17.5.1 Architectural and Cost Processing

• A. Follow the current instructions for Section 223(f).

• B. A summary of these procedures is outlined below.

1. Architectural Analysis . Lenders will submit and HUD will review deliverables as specified under the present guidance for Section 223(f) to the Regional Center or Satellite Office.

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2. Cost Processing . The HUD Cost Analyst will review lender exhibits as required in Chapter 5 and will recommend either acceptance or rejection of the Cost portion of the Firm submission.

3. CNA . The CNA E-Tool is required to be completed for all cooperatives insured under Section 223(f). The primary purpose of the CNA for a Cooperative project is to assess the Capital Needs of the project with the exception of any elements owned by the individual shareholders. So, it is very important to ascertain exactly what items are the sole responsibilities of the Cooperative. In some cases, appliances, kitchen cabinets, etc. may be owned by the Cooperative. The interior of individual units is still inspected in the same manner as with apartments. Any hazards or defects that would affect safety and marketability of the Cooperative should be noted even if it is an individual shareholder’s responsibility. These items must be corrected at the shareholder’s expense prior to endorsement. Mortgage proceeds must be used only for repairs of property owned by the Cooperative.