2502-AI92 201410 The Regulatory Plan and the Unified Agenda of Federal Regulatory and Deregulatory Actions 2502 Office of Housing OH 2500 Department of Housing and Urban Development HUD Federal Housing Administration (FHA): Refinancing an Existing Cooperative Under Section 207 Pursuant to Section 223(f) of the National Housing Act (FR-5395)

This rule revises HUD's regulations governing the eligibility for FHA insurance of mortgages used for the purchase or refinancing of existing multifamily housing projects. Although the statutory language authorizing such insurance does not distinguish between rental or cooperative multifamily projects, HUD's current regulations limit FHA insurance to existing rental projects. Given the continued credit crunch in the capital markets and the downturn in the multifamily market, HUD has determined that it is an appropriate time to reconsider this regulatory imposed limitation with respect to the mortgage insurance for the refinancing of cooperative projects. As mortgage lenders strive to increase capital reserves and tighten underwriting standards, the availability of financing for multifamily housing has been reduced. FHA mortgage insurance could significantly improve the availability of funds and permit more favorable interest rates than would otherwise be likely. Accordingly, this rule revises HUD's regulations to enable existing multifamily cooperative project owners to obtain FHA insurance for the refinancing of existing indebtedness.

]]> Substantive, Nonsignificant Previously Published in The Unified Agenda Completed Actions No No 24 CFR 200 12 USC 1703 12 USC 1709 12 USC 1715b 42 USC 3535(d) No NPRM 02/01/2011 76 FR 5518 NPRM Comment Period End 04/04/2011 Final Action 07/21/2014 79 FR 42187 Includes Retrospective Review under Executive Order 13563. No None No No No Jim Carey Director, Program Administration Division, Office of Multifamily Housing Production 2502 Office of Housing OH 202 402-3293 451 7th Street, SW, Washington DC 20410