HUD recently released Notice H 2013-27 to all Multifamily Hub Directors announcing the annual base city High Cost Percentage (HCP) and High Cost Area revisions for 2013. The FY 2008 Consolidated Appropriations Act revised the statutory exceptions to maximum mortgage amounts for FHA Multifamily Housing Programs, but did not define HCP percentages or which areas are to be considered High Cost Areas. HUD’s Office of Multifamily Development is charged with developing a list of High Cost Areas and revised HCP multipliers. Hub Offices are then able to determine whether their area is considered a High Cost Area and whether projects are eligible for a 215 percent HCP increase, or greater. The revised Base City HCPs and High Cost Area list is effective January 1, 2014.
Click here to read Notice H 2013-27.
