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

Single Asset The mortgaged property must be the only asset of the Borrower entity, and Mortgagor Entity there may not be more than one Borrower entity. Site improvements Alterations to the land that enhance the utility of any structure placed on the site. Common site improvements include, but are not limited to:

⚫ drainage
⚫ sewerage and other utilities

⚫ walks and drives ⚫ landscaping ⚫ fencing

	⚫ drainage ⚫ sewerage and other utilities ⚫ walks and drives ⚫ landscaping ⚫ fencing
Site Wide Ready for	Site Wide Ready for Anticipated Use (SWRAU) is a designation given by the
Anticipated Use	EPA to superfund sites indicating that the entire site is safe for the intended
	use and institutional and engineering controls are in place. Sites can be
	SWRAU for non-residential uses, so HUD must confirm that the SWRAU is for
	residential use.
soft cap	A soft cap is a type of engineering control used as a physical measure to
	reduce or eliminate exposure to a contamination that will remain on site.
	Soft caps are typically made of dirt and are distinct from hard caps, which
	are typically made of concrete.
Specifications (as in,	According to the Dictionary of Architecture & Construction a specification is,
Drawings and	“a written document describing in detail the scope of work, materials to be
Specification)	used, methods of installation, and quality of workmanship for a parcel of
	work to be placed under contract; usually utilized in conjunction with
	working (contract) drawings in building construction.”
Sponsor	"Sponsor” is an informal term use for persons or entities who may do one or
	more of the following: locate and control the site; assemble the development
	team, provide financial assistance to the project or provide development
	experience and expertise to the project in ways other than as a paid
	consultant. The Sponsor is not the single asset entity owner though they
	may also act as a Principal in the ownership entity.
Sponsor’s Profit and	SPRA may be included in replacement cost where no identity of interest
Risk Allowance	exists between the general contractor and borrower, or where there is an
(SPRA)	Identity of Interest, but the borrower and general contractor have agreed to
	a general contractor profit instead of BSPRA. SPRA is 10% of the total
	estimated cost of: architect's fees, carrying and financing charges, legal,
	organizational, and audit expenses.
Standard keeper	Organizations that sponsor and maintain green building certifications, such
	as LEED.
Statement of Energy	A report generated by EPA's Portfolio Manager, a Statement of Energy
Design Intent (SEDI)	Design Intent (SEDI) is based on projected utility consumption for each
	building to be built.

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Term	Definition
Statement of Energy	A statement that provides an ENERGY STAR® Score indicating a building's
Performance (SEP)	continuing performance in energy efficiency.
Statutory / Statute	"Statutory" or "statute" refers to legal authority. Statutory authority for the
	implementation of insured mortgage programs. Authority for each of the
	programs covered in the MAP Guide, is the National Housing Act, 12 U.S.C. §§
	220, 221(d)(4), 231, 241(a), 223(a)(7), and 223(f). Additionally, Section 211
	of the National Housing Act and Section 7(d) of the Department of HUD Act
	authorize the Secretary to make such rules and regulations as may be
	necessary to carry out the provisions of the National Housing Act. The FHA
	requirements listed in HUD regulations covering each MAP eligible program
	are included and more fully explained in the MAP Guide.
Statutory Limit	See Criterion 4.
Amount
straight to Firm	For New Construction and Substantial Rehabilitation projects, the Lender
(direct to firm, or one-	may choose whether to submit the application Straight (Direct)-to-Firm or
step processing)	via the Two-Stage process. For acquisition or refinance, the Lender goes
	straight to the application for a Firm Commitment, bypassing the pre-
	application stage required in the Two-Stage process.
Streamlined	Streamlined processing means that less than 100% complete plans and
processing (Expedited	specifications (construction documents) may be submitted with the
Processing, Fast-	application for Firm Commitment. All LIHTC project applications are eligible
track)	for streamlined processing of design and construction documents. For other
	applicants to be considered qualified for streamlined processing 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.
Subordination (of	Subordination, in the context of the MAP Guide, is related to secondary
loans, notes)	financing. When an FHA-insured project has secondary financing, whether
	from a public or private source, the loan or note must be subordinate the
	FHA-insured mortgage. The FHA-insured mortgage must always be in the
	first lien position.
Subordination	A promissory note that lays out the terms of the subordination, whether the
agreement	secondary financing is from public or private sources. If the secondary
	financing is from a public source, form HUD 92420-M should be used. If the
	secondary financing is from a private source, depending upon how the note
	is secured, either form HUD-92223M, HUD-92908M, or HUD-92907 should
	be used.
Substantial	Substantial rehabilitation is work on existing buildings(s) including any
rehabilitation	additions for which the Aggregate Cost of construction (the Aggregate Cost)
	exceeds the Aggregate Cost Limit amount, as defined inChapter 5, Section
	5.1.2.A.

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Term	Definition
Subsurface	Test borings or intrusive examinations made by a licensed
exploration	professional/engineer to identify the nature of subsurface problems and
	recommend appropriate action.
Superfund Site [+	EPA’s Superfund program is responsible for cleaning up some of the nation’s
National Priority List]	most contaminated land and responding to environmental emergencies, oil
	spills and natural disasters.
	The National Priorities List (NPL) is the list of sites of national priority
	among the known releases or threatened releases of hazardous substances,
	pollutants, or contaminants throughout the United States and its territories.
	The NPL is intended primarily to guide the EPA in determining which sites
	warrant further investigation.
Supervisory Architect	Describes the administrative role and responsibilities of the project architect
	during the construction period as described inChapter 12, Section 12.4. A
	supervisory architect may be a separate and independent architect from the
	architect that provided the design (Design Architect) of the project.
Surplus Cash	The cash remaining after all necessary and reasonable expenses of the
	project have been paid or funds have been set aside for such payment and all
	reserve requirements have been met.
Tax abatement	Tax Abatement is a reduction of project taxes for a specified term by the
	taxing authority.
Tax Credit Equity Pay-	FHA requires minimum Tax Credit equity contributions following an agreed
in Schedule	pay-in schedule for all LIHTC transactions. This schedule, with actual total
	equity and net-equity amounts entered, is to be added as a special condition
	to the Firm Commitment for all LIHTC Projects.
Tax Increment	Tax Increment Financing (TIF) is a public financing method that is used as a
Financing	subsidy for redevelopment, infrastructure, and other community-
	improvement projects. States create districts to administer the program for
	communities to benefit from the TIF. TIF structures vary by municipality,
	state, or local authority. They may use future increases in taxes to subsidize
	current improvements. Some states sell bonds backed by a project
	development's future taxes, while the bond money helps pay the developer's
	construction costs.
Third-party	For purposes of the MAP Guide, an agreement with a privately owned entity
Beneficiary	of offsite water and sewerage systems evidencing that Construction of
Agreement	private water and sewer facilities will provide these services at reasonable
	rates including consideration of long-term capital needs and when such
	facilities are supported and supervised by state or local authorities with
	jurisdiction.
Title II	Title II of the Americans with Disabilities Act of 1990 obligates all state and
	local government organizations (including state and local housing and
	community development agencies) to make their programs and facilities,

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Term Definition including multifamily housing programs and facilities, accessible in accordance with certain regulatory and architectural requirements. Title III Title III of the ADA applies to any portion of an insured multifamily property that is a public accommodation, i.e., a portion of the facility owned, operated, or leased to or by a private entity for use by, and open to, the general public. This includes any leasing office or facility together with public restrooms and public lobbies. Title Insurance Policy The title evidence submitted with a conveyance of the property to the Commissioner shall be in the form of an owner's policy of title insurance, except that, if an abstract and attorney's opinion were accepted by the Commissioner at the time of insurance, the title evidence may be in such form. The title evidence shall be effective on or after the date of the recording of the conveyance to the Commissioner. For specific title policy requirement see Chapter 19, Section 19.4.7. Trades (Licensed Construction-related professionals holding licenses for specific trades and Trades) skills, including but not limited to, plumber, electrician, framer, mechanical (HVAC) systems. Traditional Traditional Application (TAP) may be used if a waiver is processed to allow Application it. Review of applications for TAP processing require more work and Processing (TAP) responsibility by HUD staff, and accordingly, a higher application fee may be charged. Projects not eligible for MAP, and which may be submitted under TAP, are:

Traditional Application Processing (TAP)	Traditional Application (TAP) may be used if a waiver is processed to allow it. Review of applications for TAP processing require more work and responsibility by HUD staff, and accordingly, a higher application fee may be charged. Projects not eligible for MAP, and which may be submitted under TAP, are:
	1. Applications submitted by FHA approved multifamily Lenders who are
	not approved to submit MAP applications,
	2. Applications where there is an identity of interest between the Lender
	and the Borrower or affiliates of either, or
	3. Applications for mortgage insurance under Programs or Sections of the
	Act not covered by MAP (e.g., Cooperatives under Section 213).
Transfer of Physical	HUD uses the term "transfer of physical assets" to mean a change in the
Assets (TPA)	ownership of a project on which there is a mortgage loan insured, coinsured
	or held by HUD. While TPAs usually involve the conveyance of title, TPAs can
	also be accomplished through other means such as conveyance of 100
	percent of the beneficial interest in a passive trust which holds title to the
	project. In common parlance a TPA is an assumption of an existing mortgage
	by a purchaser or new owner of the property.
Trip Reports	Construction monitoring report by a HUD inspector on form HUD-95379.
Two Stage application	For New Construction and Substantial Rehabilitation projects, the Lender
processing	may choose whether to submit the application Direct-to-Firm or via the
	Two-Stage process. Under the two-stage application process, the lender first
	submits exhibits for a pre-application review by HUD. If satisfactory, HUD
	invites the Lender to apply for Firm Commitment.

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Term	Definition
Underwriting (Loan	Underwriting is the act of:
Insurance)	⚫ determining a borrower’s ability and willingness to repay a mortgage debt
	to limit the probability of default and collection actions, and
	⚫ examining the property offered as security to determine if it is sufficient
	collateral.
	Underwriting multifamily projects is a process for evaluating the character,
	capacity and creditworthiness of the Sponsor, Borrower and its principals,
	the General Contractor, and in the instance of an identity of interest, the
	property management company, in order to reach specific conclusions
	resulting in the approval (with conditions, as appropriate) or denial of a
	mortgage insurance application.
Uniform Federal	The Uniform Federal Accessibility Standards (UFAS) were developed by the
Accessibility	four federal agencies responsible for issuing standards under the
Standards (UFAS)	Architectural Barriers Act of 1968. The Act requires that buildings and
	facilities designed, constructed, or altered with federal funds be accessible
	and these standards were developed to define what “accessible” means.
Utility consumption	Benchmarking is the practice of comparing the measured performance of a
benchmarking	device, process, facility, or organization to itself, its peers, or established
(Energy	norms, with the goal of informing and motivating performance
Benchmarking)	improvement. When applied to building energy use, benchmarking serves as
	a mechanism to measure energy performance of a single building over time,
	relative to other similar buildings, or to modeled simulations of a reference
	building built to a specific standard (such as an energy code).
Valuation	For purposes of the MAP Guide, valuation is the process of establishing a
	value for a project. A Valuation Analysis evaluates the existing or proposed
	project as collateral and security for a long-term mortgage. Depending on
	program requirements, this includes an estimation of the market value of the
	land and/or the property as well as an analysis of the project’s market need,
	location, residential and commercial rent and other income, and operating
	expenses.
Vapor Encroachment	Presence or likely presence of “chemical of concern” vapors in the
Condition	subsurface of the Target Property caused by the release of vapors from
	contaminated soil or groundwater or both either on or near the Target
	Property as identified by the Tier 1 or Tier 2 procedures, {ASTM E2600-10}.
Vested title holder	The entity that holds title to the Land per Schedule A of the Title Policy.
	HUD’s currently approved form of title insurance policy is the American
	Land Title Association (ALTA) 2006 Loan Policy of Title Insurance – Lender’s
	Policy, or state approved equivalent (Title Policy).
Waiver	In the context of the MAP Guide, a waiver is when HUD "waives" a particular
	provision. The Multifamily Regional Director may waive non-regulatory or
	non-statutory provisions of the MAP Guide, althoughChapter 11specifies
	several requirements that may not be waived without prior approval of HUD

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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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