13.13 — HUD Multifamily Accelerated Processing (MAP)

A. When a mortgage increase is requested of the Regional Center Director, a more detailed review is required. The HUD Underwriter will:

Carefully review forms HUD-92330 and HUD-92330-A if required for mathematical accuracy and compliance with prescribed procedures.
Ensure that the submission contains required schedules and bills, which have not been submitted with previous draw requests, to support the certified amounts for interest, taxes, property insurance, HUD-FHA mortgage loan insurance premium (MIP), title and recording, financing fees, legal, organizational and audit fees, offsite costs, and other fees.
Require clarification or breakdown of all, or any part of, the cost figures presented by the Borrower or General Contractor, if applicable.
Scrutinize any existence of an identity of interest subcontractor, material supplier, or equipment lessor relationship.
Review the notes and schedules attached to the accountant’s opinion. Pay special attention to any liabilities included for repayment on the balance sheet that were not disclosed during the firm processing stage or before initial endorsement. These liabilities are not eligible for inclusion in the cost certification.

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Chapter 13 Cost Certification 13.14 Review of Borrower’s Cost Certification

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Recommend that the Regional Center Director request an audit of the Borrower’s and/or contractor’s books by the Regional Inspector General for Audit before issuing form HUD-92580, Maximum Insurable Mortgage, when differences of opinion arise from other than:

Honest differences of opinion clearly identifiable as such.

Other justifiable causes.

If considerable time has passed between initial occupancy and the cut-off date, some items properly allocable to renting and operating the project may be charged against construction cost.
- It may not be possible or practical to make precise allocation of such items as gas and electricity, clean-up costs, etc., between construction and operation periods.
- Insist on reasonable allocations and eliminate duplicate claims for the expenses under both categories.
Advise cost staff of any construction costs included in “Miscellaneous” and “Other” categories of form HUD-92330.
Check items and amounts in the Borrower’s cost certification without auditing the Borrower’s books and records. An audit may be needed later. (Refer to Section 13.27.)
Record the results of the review (including NOI) on form HUD-92331A, Cost Certification Review Worksheet.