HUD MAP/LEAN Program

 

We have been appraising HUD insured properties for the Phoenix HUD Office since 1988.

 Multifamily Housing HUD Map Program

The Multifamily Accelerated Processing (MAP) Guide, originally published May 17, 2000, was revised March 15, 2002. The MAP Guide is approved for use by MAP-approved Lenders and by HUD Multifamily Offices. The following are some of the more common sections that fall under the HUD MAP program.

 

HUD SECTIONS LIST

  •  Section 207/223(f) – insures mortgage loans to facilitate the purchase or refinancing of existing multifamily rental housing.
  • Section 221(d)(3) & 221(d)(4) – insures mortgage loans to facilitate the new construction or substantial rehabilitation of multifamily rental or cooperative housing for moderate-income families, elderly, and the handicapped. Single Room Occupancy (SRO) projects may also be insured under this section.
  • Section 220 – insures loans for multifamily housing projects in urban renewal areas, code enforcement areas, and other areas where local governments have undertaken designated revitalization activities.
  • Section 231 – insures mortgage loans to facilitate the construction and substantial rehabilitation of multifamily rental housing for elderly persons (62 or older) and/or persons with disabilities.
  • Section 232 is an FHA-Insured loan product that covers housing for the frail elderly – those in need of supportive services. Nursing homes, assisted living facilities, and board and care are all examples of this type of housing (a project may include more than one type).
  • Section 232 may be used to finance the purchase, refinance, new construction, or substantial rehabilitation of a project. A combination of these uses is acceptable – e.g. refinance of a nursing home coupled with new construction of an assisted living facility.

Lean Processing of Section 232 Projects

HUD developed its Lean process for Section 232 applications in 2008. Previously, loans were processed under Multifamily Accelerated Processing (MAP) or Traditional Application Processing (TAP) by the local HUD Field Office. It should be noted that non-Section 232 projects will continue to be processed under MAP or TAP.

Applications for mortgage insurance are assembled and underwritten by FHA-Approved Lenders before submittal to HUD for processing of the Firm Commitment. HUD’s new Lean process employs standardized work product and processes to obtain a consistent, timely result. The following are some of the changes implemented with the Lean process:

  • HUD has developed standardized checklists, statements of work for third party work, certifications, and templates for the lenders to use in their assembly of the application package. HUD has also developed standardized punchlists for HUD staff to use in their underwriting of submitted applications.
  • HUD begins its legal review immediately when the Firm Application is submitted – to cut down the time between Firm Commitment issuance and closing.
  • HUD has removed portions of the application process/requirements for submittal that were duplicative or not necessary (e.g. no need to submit closing related documents that are submitted with the Firm Application twice, removal of forms that are not needed, development of consolidated certifications, etc).
  • HUD has revised the third party appraisal requirements so that the appraisal is a market appraisal – no requirement to use HUD forms and no proprietary earnings carve out.

​For more information, contact us.