A.5.6.2.3 Section 223(f)

A. HUD Architectural Review of Lender’s Architectural Analyst’s Report for Firm Exhibits - Section 223(f)

HUD Office Name:

Firm Commitment Submission Date: Project Name: Project Location (City, State): MAP Lender Name:

NOTE: The following summary of Section 504 applies to any housing that has ever received Federal assistance, such as Project-Based Section 8, CDBG, HOME funds, etc. (see Appendix 5, Section A.5.2 for definition of “Federally assisted.”)

B. Summary of Section 504 of the Rehabilitation Act of 1973 and 24 CFR Part 8-Uniform Federal Accessibility Standards (UFAS) or Deeming Notice Requirements (See Appendix 5, Section A.5.2):

Any property built with assistance, or became assisted prior to July 11, 1988 has been obligated since such time to bring the property into compliance with UFAS or the Deeming Notice requirements (including 5% of total units as mobility accessible and 2% of total units as sensory accessible units) through any replacements and alterations that took place over time, unless particular elements of compliance required alteration of a load bearing-wall or would have an undue financial and administrative burden (see 24 CFR 8.23).

In the decades since 1988 significant compliance should have been achieved. Some existing properties may have become assisted after 1988 and compliance should, (but may not), have been achieved at the time of assistance and these properties also must make all replacements and alterations conform so as to achieve compliance over time as well as addressing the needs of disabled tenants. No assisted property is exempt. All must either be in compliance or must be progressing toward compliance subject only to forbearance for particular items of non-compliance by reason of the “load bearing wall” and the “undue financial and administrative burden” exemptions.

• C. Summary of HUD Architectural Review:

1. Firm Commitment deliverables.

   • Lender’s Capital Needs Assessment with attachments delivered in the CNA e-Tool.

• Attachments to the CNA:

MAP Guide, March 2021 Go to beginning of Appendix 5

Bookmarked Version Go to Acronym and Abbreviation List, Glossary, Index

Appendix 5 Page A5-38

To return to this page after clicking a link, press ALT + Back Arrow

Appendix 5 Architectural and Construction Analysis A.5.6 HUD Architectural Review Report Format

Go to Table of Contents

• 1. Certificate of Occupancy or final inspection report, if available, or a statement from the Building Code/Zoning Code official recognizing any non-conforming use.
• 2. Municipal code violation report, fire marshal’s report, both clear
• 3. Local health officer’s report/clear report for any private water supply or sewer treatment system.
• 4. Property/site location map(s).
• 5. Aerial photography or satellite view of site.
• 6. As-built plans if available.
• 7. Annotated photography of property conditions and any other due diligence reports, e.g. intrusive examinations by third parties, lead based paint, or asbestos.
• 8. O&M plans proposed or in place.
• 9. If a Project Architect is engaged:

  • a) The owner/Architect agreement, AIA B104.

  • b) The Project Architect’s certification, Appendix 5, Section A.5.8.2.

  • c) Drawings/sketches for reconfigured spaces and/or altered site improvements.

• 10. If a General Contractor is engaged:

  • a) The owner contractor agreement, AIA A104.

  • b) The contractor’s cost breakdown, form HUD 92328.

• 11. The Borrower’s chart of accounts (or relevant portions) describing capitalized vs operating expense items.
• 12. A seismic report per Appendix 5, Section A.5.3.1, if threshold values for SXs and SX1 are exceeded.
• 13. A statement of the Needs Assessor’s and other third-party examiner’s (e.g. energy professional, intrusive examiner, seismic engineer) qualifications (if not included in CNA e- Tool narrative screen).
• 14. Supporting energy reports and documents (e.g. ASHRAE Level 2 Energy Audit) required for qualifying Green MIP projects, per Chapter 6, Section 6.6.

If incomplete or unacceptable, specify and indicate reasons.

2. Review of CNA.

Physical Inspection, which should include the following verification:

• 1. Accuracy of A/E portion of form HUD-92264 as reported in CNA e-Tool.
• 2. Condition of project and assessed RUL of components justified, photography supports assessment, level of investigation consistent with age, type of construction and condition of the buildings.

MAP Guide, March 2021 Go to beginning of Appendix 5

Bookmarked Version Go to Acronym and Abbreviation List, Glossary, Index

Appendix 5 Page A5-39

To return to this page after clicking a link, press ALT + Back Arrow

Appendix 5 Architectural and Construction Analysis A.5.6 HUD Architectural Review Report Format

Go to Table of Contents

• 3. Description of project replacement needs and repair scope of work must address and/or include the following

  • a) Immediate repair needs, both Critical and Non-critical, are detailed, cost estimated, with estimated months to complete for those which can be deferred beyond endorsement.

  • b) Dimensioned sketches or drawings are provided for reconfigured spaces sufficient to confirm accessibility and to support inspection of completed work.

  • c) Expected future repair, replacement, and major maintenance needs reflect assessed condition of all capital items at property consistent with owner’s distinction between capital items and operating expense.

  • d) Scope of work described in CNA e-Tool addresses all accessibility deficiencies by describing the deficiency, prescribing and costing a remedy, identifying the applicable statute(s) and accessibility standard(s), and estimating the time in months for completion of the remedy (corrective action plan).

  • e) Lender’s 223(f) Repairs and Alterations Cost Worksheet, per Chapter 5, Section 5.10.4.

Financial factors and 20-year RfR plan:

• 1. Inflation adjustments to capital costs, short-term interest rates on balances and percentage changes in ADRR are realistic and consistent, with no large, lump sum increases in ADRR from one year to the next.
• 2. Financial plan meets the requirements described in MAP Guide Appendix 5, Section A.5.7.4.3.

Accessibility for persons with disabilities:

• 1. CNA identifies and documents accessibility deficiencies by describing the deficiency, prescribing and costing a remedy, identifying the applicable statute(s) and accessibility standard(s) and estimating the time in months for completion of the remedy, (corrective action plan).
• 2. If time to complete exceeds 1 year or deficiencies cannot be corrected within the underwriting parameters of Section 223(f), submit corrective action plan to Director of Technical Support at HUD Headquarters in Washington, DC.

If not acceptable, indicate reasons.

• D. I have reviewed the subject project and hereby make the following recommendation(s):

Reviewer:

Name of Reviewer:

Signature and Date of Review:

Date:

Concurrence:

Name of Team Leader: Signature and Date of Concurrence: Date:

MAP Guide, March 2021 Go to beginning of Appendix 5

Bookmarked Version Go to Acronym and Abbreviation List, Glossary, Index

Appendix 5 Page A5-40

To return to this page after clicking a link, press ALT + Back Arrow

Appendix 5 Architectural and Construction Analysis A.5.7 Capital Needs Assessments

Go to Table of Contents