Daily Rules, Proposed Rules, and Notices of the Federal Government
The FHA Downpayment Simplification Act of 2002 (Pub. L. 107-326, approved December 4, 2002) amended the National Housing Act by adding a new Section 206A (12 U.S.C. 1712a). Under Section 206A, the following are affected:
(1) Section 207(c)(3)(A) (12 U.S.C. 1713(c)(3)(A));
(2) Section 213(b)(2)(A) (12 U.S.C. 1715e(b)(2)(A));
(3) Section 220(d)(3)(B)(iii)(I) (12 U.S.C. 1715k(d)(3)(B)(iii)(I));
(4) Section 221(d)(3)(ii)(I) (12 U.S.C. 1715l(d)(3)(ii)(I));
(5) Section 221(d)(4)(ii)(I) (12 U.S.C. 1715l(d)(4)(ii)(I));
(6) Section 231(c)(2)(A) (12 U.S.C. 1715v(c)(2)(A)); and
(7) Section 234(e)(3)(A) (12 U.S.C. 1715y(e)(3)(A)).
The dollar amounts in these sections, which are collectively referred to as the `Dollar Amounts,' shall be adjusted annually (commencing in 2004) on the effective date of the Federal Reserve Board's adjustment of the $400 figure in the Home Ownership and Equity Protection Act of 1994 (HOEPA) (Pub. L. 103-325, approved September 23, 1994). The adjustment of the Dollar Amounts shall be calculated using the percentage change in the Consumer Price Index for All Urban Consumers (CPI-U) as applied by the Federal Reserve Board for purposes of the above-described HOEPA adjustment.
HUD has been notified of the percentage change in the CPI-U used for the HOEPA adjustment and the effective date of the HOEPA adjustment. The percentage change in the CPI-U is 0.9926 percent (1.00-.0074) and the effective date of the HOEPA adjustment is January 1, 2010. The Dollar Amounts have been adjusted correspondingly and have an effective date of January 1, 2010.
The adjusted Dollar Amounts for calendar year 2010 are shown below:
▪ Section 207—Multifamily Housing
▪ Section 207 pursuant to Section 223(f)—Purchase or refinance housing
▪ Section 220—Housing in urban renewal areas
▪ Section 213—Cooperatives
▪ Section 221(d)(3)—Moderate income housing
▪ Section 234—Condominium housing
▪ Section 221(d)(4)—Moderate income housing
▪ Section 231—Housing for the Elderly
▪ Section 207—Manufactured Home Parks