HUD released an updated Multifamily Accelerated Processing (MAP) Guidebook on November 23, 2011 that includes revisions and updates to the original guidebook that was published August 22, 2011. The revised MAP Guidebook makes significant changes and updates to a few key sections including the Eligible Multifamily Mortgage Insurance Program chapter, Architectural Analysis chapter, the Valuation Analysis chapter, and the Mortgage Credit Underwriting and Processing Requirement chapter. In addition to correcting several typographical errors, the agency made the following revisions:

  • The maximum allowable Permanent Placement Fee a lender may charge is a total of 3.5% of the mortgage amount which can consist of any combination of origination, financing, and permanent placement fees as long as it also includes the lender”˜s legal fee. Chapter 3;
  • HUD has clarified that “new construction or substantial rehabilitation of apartments specifically designed with occupancy restricted to the elderly age 62 and over should be processed under Section 231. MAP projects (except for those financed under Section 231) may be age restricted (i.e., head of household 62 years of age or older) but cannot prohibit occupancy, based exclusively on age by other family members less than age 62 including children under age 18.” Chapter 3;
  • The acceptable units of comparison for comparing project sales have changed. HUD no longer considers the Gross Rent Multiplier (GRM) an acceptable unit of sales comparison. Chapter 7;
  • The agency has added clarifying language to amend the section dictating the effective date for appraisals: “For Firm Commitments, the effective date of the appraisal must be within 180 calendar days prior to the issuance of the Firm Commitment. The MF Hub/PC may require an updated appraisal prior to an amendment, re-issuance or an extension of the Firm Commitment, e.g., if there is a material change in the terms of the mortgage or in the market conditions and market data upon which the Firm Commitment was based.” Chapter 7;
  • For commercial income valuation, HUD has clarified that when establishing the contribution to value of the commercial portion of a mixed-use project, the market appraiser must apply certain programmatic limitations on commercial occupancy. Chapter 7;
  • HUD has clarified how to derive non-tenant parking income when estimating project income. Chapter 7;
  • The agency has clarified the requirements for analyzing the lender’s mortgage credit review. Chapter 8.

To view the updated MAP Guidebook and a summary of updates and revisions, click here.