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HUD Publishes Notice Lowering MIPs for 2004

Wednesday, October 8, 2003 - 1:45AM

The U.S. Department of Housing and Urban Development published a notice yesterday lowering mortgage insurance premiums (MIP) in fiscal year (FY) 2004. Effective October 1, MIPs were lowered to 50 basis points for multifamily programs authorized under sections 207, 220, and 221(d)(4) of the National Housing Act and without low-income housing tax credits (LIHTCs); Section 231 of the National Housing Act; and insured programs with HOPE VI with or without LIHTCs. Multifamily programs under the following sections will remain at 80 basis points and will continue to require a credit subsidy obligation: Section 221(d)(3) for not-for-profit and cooperatives for new construction or rehabilitation, Section 223(d) for operating loss loans for both apartments and health care facilities, and Section 241(a) for supplemental loans for additions or improvements to existing apartments. The MIP for sections 223(a)(7), and 207 pursuant to 223(f), 232, 232 pursuant to 223(f), 242, and 241(a) for health care facilities, Title XI, and low-income housing tax credit projects remain unchanged at 50 basis points. Click here for a copy of the notice.

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