19.4.13.2 Zoning and Building Code Compliance

A. Zoning Compliance. Borrower must provide evidence that the applicable zoning laws and regulations permit the operation of multifamily housing of the type covered under the applicable section of the NHA. This evidence may take the form of a zoning endorsement to the title policy (e.g., ALTA Series 3 Endorsement, as appropriate) or a supplemental letter from appropriate local authorities stating that the Project is zoned for the applicable type of multifamily housing at the time of occupancy and that there are no known zoning violations associated with the Project. See also opinion 6 of the Opinion of Borrower’s Counsel (form HUD-91725M).

B. Building Code Compliance. If required by the Firm Commitment or applicable closing checklist, Borrower must provide evidence of compliance with local building code requirements. HUD will accept a supplemental letter, deemed acceptable by the RC Director in consultation with the HUD Closing Attorney, from the building code enforcement office that there are no known building code violations and/or a certification from the Borrower or Project Architect that no changes have occurred since the issuance of certificates of occupancy.

C. Samples. Sample building code and zoning code assurance letters are included at Section 19.12 and 19.13, respectively. See also 24 CFR 200.72 and Part II of form HUD-91070M, Consolidated Certifications - Borrower.

D. Certificate of Occupancy. Borrower must provide a certificate of occupancy when required by the Firm Commitment, applicable closing checklist, or if a certificate of occupancy is issued for the Project and is not currently included in HUD’s Washington Docket.