HUD, Forensics and the 30-Year Old. Well, it appears National Loan Committee and select HUD offices may be intensely recommending parts of the pending PCNA Mortgagee Letter, and specifically forensic engineering studies. Over the past year we have seen HUD refinance transactions involving older structures become more involved, especially during a “cash-out”. However, only in select cases did we perform additional forensic engineering studies, and often only when recommended by the Needs Assessor. But this appears to be changing. Over the past 2-weeks we have sent out multiple bids for Multifamily Forensic Engineering Studies, focusing on the needs of the 30+ year old property. But it is not that simple, and is not a 1-study-fits-all scenario. These studies are specific to the property’s condition, construction, age, recent improvements, service contracts, and other factors which can contribute to a system’s remaining useful life. Some buildings just have stronger bones than others, for instance full brick/masonry construction. If you are considering bringing a 30+ year old to dance with HUD, you may want to give us a call. We were the original HUD MAP 3rd party consultant, and I have built a team of professionals with the knowledge, experience, and relationships necessary for successful navigation of the HUD multifamily programs.
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