Fasttrack Mortgage Insurance Processing Guidelines

FASTTRACK MORTGAGE INSURANCE PROCESSING GUIDELINES
Section 223(f) Program

A. Purpose: The purpose of this guide is to assist mortgagees and HUD staff implement FASTTRACK Mortgage Insurance Processing under Section 223(f) of the National Housing Act for the purchase or refinancing of multifamily rental properties.

B. Background: FASTTRACK was developed in consultation with the multifamily housing industry to support sponsors, owners and mortgagees in more effectively producing and maintaining affordable rental housing. In November, 1993, the Assistant Secretary of Housing-Federal Housing Commissioner delegated authority to waive certain directives to HUD Field Office Housing Directors and Multifamily Directors. HUD Field Offices have used that authority in conjunction with industry suggestions to streamline and expedite the processing of mortgage insurance applications within their respective jurisdictions. These revised procedures consolidate the "best practices" from those procedures. Also, the recent HUD reorganization has necessitated the development of a standardized national FASTTRACK process. These procedures are the interim process that will be used until a comprehensive new program delivery system is released. The new system is currently under development and will share many of the features of this interim process.

C. General Description: This guide modifies basic mortgage insurance processing procedures under Section 223(f). This is carried out through increased mortgagee responsibilities for technical processing and management of repair and other escrow agreements, which provide a quick approach to HUD issuing a firm commitment and endorsement of the mortgage. This process is intended for one stage processing for projects that can proceed quickly to firm commitment. This process has the following components:

1. Mortgagee provides full technical processing and underwriting recommendations in conformance with these guidelines and existing Section 223(f) program requirements.

2. Mortgagee manages the repair escrow and other escrows and reviews the mortgagor's supplemental cost certification.

3. HUD issues the firm commitment after an expedited due diligence processing and underwriting analysis; inspects completed critical and non-critical repairs; and approves the supplemental cost certification.

D. Program Requirements: Program requirements are set forth in regulations, handbooks, notices, and mortgagee letters. Unless stated otherwise in this guide, applications must be developed and processed in accordance with these program requirements. The handbooks and notices that apply to the Section 223(f) program are listed in Attachment A, List of Program Handbooks and Notices. Copies of handbooks, notices, and forms may be obtained by calling 1-800-767-7468, by FAX at 1-202-708-3151, or through the HUD web page at www.hud.gov.

E. Application and Inspection Fees: The application fee is $3 per $1000 of requested mortgage amount and is submitted with the firm commitment application. The fee is earned upon receipt of a application. The fee for inspection of completed repairs after closing is $30 per dwelling unit for projects involving repairs of $3000 or less per unit; or one percent of the repair costs if costs are greater than $3000 per unit. The inspection fee is paid at closing.

F. Mortgagee Functions: All FHA approved multifamily mortgagees may participate in this program. Mortgagees are responsible for full technical processing and underwriting recommendations in accordance with the procedures in this guide. HUD expects the mortgagee staff and fee personnel to be knowledgeable and experienced in processing and underwriting Section 223(f) program applications. As part of its processing, the mortgagee must perform all of the following:

1. Obtain and provide environmental data to assist HUD in completing its environmental assessment responsibility.

2. Obtain an appraisal and conduct a review appraisal of the property to determine its value.

3. Obtain and review a property inspection to determine the condition of the property, identify critical and non-critical repairs, assure that property improvements meet program requirements, establish the basis for the reserve for replacement, assess long-term marketability and minimize mortgage risk.

4. Estimate the cost of project repairs, improvements, initial deposit to the reserve for replacement, and make other supplemental cost estimates.

5. Evaluate the credit worthiness of the project participants; perform the financial analysis of the project; and estimate the maximum insurable mortgage and the cash requirements to close.

6. Evaluate the owner's business plan for the proposed project and the owner's past performance in residential and commercial real estate ventures. Determine if the owner's business plan and investment expectations are in alignment with the HUD regulatory agreement.

7. Make an underwriting recommendation to HUD based on program requirements and a full technical processing analysis to include HUD 92264 and 92264A forms prepared and signed by the mortgagee.

8. Manage repair and other escrows; and review mortgagor's supplemental cost certification.

G. Features of the FASTTRACK Product:

1. Environmental Processing: The mortgagee is responsible for completing an environmental report for the project. The report will be submitted in two stages. The initial report is to be submitted with the pre-application. It is to contain Attachment D, FASTTRACK Environmental Factors Checklist and other data if the answer to any of the questions in the checklist is "Yes". The mortgagee may contact the HUD office for guidance. If additional information is needed it will be discussed at the pre-application conference and in the letter to the mortgagee following the pre-application conference. The mortgagee will include the additional information in an environmental report to be submitted in the firm commitment application.

HUD will use the environmental reports to expedite its site review and environmental assessment.

2. Inspection and Cost Processing: The mortgagee must obtain an inspection report for the property. It must be prepared for the mortgagee by a qualified construction inspector (e.g., architect, engineer, contractor), who is knowledgeable of the geographical area where the project is located, and has current experience inspecting and costing multifamily properties of the type proposed. The inspection report is to be completed according to HUD standards and contain the information in Chapter 5 of HUD 4460.1 Rev-2. The report must be dated no more than 120 days prior to submittal of the firm commitment application. The report must be given to the appraiser to be used in the completion of the appraisal. This report must be updated when changes in the property have occurred since the effective date of the report.

HUD will not prepare an independent inspection report for the project, but will use the inspection report and conclusions submitted by the mortgagee to complete its review.

3. Valuation Processing: The mortgagee must obtain an independent appraisal of the property in accordance with Attachment E, FASTTRACK Appraisal Statement of Work. It must be prepared for the mortgagee by an Certified General Appraiser, licensed in the State in which the project is located, who is knowledgeable of the geographical area where the project is located, and has current experience appraising the type project proposed. The appraisal must satisfy USPAP and FIRREA guidelines with HUD Forms 92273 and 92274 attached. The appraisal must be dated no more than 120 days prior to submittal of the firm commitment application, or such shorter time as required by the HUD office based on specific market conditions. The mortgagee must also conduct a review appraisal of the independent appraisal. The appraisal and mortgagee reviews must be updated when significant changes in the market or property have occurred since the effective date of the appraisal.

HUD will not prepare an independent appraisal for the project, but will use the appraisals and conclusions submitted by the mortgagee to complete its review.

4. Mortgage Credit Processing: The mortgagee's processing must include an analysis of the credit-worthiness of the borrower, a financial analysis of the project, a estimate of the mortgage amount and a determination of funds necessary to close. Also, the mortgagee is to complete Attachment F, FASTTRACK Financing Plan. Cash available to close is to be identified by indicating specific bank accounts which will be used to complete the transaction accompanied by a verification of deposit for the accounts. The processing must be in accordance with HUD 4470.1 Rev-2 and Change 1, Mortgage Credit Analysis for Project Mortgage Insurance.

HUD will use the mortgagee's mortgage credit report and conclusions to complete its review.

5. Underwriting Summary: The underwriting summary describes the mortgagee's analysis and processing conclusions. It must include:

a. a discussion of the major conclusions and recommendations (e.g., location, market position, rents, expenses, management, ownership, cash requirements, mortgage amount, etc.);

b. a discussion of issues and concerns raised by HUD during the pre-application meeting and subsequent correspondence to the mortgage

c. a discussion of significant considerations, both positive and negative, which influenced the decision to recommend issuance of a firm commitment;

d. a discussion of any changes or adjustments made to the technical findings and reasons for those changes;

e. Recommended conditions to the firm commitment; and

f. Completed and signed HUD 92264 and 92264-A.

H. Training: Each HUD office will offer training to interested mortgagees on how the FASTTRACK process will work in its jurisdiction. Since participating mortgagees should be very knowledgeable about HUD processing and underwriting, this training will not provide complete, in depth instruction on HUD programs or processing procedures. Rather, it is intended to provide general guidance to mortgagees to smooth the transition from full HUD processing to a shared processing responsibility. This training will cover the following subjects:

1. A general overview of FASTTRACK processing;

2. Advice on selection of third-party professionals;

3. Overview of HUD underwriting standards (including any local standards related to affordable housing, design, neighborhood, and community issues);

4. Tips on preparing HUD 92264, 92264A, Underwriting Summary, and environmental forms;

5. Calculation of maximum mortgage amounts, cash closing requirements and analysis of owner and contractor financial capacity;

6. Problems to avoid in processing and underwriting for HUD-FHA; and

7. Managing repair escrows and cost certification reviews.

I. HUD Underwriting Review: The HUD office will perform a due diligence review of the mortgagee's firm commitment application. In cases where the mortgagee's processing and underwriting recommendations are thorough, reliable and comply with HUD program standards, and the project as presented represents an investment grade risk, the HUD office will use the lender's processing as the basis for the issuance of a firm commitment. The HUD office may modify the mortgagee's recommendations based on its review. The HUD office will not issue a firm commitment if its review finds that the application is incomplete, inconsistent with documentation or does not meet program requirements.

J. The Section 223(f) FASTTRACK Process:

1. The mortgagee must contact the HUD office to request a pre-application meeting. The mortgagee is encouraged to contact the HUD office on market related and other issues prior to requesting a pre-application meeting.

2. At least ten (10) days prior to the desired date of a pre-application meeting, the mortgagee must submit the exhibits in Attachment B, FASTTRACK Pre-application Exhibits (an original and three copies). After reviewing the pre-application, the HUD office will contact the mortgagee to confirm the pre-application meeting date. The HUD office may waive the pre-application meeting.

3. After the pre-application meeting, a letter summarizing the topics of discussion will be prepared and forwarded by the HUD office to the mortgagee. The HUD office may need information in addition to the items defined in this guide. The additional requirements will be discussed at the pre-application meeting and will be delineated in the letter to the mortgagee.

4. The mortgagee then submits a COMPLETE firm commitment application which contains the exhibits listed in Attachment C, FASTTRACK Application Exhibits. All handbooks, forms, and processing instructions cited in this guide are subject to revision. The mortgagee and fee personnel must be sure that all processing is conducted using current HUD program requirements.

5. The HUD office will send appropriate staff to the project site to complete the environmental review and confirm underwriting assumptions and conclusions. The HUD office reserves the right to modify the mortgagee underwriting as a result of any material findings that impact the overall underwriting decision.

6. The HUD processing team will present the underwriting findings and the firm commitment to the HUB director or his/her designee.

7. The mortgagee should allow a reasonable amount of time for HUD to complete its review of the application and to issue the firm commitment. Since the mortgagee is performing a number of processing activities normally performed by HUD, the HUD review period can be expected to be significantly shorter than for full HUD processing. The actual amount of time will be largely dependent upon the quality of the mortgagee's processing and underwriting analysis.

8. Since the mortgagee will be required to provide an independent appraisal and inspection report, the mortgagee may include a reasonable cost for these items in the firm commitment application on HUD 92013 and 92264 (line 60, renamed Mortgagor Processing Fees). Attach a breakdown of the fees. HUD considers the cost of the review appraisal and other processing functions to be underwriting costs and are therefore included in the mortgagee's fee.

9. Once a firm commitment has been issued, the mortgagee and mortgagor must proceed to initial closing within 60 days. Attachment G, FASTTRACK Closing Documents, provides a list of the documents that must be submitted for closing. The closing documents must be submitted to the HUD office 10 working days prior to the requested closing date. Closings will not be scheduled until a complete closing package has been submitted.

10. The HUD office has the discretion to use HUD staff, mortgagee certification, or HUD contract inspector to conduct repair inspections. Mortgagee certifications are anticipated to be used for the inspection of non-critical minor repairs.

11. As required repairs are completed and inspected, the HUD Representative Trip Report will authorize the mortgagee to release escrow funds. The mortgagee is responsible for ensuring that amounts released do not exceed the escrow amount allocated for the completed items. The funds for cost overruns can not be released until all repairs are completed and inspected.

12. To ensure that the final amount of insurance is supported by certified costs, the mortgagor must execute a certificate of actual cost when all repairs are complete. Projects insured under Section 223(f) are cost certified using the simplified form. See HUD 4470.2 REV-1.

a. The cost certification provided by the mortgagor need not be audited by an independent public accountant. The mortgagor must, however, certify that it is true and correct and sign the criminal code and false claims certification contained on the form.

b. The mortgagee shall review the cost certification to ensure that the insured mortgage amount is supported by actual costs. The HUD office retains responsibility for approving the cost certification and may reduce the mortgage based on its review.

Attachments

A - List of Program Handbooks and Notices
B - FASTTRACK Pre-application Exhibits
C - FASTTRACK Application Exhibits
D - FASTTRACK Environmental Factors Checklist
E - FASTTRACK Appraisal Statement of Work
F - FASTTRACK Financing Plan
G - FASTTRASK Closing Documents

Attachment A

LIST OF PROGRAM HANDBOOKS AND NOTICES Section 223(f) Program

Copies of handbooks, notices, and forms may be obtained by calling 1-800-767-7468, or by FAX at 1-202-708-3151, or visit the HUD web page at www.hud.gov.

HUD 1390.2, Environmental Assessment Guide.

HUD 1390.4, Guide to HUD Environmental Criteria & Standards.

HUD 2000.4, Consolidated Audit Guide for HUD Programs.

HUD 4060.1, Lender Approval Handbook

HUD 4065.1, Previous Participation Guide.

HUD 4350.1, Insured Project Servicing

HUD 4350.4, Insured Multifamily Mortgagee Servicing and Field Office Remote Monitoring

HUD 4381.5, Management Agents Documents and Fees

HUD 4410.1 Rev 2, Project Fiscal Procedures.

HUD 4381.2 Management Requirements in Processing Insured Multifamily Housing Projects

HUD 4425.1 Rev 2, Basic Underwriting.

HUD 4430.01 Rev 1, Initial Closing for Project Mortgages.

HUD 4440.1, Final Closing Commitment for Project Mortgage Insurance.

HUD 4460.1 Rev 2, Architectural Analysis and Inspections.

HUD 4465.1 CHG, Valuation Analysis for Project Mortgage Insurance.

HUD 4470.1 Rev 2, Mortgage Credit Analysis for Project Mortgage Insurance.

HUD 4560.01 Rev-1, Mortgage Insurance for Multifamily Moderate Income Housing.

HUD 8025.1 Rev 1, Implementation of Affirmative Fair Housing Marketing Requirements

Notice H 92-31, Revised Processing Instructions for the Section 223(f) Full Insurance Program

Notice H 93-23, Need to Reduce Underwriting Risk

Notice H 93-93, Multifamily Underwriting Forms Catalog

Notice H 95-4, Subsidy Layering Reviews Implementing Instructions.

Notice H 95-50, Housing Development Processing Instructions for the HOME Program.

Notice H 95-58, Field Office Review of Market Need.

Notice H 95-66, Requirements for Accepting Limited Liability Companies.

Notice H 96-63, Nonprofit Services and Fees.

Notice H 97-7, Submission of Environmental Site Assessment Transaction Screen Process & Phase I Environmental Site Assessment Process

Notice H 97-53, Mortgage Insurance in Military Impacted Areas

Attachment B

FASTTRACK PRE-APPLICATION EXHIBITS Section 223(f) Programs

A pre-application contains the exhibits listed below. Please submit an original and three (3) copies, each one tabbed with the exhibits in the order given here.

a. Cover letter. This should provide a summary description of the proposed project and its market position. Please discuss any unusual features of the proposed deal, which might become potential problems to be dealt with during the underwriting process.

b. Form HUD-92013, Application for Multifamily Housing Project, completed as fully as possible, such that the mortgage amount requested and the cash required to close can be determined using HUD's maximum mortgage criteria.

c. Sketch plan of the site, typical unit plans and typical elevations.

d. Location map(s) to show the specific location of the project and its relation to other multifamily projects, community services and employment.

e. Photographs of the property and immediate area.

f. FASTTRACK Environmental Factors Checklist.

g. Project description of the condition of the property, a list of repairs made in last two years, a list of repairs and replacements to be made to the property and their estimated cost, and an estimated amount for the initial deposit to the Reserve for Replacement Account.

h. Current Rent Roll. (Date of the rent roll must be any day of the month of the pre-application meeting.)

i. Most recent financial statements for the property and for the owner entity. If the financial statements are more than three months old, year to date financial statements are also required.

j. If State or local grant/loan funds or tax credits are anticipated or being provided, provide a copy of the funding commitment, a description of the intended uses of the funds, and terms and conditions on the use of such funds.

h. If a non-profit sponsor is proposed, provide documentation to support preliminary determination of eligibility.

Attachment C

FASTTRACK APPLICATION EXHIBITS Section 223(f) Program

The application for mortgage insurance is to include the following exhibits. Please submit an original and three (3) copies, and tab each exhibit in the order shown.

1. _____ Cover letter with and Application Fee.

2a. _____ HUD 92013, Application for Multifamily Housing Project.

2b. _____ Underwriting Summary with completed Form 92264 and HUD 92264A.

3. _____ Statement for Loan Guarantees and Loan Insurance, (The "Byrd Amendment"), or SF-LLL and SF-LLL-A, Disclosure of Lobbying Activities, per HUD Notice H 90-27, if applicant has engaged in lobbying activities.

4. _____ Tax Credit Certification, per HUD Notice H 95-4.

5. _____ Form HUD 2013-Supp, Supplement to Application for a Multifamily Housing Project, dated 10/92 on the mortgagor entity, each principal of the mortgagor entity, and (if applicable) the general contractor.

6. _____ Form HUD 2530, Previous Participation Certification, dated 9/94 on all principal participants as identified on page one of Instructions for Completing the Previous Participation Certificate and is as follows:

a. ______ Mortgagor Entity

b. ______ Principals of the mortgagor entity including all general partners, limited partners with at least 25 percent interest, stockholders with at least 10 percent interest, and corporate officers

c. ______ General Contractor (if applicable)

d. ______ Management Agent

e. ______ Housing Consultant (for nonprofit sponsors only)

f. ______ Architects and/or attorneys with other than an arms-length fee for professional services (if applicable)

g. ______ Affiliates which have the ability to control any principals (if applicable)

7. ______ The proposed documents (e.g., partnership agreement or articles of incorporation) creating the single-asset, single-purpose mortgagor.

8. ______ Form HUD 92010, Equal Employment Opportunity Certification.

9. ______ "Fair Housing Marketing Certification", per HUD Handbook 4565.1.

10. ______ An Inspection Report.

11. ______ A report from the appropriate official(s) (i.e., Fire Marshal, Local Building Inspectors, etc.) identifying any building code violation of record.

12. ______ A certified report of testing of Lead-based paint in projects built in 1978 or before. Defective paint surfaces found during application processing may require abatement prior to loan closing.

13. ______ An "as built" survey map and Form HUD 92457, Surveyor's Report, completed by a registered professional surveyor or engineer (if available).

14. ______ An Appraisal and Review Appraisal.

15. ______ An updated rent roll, as of any day in the month in which the application is submitted, which includes the following information:

a. ______ Apartment number and type (e.g., Apt. 204, 1BR) along with vacancy status.

b. ______ Tenant name. "Vacant" is entered where there is no tenant.

c. ______ Published rental rate and actual rate the tenant is paying. If the apartment is occupied on a non-paying basis (e.g., resident manager) zero is entered.

d. ______ Term of lease (e.g., monthly, yearly)

e. ______ Date of first occupancy.

f. ______ Indicate "U" if apartment is unfurnished or "F" if furnished. Give explanation for those apartments which are in non-paying status.

g. ______ The owner's signature and certification on the rent roll attesting that it is correct.

h. ______ The mortgagee's signature and certification on the rent roll attesting that he/she has verified the rents being charged for each unit type and that the stated rental and occupancy dates are correct.

16. ______ An Apartment Unit Vacancy and Tenant Turnover Report prepared by the mortgagee.

17. ______ All proposed leases or any other documents reflecting arrangements that would impact the project (e.g., commercial space, easements).

18. ______ Fasttrack Environmental Factors Checklist.

19. _____ Phase I Environmental Site Assessment which indicates that it complies with ASTM Standards.

20. ______ Evidence of Real Estate Tax Abatement or Exemption (if applicable).

21. ______ Form HUD 92004-F, Request for Verification of Deposit, for each bank reference included on Form HUD 92013-Supp.

22. ______ A listing of outstanding delinquent Federal debt for the mortgagor entity, each principal of the mortgagor entity, and (if applicable) the general contractor.

23. ______ A loan commitment letter from the mortgagee which states the following: permanent loan interest rate, financing fees, permanent placement fees, FNMA or GNMA fees, discounts, bond fees, and other applicable fees. If using public grant funds, a statement from the source as to the use and conditions tied to the funds.

24. ______ Mortgage Credit Report, and FASTTRACK Financing Plan.

25. ______ Current business and/or individual credit reports, within thirty (30) days of the application date, on the following:

a. ______ Mortgagor Entity

b. ______ Principals of the mortgagor including all general partners, limited partners with at least 25 percent interest, stockholders with at least 10 percent interest, and corporate officers

26. ______ A statement as to whether an identity of interest exists, or will exist between the mortgagor entity and the seller of existing property.

NOTE: If an identity of interest, regardless of how slight, exists between the seller(s) of the existing property and the mortgagor entity, consider the application as a refinance transaction.

27. ______ Detailed operating statements (following the category breakdown of the Form HUD 92274 as closely as possible) for the project for the last three (3) years prior to submission of the application to HUD must be provided. If more than three (3) months have expired since the closing date of the latest year's statements, a year-to-date project operating statement must also be submitted (if not included in the appraisal).

If three (3) years of project financial statements are not available due to circumstances beyond the borrower's control, an explanation as to why the financial statements are unavailable is required (if not included in the appraisal).

28. ______ Current (within three (3) months of the application date) Financial Statements (Balance Sheet, Statement of Income and Expenses, Cash Flow Statement, and supporting documentation) on the mortgagor entity.

The financial statements must be signed and dated by an authorized official of the company, have the Mortgagor's Certification of Truth and Accuracy, and the U.S. Criminal Code Section 1010 statements as defined in HUD Handbook 4470.1, REV-2, Chg 1, page 3-2.

29. ______ A statement reflecting the balance of all existing escrow accounts, including the replacement reserve fund, if any.

30. ______ Verification/statement from the lien holder/mortgagor reflecting the existing indebtedness using the format in HUD Handbook 4565.1, Exhibit V.

31. ______ A certification by the mortgagor listing all outstanding obligations of the project, whether secured or unsecured.

32. ______ The purchase agreement and buyer's closing statement, if applicable.

33. ______ A title search report which discloses all liens, secured transactions, former owners, and dates of the transfer of ownership.

34. ______ Management Report and Management Exhibits, per HUD Handbook 4381.1.

a. ______ Form HUD 9838a, Management Certification for Owner-Managed Projects

OR

b. ______ Form HUD 9839b, Management Certification for Projects with Identity of Interest or Independent Management Agent, OR

c. ______ Form HUD 9839c, Management Certification for Elderly Projects Managed by Project Administrators,

d. ______ Form HUD 9832, Management Entity Profile.

Attachment D

FASTTRACK ENVIRONMENTAL FACTORS CHECKLIST Section 223(f) Program

PURPOSE

HUD is required to comply with a variety of Federal laws and regulations designed to protect the environment and residents before making a commitment to insure a project. These authorities may require actions above and beyond any local or state regulations.

The following checklist is designed to allow the mortgagee to gather and present at the pre-application conference all the information necessary for HUD to complete its environmental review. In most cases, the results of the review should be conveyed in the letter to the mortgagee which will follow the pre-application conference.

The mortgagee is responsible for the accuracy of all information submitted. Where further information is required, the HUD office must be consulted to determine the extent of the information needed.

Historic Preservation.

The National Historic Preservation Act of 1966, as amended, requires HUD to consult with the State Historic Preservation Officer (SHPO) under certain circumstances. The answers to the following questions will allow HUD staff to determine if consultation is required.

1. Is the project's original date of construction 50 or more years ago?..............................................................Yes___ No___

2. Is the project listed as a historic or cultural resource in a local inventory?......................................................Yes___ No___

3. Is the project in or adjacent to a historic or conservation district?..........................................................Yes___ No___

If the answer to any of the above questions is Yes, contact the HUD office for instructions on what further information or actions will be required.

Floodplain Management

HUD's regulation 24 CFR Part 55 requires consideration of the impacts of projects located within Special Flood Hazard Areas (100 year floodplains) designated on Federal Emergency Management Agency (FEMA) maps. Location in a SFHA does not result in automatic rejection of a project, but triggers a review process that can result in rejection, required mitigation, or acceptance with flood insurance required. The answers to the following questions will allow HUD staff to determine if further information is required.

4. Is any part of the property located in the 100 year floodplain according to the FEMA map?.....................................................Yes___ No___

5. Is an incidental part of the property located in the 100 year floodplain, but no buildings?.........................................................Yes___ No___

6. Is any project building located in the 100 year floodplain?
..................................................................................Yes___ No___

FEMA FIRM map # effective date ______________ __________

Attach a copy of the map panel (if printed) with the site sketched on it.

If the answer to any of the above questions is Yes, contact the local office for instructions on what further information or actions will be required.

Coastal Barrier Resources

Federal assistance to projects located in designated coastal barriers is prohibited.

7. Is the project located within a coastal barrier designated on a current FEMA flood map or Department of Interior coastal barrier resource map?..........................................................................Yes___ No___

Airport Hazards

HUD policy is generally not to assist projects located within runway clear zones at civil airports or accident potential zones at military airfields.

8. Is the project within 3,000 feet from the end of a runway at a civil airport?......................................................................Yes___ No___

9. Is the project within 2 ½ miles from the end of a runway at a military airfield?......................................................................Yes___ No___

Environmental Contamination

HUD policy is generally not to assist projects where there is evidence of contamination on site or in the vicinity. All applications must present appropriate due diligence documents to demonstrate that the project is not subject to contamination concerns. A Phase I Environmental Site Assessment that conforms to ASTM standard E 1527-94 and concludes "This assessment has revealed no evidence of recognized environmental conditions in connection with the property." is the usual means of addressing this issue. Further testing may be required to assure suspicious uses have not contaminated the property. If appropriate due diligence documents are not available at the time of the pre-application conference, or there is known environmental contamination on site, proceeding with an application must be discussed with the local office. Environmental reviews cannot be completed prior to receipt of appropriate due diligence documents.

10. Is evidence that the site is not impacted by environmental contamination provided?.............................................Yes___ No___

Other Factors

HUD will consider, and the mortgagee should consider, other factors in determining the acceptability of a project for assistance. These factors would result in rejection of a project only in extreme cases. These factors include, but are not limited to, noise exposure, proximity to aboveground explosive or flammable facilities, site improvements which may impact wetlands, proximity to endangered species habitat, incompatible adjacent uses, proximity of pipelines and high voltage transmission lines. Contact the HUD office if these may be concerns.

Attachment E

FASTTRACK FINANCING PLAN Section 223(f) Program

See applicable S.O.W.

Attachment F

FASTTRACK FINANCING PLAN Section 223(f) Program

Project No.: _____________ Project Name: ________________________________

1.   Mortgage Amount                                                                    $ __________________
2.   Good Faith Deposit with Mortgagee                                         $ __________________
3.   Other Funds - ____________________________                 $ __________________
4.   Other Funds - ____________________________                 $ __________________

5.   Total Funds Available..(Sum of items 1 thru 4)                      $ __________________

6.   PayOff of Existing Debt or Purchase Balance    $ __________________
7.   Repair Estimate                                                $ __________________
8.   Repair Escrow  (50% line 7)                             $ __________________
9.   Other Fee - _____Survey_____                    $ __________________
10. Other Fee - _______________                    $ __________________
11. FHA MIP (1%)                                                $ __________________
12. FHA Examination Fee (.3%)                             $ __________________
13. FHA Inspection Fee (1% line 7)                        $ __________________
14. Mortgagee Financing Fee (2% Max)                 $ __________________
15. Mortgagee Placement Fee (1.5% Max)             $ __________________
16. Title & Recording Expense                                $ __________________
17. Mortgagor Organizational Expense                    $ __________________
18. Mortgagor Legal Expense                                 $ __________________
19. Mortgagor Cost Certification Fee                      $ __________________
20. Other Cost - ______________                        $ __________________
21. Other Cost - ______________                        $ __________________

22. Total Cost of Transaction (Sum of items 6 thru 21)               $ __________________

23. Funds Needed by Mortgagor (Item 5 less item 22)               $ __________________

Identify specific source(s) of cash required to close the transaction. Provide the mortgagor name; account name, number, and amount; and attach a verification of deposit for each account.
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________

Prepared By: _______________________________ Date: ________________________

Attachment G

FASTTRACK FINANCING PLAN Section 223(f) Program

Please submit three copies of all closing documents. These will be Originals (Or), Executed (E), Certified (C), or Conformed (Cn), as indicated below.

1. Assignment of Commitment, if any.................................................................E, 2Cn

2. Regulatory Agreement (2466).......................................................................E, 2Cn

3. Organizational Documents.............................................................................E, 2Cn

a.  Partnership Agreement/Corporate Articles and by-laws.
b.  All existing and proposed amendments to organizational documents.
c.  Closing certificate-certification from corporate secretary/general partner
    that corporation/partnership has submitted all organizational documents.
d.  Long form certificate of good standing dated within thirty (30) days of closing.
e.  Incumbency certificate.
f.  Authority resolution from board of directors (certified by secretary
    of corporation)/all partners authorizing refinancing transaction.

4.  Lease, if mortgage is on leasehold..................................................................E, 2Cn

4a. Land disposition contract and deed, if any
     (required only for projects in urban
       renewal areas)...............................................................................................E, 2C

5. Title Policy (duplicate original for HUD)............................................................3Cn

a. Insured closing letter from title company authorizing title agent
b. Recorded collected at closing before endorsement of the note

6. Evidence of Zoning Compliance:

a.  Letter must be addressed to HUD and dated within thirty days
    of closing;.................................................................................................3Cn
b.  Certificate of Occupancy.........................................................................3Cn

7.  Surveyor's Plat..................................................................................................3Cn

8.  Surveyor's Certificate (2457):  Must be dated within 30 days of closing........Or, 2Cn

9.  Note (FHA Form for State)..............................................................................3Cn

10.  Mortgage/Deed of Trust (FHA Form for State)...............................................3Cn

11.  Escrow Deposit Agreement for Incomplete On-Site........................................3Cn
       Improvements with Schedule "A" (2456).

12.  Mortgagor's Oath (2478).........................................................................Or, 2Cn

13.  Mortgagor's Attorney's Opinion................................................................Or, 2Cn

14.  Security Agreement and UCC-1
       Financing Statements......................................................................................3Cn

15.  Request for Endorsement of Credit Instrument..........................................Or, 2Cn

15.a.  Certificate of Mortgagor and Mortgagee (2455)....................................Or, 2Cn

16.  Agreement and Certification (3305-A) for 207...............................................3Cn

17.  Evidence of fulfillment of Firm Commitment Special Conditions.......................3Cn

18.  Other:

a.  Must have copy of certificate evidencing insurance coverage that is
     required by the firm commitment. Also must have, when available, a
     certified copy of the policy/ies................................................................3Cn

b.  BYRD AMENDMENT --   "Statement for Loan Guarantees
     and Loan Insurance"........................................................................Or, 2Cn

19.  Assurance of compliance (Title VI & EEOC)...........................................Or, 2Cn

20.  Utility letters..................................................................................................3Cn

21.  Assignment from original mortgagee of Reserve..........................................E, 2Cn
       for Replacement Fund, Working Capital Escrow
       and other funds held for mortgagor