MULTIFAMILY ACCELERATED PROCESSING (MAP) Guide

1 MULTIFAMILY ACCELERATED . PROCESSING (MAP) Guide Revised January 29, 2016. Office of the Assistant Secretary for housing . FHA Commissioner Public reporting burden for this collection of information is estimated to average hours per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. The information is being collected for consideration of the endorsement for insurance by the Secretary or in consideration of the consent of the Secretary to the transfer of the mortgaged property or the sale and conveyance of the mortgaged property by the Secretary, and in order to comply with the requirements of the National housing Act. The information will be used by HUD to ensure that viable projects are developed.

2 This agency may not collect this information, and you are not required to complete this form, unless it displays a valid OMB control number. Privacy Act Notice: The United States Department of housing and Urban Development, Federal housing Administration, is authorized to solicit the information requested in the form by virtue of Title 12, United States Code, Section 1701 seq., and regulations promulgated thereunder at Title 12 Code of Federal Regulation. While no assurance of confidentiality is pledged to respondents, HUD generally discloses this data only in response to a Freedom of Information Act request. OMB Number: 2502-0541, Expiration Date: March 31, 2017. 1. MAP Guide Chapter Index Chapter Index MAP Guide CHAPTER INDEX .. MAP Guide CHAPTER AND SECTION INDEX .. CHAPTER 1 CHAPTER 2 LENDER AND UNDERWRITER QUALIFICATIONS.

3 CHAPTER 3 CHAPTER 4 APPLICATION CHAPTER 5 ARCHITECTURAL AND CONSTRUCTION ANALYSIS .. CHAPTER 6 FORMERLY COST .. CHAPTER 7 VALUATION ANALYSIS & MARKET STUDY GUIDANCE .. CHAPTER 8 MORTGAGE CREDIT .. CHAPTER 9 ENVIRONMENTAL REVIEW AND REQUIREMENTS .. CHAPTER 10 MANAGEMENT ANALYSIS .. CHAPTER 11 LENDER UNDERWRITING, HUD REVIEW AND CLOSING MATTERS .. CHAPTER 12 CONSTRUCTION PERIOD .. CHAPTER 13 COST CERTIFICATION .. CHAPTER 14 LOW INCOME housing TAX CREDIT (LIHTC) AND OTHER TAX CREDIT. PROGRAM GUIDANCE .. CHAPTER 15 QUALITY ASSURANCE ENFORCEMENT ACTIONS .. CHAPTER 16 MASTER LEASE STRUCTURING TO FACILITATE THE USE OF HISTORIC OR NEW. MARKET TAX CREDITS .. 2. CHAPTER 17 REFINANCING COOPERATIVE housing PROJECTS UNDER SECTION 207. PURSUANT TO SECTION 223(F) .. CHAPTER 18 SECTION 223(a)(7) . 3.

4 MAP Guide Chapter and Section Index Chapter and Section Index CHAPTER 1 MAP and the Guide .. Purposes of MAP .. Brief Summary of MAP .. Relation of MAP to Handbooks, Notices and Regulations .. Workload Management .. CHAPTER 2 LENDER AND UNDERWRITER QUALIFICATIONS .. Introduction .. Lender Qualifications .. Standards Required for Qualification .. Loan Consultants/Loan Brokerage .. MAP Lender Underwriting and Construction Loan Administration Electronic Capability and Internet Identity of Interest .. MAP Lender Application Package .. Limitation on Requirements .. Monitoring by MULTIFAMILY Asset Counterparty Oversight Division .. MAP Underwriter Approval Standards .. Map Lender Underwriter Trainee Approval Requirements .. MAP Underwriter Transfers .. 4. CHAPTER 3 General Program Requirements.

5 New Construction/Substantial Rehabilitation Program Requirements .. Section 221(d)(4) Mortgage Insurance for Rental and Cooperative housing -New Construction and Substantial Rehabilitation .. Section 220 Mortgage Insurance for Rental housing for Urban Renewal and Concentrated Development Areas-New Construction andSubstantial Rehabilitation .. Section 231 Mortgage Insurance for Rental housing for Elderly Persons - New Construction and Substantial Rehabilitation .. Section 241(a) Mortgage Insurance for Supplemental Loans for MULTIFAMILY Projects .. Section 207/223(f)Mortgage Insurance for Purchase or Refinancing of Existing MULTIFAMILY Rental housing .. Section 223(a)(7) Refinancing of Existing Insured Mortgages .. Property Insurance Requirements .. Large Loan Risk Mitigation Policies.

6 CHAPTER 4 APPLICATION PROCESSING .. Stages of Application .. Lender PROCESSING .. HUD PROCESSING .. CHAPTER 5 ARCHITECTURAL AND CONSTRUCTION ANALYSIS .. Classification of Work and Eligible Construction Activities .. Qualifications, Responsibilities, and Approval of Due Diligence Consultants .. Required Design Services and Documentation by Construction Activity and Program .. Architectural Standards and Other Criteria .. Construction Contracts .. Streamlined PROCESSING Instructions For Projects Requiring Professional Design Services .. New Construction, Standard PROCESSING -Concept Meeting through Firm Commitment Firm Commitment through Initial Endorsement- New Construction .. 5. Substantial Rehabilitation, Standard PROCESSING Concept Meeting through Initial Endorsement .. PROCESSING for Refinance or Acquisition, Section 223(f) and 223(a)(7) and 241(a) for Repairs and Alterations.

7 Cost Estimating for Lenders .. Cost Package for Firm Commitment .. HUD Procedures .. CHAPTER 6 FORMERLY COST .. CHAPTER 7 VALUATION ANALYSIS & MARKET STUDY GUIDANCE .. Introduction .. Selection of Appraisers and Market Analysts .. Third Party Appraiser and Market Analyst Qualifications .. HUD Workload Sharing Reviews of Appraisal and Market Study Reports .. Content and Format of the Market Study .. Appraisal Estimating Project Income .. Operating Expense Estimates and Underwritten Net Operating Income (NOI) .. Site Analysis .. Pre-Application Stage for Sections 220, 221(d) and 231 .. Firm Commitment PROCESSING for Sections 220, 221(d) and 231 (New Construction) .. Firm Commitment PROCESSING for Section 223(f).. Substantial Rehabilitation PROCESSING for Sections 220, 221(d)(4) and 231.

8 Calculating Operating Deficits .. Leaseholds/Ground Leases .. Tax Abatement Procedures .. Project Based Section 8 and LIHTC PROCESSING .. Appraisal Review Policy and Requirements .. 6. CHAPTER 8 MORTGAGE CREDIT .. Introduction .. Borrower Types Single Asset Borrower Entity .. Reviewing Principals and Other Parties in Control .. Investigating Credit and Character .. Evaluating Financial Capacity: Analysis of Financial Statements .. Prior Approval of Principals/Borrowers with FHA Insured Balances Greater than $250 Million or 25 or More Commercial Real Estate Assets .. Secondary Financing .. Required Application PROCESSING Exhibits and Lender and HUD Responsibilities .. Term of Mortgage and Commencement of Amortization .. Sections 220, 221(d), 231, 241(a) Firm Commitment PROCESSING : Determining Mortgage Amounts, Cash Requirements and Related Items.

9 Sections 223)(a)(7)and 223(f) Firm Commitment PROCESSING : Determining Mortgage Amounts, Cash Requirements and Related Matters .. Firm Commitment PROCESSING with Grants and Insurance Upon Completion .. Determining the Estimated Cash Requirements for Completing the Project .. Bond Financed Projects .. CHAPTER 9 ENVIRONMENTAL REVIEW AND REQUIREMENTS .. Introduction .. Procedures .. Contamination Analysis .. HUD Staff Responsibilities in Reviewing Cases Requiring Remediation .. Environmental CHAPTER 10 MANAGEMENT ANALYSIS .. Introduction .. Exhibits Required for Firm Commitment .. 7. Lender Review of Management Documents .. HUD Asset Management Review .. Review of Previous Participation .. Bonding Requirements for Agents .. Management Agreement Requirements .. Approval of Proposed Management Agent.

10 Affirmative Fair housing Marketing .. Management Agent Responsibility for Escrow Administration .. CHAPTER 11 LENDER UNDERWRITING, HUD REVIEW AND CLOSING MATTERS .. General .. Lender Underwriting .. HUD Regional Center or Satellite Office Underwriting Review .. Program Closing Provisions .. Loan Fees .. Title Matters .. Borrower Entity's Organizational Documents .. Note .. CHAPTER 12 CONSTRUCTION PERIOD .. Start of Construction Sections 221(d)(4), 220 and 241(a) .. Pre-Construction Conference .. HUD Construction Monitoring .. Architect's Duties in Administering Construction Contract .. Architect's Adequacy .. Completion Inspections .. Insurance of Advances and Related Matters .. Construction Change Orders General HUD Duties .. 8. Change Orders Inspection Instructions .. Change Orders HUD Architectural and Cost Instructions.