Revised Requirements for Project Capital Needs Assessments, Estimated Reserves for Replacements

On November 21, 2012, U.S. Department of Housing and Urban Development (HUD) issued Mortgagee Letter 2012-25 to all mortgagees, owners & agents and due diligence providers. 

Mark English, E & A Team, Inc., gives guidance on the Mortgagee Letter. "If you are refinancing an existing apartment with HUD mortgage insurance, the new HUD Mortgagee letter 2012-25 issued on November 21, 2012 applies to:

  • All applications for mortgage insurance under the FHA Multifamily Housing Programs;
  • All 10 year PCNA updates for existing insured properties; and
  • All PCNA's required by the Office of Mutlifamily Housing except those required for restructuring of assisted housing projects under the Market-to-Market program.

The requirements for a new PCNA every 10 years now applies to all new applications for insurance for apartment properties."

Violations of any Federal, State, or Local multifamily housing accessibility requirement is considered a "critical error" and must be addressed by a "corrective action plan" with retrofits of noncompliant elements to be completed within 6-12 months.

Click here to view the Mortgagee Letter. 

We would like to thank Mark English wih E & A Team, Inc. for contributing this article.  http://eandateam.com

Posted in: Fair Housing, HUD