5.2.3.3 — HUD Multifamily Accelerated Processing (MAP)

A. The agreement between the Architect and the owner for services must be in the form of the American Institute of Architects (AIA) Contract Documents. The owner must submit the executed contract at the time of the Firm Commitment application.

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For new construction and substantial rehabilitation projects, the agreement must be the AIA Document B108 Standard Form of Agreement between Owner and Architect for Housing Services and must include the HUD Amendment to AIA Document B108 (form HUD-92408M).
- In general, the document should not be altered except for the deletion of the binding arbitration and mediation provisions. The only allowable dispute resolution is litigation in a court of competent jurisdiction. Any modifications that delete or reduce the basic design and construction administration services of the Project Architect are prohibited. Further, there must be no changes that reduce, delegate, or leave a gap in the basic responsibilities of the parties involved.

In uncommon circumstances where it becomes necessary to describe special approved arrangements, the modifications must be noted by striking out any inapplicable language and inserting additional provisions in Article 12. Any proposed modifications will require additional review in consultation with the Office of General Counsel of HUD prior to approval.
There may be separate agreements for design and for supervisory services.
If there is one agreement for both design and supervisory services, a specific dollar amount must be indicated for each service.
Where the Project Architect’s basic fee exceeds that which may be paid from mortgage proceeds or where the Owner-Architect Agreement provides for reimbursable expenses (note that reimbursable expenses may not be paid from mortgage proceeds or any excess contingency), the person/entity responsible for such extra fees must be identified in the HUD Amendment.
- HUD shall not be incorporated into any specific provision of the Agreement, and the inclusion of the HUD Amendment in Article 12 (enumeration of Special Terms and Conditions) is sufficient to incorporate HUD requirements. No modification of the HUD Amendment is permitted.

In Section 223(f) transactions, the required professional design services are typically of limited scope. Accordingly, the Owner-Architect Agreement shall be the AIA Document B104, Standard Abbreviated Form of Agreement Between Owner and Architect. AIA B108 is allowable when the scope is extensive.
- The agreement must accurately describe the specific services to be provided and include all services that are necessary to the project, including adequate construction administration duties.

The Architect’s fee must be a fixed sum for the services provided. No other method of stating compensation is acceptable. Separate fee amounts for design and construction services must be stated. When the Architect has no identity of interest with the Sponsor or mortgagor, the design and supervision fees are mortgageable costs and should be included in form HUD- 92264-A for the loan amount calculation.
The AIA B104 form may not be altered in general, except for the deletion of the binding arbitration and mediation provisions. There is no standard HUD amendment prescribed for the AIA B104.

The Project Architect may be a principal or an employee of the Borrower, or of an affiliate of the Borrower, provided that the requirements for professional qualifications, licensing or registration, and professional liability insurance are met and that the construction documents produced are not diminished by comparison with what would otherwise be required in the AIA Contract.