8.8.3 — HUD Multifamily Accelerated Processing (MAP)

A. Nonprofit Borrower/Sponsors (whether national, regional, or local) must have the experience and financial strength appropriate for the development and ownership of the proposed property, see Section 8.3.2. The nonprofit Sponsor being evaluated may not have equal strength with respect to all criteria. In transactions where the Borrower/Sponsor’s ownership structure contains multiple entities performing differing functions, the Lender must evaluate the nonprofit and each of the other entities on their capacity to perform its particular function, e.g. ownership, property management, acquisition, development, resident services or asset management. This includes the need for prior acceptable history of successful development, ownership and management of assets similar in size and complexity as the proposed project. Therefore, only the criteria for the areas in which the nonprofit entity has direct responsibility

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Chapter 8 Mortgage Credit 8.8 Application Exhibits and Responsibilities

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or authority need to be applied during the evaluation process. The eligibility of prospective nonprofit Sponsor/Borrower must be determined before a Pre-application approval or Firm Commitment is issued.

B. The Lender must include in the Underwriter Narrative summary a description of the party(s) paying pre-development costs, in addition to the follow written explanations:

Details of any proposed rent/income restrictions on the property to be developed by the nonprofit.
Developer’s Agreement or any other document which shows the relationship and work responsibilities of all parties associated with the transaction.
Explanation of the terms and conditions of the Housing Consultant’s contract, if applicable. The fee for the Housing Consultant shall be an expense of the Borrower.
Memorandum of findings and recommendations:
- Must include a description of the relationship between the nonprofit and any profit motivated entities involved in the transaction.

The determination of eligibility or ineligibility of the nonprofit Sponsor/Borrower must be approved by the HUD office with jurisdiction.
At the Firm Application stage and prior to initial endorsement (beginning of construction in the case of Insurance Upon Completion), describe the Sponsor’s and Borrower’s relationships with parties or firms furnishing land and services.
Describe any signed agreements of relationship between such parties or firms with the Sponsor and Borrower.
All relationships are subject to HUD approval therefore the Sponsor and the Borrower must inform HUD in writing if there is a change in any signed agreements of relationship.

Explain any nonperforming assets in nonprofit Borrower/Sponsor portfolio in conjunction with the REO review.
Detailed explanation of the motivation for sponsoring the project including a history of the organization's involvement in multifamily housing.
The Management Agent must have a minimum of 3 years of experience in directing and overseeing the management of at least 3 properties serving the same resident clientele and comparable to the proposed property in scale, complexity, tenant profile and regulatory compliance requirements. A property manager must demonstrate adequate property management experience with properties comparable to the subject property.
Signed written resolution of the nonprofit’s directors or trustees, acknowledging the responsibilities and obligations of sponsorship and continuing ownership, and that the subject proposal reflects the will of the board and/or the membership of the organization.
Detailed statement of arrangements made or proposed for the following (listing principals involved, their relationship with the nonprofit Sponsor/Borrower, the terms of the arrangements and the circumstances surrounding each):

Land on which the project will be built including the existing length of ownership.