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CHAPTER 4. PROJECT PROCESSING

4-1. FILING AN APPLICATION.

A.Preapplication Conference. The MHD is the point of contact

with the sponsor, and will schedule project processing in

one, two, or three stages. At the initial interview, the

sponsor should be prepared to discuss in general terms the

demand for type of development proposed, the extent of

competition with other projects, the vacancy rates in

similar developments within the same market area, and

his/her plans for developing a management plan. This

conference is mandatory.

B.Sponsorship. The financial capability, reputation,

experience and ability of the sponsor will be analyzed to

ascertain whether he/she has the cash necessary to complete

it. HUD will not proceed with a project which is obviously

risky because of the sponsor\'s lack of experience, ability,

or required financial resources.

C.Market and Marketability. The sponsor must be prepared to

discuss the need for the project in the specific area as it

relates to proposed rentals, composition, unit sizes, and to

overall current and anticipated supply/demand conditions in

the market area. The FO should provide the sponsor with any

readily available data and information on market conditions.

D.Building and Site Plan Suitability. The general design

concept will be discussed, including the number and

placement of buildings on the site and composition of units,

as well as the location and extent of parking and

recreational facilities. A registered design professional

is required on all elevator projects and other projects with

16 or more units. To perform the design services on

complete projects successfully, the architect will be

expected to consult with the engineers and planners of

his/her choice.

4-2. STAGES OF PROJECT PROCESSING.

A.Single-Stage Processing. The sponsor provides at the first

submission all necessary exhibits conforming to HUD

requirements.

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(4-2) B. Multiple-Stage Processing. The sponsor may be unable to

satisfy all of HUD\'s requirements in the first submission.

In this instance, the sponsor will go through two or three

stages - the first leading to a feasibility or SAMA letter,

the second leading to a conditional commitment, and the

third to a firm commitment.

C.Application Acceptance Meeting. The purpose of this meeting

is to ensure that the application received is complete and

acceptable for processing. Only projects with complete

applications should be accepted. Projects with incomplete

or poorly prepared applications should be returned.

4-3. APPLICATION EXHIBITS - NEW CONSTRUCTION.

A.Site Appraisal and Market Analysis (SAMA).

1.Form HUD-92013 completed as follows:

a.Page 1 in its entirety

b.Page 2, Section G, Item 46, Land (Estimated Market

Price of Site)

c.Page 3, Sections K, L and M.

2.Sketch plan of the site showing the development of the

site including: location of proposed buildings,

streets, parking areas and drives, and service and

recreation areas.

3.Evidence of permissive zoning or evidence that rezoning

is likely before submission of a firm commitment

application.

4.Location map.

5.Legal description of the property.

6.Documentary evidence of title to the site or a copy of

the site option agreement, contract of sale or other

legal commitment for the site.

7.Form HUD-92010 Equal Employment Opportunity

Certification.

8.Evidence of last arm\'s length sale and price.

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(4-3) 9. Form HUD-92013E Supplement to Form HUD-92013 - for

elderly and handicapped projects only.

10.Form HUD-93433 - Request for Determination of

Eligibility of Nonprofit Sponsor and/or mortgagor, if

applicable - including financial statements.

11.Form HUD-92530 - Previous Participation Certificate,

for all principals.

12.Certification of Compliance with EO 12372 and copy of

SF 424.

13.Any environmental data, reports, etc., pertaining to

the site and this proposal.

B.Conditional Commitment. (See note in paragraph 2-2C.)

1.Form HUD-92013 completed in its entirety.

2.Architectural exhibits - schematics. See Handbook HUD

4460.1 REV-1.

3.Items 3, 4, 5, 6, 7, 8, 9 (if applicable), and 11 in

paragraph 4-3. A, above.

4.Form HUD-92013 Supplemental-Application - Project

Mortgage Insurance (Supplement to Form HUD-92013 - For

each principal and general contractor, if known).

5.Financial statements for each principal and general

contractor, if known.

a.Individuals must submit Form HUD-92417, Personal

Financial and Credit Statement or equivalent.

b.Partnerships and corporations must submit the

following separate statements and supporting

documents for the last 3 years or the length of

existence, if less than 3 years, signed by an

officer of the organization.

(1)Balance sheet

(2)Income and expense statement

(3)Statement of changes in equity

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(4-3) (4) Supporting schedules (such as aging of

receivables)

(5)Combined or consolidated statement(s)

(6)Other financial data to determine the

financial responsibility and capacity of the

sponsorship and/or general contractor

(7)The following certification: \"I hereby

certify that the foregoing figures and the

statements contained here, submitted to

obtain mortgage insurance under the National

Housing Act, are true and give a correct

showing of my financial condition as of this

date.\"

6.Personal and commercial credit report current within 30

days of the application date, on the following:

a.The mortgagor entity, if formed.

b.All general partners, limited partners with a 25

percent or more interest, stockholders with a 10

percent or more interest and officers of the

corporation.

c.Business concerns in which a sponsor, principal of

the mortgagor entity, or general contractor serves

as a general partner, limited partner with a 25

percent or more interest, stockholder with 10

percent or more interest or an officer of a

corporation.

7.Affirmative Fair Housing Marketing Plan (Form

HUD-935.2. See Appendix 4 of Handbook 8025.1 REV-1,

Implementation of Affirmative Fair Housing Marketing

Requirements Handbook).

8.Owner/architect agreement (Use AIA Document B181).

9.Grant and/or loan commitment letter (if applicable).

10.Revised exhibits for any item submitted in previous

stages of processing if changes warrant a revision.

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(4-3) 11. Response to all environmental conditions contained in

SAMA letter.

C.Firm Commitment.

1.Form HUD-92013 completed in its entirety.

2.Evidence of permissive zoning.

3.Final architectural exhibits - final. See HUD Handbook

4460.1 REV-2.

4.Form FHA-2328 - Contractor\'s and/or Mortgagor\'s Cost

Breakdown.

5.Form FHA-2457 - Final surveyor\'s Report and land

survey.

6.Management exhibits.

7.Items 4, 5, 6, 7, 8 and 9 (if applicable) in paragraph

4-3.A above.

8.Items 4, 5, 6, 7, 8, and 9 (if applicable) in paragraph

4-3.B above.

9.Revised exhibits for any item submitted in previous

stages of processing if changes or updating is

warranted.

4-4.APPLICATION EXHIBITS - REHABILITATION PROJECTS. Applications

proposing substantial rehabilitation may also be divided into as

many as three stages, although processing can be limited to a

single stage with all required firm commitment exhibits.

A.Feasibility Stage. In addition to the items required in

paragraphs 4-3.A, 3, 4, 5, 6, 7, 8, 10, 11, and 9 (if

applicable) above, submit the following:

1.Form HUD-92013 completed in its entirety.

2.Survey or site plan.

3.Drawings or sketches of existing project layout (floor

plans and unit layouts in enough detail for review).

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(4-4) 4. Description of proposed rehabilitation (work write-up),

showing the nature of the improvements for each basic

element of the project (e.g., roof, exterior walls,

porches and steps, interior walls, ceilings and floors,

kitchen and bathroom facilities, mechanical equipment,

landscaping, etc.).

Identifications of any potential or known environmental

hazards such as asbestos, transformers (PCB\'s),

lead-based paint (LBP), above/ underground storage

tanks, etc.

If alteration of existing building elevations, floor

plans or unit layouts is proposed, provide sketches

showing the post-rehabilitation changes.

5.Brief description of proposed post-rehabilitation

management policies and procedures.

6.Information concerning planned displacement or

relocation of project occupants.

B.Conditional Commitment Stage. (See Note in paragraph 2-2C.)

Submit the following items in addition to a Form HUD-92013

completed in its entirety and those listed in paragraphs

4-3.A, 4, 5, 6, 7, 8, 9, and 10 (if applicable) and

paragraphs 4-3.B, 4, 5, 6, 7, 8, 9 (if applicable), and 10:

1.Detailed work write-up showing the specific nature and

extent of the improvements for each basic element of

the project, e.g., roof, exterior walls, porches and

steps, interior walls, ceilings and floors, kitchen and

bathroom facilities, mechanical equipment, landscaping,

etc.

If alteration of existing building elevations, floor

plans or unit layouts is proposed, preliminary drawings

and specifications reflecting the post-rehabilitation

changes must be provided.

2.Cost breakdown showing the estimated cost of each of

the improvements described in the work write-up.

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(4-4) C. Firm Commitment Stage. Same as requirements of paragraph

4-3.C except that the architectural exhibits must include

the final work write-up, and drawings and specifications, if

required.

4-5.DELEGATED PROCESSING. The Delegated Processing (DP) Program

complements the Department\'s full insurance processing mechanism

by augmenting FO staff capacity to help prevent and eliminate

processing backlogs and bottlenecks. It will enhance the

Department\'s ability to provide timely, high quality application

processing and to maintain a steady supply of multifamily rental

housing while expanding affordable housing opportunities.

4-6.TECHNICAL DISCIPLINES CONTRACTS. The Technical Disciplines

Contracts (TDC) Program complements the Department\'s

architectural, engineering, cost and valuation review processes

by augmenting FO staff capacity to help prevent and eliminate

review delays, backlogs and bottlenecks.

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