[House Report 108-247]
[From the U.S. Government Publishing Office]
108th Congress Report
HOUSE OF REPRESENTATIVES
1st Session 108-247
======================================================================
FHA MULTIFAMILY LOAN LIMIT ADJUSTMENT ACT OF 2003
_______
September 3, 2003.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
_______
Mr. Oxley, from the Committee on Financial Services, submitted the
following
R E P O R T
[To accompany H.R. 1985]
[Including cost estimate of the Congressional Budget Office]
The Committee on Financial Services, to whom was referred the
bill (H.R. 1985) to amend the National Housing Act to increase
the maximum mortgage amount limit for FHA-insured mortgages for
multifamily housing located in high-cost areas, having
considered the same, report favorably thereon with an amendment
and recommend that the bill as amended do pass.
CONTENTS
Page
Amendment........................................................ 1
Purpose and Summary.............................................. 2
Background and Need for Legislation.............................. 2
Hearings......................................................... 3
Committee Consideration.......................................... 4
Committee Votes.................................................. 4
Committee Oversight Findings..................................... 4
Performance Goals and Objectives................................. 4
New Budget Authority, Entitlement Authority, and Tax Expenditures 4
Committee Cost Estimate.......................................... 4
Congressional Budget Office Cost Estimate........................ 4
Federal Mandates Statement....................................... 6
Advisory Committee Statement..................................... 6
Constitutional Authority Statement............................... 6
Applicability to Legislative Branch.............................. 6
Section-by-Section Analysis...................................... 6
Changes in Existing Law Made by the Bill, as Reported............ 7
Amendment
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``FHA Multifamily Loan Limit Adjustment
Act of 2003''.
SEC. 2. MAXIMUM MORTGAGE AMOUNT LIMIT FOR MULTIFAMILY HOUSING IN HIGH-
COST AREAS.
In the National Housing Act, sections 207(c)(3), 213(b)(2)(B)(i),
220(d)(3)(B)(iii)(II), 221(d)(3)(ii)(II), 221(d)(4)(ii)(II),
231(c)(2)(B), and 234(e)(3)(B) (12 U.S.C. 1713(c)(3),
1715e(b)(2)(B)(i), 1715k(d)(3)(B)(iii)(II), 1715l(d)(3)(ii)(II),
1715l(d)(4)(ii)(II), 1715v(c)(2)(B)), and 1715y(e)(3)(B)) are each
amended--
(1) by striking ``110 percent'' and inserting ``170
percent''; and
(2) by striking ``140 percent'' and inserting ``170
percent''.
SEC. 3. CATCH-UP ADJUSTMENTS TO CERTAIN MAXIMUM MORTGAGE AMOUNT LIMITS.
(a) Section 207 Limits.--Section 207(c)(3) of the National Housing
Act (12 U.S.C. 1713(c)(3)) is amended by striking ``$11,250'' and
inserting ``$17,460''.
(b) Section 213 Limits.--Section 213(b)(2)(A) of the National Housing
Act (12 U.S.C. 1715e(b)(2)(A)) is amended--
(1) by striking ``$38,025'', ``$42,120'', ``$50,310'',
``$62,010'', and ``$70,200'' and inserting ``$41,207'',
``$47,511'', ``$57,300'', ``$73,343'', and ``$81,708'',
respectively; and
(2) by striking ``$49,140'', ``$60,255'', ``$75,465'', and
``$85,328'' and inserting ``$49,710'', ``$60,446'',
``$78,197'', and ``$85,836'', respectively.
Purpose and Summary
H.R. 1985, the FHA Multifamily Loan Limit Adjustment Act of
2003, amends the National Housing Act to increase the maximum
mortgage amount limit for FHA-insured mortgages for multifamily
housing located in high-cost areas. It changes the statutory
maximum adjustment percentage for geographic areas from 110 to
170 percent, which changes HUD's maximum high cost percentage
to 270 percent. Providing the HUD Secretary additional
flexibility to increase the maximum loan limits in high cost
areas greatly improves the FHA multifamily mortgage insurance
programs, particularly in extremely high-cost geographical
areas. With severe shortages of affordable rental housing in
most of the high cost markets, this change enables developers
to provide much-needed new affordable housing to low- and
moderate-income families.
Background and Need for Legislation
Since its inception in 1934, the Federal Housing
Administration (FHA) has provided vital public services
contributing to the health and well-being of individuals and
communities through its nationally administered programs. After
being consolidated into the Department of Housing and Urban
Development's (HUD) Office of Housing in 1965, the FHA
continued its core mission of contributing to the building and
maintenance of healthy, prosperous neighborhoods and expanding
opportunities for affordable home ownership, rental housing and
healthcare.
The FHA is one of the most effective programs in helping
low-income buyers purchase their first home. It was originally
designed to encourage lenders to make credit more readily
available and at lower rates. Through the FHA program, HUD
insures mortgages and loans made by HUD-approved lenders for a
wide variety of purposes, including new construction,
rehabilitation, property improvement, and refinancing in
connection with a wide variety of types of property. FHA
programs include all types of residential property
(multifamily, single family, manufactured homes),
nonresidential commercial property, hospitals, and certain
other healthcare facilities.
Through its numerous multifamily housing programs, HUD is a
primary partner in the development of affordable rental
housing. FHA provides mortgage insurance to HUD-approved
lenders to facilitate the construction, substantial
rehabilitation, purchase, and refinancing of multifamily
housing projects and healthcare facilities. Mortgage insurance
covers the lender if a borrower defaults on the insured loan.
Section 221(d)(3), section 221(d)(4) (Mortgage Insurance for
Rental and Cooperative Housing), and section 223(f) (Mortgage
Insurance for Nursing Homes, Intermediate Care, Board and Care,
and Assisted Living Facilities), are multifamily housing's most
widely used mortgage insurance programs for the financing and
refinancing of apartments and healthcare facilities.
The FHA multifamily mortgage insurance program is a
critical source of financing for affordable multifamily rental
housing. During the previous two years, Congress supported and
implemented improvements to the program, including increasing
the base loan limits by 25 percent and indexing the loan limits
to inflation, which begins in 2004. As a result, loan volumes
have increased significantly in many areas of the country where
the program previously was not working.
However, there are a number of high-cost urban markets,
such as New York, Boston, San Francisco, Chicago and Los
Angeles, where construction costs are significantly higher than
in other areas of the country, and the high-cost factors have
not been sufficient to allow use of the FHA multifamily
mortgage insurance programs.
Under current statute, the HUD Secretary may increase the
loan limits in high cost geographic areas up to a maximum that
is expressed as a specific percentage (currently 110 percent)
above the statute's base limit. The Secretary may also increase
the loan limits on a project-by-project basis up to a level
that is a specific percentage (currently 140 percent) above the
base limit, if it is deemed necessary because of high costs.
HUD publishes high cost percentages that are used to
determine FHA multifamily mortgage limits in high cost areas.
These high cost percentages are expressed as a percentage of
the base limit, as opposed to a percentage above the base limit
as expressed in the statute.
Hearings
The Subcommittee on Housing and Community Opportunity held
a hearing on July 22, 2003 on H.R. 1985, the FHA Multifamily
Loan Limit Adjustment Act of 2003. The following witnesses
testified: The Honorable John Weicher, Assistant Secretary,
Housing/Federal Housing Commissioner, U.S. Department of
Housing and Urban Development; Mr. Howard Earl Cohen,
President, The Beacon Companies, LLP; Ms. Linda D. Cheatham,
Senior Vice President, Berkshire Mortgage Finance on behalf of
the Mortgage Bankers Association of America; Mr. Casimir
Kolaski, President, Kolaski Housing Advisors, Inc.; and Mr.
Gary H. Ruping, President, Ruping Builders, Inc., on behalf of
the National Association of Home Builders.
Committee Consideration
On July 22, 2003, the Subcommittee on Housing and Community
Opportunity met in open session and approved H.R. 1985, the FHA
Multifamily Loan Limit Adjustment Act of 2003, for full
committee consideration by a voice vote.
On July 23, 2003, the Committee on Financial Services met
in open session and considered H.R. 1985 (pursuant to rule
2(b)(4) of the Rules of the Committee on Financial Services for
the 108th Congress) and ordered the bill reported to the House,
with an amendment, with a favorable recommendation, by a voice
vote.
Committee Votes
Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires the Committee to list the record votes
on the motion to report legislation and amendments thereto. No
record votes were taken in conjunction with the consideration
of this legislation. A motion by Mr. Oxley to report the bill
to the House with a favorable recommendation was agreed to by a
voice vote.
Committee Oversight Findings
Pursuant to clause 3(c)(1) of rule XIII of the Rules of the
House of Representatives, the Committee made findings that are
reflected in this report.
Performance Goals and Objectives
Pursuant to clause 3(c)(4) of rule XIII of the Rules of the
House of Representatives, the Committee establishes the
following performance related goals and objectives for this
legislation:
The FHA will use the authority granted in this bill to
improve the availability of multifamily housing in the United
States.
New Budget Authority, Entitlement Authority, and Tax Expenditures
In compliance with clause 3(c)(2) of rule XIII of the Rules
of the House of Representatives, the Committee adopts as its
own the estimate of budget authority, entitlement authority, or
tax expenditures or revenues contained in the cost estimate
prepared by the Director of the Congressional Budget Office
pursuant to section 402 of the Congressional Budget Act of
1974.
Committee Cost Estimate
The Committee adopts as its own the cost estimate prepared
by the Director of the Congressional Budget Office pursuant to
section 402 of the Congressional Budget Act of 1974.
Congressional Budget Office Estimate
Pursuant to clause 3(c)(3) of rule XIII of the Rules of the
House of Representatives, the following is the cost estimate
provided by the Congressional Budget Office pursuant to section
402 of the Congressional Budget Act of 1974:
U.S. Congress,
Congressional Budget Office,
Washington, DC, August 15, 2003.
Hon. Michael G. Oxley,
Chairman, Committee on Financial Services,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 1985, the FHA
Multifamily Loan Limit Adjustment Act of 2003.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Susanne S.
Mehlman.
Sincerely,
Douglas Holtz-Eakin,
Director.
Enclosure.
H.R. 1985--FHA Multifamily Loan Limit Adjustment Act of 2003
CBO estimates that implementing H.R. 1985 would have no
significant Federal cost and would not affect direct spending
or revenues. H.R. 1985 contains no intergovernmental or
private-sector mandates as defined in the Unfunded Mandates
Reform Act and would impose no costs on State, local, or tribal
governments.
Under the National Housing Act, the Federal Housing
Administration (FHA) is authorized to insure private loans used
to finance certain multifamily homes, subject to certain
limitations specified in appropriation acts. H.R. 1985 would
increase the current limit on the value of loans that FHA can
guarantee in certain high-cost areas of the country under six
different loan guarantee programs. (High-cost housing markets
include such cities as Boston, San Francisco, and Los Angeles.)
FHA would be able to insure loans at higher levels in other
parts of the country as well, but on a project-by-project
basis.
Under current law, most FHA programs that guarantee
multifamily mortgages have a negative subsidy rate as estimated
under credit reform procedures, resulting in net offsetting
collections to the government. That is, guarantee fees paid to
FHA for new mortgages more than offset the cost of expected
defaults, resulting in net collections from five of the six
loan guarantee programs affected by the bill. (One of the
programs that would be affected by the bill--loans to support
housing for moderate income and displaced families--is
estimated to have a positive subsidy rate of 5.35 percent in
2004). In 2002, FHA insured about $5 billion in loans for
multifamily projects. The budgetary impact of those guarantees
was recorded as discretionary savings of about $20 million.
If FHA made additional loan guarantees as a result of the
higher cap on the value of loans in high-cost areas, the agency
would record additional offsetting collections (which would be
a reduction is discretionary spending). Based on information
from FHA, however, CBO does not expect that demand for
multifamily housing guarantees would increase significantly
under this bill. In many high-cost areas of the country,
additional problems, such as regulatory barriers and market
forces (e.g., supply of suitable sites), also contribute to the
lack of multifamily housing. Therefore, CBO estimates that any
additional collections under the bill would be insignificant
over the next five years.
The CBO staff contact for this estimate is Susanne S.
Mehlman. This estimate was approved by Peter H. Fontaine,
Deputy Assistant Director for Budget Analysis.
Federal Mandates Statement
The Committee adopts as its own the estimate of Federal
mandates prepared by the Director of the Congressional Budget
Office pursuant to section 423 of the Unfunded Mandates Reform
Act.
Advisory Committee Statement
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act were created by this
legislation.
Constitutional Authority Statement
Pursuant to clause 3(d)(1) of rule XIII of the Rules of the
House of Representatives, the Committee finds that the
Constitutional Authority of Congress to enact this legislation
is provided by Article 1, section 8, clause 1 (relating to the
defense and general welfare of the United States), and clause 3
(relating to the power to regulate foreign and interstate
commerce).
Applicability to Legislative Branch
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act.
Section-by-Section Analysis of the Legislation
Section 1. Short title
This section establishes the short title of the bill, the
``FHA Multifamily Loan Limit Adjustment Act of 2003.''
Section 2. Maximum mortgage amount limit for multifamily housing in
high-cost areas
This section amends the National Housing Act at (1) section
207(c)(3) (Rental Housing; 12 U.S.C. 1713(c)(3)), (2) section
213(b)(2)(B)(i) (Cooperative Housing; 12 U.S.C.
1715e(b)(2)(B)(i)), (3) section 220(d)(3)(B)(iii)(II)
(Rehabilitation and Neighborhood Conservation Housing; 12
U.S.C. 1715k(d)(3)(B)(iii)(II)), (4) sections 221(d)(3)(ii)(II)
and 221(d)(4)(ii)(II) (Housing for Moderate Income and
Displaced Families; 12 U.S.C. 1715l(d)(3)(ii)(II) and
1715l(d)(4)(ii)(II)), (5) section 231(c)(2)(B) (Housing for
Elderly Persons; 12 U.S.C. 1715v(c)(2)(B)), and (6) section
234(e)(3)(B) (Condominiums; 12 U.S.C. 1715y(e)(3)(B)) to grant
the Secretary of Housing and Urban Development (HUD) the
authority to increase, by regulation, the eligible FHA
insurance mortgage dollar amount limits in geographic areas of
high cost by up to 170 percent. This updates the current 110
percent limit on the promulgated amount and raises the project-
by-project limit from 140 percent to 170 percent. In addition,
this raises the baseline unit mortgage insurance limits for
cooperative housing to reflect increases in construction costs
that have been applied to other multi-family housing programs.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, existing law in which no change is
proposed is shown in roman):
NATIONAL HOUSING ACT
* * * * * * *
TITLE II--MORTGAGE INSURANCE
* * * * * * *
rental housing insurance
Sec. 207. (a) * * *
* * * * * * *
(c) To be eligible for insurance under this section a
mortgage on any property or project shall involve a principal
obligation in an amount--
(2) * * *
(3)(A) not to exceed, for such part of the property
or projects as may be attributable to dwelling use
(excluding exterior and land improvements as defined by
the Secretary), $38,025 per family unit without
bedroom, $42,120 per family unit with one bedroom,
$50,310 per family unit with two bedrooms, $62,010 per
family unit with three bedrooms, and $70,200 per family
unit with four or more bedrooms, or not to exceed
[$11,250] $17,460 per space; except that as to projects
to consist of elevator-type structures the Secretary
may, in his discretion, increase the dollar amount
limitations per family unit to not to exceed $43,875
per family unit without a bedroom, $49,140 per family
unit with one bedroom, $60,255 per family unit with two
bedrooms, $75,465 per family unit with three bedrooms,
and $85,328 per family unit with four or more bedrooms,
as the case may be, to compensate for the higher costs
incident to the construction of elevator type
structures of sound standards of construction and
design; and except that the Secretary may, by
regulation, increase any of the foregoing dollar amount
limitations contained in this paragraph by not to
exceed [110 percent] 170 percent in any geographical
area where the Secretary finds that cost levels so
require and not to exceed [140 percent] 170 percent
where the Secretary determines it necessary on a
project-by-project basis, but in no case may any such
increase exceed 90 percent where the Secretary
determines that a mortgage purchased or to be purchased
by the Government National Mortgage Association in
implementing its special assistance functions under
section 305 of this Act (as such section existed
immediately before November 30, 1983) is involved.
* * * * * * *
cooperative housing insurance
Sec. 213. (a) * * *
(b) To be eligible for insurance under this section a
mortgage on any property or project of a corporation or trust
of the character described in paragraph numbered (1) of
subsection (a) of this section shall involve a principal
obligation in an amount--
(2)(A) not to exceed, for such part of the property
or project as may be attributable to dwelling use
(excluding exterior land improvements as defined by the
Secretary), [$38,025] $41,207 per family unit without a
bedroom, [$42,120] $47,511 per family unit with one
bedroom, [$50,310] $57,300 per family unit with two
bedrooms, [$62,010] $73,343 per family unit with three
bedrooms, and [$70,200] $81,708 per family unit with
four or more bedrooms, and not to exceed 98 per centum
of the amount which the Secretary estimates will be the
replacement cost of the property or project when the
proposed physical improvements are completed: Provided,
That as to projects to consist of elevator-type
structures the Secretary may, in his discretion,
increase the dollar amount limitations per family unit
to not to exceed $43,875 per family unit without a
bedroom, [$49,140] $49,710 per family unit with one
bedroom, [$60,255] $60,446 per family unit with two
bedrooms, [$75,465] $78,197 per family unit with three
bedrooms, and [$85,328] $85,836 per family unit with
four or more bedrooms, as the case may be, to
compensate for the higher cost incident to the
construction of elevator-type structures of sound
standards of construction and design; (B)(i) the
Secretary may, by regulation, increase any of the
dollar amount limitations in subparagraph (A) (as such
limitations may have been adjusted in accordance with
section 206A of this Act) by not to exceed [110
percent] 170 percent in any geographical area where the
Secretary finds that cost levels so require and not to
exceed [140 percent] 170 percent where the Secretary
determines it necessary on a project-by-project basis,
but in no case may any such increase exceed 90 percent
where the Secretary determines that a mortgage
purchased or to be purchased by the Government National
Mortgage Association in implementing its special
assistance functions under section 305 of this Act (as
such section existed immediately before November 30,
1983) is involved; and (ii) in the case of a mortgagor
of the character described in paragraph (3) of
subsection (a) the mortgage shall involve a principal
obligation in an amount not to exceed 90 per centum of
the amount which the Secretary estimates will be the
replacement cost of the property or project when the
proposed physical improvements are completed; and (iii)
upon the sale of a property or project by a mortgagor
of the character described in paragraph (3) of
subsection (a) to a nonprofit cooperative ownership
housing corporation or trust within two years after the
completion of such property or project the mortgage
given to finance such sale shall involve a principal
obligation in an amount not to exceed the maximum
amount computed in accordance with this subparagraph
(B)(i).
* * * * * * *
rehabilitation and neighborhood conservation housing insurance
Sec. 220. (a) * * *
* * * * * * *
(d) To be eligible for insurance under this section a
mortgage shall meet the following conditions:
(1) * * *
* * * * * * *
(3) The mortgage shall--
(A) * * *
(B)(ii) * * *
(iii)(I) not to exceed, for such part of the property
or project as may be attributable to dwelling use
(excluding exterior land improvements as defined by the
Secretary), $38,025 per family unit without a bedroom,
$42,120 per family unit with one bedroom, $50,310 per
family unit with two bedrooms, $62,010 per family unit
with three bedrooms, and $70,200 per family unit with
four or more bedrooms, except that as to projects to
consist of elevator-type structures the Secretary may,
in his discretion, increase the dollar amount
limitations per family unit not to exceed $43,875 per
family unit without a bedroom, $49,140 per family unit
with one bedroom, $60,255 per family unit with two
bedrooms, $75,465 per family unit with three bedrooms,
and $85,328 per family unit with four or more bedrooms,
as the case may be, to compensate for the higher costs
incident to the construction of elevator-type
structures of sound standards of construction and
design; and (II) with respect to rehabilitation
projects involving not more than five family units, the
Secretary may by regulation increase by 25 per centum
any of the dollar amount limitations in subparagraph
(B)(iii)(I) (as such limitations may have been adjusted
in accordance with section 206A of this Act) which are
applicable to units with two, three, or four or more
bedrooms with respect to dollar amount limitations
applicable to rehabilitation projects described in
subclause (II), the Secretary may, by regulation,
increase the dollar amount limitations contained in
subparagraph (B)(iii)(I) (as such limitations may have
been adjusted in accordance with section 206A of this
Act)) by not to exceed [110 percent] 170 percent in any
geographical area where the Secretary finds that cost
levels so require and by not to exceed [140 percent]
170 percent where the Secretary determines it necessary
on a project-by-project basis, but in no case may any
such increase exceed 90 percent where the Secretary
determines that a mortgage purchased or to be purchased
by the Government National Mortgage Association in
implementing its special assistance functions under
section 305 of this Act (as such section existed
immediately before November 30, 1983) is involved);
(III) That nothing contained in this subparagraph
(B)(iii)(I) shall preclude the insurance of mortgages
covering existing multifamily dwellings to be
rehabilitated or reconstructed for the purposes set
forth in subsection (a) of this section; (IV) with
respect to rehabilitation projects involving not more
than five family units, the Secretary may further
increase any of the dollar limitations which would
otherwise apply to such projects by not to exceed 20
per centum if such increase is necessary to account for
the increased cost of the project due to the
installation therein of a solar energy system (as
defined in subparagraph (3) of the last paragraph of
section 2(a) of this Act) or residential energy
conservation measures (as defined in section 210(11)(A)
through (G) and (I) of Public Law 95-619) in cases
where the Secretary determines that such measures are
in addition to those required under the minimum
property standards and will be cost-effective over the
life of the measure; and
* * * * * * *
housing for moderate income and displaced families
Sec. 221. (a) * * *
* * * * * * *
(d) To be eligible for insurance under this section, a
mortgage shall--
(1) * * *
* * * * * * *
(3) if executed by a mortgagor which is a public body
or agency (and, except with respect to a project
assisted or to be assisted pursuant to section 8 of the
United States Housing Act of 1937, which certifies that
it is not receiving financial assistance from the
United States exclusively pursuant to such Act), a
cooperative (including an investor-sponsor who meets
such requirements as the Secretary may impose to assure
that the consumer interest is protected), or a limited
dividend corporation (as defined by the Secretary), or
a private nonprofit corporation or association, or
other mortgagor approved by the Secretary, and
regulated or supervised under Federal or State laws or
by political subdivisions of States, or agencies
thereof, or by the Secretary under a regulatory
agreement or otherwise, as to rents, charges, and
methods of operation, in such form and in such manner
as in the opinion of the Secretary will effectuate the
purposes of this section--
(ii)(I) not exceed, for such part of the
property or project as may be attributable to
dwelling use (excluding exterior land
improvements as defined by the Secretary),
$42,048 per family unit without a bedroom,
$48,481 per family unit with one bedroom,
58,469 per family unit with two bedrooms,
$74,840 per family unit with three bedrooms,
and $83,375 per family unit with four or more
bedrooms; except that as to projects to consist
of elevator-type structures the Secretary may,
in his discretion, increase the dollar amount
limitations per family unit to not to exceed
$44,250 per family unit without a bedroom,
$50,724 per family unit with one bedroom,
$61,680 per family unit with two bedrooms,
$79,793 per family unit with three bedrooms,
and $87,588 per family unit with four or more
bedrooms, as the case may be, to compensate for
the higher costs incident to the construction
of elevator-type structures of sound standards
of construction and design; (II) the Secretary
may, by regulation, increase any of the dollar
amount limitations in subclause (I) (as such
limitations may have been adjusted in
accordance with section 206A of this Act) by
not to exceed [110 percent] 170 percent in any
geographical area where the Secretary finds
that cost levels so require and by not to
exceed [140 percent] 170 percent where the
Secretary determines it necessary on a project-
by-project basis, but in no case may any such
increase exceed 90 percent where the Secretary
determines that a mortgage purchased or to be
purchased by the Government National Mortgage
Association in implementing its special
assistance functions under section 305 of this
Act (as such section existed immediately before
November 30, 1983) is involved; and
* * * * * * *
(4) if executed by a mortgagor and which is approved
by the Secretary--
(ii)(I) not exceed, or such part of the
property or project as may be attributable to
dwelling use (excluding exterior land
improvements as defined by the Secretary),
$37,843 per family unit without a bedroom,
$42,954 per family unit with one bedroom,
$51,920 per family unit with two bedrooms,
$65,169 per family unit with three bedrooms,
and $73,846 per family unit with four or more
bedrooms; except that as to projects to consist
of elevator-type structures the Secretary may,
in his discretion, increase the dollar amount
limitations per family unit to not to exceed
$40,876 per family unit without a bedroom,
$46,859 per family unit with one bedroom,
$56,979 per family unit with two bedrooms,
$73,710 per family unit with three bedrooms,
and $80,913 per family unit with four or more
bedrooms, as the case may be, to compensate for
the higher costs incident to the construction
of elevator-type structures of sound standards
of construction and design; (II) the Secretary
may, by regulation, increase any of the dollar
limitations in subclause (I) (as such
limitations may have been adjusted in
accordance with section 206A of this Act) by
not to exceed [110 percent] 170 percent in any
geographical area where the Secretary finds
that cost levels so require and by not to
exceed [140 percent] 170 percent where the
Secretary determines it necessary on a project-
by-project basis, but in no case may any such
increase exceed 90 percent where the Secretary
determines that a mortgage purchased or to be
purchased by the Government National Mortgage
Association in implementing its special
assistance functions under section 305 of this
Act (as such section existed immediately before
November 30, 1983) is involved;
* * * * * * *
housing for elderly persons
Sec. 231. (a) * * *
* * * * * * *
(c) To be eligible for insurance under this section, a
mortgage to provide housing for elderly persons shall--
(2)(A) not to exceed, for such part of the property
or project as may be attributable to dwelling use
(excluding exterior land improvement as defined by the
Secretary), $35,978 per family unit without a bedroom,
$40,220 per family unit with one bedroom, $48,029 per
family unit with two bedrooms, $57,798 per family unit
with three bedrooms, and $67,950 per family unit with
four or more bedrooms; except that as to projects to
consist of elevator-type structures the Secretary may,
in his discretion, increase the dollar amount
limitations per family unit to not to exceed $40,876
per family unit without a bedroom, $46,859 per family
unit with one bedroom, $56,979 per family unit with two
bedrooms, $73,710 per family unit with three bedrooms,
and $80,913 per family unit with four or more bedrooms,
as the case may be, to compensate for the higher costs
incident to the construction of elevator-type
structures of sound standards of construction and
design; (B) the Secretary may, by regulation, increase
any of the dollar limitations in subparagraph (A) (as
such limitations may have been adjusted in accordance
with section 206A of this Act) by not to exceed [110
percent] 170 percent in any geographical area where the
Secretary finds that cost levels so require and by not
to exceed [140 percent] 170 percent where the Secretary
determines it necessary on a project-by-project basis,
but in no case may any such increase exceed 90 percent
where the Secretary determines that a mortgage
purchased or to be purchased by the Government National
Mortgage Association in implementing its special
assistance functions under section 305 of this Act (as
such section existed immediately before November 30,
1983) is involved; (C) the Secretary may, by
regulation, increase any of the dollar limitations in
subparagraph (A) (as such limitations may have been
adjusted in accordance with section 206A of this Act)
by not to exceed 20 per centum if such increase is
necessary to account for the increased cost of the
project due to the installation therein of a solar
energy system (as defined in subparagraph (3) of the
last paragraph of section 2(a) of this Act) or
residential energy conservation measures (as defined in
section 210(11) (A) through (G) and (I) of Public Law
95-619) in cases where the Secretary determines that
such measures are in addition to those required under
the minimum property standards and will be cost-
effective over the life of the measure;
* * * * * * *
mortgage insurance for condominiums
Sec. 234. (a) * * *
* * * * * * *
(e) To be eligible for insurance, a blanket mortgage on
any multi-family project of a mortgagor of the character
described in subsection (d) shall involve a principal
obligation in an amount--
(2) * * *
(3)(A) not to exceed, for such part of the project as
may be attributable to dwelling use (excluding exterior
land improvements as defined by the Secretary), $42,048
per family unit without a bedroom, $48,481 per family
unit with one bedroom, $58,469 per family unit with two
bedrooms, $74,840 per family unit with three bedrooms,
and $83,375 per family unit with four or more bedrooms;
except that as to projects to consist of elevator-type
structures the Secretary may, in his discretion,
increase the dollar amount limitations per family unit
to not to exceed $44,250 per family unit without a
bedroom, $50,724 per family unit with one bedroom,
$61,680 per family unit with two bedrooms, $79,793 per
family unit with three bedrooms, and $87,588 per family
unit with four or more bedrooms, as the case may be, to
compensate for higher costs incident to the
construction of elevator-type structures of sound
standards of construction and design; (B) the Secretary
may, by regulation, increase any of the dollar
limitations in subparagraph (A) (as such limitations
may have been adjusted in accordance with section 206A
of this Act) by not to exceed [110 percent] 170 percent
in any geographical area where the Secretary finds that
cost levels so require and by not to exceed [140
percent] 170 percent where the Secretary determines it
necessary on a project-by-project basis, but in no case
may any such increase exceed 90 percent where the
Secretary determines that a mortgage purchased or to be
purchased by the Government National Mortgage
Association in implementing its special assistance
functions under section 305 of this Act (as such
section existed immediately before November 30, 1983)
is involved; and
* * * * * * *