7.15.5 Rehabilitation of an Existing Project

HUD Multifamily Accelerated Processing (MAP) Guide, HUD Handbook 4430.G (2020 ed., rev. Mar. 19, 2021) · 2026 edition · updated 2026-10-05 · United States

A. When Building/Improvements are owned by the Tenant/ Borrower and the Leasehold mortgage is to be insured and contains existing buildings, the valuation processing shall be as follows:

“As Is” Leasehold Value of both land and building(s) must be established by capitalization of income and/or by comparable sales, as appropriate.
Value of the land without building/improvements must be established by market comparison based on sales of similar sites. When the existing improvements are in poor condition and have little or no inherent value, their contributory value may be added to the value of the site plus any demolition cost in order to render the structure ready for development.
The total “As Is” value of the entire project is the value of the site plus contributory value of the improvements, plus any demolition costs, so that the site is ready and available for development.

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▸Contents — HUD Multifamily Accelerated Processing (MAP) Guide, HUD Handbook 4430.G (2020 ed., rev. Mar. 19, 2021)

HUD Multifamily Accelerated Processing (MAP) Guide, HUD Handbook 4430.G (2020 ed., rev. Mar. 19, 2021)

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