5.1.5 Eligible Construction by Program

A. Sections 220, 221, and 231: New construction and substantial rehabilitation are permitted. Class of Work does not apply to these programs.

B. Section 241(a): New Construction, Substantial Rehabilitation, Repairs, and all Levels of Alteration activities are permitted.

C. Section 223(f): Repairs and Level 1, Level 2 and Level 3 Alterations are permitted, provided that the Aggregate Cost of all such repairs and alterations does not exceed the Aggregate Cost Limit for substantial rehabilitation described in Section 5.1.2.

1. The Lender must ensure that the cost of repairs and alterations in refinance or acquisition transactions does not exceed the program eligibility limit notwithstanding any unforeseen circumstance, change in cost, or estimating error;

2. Additions (defined here as any expansion of a building footprint with conditioned space) are not permitted to dwelling spaces and residential buildings. Adding a patio or a balcony is considered a Level 2 Alteration, given that they are not conditioned spaces;

MAP Guide, March 2021 Go to beginning of Chapter 5

Bookmarked Version Go to Acronym and Abbreviation List, Glossary, Index

Chapter 5 Page 5-4

To return to this page after clicking a link, press ALT + Back Arrow

Chapter 5 Architectural and Construction Analysis 5.2 Consultant Due Diligence Responsibilities

Go to Table of Contents

3. Additions to accessory buildings or additions of minor accessory structures (e.g., carports, storage sheds, swimming pools) may be deemed Level 2 or 3 Alterations, subject to the approval of the Director of the Regional Center/Satellite Office;

4. Construction of a new accessory building (e.g., community building, gym) is permitted as a Level 3 Alteration. New accessory buildings may not exceed a gross floor area of 5,000 square feet.

D. Section 223(a)(7): The intent of the 223(a)(7) program is to provide a simple, quick refinance option for existing insured properties to improve cash flow by lowering the interest rate or extending the amortization period, reducing the risk of default and improving overall financial performance. Therefore, all proposed work for 223(a)(7) must be limited to the following:

1. Construction activities must not exceed the definition of “routine maintenance” per CPD Notice 201602;

2. Activities must not exceed the Class of Work level of Repairs;

3. The total cost of repairs and routine maintenance must not exceed $1,500 per unit, excluding the cost to remedy accessibility deficiencies;

4. Any accessibility related repairs must not exceed the Class of Work level of Repairs;

5. See Chapter 9, Section 9.1.3.C.1 for environmental review requirements.