FHA Multifamily Mortgagee Letter 2025-11 — Annual Revisions to Base City High-Cost Percentage and High-Cost Areas; Annual Indexing of MAP Guide’s Substantial Rehabilitation and Large Loan Risk Mitigation Thresholds

Name: FHA Multifamily Mortgagee Letter 2025-11 — Annual Revisions to Base City High-Cost Percentage and High-Cost Areas; Annual Indexing of MAP Guide’s Substantial Rehabilitation and Large Loan Risk Mitigation Thresholds — machine-readable register
Creator: Claude for Compliance
License: https://creativecommons.org/licenses/by-nd/4.0/

hud-ml-2025-11

HUD / FHA Multifamily · a multifamily Mortgagee Letter, amending the Multifamily Accelerated Processing (MAP) Guide, HUD 4430.G REV-3 (the 2020 MAP Guide). It does not change the Single Family Housing Policy Handbook 4000.1. Effective 2025-01-01.

FHA Multifamily Mortgagee Letter 2025-11 — Annual Revisions to Base City High-Cost Percentage and High-Cost Areas; Annual Indexing of MAP Guide’s Substantial Rehabilitation and Large Loan Risk Mitigation Thresholds. Full verbatim text, substring-verified against snapshot e566afd6bc1969c1.

This register: .xlsx .csv

source:
  type: regulation
  id: hud-ml-2025-11
  authority: FHA Multifamily Mortgagee Letter 2025-11 — Annual Revisions to Base City High-Cost Percentage and High-Cost Areas; Annual Indexing of MAP Guide’s Substantial Rehabilitation and Large Loan Risk Mitigation Thresholds
  description: FHA Multifamily Mortgagee Letter 2025-11 — Annual Revisions to Base City High-Cost Percentage and High-Cost Areas; Annual Indexing of MAP Guide’s Substantial Rehabilitation and Large Loan Risk Mitigation Thresholds. Full verbatim text, substring-verified against snapshot e566afd6bc1969c1.
  source_class: fha-mortgagee-letter
  issued_date: '2025-04-14'
  effective_date: '2025-01-01'
  effective_date_basis: stated-effective-date
  source_url: https://www.hud.gov/sites/dfiles/OCHCO/documents/HsngML-25-11.pdf
  program: multifamily
  program_basis: 'no TO: line; the letter addresses the FHA Multifamily Housing Programs and never Single Family or Handbook 4000.1'
  effective_text: The designated Annual Base City High Cost Percentages and High Cost Areas are effective January 1, 2025, for FHA multifamily mortgage insurance Firm Commitment applications and for amendments which have not been initially endorsed.
  amends: Multifamily Accelerated Processing (MAP) Guide, HUD 4430.G REV-3 (the 2020 MAP Guide)
  supersedes:
    - 2024-01
  supersedes_basis: 'annual revision: ML 2025-11 sets the high cost percentages and MAP Guide thresholds for the year after ML 2024-01''s'
obligations:
  - id: hud-ml-2025-11-s02
    canonical_id: hud-ml-2025-11-s02
    section: FHA Multifamily Mortgagee Letter 2025-11 — Annual Revisions to Base City High-Cost Percentage and High-Cost Areas; Annual Indexing of MAP Guide’s Substantial Rehabilitation and Large Loan Risk Mitigation Thresholds — Purpose
    description: 'Maximum mortgage amounts were revised by the Consolidated Appropriations Act, 2008 (Public Law 110-161, approved December 26, 2007) (FY 2008 Appropriations Act). Section 221 of the General Provisions of Title II of Division K of the FY 2008 Appropriations Act revises the statutory exceptions to maximum mortgage amounts for the FHA Multifamily Housing Programs, listed in Section 221 of the FY 2008 Appropriations Act, '
    type: do
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    tags:
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      - hud-ml
      - fha
      - multifamily
      - full-text
      - ingested
    primary_source:
      tier: 1
      authority: FHA Multifamily Mortgagee Letter 2025-11 — Annual Revisions to Base City High-Cost Percentage and High-Cost Areas; Annual Indexing of MAP Guide’s Substantial Rehabilitation and Large Loan Risk Mitigation Thresholds
      source_class: fha-mortgagee-letter
      source_url: https://www.hud.gov/sites/dfiles/OCHCO/documents/HsngML-25-11.pdf
      snapshot_id: e566afd6bc1969c1
      fetched_at: '2026-10-14T01:07:11.536916+00:00'
      content_hash: sha256:e566afd6bc1969c1833899432d0089cb120cf7ae29ec696f494a2b33446ebebd
      paragraph_quote: 'Maximum mortgage amounts were revised by the Consolidated Appropriations Act, 2008 (Public Law 110-161, approved December 26, 2007) (FY 2008 Appropriations Act). Section 221 of the General Provisions of Title II of Division K of the FY 2008 Appropriations Act revises the statutory exceptions to maximum mortgage amounts for the FHA Multifamily Housing Programs, listed in Section 221 of the FY 2008 Appropriations Act, by: (1) substituting 170 percent for the 140 percent exception of any geographical area, and (2) substituting 215 percent for 170 percent as the maximum exception allowed for a specific project. Accordingly, the statutory revision allows the Secretary to grant exceptions to maximum mortgage limits for certain Multifamily Housing Programs by: (1) up to 170 percent, (equivalent to a 270 percent multiplier) in geographical areas where cost levels so require or (2) up to 215 percent in High Cost Areas, (equivalent to a 315 percent multiplier) where necessary on a project-by-project basis. The law does not determine which areas are to be considered “High Cost Areas.” Accordingly, the Office of Multifamily Production has developed a list of High Cost Percentages (HCP) and High Cost Areas for 2025. The threshold for determining a High Cost Area (Special Limit Areas excepted) is a calculated, uncapped HCP that is greater than either 1) the United States average HCP, or 2) 270 percent. For the geographic areas shown in Table 1, the maximum mortgage amount may be increased by its listed HCP. For the eligible High Cost Areas (Special Limit Areas excepted), the maximum mortgage amount may be increased by up to 215 percent, (equivalent to a 315 percent multiplier), where necessary on a project-by-project basis. If only one geographic area is named in a given state, that area’s HCP is to be used for all localities within the state. If multiple geographic areas are named in a given state, the applicable HCP is the listed area closest to the project’s location. The designated Annual Base City High Cost Percentages and High Cost Areas are effective January 1, 2025, for FHA multifamily mortgage insurance Firm Commitment applications and for amendments which have not been initially endorsed. Guam, the U.S. Virgin Islands, and the states of Alaska and Hawaii are Special Limit areas. The HCP for Special Limit Areas is 405 percent. The 2016 Multifamily Accelerated Processing (MAP) Guide established a base amount of $15,000 per unit to define substantial rehabilitation for FHA insured loan programs. Section 5.1.2.A.2.b of the 2020 MAP Guide requires that this base amount be annually adjusted for inflation based on the percentage change published by the Bureau of Labor Statistics of the Department of Labor or other inflation cost index. Accordingly, the 2025 base amount per dwelling unit to determine substantial rehabilitation for FHA insured loan programs is $19,948 and was calculated using the CPI-U cost index increase of 3.4 percent as applied to the previous year’s base amount.1 Mortgagee Letter 2023-14 established a base loan amount of $120 million to define the large loan risk mitigation threshold for applicable FHA insured loan programs. This Mortgagee Letter amended Section 3.10.1.C of the MAP Guide requiring HUD to annually review the threshold amount for an inflation adjustment, in $5 million increments, based on the percentage change published by the Bureau of Labor Statistics of the Department of Labor or other inflation cost index. Applying the CPI-U cost index increase of 3.4 percent to the previous year’s adjusted amount, the resulting value achieves the $5 million increment requirement, and thus the 2025 large loan threshold is increased to $130 million. 2 This threshold may be applied to FHA multifamily mortgage insurance applications submitted or amended on or after January 1, 2025, so long as the loan has not been initially endorsed.'
      drafter_attestation: Verbatim from FHA Multifamily Mortgagee Letter 2025-11 — Annual Revisions to Base City High-Cost Percentage and High-Cost Areas; Annual Indexing of MAP Guide’s Substantial Rehabilitation and Large Loan Risk Mitigation Thresholds; substring-verified against snapshot e566afd6bc1969c1 on 2026-10-14.
      verbatim_gate: line-subset+substring
      issued_date: '2025-04-14'
      effective_date: '2025-01-01'
      effective_date_basis: stated-effective-date
    effective_date: '2025-01-01'
  - id: hud-ml-2025-11-s03
    canonical_id: hud-ml-2025-11-s03
    section: FHA Multifamily Mortgagee Letter 2025-11 — Annual Revisions to Base City High-Cost Percentage and High-Cost Areas; Annual Indexing of MAP Guide’s Substantial Rehabilitation and Large Loan Risk Mitigation Thresholds — Table 1
    description: TABLE 1 FHA MULTIFAMILY STATUTORY MORTGAGE PROGRAMS BASE PERCENTAGES FOR HIGH COST AREAS – EFFECTIVE JANUARY 2025 WEST REGION High Cost Percentage High Cost Area (Up to 315% Waiver Eligible) San Francisco CA – West Regional Center 270% Yes Bakersfield CA 270% Yes Eureka CA 270% Yes Fresno CA 270% Yes Los Angeles CA 270% Yes Riverside CA 270% Yes Sacramento CA 270% Yes San Diego CA 270% Yes Anchorage AK 405% n/a – Spe
    type: do
    audit_question: ''
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    file_review: ''
    judgment: false
    feeds: []
    workflow_phase: ''
    owner_role: ''
    secondary_owner_role: ''
    cadence: ''
    consequence: ''
    tags:
      - regulator-direct
      - hud-ml
      - fha
      - multifamily
      - full-text
      - ingested
    primary_source:
      tier: 1
      authority: FHA Multifamily Mortgagee Letter 2025-11 — Annual Revisions to Base City High-Cost Percentage and High-Cost Areas; Annual Indexing of MAP Guide’s Substantial Rehabilitation and Large Loan Risk Mitigation Thresholds
      source_class: fha-mortgagee-letter
      source_url: https://www.hud.gov/sites/dfiles/OCHCO/documents/HsngML-25-11.pdf
      snapshot_id: e566afd6bc1969c1
      fetched_at: '2026-10-14T01:07:11.536916+00:00'
      content_hash: sha256:e566afd6bc1969c1833899432d0089cb120cf7ae29ec696f494a2b33446ebebd
      paragraph_quote: 'TABLE 1 FHA MULTIFAMILY STATUTORY MORTGAGE PROGRAMS BASE PERCENTAGES FOR HIGH COST AREAS – EFFECTIVE JANUARY 2025 WEST REGION High Cost Percentage High Cost Area (Up to 315% Waiver Eligible) San Francisco CA – West Regional Center 270% Yes Bakersfield CA 270% Yes Eureka CA 270% Yes Fresno CA 270% Yes Los Angeles CA 270% Yes Riverside CA 270% Yes Sacramento CA 270% Yes San Diego CA 270% Yes Anchorage AK 405% n/a – Special Limit Guam 405% n/a – Special Limit Phoenix AZ 270% Yes Denver CO (Satellite Office) 270% Yes Grand Junction CO 270% Yes Boise ID 270% Yes Honolulu HI 405% n/a – Special Limit Billings MT 270% Yes Great Falls MT 270% Yes Fargo ND 270% Yes Las Vegas NV 270% Yes Reno NV 270% Yes Medford OR 270% Yes Portland OR 270% Yes Rapid City SD 270% Yes Sioux Falls SD 270% Yes Salt Lake City UT 270% Yes Seattle WA 270% Yes Spokane WA 270% Yes Casper WY 270% Yes Cheyenne WY 270% Yes SOUTHWEST REGION High Cost Percentage High Cost Area (315% Waiver Eligible) Dallas / Ft. Worth TX – Southwest Regional Center 270% Yes Amarillo TX 270% Yes El Paso TX 270% Yes Houston TX 270% Yes San Antonio TX 270% Yes Little Rock AR 270% Yes Cedar Rapids IA 270% Yes Des Moines IA 270% Yes Wichita KS 270% Yes New Orleans, LA 270% Yes Shreveport LA 270% Yes Kansas City MO (Satellite Office) 270% Yes St. Louis MO 270% Yes Omaha NE 270% Yes Albuquerque NM 270% Yes Santa Fe NM 270% Yes Oklahoma City OK 270% Yes SOUTHEAST REGION High Cost Percentage High Cost Area (315% Waiver Eligible) Atlanta GA – Southeast Regional Center 270% Yes Savannah GA 270% Yes Birmingham AL 270% Yes Mobile AL 270% Yes Jacksonville FL (Satellite Office) 270% Yes Miami FL 270% Yes Tampa FL 270% Yes Louisville KY 270% Yes Jackson MS 270% Yes Charlotte NC 270% Yes Raleigh NC 270% Yes Charleston SC 270% Yes Columbia SC 270% Yes Memphis TN 270% Yes Nashville TN 270% Yes US Virgin Islands 405% n/a – Special Limit MIDWEST REGION High Cost Percentage High Cost Area (315% Waiver Eligible) Chicago IL – Midwest Regional Center 270% Yes Springfield IL 270% Yes Fort Wayne IN 270% Yes Indianapolis IN 270% Yes Detroit MI (Satellite Office) 270% Yes Minneapolis MN (Satellite Office) 270% Yes Duluth MN 270% Yes Cincinnati OH 270% Yes Cleveland OH 270% Yes Columbus OH 270% Yes Milwaukee WI 270% Yes NORTHEAST REGION High Cost Percentage High Cost Area (315% Waiver Eligible) New York NY – Northeast Regional Office 270% Yes Albany NY 270% Yes Buffalo NY 270% Yes Rochester NY 270% Yes Bridgeport CT 270% Yes Hartford CT 270% Yes Washington DC 270% Yes Dover DE 270% Yes Boston MA (Satellite Office) 270% Yes Springfield MA 270% Yes Bangor ME 270% Yes Portland ME 270% Yes Baltimore MD (Satellite Office) 270% Yes Manchester NH 270% Yes Atlantic City NJ 270% Yes Newark NJ 270% Yes Harrisburg PA 270% Yes Philadelphia PA 270% Yes Pittsburg PA 270% Yes Providence RI 270% Yes Norfolk VA 270% Yes Richmond VA 270% Yes Burlington VT 270% Yes Charleston WV 270% Yes Footnotes: 1. Special Limit Area.'
      drafter_attestation: Verbatim from FHA Multifamily Mortgagee Letter 2025-11 — Annual Revisions to Base City High-Cost Percentage and High-Cost Areas; Annual Indexing of MAP Guide’s Substantial Rehabilitation and Large Loan Risk Mitigation Thresholds; substring-verified against snapshot e566afd6bc1969c1 on 2026-10-14.
      verbatim_gate: line-subset+substring
      issued_date: '2025-04-14'
      effective_date: '2025-01-01'
      effective_date_basis: stated-effective-date
    effective_date: '2025-01-01'

Verbatim regulatory text (2)

Verbatim provisions from FHA Multifamily Mortgagee Letter 2025-11 — Annual Revisions to Base City High-Cost Percentage and High-Cost Areas; Annual Indexing of MAP Guide’s Substantial Rehabilitation and Large Loan Risk Mitigation Thresholds — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.

FHA Multifamily Mortgagee Letter 2025-11 — Annual Revisions to Base City High-Cost Percentage and High-Cost Areas; Annual Indexing of MAP Guide’s Substantial Rehabilitation and Large Loan Risk Mitigation Thresholds — Purpose

Effective 2025-01-01 · publisher's stamp for this provision

Maximum mortgage amounts were revised by the Consolidated Appropriations Act, 2008 (Public Law 110-161, approved December 26, 2007) (FY 2008 Appropriations Act). Section 221 of the General Provisions of Title II of Division K of the FY 2008 Appropriations Act revises the statutory exceptions to maximum mortgage amounts for the FHA Multifamily Housing Programs, listed in Section 221 of the FY 2008 Appropriations Act, by: (1) substituting 170 percent for the 140 percent exception of any geographical area, and (2) substituting 215 percent for 170 percent as the maximum exception allowed for a specific project. Accordingly, the statutory revision allows the Secretary to grant exceptions to maximum mortgage limits for certain Multifamily Housing Programs by: (1) up to 170 percent, (equivalent to a 270 percent multiplier) in geographical areas where cost levels so require or (2) up to 215 percent in High Cost Areas, (equivalent to a 315 percent multiplier) where necessary on a project-by-project basis. The law does not determine which areas are to be considered “High Cost Areas.” Accordingly, the Office of Multifamily Production has developed a list of High Cost Percentages (HCP) and High Cost Areas for 2025. The threshold for determining a High Cost Area (Special Limit Areas excepted) is a calculated, uncapped HCP that is greater than either 1) the United States average HCP, or 2) 270 percent. For the geographic areas shown in Table 1, the maximum mortgage amount may be increased by its listed HCP. For the eligible High Cost Areas (Special Limit Areas excepted), the maximum mortgage amount may be increased by up to 215 percent, (equivalent to a 315 percent multiplier), where necessary on a project-by-project basis. If only one geographic area is named in a given state, that area’s HCP is to be used for all localities within the state. If multiple geographic areas are named in a given state, the applicable HCP is the listed area closest to the project’s location. The designated Annual Base City High Cost Percentages and High Cost Areas are effective January 1, 2025, for FHA multifamily mortgage insurance Firm Commitment applications and for amendments which have not been initially endorsed. Guam, the U.S. Virgin Islands, and the states of Alaska and Hawaii are Special Limit areas. The HCP for Special Limit Areas is 405 percent. The 2016 Multifamily Accelerated Processing (MAP) Guide established a base amount of $15,000 per unit to define substantial rehabilitation for FHA insured loan programs. Section 5.1.2.A.2.b of the 2020 MAP Guide requires that this base amount be annually adjusted for inflation based on the percentage change published by the Bureau of Labor Statistics of the Department of Labor or other inflation cost index. Accordingly, the 2025 base amount per dwelling unit to determine substantial rehabilitation for FHA insured loan programs is $19,948 and was calculated using the CPI-U cost index increase of 3.4 percent as applied to the previous year’s base amount.1 Mortgagee Letter 2023-14 established a base loan amount of $120 million to define the large loan risk mitigation threshold for applicable FHA insured loan programs. This Mortgagee Letter amended Section 3.10.1.C of the MAP Guide requiring HUD to annually review the threshold amount for an inflation adjustment, in $5 million increments, based on the percentage change published by the Bureau of Labor Statistics of the Department of Labor or other inflation cost index. Applying the CPI-U cost index increase of 3.4 percent to the previous year’s adjusted amount, the resulting value achieves the $5 million increment requirement, and thus the 2025 large loan threshold is increased to $130 million. 2 This threshold may be applied to FHA multifamily mortgage insurance applications submitted or amended on or after January 1, 2025, so long as the loan has not been initially endorsed.

Source: FHA Multifamily Mortgagee Letter 2025-11 — Annual Revisions to Base City High-Cost Percentage and High-Cost Areas; Annual Indexing of MAP Guide’s Substantial Rehabilitation and Large Loan Risk Mitigation Thresholds · source URL · snapshot e566afd6bc1969c1

FHA Multifamily Mortgagee Letter 2025-11 — Annual Revisions to Base City High-Cost Percentage and High-Cost Areas; Annual Indexing of MAP Guide’s Substantial Rehabilitation and Large Loan Risk Mitigation Thresholds — Table 1

Effective 2025-01-01 · publisher's stamp for this provision

TABLE 1 FHA MULTIFAMILY STATUTORY MORTGAGE PROGRAMS BASE PERCENTAGES FOR HIGH COST AREAS – EFFECTIVE JANUARY 2025 WEST REGION High Cost Percentage High Cost Area (Up to 315% Waiver Eligible) San Francisco CA – West Regional Center 270% Yes Bakersfield CA 270% Yes Eureka CA 270% Yes Fresno CA 270% Yes Los Angeles CA 270% Yes Riverside CA 270% Yes Sacramento CA 270% Yes San Diego CA 270% Yes Anchorage AK 405% n/a – Special Limit Guam 405% n/a – Special Limit Phoenix AZ 270% Yes Denver CO (Satellite Office) 270% Yes Grand Junction CO 270% Yes Boise ID 270% Yes Honolulu HI 405% n/a – Special Limit Billings MT 270% Yes Great Falls MT 270% Yes Fargo ND 270% Yes Las Vegas NV 270% Yes Reno NV 270% Yes Medford OR 270% Yes Portland OR 270% Yes Rapid City SD 270% Yes Sioux Falls SD 270% Yes Salt Lake City UT 270% Yes Seattle WA 270% Yes Spokane WA 270% Yes Casper WY 270% Yes Cheyenne WY 270% Yes SOUTHWEST REGION High Cost Percentage High Cost Area (315% Waiver Eligible) Dallas / Ft. Worth TX – Southwest Regional Center 270% Yes Amarillo TX 270% Yes El Paso TX 270% Yes Houston TX 270% Yes San Antonio TX 270% Yes Little Rock AR 270% Yes Cedar Rapids IA 270% Yes Des Moines IA 270% Yes Wichita KS 270% Yes New Orleans, LA 270% Yes Shreveport LA 270% Yes Kansas City MO (Satellite Office) 270% Yes St. Louis MO 270% Yes Omaha NE 270% Yes Albuquerque NM 270% Yes Santa Fe NM 270% Yes Oklahoma City OK 270% Yes SOUTHEAST REGION High Cost Percentage High Cost Area (315% Waiver Eligible) Atlanta GA – Southeast Regional Center 270% Yes Savannah GA 270% Yes Birmingham AL 270% Yes Mobile AL 270% Yes Jacksonville FL (Satellite Office) 270% Yes Miami FL 270% Yes Tampa FL 270% Yes Louisville KY 270% Yes Jackson MS 270% Yes Charlotte NC 270% Yes Raleigh NC 270% Yes Charleston SC 270% Yes Columbia SC 270% Yes Memphis TN 270% Yes Nashville TN 270% Yes US Virgin Islands 405% n/a – Special Limit MIDWEST REGION High Cost Percentage High Cost Area (315% Waiver Eligible) Chicago IL – Midwest Regional Center 270% Yes Springfield IL 270% Yes Fort Wayne IN 270% Yes Indianapolis IN 270% Yes Detroit MI (Satellite Office) 270% Yes Minneapolis MN (Satellite Office) 270% Yes Duluth MN 270% Yes Cincinnati OH 270% Yes Cleveland OH 270% Yes Columbus OH 270% Yes Milwaukee WI 270% Yes NORTHEAST REGION High Cost Percentage High Cost Area (315% Waiver Eligible) New York NY – Northeast Regional Office 270% Yes Albany NY 270% Yes Buffalo NY 270% Yes Rochester NY 270% Yes Bridgeport CT 270% Yes Hartford CT 270% Yes Washington DC 270% Yes Dover DE 270% Yes Boston MA (Satellite Office) 270% Yes Springfield MA 270% Yes Bangor ME 270% Yes Portland ME 270% Yes Baltimore MD (Satellite Office) 270% Yes Manchester NH 270% Yes Atlantic City NJ 270% Yes Newark NJ 270% Yes Harrisburg PA 270% Yes Philadelphia PA 270% Yes Pittsburg PA 270% Yes Providence RI 270% Yes Norfolk VA 270% Yes Richmond VA 270% Yes Burlington VT 270% Yes Charleston WV 270% Yes Footnotes: 1. Special Limit Area.

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Source of record: https://claudeforcompliance.com/regs/hud-ml-2025-11/ · register hud-ml-2025-11 · verbatim, source-snapshotted regulator text from the Claude for Compliance corpus. To work from every register at once, download the corpus and follow the methodology.