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	Refinance/Acquisitions
SOAs	223(f) Refinance	223(f) Acquisition	223(a7)
	factors: https://www.hud.gov/program_offices/h ousing/mfh/hicost/hicost
Criterion 5 (Maximum % of NOI allowed for debt service incl MIP)	90% of NOI (1.11 DSCR) –Projects with 90% or greater rental assistance. 87% of NOI (1.15 DSCR) –Projects that meet the definition of Affordable Housing and for which the achievable Tax Credit rents are at least 10% below market rents. 85% of NOI (1.176 DSCR) -Market rate projects or tax credit projects without a significant rent advantage (i.e., the achievable rents are at least 10% below market.)		95% of NOI (1.05 DSCR)- ⚫ Projects with greater than 90% of units assisted by Project-based Section 8 rental assistance (PBRA) and Cooperative Housing insured under Section 213 90% of NOI (1.11 DSCR)- ⚫ All other projects.
Criterion 7 (maximum % of acquisition cost)	For Acquisition Projects: 90% –Projects with 90% or greater rental assistance. 87% –Projects meeting the Affordable Housing Definition and for which the achievable Tax Credit rents are at least 10% below market rents. 85% –Market rate projects or Tax Credit projects withouta significant rent advantage (i.e., the achievable rents are at least 10% below market.)		N/A
Criterion 10 (actual cost or maximum % of value for cash out)	For refinancing, the greater of: 80% of value, allowing cash out if mortgage amount exceeds actual costs; or Actual cost of refinancing eligible debt, repairs and alterations, and loan origination and closing charges.		Amount based on the cost to refinance the existing insured mortgage and other permitted debt, permitted repairs, and loan origination and closing charges. Cash out is not permitted.

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Appendix 3 Program Specifications and Limitations A.3.1 Specifications and Limitations by Program

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	Refinance/Acquisitions
SOAs	223(f) Refinance	223(f) Acquisition	223(a7)
Minimum Vacancy and Collection Loss rates	3% -Projects with HAP contracts covering 90% or more of the units. 5% -Properties meeting at least the minimum LIHTC set aside requirements with or without income averaging, (20% of the units set aside for tenants earning not more than 50% of area median income; 40% of the units set aside for tenants earning no more than 60% of area median income); and attainable tax credit rents at least 10% below market. 7% -Market rate properties or LIHTC properties with any percentage of units set aside but without a significant rent advantage (i.e., the achievable rents are at least 10% below market.)		Actual Occupancy
Appraised Residential Physical Occupancy	Based upon operating history and prevailing market conditions (See Chapter 7, Section 7.5.7for detailed discussion).
Underwritten Commercial Physical Occupancy	The lesser of 90%, the actual occupancy rate of the of the subject or that indicated by market.
Appraised Commercial Physical Occupancy	Based upon operating history and prevailing market conditions.
Commercial Space Limit	25%		Existing commercial space only
Commercial Income Limit (% of Effective Gross Income)	20%		Existing commercial income only
Repair threshold calculations	Total aggregate cost of rehabilitation (including contingencies or allowances) as defined inChapter 5, Section 5.1.2.		Repairs limited to $1,600 per unit (Refer to Chapter 5, Section 5.1.5.D).
HUD Application Fee	$3.00 per $1,000 of requested mortgage amount. Refer to Chapter 3, Section 3.1.36 for Opportunity Zone project fees.		$1.50 per $1,000 of requested mortgage amount.
HUD Inspection Fee	For loans insured pursuant to Section 207/223(f), the inspection fee is the following:		No Inspection Fee

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Appendix 3 Program Specifications and Limitations A.3.2 Developer Fees by Program

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	Refinance/Acquisitions
SOAs	223(f) Refinance	223(f) Acquisition	223(a7)
	⚫ $30 per unit where the repairs/improvements are greater than $100,000 in total but $3,000 or less per unit. ⚫ The greater of $30 per unit or 1% of the cost of repairs or $1,500, where the repairs/improvements are more than $3,000 per unit. ⚫ $1,500 where the total repairs/improvements are less than $100,000, which may be decreased by the Regional Center or Satellite Office, if the Lender elects to take responsibility for the inspection.
Maximum Lender Fees and Charges	3.5% of the mortgage amount, this calculation may consist of any combination of origination, financing, and permanent placement fees as long as it also includes the Lender’s legal fee. Financing and placement fees up to 5.5% are permissible in bond transactions. Third party costs (e.g., appraisal, market study, PCNA, and other organization costs) may be included as mortgageable soft costs in the mortgage calculations, and are not included in the limitation on Lender fees.		See Chapter 18, Section 18.3.7.