The Federal Housing Administration’s (FHA) Office of Multifamily Housing Programs now has an updated and restructured Multifamily Housing Accelerated Processing (MAP) Guide — used by MAP-approved lenders when originating, underwriting, closing, and servicing mortgages for FHA insurance on multifamily properties.
The MAP Guide describes how lenders qualify for participation and how lenders apply for mortgage insurance including the qualifications and roles, both financial and professional, of all participants. The updated MAP Guide provides consistency in policy presentation and includes enhanced navigation and restructuring that aligns with lenders’ operational processes. The new guide improves upon the 2016 version.
In addition to reorganization and streamlining of the 2016 MAP Guide, the new version refines the energy efficiency and Green Mortgage Insurance Premium (Green MIP) program. Obtaining certification (with minimum scoring requirements) allows a reduction in mortgage insurance premiums to 25 basis points; however under the updated guide, Energy Star for existing buildings (Certification based on score only) has been all but eliminated as certification for Section 223(f) and 223(a7) programs. This will increase project costs to obtain Green Building Certifications and possibly change the cost effectiveness decisions for project refinancers seeking the Green MIP benefit.
The new guide also calls for increased radon testing — requiring 100% of all ground-floor units, and 10% of upper units, to be tested. This is an increase from the 2016 guide which only required 25% of units on the ground-floor to be tested. Asbestos requirements also saw one change — that buildings constructed before 1989 are required to be assessed (previously the requirement was buildings constructed pre-1978).
To read more about the MAP Guide changes, visit the HUD MAP Guide site here.
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