Section 8 Housing Assistance Payment
Exhibit III-36"HAP" Contract Review Sheet
SECTION 8
HOUSING ASSISTANCE PAYMENTS "HAP" CONTRACT
REVIEW SHEET
HAP CONTRACT NO.(S) ______
I.Lender Review (Pre-Commitment): (to be completed by Lender)
1.Name of Borrower:
2.Name and Location of Property:
3.Existing Financing:
Describe type of existing financing, for example, FHA-insured, tax-exempt bonds, issuer of bonds, type of bonds, amount and interest rate of existing loan or loans:
4.Proposed Transaction:
Attach relevant section of TRA summary describing proposed financing.
a.Name and address of HAP Contract administrator:______
______
5.Term of proposed loan: _____ years
Fully amortizing loan: Yes ______No ______
6.Is the maturity date of proposed loan prior to the date of the
termination of the HAP Contract(s)? Yes ______No ______
If the HAP Contract(s) will expire prior to the maturity date of the proposed loan how will the loan underwrite without HAP payments?
7.Amount of proposed loan (or credit enhanced transaction): $______
8.Are residual receipts to be distributed?Yes ______No ______
a.Has HUD consent to distributing residual receipts been provided?
Yes ______No ______
9.If debt that required the maintenance of Replacement Reserves is being retired or refinanced, will the existing reserves remain with the property as reserves?
Yes ______No ______
If no, describe how the proposed replacement reserve schedule for this financing will be sufficient to cover long term physical needs: ______
______
______
10.Rent Restabilization Reserve
A Rent Restabilization Reserve is required under Part III, Chapter 12 unless the loan is fully amortizing over the life of the Section 8 Contract.
Is there excess cash flow generated by the HAP contract rents that can be used to fund this reserve? Yes ______No ______
Is there existing subordinate debt that will remain? Yes ______No ______
If the subordinate debt is paid through residual receipts will the subordinate loan documents allow the Rent Restabilization Reserve to be funded prior to the calculation of the residual receipts? Yes ______No ______
11.Waiver Required
Is the proposed loan amount underwritten using the lesser of market, HAP, or LIHTC rents?
Yes ______No ______
If no, attach a waiver request documenting the basis for the proposed waiver.
12.Comparable Market Rents (MR):
1 BR
2 BR
3 BR
4 BR
Fannie Mae DUS GuidePage 1
01/07/02
Section 8 Housing Assistance Payment
Exhibit III-36"HAP" Contract Review Sheet
Source of comparable MR data:
Lender's market survey:____
Third party market study:____
Third party appraisal:____
13.Current HAP Contract rents:
1 BRpercent above MR %
2 BRpercent above MR %
3 BRpercent above MR %
4 BRpercent above MR %
14.Published Fair Market Rents (FMR) for the Section 8 Existing Program:
______1 BRpercent above HAP Contract rents: ______%
______2 BRpercent above HAP Contract rents: ______%
______3 BRpercent above HAP Contract rents: ______%
______4 BRpercent above HAP Contract rents:______%
Please note that if the current HAP Contract rents are in excess of 120% of the FMR, it is likely that the property will be subject to a comparability study by the HAP Contract administrator for future rent increases.
II.Legal Review: Pre-Commitment
Part A: HAP Review (to be completed by Lender and/or Lender's Counsel, and reviewed by Lender's Counsel)
1.Name of owner on HAP Contract:
a.Is name same as Borrower? Yes ______No ______
b.If no, was HAP transferred to Borrower and transfer
approved by HUD?Yes ______No ______
(If no, include HUD approval of transfer to
Borrower as a condition of HAP approval).
HAP Contract Number(s): ______
3.HAP Term and Funding (include information for each stage where applicable):
a.Total HAP term(s): _____ (years)
b.Original effective date for HAP Contract(s): _____
c.Effective date for subsequent stages: _____
d.Termination date of HAP Contract: _____
e.Number of years remaining: _____ (years)
f.Renewable every _____ years at option of:
Owner:____
Contract Administrator (other than HUD):____
HUD:____
Automatic:____
g.Next renewal date:
h.Is HAP funding subject to annual appropriations? Yes ____ No ____
4.Are all exhibits to HAP Contract attached?Yes ______No ______
If all exhibits are not attached describe missing exhibit(s). A waiver request documenting the basis for the missing exhibits must be submitted to the NAM.
5.Amendments to HAP Contract:Yes ______No ______
a.Number of amendments:____
b.Attached: Yes ______No ______
If amendments are not attached, describe missing amendments. A waiver request documenting the basis for the missing amendments must be submitted to the NAM.
6.Annual Rent Adjustments (Amendments to HAP should be checked):
Automatic adjustments:____
Cost based adjustments:____
Operating Cost Adjustment Factor (OCAF):______
7.Is HAP fully executed (for each stage where applicable)? Yes _____No ______
By HUD:____
By Contract Administrator:____
By Owner: ____
8.Does the unit mix meet HAP requirements? Yes ______No ______
Part B: Legal Approval/Requirements (to be completed by Lender's Counsel)
1.The following documents have been reviewed by Counsel in providing the responses below:
a.Housing Assistance Payments Contract(s) and regulatory agreements, together with all exhibits, amendments and modifications.
b.Schedule B Modifications to Multifamily Note (Section 8 HAP Contract) (Form 4160) (11/01)
c.Exhibit B Modifications to Instrument (Section 8 HAP Contract) (Form 4066) (11/01)
d.Assignment of Housing Assistance Payments Contract (Form 4519) (11/01), or Assignment of Housing Assistance Payments Contract (Credit Enhancement) (Form 4519-CE) (11/01)
e.UCC Financing Statements and Assignment
f.Consent to Assignment of HAP Contract as Security for FNMA Financing Form (Form 4536) (05/01), or Consent to Assignment of HAP Contract to FNMA as Security for FNMA Credit Enhancement (Form 4536-CE) (11/01)
g.HUD approval of transfer of HAP Contract to Borrower.
h.Other Documents:
i.HUD consent to distribution of residual receipts:Yes ___ No ___
ii.Other HUD consents:Yes ___ No ___
h.Rent Restabilization Reserve and Security Agreement:Yes ___ No ___
i.Lender’s Review Sheet – Section 1 of Exhibit III-36Yes ___ No ___
2.The HAP Contract(s) and the related documents listed above are in acceptable form and do not contain non-standard terms which would have an adverse material effect on the loan.
Yes _____ No _____
______
______
______
3.The HAP Contract and related documents listed above are not in acceptable form because:
______
______
______
Additional comments (non-standard terms that should be noted based on the review):
______
By:______
(Lender's Counsel)
Date:______
Part C:Business Approval/Requirements (to be completed by Fannie Mae Multifamily)
The HAP Contract is approved for the transaction described in Section I, contingent upon the following conditions:
1.Execution of Exhibit B Modifications to Instrument (Section 8 HAP Contract) by Borrower.
2.Execution of Schedule B Modifications to Multifamily Note (Section 8 HAP Contract) by Borrower.
3.Execution of Assignment of HAP Contract by Borrower, Lender and Fannie Mae (where applicable).
4.Execution of UCC-3 (perfection of security interest in favor of Lender and assigned to Fannie Mae).
5.Execution of Consent to Assignment of HAP by Borrower, Lender and HUD or other Contract Administrator (as applicable)
6.Execution of Rent Restabilization and Security Agreement by Borrower.
7.HUD approval of transfer of HAP Contract to Borrower.
Yes_____ No_____
8.Other Documents:
a.HUD consent to distribution of residual receipts: Yes_____ No_____
b.Other HUD documents:Yes_____ No_____
9.Other conditions to the approval of the HAP Contract for the transaction:
______
______
______
By: ______
(National Account Manager)
Date: ______
Fannie Mae DUS GuidePage 1
01/07/02