A.13.2 Agreement Authorizing Deferment of Principal Payments for Level Annuity Monthly Payment
Definition
HUD Multifamily Accelerated Processing (MAP) Guide, HUD Handbook 4430.G (2020 ed., rev. Mar. 19, 2021) · 2026 edition · updated 2026-10-05 · United States
handbooks and guides, notices, and mortgagee letters that apply to the Project, and all future updates, changes and amendments thereto, as they become effective.
Progress Schedule
Prohibited Source
Article 3.10.1 of the AIA General Conditions requires the General Contractor to prepare and submit an “estimated progress schedule for the work” to the Borrower and Project Architect.
Means any person who:
a. is seeking official action by HUD,
b. does business or seeks to do business with HUD,
c. conducts activities regulated by HUD;
d. has interests that may be substantially affected by performance or nonperformance of the HUD employee’s official duties, or
e. is an organization a majority of whose members are described in a. through d. and also includes any people who have a family relationship with the prohibited sources.
Project Based Section 8 Rental Assistance subsidy is provided to the tenants of a particular Section 8 privately owned/managed multifamily rental property in contract with HUD. The subsidy stays with the property and the tenant stops receiving subsidy when moved out from the property. Eligible tenants must pay the highest of 30 percent of adjusted income, 10 percent of gross income, or the portion of welfare assistance designated for housing or the minimum rent established by HUD. See "HAP Contract" and "Section 8." Quality Control Plan A plan HUD requires of MAP lenders that lays out their procedures and management controls. REAC Score HUD's Real Estate Assessment Center (REAC) provides a physical inspection score at the property level based on physical condition of the property. The score ranges from 0 to 100. Reasonable A reasonable accommodation is a change, adaptation, or modification to a accommodations policy, program, service, or workplace which will allow a qualified person with a disability to participate fully in a program, take advantage of a service, or perform a job. Reasonable accommodations may include, for example, those which may be necessary in order for the person with a disability to use and enjoy a dwelling, including public and common use spaces. Since persons with disabilities may have unique needs due to their disabilities, in some cases, simply treating persons with disabilities exactly the same as others may not ensure that they have an equal opportunity to use and enjoy a dwelling.
Recognized Recognized environmental conditions are designations from a Phase 1 Environmental Environmental Site Assessment that indicate the presence or likely presence Condition of any hazardous substances or petroleum products in, on, or at a property:
- due to any release to the environment;
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| Term | Definition |
|---|---|
| 2. under conditions indicative of a release to the environment; or | |
| 3. under conditions that pose a material threat of a future release to the | |
| environment. | |
| Regulatory agreement | Agreement between HUD and a Borrower laying out the Borrower's |
| responsibilities to comply with the requirements of the National Housing | |
| Act, as amended in the ownership of a multifamily housing property with a | |
| HUD-insured mortgage. | |
| Remaining economic | The estimated period during which improvements will continue to |
| life | contribute to project value and an estimate of the number of years remaining |
| in the economic life of the structure or structural components as of the date | |
| of the appraisal. | |
| Remaining Useful Life | Remaining Useful Life (RUL) is the result obtained by subtracting the actual |
| age of a building component from its Estimated Useful life. | |
| Renter Households | Qualified Renter Households is defined as households that meet any |
| (Qualified Renter | applicable age and household size restrictions and are within any limiting |
| Households?) | income eligibility band, such as LIHTC Income Limits, and who have |
| sufficient minimum income to pay the proposed rent without being rent | |
| overburdened. | |
| REO Schedule | An REO schedule lists all of the properties owned by a borrower, and is used |
| to perform a mortgage debt analysis. | |
| repairs | Repairs are defined as the reconstruction or renewal of any part of an |
| existing building for the purpose of its maintenance or to correct damage. | |
| Repairs to site features (not buildings but otherwise similarly defined) are | |
| included in this class of work. This include the patching or restoration or | |
| replacement of damaged materials, elements, equipment or fixtures for the | |
| purpose of maintaining such existing components in good or sound | |
| condition with respect to existing loads or performance requirements. | |
| Repairs also include work on non-damaged components necessary for the | |
| required repair of damaged components. In addition, installation of items | |
| not previously present in a building or on a site but necessary to address | |
| safety, security, accessibility or communications needs are considered | |
| “Repairs” when such installation and related work do not require alterations. | |
| Replacement Cost | See criterion 3. |
| limited mortgage | |
| Reserve for | Replacement Reserves are funds set aside that provide for the periodic |
| Replacement (RfR) | replacement of building components that wear out more rapidly than the |
| building itself and therefore must be replaced during the building’s | |
| economic life (short lived items). | |
| Residual receipts | “Residual receipts” refer to certain funds held by borrowers whose |
| rider | mortgages are insured or held by HUD. For mortgage insurance programs |
| that provide for limited distributions, residual receipts is the term used for | |
| the surplus cash remaining after distributions are paid. Projects that are |
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| Term | Definition |
|---|---|
| subject to residual receipts requirements must attach a rider to the | |
| regulatory agreement. Residual receipts are required for non-profit owners | |
| engaged with other select HUD programs, including Section 8 and Section | |
| 202 Supportive Housing for the Elderly. Also see "Rider". | |
| Residual receipts, | Residual Receipts may be thought of as including: |
| note | a. All "Surplus Cash" for non-profit projects. |
| b. Cash remaining after all accrued distributions have been properly taken | |
| for limited dividend projects. | |
| Residual Receipts Notes may be permitted in order to recognize owning | |
| persons', sponsors', or management's advances made to cover operating | |
| expenses, taxes, or capital improvements after final endorsement/ |
|
| Restricted excess | Those excess mortgage proceeds determined not to be available to the |
| mortgage proceeds | Borrower during construction, i.e., the difference by which the HUD estimate |
| exceeds contract amounts. | |
| Retainage | A percentage of a construction contract price retained from a contractor as |
| assurance that the job will be timely completed. | |
| Rider | A rider is an additional attachment to a regulatory agreement that |
| borrowers must execute under certain circumstances. | |
| routine maintenance | Routine maintenance is a very limited level of repairs, which among other |
| things does not require environmental review. SeeChapter 5, Section | |
| 5.1.5.Dand HUD's CPD Notice 2016-02 at | |
| https://www.hud.gov/ |
|
| Sales comparison | A method of deriving the value of a property by comparing similar |
| approach | properties that have recently sold. |
| Schedule of insurable | The schedule of Insurable Values (HUD form 92329) is generated by the CNA |
| values (Property | e-Tool. This form includes a schedule of the estimated replacement cost by |
| Insurance Schedule) | building as the insurable value of the property. |
| Schedule of Values | The itemized cost estimate for the proposed scope of construction work |
| funded either from the Construction Escrow for new construction and | |
| substantial rehabilitation projects or from the Repair Escrow for Section | |
| 223(f) projects. | |
| Section 202 | The Section 202 program was created in 1959 to provide direct government |
| loans to nonprofits for the purpose of developing affordable rental housing | |
| for the elderly, and also for persons with disabilities under subsequent | |
| authorizations. The program currently provides interest-free capital | |
| advances to finance the construction, rehabilitation, or acquisition (with or | |
| without rehabilitation) of structures that will serve as supportive housing | |
| for very low-income elderly persons. The program also provides rental | |
| assistance subsidies for these properties. |
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| Term | Definition | |
|---|---|---|
| Section | 220 | The section 220 program provides federally insured loans used to finance |
| mortgages for housing in urban renewal areas, areas in which concentrated | ||
| revitalization activities have been undertaken by local government, or to | ||
| alter, repair, or improve housing in those areas. | ||
| Section | 221(d)(4) | Section 221(d)(4) insures mortgage loans to facilitate the new construction |
| or substantial rehabilitation of multifamily rental or cooperative housing for | ||
| moderate-income families, elderly, and the handicapped. Single Room | ||
| Occupancy (SRO) projects may also be insured under this section. Section | ||
| 221(d)(4) insures lenders against loss on mortgage defaults. This program | ||
| assists private industry in the construction or rehabilitation of rental and | ||
| cooperative housing for moderate-income and displaced families by making | ||
| capital more readily available. The program allows for long-term mortgages | ||
| (up to 40 years) that can be financed with Government National Mortgage | ||
| Association (GNMA) Mortgage Backed Securities. | ||
| Section | 223(a)(7) | The Section 223(a)(7) program insures mortgage loans to facilitate the |
| refinancing of certain mortgages currently insured by FHA and to HUD-held | ||
| loans on projects subject to the Multifamily Assisted Housing Reform and | ||
| Affordability Act of 1997 (MAHRA). A mortgage refinanced pursuant to | ||
| Section 223(a)(7) is insured under the same section of the National Housing | ||
| Act (NHA) as was the mortgage originally insured under that section of the | ||
| act, for example, Section 221(d)(4) or Section 223(f). | ||
| Section | 223(f) | The section 223(f) program insures mortgage loans to facilitate the purchase |
| or refinancing of existing multifamily rental housing. These projects may | ||
| have been financed originally with conventional or FHA insured mortgages. | ||
| Properties requiring substantial rehabilitation are not eligible for mortgage | ||
| insurance under this program. HUD requires completion of critical repairs | ||
| before endorsement of the mortgage and permits the completion of non- | ||
| critical repairs after the endorsement for mortgage insurance. | ||
| Section | 231 | The Section 231 program insures mortgage loans to facilitate the |
| construction and substantial rehabilitation of multifamily rental housing for | ||
| elderly persons (62 or older) and/ |
||
| insures lenders against loss on mortgages. Section 231 was designed to | ||
| increase the supply of rental housing specifically for the use and occupancy | ||
| of elderly persons, and/ |
||
| Section | 241(a) | The section 241(a) program insures mortgage loans to finance repairs, |
| additions, and improvements to multifamily rental housing and health care | ||
| facilities with FHA insured first mortgages or HUD-held mortgages. Section | ||
| 241(a) insures lenders against loss on mortgage defaults. The program is | ||
| intended to keep the project competitive, extend its economic life, and to | ||
| finance the replacement of obsolete equipment. Insured mortgages finance | ||
| repairs, additions, and improvements to multifamily projects, group practice | ||
| facilities, hospitals, or nursing homes already insured by HUD or held by | ||
| HUD. |
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| Term | Definition |
|---|---|
| Section 50 | Section 50 and the Section 50 Addendum of the Regulatory Agreement relate |
| to the non-recourse nature of the indebtedness and indicate certain matters | |
| for which the parties may be held personally liable; the Firm Commitment | |
| will identify the party(ies) to be inserted in the Section 50 Addendum. | |
| Section 504 | Section 504 of the Rehabilitation Act of 1973 is a federal law, codified at 29 |
| U.S.C. § 794, that prohibits discrimination on the basis of disability in | |
| federally-assisted programs or activities. An individual with a disability is | |
| defined. | |
| Section 8 | A program authorized by Congress in the Housing and Community |
| Development Act of 1974 as an amendment, Section 8, of the U.S. Housing | |
| Act of 1937 (42 U.S.C. 1437f). Section 8 authorized 8 rent subsidies for low- | |
| income families. The Section 8 low-income housing program is really two | |
| programs: the Housing Choice Voucher program and the project-based | |
| rental assistance program. Vouchers are portable subsidies that low-income | |
| families can use to lower their rents in the private market. Vouchers are | |
| administered at the local level by quasi-governmental public housing | |
| authorities (PHAs). Project-based rental assistance is a form of rental | |
| subsidy that is attached to a unit of privately owned housing in accordance | |
| with a Housing Assistance Payment Contract between HUD and the owner. | |
| See HAP Contract. Low-income families who move into the housing pay a | |
| reduced rent, on the basis of their incomes. | |
| Section 811 | The Section 811 Supportive Housing for Persons with Disabilities program |
| provides funding to develop and subsidize rental housing with the | |
| availability of supportive services for very low- and extremely low-income | |
| adults with disabilities. | |
| Seismic resistance | Seismic resistance standards are building standards published by the |
| standards | American Society of Civil Engineers (ASCE) and its affiliate, the Structural |
| Engineering Institute (ASCE/ |
|
| safety in older buildings. The relevant standard is ASCE 41-13 Seismic | |
| Evaluation and Retrofit of Existing Buildings. | |
| Shell company (or | A Shell company or entity typically describes an entity that does not take |
| entity) | actions themselves but only serves as legal vehicles through which the |
| partners, members, or owners of such entity take actions are excluded. | |
| When applied to General Contractors, it describes a firm organized for the | |
| apparent purpose of acting as a General Contractor, but which in practice | |
| subcontracts the preponderance of its responsibility - measured both in the | |
| substance of the work as well as in monetary value - to one or more other de | |
| facto General Contractors, collecting a fee but performing little or no | |
| commensurate service. | |
| Side agreement | Documents defining business agreements between identity of interest |
| parties on transactions involving Builder’s and Sponsor’s Profit and Risk | |
| Allowance (BSPRA). |
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