5.6.1 Eligibility for Streamlined Processing

A. Streamlined processing means that less than 100% complete plans and specifications (construction documents) may be submitted with the application for Firm Commitment.

1. Proposed final project drawings and specifications must be submitted for HUD’s review and comment/approval at least thirty calendar days prior to initial endorsement.

12 Streamlined processing of architectural design, specification, construction, and cost estimation exhibits serves two purposes. The first is to expand the use of HUD mortgage insurance programs for projects with Low Income Housing Tax Credits (LIHTC). The second is to expedite applications for Borrower development teams with clearly demonstrated capacity and experience with HUD-insured construction projects.

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Chapter 5 Architectural and Construction Analysis 5.6 Streamlined Processing

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2. Any HUD comments on the proposed final drawings and specifications must be resolved and permitready drawings and specifications[13] must be delivered not less than ten calendar days prior to initial endorsement.

B. All LIHTC project applications are eligible for streamlined processing of design and construction documents.

C. Other applicants requesting streamlined processing should describe and discuss their qualifications with the Multifamily (MF) Regional Center/Satellite Office for approval.

1. HUD will discuss and determine eligibility for streamline processing at the concept meeting or preapplication stage.

2. To be considered qualified, the Borrower/Sponsor, the Project Architect, the General Contractor and due diligence providers must each have successful prior HUD project experience comparable in scope and scale to the scope of work proposed in the application.

3. Applicants for Section 223(f) without LIHTCs and with repairs and alterations requiring a Project Architect may request a concept meeting if they consider deferred submission of final plans and specifications necessary.

• D. Factors Limiting Streamline Processing for Non-LIHTC Applications.

1. Lenders and MF Regional Center/Satellite Offices should determine that the project will achieve initial closing within sixty calendar days after issuance of a Firm Commitment conditioned upon final plan submission.

2. Lenders and MF Regional Center/Satellite Offices should consider the complexity of the proposed design and construction when determining whether to permit the deferred submission of final drawings and specifications. Complex issues unsuited to streamlined processing include, but are not limited to:

   • Any claim of exemption from the design and construction requirements of the Fair Housing Act based on site impracticality (terrain unsuited to accessible paths and building entrances);

• Projects where costs not attributable to residential use must be calculated because Criteria 4 of the form HUD-92264A, Statutory Limitations of cost per family unit, is material to the calculation of the maximum mortgage amount;

• Projects with complex mixed-use, commercial use, or use of new, complex construction technology; and

• Projects with complex environmental remediation issues or issues that cannot be resolved without the final set of plans and specifications (e.g., noise, historic preservation).