SS Multifamily Memo 17-01mf

Date: April 28, 2017

MULTI-FAMILY GUIDE REVISIONS: CONTACT MULTI-FAMILY

MULTI-FAMILY LOAN PURCHASE PROGRAM
Eric Havelock, Lending Officer II

Property Reports
(Section 2001.04.A)

Effective with the date of this memo, all health and safety inspection reports being submitted to AHFC for multi-family commitment consideration must include an inspection of 50% of the occupied units and 100% of the vacant units. The current requirement is 20% of the occupied units and 50% of the vacant units. An updated UND-9, to be attached to the inspection report and signed by the licensed home inspector, is attached to this memo. Lenders are reminded that the health and safety inspection report should be provided to the appraiser for use in determining the value of the property.

AHFC requires all identified health and safety items and any deferred maintenance items to be corrected prior to the purchase of the loan. All recommended repairs identified by the home inspector must also be corrected, but may be escrowed at 150% of the estimated cost of correction as supported by a bid clearly identifying the nature of the work to be performed. Excess escrow funds after the correction of the identified item(s) may only be returned to the borrower when the escrow is not funded with loan proceeds.

As a reminder, lenders are cautioned that when reviewing inspection reports, health and safety items noted for the sample of units inspected may indicate similar deficiencies in additional uninspected units. AHFC reserves the right to require an inspection of all of the units to confirm the observations on the inspected units are not prevalent in the uninspected units.

MULTI-FAMILY LOAN PURCHASE PROGRAM
Eric Havelock, Lending Officer II

Commitment Procedures Documentation Required
(Section 5000.03.A Tab 2)

As a reminder to lenders, all copies of contracts, leases, etc. pertaining to the property and submitted with the application for commitment must be signed by the parties to the contracts, leases, etc. Should a request for commitment be submitted with unsigned rental contracts, unsigned property management contracts or rental contracts that are not supportive of the projected rents, the file will be placed in a pending status until the information is received. This may delay a final determination for the file.

MULTI-FAMILY LOAN PURCHASE PROGRAM
Eric Havelock Lending Officer II

Replacement Reserves
(Section 4000.03)

Effective with appraisal reports ordered as of the date of this memo, appraisal reports must include replacement reserves equal to or exceeding $300 per unit, per year in the estimation of operating expenses.

FORM/GUIDE REVISIONS: CONTACT MULTI-FAMILY

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REVISED FORM

ATTACHMENTS