Once considered the last option for financing multifamily property, HUD’s MAP program is an appealing alternative to developers, owners, and brokers in today’s lending environment. The program, Section 207/223(f), insures mortgage loans to facilitate the purchase or refinancing of existing multifamily rental housing. These projects may have been financed originally with traditional or FHA insured mortgages, which have recently provided limited liquidity. However, with the recent (July 27, 2009) grant waiver of the Three-Year Rule for Section 223(f) applications, HUD has given borrowers more financing latitude to secure long-term loans of recently constructed or substantially rehabilitated, self-sustaining properties.
All MAP projects (purchase, refinance, new construction or substantial rehabilitation) require a by HUD, is also required as part of the environmental assessment. Partner Engineering and Science (Partner), understands the need for a strong screening process and has extensive experience in performing HUD Phase I ESAs for various clients including cities, lenders, private equity clients, developers and brokers. In addition to understanding the NEPA process, Partner understands the importance of informing our clients of potential issues that could delay or even break a deal. As the leader in Due Diligence, Partner consistently provides HUD staff with comprehensive reports that meet all compliance findings described in HUD -4218. This creates a smoother screening process and allows the lender to focus on other deals.
Given the current state of the economy and the Obama administration’s commitment to revitalize government backed loans, HUD Phase Is may become a more accessible option.
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