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7.18.8 Technical Appraisal Review Requirements

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. The HRA or Senior Underwriter must follow the review requirements listed below:

  1. Exhibits. The Lender must submit the exhibits listed in Section 7.10.1 to HUD.

  2. Market Study Review. The HRA or Senior Underwriter and the EMAD economist must each provide a desk review of the market study to determine reasonableness and compliance with Market Study requirements. The Reviewer must make final recommendations to the team leader regarding market demand for the project.

  3. Level of Inspection. The HRA or Senior Underwriter must state the level of inspection. Preferably, they should inspect the subject site and as many as possible of the comparables used in the appraiser’s forms HUD-92273 and HUD-92274 analysis.

MAP Guide, March 2021 Go to beginning of Chapter 7

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Chapter 7 Valuation & Market Analysis 7.18 Appraisal Review Policy and Requirements

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  1. Environmental Review. The HRA (or other designated employees) must review the Lender’s submitted HEROS report, including the Phase I ESA, supplement the information as needed, and make the required findings in HEROS.

  2. Site Review. The HRA must review site characteristics and make a recommendation regarding site acceptability to the team leader.

  3. Comparables. The HRA must determine that the comparables submitted are acceptable.

  4. Recommendation. From a review of forms HUD-92264, HUD-92273, HUD-92274, and supporting information, the HRA must make a recommendation to the team leader regarding:

The acceptability of the proposed rents and estimated rental income,

  • The acceptability of the total operating expenses,

  • The acceptability of the site and the estimated warranted price of land or “as is” value,

  • If applicable, the estimate of market value, and

  • Any recommended modifications necessary to approve the application instead of a categorical rejection. Any value conclusions made by HRA that differ from the appraisal under review require preparation of a work file in accordance with Standard 1 of USPAP. Only licensed appraisers may develop a different value. In determining acceptability, the Department prefers that the HRA or Senior Underwriter only opine on the quality of the work under review and as to whether or not it is reliable for use in underwriting mortgage insurance.

  1. Compliance with USPAP. The HRA or Senior Underwriter must also ascertain if the appraisal complies with Standards 1 and 2 of the Current USPAP. Senior Underwriters must be familiar with USPAP or consult as necessary with the HRA. USPAP does not require that reviews to determine USPAP compliance be made by an appraiser.

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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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