Leadership Updates Brian Montgomery has been Confirmed as the New - - PDF document

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Leadership Updates Brian Montgomery has been Confirmed as the New - - PDF document

Nov 19, 2022 296 likes •692 views

5/31/2018 Multifamily West Industry Update Denver, Colorado May 31, 2018 Tom Azumbrado , Regional Director, Multifamily West Region Angela Corcoran , Production Division Director, Multifamily West Region Leadership Updates Brian Montgomery

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5/31/2018 1

Multifamily West Industry Update

Denver, Colorado

May 31, 2018 Tom Azumbrado, Regional Director, Multifamily West Region Angela Corcoran, Production Division Director, Multifamily West Region

Leadership Updates

  • Brian Montgomery has been Confirmed as the New Assistant

Secretary for Housing/FHA Commissioner

  • Lamar Seats is the new Deputy Assistant Secretary (DAS)
  • Bob Iber will stay on as a Special Advisor
  • Arden Sokolow Regional Director for North East has left HUD
  • Tom Azumbrado will be on detail June through August as the

Acting Director of the Office of Asset Management and Portfolio Oversight (OAMPO)

  • Angela Corcoran will be the Acting Regional Director for Tom

Azumbrado starting June 7th through the end of August.

2

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5/31/2018 2

3

Christopher Thornton

Operations Officer 415-489-6493 Christopher.J.Thornton@hud.gov

Erica Kodiyan

UW Branch Chief San Francisco 415-489-6661 Erica.B.Kodiyan@hud.gov

Mark Feilmeier

UW Branch Chief Denver 303-672-5451 Mark.E.Feilmeier@hud.gov

Tim Sovold

TS Branch Chief Denver 303-839-2617 Tim.Sovold@hud.gov

Shannon Bergman

UW Branch Chief San Francisco 415-489-6677 Shannon.M.Bergman@hud.gov

Laurence Fergison

TS Branch Chief San Francisco 415-489-6618 Laurence.J.Fergison@hud.gov

Erin Ferguson

AE Branch Chief San Francisco 415-489-6765 Erin.C.Walsh-Ferguson@hud.gov

Gwen Kelleher

RS Branch Chief San Francisco 415-489-6633 Gwen.Kelleher@hud.gov

Angela Corcoran

Production Division Director 415-489-6606 Angela.M.Corcoran@hud.gov

San Francisco Regional Center Denver Satellite Office Tom Azumbrado

Multifamily West Regional Director 415-489-6604

Thomas.W.Azumbrado@hud.gov Ramona Mitchell

AE Branch Chief San Francisco 415-489-6647 Ramona.J.Mitchell@hud.gov

Silvia Cuellar

AE Branch Chief Los Angeles/Honolulu 415-489-6632 Silvia.L.Cuellar@hud.gov

James Raymond

AE Branch Chief LA/Las Vegas 415-489-6656 Ames.A.Raymond@hud.gov

Jeanne M. King

Program Advisor 415-489-6546 Jeanne.M.King@hud.gov

Anitha A. Weiss

Program Analyst 415-489-6741 Anitha.A.Weiss@hud.gov

Terre Jones

AE Branch Chief (Denver) 303-672-5439 Terre.L.Jones@hud.gov

Adela Escalante

RS Branch Chief (Denver) 303-672-5417 Adela.M.Escalante@hud.gov

Vacant

AE Branch Chief (Denver) Mary Ellen McFarlane AE Branch Chief (Denver/Phoenix) 303-672-5411 Mary.E.McFarlane@hud.gov

Eileen Hearty

Asset Management Division Director Satellite Office Coordinator 303-672-5433 Eileen.M.Hearty@hud.gov

Vacant

Asset Management Division Director

Vacant

Asset Management Division Director

Multifamily West Region Management

4

Tiger Hudson

Program Analyst 415-489-6756 Tiger.Hudson@hud.gov

Erica Kodiyan UW Branch Chief (San Francisco) 415-489-6661 Erica.B.Kodiyan@hud.gov Shannon Bergman

UW Branch Chief (San Francisco) 415-489-6677 Shannon.M.Bergman@hud.gov

Mark Feilmeier

UW Branch (Denver) 303-672-5451 Mark.E.Feilmeier@hud.gov

** Douglas Lonstein - 415-489-6556 - Douglas.A.Lonstein@hud.gov ** Julie Carter - 415-489-6693 - Julie.E.Carter@hud.gov ** Ryan Lewis - 415-489-6673 - Ryan.M.Lewis@hud.gov ** Shanon Timmons - 415-489-6676 - Shanon.L.Timmons@hud.gov ** Elaine Chavez - 303-672-5427 - Elaine.M.Chavez@hud.gov ** Heather Shea - 303-672-5268 - Heather.N.Shea@hud.gov ** James Flynn - 303-672-5421 - James.P.Flynn@hud.gov ** Kimberly Carabelos - 303-672-5410 - Kimberly.Q.Carabelos@hud.gov ** Laura Stutzman - 303-672-5446 - Laura.D.Stutzman@hud.gov ** Meagan Recker - 303-839-2675 - Meagan.L.Recker@hud.gov ** Nadine Hires - 303-672-5182 - Nadine.A.Hires@hud.gov ** Raquel Walstad - 303-672-5435 - Raquel.R.Walstad@hud.gov ** Sandra King - 303-839-2689 - Sandra.K.King@hud.gov ** Thomas Maes - 303-672-5448 - Thomas.W.MaesJr@hud.gov @@ Alamdar Arastu - 415-489-6657 - Alamdar.H.Arastu@hud.gov xx Catherine Wagner - 415-489-6434 - Catherine.A.Wagner@hud.gov && Cindi Tsai - 415-489-6619 - Cindi.Tsai@hud.gov @@ Eleanor Uy - 415-489-6537 - Eleanor.Uy@hud.gov @@ James Myers - 415-489-6622 - James.A.Myers@hud.gov

  • o Stephen Belding - 415-489-6744 - Stephen.T.Belding@hud.gov

** Tina San Juan - 213-223-7407 - Tina.L.SanJuan@hud.gov Angela Corcoran

Production Division Director 415-489-6606 Angela.M.Corcoran@hud.gov

Tim Sovold

TS Branch Chief (Denver) 303-839-2617 Tim.Sovold@hud.gov

  • o Brett Morgan - 303-675-1675 - Brett.Morgan@hud.gov
  • o Christopher Bellegante - 303-672-5205- Christopher.L.Bellegante@hud.gov
  • o David Melanson - 303-839-2633 - David.Melanson@hud.gov
  • o Dennis Thacker - 303-672-5498 - Dennis.V.Thacker@hud.gov

@@ Eddie Muniz - 303-672-5157 - Eddie.MunizJr@hud.gov xx Mikaela Urgo - 303-675-1622 - Mikaela.L.Urgo@hud.gov @@ Steven Colony - 303-839-2688 - Steven.P.Colony@hud.gov Laurence Fergison

TS Branch Chief (San Francisco) 415-489-6618 Laurence.J.Fergison@hud.gov

Morella Lombardi Program Advisor

303-672-5170 Morella.J.Lombardi@hud.gov

** Underwriter

@ @ Construction Analyst

  • Appraiser

xx Closing Coordinator && Program Analyst

Jacqueline Perry

Program Assistant 415-489-6623 Jackie.L.Perry@hud.gov

## Angela Simmons - 415-489-6486 - Simmons.Angela@hud.gov ** Daniel Gallant - 415-489-6527 - Daniel.C.GallantJr@hud.gov ** Jacquelyn Marshall- 415-489-6663 - Jacquelyn.E.Marshall@hud.gov ** Page Robbins

  • 415-489-6629 - Page.Robbins@hud.gov

## Program Assistant

Multifamily West Production Division

San Francisco Regional Center Denver Satellite Office

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5/31/2018 3

Multifamily West Region Staffing

Multifamily Division Current Staff Level Authorized Staff Level

San Francisco Production 22 30 Denver Production 19 21

Production Total 41 51

San Francisco AM 52 59 Denver AM 36 42

Asset Management Total 88 101

San Francisco Operations 4 6 Denver Operations 2 2

Operations Total 6 8 Regional Office 3 3 Total 138 163 Note: Original Transformation staffing plan allotted 180 FTEs

Multifamily West Region Vacancies

PRODUCTION: 3 Underwriters 2 Appraisers 2 Construction Analysts 2 Program Assistants 1 Closing Coordinator ASSET MANAGEMENT: 2 Division Directors 1 Branch Chief 1 Program Analyst 4 Account Executives 2 Resolution Specialists 3 Program Assistants On Board Staff = 138

Vacant Positions = 25

Total FTE = 163 Original FTE for Transformation = 180 (due to budget adjustments, current staffing level has been adjusted to 163, 17 less than originally planned) Recent hiring approvals to be onboarded this FY = 11 1 Appraiser, 1 Production Program Assistant, 1 Underwriter Analyst, 1 Construction Analyst, 1 Closing Coordinator, 1 AM Division Director, 1 AM Program Assistant, 4 Account Executives OPERATIONS: 2 Program Analysts

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5/31/2018 4

FY18 Closings by State

State Closings Units Mortgage Alaska 1 24 $1,388,000 Arizona 13 2,509 $240,452,300 California 20 1,849 $179,707,100 Colorado 15 2,248 $338,866,600 Hawaii 1 128 $13,900,000 Montana 1 81 $2,328,700 Nevada 9 1,651 $131,969,400 Oregon 10 856 $73,755,800 South Dakota 1 160 $24,165,300 Utah 4 786 $137,427,900 Washington 10 1,344 $238,671,600

13 1 15 20 9 10 1 4 10 1 1

FY18 Closings by Lender

8

12 9 8 7 7 5 5 4 4 3 3 3 2 2 2 2 2 11111

12 Closings – 1 Lender 9 Closings – 1 Lender 8 Closings – 1 Lender 7 Closings – 2 Lenders 5 Closings – 2 Lenders 4 Closings – 2 Lenders 3 Closings – 3 Lenders 2 Closings – 5 Lenders 1 Closings – 5 Lenders

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5/31/2018 5

Multifamily West Region Asset Management

Total Properties Total Units

4,912 350,575

Assisted and Insured Properties

Properties Units Annual Assistance Unpaid Balance 596 52,180 $460,629,792 $2,541,508,274

Assisted and Uninsured Properties

Properties Units Annual Assistance 3,373 165,197 $1,520,469,480 Unassisted and Insured Properties Properties Units Unpaid Balance 943 133,198 $10,539,056,109

Closings this Fiscal Year

Mortgage Amount: $2,188,000,000 Mortgage Amount: $1,480,123,000

221(d)(4) NC/SR

Properties: 23 Amount: $648,085,300

223(a)(7)

Properties: 12 Amount: $134,572,300

223(f)

Properties: 46 Amount: $585,579,100

Total Properties: 81 Mortgage Amount: $1,368,236,700

FY 2018 YTD

FY 2017 FY 2016

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5/31/2018 6

LIHTC’s FY 2018 Closings

7 states, 24 projects, $214,054,300

LIHTC closings State Closings Units Mortgage Amount

CA

10 912 $82,136,600

CO

4 317 $26,908,500

HI

1 128 $13,900,000

MT

1 81 $2,328,700

NV

2 311 $22,022,500

OR

5 566 $52,858,000

WA

1 169 $13,900,000

90 Firms Issued This FY

221(d)(4) NC/SR

Firms Issued 18 Average Staff Processing 46 Days Intake to Firm 80 Days

223(a)(7)

Firms Issued 13 Average Staff Processing 32 Days Intake to Firm 68 Days

223(f)

Firms Issued 59 Average Staff Processing 48 Days Intake to Firm 119 Days

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5/31/2018 7

FY18 Application Submissions

42 7 10 11 17 13 13 14

5 10 15 20 25 30 35 40 45 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18

Applications Received

127 Total Applications Submitted FY 18 YTD

Applications in Processing

221(d)(4) 38 223(f) 15 223(a)(7) 2

Applications in Active Processing

Total 55

Properties under Construction Applications with Firm Issued

221(d)(4) 4 223(f) 27 223(a)(7) 4 Total 35 221(d)(4) 66 Total 156

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5/31/2018 8

Challenges

  • Dan Sullivan leaving
  • CNA eTool and HERO systems
  • RAD is now processed in each Region
  • Concentrated Risk Approval delays
  • Identity of Interest Approvals must be

approved by HQ’s prior to submission of application

15

Foreign Nationals

  • At least one Active Principal:
  • US Citizenship or Legal Immigration Status
  • Social Security Number
  • File in APPS/or 2530s
  • History of operational decision making for the

property/ownership entity and Multifamily Experience

  • Have assets and net worth commensurate with the

planned project.

  • Full mortgage credit review must be completed by Lender

and HUD.

16

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5/31/2018 9

Passive Foreign Nationals

  • If passive, must disclose identification of

individual and lender must perform OFAC search.

  • Lender must certify that the org docs confirm

passive role.

  • Passive investor must certify that interest is

passive.

17

Recent Endeavors

  • HEROS Access for Third Parties as of 5/30
  • New HCF’s issued on HUDCLIPS
  • Waivers for 315% only for High Cost Areas, only Green and Affordable

d4’s both new and sub-rehab. No waivers of HCF’s for Section 223f’s.

  • New Firm Commitments
  • Breaks out MIP 3 ways
  • Required forms are listed as exhibits in the FC: 92264, 92264-A, CNA e-

tool exhibit

  • Updated boiler plate special conditions allows editing of project

specific special conditions

18

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5/31/2018 10

Good News for Section 202 Refinances

  • Approved PRBA for Pre 1974 Section 202

Properties

  • Approved RAD for Section 202 PRAC
  • New Section 202 Construction Funding

19

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5/31/2018 1

General Underwriting Best Practices/Tips and Tri ricks

HUD D Industry ry Update te Meeti ting Multifamily We West Region Thu hursday May 31, 2018 Multifamily We West Region Larry Fergison and Tim Sovold: Branch Chiefs of Tech

Lone Mountain site, Las Vegas

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5/31/2018 2

Concept Meetings

Early Liaison/All Hands HUD Concept Meetings Encouraged:

  • Key Underwriting, Programmatic, Legal, and potential deal-breakers.
  • Environmental issues for 221d4s and selected 223fs.
  • Older properties -- Plans for the future.
  • Develop Action Plans, including long lead-time items:

– AM coordination

  • TPA
  • 20-year HAP renewals
  • Pre-pay

– Environmental

3

Lone Mountain framing

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5/31/2018 3

Lone Mt. Clubhouse and Pool Best Practices -- 221d4 and 223f

Most applications are complete and well put together ( ☺ ), and ALL have a great deal of time and effort put into them. But… We offer these Overall suggestions for both 221d4 and 223f programs:

  • Clearly identify all waivers needed in the narrative and include a draft

HUD-2 as a starting point for HUD staff. (Also, discuss at Concept).

  • Key AM items completed by submission (“Comfort Letter” OK).
  • Due diligence: 3rd party reports sometimes accepted by lender when

modifications are appropriate/necessary.

  • Narrative should focus on risk, and provide its own UW analysis, and

minimize “cut and paste” from 3rd party reports.

6

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5/31/2018 4

Best Practices -- 221d4 and 223f (continued)

  • MC review of principals should match key principals in org docs.
  • Use LIHTC wheelbarrow on all LIHTC deals.
  • Discussion on “Character” of borrower and their Past Practices impacts
  • n property (deferred maint), residents, and vendors (Google/Yelp).
  • Lender responsible to ensure accurate property and market
  • assessments. Confirm with on-site visits.

7

Clearfield, Utah

8

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5/31/2018 5

Best Practices – 221d4 Pre-App/Firm

We offer suggestions for 221d4s:

  • Developers need sufficient MF Development experience for proposal

(NOT: Cajun restauranteur, owning a hardware store, beauty parlor).

  • Commercial space and income on 221d4s – need supporting market

data and 3rd party analysis to support along with MAP Appendix J. (establish parameters at Pre-App stage).

  • Regional Environmental Officer Approval needed when:

– 201 units or more New Construction or Sub-Rehab – D4’s, any unit size, noise above 65 DNLs – Any project with an MOU with local government, existing well monitoring, or any special study area or “issues”

9

Chandler, AZ

10

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5/31/2018 6

Best Practices -- 223f

  • Cap rates should be no less than all-in rate and also no “Owner

Elective” repairs since these should be in repair scope of work.

  • Commercial space and income on 223fs – need 5-year occupancy history if

there is substantial commercial.

  • Identify capital improvements over past 5-10 yrs for older properties.
  • Clear work write-ups: “Landscaping: $80,000” is not inspectable.
  • Clarify if overall project is Level II or III and review MAP, including

schedule of repairs and interrupted occupancy.

  • Elevators and Relocation.

11

Best Practices -- 223f (Continued)

  • Assess variances in actual operating NOI vs. proposed NOI and explain

how Lender UW became comfortable. It should be clear to HUD how you calculated UW rents and expenses.

  • Cash out requests – especially for “older properties” -- should have

discussion on long-term asset preservation.

  • Section 223fs Levels 2 and 3 -- Repair escrows are administered by

HUD Asset Management staff.

  • Lenders should check with borrowers periodically to ensure repairs are
  • n-schedule and draws processed.
  • The Pre-Con for a 223f greatly helps everyone get clear on the process.

12

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5/31/2018 7

Phoenix, AZ

13

Working with HUD -- Tips

  • Communicate frequently esp. on complex and Work Load

Sharing deals.

  • Work with HUD UW/POC, and feel free to elevate to

management when warranted.

  • Minimize late changes (pencils down).
  • Emails – Put request in Subject Line.
  • HUD considers residents’ perspective. This helps inform

Relocation plans, flood plains Evac plans, etc.

  • Be fully responsive to requests.
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5/31/2018 8

Lone Mt. Clubhouse

Lone Mt. Clubhouse

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5/31/2018 9

Lone Mt. Pool For more information:

Contact:

  • Larry Fergison

Chief, Tech Specialist Branch San Francisco Production 415-489-6618 Laurence.J.Fergison@hud.gov

  • Tim Sovold

Chief, Tech Specialist Branch Denver Production 303-839-2617 Tim.Sovold@hud.gov

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5/31/2018 1 May 31, 2018

James Conner EMAD Field Director – HUD Region VIII

Economic and Market Analysis Division (EMAD) Economic and Market Analysis Division (EMAD)

Rocky Mountain Region

Economic and Housing Market Conditions

Rocky Mountain Region

Economic and Housing Market Conditions

  • The region’s economy has expanded for the past 8

years, and growth accelerated in 1st quarter 2018.

  • Nonfarm payrolls increased by nearly 122,000 jobs,
  • r 2.2%, up from a 1.7% increase a year ago.
  • Growth was strong in the construction, tourism,

business services, and transportation industries.

  • The energy industry is expanding, after losing jobs

from 2015 to 2017, but payroll losses continued in some energy-producing areas in 1st quarter 2018.

  • The region’s economy has expanded for the past 8

years, and growth accelerated in 1st quarter 2018.

  • Nonfarm payrolls increased by nearly 122,000 jobs,
  • r 2.2%, up from a 1.7% increase a year ago.
  • Growth was strong in the construction, tourism,

business services, and transportation industries.

  • The energy industry is expanding, after losing jobs

from 2015 to 2017, but payroll losses continued in some energy-producing areas in 1st quarter 2018.

Economy: Economy:

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5/31/2018 2

Nonfarm Payroll Growth

1st quarter 2018, change from a year ago

  • 1.5%
  • 1.0%
  • 0.5%

0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% U.S. Rocky Mountain Region Colorado Montana North Dakota South Dakota Utah Wyoming

Job Growth by Sector

Rocky Mountain Region

5,000 10,000 15,000 20,000 25,000 Mining and Logging Construction Manufacturing Wholesale and Retail Trade Transportation and Utilities Information Financial Activities Professional and Business Services Education and Health Services Leisure and Hospitality Other Services Government

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5/31/2018 3

Energy Industry Trends

Rocky Mountain Region

50 100 150 200 250 300 350 400 20 40 60 80 100 120 140 160 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mining & logging payrolls - Region VIII (thousands) WTI oil spot price ($) Active drilling rigs - Region VIII (right) Sources: BLS (payrolls); U.S. Energy Information Administration (oil prices); Baker-Hughes, Inc. (rigs)

Unemployment Rates

0% 2% 4% 6% 8% 10% 12% Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 U.S. Region VIII

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5/31/2018 4

Unemployment Rates by State

0% 1% 2% 3% 4% 5% 6% 7% Colorado Montana North Dakota South Dakota Utah Wyoming 2016-Q1 2017-Q1 2018-Q1

  • Population growth slowed in the region from 2016

to 2017, but remained well above the national rate.

  • Despite a decline, net in-migration to the region

remained relatively strong, especially in Colorado.

  • Utah’s strong population growth is largely driven

by net natural increase (births minus deaths).

  • Growth was slower in Montana and South Dakota,

flat in North Dakota, and negative in Wyoming.

  • Population growth slowed in the region from 2016

to 2017, but remained well above the national rate.

  • Despite a decline, net in-migration to the region

remained relatively strong, especially in Colorado.

  • Utah’s strong population growth is largely driven

by net natural increase (births minus deaths).

  • Growth was slower in Montana and South Dakota,

flat in North Dakota, and negative in Wyoming.

Population Trends: Population Trends:

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5/31/2018 5

Population Trends

2015 2016 2017 2015-16 2016-17 2015-16 2016-17 United States 321,039,839 323,405,935 325,719,178 2,366,096 2,313,243 0.7% 0.7% Rocky Mountain Region 11,648,676 11,815,082 11,963,854 166,406 148,772 1.4% 1.3% Colorado 5,440,445 5,530,105 5,607,154 89,660 77,049 1.6% 1.4% Montana 1,028,317 1,038,656 1,050,493 10,339 11,837 1.0% 1.1% North Dakota 754,859 755,548 755,393 689

  • 155

0.1% 0.0% South Dakota 854,036 861,542 869,666 7,506 8,124 0.9% 0.9% Utah 2,984,917 3,044,321 3,101,833 59,404 57,512 2.0% 1.9% Wyoming 586,102 584,910 579,315

  • 1,192
  • 5,595
  • 0.2%
  • 1.0%

Population Estimate (as of July 1) Change Percentage Change

  • Sales demand continues to strengthen, fueled by

net in-migration and recent income gains.

  • Market conditions are tight or slightly tight in most
  • f the region—especially in the lower price ranges.
  • The number of active for-sale home listings is very

low in many metros (less than a 2-month supply).

  • First quarter 2018 year-over-year price gains were

as high as 11% in some metro areas in the region.

  • Sales demand continues to strengthen, fueled by

net in-migration and recent income gains.

  • Market conditions are tight or slightly tight in most
  • f the region—especially in the lower price ranges.
  • The number of active for-sale home listings is very

low in many metros (less than a 2-month supply).

  • First quarter 2018 year-over-year price gains were

as high as 11% in some metro areas in the region.

Home Sales Market: Home Sales Market:

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5/31/2018 6

Home Sales Market Conditions

Single-Family Permitting

5,000 10,000 15,000 20,000 25,000 Colorado Montana North Dakota South Dakota Utah Wyoming Mar-16 Mar-17 Mar-18 12 months ending:

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5/31/2018 7

  • Population and household growth continue to

support demand; new units are being absorbed…

  • …however, deliveries slightly outpacing absorption

have led to softer market conditions in most areas.

  • Construction has been very strong the past 2 years

in much of the region—especially Colorado and Utah.

  • Supply in the development pipeline remains elevated,

particularly Colorado and Utah metro areas.

  • Population and household growth continue to

support demand; new units are being absorbed…

  • …however, deliveries slightly outpacing absorption

have led to softer market conditions in most areas.

  • Construction has been very strong the past 2 years

in much of the region—especially Colorado and Utah.

  • Supply in the development pipeline remains elevated,

particularly Colorado and Utah metro areas.

Apartment Market: Apartment Market:

Apartment Market Conditions

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5/31/2018 8

Multifamily Units Permitted

4,000 8,000 12,000 16,000 20,000 Colorado Montana North Dakota South Dakota Utah Wyoming Mar-16 Mar-17 Mar-18 12 months ending:

Completions Have Slowed

Denver Metropolitan Area

5,000 10,000 15,000 20,000 25,000 30,000 35,000 2009 2010 2011 2012 2013 2014 2015 2016 2017 Under construction Completed Source: Apartment Insights

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5/31/2018 9

Rocky Mountain Region

Economy and Housing Markets

Rocky Mountain Region

Economy and Housing Markets

EMAD data and resources at HUD User

https://www.huduser.gov/ U.S. Housing Market Conditions—Quarterly Regional Reports

Current housing market conditions in each of the 10 HUD regions https://www.huduser.gov/portal/ushmc/home.html#regional_map

U.S. Housing Market Conditions—Housing Market Profiles Recent trends and current conditions (metropolitan areas) https://www.huduser.gov/portal/ushmc/profile_archive.html Comprehensive Housing Market Analysis Reports

More detailed metropolitan area reports, with historic trends and forecasts https://www.huduser.gov/portal/ushmc/chma_archive.html

Market At A Glance (MAAG) Reports

Regional, state, county, and MSA data on economy, population, and housing https://www.huduser.gov/portal/ushmc/mag.html

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5/31/2018 10

EMAD Region VIII

Contacts

James Conner – Field Director James.H.Conner@hud.gov Katharine Jones – Field Economist Katharine.Jones@hud.gov Antonio Purcell de Ogenio – Field Economist Antonio.F.PurcellDeOgenio@hud.gov

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5/31/2018 1

HUD CNA E-TOOL UPDATE

PREPARED BY MEAGAN RECKER

CNA E-TOOL: HOW IT WORKS

Submission Portal Reviewer Tool

Thursday, May 31, 2018 PREPARED BY MEAGAN RECKER

Validation Engine

  • Flags

Assessment Tool

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5/31/2018 2

CNA E-TOOL: SYSTEM SHORTFALLS

Thursday, May 31, 2018 PREPARED BY MEAGAN RECKER

  • Each Submission creates a NEW Assessment.
  • Flag notes and attachments from prior submissions will not carry over into the new

submission.

  • Lender must reenter all flag responses and attach all required attachments on

each submission, as the final approved submission is the only one that will be saved in the system.

  • System does not generate notification for HUD users.
  • Branch Chiefs are not notified when a CNA is submitted.
  • Reviewer are not notified when CNA is assigned to them.
  • When resubmitting a CNA, after the original was returned, HUD recommends

emailing the underwriter to let them know the revised CNA has been submitted.

CNA E-TOOL: SYSTEM SHORTFALLS

Thursday, May 31, 2018 PREPARED BY MEAGAN RECKER

  • Replacement Schedule will shift at the change in the calendar year.
  • In the CNA, components are given an install date (current year for NC).
  • In the Financial Schedule, Year 1 is the year the CNA was submitted +1.
  • Ensure install date of new components is the year the CNA will be submitted. If

resubmitting a CNA originally submitted the prior calendar year , update the install dates for new components to reflect the current calendar year.

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5/31/2018 3

CNA E-TOOL: COMMON ISSUES

Thursday, May 31, 2018 PREPARED BY MEAGAN RECKER

  • Flags responses are not sufficient.
  • Flag notes issue has been corrected. Work-around published by HQ should no

longer be necessary.

  • Responses to flags should include a detailed explanation of the flags

acceptability.

  • Including specifics related to the flag will ensure an efficient review by HUD.
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5/31/2018 4

CNA E-TOOL: COMMON ISSUES

Thursday, May 31, 2018 PREPARED BY MEAGAN RECKER

  • Some flags may be generated due to error in the Assessment Tool.
  • Example: Formula to determine if FHA applies to a building only references

Year Built, Occupancy Date, and Building Permit date, not building type.

  • In Excel File, Building Type should be “Rowhouse/Townhouse”
  • In Excel File, Unit Type ID should include “TH” to indicate it is townhouse style.

CNA E-TOOL: COMMON ISSUES

Thursday, May 31, 2018 PREPARED BY MEAGAN RECKER

  • Attachments are missing or insufficient.
  • MAP Guide Appendix 5G, Section VII. D. 2. list attachments required.
  • Some requirements have been suspended until further notice.
  • SEDI or SEP is not required unless project is requesting Green MIP Reduction.
  • Borrower’s chart of accounts is not required.
  • Most frequent attachment deficiencies:
  • Statement of Qualifications of needs assessor. Qualifications need to be for the

person completing the assessment and listed under the Assessor role in the e-Tool.

  • Third-party certifications for the needs assessor.
  • Annotated photography showing all need categories.
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SLIDE 34

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CNA E-TOOL: COMMON ISSUES

Thursday, May 31, 2018 PREPARED BY MEAGAN RECKER

  • Component Schedule does not include all capital items at the

property.

  • Components should include all capital replacement items at the property,

whether they will be replaced during the estimate period or not.

CNA E-TOOL: COMMON ISSUES

Thursday, May 31, 2018 PREPARED BY MEAGAN RECKER

  • Reserve for Replacement (RfR) deposits are insufficient.
  • Financial Schedule does not meet minimum balance during Years 1 – 10.
  • Double check Ending Balance vs. Required Minimum.
  • Financial Schedule fails to meet HUD requirements when tested in RfR Financial

Factors Tool v2

  • Recommending using this tool to test deposits.
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SLIDE 35

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CNA E-TOOL: RESOURCES

Thursday, May 31, 2018 PREPARED BY MEAGAN RECKER

https://www.hud.gov/program_offices/housing/mfh/CNA

QUESTIONS?

Thursday, May 31, 2018 PREPARED BY MEAGAN RECKER

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SLIDE 36

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Asset Management and the Underwriting Process

HUD Industry Update Meeting Multifamily West Region Thursday May 31, 2018 Multifamily West Region Eileen Hearty, Asset Management Division, Denver Satellite Office

Asset Management Servicing

2

San Francisco: Alaska, California, Hawaii, Idaho, Nevada, Oregon Denver: Arizona, Colorado, Montana, North Dakota, South Dakota, Utah, Washington, Wyoming

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SLIDE 37

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Refinance Proposals

Involve your Account Executive when…

  • There is an existing FHA loan

– Your AE will be assisting HQ with the prepayment process – 9807s are submitted to MFIOBTerminationApprovals@hud.gov – Section 202 prepayment requests start with the AE

  • There is a Section 8 contract

– New 20-year contract – Option One Mark-Up-To-Market – Chapter 15

  • Is there an ownership change with the refinance?

– HAP Assignment may also be necessary

3

Who Is Your Account Executive?

https://www.hud.gov/states/shared/working/west/mf/ownmgmt/ae

4

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Asset Management Review

In addition to providing feedback on the application to the Underwriter, Account Executives determine the acceptability of the Agent. This includes reviewing:

  • Resume, experience, staffing, etc.
  • Previous Participation APPS / form HUD 2530
  • Management Entity Profile, form HUD-9832
  • Management Certification, form HUD-9839
  • Management Plan
  • Management Agreement

– Required HUD clauses: Management Agent Handbook 4381.5, Chapt. 2

5

Asset Management Handoff

The Account Executive…

  • Conducts a Pre-Occupancy Conference
  • Updates systems

– Accurate information is critical

  • Reviews Monthly Accounting Reports (MARS)
  • Administers Escrows

– IOD – Non-critical Repairs

Submit to SF.Incoming@hud.gov or Den.Incoming@hud.gov

6

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SLIDE 39

5/31/2018 4

For more information: