Fill and Sign the G W Publisher Order Form Fillable

EFFICIENT, RELIABLE, & COST EFFECTIVE FINANCE WITH MAP and control. The result is a process that creates What Is MAP? and control. The result is a process that Multifamily Accelerated Processing (MAP) is creates more timely and consistent end a process that enables HUD-approved lend- results. ers to prepare, process, and submit loan apHow Can MAP Help You? plications for Federal Housing Administration (FHA) multifamily mortgage insurance. There are 8 good reasons why you should MAP replaces previous “fast-track” procedures with a single national process for all choose an FHA-insured loan. They are: multifamily offices of HUD. 1. Expedited decisions on loan applications– 60 days for Section 223(f) and 90 days for Sections 221(d)(3) & (4), 2. PreWhat is FHA Mortgage Insurance? dictability– lenders underwrite and HUD reviews, 3. Consistency– national stanFHA insures mortgages for new construction, substantial rehabilitation, purchase, or dards for application submissions, refinance of apartment buildings and health 4. Long-term financing– up to 40 years, 5. Federal guarantee- results in a AAA care facilities. The insurance covers the lender if a borrower defaults on the insured bond rating on financing, which provides loan. Insured mortgages have a fixed inter- credit enhancement for tax exempt bonds and Low Income Housing Tax Credits est rate and are self-amortizing. (LIHTCs), 6. Eligible for securitization Why Use MAP? by GNMA, 7. FHA-insured loans are MAP has standardized HUD’s underwriting non-recourse, and 8. FHA loans are assumable. process by applying national standards, which provide greater lender responsibility Eligible Multifamily HUD Programs ∗ Multifamily housing under Sections 221(d)(3) and 221(d)(4), and Section 220 programs for new construction or substantial rehabilitation of multifamily housing. ∗ Section 231 & 232 programs for health care & the elderly. ∗ ∗ Section 236 refinancing existing projects with interest reduction payments. Section 223(f) prorams for the purchase or refinancing of existing multifamily housing or health care facilities. Special points of interest: *How Can MAP Help You? *Eligible Multifamily Programs. *Quick MAP Facts *Primary MAP Programs *Processing Steps *Web Site Addresses *Key Philadelphia Hub Staff QUICK MAP FACTS * MAP is a response to a need to modernize and streamline the FHA mortgage insurance program. * MAP was created in response to lenders who value FHA mortgage insurance and wanted to see its expansion in the marketplace. * The goal of MAP is to establish HUD as the #1 multifamily finance source. ∗ Μ Α P strikes a balance between expedited processing and acceptable risks. * MAP efficiently utilizes HUD staff resources by balancing workload among the Program Centers within each of the 18 Hubs. * MAP recognizes that employees who specialize in a specific program, perform better than those who must work several program areas. * The MAP Guide was designed with Field, Headquarters, and lender input. * MAP establishes specific norms and timeframes for work to be accomplished. * MAP provides consistency of reviews, but flexibility in the administration of FHA program underwriting. * MAP accommodates Traditional Processing (TAP) by establishing teams within each Program Center to process non-MAP work, like Section 202/811, Section 223(a)(7), Section 241, Section 207 Mobile Home Parks, etc. PRIMARY MAP PROGRAMS Section 221(d)(3) & 221(d)(4)- New Construction and Substantial Rehabilitation for Rental Housing * * Projects must be at least 3 years’ old and remain rental housing for at least 5 years * Fixed interest rate (market) * Non-recourse & Assumable * 5 or more units Fixed interest rate (market) * Section 223(f)- Refinance Non-recourse & Assumable * 5 or more units * No cap on the number of units or the loan amount * Statutory limits vary by location Section 232 & 232/223(f)- Nursing Homes, Intermediate Care Facilities, Assisted Living, and Board and Care * Fixed interest rate (market) * Non-recourse & Assumable * No statutory limits * Construction financing * No cap on the number of units or the loan amount * Davis-Bacon rates for new construction and sub. rehab. * Statutory limits vary by location * Licensed/certified by state/ local agency * Nursing homes and intermediate care facilities with 20+ beds * * Assisted living facilities with 5+ beds 40-yr. term (35 for 232/223f) * LTV 90% (85% for 232/223f) * DSC 90% (85% for 232/223f) * Construction financing * Davis-Bacon wage rates * 40-year term * LTV (loan-to-value) 90% (up to 100% for nonprofits) * No Davis-Bacon rates DSC (debt service constant) 90% (up to 95% for nonprofits) * Equity take-outs possible * 35-year term or 75% of remaining economic life * * LTV 85% * DSC 85% PROCESSING STEPS Step 2- Firm Commitment Step 1- Initial Project Evaluation 1. MAP Lender submits Firm Application (including Form 2264 and 2264A) from sponsor and performs complete underwriting of the application. This includes the architectural, cost, and appraisal reviews. 2. Each HUD technician reviews the lender’ s reports, the assigned sections of the HUD Form 2264 and 2264A, the underwriting, the summary, etc. HUD does not reprocess the case. 3. After the Team Leader is satisfied that the reviews have been completed and the loan has been properly underwritten, he recommends to the Hub Director or the Program Center Director that the commitment to insure be issued. 1. Lender’s development team is approved (i.e., Appraiser, Underwriter, Market Analyst, Cost Estimator, Architectural Analyst, and Construction Analyst). 2. Lender submits the Pre-Application or Firm Application, as applicable for the type of mortgage insurance 3. HUD Appraiser and EMAS Economist perform desk review and market analysis. 4. EMAS review provided to Team Leader and Appraiser. 5. HUD Appraiser makes final recommendation to Team mary Business Address Leader regarding market demand for the project. A qualified appraiser or an independent market analyst may prepare the market study. 6. MAP design team recommends applications for new construction/sub. rehab. under Section 221(d)(3)(4) or Section 220. The Pre-Application evaluation consists of a review of the appraisal, market study, site analysis (including Phase I environmental), schematic drawings, previous participation, determination of rents, income, expenses, land/building value, replacement cost, and estimated mortgage amount. 7. HUD review would include a site visit of the project and comparables to verify appraiser’s conclusions. 8. HUD would complete the environmental assessment. 9. HUD reviews hard and soft costs and operating expenses based on comparable data. 4. The MAP Lender’s servicer must also review the loan application to insure that it is satisfactory and suitable for HUD insurance. Responsibilities Retained By HUD * * * * Environmental (HUD Form 4128). Previous Participation Approval. Affirmative Fair Housing Marketing Plan. Change orders, waivers, and time extensions. Web Site Addresses and Key Hub Contacts To Find a MAP-Approved Lender: www.hud.gov/utilities/intercept.cfm?/offices/hsg/mfh/ map/aprvlend.pdf Frequently Asked MAP Questions: http://www.hud.gov/offices/hsg/mfh/map/mapfaq.cfm MAP Statistics and Program Guidelines: http://www.hud.gov/offices/hsg/mfh/map/maphome. cfm Other Multifamily Housing Programs: http://www.hud.gov/offices/hsg/mfh/progdesc/ progdesc.cfm Key Philadelphia Hub Contacts: Encarnacion Loukatos, Director Philadelphia Multifamily Hub Telephone: (215) 656-0609, Ext. 3305 Rodell Burton, Director Project Management Telephone: (215) 861-7550 U. S. Dept. of HUD 100 Penn Square East The Wanamaker Building Philadelphia, PA 19107-3380 Jane Miller, Director Pittsburgh Program Center Telephone: (412) 644-6884 U. S. Dept. of HUD 339 Sixth Avenue Pittsburgh, PA 15222-2515 Walter Kreher, Director Newark Program Center Telephone: (973) 776-7266 U. S. Dept. of HUD One Newark Center– 13th Floor Newark, NJ 07102-5260 Lloyd Wilkerson, Director Charleston Program Center Telephone: (304) 347-7000, Ext. 110 U. S. Dept. of HUD 405 Capitol Street- Suite 708 Charleston, WV 25301-1795