Checklist
HUD 223(f) Loan Application Checklist Our comprehensive application checklist for HUD 223(f) loans.
HUD 223(f) Checklist
While HUD 223(f) loans are a highly effective source of low-cost multifamily financing, the application process can be somewhat complex. Fortunately, HUD has put together a comprehensive checklist with all the documentation that investors and developers to apply. We’ve reproduced it on this page in an easy-to-read, easily-searchable format. However, the original checklist can be found here, on the HUD website.
The HUD 223(f) loan checklist contains five major sections, underwriting, management agent, legal, property document, and misc. requirements, operations, additional funding sources, mortgagor, and principal of mortgagor, each of which specifies the required documentation needed for that category.
Section 1: Underwriting
1-1.
A. Check – FHA Application Fee (0.3% Mortgage Amount/$3.00 per $1000.00)
B. Transmittal Letter
C. Completed Firm Application Checklist
1-2.
A. Lender’s Underwriting Narrative
B. Organization Chart
C. Resumes for individuals submitting third party reports
D. Description of condition of property, list of repairs and improvements made in the last two years and their estimated cost, if required
E. FHA Lender Docs Report
F. FHA Summary Report
1-3. HUD Underwriting Forms (signed and dated by the Lender)
A. HUD-92013 (Optional)
B. HUD-92264-HUD Multifamily Summary Appraisal Report
1. Operating Deficit Calculation
2. Listing of Mortgagor’s Other Fees
C. HUD-92264-T, Rent Estimates for Low/Moderate Income Units
D. HUD-92264-A, Supplement to Project Analysis
E. HUD-92438, Underwriting Summary Report
1-4. Firm Commitment
A. Special Conditions, if applicable
B. Exhibit A, Legal Description
C. Exhibit B, List of Required Repairs
1-5. HUD-92329, Property Insurance Schedule
1-6. Property Insurance Requirements – HUD-92447
1-7. Location Map
1-8. Copies of any correspondence from concept meeting including all guidance provided by HUD on this project before the submittal
1-9. Waivers
A. Requests for waivers, HUD-2 form
B. Supporting documentation
Section 2: Third party reports
2-1. Appraisal Report
A. HUD 92264
B. HUD-92264-A
C. HUD-92273
D. HUD-92274
2-2. Market Study
2-3. Environmental
A. Phase I Environmental Site Assessment (ESA)
B. Environmental Report (See Section 9.5 of the MAP Guide)
C. Phase II ESA (if applicable)
D. Remediation Plan (if applicable)
1. LSTF approval.
E. Lead Based Paint (if built before 1978)
1. Test Report
2. Certification, if LBP was previously abated
3. Operations and Maintenance Plan
F. Asbestos (if built before 1978)
1. Comprehensive Asbestos Survey
2. Operations and Maintenance Plan
G. Floodplain Management (if located in a 100 year flood plain)
1. Evidence of community participation in NFIP
2. Emergency evacuation and relocation plan, early warning system
3. Elevation Certificates /Survey noting location of lowest floor, ingress and egress, and life support facilities in relation to the Base Flood Elevation
4. Evidence that current and/or future tenants will be informed of the flood hazard
5. Proof of NFIP flood insurance
6. Information and activities to support the 5-step review process
H. State Historic Preservation Office letter/requirements
I. Radon Report
J. Other - Specify
2-4. Project Capital Needs Assessment (PCNA)
A. PCNA Report & Lenders review of PCNA Report
B. Replacement Reserves Analysis
C. Critical Repairs
D. Non-Critical Repairs
E. Schedule of completion and inspection of repairs
F. Any Specialty Reports
G. Plans and Specifications for repairs, if required
section 3: management Agent
3-1. Organizational Chart
3-2. HUD Management Forms
A. Resume of Management agent
B. HUD-9832, Management Entity Profile
C. HUD- 9839, A, B or C Certifications
D. Management Plans and Sample Lease
E. Management Agreement
F. Procedures for resolving tenant complaints
G. Staffing schedule charged against project budget (including job titles and salaries)
H. Management agent training and compliance procedures
I. HUD-935.2A Affirmative Fair Housing Marketing Plan
3.3. Schedule of Projects Owned, Operated or Managed, level of experience
3.4. APPS Certification/2530 (Principals of the management company)
Section 4: Legal, Property documents, and Misc. REquirements
4.1,
A. Refinance
1. Certification of Outstanding Obligations
2. Pay-off Statement for each obligation
3. Replacement Reserve Balance confirmation
4. HUD Prepayment Authorization Letter
5. Copy of all outstanding notes
B. Purchase
1. Purchase and Sale Agreement and/or Amendments or Extension Agreements
2. Last Arm’s Length Certification
3. Intergovernmental Review, SF-424
C. Copy of Certificate of Occupancy or Final Inspection Report
4.2. Title
A. Preliminary Title Report- A title search report, which discloses all liens and secured transactions (A Report of Conveyance, Mortgage and Judgments)
B. Pro Forma – 2006 ALTA Title Insurance Policy
1. ALTA Form Environmental Endorsement
2. ALTA Form Comprehensive Endorsement
3. ALTA Form Endorsement deleting Arbitration Clause
4. ALTA Location of Improvements Endorsement
C. Easements and Maintenance Agreements
1. Existing
2. Proposed
D. Survey “as built” and HUD Form-2457, Surveyor’s Report
E. Exception Documents
4.3. Evidence of compliance
A. Zoning
B. Building Codes
C. Verification of Zoning and Code Variances
D. Report from appropriate officials, identifying any code violation(s) of record
4.4. Evidence of utilities and municipal services (copies of monthly bills)
A. Electricity
B. Natural Gas or Oil
C. Telephone
D. Cable Television
E. Water and Sewer Service
F. Garbage Collection
G. Storm Sewer
4.5. Relocation plan during repairs, if required
4.6. Commercial leases (total square footage and percentage of total income used for commercial)
4.7. Land Lease 4.8 Real Estate Tax Abatement/Exemption
A. Evidence of abatement or exemption
B. Form FHA-1708, Agreement for Payment of Real Property Taxes
Section 5: Operations
5.1. Historical Occupancy Rates (most current 3 yrs., by quarter)
5.2. Operating budget (12-months, including census mix and occupancy data)
A. Stabilized Operating budget (12 months)
B. Initial Lease-Up budget (monthly, initial occupancy to stabilized occupancy).
5.3. Historical Comparison of Operations
5.4. Description and summary of Underwriter’s lease audit/Current certified rent roll
Section 6: Additional Funding Sources
6.1. Grants and/or Loan
A. Commitment letter (specifying amount, intended use, conditions)
6.2. Bond Financing
A. Itemized costs of issuance, discounts and financing fees to be paid out of pocket by mortgagor and explanation regarding the necessity of each cost
6.3. Tax Credits
A. Letter of commitment from tax credit syndicator or investor (specifying equity amount and pay-in schedule)
B. Reservation, executed copy
C. Source and Use Statement
D. HUD-2880, Applicant/Recipient Disclosure/Update Report
E. Bridge Loan agreements
F. Subsidy Layering Review
G. Final Partnership and/or Operating Agreement
section 7: Mortgagor
7.1. Organizational Chart
7.2. Organizational Documents (if applicable, if ownership entity has been formed at time of Firm Commitment)
A. Corporate
1. Articles of Incorporation
2. Bylaws
3. Authorizing Resolutions
B. Partnership
1. Partnership Agreement
2. Certificate of Partnership
3. Authorizing Resolutions
C. Limited Liability Company
1. Articles of Organization
2. Operating Agreement
3. Authorizing Resolutions
7.3. Nonprofit Mortgagor
A. HUD-3433, Eligibility as a Nonprofit (portions relevant for refinance or acquisition)
B. Narrative explanation of motivations for project
7.4. APPS Certification
A. If new partners are proposed, a Form HUD-2530 to be submitted for each new principal
7.5. Mortgagor’s Resume
7.6. Credit Reports are required for each new general partner, limited partner more than 25% interest, stockholder more than 10% interest, included in mortgagor entity. Substantial Rehab, FHA Insured Projects, changes in ownership subject to Handbook 4350.1; Insured Project Servicing Handbook transfer of physical assets (TPA).
7.7. Financial Statements – HUD-92417 [2417] for individuals, Year-to-Date
A. Balance Sheet
1. Aging of Accounts Receivable
2. Aging of Notes Receivable
3. Schedule of Pledged Assets
4. Schedule of Marketable Securities5. Schedule of Accounts Payable
6. Schedule of Notes and Mortgages Payable
7. Schedule of Legal Proceedings
B. Income and Expense Statement
C. REO schedule and maturing debt
7.8. Financial Statements – FY 20XX
A. Balance Sheet
1. Aging of Accounts Receivable
2. Aging of Notes Receivable
3. Schedule of Pledged Assets
4. Schedule of Marketable Securities
5. Schedule of Accounts Payable
6. Schedule of Notes and Mortgages Payable
7. Schedule of Legal Proceedings
B. Income and Expense Statement
7.9. Financial Statements – FY 20XX
A. Balance Sheet
1. Aging of Accounts Receivable
2. Aging of Notes Receivable
3. Schedule of Pledged Assets
4. Schedule of Marketable Securities
5. Schedule of Accounts Payable
6. Schedule of Notes and Mortgages Payable
7. Schedule of Legal Proceedings
B. Income and Expense Statement
7.10. Financial Statements – FY 20XX
A. Balance Sheet
1. Aging of Accounts Receivable
2. Aging of Notes Receivable
3. Schedule of Pledged Assets
4. Schedule of Marketable Securities
5. Schedule of Accounts Payable
6. Schedule of Notes and Mortgages Payable
7. Schedule of Legal Proceedings
B. Income and Expense Statement
Section 8: Principal Of mortgagor
8.1. Organizational Chart
8.2. Organizational Documents
A. Corporate
1. Articles of Incorporation
2. Bylaws
3. Authorizing Resolutions
B. Partnership
1. Partnership Agreement
2. Certificate of Partnership
3. Authorizing Resolutions
C. Limited Liability Company
1. Articles of Organization
2. Operating Agreement
3. Authorizing Resolutions
8.3. Resume(s)
8.4. APPS Certification: For Sub-Rehab, if new partners are proposed, a Form HUD-2530 to be submitted for each new principal.
8.5. Credit Reports are required are required for each new general partner, limited partner more than 25% interest, stockholder more than 10% interest, included in mortgagor entity. Substantial Rehab, FHA Insured Projects, changes in ownership subject to Handbook. 4350.
1. Insured Project Servicing Handbook transfer of physical assets (TPA).
A. Principal
B. Management Agent (if there is an Identity of Interest)
8.6. Financial Statements (3yrs.) HUD-92417 for individuals, Year-to-Date, Income and Expense Statement, Balance Sheet, REO schedule and maturing debt information
8.7. Supplement to Application for a Multifamily Housing Project
EEO Certificate
Assurance of Compliance (Title VI Certificate)
Byrd Amendment Certificate
LIHTC Certificate
Borrower Oath
Financial Requirements for Closing HUD-2238