 2117, 122 Stat. 2654, 2844-45 (2008).
    \2\ See generally, U.S. Commerce Department, Census Bureau data 
on manufactured homes, available at: www.census.gov/programs-surveys/mhs.html.
---------------------------------------------------------------------------

    In compliance with HERA, on March 3, 2009, HUD published Title I 
Letter TI-480 \3\ notifying lenders of the new statutory loan limits. 
HUD also noted in that Title I Letter the need for the Secretary to 
develop an indexing method that would determine future loan limits. HUD 
regulations still reflect the outdated, pre-HERA Loan Limits. Initially 
after HERA's enactment, Census Bureau data showed a decline in home 
prices. However, for compliance with HERA, HUD did not lower loan 
limits and the limits were kept at the

[[Page 63019]]

threshold set under HERA. The outdated Loan Limits, and the 2008 Loan 
Limits currently in effect as described in the Title I letter are 
outlined below:
---------------------------------------------------------------------------

    \3\ ``Increased Maximum Loan Limits for Title I Manufactured 
Home Loans,'' https://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/letters/title1.

                        Table 1--Loan Limits Under HERA Compared to Pre-HERA Loan Limits
----------------------------------------------------------------------------------------------------------------
                                                                                               2008 Loan limit
        Title I loan program name             Eligible loan name for     Loan limits prior      basis per HERA
                                                  property type               to HERA        currently in effect
----------------------------------------------------------------------------------------------------------------
Property Improvement Loan Program........  Manufactured Home                         $7,500              $25,090
                                            Improvement Loan for units
                                            classified as real estate.
Manufactured Home Loan Program...........  Manufactured Home Loan                    48,600               69,678
                                            (unit only).
                                           Manufactured Home Lot Loan                16,200               23,226
                                            (lot only).
                                           Manufactured Home and Lot       64,800 (48,600 +     92,904 (69,678 +
                                            (Combination Loan).                     16,200)              23,226)
----------------------------------------------------------------------------------------------------------------

    HUD has developed preliminary indexes on which future loan limits 
could be annually adjusted. This methodology uses Census Bureau data, 
as required by HERA. The indexes for Title I unit-only loan limits 
would rely on the Census Bureau's Manufactured Housing Survey, which 
collects manufactured home sale prices for units that are sold (or 
intended to be sold) for residential use. At this time, it does not 
collect prices for land or lot sales or costs for home improvements, as 
it relates to manufactured housing. However, the Census Bureau's New 
Residential Sales data do provide estimates of the median price of 
newly constructed single-family homes, which includes the value of the 
lot. For compliance with the HERA statute, the index for Title I Lot 
Loan limits would be based on Census Bureau data on prices for newly 
constructed single-family homes with land.

II. Proposed Rule

    As required by HERA, this proposed rule would update the loan 
limits in Sec.  201.10 to establish an index for which future loan 
limits would be revised through notice. HUD is also proposing to amend 
the definition of ``manufactured home'' in Sec.  201.2 to conform to 
the loan limit change. HUD proposes to index loan limits based on sale 
prices, unit sizes, and property data collected by the Census Bureau. 
HUD seeks comments on the proposed indexes and methodology for the 
different loan types. Further, commenters are invited to suggest 
whether the methodology should include an additional or alternative 
index for specific loans and how they could better represent adjustment 
in the loan limits.
    HUD proposes to establish separate indexing methodologies to 
annually calculate future loan limits for manufactured home loans, 
manufactured home lot loans, and manufactured home and lot combination 
loans under the Manufactured Home Loan program. HUD assigns ``Index 
100'' to the loan limit amounts enacted by HERA, as shown in Table 3 of 
this preamble.
    First, the proposed rule would create a dual index based on 
purchase prices of manufactured homes, which are collected by the 
Census Bureau. The dual index would distinguish purchase prices based 
on the number of sections that make up a home. An index for single-
section manufactured homes would use only single-section home sale 
data. A separate index for double- and multi-section manufactured homes 
would use only double-section home sale data.\4\ This would allow HUD 
to apply loan limits which more closely reflect the prices of homes 
with one section (single-section) and homes with more than one section 
(double or multi-section).
---------------------------------------------------------------------------

    \4\ For an example of the latest data according to Census, see 
``MHS Latest Data,'' https://www.census.gov/data/tables/time-series/econ/mhs/latest-data.html.
---------------------------------------------------------------------------

    HUD proposes to adjust loan limits for single-section and double or 
multi-section manufactured home loans annually based on changes to 
indexes for the average price of single-section and double-section 
manufactured homes, respectively. To determine each index, HUD proposes 
to use the average price data for the most recent 12 months available 
at the time HUD calculates the adjustment, weighted according to the 
number of manufactured units shipped during that same period. Each 
index would be calculated separately, using shipping and price data for 
single-section units for the single-section index and shipping and 
price data for double-section units for the double- or greater section 
index. Consistent with HERA, HUD would not decrease loan limits even if 
an annual index reflects a decline.
    Second, HUD proposes creating an index for Manufactured Home Lot 
Loans based on median home prices in Census Bureau's New Residential 
Sales data.\5\ Since these estimates reflect sales of newly constructed 
single-family housing including land, they are a suitable general 
indicator of the movement of prices for land to be financed with 
Manufactured Home Lot Loans. HUD would set Manufactured Home Lot Loan 
limits annually by indexing the loan limit established by HERA in 2008 
to the growth in median new home prices.
---------------------------------------------------------------------------

    \5\ The New Residential Sales data come from Census's Survey of 
Construction. More information can be found here: www.census.gov/construction/nrs/.
---------------------------------------------------------------------------

    Finally, the loan limit for manufactured home and lot Combination 
Loans would be determined by adding the manufactured home lot loan 
limit to either the single- or double-section loan limit, depending on 
the home.
    HUD's proposed indexes are demonstrated in table 2 of this 
preamble:

[[Page 63020]]



Table 2--Proposed Index Methodologies for Title I Manufactured Home Loan
                                 Limits
------------------------------------------------------------------------
     Three eligible loan types           Proposed methodology/index
------------------------------------------------------------------------
1. Manufactured Home Loan (Home      Single-Section Index for
 only).                              single-section homes: average
                                     single-section home price with
                                     future indexing based on movement
                                     in single-section home prices or
                                     Double Section Index for
                                     homes composed of two or more
                                     sections: average double-section
                                     home price with future indexing
                                     based on movement in double-section
                                     home prices *
2. Manufactured Home Lot Loan (Lot  Manufactured Home Lot Loan limit
 only).                              indexed using changes in the median
                                     new home price *
3. Manufactured Home and Lot Loan   Manufactured Home and Lot
 (Combination Loan).                 Combination indexed using the
                                     Manufactured Home Lot Loan Index,
                                     plus the applicable index for
                                     sections in a Manufactured Home
                                     Single-Section Index for
                                     single-section homes, or
                                     Double Section Index for
                                     homes composed of more than one
                                     section.
------------------------------------------------------------------------
* Single-and double-section price averages based on data at:
  www.census.gov/data/tables/time-series/econ/mhs/latest-data.html. The
  median new home price comes from: www.census.gov/construction/nrs/historical_data/.

    Table 3 below shows examples of the loan limits, based on recent 
data from Census Bureau.

                                          Table 3--Example Loan Limits--Title I Manufactured Home Loan Program
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                    Example 2022  loan limits  (based on
                                                                              Future  index        Current limits            2021 Census data)
       Title I loan program name            Description of property            methodology           (per HERA)   --------------------------------------
                                                                                                                           Index            Loan limit
--------------------------------------------------------------------------------------------------------------------------------------------------------
Manufactured Home Loan Program........  Single-section Manufactured     Indexed to average single-        $69,678  104.2................         $72,600
                                         Home (unit only).               section manufactured
                                                                         home price. Note 1.
Manufactured Home Loan Program........  Double- or greater-section      Indexed to average double-         69,678  189.4................         132,000
                                         Manufactured Home (unit only).  section manufactured
                                                                         home price. Note 1.
Manufactured Home Loan Program........  Manufactured Home Lot (lot      Indexed to median sales            23,226  160.2................          37,205
                                         only).                          price for new single-
                                                                         family homes. Note 2.
Manufactured Home Loan Program........  Single-section Manufactured     Limit for Single-Section   92,904 (69,678  NA...................         109,805
                                         Home and Lot (Combination       + Limit for Lot Loan.          + 23,226)                              (72,600 +
                                         Loan).                                                                                                  37,205)
Manufactured Home Loan Program........  Double- or greater-section      Limit for Double- or       92,904 (69,678  NA...................         169,205
                                         Manufactured Home and Lot       Multi-Section + Limit          + 23,226)                             (132,000 +
                                         (Combination Loan).             for Lot Loan.                                                           37,205)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Table 3 Notes:
1. Indexing to occur at the beginning of each year, based on the weighted average price data for the most recent 12 months available from the
  Manufactured Housing Survey.
2. Indexing to occur at the beginning of each year, based on the median sales price of the most recent 12 months available from the New Residential
  Sales data.

    As discussed in the proposed Sec.  201.10(h), HUD would annually 
adjust future loan limits using the above methodology and post new loan 
limits, including an explanation of the calculation by notice, such as 
through a Title I letter and on HUD.gov.

III. Manufactured Home Improvement Loans

    This proposed rule does not propose an index for Manufactured Home 
Improvement Loans, which are insured under regulations for the Property 
Improvement Loan program. While HERA authorized adjustments to the 
limit of loans that finance improvements to manufactured homes under 
the Property Improvement Loan program, that authorization was not 
extended to site-built condominiums, townhomes, or detached dwellings. 
HUD does not believe any existing Census Bureau data fully reflect 
changes in the manufactured housing property improvement loan market. 
Therefore, the implementation of HERA regarding Manufactured Home 
Improvement Loans would be subject to inaccuracy. Additionally, setting 
different loan limits for only this subset of the broader Property 
Improvement Loan program would cause complication, as the program and 
market for property improvements makes no other differentiation between 
improvements to manufactured homes vs. non manufactured homes. 
Therefore, HUD intends to publish an advanced notice of proposed 
rulemaking requesting public comment seeking input on implementation of 
a Property Improvement Loan index for manufactured homes.
    Because the Manufactured Home Improvement Loan program is such a 
small subset of the overall Property Improvement Loan program, HUD 
believes that this delay in the implementation of HERA to Manufactured 
Home Improvement Loans would have minimal, if any, effect on the 
Property Improvement Loan program. However, HUD seeks comment on the 
impact of delaying increases to the loan limit for Manufactured Home 
Improvement Loans.

IV. Findings and Certifications

Regulatory Review--Executive Orders 12866 and 13563

    Pursuant to Executive Order 12866 (Regulatory Planning and Review), 
a determination must be made whether a regulatory action is significant 
and therefore, subject to review by the Office of Management and Budget 
(OMB) in accordance with the requirements of the order. Executive Order 
13563 (Improving Regulations and Regulatory Review) directs executive 
agencies to analyze regulations that are ``outmoded, ineffective, 
insufficient, or excessively burdensome, and to modify, streamline, 
expand, or repeal them in accordance with what has been learned.'' 
Executive

[[Page 63021]]

Order 13563 also directs that, where relevant, feasible, and consistent 
with regulatory objectives, and to the extent permitted by law, 
agencies are to identify and consider regulatory approaches that reduce 
burdens and maintain flexibility and freedom of choice for the public.
    This proposed rule has been determined to be a ``significant 
regulatory action,'' as defined in section 3(f) of the order, but not 
economically significant under section 3(f)(1) of the order. The docket 
file is available for public inspection in the Regulations Division, 
Office of General Counsel, Department of Housing and Urban Development, 
451 7th Street SW, Room 10276, Washington, DC 20410-0500. Due to 
security measures at the HUD Headquarters building, please schedule an 
appointment to review the docket file by calling the Regulations 
Division at 202-402-3055 (this is not a toll-free number). Individuals 
can dial 7-1-1 to access the Telecommunications Relay Service (TRS), 
which permits users to make text-based calls, including Text Telephone 
(TTY) and Speech to Speech (STS) calls.

Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA) (5 U.S.C. 601 et seq.) 
generally requires an agency to conduct a regulatory flexibility 
analysis of any rule subject to notice and comment rulemaking 
requirements, unless the agency certifies that the rule will not have a 
significant economic impact on a substantial number of small entities.
    Accordingly, the undersigned certifies that the proposed rule will 
not have a significant economic impact on a substantial number of small 
entities. Notwithstanding HUD's determination that this rule will not 
have a significant effect on a substantial number of small entities, 
HUD specifically invites comments regarding any less-burdensome 
alternatives to this rule that will meet HUD's objectives as described 
in the preamble to this rule.

Environmental Impact

    This proposed rule would establish and review loan limits. 
Accordingly, under 24 CFR 50.19(c)(6) this proposed rule is 
categorically excluded from environmental review under the National 
Environmental Policy Act of 1969 (42 U.S.C. 4321).

Executive Order 13132--Federalism

    Executive Order 13132 (entitled ``Federalism'') prohibits an agency 
from publishing any rule that has federalism implications if the rule 
either: (i) imposes substantial direct compliance costs on state and 
local governments and is not required by statute, or (ii) preempts 
state law, unless the agency meets the consultation and funding 
requirements of section 6 of the Executive order. This proposed rule 
does not have federalism implications and does not impose substantial 
direct compliance costs on state and local governments or preempt state 
law within the meaning of the Executive order.

Unfunded Mandates Reform Act

    Title II of the Unfunded Mandates Reform Act of 1995 (2 U.S.C. 
1531-1538) (UMRA) establishes requirements for Federal agencies to 
assess the effects of their regulatory actions on state, local, and 
tribal governments, and on the private sector. This proposed rule would 
not impose any Federal mandates on any state, local, or tribal 
governments, or on the private sector, within the meaning of the UMRA.

List of Subjects in 24 CFR Part 201

    Claims, Health facilities, Historic preservation, Home improvement, 
Loan programs-housing and community development, Manufactured homes, 
Mortgage insurance, Reporting and recordkeeping requirements.

    For the reasons discussed in the preamble, HUD proposes to amend 24 
CFR part 201 as follows:

PART 201--TITLE I PROPERTY IMPROVEMENT AND MANUFACTURED HOME LOANS

0
1. The authority for 24 CFR part 201 continues to read as follows:

    Authority:  12 U.S.C. 1703; 15 U.S.C. 1639c; 42 U.S.C. 3535(d).

0
2. Amend Sec.  201.2 by revising the definition of ``Manufactured 
home'' to read as follows:


Sec.  201.2   Definitions.

* * * * *
    Manufactured home means a transportable structure, comprised of one 
or more modules, each built on a permanent chassis, with or without a 
permanent foundation, designed for occupancy as a principal residence 
by a single family. For purposes of the annual adjustments to loan 
limits under this part, a manufactured home may be a single-section 
home comprised of one module, a double-section home comprised of two 
modules, or a multi-section home comprised of three or more modules. A 
new manufactured home shall comply with the minimum property standards 
prescribed by the Secretary to assure its livability and durability 
that are published as the Manufactured Home Construction and Safety 
Standards implementing the National Manufactured Housing Construction 
and Safety Standards Act of 1974, 42 U.S.C. 5401-5426, at 24 CFR part 
3280. To qualify for a manufactured home loan insured under this part, 
an existing manufactured home must have been constructed in accordance 
with standards published at 24 CFR part 3280 and must meet standards 
similar to the minimum property standards applicable to existing homes 
insured under title II of the Act, as prescribed by the Secretary.
* * * * *
0
3. Amend Sec.  201.10 as follows:
0
a. In paragraph (a)(1)(i), remove ``$17,500'' and add in its place 
``$25,090'';
0
b. Revise the introductory texts of paragraphs (b)(1) and (2), 
paragraph (c), the introductory texts of paragraphs (d)(1) and (2), and 
the introductory text of paragraph (f)(5); and
0
c. Add paragraph (h).
    The revisions and addition read as follows:


Sec.  201.10   Loan amounts.

* * * * *
    (b) * * *
    (1) The total principal obligation for a loan to purchase a new 
manufactured home shall not exceed the sum of the following itemized 
amounts, up to a maximum set according to an index established by HUD 
in paragraph (h)(1) of this section and updated through notice which 
shall establish separate loan limits for single-section homes and 
double-section or multi-section homes:
* * * * *
    (2) The total principal obligation for a loan to purchase an 
existing manufactured home shall not exceed the lesser of the following 
amounts, up to a maximum set according to an index established by HUD 
in paragraph (h)(1) of this section and updated through notice which 
shall establish separate loan limits for double-section or multi-
section homes:
* * * * *
    (c) Manufactured home lot loans. The total principal obligation for 
a loan to purchase and, if necessary, develop a lot suitable for a 
manufactured home, including on-site water and utility connections, 
sanitary facilities, site improvements and landscaping, shall not 
exceed 95 percent of either the appraised value of the developed lot 
(as determined by a HUD-approved appraisal) or the total of the 
purchase price and development costs, whichever is less, up to a 
maximum set according to an index established by HUD in

[[Page 63022]]

paragraph (h)(2) of this section and updated through notice.
    (d) * * *
    (1) The total principal obligation for a loan to purchase a new 
manufactured home and a lot on which to place the home shall not exceed 
the sum of the following itemized amounts, up to a maximum set 
according to an index established by HUD in paragraph (h)(3) of this 
section and updated through notice which shall establish separate loan 
limits for single-section homes and double-section or multi-section 
homes:
* * * * *
    (2) The total principal obligation for a Combination Loan, to 
purchase an existing manufactured home and lot, shall not exceed the 
lesser of the following amounts, up to a maximum set according to an 
index established by HUD in paragraph (h)(3) of this section and 
updated through notice which shall establish separate loan limits for 
single-section homes and double-section or multi-section homes:
* * * * *
    (f) * * *
    (5) When a borrower's existing manufactured home is being 
refinanced in connection with the purchase of a manufactured home lot, 
the total principal obligation of the combination loan shall not exceed 
the lesser of the following amounts, up to the maximum established in 
paragraph (h)(3) of this section:
* * * * *
    (h) Annual adjustments. HUD shall adjust the following loan limits 
annually through notice:
    (1) In paragraphs (b)(1) and (2) of this section, the single-
section manufactured home loan limit shall be adjusted to reflect 
changes in the average price of single-section manufactured home sales 
and the double-section or multi-section manufactured home loan limit 
shall be increased to reflect changes in double-section manufactured 
home sales, according to data published by the Census Bureau, except 
that the loan limits shall not be set below $69,678.
    (2) In paragraph (c) of this section, the manufactured home lot 
loan limit shall be increased to reflect changes in the average price 
of all single-family home sales according to data published by HUD, 
except that the loan limit shall not be set below $23,226.
    (3) In paragraphs (d)(1) and (2) of this section, the combination 
manufactured home and lot loan limits shall be increased to be the sum 
of the applicable loan limit for the manufactured home loan in 
paragraph (b)(1) of this section and the lot loan limit in paragraph 
(c) of this section, except that the loan limit shall not be set below 
$92,904.

Julia R. Gordon,
Assistant Secretary for Housing, FHA Commissioner.
[FR Doc. 2022-22535 Filed 10-17-22; 8:45 am]
BILLING CODE 4210-67-P
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