HUD SECTION 223(a)(7) – Multifamily Accelerated Processing (MAP)

Loans to refinance multifamily rental housing currently subject to existing HUD-insured loans

Program Features

Maximum loan can’t exceed the lesser of: the original principal balance; the existing indebtedness plus transaction costs; or, an amount that can be supported by a 1.11 debt service coverage (DSC) or a 1.05 DSC for projects with greater than 90% project-based Section 8 rental assistance.
Repairs can be included in the loan, not to exceed $1,500 per unit, excluding those required to make properties accessible for persons with disabilities.
A project capital needs assessment (PCNA) is required.
Past Due Payables and Past Due Project Liabilities – past due accounts payable and outstanding liabilities for project operating expenses must be cleared and released, or otherwise fully resolved, before or at Closing. Examples of such items include deferred management fees, overdue utility bills or real estate taxes, and trade payables. These items are not to be included in the eligible debt basis in the calculation of the cost of refinance/ acquisition.
The mortgage term may be extended 12 years beyond the term of the current HUD insured mortgage, with HUD’s approval, to a maximum of 40 years.

0.15%	Application Fee to HUD
0.25%	Mortgage Insurance Premium
3.50%	Maximum Financing and Placement Fees (for loans up to $2 million)
2.00%	Maximum Financing and Placement Fees (portion of loan > $2 million)
2.00%	Costs of Issuance for Tax-Exempt Bond Transactions

No inspection fee is required. An annual 0.25% Mortgage Insurance Premium deals) is paid to HUD.

Full escrows required for property insurance, real estate taxes, and HUD mortgage insurance premiums. These should be like what is currently being paid.
Replacement reserve escrow for on-going replacement of depreciable items is required for the term of the loan. Projects must obtain a new PCNA every 10 years, with the reserve for replacement deposit adjusted based on the results of the PCNA.