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>> GOOD AFTERNOON. THANK YOU FOR JOINING US
TODAY ON OUR FIRST OF THREE TAX CREDIT PILOT PROGRAM
TRAINING SESSIONS. I WANTED TO INTRODUCE OUR
SPEAKERS TODAY. I'M DAN SULLIVAN, DEPUTY
DIRECTOR OF MULTI FAMILY 2 DEVELOPMENT HERE AT FHA IN
HUD HEADQUARTERS. JOINING ME TODAY ON OUR PANEL
IS LYNN WERLEY TO MY RIGHT, LYNN COORDINATES THE TAX
CREDIT PILOT AND LEADS OUR EFFORT DAY TO DAY IN THE
OPERATIONAL, AND IS KIND OF OUR GO-TO PERSON.
TO LYNN'S RIGHT IS MARGARET SALAZAR, MARGARET REALLY WAS
THE LEAD IN DEVELOPING THE PROGRAM INITIALLY, AND AS
WELL AS THE ROLES SHE FILLS AS A SENIOR ADVISER TO THE
DEPUTY ASSISTANT SECRETARY, AS LEADING OUR RAD EFFORTS.
TO MARGARET'S RIGHT IS JOHN BELL FROM OUR TECHNICAL
SUPPORT DIVISION. JOHN IS REALLY THE LEADER OF
WORKING ON OUR INFORMATION TECHNOLOGY AND THE DATA
TRANSFER FOR TO WHAT WE CALL IS THE WHEELBARROW AND WILL
BE WRAPPING UP OUR SESSION AT THE END OF THE NEXT TWO
HOURS. WE WANT TO WELCOME ALL OF
THOSE IN THE HUD OFFICES. OUR TRAINING REALLY IS
DIRECTED TO THE HUD STAFF, BOTH IN THE PILOTS AND
GENERALLY TO OUR PIPELINE PLATFORM.
BUT AS WELL, WE WANTED TO WELCOME THOSE LENDER PARTNERS
THAT ARE PARTICIPATING, AND I HOPE MANY OF YOU HAVE BEEN
ABLE TO JOIN IN WITH HUD STAFF AND WATCH THE SESSION
REMOTELY. >>> THE FIRST SLIDE WE WANT
TO TALK ABOUT IS REALLY THE POINT OF PILOT.
AND WHAT THE PLAN IS. THEN WE'LL TALK ABOUT PROGRAM
ELIGIBILITY AND A LITTLE BIT ABOUT WHO THE PEOPLE ARE.
CHALLENGES IN THE CAPITAL 3 MARKETS HAVE LIMITED THE
AVAILABILITY OF FINANCING, FOR BOTH MARKET RATE AND
AFFORDABLE HOUSING, MULTI FAMILY TRANSACTIONS,
CONSISTENT WITH OUR LONG TERM MISSION OF PROVIDING
LIQUIDITY AND A COUNTER CYCLICAL MARKET, FHA HAS
DRAMATICALLY INCREASED OUR PRODUCTION OVER THE LAST
SEVERAL YEARS, BOTH FOR MARKET RATE PROJECTS, AS WELL
AS AFFORDABLE HOUSING TRANSACTIONS.
THE TAX CREDIT PILOT IS AN IMPORTANT EFFORT AS WE HAVE
RAMPED UP PRODUCTION AND ANTICIPATE CONTINUED HIGH
VOLUME. TO MAKE FHA'S PROGRAMS WORK
MORE EFFECTIVELY WITH TAX CREDIT TRANSACTIONS AND TO
CLEAR SOME OF THE OBSTACLES THAT HAVE HISTORICALLY MADE
OUR PROGRAMS INFLEXIBLE OR DIFFICULT TO WORK WITH,
PARTICULARLY FROM A TIMING PERSPECTIVE, CONSISTENT WITH
THE DEPARTMENT'S VISION AND THE CONGRESSIONAL INTENT
EXPRESSED IN HERA, WE ARE REFINING THE MAP PROGRAM AND
MOVING TO AN UNDERWRITER-DRIVEN PROCESSING
SYSTEM IN ORDER TO MAKE FHA WORK BETTER IN TAX CREDIT
DEALS. AS IN THE MAP PROGRAM, THE
NEW MODEL REALLY ENVISIONS THE LENDER TAKING THE LEAD IN
PERFORMING THE DUE DILIGENCE AND UNDERWRITING AND RELYING
ON THE LENDERS TO REFLECT A ROBUST CREDIT ANALYSIS, NOT
JUST GETTING THE DEAL DONE IN A BROKER MODEL, BUT RATHER,
REALLY UNDERWRITING THE DEAL AUTHORIZE OILY AND ENSURING
THAT THE TRANSACTION 4 APPLICATIONS COMPLY WITH THE
PROGRAM REQUIREMENTS AND THAT WE CAN CLOSE THEM QUICKLY.
ASSUMING THE LENDER HAS DONE A GOOD JOB, HUD SHOULD BE
ABLE TO REVIEW THE APPLICATION, PACKAGE AND
ISSUE THE FIRM COMMITMENT IN A TIME FRAME THAT WORKS FOR
THE BORROWER AND THEIR NEEDS, AS WELL AS CONSISTENT WITH
THE TAX CREDIT PROGRAM TIME LINES.
THE PILOT PROGRAM ENHANCES THE BASIC MAP PROGRAM BY
GIVING AUTHORITY AND RESPONSIBILITY TO A
DESIGNATED UNDERWRITER IN PILOT HUD OFFICES WHO WILL
REVIEW THE ENTIRE APPLICATION AND THEN RELY ON TECHNICAL
ANALYSTS TO SUPPORT THEIR EFFORTS AS THEY NEED, OR NOT,
RATHER THAN THE TRADITIONAL TECHNICAL PROCESSING LINEAR
APPROACH FROM ONE DISCIPLINE TO ANOTHER.
THE DESIGNATED UNDERWRITER CAN RELY ON THOSE SAME
TECHNICAL EXPERTS AS NEEDED, BUT FOR LOW RISK TRANSACTIONS
OR WHERE THE LENDER HAS CLEARLY DONE THEIR HOME WORK
IN A GOOD DAY, AND THE TRANSACTION CLEARLY MEETS THE
PROGRAM REQUIREMENTS DESIGNATED UNDERWRITERS MAY
NOT NEED TO GET ALL OF THE TECHNICAL SPECIALISTS THROUGH
A PARTICULAR DEAL. IN ANY EVENT WE RELY ON THE
DESIGNATED UNDERWRITER TO GET THAT APPLICATION, SCREEN IT,
AND MAKE SURE IT GETS PROCESSED ON TILE AND IN A
WAY THAT MEETS THE BORROWER'S NEEDS, AS WELL AS MINIMIZES
RISK TO THE DEPARTMENT. OUR PLAN IS TO TRY THIS RISK
MANAGEMENT APPROACH, RATHER 5 THAN A PROCESSING AND
COMPLIANCE PERSPECTIVE, AND TO ROLL OUT THE MODEL TO A
BROADER PLATFORM AND USE IT ON ULTIMATELY ALL OF OUR
TRANSACTIONS. BUT WE WANTED TO TRY IT ON
THE MISSION-DRIVEN, LOWER-RISK PILOT DEALS FIRST.
SO THAT DRIVES SOME OF THE PROGRAM ELIGIBILITY.
THE PILOT PROGRAM PURPOSELY SET ELIGIBILITY THRESHOLDS IN
A WAY THAT MINIMIZES RISK TO THE DEPARTMENT, AND AT THE
SAME TIME, FACILITATES THE MOST EXPEDITIOUS PROCESSING.
THE INTENT OF THE PILOT IS NOT TO DO EVERY TAX CREDIT
DEAL POSSIBLE, BUT RATHER, TO DO THOSE THAT MEET THE
PROGRAM, AN AFTER EVALUATING THE RESULTS, WILL TRY TO
EXPAND THAT MODEL MORE BROADLY TO ALL TAX CREDIT
DEALS, AND THEN INDEED, FOR THE ENTIRE PROGRAM.
KEY FEATURES OF THE TAX CREDIT PILOT ARE: ONE, IT'S
LIMITED TO 223F APPLICATIONS. SO IF THE PROJECT NEEDS
SUBSTANTIAL REHAB OR IS A NEW CONSTRUCTION TRANSACTION,
THAT WOULD NOT BE ELIGIBLE FOR THE PILOT.
REPAIRS HAVE EXPANDED IN WHAT THEY CAN BE DONE, BEFORE
REQUIRING A SUBSTANTIAL REHAB UP TO $40,000 PER UNIT,
REGARDLESS OF THE LOCATION OF THE PROJECT.
HOWEVER, ONLY THE AMOUNT LIMITED IN THE PROGRAM CAN BE
FUNDED BY MORTGAGE PROCEEDS. SO DEPENDING ON THE LOCATION
OF THE PROJECT AND THE HIGH COST FACTOR, THE AMOUNT OF
223F PROGRAM MORTGAGE PROCEEDS IS STILL LIMITED TO
BETWEEN $9,617,500 PER UNIT 6 OF REHAB.
ADDITIONAL REPAIRS ABOVE THAT AMOUNT CAN BE FUNDED THROUGH
TAX CREDIT EQUITY, SYNDICATION PROCEEDS, OR
OTHER PUBLIC FUNDS OR OTHER EQUITY SOURCES, BUT NOT
TRIGGER A SUBSTANTIAL REHAB AND INELIGIBLE FOR THE PILOT
SO LONG AS THE TOTAL COST OF THE REPAIRS REMAINS LESS THAN
$40,000 SO LONG AS THE MORTGAGEABLE PROCEEDS ONLY
FUND WITHIN THE 223F LIMITS. THE OTHER CONSTRAINT WOULD BE
IF TWO MAJOR SYSTEMS NEED TO BE SUBSTANTIALLY
REHABILITATED, THAT IS THE REPLACEMENT COST OF ANY MAJOR
SYSTEM NEEDS WORK THAT'S GREATER THAN 50 PERCENT, OF
THAT COST, THEN THAT WOULD BE A SUBSTANTIAL REHAB, AND THE
PROJECT WOULD NOT BE ELIGIBLE FOR THE PILOT.
WE WOULD, OF COURSE, WELCOME SUCH DEALS AS A 221D4
APPLICATION AND TRY TO PROCESS EXPEDITIOUSLY.
BUT TECHNICALLY, THEY WOULD NOT BE PART OF THE PILOT.
THE THIRD REQUIREMENT IS THAT PROJECTS HAVE TO BE EITHER
90 PERCENT OR GREATER PROJECT-BASED SECTION EIGHT
OR A PROJECT CONSTRUCTED WITHIN THE LAST THREE YEARS
IN NEEDING A SOURCE OF PERMANENT FINANCING TO TAKE
OUT THE CONSTRUCTION LOAN OR BRIDGE FINANCING.
AND THEN THIRDLY, IT MIGHT BE A TAX CREDIT PILOT AT THE END
OF ITS COMPLIANCE PERIOD THAT IS RESYNDICATING AND BRINGING
IN NEW TAX CREDITS, WHETHER OR NOT IT HAS SECTION EIGHT
OR NOT. SO THOSE ARE THE THREE TYPES
OF TRANSACTIONS. 7 I SHOULD MENTION ONE OTHER
REQUIREMENT. IF THE PROJECT DOES NOT HAVE
PROJECT-BASED SECTION EIGHT AND IS TAX CREDIT DEAL WITH
THE RENTS, THE ACHIEVABLE TAX CREDIT RENTS MUST BE AT LEAST
10 PERCENT BELOW MARKET. WE RECOGNIZE THAT LIMITS SOME
AREAS OF THE COUNTRY FOR DEALS WITHOUT PROJECT-BASED
SECTION EIGHT, BUT THE IDEA IS, AGAIN, TO MINIMIZE RISK
BY DOING THE LOW RISK TRANSACTIONS WHERE THERE'S A
CLEAR AFFORDABILITY ADVANTAGE.
WE EXPECT THE PROGRAM PARTICIPANTS TO INCLUDE
EXPERIENCED TAX CREDIT DEVELOPERS WITH CLEAN CREDIT
HISTORIES. WE HAVE RESTRICTED THE LENDER
BASE TO A LIMITED NUMBER OF LENDERS, AND HUD STAFF IN
SPECIFIC OFFICES THAT WE'VE IDENTIFIED WITH BOTH CAPACITY
AND QUALIFIED STAFF, LED BY DESIGNATED UNDERWRITERS.
WE'LL TALK MORE ABOUT THE SPECIFICS IN THE -- AND GO TO
THE NEXT SLIDE, PLEASE. WE'LL TALK MORE ABOUT THE
SPECIFICS IN THE REMAINING SESSIONS.
BY WAY OF CLARIFICATION WE WILL TALK MORE ABOUT
SPECIFICS IN THE REMAINING SESSIONS AND NEXT, THIS
COMING FRIDAY, NOVEMBER 16TH, FROM 1:00 TO 3:00 P.M.
EASTERN STANDARD TIME, WE'LL BE HAVING OUR SECOND SESSION
REALLY DIVING MORE DEEPLY INTO SOME OF THE TECHNICAL
ANALYSES. AND THE THIRD SESSION WILL BE
MONDAY, NEXT MONDAY, AND AGAIN, FROM 1:00 P.M. TO 3:00
P.M. EASTERN STANDARD TIME 8 WHERE WE'LL BE TALKING ABOUT
SOME OF THE SPECIFIC AFFORDABILITY FEATURES, AS
WELL AS COORDINATION WITH ASSET MANAGEMENT AND OGC
THROUGH THE CLOSING PROCESS. BUT BY WAY OF INTRODUCTION I
DID WANT TO MENTION A COUPLE OF POLICY CLARIFICATIONS AND
CHANGES THAT WE'VE MADE SINCE INITIALLY ROLLING OUT THE
PROJECT. BASED ON FEED BACK FROM HUD
OFFICES, HUD STAFF AND THE INDUSTRY, FIRST POINT I
WANTED TO DISCUSS IS JUST MENTION THAT WE'VE GIVEN SOME
TECHNICAL DIRECTION IN THE DEVELOPMENT OF CAP RATE
DERIVATION FOR THOSE PILOT PROJECTS WHICH HAVE A
PROJECT-BASED SECTION EIGHT CONTRACT.
FOR THOSE CONTRACTS WE WILL ALLOW RECOGNITION OF
FAVORABLE FINANCING IN THE IMPACT OF THE SUBSIDY IN
DEVELOPING THE CAP RATE FOR THE VALUE APPROACH ON THE
223F PROGRAM. THAT AUTHORITY DOES NOT
EXTEND TO OTHER DEALS OUTSIDE OF THE PILOT.
WE HAVE ALSO CLARIFIED THAT PROJECT THAT DO NOT HAVE
SECTION EIGHT NEED TO HAVE, AS I MENTIONED EARLIER, THEIR
RENTS BELOW MARKET BUT WE'VE CLARIFIED IT'S NOT THE
CEILING RENTS AVAILABLE UNDER THE TAX CREDIT PROGRAM, BUT
RATHER, WHAT THEY'RE ACTUALLY ACHIEVING.
WE'VE PROVIDED SOME EXAMPLES IN OUR PROCESSING GUIDANCE
AND FA2S, AND IT'S A LITTLE BIT TECHNICAL, BUT BASICALLY,
THE IMPACT OF THIS IS TO MAKE MORE DEALS ELIGIBLE BY
LOWERING THE THRESHOLD OF HOW 9 MUCH AFFORDABILITY IS NEEDED.
THIRD CHANGE, WE'VE EXPANDED THE MAXIMUM TENANT RELOCATION
PERIOD FROM 14 TO 30 DAYS. FINALLY, WE'VE EXPANDED THE
SCOPE OF THE PILOT, BOTH BY GEOGRAPHY AND PLAN ON
EXPANDING IT BY ELIGIBLE LENDERS.
WHEN WE INITIALLY ROLLED OUT THE TAX CREDIT PILOT, IT WAS
ONLY AVAILABLE IN FOUR MULTI FAMILY HUBS.
WE'VE NOW EXPANDED THE NUMBER OF PILOT PROCESSING HUBS TO
NINE TOTAL MULTI FAMILY HUBS OUT OF OUR 17 TOTAL, AND
WE'VE ALLOWED THE GEOGRAPHY TO INCLUDE THE ENTIRE
COUNTRY, SO NO MATTER WHERE A PROJECT IS, IT CAN COME INTO
THE PILOT AND THEN IT WILL EITHER BE PROCESSED BY THE
MULTI FAMILY HUD IN WHICH IT HAS JURISDICTION IF THAT HUD
IS A PILOT. IF NOT IT WILL BE ASSIGNED TO
ONE OF THE PROCESSING HUIES AND MS. WERLEY WILL SPEAK TO
THAT IN A MINUTE. WE'LL BE HEARING MORE ABOUT
OTHER TECHNICAL CHANGES AND ASPECTS TO THE PROGRAM OVER
THE NEXT THREE SESSIONS BUT FIRST I WANTED TO MENTION,
JUST RECOGNIZE, AS I MENTIONED, THAT WE'LL HAVE
DESIGNATED UNDERWRITERS IN EACH OF THE PROCESSING HUBS
AND THEIR BACKUPS. WE'LL HAVE ONE BACKUP, AND
THOSE FOLKS ARE THE KEY POINT OF CONTACT AND WHO WILL BE
RESPONSIBLE FOR BEING THE LIAISON WITH LENDERS AND
MAKING SURE THE DEALS GET PROCESSED ON TIME.
THEY'VE BEEN HAND PICKED AND RESTRICTED TO THE DEPARTMENT
WHOM HAS THE EXPERIENCED 10 PEOPLE AND GIVEN THE SPACE
WHO HAVE THE CAPACITY TO PROCESS THESE HUD DEALS.
LYNN WERLEY SCHEDULES OUR OPERATION DAY TO DAY,
SCHEDULING LOAN COMMITTEE, PROCESSING QUESTIONS AND
BRINGING TOGETHER VARIOUS PEOPLE IN THE DEPARTMENT WHEN
WE HAVE TO DECIDE TO MAKE DECISIONS ABOUT POLICY
CHANGES AND SO ON. SO I'M GOING TO ASK LYNN TO
TAKE THE NEXT SEGMENT AND TURN IT OVER TO YOU.
>> THANK YOU. >> THIS WILL DESCRIBE THE
APPLICATION THAT WE WILL BE USING FOR EXPEDITED
PROCESSING FOR THE PROJECTS. WE'VE BROKEN THE PROCESS INTO
-- PARDON ME. WE NEED --
> WE WILL HAVE LYNN WERLEY'S SLIDES IN A MINUTE.
>> THE PROCESS IS BROKEN INTO THREE PARTS, THE APPLICATION
AND PREAPPLICATION STAGE, SECONDLY THE UNDERWRITING
STAGE AND FINALLY APPROVALS AND CLOSING PHASE.
SO IN A MINUTE WE'LL BE LOOKING AT CHARTS THAT
EXPLAIN THOSE IN A LITTLE MORE DETAIL.
I THINK I'LL WAIT ONE MINUTE FOR THE CHART BECAUSE IT WILL
BE HELPFUL TO DESCRIBE IT. THANK YOU.
ONE MORE. GREAT.
JUST A QUICK ORIENTATION TO THE LAYOUT OF THE CHART.
FIRST OF ALL, IT HAS A COLOR KEY.
AND ALTHOUGH EVERYONE HAS TO BE INVOLVED, IN MOST PHASES
OF THE PROCESS, THE BLUE AREAS REPRESENT PRIMARILY
ACTIVITIES BY THE LENDER, AND 11 THE TAN SECTIONS REPRESENT
ACTIVITIES FOCUSED AT HUD, AND GREEN REPRESENTS AREAS
THAT REQUIRE ACTIVITY ON BOTH PARTS.
THE LEFT COLUMN PROVIDES A SERIES OF SUGGESTED TIME
FRAMES, AND THESE ARE BASICALLY THE TIMES THAT WE
THINK WILL TYPICALLY TAKE TO COMPLETE THE STAGE IN
QUESTION, HOWEVER, WE RECOGNIZE THAT PROJECTS WILL
VARY IN TERMS OF THEIR DEMANDS FOR TIME AT VARIOUS
POINTS IN THE PROCESS, SO IT WILL ALWAYS BE DIFFERENT, AND
THE ONLY THING THAT'S REALLY, REALLY IMPORTANT IS THAT WE
COMPLETE THE PROCESS IN THE 120 DAYTIME FRAME.
THE COLUMN ON THE FAR RIGHT PROVIDES A NUMBER OF TOOLS
AND DOCUMENTS. THESE ARE BOTH FOR THE USE OF
THE HUD STAFF AND FOR THE USE OF THE LENDERS AT VARIOUS
STAGES IN THE PROCESS. AND THEN, OF COURSE, THE
CENTRAL COLUMN LISTS THE PROCESS STEPS, AND THOSE ARE
WHAT I WILL BE FOCUSING ON FROM NOW ON.
SO THE FIRST STEP IN THE PROCESS IS WHEN A LENDER HAS
A PROJECT, AND FIRST CALLS A STAFF PERSON IN MULTI FAMILY
DEVELOPMENT IN THE HUB OFFICE OF THAT PROJECT TO REQUEST
THE CONCEPT MEETING. AND THE CONCEPT MEETING IS A
CRITICAL PART OF THE PROCESS, BECAUSE IT IS THE POINT AT
THIS WE CAN MAKE A PRELIMINARY DETERMINATION
THAT THE PROJECT IS ELIGIBLE FOR THE CREDIT -- OR FOR THE
PILOT PROJECT. FOR THIS PURPOSE, WE HAVE AN
ELIGIBILITY CHECKLIST WHICH 12 INCLUDES MOST OF THE KEY
QUESTIONS THAT NEED TO BE ASKED TO REACH THAT
DETERMINATION. SO THAT'S THE PROCESS IN THE
CALL. THE CRITICAL OUTCOME IS THAT
DETERMINATION AND IF THE PROJECT PASSES THE LENDER
WILL BE INVITED TO SUBMIT A PILOT PROJECT APPLICATION AND
IF NOT, THE LENDER WILL BE REFERRED TO ANOTHER FHA
PROGRAM THAT MIGHT WORK BETTER.
>> THE NEXT STAGE IS THE HAPPEN RENEWAL INCREASE
REQUEST, RENT INCREASE REQUEST AND WAIVER REQUEST
AND ANY WAIVERS THAT NEED TO BE REQUIRED.
THESE ARE ASSET MANAGEMENT'S, ACTIVITIES, AND THE IRON
THEY'RE BROUGHT IN HERE IS THEY HAVE TO BE DONE WELL
BEFORE THE APPLICATION IS ACTUALLY SUBMITTED, BECAUSE
THEY DO TAKE QUITE A WHILE AND WE DON'T WANT THOSE TO BE
A REASON FOR DELAYS IN THE PROJECT PROCESSSING.
THIS PERIOD ALSO REPRESENTS THE TIME DURING WHICH LENDERS
ARE BUSY PUTTING THEIR APPLICATIONS TOGETHER AND
DOING SOME OF THE STUDIES AND SO FORTH THAT ARE REQUIRED.
THE NEXT STEP IS THE ACTUAL SUBMISSION BY THE LENDER, AND
THAT'S FOLLOWED BY A PRELIMINARY -- OR THE
PRELIMINARY REVIEW OF THE DESIGNATED UNDERWRITERS IN
THE PILOT HUBS THAT WILL BE OVERSEEING THE PROCESS FROM
THERE ON. THEY WILL, AGAIN, CONFIRM THE
ELIGIBILITY AND COMPLETENESS OF THE APPLICATION AND
HOPEFULLY IDENTIFY THE 13 PRELIMINARY WAY, THE PRIMARY
RISK FACTORS IN THE PROJECT. AND THAT PROCESS SHOULD BE
DONE WITH ABOUT FIVE DAYS. WE'VE REALLY COMPRESSED THE
EARLY STEPS SO THAT WE'RE NOT TAKING TOO MUCH TIME UP FRONT
AND CAN GET DEEP INTO THE PROCESSING FAIRLY QUICKLY.
AT THIS POINT, TOO, WHEN THE APPLICATION IS DETERMINED TO
BE COMPLETE, THAT STARTS THE 120 DAY CLOCK FOR PROCESSING.
>> FINALLY IN CONJUNCTION WITH THIS SLIDE I JUST WANT
TO NOTE SOME CHANGES THAT HAVE BEEN MADE TO OUR
PROCESSING RECENTLY, AND THESE CHANGES DON'T EVEN SHOW
UP ON THIS PROCESS CHART BECAUSE THEY'RE AT A LOWER
LEVEL OR HIGHER LEVEL OF DETAIL.
THEY'RE BASICALLY CONCENTRATED IN THE
PREAPPLICATION PHASE AND THEY AFFECT ONLY THOSE PROJECTS
THAT DAN MENTIONED THAT ARE NOT LOCATED WITHIN THE
JURISDICTIONS OF OUR NINE PILOT HUB OFFICES.
WE'LL GO INTO THOSE LATER. BASICALLY THEY REQUIRE MORE
COORDINATION BETWEEN WHERE THE HUBS ORIGINATE IN AND THE
PILOT HUBS THAT WILL BE DOING THE PROCESSING OF THE
PROJECTS. SO THIS IS THE SECOND PRIMARY
STEP, AND IT IS THE UNDERWRITING PROCESS.
IT'S EXPECTED TO LAST ABOUT 45 DAYS.
AND THE WORK IS REALLY FOCUSES WITH THE DESIGNATED
UNDERWRITER AND IT'S NOT ACTUALLY DONE BY THE
DESIGNATED UNDERWRITER, THEN MANAGED BY THAT PERSON.
THE STEPS INCLUDE THINGS LIKE 14 DATA ENTRY, INITIAL REVIEWS
OF PROJECTS, DISTRIBUTION OF DOCUMENTS.
SOME OF IT IS JUST SORT OF -- ORGANIZATIONAL THINGS IN THE
BEGINNING PERIOD. HOWEVER, TWO WEEKS INTO THE
UNDERWRITING PERIOD, WE HAVE A TICKUP CALL SCHEDULE.
IN FACT THERE ARE TWO CALLS AND I'LL BE DISCUSSING THEM
BECAUSE THEY BOTH APPEAR IN THAT PHASE.
IN THAT CALL, THE FIRST CALL IS REALLY INTENDED TO BRING
TOGETHER ALL OF THE HUD STAFF AT THE FIELD OFFICE WHO NEED
TO BE INVOLVED IN THE PROJECT, AND THE DESIGNATED
UNDERWRITER WILL HAVE DETERMINED WHO THOSE PEOPLE
ARE BASED ON SPECIFIC ASPECTS OF THE PROJECT IN THE
PRELIMINARY REVIEW. THE PURPOSE OF THAT MEETING
IS TO HIGHLIGHT ANY ISSUES THAT SEEM TO BE CROPPING UP,
AND TO MAKE PLANS TO COORDINATE THE STAFF EFFORT
FOR COMPLETION OF THE SUBSEQUENT STEPS.
THE NEXT PART OF THE REVIEW PROCESS IN THE UNDERWRITING
INCLUDES ALL OF THE TECHNICAL REVIEWS, SITE VISITS AND ALSO
THE OGC REVIEW OF ORGANIZATIONAL AND OTHER
DOCUMENTS. AND THEN TWO WEEKS AFTER THE
FIRST KICKOFF CALL, GIVE OR TAKE, OR WHENEVER IT'S
APPROPRIATE, THERE IS A SECOND CALL, CALLED THE
STATUS CALL, AND THIS IS CRITICAL, AND IT BEGINS TO
LOOK TOWARDS CLOSING. IT INCLUDES NOT JUST THE HUD
STAFF WHO ARE INVOLVED, BUT ALSO, THE LENDER, THE OWNER,
THEIR ATTORNEYS, IF THEY 15 CHOOSE TO BRING THEM, AND SO
FORTH. AND THE PURPOSE IS TO ENABLE
HUB COUNCIL TO RAISE ANY ISSUES THAT THEY HAVE
IDENTIFIED IN THE COURSE OF REVIEWING ALL OF THE
ORGANIZATION DOCUMENTS, AND SECONDARILY, TO CREATE A PLAN
AND A TIMELINE TO GET TO THE CLOSING PROCESS.
AND THE LAST STEP IS, OF COURSE, THE CLOSING
CHECKLIST. THE CLOSING PLAN, I'M SORRY.
SO -- THOUGH IS NOT THE RIGHT SLIDE.
I'M SORRY, THIS IS FINE. SO THE LAST STEP, OR THE LAST
PHASE OF THE PROCESS IS THE APPROVALS AND CLOSING PART OF
THE PROCESS. WE EXPECT THAT APPROVAL
SHOULD TAKE ONLY ABOUT 10 DAYS, AND IF ALL THE OTHER
STEPS REMAIN WITHIN THE SUGGESTED TIME FRAMES, THAT
WOULD LEAVE ABOUT 45-60 DAYS TO GET TO CLOSING AFTER THE
APPROVALS. IN THE APPROVAL PROCESS, THE
FIRST STEP IS FOR THE DESIGNATED UNDERWRITER TO
REPAIR -- OR PREPARE A RECOMMENDATION FOR THE
DIRECTOR OF THE HUB, AND SUBMIT THAT TO THE DIRECTOR.
AND IF THE DIRECTOR APPROVES THE PROJECT, THEN THE
DIRECTOR WOULD PASS THAT RECOMMENDATION ON TO THE LOAN
COMMITTEE. THE LOAN COMMITTEE IS
COMPRISED OF THE DESIGNATED UNDERWRITER AND HUB DIRECTOR
THAT THE PROJECT IS LOCATED IN, AS WELL AS A SENIOR MULTI
FAMILY DEVELOPMENT STAFF PERSON, SO THAT COMMITTEE IS
THE ONE THAT WOULD ACTUALLY 16 MAKE THE FINAL DECISION ON
THE APPROVALS OF THE PROJECT. AND IF THE PROJECT IS
APPROVED IN THAT PROCESS, THEN IT GOES ON AND THE FIRM
COMMITMENT IS PREPARED AND RELEASED AT THAT JUNCTION
YOU'RE. AND THAT BRINGS US TO
CLOSING, THE LAST STEP. AND AS I MENTIONED BEFORE,
DEPENDING ON HOW IT'S GOING ON, THERE SHOULD BE 45-60
DAYS TO COMPLETE THAT PROCESS.
AND I THINK ON THAT NOTE I'D LIKE TO OPEN IT UP TO
QUESTIONS. DO WE HAVE ANY E-MAILS
QUESTIONS? >> NO QUESTIONS!
>> WELL, IF THERE ARE NO QUESTIONS, LYNN, ANY OTHER
COMMENTS OR SHOULD WE GO ON TO THE MORE DETAILED
DISCUSSION OF THE PROCESSING GUIDE OVERVIEW?
>> YES, THANK YOU. SO THIS IS A -- A PROCESSING
GUIDE IS OUR PRIMARY DOCUMENT OF INFORMAL GUIDANCE AND IT
WAS PREPARED LAST APRIL WHEN THE PROGRAM WAS FIRST
STARTED. IT HAS JUST NOW BEEN UPDATED
AND THAT UPDATE WAS POSTED FRIDAY AND SO IT IS AVAILABLE
AT THIS POINT. I DO NEED TO CAUTION EVERYONE
THAT WE WERE PRESSED FOR TIME IN PREPARING THIS, IN TIME TO
GET IT OUT FOR THE FIRST TRAINING SESSION, SO IT IS
STILL IN DRAFT FORM AND WE'VE BEEN PUTTING FINISHING
TOUCHES ON IT LATER. THE GUIDE IS INTENDED FOR
USE, BOTH BY HUB STAFF AND BY THE LENDERS, SO IT
SPECIFICALLY ADDRESSES THE 17 TASK THAT BOTH GROUPS HAVE TO
DO. AND IT'S LIKE THE LAST
DISCUSSION, IT TRACKS THROUGH THE ENTIRE PROCESS OF
COMPLETING A PROJECT AND IS AVAILABLE FOR THAT PURPOSE,
GIVES DIRECTION IN PREPARING APPLICATIONS AND THAT SORT OF
THING, IN MORE DETAIL. I MENTIONED THAT WE HAD JUST
POSTED A NEW VERSION, AND I BELIEVE DAN MENTIONED THAT
THERE HAD BEEN SOME PROGRAMMATIC CHANGES THAT
YOU'RE PROBABLY FAMILIAR WITH AT THIS POINT.
THE CHANGES TO THE PROCESSING GUIDE WILL PARALLEL THOSE
CHANGES, I THINK. THE FIRST ONE IS THE PROGRAM
POLICY INTERPRETATIONS AND ADJUSTMENTS THAT WE HAD
ALREADY MADE AND DESCRIBED IN FAQS ARE NOW INCORPORATED
INTO THE PROCESSING GUIDE DOCUMENTS.
SO YOU NO LONGER HAVE TO GO TO THREE OR FOUR PLACES TO
FIND EVERYTHING THAT WE'VE JUST LAST SAID.
AND YOU'LL FIND THEM THERE IN THE GUIDE NOW.
SECONDLY, THERE'S A NEW SECTION ON FIELD COUNCIL AND
CLOSING NOTES THAT'S BEEN ADDED JUST TO PROVIDE MORE
DETAIL ON THE CLOSING PROCESS AND ON THE NEEDS OF OGC.
ONE OF THE THINGS THAT WE'VE EMPHASIZED THROUGHOUT THE
DESIGN OF THE PILOT PROJECT IS HOW VERY, VERY IMPORTANT
IT IS TO BRING OGC INTO THE PROCESS AS EARLY AS POSSIBLE
AND TO MAKE SURE THAT COUNCIL THAT IS SELECTED FOR A GIVEN
PROJECT HAS ALL THE DOCUMENTS THAT ARE NEEDED FOR THEM TO
BEGIN WORK EARLIER RATHER 18 THAN LATER.
THE FINAL CHANGE IN THE DOCUMENT IS CALLED PROCESS
NOTES FOR PROJECTS LOCATED OUTSIDE OF PILOT HUB AREAS,
OR HUB JURISDICTIONS. WE'VE MENTIONED THIS.
THIS WAS SORT OF EVOLVED FROM THE FACT THAT WE NOW HAVE
PROJECTS LOCATED IN HUBS THAT ARE NOT NECESSARILY THE HUBS
THAT HAVE BEEN SELECTED FOR PROCESSING OF PILOT PROJECTS.
AND SO WITH THAT EXPANSION TO ALL OF THE STATES, THAT
TRIGGERED THE NEED FOR THIS NEW INFORMATION.
I CAN DESCRIBE THAT PROCESS VERY BRIEFLY HERE, JUST SO
PEOPLE WILL KNOW THE BASIC OUTLINES OF IT.
I THINK IT IS IMPORTANT TO THE LEER SO THEY KNOW WHAT
HUB TO TAKE SOMETHING TO, AND THAT THE HUB STAFF THAT ARE
NOT IN PILOT HUBS ALSO KNOW WHAT THEY CAN DO TO GET A
PROJECT MOVING. SO THE KEY ELEMENTS OF THAT
PROCESS ARE, FIRST, THAT THE LENDER BRINGS THE PROJECT TO
THE HUB IN WHICH THE PROJECT IS LOCATED.
AND WE'RE CALLING THAT HUB THE ORIGINATING HUB, JUST TO
DISTINGUISH IT FROM THE HUBS THAT ARE THE PILOT HUBS.
IN THAT ORIGINATING HUB, THE PRODUCTION CHIEF WILL CONTACT
THE PERSON WHO WAS THE DESIGNATED UNDERWRITER, IN
THE NEAREST PILOT HUB WHO IN TURN SETS UP THE CONCEPT
CALL. WE THOUGHT IT WAS IMPORTANT
TO HAVE ONE OF THE PEOPLE EXPERIENCED IN PROJECT
UNDERWRITING AVAILABLE IN THAT CONCEPT CALL SINCE THE
ELIGIBILITY DETERMINATION IS 19 SUCH AN IMPORTANT STEP EARLY
IN THE PROCESS. ANOTHER IMPORTANT STEP IS
THAT WE DISCUSSED A LOT, DETERMINING WHO AND HOW
COUNSEL WOULD BE SELECTED FOR THIS AND OGC'S PREFERENCE WAS
THAT THE REGIONAL COUNCIL -- THEY HAVE IDENTIFIED PEOPLE
IN EACH OF THE REGIONAL OGC OFFICES WHO HAVE SELECTED AN
ATTORNEY TO CLOSE THOSE PROJECTS THAT ARE NOT LOCATED
IN PILOT HUBS. THEN WHAT HAPPENS IS THE
PILOT HUB DESIGNATED UNDERWRITER DOES ALL OF THE
FUNDAMENTAL UNDERWRITING AND SO FORTH, AS WE'VE JUST
DISCUSSED IT, AND ALSO, HAS TO COORDINATE ELEMENTS OF THE
PROJECT THAT NEED TO BE -- THAT REQUIRE THE ATTENTION OF
THE ORIGINATING HUB AS WELL. THE ORIGINATING HUB WILL
RETAIN ALL OF THE ASSET MANAGEMENT WORK AND TOGETHER,
THEY WILL DECIDE HOW TO GET SITE VISITS DONE AND THEY'LL
ENSURE THERE WILL BE VARIOUS OTHER CROSSING POINTS LIKE
THAT. THE HUB DIRECTOR OF THE
ORIGINATING HUB IS THE ONE WHO WILL FIND AND ISSUE THE
FIRM COMMITMENT, SO THAT STAYS THERE, AS DOES THE
CLOSING. IT WILL TAKE PLACE IN THE
ORIGINATING HUB AS WELL. SO THAT'S JUST A QUICK
OVERVIEW OF THOSE CHANGES. AND THERE'S MORE DETAIL IN
THE DRAFT VERSION OF THE PROCESSING GUIDE.
ARE THERE ANY QUESTIONS? >> LET'S TAKE A MINUTE AND
ASK IF THERE ARE QUESTIONS AND IF THERE AREN'T, I HAVE
QUESTIONS FOR THE PEOPLE IN 20 THE AUDIENCE TO TYPE IN THEIR
ANSWERS. SO LET'S GIVE PEOPLE A CHANCE
TO ASK QUESTIONS. >> I WANT TO REFRESH FOR
FOLKS WHAT THE EMAIL ADDRESS IS TO ASK THOSE QUESTIONS.
>> THAT WOULD BE HELPFUL IF WE CAN REMEMBER WHAT IT IS.
AND MR. WEISENDANGER IS GOING TO PUT THAT ON THE OVERHEAD
RIGHT NOW. AND I BELIEVE WE SAID SENT IT
TO MARK WEISENDANGER.GOV AND PUT IN THE SUBJECT LINE, TAX
CREDIT PILOT TRAINING QUESTIONS".
AND WEISENDANGER. WHO PERFORMS THE SITE
INSPECTION. AND WE'LL GIVE MARK A CHANCE
TO GIVE HIS E-MAIL ADDRESS FOR THOSE IN THE FIELD OR
WATCHING REMOTELY. AND FIRST QUESTION, WHICH IS
A GOOD ONE, WHO PERFORMS THE SITE INSPECTION AND THE
ENVIRONMENTAL REVIEW. LYNN, DO YOU WANT TO TAKE
THAT ONE? >> ABSOLUTELY.
IF IT'S A PROJECT THAT'S IN A PILOT HUB, IT'S FAIRLY
SIMPLE. WE HOPE THAT THE DESIGNATED
UNDERWRITER WILL BE ABLE TO DO THE SITE INSPECTIONS.
THAT'S NOT ALWAYS POSSIBLE. IT DEPENDS SOMEWHAT ON TRAVEL
MONEY AND BECAUSE THE ENVIRONMENTAL REVIEW OR THE
ENVIRONMENTAL INSPECTION ALSO HAS TO BE DONE, SOMETIMES THE
PERSON WHO DOES THAT, WHO I BELIEVE IS THE ARCHITECT --
>> TYPICALLY THE APPRAISER OR OTHER ENVIRONMENTAL OFFICER
WILL DO THE ENVIRONMENTAL REVIEW.
UNDER THE PILOT PROGRAM, SOME 21 OF THE DESIGNATED
UNDERWRITERS ARE QUALIFIED AND CAPABLE OF DOING THOSE
THEMSELVES. OTHERS WILL NEED TECHNICAL
ASSISTANCE AND WILL ARRANGE FOR THAT, JUST LIKE ANY OTHER
TECHNICAL ADVICE ON A CASE BY CASE BASIS AND CALL THAT
INSPECTION OUT. I WILL NOTE THAT ONE OF THE
FEATURES OF THE PILOT IS WE WANT E.C. DEALS, WE WANT THE
LOW HANGING FRUIT AT MINIMAL RISK, AND IF A PROJECT HAS
SIGNIFICANT ENVIRONMENTAL ISSUES, IT MAY NOT BE
APPROPRIATE FOR THE PILOT PROGRAM.
HAVING SAID THAT, HUD STAFF IS REQUIRED BY STATUTE AND
REG TO CONDUCT THE SITE VISIT, AND IF THE DESIGNATED
UNDERWRITER NEEDS ASSISTANCE, THEY WILL CALL ON THE
VALUATION OR OTHER ENVIRONMENTAL QUALIFIED STAFF
TO DO THAT SITE INSPECTION. >> I THINK WE ALSO PROVIDE
ADDITIONAL DETAIL ABOUT CIRCUMSTANCES UNDER WHICH THE
DESIGNATED UNDERWRITER WOULD BE ABLE TO PERFORM THAT
ENVIRONMENTAL REVIEW AND THAT THE APPRAISER WOULD NOT BE
REQUIRED TO DO IT. THERE'S A LITTLE DETAIL ABOUT
THOSE KINDS OF SERVICES. THEN LYNN, YOU WERE TALKING
ABOUT, TOO, IF IT'S IN THE ORIGINATING HUB, THE
DESIGNATED UNDERWRITER WOULD GO OUT AND PERFORM THE SITE
VISIT, BUT WHAT IF IT'S NOT IN THE ORIGINATING SNUB CAN
YOU TALK A LITTLE ABOUT THAT? >> YES.
SO IF IT'S A PROJECT THAT COMES FROM THE ORIGINATING
HUB, BUT IS BEING PROCESSED 22 IN ANOTHER PILOT HUB, THEN IN
SOME CASES, THAT WILL WORSEN THE ISSUE OF TRAVEL MONEY,
BECAUSE THE PILOT HUB STAFF PERSON WOULD HAVE TO TRAVEL
FURTHER TO GET TO THE PROJECT.
SO THOSE ARE CASES IN WHICH MORE LIKELY THE DESIGNATED
UNDERWRITER IN THE PILOT HUB WOULD MAKE ARRANGEMENTS WITH
SOMEONE IN THE ORIGINATING HUB TO DO THAT VISIT ON THEIR
BEHALF. >> THEY MAY OR MAY NOT NEED
TO RELY ON OTHER STAFF. IT MAY BE THEY CAN GROUP SITE
VISITS AND WRAP SEVERAL IN TO OBTAIN ASSISTANCE LOCALLY.
I THINK THE BASIC BOTTOM LINE ANSWER TO THIS IS IT'S THE
DESIGNATED UNDERWRITER'S JOB TO FIGURE IT OUT AND GET IT
DONE, AND HOWEVER THEY ELECT, WE DON'T WANT TO OVERLY
PRESCRIBE, BECAUSE EVERY GEOGRAPHY IS DIFFERENT, EVERY
DEAL LOCATION IS DIFFERENT AND THE DESIGNATED
UNDERWRITER IS RESPONSIBLE FOR FIGURING OUT HOW TO GET
THAT SITE VISIT DONE. I WILL SAY THAT WE DO THINK
THAT JUST AS IN ANY OTHER TRANSACTION, A SITE VISIT IS
IMPORTANT. THIS IS A DIRT BUSINESS AND
THEY SHOULD BE AT SOME POINT ON SITE AND SEE THE PROPERTY
PHYSICALLY. >> OTHER QUESTIONS?
>> BEFORE WE GO TO THE NEXT SEGMENT, IF WE WERE TO GIVE A
QUIZ, HERE WOULD BE A QUIZ QUESTION FOR THE FIRST PART.
DESCRIBE TAX CREDIT PROGRAM PILOT ELIGIBILITY.
AND SO WE'LL GIVE YOU A MINUTE TO WRITE THE THREE OR
FIVE CHARACTERISTICS OF 23 PROJECTS THAT WOULD BE
ELIGIBLE FOR THE PILOT. AND I'LL LOOK FORWARD TO
GETTING THAT -- THOSE GO TO MARK WEISENDANGER AND WE WILL
LOOK FORWARD TO THE ANSWERS TO THAT FIRST QUESTION AND
WE'LL GIVE YOU ABOUT TWO MINUTES.
>> DO WE HAVE ANY ANSWERS TO THE QUESTIONS THAT WE ASKED?
>> WE ARE GETTING THE FIRST ANSWERS IN, AND WE'LL JUST
GIVE IT ANOTHER 30 SECONDS FOR MARK TO COPY AND PASTE
ANY ANSWERS THAT HAVE COME IN AND THEN WE'LL REVIEW THAT
FIRST QUESTION. >> THE FIRST QUESTION IS WHAT
ARE THE PROGRAM ELIGIBILITY TO PARTICIPATE IN THE TAX PIE
ROT CREDIT AND AT LEAST ONE PERSON GOT THE ANSWER, THE
PILOT PROGRAM IS LIMITED TO THE 223F PROGRAM.
IT HAS TO HAVE REPAIRS OF LESS THAN $40,000, AND THEN
IT HAS TO HAVE AT LEAST ONE OF THE FOLLOWING FEATURES.
EITHER A PROJECT-BASED SECTION EIGHT CONTRACT
BRINGING IN NEW TAX CREDITS, A PROJECT WITH A THREE YEAR
RULE WAIVER WHERE THEY'RE USING THE PROPOSED LOAN TO
TAKE OUT A CONSTRUCTION LOAN OR BRIDGE LOAN OR A
SYNDICATED RESYNDICATION OF A PROJECT AT THE END OF ITS
COMPLIANCE PERIOD. SO THOSE ARE ALL CORRECT
ANSWERS. SO THAT'S GOOD THAT WE'RE
GETTING THE MAJOR POINTS. ONE OTHER POINT OF
ELIGIBILITY, IF IT'S A PROJECT THAT DOES NOT HAVE
PROJECT-BASED SECTION EIGHT, I WOULD REMIND PEOPLE THAT
THE ACHIEVABLE ACTUAL RENT 24 ROLL RENTS IN THE PROJECT
HAVE TO BE AT LEAST 10 PERCENT BELOW MARKET
RENTS. SO THAT'S THE CORRECT ANSWER.
WE'RE GOING TO GO TO THE SECOND REVIEW QUESTION TO
MAKE SURE THAT WE'RE EMPHASIZING THE POINTS THAT
WE WANTED TO COMMUNICATE TODAY AND THAT'S REALLY ABOUT
THE PROCESSING. SO THE SECOND QUESTION WHICH
WE'LL GIVE YOU TWO MINUTES TO TYPE IN AN ANSWER AND THEN A
MINUTE FOR MARK TO POST, PLEASE SUMMARIZE THE PROCESS
FOR A DEAL, A TRANSACTION, AFTER THE TIME A LENDER HAS
SIGNED UP A BORROWER IN A POTENTIAL DEAL TO GO THROUGH
THE PROCESS OF REGISTERING IT WITH THE HUD OFFICE AND
ASSIGNING IT TO A DESIGNATED UNDERWRITER, WHETHER IN THE
ORIGINATING OFFICE OR THE PROJECT IS LOCATED IN AN AREA
OUTSIDE OF ONE OF THE PILOTS. AND WHAT ARE THE FIVE OR
SEVEN STEPS TO GET THE PROJECT PROCESSED FROM THE
CONCEPT MEETING STAGE TO THE CLOSING.
AND IF YOU WOULD, AS WELL, SPECIFY HOW LONG DO YOU THINK
IT SHOULD TAKE FOR THAT PROCESS TO OCCUR.
SO WE'LL GIVE YOU TWO MINUTES TO ANSWER THAT ONE AND ASK
PEOPLE TO SEND IN THEIR ANSWERS TO MARK WEISENDANGER.
>> THE PROCESSING QUESTION THAT SAYS DESIGNATED MULTI
FAMILY HUBS, DESIGNATED NEEDED UNDERWRITER, REQUIRED
CONCEPT MEETING, REVIEW OF DESIGNATED UNDERWRITING OF
LENDER'S UNDERWRITING NARRATIVE, ARCHITECTURE,
ENGINEERING AND COST MORTGAGE 25 CREDIT, APPRAISAL VALUATION,
ENVIRONMENTAL REVIEW BY APPRAISER, AND ISSUE FIRM
COMMITMENT. >> THAT'S A GOOD SUMMARY OF
ALL THE TECHNICAL REVIEWS AND ANALYSES DONE BY THE LENDER
AND THE DESIGNATED UNDERWRITER IS REVIEWING ALL
OF THOSE ASPECTS OF THE TRANSACTION.
>> YES. >> FOR EACH OF THE TECHNICAL
AREAS, ARCHITECTURE, MORTGAGE CREDIT, COST, APPRAISAL,
ENVIRONMENTAL, AS NEEDED, THE DESIGNATED UNDERWRITER WOULD
CALL ON SPECIALISTS TO ASSIST WITH THAT.
ONCE THE PROJECT HAS COMPLETED THE REVIEW, THEY
WOULD ISSUE THE FIRM COMMITMENT.
LYNN, HOW LONG WOULD THAT PROCESS TAKE?
>> OKAY. THIS IS EASY.
ONE HUNDRED TWENTY DAYS. >> FROM?
WHAT TO WHAT? >> FROM THE SUBMISSION OF A
COMPLETE APPLICATION BY THE LENDER UNTIL THE CLOSING
DATE. >> RIGHT.
SO THAT FIRM COMMITMENT IS EXPECTED TO TAKE 45 DAYS TO
PROCESS, AND THEN ANOTHER 45 DAYS TO GET TO THE CLOSING,
IS KIND OF OUR STANDARD PROCESSING TIME.
WE REALIZE THAT SOMETIMES THERE'S BACK AND FORTH, THERE
ARE THINGS GET DELAYED, SO WE SET UP SORT OF OUTER
BOUNDARIES AS 120 DAYS. THAT APPLICATION SUBMISSION,
THE PRELIMINARY MEETING, THE UNDERWRITING, LOAN APPROVAL,
AND THE CLOSING PROCESS, 26 WITHIN 120 DAYS.
SO THAT'S THE CORRECT ANSWER. AND REALLY WHAT WE WANTED TO
COMMUNICATE. JUST AS ON ANY OTHER MAP
APPLICATION, WE ARE CONCERNED WITH THE DEADLINES,
PARTICULARLY IN THE PILOT, AND AGAIN, WE EXPECT THAT THE
DESIGNATED UNDERWRITER WILL BE RESPONSIBLE FOR DRIVING
THAT PROJECT THROUGH TO GET IT CLOSED.
AND SOMETIMES WE INCLUDE THESE COMPLICATED ISSUES AND
QUESTIONS AND AT THE END OF THE MEETING, I ALWAYS ASK,
WHAT IS A SUCCESSFUL PILOT PROGRAM APPLICATION AND THE
ANSWER IS, ONE THAT CLOSES. THE COROLLARY IS IT HAS TO
STAY CLOSED. TO GET TO THAT, WE WANT TO
REALLY TAKE A LOOK AT THE LENDER'S NARRATIVE AND
ATTACHMENTS. SO WE'RE GOING TO SHIFT TO
MARGARET SALAZAR NOW AND SHE'LL BE OUR SPEAKER.
>> GREAT. THANKS EVERYBODY.
TO KIND OF RECAP TODAY SO FAR, WE'VE TALKED ABOUT KIND
BRUSH STOKES, THE PILOT ELIGIBILITY PARTS OF THE
PROGRAM AND LYNN WALKED US THROUGH THE PROCESS AND THE
ENGINEERING WE'VE DONE ON TRYING TO CREATE WHAT WE
THINK IS A STREAMLINED PROCESS THAT REALLY RELIES ON
THE DESIGNATED UNDERWRITER AS A WAY TO MOVE DEALS A LITTLE
MORE QUICKLY THAN OUR STANDARD PROCESS.
BUT IN ADDITION TO ALL THOSE PROCESS CHANGES AND THE
ELIGIBILITY REQUIREMENTS, WE'VE ALSO DONE SOME WORK TO
TRY TO CREATE A STREAMLINE 27 APPLICATION ITSELF.
IF WE'VE CREATED ALL THE STREAMLINE PROCESS BUT WE
STILL HAVE ALL THE SAME EXHIBITS AND ALL THE SAME
KIND OF VERY LENGTHY, LARGE APPLICATION PACKAGES, WE'RE
PROBABLY GOING TO HAVE A LITTLE BIT OF A HARD TIME
STREAMLINING THE REVIEW PROCESS.
WHAT I'M GOING TO BE TALKING ABOUT IS JUST BROAD BRUSH
STROKES ON WHAT WE'VE DONE TO CREATE AN APPLICATION EXHIBIT
PACKAGE THAT HAS SOME TOOLS TO HELP FOLKS DO SOME
STREAMLINE UNDERWRITING REVIEW.
SO I'LL TALK A LITTLE ABOUT WHAT EXHIBITS WE'VE KIND OF
STREAMLINED OUT OF THE TYPICAL 223F APPLICATION
PACKAGE, AND I'LL ALSO TALK A LITTLE BIT ABOUT THE ROLE OF
THE STANDARDIZED NARRATIVE AND THE WHEELBARROW.
YOU'LL BE HEARING FROM JOHN BELL LATER TODAY ABOUT THE
WHEELBARROW AND DETAILS ABOUT HOW THE WHEELBARROW WORKS BUT
REALLY WHAT I WANTED TO EMPHASIZE, FOR THE PILOT WE
HAVE A STANDARDIZED LENDER'S NARRATIVE DOCUMENT, AS WELL
AS A WHEELBARROW DOCUMENT. THEY'RE REALLY THE HEART OF
THE APPLICATION. AND THE GOAL HERE IS TO
CREATE SOME STANDARDIZED SUBMISSIONS THAT, YOU KNOW,
ASK LENDERS THE SAME BASIC QUESTIONS, THAT GIVE LENDERS
THE OPPORTUNITY TO PRESENT INFORMATION IN A WAY THAT'S
CONSISTENT, THAT'S STREAMLINED, THAT REALLY
ALLOWS US TO GET AT THE RIGHT QUESTIONS TO ASSESS THE RISK
OF THE DEAL IN A MORE 28 STREAMLINED WAY AS OPPOSED TO
THE MYRIAD OF DIFFERENT FORMATS THAT WE RECEIVE THESE
SUBMISSIONS IN IN THE STANDARD PROGRAM.
SO I'LL BE WALKING YOU THROUGH A LITTLE MORE DETAIL
THERE. SO WHAT IS THE LENDER'S
NARRATIVE LOOK LIKE? HERE ARE SOME SORT OF
HIGHLIGHT HERE. IN THE BEGINNING, THE EARLY
PAGES OF THE NARRATIVE DOCUMENT, WE HAVE AN
ELIGIBILITY AND THRESHOLD CHECKLIST.
THAT'S A TOOL FOR THE DESIGNATED UNDERWRITER AND
THE LENDER TO BOTH USE TO JUST MAKE SURE THAT THE
APPLICATION, IN FACT, MEETS THE ELIGIBILITY REQUIREMENTS
FOR THE PILOT. THOSE THREE TYPES OF PROJECTS
THAT WE'VE HEARD ABOUT EARLIER TODAY.
WE ALSO INCLUDE IN THE LENDER'S NARRATIVE SOME OF
THE LENDER'S ANALYSIS THAT HAS BEEN TYPICALLY REQUIRED
AS A DISCREET, DISTINCT APPLICATION EXHIBIT, SO YOU
KNOW, THE LENDER'S COST ANALYSIS, THE LENDER'S
ANALYSIS OF VALUATION, THINGS LIKE THAT THAT HAVE IN SOME
CASES BEEN SUBMITTED AS DISTINCT APPLICATION EXHIBITS
ARE JUST INCLUDED IN THE LENDER'S NARRATIVE DOCUMENT.
IT INCLUDES QUESTIONS ABOUT RISKS AND LITIGANTS, AND
SPECIFIC INFORMATION ABOUT RISKS THAT ARE PARTICULARLY
IMPORTANT FOR TAX CREDIT TRANSACTIONS THAT ARE A
LITTLE DIFFERENT THAN MAYBE YOUR TYPICAL MARKET RATE
TRANSACTION. 29 IT ALSO INCLUDES SUMMARY
INFORMATION THAT WOULD TYPICALLY BE PROVIDED ON THE
BEAUTIFUL FORM 92013 WHICH WE FOUND WAS DUPLICATIVE IN
PARTS OF ANOTHER APPLICATION SO WE'VE DONE AWAY WITH THE
FORM FOR THE PILOT AND THE INFORMATION WE WOULD BE
ASKING ON THE 2013 IS INCLUDED THIS THAT NARRATIVE
FORM. WE ALSO OF COURSE ASKED
INFORMATION ABOUT THE TAX CREDIT AWARDS AND THE
DEVELOPMENT TEAM. SO BECAUSE WE'VE CREATED THE
STANDARDIZED LENDER NARRATIVE, WHO IS A REALLY
HOLISTIC DOCUMENT, WE'RE ABLE TO OMIT CERTAIN FORMS THAT
HAVE TYPICALLY BEEN REQUIRED FOR FHA LOAN APPLICATIONS.
SO AS I MENTIONED TO YOU BEFORE, THE 2013 DOES NOT
NEED TO BE SUBMITTED, THE 2013 SUP DOES NOT NEED TO BE
SUPPLEMENTED. THAT FORM, THERE ARE
QUESTIONS ON THAT FORM THAT WILL REALLY IMPORTANT, BUT
YOU'RE ABLE TO INCLUDE THE ANSWERS TO THOSE QUESTIONS ON
A MASTER CERTIFICATION. AND JUST TO KIND OF PAUSE FOR
A MOMENT, WE DO ALLOW UNDER THE PILOT RECEIPT OF A MASTER
CERTIFICATION FORM THAT INCLUDES SOME BASIC
CERTIFICATIONS, ALL IN ONE PLACE, THAT HAVE TYPICALLY
BEEN REQUIRED TO BE SUBMITTED AS DISTINCT DOCUMENTS.
THE DETAILS ON THAT MASTER CERTIFICATION FORM ARE
DESCRIBED IN THE PROCESSING GUIDE THAT LYNN HAD
MENTIONED. >> THE 2264A FORM IS ACTUALLY
INCLUDED IN THE WHEELBARROW 30 THAT JOHN WILL BE EXPLAINING
TO YOU LATER, SO WE DON'T NEED TO HAVE A SEPARATE 2264A
FORM. AND IF YOU KNOW, FHA
UNDERWRITING, YOU KNOW THE IMPORTANCE OF THAT FORM, THE
SAIL INFORMATION WILL BE REVIEWED.
BUT IT'S INCLUDED IN THE WHEELBARROW, SO WE DON'T NEED
IT TO BE SEPARATELY INCLUDED. AND THEN THE BYRD AMENDMENT
AND CERTIFICATION OF THE MORTGAGOR'S ARCHITECT ARE
ALSO CERTIFICATIONS THAT CAN BE SUBMITTED ALONG WITH THE
2013 SUP INFORMATION AS PART OF A MASTER CERTIFICATION
FORM. SO WE REALLY ARE TRYING TO
REDUCE SOME OF THESE EXTRANEOUS PAPERWORK.
I'LL TALK A LITTLE ABOUT ARCHITECTURE, ENGINEERING AND
COST EXHIBITS. THERE WILL BE A TRAINING
SESSION SPECIFIC TO ARCHITECTURE, ENGINEERING AND
COST, AND WE'LL GO THROUGH HOW WE'LL BE ADDRESSING SOME
OF THE REPAIRS. SO I WON'T GO INTO TOO MUCH
DETAIL, EXCEPT TO MENTION THAT AS I THINK SOME OF THE
RESPONDENTS EMAILED IN THEIR RESPONSES TO THE EARLIER
QUESTIONS, THAT WE ARE ALLOWING REPAIRS UP TO 40,000
PER UNIT IN THIS PROGRAM, WHICH IS A LITTLE DIFFERENT
THAN THE TYPICAL 223F REQUIREMENTS.
SO THE PROCESSING GUIDE AND OUR TRAINING LATER WILL GO
THROUGH A LOT OF DETAIL ABOUT WHAT THAT LOOKS LIKE AND HOW
WE'LL BE MANAGING THAT. BUT WHAT WE'VE TRIED TO DO
FOR THE APPLICATION EXHIBITS 31 IS TO TAKE THAT POTENTIALLY
HIGHER REPAIR LIMIT INTO CONSIDERATION WHILE ALSO
TRYING TO CREATE A STREAMLINE APPLICATION REVIEW.
SO FOR EXAMPLE, THE LENDER'S ARCHITECTURE, ENGINEERING AND
COST REVIEW, WHICH TYPICALLY IS A SEPARATE EXHIBIT, IS
ABLE TO BE INCLUDED AS PART OF THE LENDER'S NARRATIVE
DOCUMENT. THE CERTIFICATION FROM THE
MORTAR'S ARCHITECT, AS I MENTIONED EARLIER, IS NOT
REQUIRED BECAUSE IT CAN BE PART OF THE MASTER
CERTIFICATION. THE LEGAL SURVEY CAN BE
DELAYED UNTIL THE INITIAL ENDORSEMENT CLOSING.
THE DESCRIPTION OF THE CONDITION OF THE PROPERTY,
THE LIST OF REPAIRS AND IMPROVEMENTS IN THE LAST TWO
YEARS AND THEIR ESTIMATED COST, THAT HAS ACTUALLY BEEN
LISTED IN THE MAP GUIDE AS A DISTINCT APPLICATION EXHIBIT.
BUT IT REALLY SHOULD BE INCLUDED IN THE LENDER'S
NARRATIVE. SO IF THE SUMMARY OF THAT IS
IN THE LENDER'S NARRATIVE, WE DON'T NEED A DISTINCT
APPLICATION EXHIBIT WITH THAT INFORMATION.
AND THEN BECAUSE THIS IS A 223F PROGRAM WITH EXISTING
HOUSING, WE DON'T NEED A SOILS REPORT AND FOUNDATION
ANALYSIS FOR THESE DEALS. SO WE'RE WAIVING THAT HERE.
>> I WANT TO TALK ABOUT THE MORTGAGE CREDIT, BECAUSE, OF
COURSE, IN THE TAX CREDIT WORLD, WHAT WE'RE LOOKING FOR
MIGHT BE DIFFERENT IN THESE APPLICATIONS THAN WOULD BE IN
THE STANDARD FHA MAP DEAL. 32 SO JUST 11 VERY CLEAR
DIFFERENCE, WHAT WE'RE REQUIRING WITH THE
APPLICATION EXHIBITS, OBVIOUSLY WE DON'T NEED TO
HAVE A CERTIFICATION THAT THERE ARE NO TAX CREDITS IN
THE DEAL, BECAUSE BY DEFINITION, THESE ALL DO HAVE
TAX CREDITS. WE'VE DONE A LITTLE WORK TO
TRY TO STREAMLINE OUT SOME EXTRANEOUS INFORMATION FOR
THE MORTGAGE CREDIT REVIEW SO THAT WE'RE REALLY RELYING ON
THE LENDER'S EXPERTISE, THE LENDER'S DUE DILIGENCE IN
ALLOWING OUR DESIGNATED UNDERWRITERS TO DO RISK-BASED
UNDERWRITING BASED ON THE CAPACITY OF ALL THE PLAYERS
INVOLVED. SO JUST TO GIVE YOU AN
EXAMPLE OF THAT, THE PERSONAL FINANCIAL AND CREDIT
STATEMENTS, FORM HUD 92417, WHAT WE'VE SAID IN THE
PROCESSING GUIDE IS THAT THAT'S NOT REQUIRED FOR THE
TAX CREDIT LIMITED PARTNER AND SYNDICATOR, IF THE LENDER
CAN PROVIDE A CERTIFICATION THAT THE ENTITIES ARE AMONG
THOSE WITH AMPLE EXPERIENCE AND RATINGS TO SHOW
SUFFICIENT BORROWER RELIABILITY AND WHAT THAT'S
REALLY SAYING IS WE DON'T NECESSARILY NEED TO SEE THE
FINANCIAL STATEMENTS AND CREDIT REPORTS FOR ALL THE
PLAYERS IN THE DEAL. WE WANT TO RELY ON THE
LENDER'S EXPERTISE BASED ON THE DUE DILIGENCE, THAT CAN
INCLUDE INFORMATION FROM RATING AGENCIES SCORES AND
ALSO THE LENDER'S DUE DILIGENCE.
IF OTHER RATING AGENCY SCORES 33 ARE AVAILABLE WE WANT TO SEE
THOSE BUT WE DON'T NECESSARILY WANT TO SEE THE
REPORTS OF ALL THE PLAYERS. THAT INCLUDES THE INVESTOR,
SYNDICATOR AND NONPROFIT BOARD MEMBERS.
I KNOW THAT A LOT OF NONPROFITS CAN BE VERY
CONCERNED ABOUT THE NEED TO PROVIDE CREDIT REPORTS FOR
EVERY SINGLE MEMBER OF THE NONPROFIT BOARD.
SO WE'RE BASICALLY PROVIDING SOME STREAMLINED APPROACHES
HERE THAT WE DON'T NEED TO SEE REAMES AND REAMES OF
FINANCIAL CREDIT REPORTS IF THERE'S OTHER DUE DILIGENCE
WORK GOING ON AND WE HAVE A COMFORT LEVEL THAT THE LENDER
HAS DONE THAT APPROPRIATE REVIEW.
THE SAME IS TRUE FOR 2530S. THERE'S NO GETTING AROUND
2530S. IT'S VERY IMPORTANT FOR US
FOR OUR PREVIOUS PARTICIPATION REVIEW.
BUT IN CERTAIN CASES, FOR EXAMPLE, NONPROFIT BOARD
MEMBERS WHO ARE NOT BOARD OFFICERS, WE ARE PROVIDING A
LITTLE BIT OF FLEXIBILITY THERE THAT WE DON'T NEED TO
DO 2530S FOR ALL NONPROFIT BOARD MEMBERS.
I WANT TO TALK A LITTLE ABOUT VALUATION.
SO I'LL TALK FIRST OF ALL JUST BROADLY ABOUT VALUATION
EXHIBITS, AND THEN I'LL TALK SPECIFICALLY ABOUT THESE
ASSISTED HOUSING APPLICATIONS.
SO ONE OF THE THINGS THAT WE'VE DONE IS WE'VE CREATED
SOME WAYS TO STREAMLINE OUT SOME VALUATION EXHIBITS THAT
WE DON'T BELIEVE ADD TO THE 34 RISK-BASED UNDERWRITING FOR
THE PILOT DEALS. THAT INCLUDES A MARKET STUDY.
WE'RE NOT REQUIRING A MARKET STUDY FOR THESE TRANSACTIONS.
WE'RE NOT REQUIRING SOME OF THE SPECIFIC DETAILED
EXHIBITS THAT WERE IN THE MAP GUIDE.
FOR EXAMPLE, PHOTOGRAPHS OF THE BUILDING, AREA MAPS
SHOWING LOCATION, AND THE AS-BUILT SURVEY.
NOW, WE HOPE THAT THE APPRAISAL, OF COURSE, WILL
INCLUDE SOME OF THIS INFORMATION, THE PHOTOGRAPHS,
THE AREA MAP, BUT WE DON'T NEED TO SEE THESE SPECIFIC
DISTINCT EXHIBITS WITH THIS INFORMATION, WHICH IS THE WAY
THAT THEY'RE LISTED IN THE MAP GUIDE.
NOW, FOR ASSISTED HOUSING APPLICATIONS, WE'RE GOING TO
HAVE A SESSION, I BELIEVE IT'S WEEK, NEXT TUESDAY --
>> NEXT MONDAY. >> NEXT MONDAY, ON ASSISTED
HOUSING APPLICATIONS, SO WE'LL BE GOING INTO A LOT OF
DETAIL ABOUT WHAT YOU WOULD DO WITH THIS SECTION EIGHT,
RENT SETTINGS IN SECTION EIGHT, CONTRACT REQUESTS, BUT
I DID WANT TO HIGHLIGHT A FEW THINGS HERE TODAY, BECAUSE
DESIGNATED UNDERWRITERS, IF YOU'RE GOING TO BE WORKING ON
SECTION EIGHT DEALS, WE WANT TO BE SURE YOU'RE AWARE OF
THIS. SO AS WE MENTIONED EARLIER,
ASSISTED HOUSING APPLICATIONS ARE THOSE APPLICATIONS THAT
HAVE 90 PERCENT OR MORE OF THE UNITS AT THE PROJECT
COVERED BY A PROJECT-BASED SECTION EIGHT CONTRACT.
SO AS PART OF THE PILOT 35 APPLICATION, AS PART OF THE
VALUATION EXHIBITS, WE ARE REQUIRING THE APPLICATION TO
INCLUDE A COPY OF THE SECTION 8HAP CONTRACT RENEWAL
REQUEST. WE EXPECT THAT MOST IF NOT
ALL OF THESE APPLICATIONS WILL INVOLVE THE BORROWER
ACTUALLY REQUESTING A SECTION 8HAP CONTRACT RENEWAL WHICH
TYPICALLY IS DONE FOR A 20-YEAR TERM AND THAT MAY OR
MAY NOT INCLUDE A RENT ADJUSTMENT.
SO AN INCREASE -- REQUEST FOR AN INCREASE IN RENTS.
SO WE WANT TO SEE A OF THE HAP CONTRACT RENEWAL REQUEST,
ALSO A COPY OF THE RENT COMP STUDY, THIS IS A STUDY THAT
THE BORROWER COMMISSIONS TO DETERMINE WHETHER OR NOT THEY
MAY BE ELIGIBLE FOR A RENT INCREASE.
OF COURSE, AS THIS RENT COMP STUDY IS COMPLETED, IT
ACTUALLY INCLUDES A 2273 FORM WHICH IS ESSENTIALLY
IDENTICAL TO THE 2273 THAT'S REQUIRED BY THE MAP GUIDE.
SO IT'S A RENT COMP STUDY INCLUDES THAT INFORMATION,
WE'RE NOT REQUIRING A DISTINCT 2273 FORM THAT WOULD
PERET BACK THE SAME INFORMATION.
BECAUSE THIS IS A HAP CONTRACT, WE IN HUD HAVE
SOMETHING CALLED IRIMS, OUR DATA SYSTEM THAT TRACKS
THINGS LIKE CONTRACT RENTS, OCCUPANCY AND KIND OF, YOU
KNOW, VACANCIES AT THE PROPERTY.
WE ALSO HAVE THE TRACK SYSTEM WHICH INCLUDES THAT
INFORMATION. SO WE'RE NOT REQUIRING FOR
THESE ASSISTED PROJECTS A 36 DETAILED OCCUPANCY HISTORY
AND RENT ROLLS THAT WE WOULD REQUIRE, FOR EXAMPLE, FOR A
MARKET RATE OR TAX CREDIT TRANSACTION THAT DOES NOT
HAVE SECTION EIGHT. NOW, WE ALSO KNOW THAT SOME
OF THESE PROPERTIES THAT COME IN UNDER THE ASSISTED HOUSING
SIDE OF THIS PILOT WILL BE EITHER SECTION 202 DIRECT
LOAN PROJECT, THAT'S LOOKING TO REFINANCE, OR IT COULD BE
AN FHA-INSURED PROJECT THAT'S LOOKING TO PREPAY AND
REFINANCE. IF THAT'S THE CASE, WE MAY
WAIVE THE SURVEY REQUIREMENTS.
PARTICULARLY FOR 202 PROJECTS, WHERE HUD ACTUALLY
HAS PROVIDED THE LOAN, SO WE WOULD HAVE THE INFORMATION ON
THE PROJECT AND THE SURVEY MAY NOT BE A CRITICAL FACTOR
FOR THAT PROJECT. AND THEN FOR THE FHA-INSURED
PROJECT LIKE A 236, FOR EXAMPLE, WE MAY WAIVE THE
ARMS-LENGTH TRANSACTION INFORMATION IF THERE'S NOT
BEEN SIGNIFICANT CHANGES IN THE OWNERSHIP OF THE PROJECT.
I WANTED TO MENTION ONE OTHER THING ABOUT ASSISTED HOUSING
APPLICATIONS, WHICH IS THAT THE PILOT IS REALLY
ENVISIONED FOR ASSISTED HOUSING PROJECTS THAT HAVE A
SECTION EIGHT PROJECT-BASED RENTAL ASSISTANCE HAP
CONTRACT. BUT WE HAVE BEGUN TO RECEIVE
SOME QUESTIONS ABOUT PROJECTS THAT MAY BE COMING IN UNDER
THE RENTAL ASSISTANCE DEMONSTRATION, AND
ANTICIPATING TO USE PROJECT-BASED VOUCHERS, AND I
JUST WANTED TO MAKE CLEAR 37 THAT THAT 90 PERCENT OF UNITS
WITH THE RENTAL ASSISTANCE, THAT COULD BE PROJECT-BASED
VOUCHERS. AND IF THAT'S THE CASE, THE
APPLICATION EXHIBITS RELATED TO RENTAL ASSISTANCE WILL
LOOK A LITTLE DIFFERENT THAN WHAT THEY WILL BE FOR OUR
SECTION EIGHT HAPPEN CONTRACT, AND WE JUST ISSUED
A MORTGAGEE LETTER WHICH PROVIDES A SIGNIFICANT AMOUNT
OF DETAIL ON HOW TO SUBMIT APPLICATIONS FOR THE PILOT
FOR THOSE PROJECT-BASED VOUCHER PROJECTS.
AND THAT'S MORTGAGEE LETTER 2012-20, WHICH IS AVAILABLE
ON OUR WEBSITE. SO I JUST KIND OF WANTED TO
WRAP UP HERE. AND AGAIN, I'VE GIVEN YOU
KIND OF A HIGH LEVEL OVERVIEW OF SOME OF THE EXHIBITS THAT
WE'VE STREAMLINED OUT OF THE APPLICATION, AND SOME OF THE
TOOLS, LIKE THE LENDER'S NARRATIVE AND THE
WHEELBARROW. BUT JUST TO KIND OF WRAP
THINGS UP FOR YOU, THE PILOT PROCESSING GUIDE HAS A FULL
ANNOTATED EXHIBIT LIST, SO THAT'S WHERE YOU SHOULD LOOK
TO KIND OF GET A SENSE OF WHAT WE'VE ACTUALLY STRICKEN
OUT OF THE APPLICATION EXHIBIT LIST FROM THE MAP
GUIDE, AND IT ALSO GOES INTO A LOT OF DETAIL ABOUT WHY
WE'RE ASKING FOR THE THINGS THAT WE'RE ASKING FOR AS PART
OF THE APPLICATION, AND WHY WE'VE REMOVED CERTAIN OTHER
EXHIBITS. REALLY, THE FOCUS HERE, JUST
TO KIND OF BRING IT HOME TO THE KIND OF GOALS OF THE
PROGRAM, IS WE'RE REALLY 38 TRYING TO FOCUS ON RISK-BASED
UNDERWRITING, SO THAT'S WHY WE'RE LOOKING FOR THOSE
EXHIBITS THAT HELP ANSWER THE CRITICAL QUESTIONS ABOUT THE
RISK OF THE TRANSACTION AS OPPOSED TO JUST, YOU KNOW,
COMPLIANCE THAT YES, I'VE REVIEWED THIS HUGE REAM OF
PAPER. I JUST FINISHED TALKING A
LITTLE BIT ABOUT ASSISTED HOUSING TRANSACTIONS.
ONE OF THE OTHER GOALS HERE OF HOW WE'VE SET UP THIS
APPLICATION IS TO INTEGRATE THE ASSET MANAGEMENT AND THE
SECTION EIGHT REQUIREMENTS INTO THE FHA LOAN SUBMISSION
TO REDUCE SOME OF THAT CONFUSION AND THAT BACK AND
FORTH. SOME OF THAT WILL ALWAYS BE
THERE. WE'RE TRYING TO DO WHAT WE
CAN TO ENGINEER THAT. BUT WE'RE REALLY HOPING TO
CREATE AN INTEGRATED PROCESS WHERE THE LENDER AND THE
BORROWER ARE BOTH AWARE OF WHAT'S GOING ON WITH THE
SECTION EIGHT CONTRACT AND HOW THAT RELATES TO THE
UNDERWRITING. THEN FINALLY, WE'RE REALLY
LOOKING FOR A STANDARD PRESENTATION OF DATA.
WE THINK THAT THE MORE THAT WE AS DESIGNATED UNDERWRITERS
AND HUD FOLKS CAN RECEIVE THE INFORMATION FROM LENDERS IN A
STANDARDIZED FORMAT THROUGH THE WHEELBARROW WHICH JOHN
WILL BE DESCRIBING FOR YOU IN A MOMENT, AND THROUGH THAT
LENDER'S NARRATIVE, THAT WILL REALLY HELP US TO DO A
THOROUGH, YET EXPEDITED REVIEW OF THE IMPORTANT
INFORMATION RELATED TO THE 39 TRANSACTION.
IT WILL REALLY HELP TO REPLACE THE MYRIAD AND
DISPARITE MORTGAGE CREDIT IN OTHER EXHIBITS WHICH CAN
SOMETIMES BE SUPERFLUOUS AND STYLES EVEN CONTRADICTORY.
SO THAT'S WHAT WE'RE TRYING TO GET TO.
AND I THINK WITH THAT, I'D LIKE TO PASS IT OVER TO JOHN
WHO CAN TALK TO YOU A LITTLE ABOUT WHAT IS THIS MYSTERIOUS
WHEELBARROW AND HOW IT WORKS. >> OKAY, THANK YOU.
FIRST OF ALL, I WANT TO TELL YOU HOW EXCITED WE ARE, DAN,
LYNN, MAKING RECEIPT AND I AND OTHERS WHO HAVE WORKED ON
THIS PROJECT THAT IT'S HERE. IT'S BEEN A LONG TIME COMING
AND WE LOOK FORWARD TO PROCESSING IT.
WE'VE GOT A GOOD GROUP OF LENDERS AND FOLKS IN THE HUBS
WHO ARE WORKING ON IT. I'M GOING TO SPEND 15 MINUTES
TALKING A LITTLE ABOUT WHAT IS THE PILOT AND WHY WE LIKE
IT. AND IN A NUTSHELL, WE LIKE IT
BECAUSE IT CREATES A STANDARD FORMAT FOR LOOKING AT A LOT
OF RELEVANT INFORMATION. AND TODAY IS NOT A TRAINING
ON HOW TO FILL OUT THE WHEELBARROW.
IT'S REALLY INTENDED TO BE A DESCRIPTION OF WHAT THE
WHEELBARROW IS. AND IN THAT REGARD, WE'RE
GOING TO PROBABLY GO MORE QUICKLY THAN WE WOULD
OTHERWISE GO. WE WILL HAVE A TRAINING ON
HOW TO FILL OUT A WHEELBARROW, AND THAT
TRAINING LASTED ABOUT 45 MINUTES BEFORE AND A VIDEO OF
THAT TRAINING WILL BE 40 AVAILABLE TO YOU.
SO WHAT IS THE WHEELBARROW? WELL, IT'S AN EXCEL FILE THAT
CREATES A STANDARDIZED REPORT.
THE REPORT IS 26 PAGES. IT'S ALL PREFORMATTED SUCH
THAT THE FILE WILL PRINT AUTOMATICALLY INTO A 26-PAGE
REPORT. THERE ARE TWO MAIN PURPOSES
OF THE WHEELBARROW: FIRST, TO CAPTURE NECESSARY
INFORMATION TO ALLOW THE FHA TO UNDERSTAND EXACTLY WHAT IS
IN A PROJECT. SECOND PURPOSE, TO WRITE A
CONSISTENT REPORT SO FHA'S DESIGNATED UNDERWRITERS CAN
PERFORM ACCURATE AND EFFICIENT REVIEWS.
THESE ACCURATE AND EFFICIENT REVIEWS ARE IN YOUR INTEREST
AS LENDERS AND OUR INTEREST AS HUD, BECAUSE WE'D LIKE TO
GET THROUGH THESE AS QUICKLY AS POSSIBLE.
WE RECOGNIZE THE PRESSURES TO GET TAX CREDIT DEALS DONE
QUICKLY. UNLIKE OTHER DEALS, THERE ARE
DEADLINES THAT TAX CREDIT DEVELOPERS FACE THAT HAVE
SIGNIFICANT CONSTRAINTS ON THEM.
SO I'VE SAID IT'S NECESSARY, IT'S IMPORTANT TO GET
NECESSARY INFORMATION, SO A GOOD QUESTION TO ASK IS WHAT
IS NECESSARY. AND THE ANSWER REALLY IS ALL
OF THE SOURCES USED FOR THE WHOLE PROJECT.
A PROJECT MAY HAVE TWO OR THREE DIFFERENT SOURCES OF
FUNDING, AND THE FHA LOAN MAY COMPRISE ONLY HALF OF THE
FUNDING. A LOT OF TAX CREDIT DEALS GET
DONE WITH A 40-50 PERCENT 41 CAPITAL COMPONENT, THE REST
IS MORTGAGE AND TAX CREDIT. WE WILL LOOK AT THE ENTIRETY
OF THE PROJECT. NOT ONLY THOSE USES THAT ARE
FUNDED BY FHA PROCEEDS, BUT ALSO, THOSE FUNDED BY TAX
CREDIT PROCEEDS. WE LOOK PARTICULARLY AT WHAT
IS MORTGAGEABLE AND WHAT IS NONMORTGAGABLE.
A LOT OF PEOPLE THINK THAT MORTGAGEABLE COSTS ARE WELL
DEFINED. THEY ARE ACTUALLY DEFINED BY
DEFAULT BASED UPON WHAT WE ALLOW IN THE 2264.
A NONMORTGAGABLE IS SORT OF EVERYTHING ELSE.
BUT WE WANT TO LOOK AT BOTH. AND THE TAX CREDIT
WHEELBARROW ACTUALLY GIVES YOU AN OPPORTUNITY TO CREATE
STANDARDIZED CATEGORIES FOR BOTH OF THESE USES OF FUNDS.
THE SECOND THING WE LOOK FOR IS A DRAW SCHEDULE.
AS MARGARET WILL TELL YOU WHEN SHE WAS DOING THE
UNDERWRITING, OFTEN TIMES, WE'LL SEE A PROJECT WHERE IT
APPEARS THAT THERE'S MONEY ENOUGH TO FUND IT BUT WHEN IS
IT COMING AND FROM WHERE IS IT COMING ARE TWO QUESTIONS
THAT AREN'T ALWAYS ANSWERED SO WE PUT A VERY ABBREVIATED
STANDARDIZED SCHEDULE THAT BREAKS IT DOWN INTO INTERVALS
AND MADE THAT PART OF THE STANDARD FORM AS WELL.
SO WHY IS IT CALLED A WHEELBARROW?
IT BEGAN IN 2010, AND IS SIMPLY A PROCESS OF MOVING
INFORMATION FROM WHAT WAS THE APPLICATION, A PAPER
APPLICATION INTO DIGITAL FORM TO MAKE IT EASIER FOR YOU TO
PRESENT INFORMATION TO US AND 42 FOR US TO LOOK AT THE
INFORMATION. IT ALSO ENABLES US TO ACCESS
INFORMATION FOR THE DIGITAL FORM INTO A DATA BASE WHICH
WILL HELP US AND YOU IN THE LONG RUN.
WHAT'S THE DIFFERENCE BETWEEN THE OLD WHEELBARROW, WHICH
HAS NOW BEEN WELL ESTABLISHED AND THE TAX CREDIT
WHEELBARROW? THE TAX CREDIT WHEELBARROW
TAKES A FEW OF THE SPECIAL ASPECTS OF TAX CREDITS AND
INCLUDES THEM. SO FOR EXAMPLE, THE TAX
CREDIT WHEELBARROW GOES INTO DETAIL ABOUT WHEN THE TAX
CREDITS ARE COMING IN, IT TALKS A LITTLE ABOUT BASES
AND ALSO ADDRESSES OTHER QUESTIONS THAT ARE UNIQUE TO
TAX CREDIT PROJECTS. WE'VE TRIED TO KEEP THIS
INFORMATION TO A MINIMUM. >> AND WHAT DOES IT DO FOR US
AND FOR YOU? WELL, IT ALLOWS YOU TO DO A
REPORT, IN A MINIMUM SET OF HOURS.
IT FREES US, FHA UP, TO PROCESS APPLICATIONS MORE
QUICKLY. SINCE EVERY PROJECT LOOKS
LIKE EVERY OTHER IN TERMS OF ITS REPORT, WE KNOW WHERE TO
GO FOR INFORMATION, AND THAT HELPS US AND HELPS YOU.
AND FINALLY, THE WHEELBARROW'S INSISTENCE BY
THE REQUIREMENTS THAT IT ASKS FOR ON SEEING ALL THE PROJECT
SOURCES AND USES IMPROVES OUR ABILITY TO UNDERSTAND THE
WHOLE TRANSACTION. YOU CAN ALMOST THINK OF A TAX
CREDIT PROJECT LIKE AN ESTATE, AND NORMALLY, WE
MIGHT LOOK AT THE IMPORTANT 43 PARTS, THE KITCHEN, THE
BATHROOMS, THE BEDROOMS, THE ROOF, AND THE OTHER SYSTEMS,
BUT THERE'S A LOT MORE THAT WE NEED TO LOOK AT.
AND BY LOOKING AT THE ENTIRETY OF THE PROJECT,
APART IN JUST WHAT'S BEEN ASKED BY THE FHA PROCEEDS, IT
HELPS A GREAT DEAL TO UNDERSTAND AND GET COMFORT
WITH A PROJECT. I'M GOING TO GO QUICKLY
THROUGH A COUPLE OF THE MAJOR EXHIBITS THAT ARE AMONG THE
26 PAGES THAT THE WHEELBARROW SPITS OUT.
BUT SUFFICE IT TO SAY THAT WE HAVE DIVIDED THESE INTO
SEPARATE AND USEFUL EXHIBIT REPORTS.
YOU'RE NOT SUPPOSED TO LOOK AT ALL OF THE DETAILS OF THIS
INDEX, BUT THIS IS WHAT THE FINAL EXHIBIT WILL LOOK LIKE.
THIS, FOR EXAMPLE, IS EXECUTIVE SUMMARY.
IT'S PACKED WITH INFORMATION. AGAIN, DON'T LOOK AT IT IN
DETAIL. SUFFICE IT TO SAY THAT ALMOST
EVERYTHING THAT WE WANT TO SEE ABOUT AN OVERREVIEW OF
THE PROJECT IS HERE. THIS IS PERHAPS ONE OF THE
MOST TELLING OF THE EXHIBITS, THIS SHOWS THE TOTAL SOURCES
AND USES AND THE MORTGAGEABLE AND NONMORTGAGABLE SOURCES
AND USES. WHEN I LOOK AT A NEW PROJECT
AND AN APPLICATION IS PUT IN, I WANT TO MAKE SURE THE
SOURCES AND USES BALANCE, NOT ONLY FOR THE TOTAL BUT FOR
WHAT'S MORTGAGEABLE AND NONMORTGAGABLE.
USUALLY WHAT YOU'LL SEE UNDER THE MORTGAGEABLE AMOUNT IS
WHAT WILL APPEAR IN ALMOST 44 ANY OTHER 2264.
THAT IS PRIMARILY WHAT IS FINANCED BY THE MORTGAGE
PROCEEDS. >> THIS IS UNIQUE TO THE TAX
CREDIT WHEELBARROW. THIS IS A LIST OF THE SOURCES
OF THE PROJECT. AGAIN, YOU DON'T NEED THE
DETAILS. SUFFICE IT TO SAY, IT'S IN
THERE. >> THIS IS THE DRAW SCHEDULE.
IT WAS MENTIONED BEFORE. AGAIN, THE BIG PICTURE IS
THAT IT DIVIDES THE DRAWS INTO SIX-MONTH INTERVALS.
JUST ONE SMALL DETAIL ABOUT HOW TO COMPLETE A
WHEELBARROW. THIS IS A TYPICAL EXCEL
WHEELBARROW ENTRY PAGE. IN THE BLUE BACKGROUND CELLS
IS WHERE LENDERS WILL FILL IN INFORMATION, AND THOSE THAT
ARE NOT BLUE ARE DERIVED FROM THE INFORMATION THAT IS PUT
IN IN BLUE. ON THE TAX CREDIT PILOT SITE,
IN THE HUD PUBLIC WEBSITE, YOU CAN FIND THE INSTRUCTIONS
FOR FILLING THIS OUT. MY BEST ADVICE IS FOLLOW THE
INSTRUCTIONS. THEY'RE PRETTY CLEAR.
AND THE OTHER KEY IS TO HAVE ALL OF YOUR INFORMATION IN
FRONT OF YOU WHEN YOU FILL OUT THE WHEELBARROW.
AND IF YOU DO THAT, YOU SHOULD BE ABLE TO DO IT, IN
THE FIRST TIME, IN A COUPLE OF HOURS, AND AFTER THAT,
EVEN IN LESS TIME. >> THIS IS JUST A BIGGER
REVIEW OF WHAT ONE OF THE PAGES LOOKS LIKE.
IT IS A SINGLE WORK SHEET, AND YOU CAN SEE THE BLUE
BACKGROUND CELL THAT WILL BE 45 FILLED IN.
THIS ALSO GIVES YOU AN INDICATION OF EXACTLY HOW IT
WILL PRINTOUT INTO 12 PAINTS WHEN YOU USE THE AUTOMATIC
PRINT SYSTEM. HERE ARE THREE EXHIBITS THAT
ARE PART OF THE EXECUTIVE SUMMARY.
YOU CAN SEE IN THIS INSTANCE, VERY FEW BLUE CELLS APPEAR.
ALL OF THESE EXHIBITS, ALL OF THESE TABLES, ARE GENERATED
AUTOMATICALLY. BUT HERE AGAIN, IT'S GOOD
INFORMATION, AND IT'S VERY HELPFUL FOR US TO SEE IT IN
THIS CONTEXT. >> SO WHAT YOU NEED TO
REMEMBER FROM THIS INTRODUCTION, FIRST, IF YOU
GO TO THE WEBSITE WHERE THE TAX CREDIT PILOT IS HOUSED ON
THE HUD WEBSITE, YOU'LL SEE THAT THERE'S A GREAT DEAL OF
INFORMATION THAT'S USEFUL. THE LATEST VERSIONS OF THE
TAX CREDIT PILOT WHEELBARROW AND THE INSTRUCTIONS FOR IT
CAN BE FOUND THERE. IN ADDITION THERE WILL BE
OTHER MATERIALS POSTED THERE, OTHER TRAINING MATERIALS THAT
WILL BE USEFUL FOR TODAY. AND AS I MENTIONED, THERE ARE
DIRECTIONS FOR FILLING OUT THE FORMS.
WHAT YOU SEE BELOW IN BLUE IS A LINK TO THE TAX CREDIT
PILOT WEBSITE, AND WE'RE HAPPY TO SEND THAT TO YOU
LATER IF YOU FORGET IT. SO THIS IS A PICTURE OF THE
TAX CREDIT PILOT'S WEBSITE. YOU CAN SEE THAT THERE IS A
SECTION ON THE LIST OF PARTICIPATING LENDERS AND
HOUSING NOTICE AND MORTGAGEE LETTER, AND APPENDIX A, B, C,
C1, AND C2, AND IN THIS CASE, 46 YOU WOULD CLICK ON C1 TO GET
THE LATEST VERSION OF THE WHEELBARROW ITSELF AND CLICK
ON C2 TO GET THE INSTRUCTION. SO THE WHOLE IDEA HERE IS
THAT THE WHEELBARROW WILL HELP US AND YOU PROCESS
APPLICATIONS MORE QUICKLY. AND ULTIMATELY, THE GOAL WILL
BE TO GET AN APPROVAL FOR YOUR PROJECT.
SO THANK YOU. AGAIN, MY NAME IS JOHN BELL.
I'M HAPPY TO TAKE QUESTIONS OR CALLS.
AND THAT CONCLUDES MY PRESENTATION.
>> SO JOHN, COULD YOU DESCRIBE FOR US A LITTLE
ABOUT, YOU KNOW, THE LENDER'S ROLE, VERSUS THE DESIGNATED
UNDERWRITER'S ROLE WITH THE WHEELBARROW?
WHO ACTUALLY COMPLETES IT, WHO SUBMITS IT, AND WHAT DO
WE DO WITH IT? >> THE RESPONSIBILITY FOR
FILLING IT OUT REALLY IS THE LENDER'S RESPONSIBILITY.
AND THEY'VE DONE A WHEELBARROW COMPLETION IN THE
PAST, AND THIS SIMPLY EXPANDS WHAT THEY'VE ORDINARILY DONE.
THEY SHOULD PRINTOUT OUT THE PAGES THAT ARE PRE-- PRINT
OUT THE PAGES THAT ARE SET, BUT THEY NEED TO SUBMIT THE
EXCEL FILE AS WELL TO THE DESIGNATED UNDERWRITER WHO
WILL LOOK AT IT, MAKE SURE IT ALL BALANCES, MAKE SURE ALL
THE INFORMATION IS PROPERLY SUBMITTED.
AND IF IT'S NOT, THEIR RESPONSIBILITY IS TO GO BACK
TO THE LENDER AND SAY WE'VE GOT A COUPLE OF GLITCH THAT
IS APPEAR HERE. WE'VE ACTUALLY GOTTEN THREE
OF THESE ALREADY, AND THE 47 LENDERS DID A VERY GOOD JOB
IN FILLING THEM OUT. IT WAS GENERALLY BALANCED,
I'VE HAD NO REAL PROBLEMS WITH FOLKS CALLING UP AND
SAYING WE DON'T UNDERSTAND IT, AND I COMMEND THE LENDERS
WHO HAVE DONE IT, AND IT'S BEEN VERY USEFUL.
>> THAT'S GREAT. I KNOW THAT JUST FROM DOING
PRIOR TRANSACTIONS THAT WE OFTEN HAVE TO GO BACK TO THE
LENDER LATER IN THE PROCESS AND ASK FOR, YOU KNOW,
TIME-BASED SOURCES AND USES IN THEIR DRAW SCHEDULE, AND
WE GET INFORMATION IN LOTS OF DIFFERENT FORMATS.
IT CAN BE KIND OF CONFUSING. SO IT SOUNDS LIKE THIS IS A
MORE CONSISTENT WAY. >> WE CERTAINLY HOPE IT IS
AND IT'S PROVEN TO BE VERY USEFUL FOR THE HUBS.
WE'VE USED IT VERY SUCCESSFULLY IN THE NATIONAL
LOAN COMMITTEE. AND WE'VE PROBABLY PROCESSED
ROUGHLY 150 WHEELBARROW SUPPLY PROJECTS.
SO YES. IT HAS BEEN USEFUL.
AND WE ENCOURAGE PEOPLE TO CALL WITH QUESTIONS.
AND SPEAKING OF QUESTIONS? THIS WOULD BE A GOOD TIME, IF
YOU HAVE QUESTIONS, TO SEND THOSE IN ON AN E-MAIL TO MARK
WEISENDANGER AT FED.GOV AND WE'LL TAKE A TWO MINUTE BREAK
AND WAIT FOR ANY QUESTIONS. THANK YOU.
>> WELL, WE ARE NOT SEEING -- OH, THERE IS A QUESTION.
IT SAYS, THIS IS GOING TO BE QUESTION FOR JOHN.
ON THE EXCEL WHEELBARROW, HAVE YOU LOCKED THE CELL SO
THAT FORMULAS CAN'T BE 48 ACCIDENTALLY ERASED WHEN
REVIEWING WHO YOU NEED TO KNOW THAT THE CALCULATIONS
ARE WORKING? >> IT'S A LITTLE DIFFICULT
DECISION WHETHER OR NOT TO LOCK CELLS AND PREVENT PEOPLE
FROM SEEING THE CONTENT OF CELLS.
WE ACTUALLY HAVE NOT LOCKED ANY OF THE CELLS IN THE
WHEELBARROW. IT ALLOWS YOU TO NAVIGATE
THROUGHOUT ALL OF THE WORK SHEETS FREELY AND WE FOUND
THAT THIS ACTUALLY IS BETTER. IT'S ALMOST A FORM OF
TRANSPARENCY. WE'VE ALSO TRIED TO MINIMIZE
THE AMOUNT OF INPUTTING THAT'S BEING DONE IN SEPARATE
BLOCKS. IF THERE A PROBLEM -- IF A
PROBLEM DOES EXIST WITH A WHEELBARROW, I THINK IT'S
IMPORTANT TO SIMPLY GET A NEW VERSION AND START AGAIN.
BUT WE DON'T THINK THAT IF YOU LOOK AT A COUPLE OF THE
MAIN CELLS, YOU'LL HAVE ANY DOUBT THAT THE CALCULATIONS
ARE PERFORMING AS THEY SHOULD.
THAT IS, IF THE SORES USES BALANCE AND THEY'RE
CONSISTENT WITH WHAT YOU SEE YOU'LL BE ABLE TO SEE IF THE
FORMULA IS WORKING. KEEP IN MIND THE WHEELBARROW
DOESN'T PERFORM COMPLEX ANALYSES.
IT REALLY IS DESIGNED TO TAKE INFORMATION THAT OTHERWISE
WOULD BE ON PAPER AND RE-PRESENT IT.
>> THANK YOU JOHN. ANY FURTHER QUESTIONS?
NO OTHER QUESTIONS. >> ALL RIGHT.
THEN I THINK WE HAVE 49 BASICALLY FINISHED FOR TODAY.
I WOULD LIKE TO THANK DAN AND MARGARET AND JOHN FOR THEIR
HELP IN PREPARING AND DELIVERING THE PRESENTATIONS
TODAY. I THINK WE COVERED A LOT OF
GROUND. I ALSO WANTED TO GIVE YOU
JUST A BRIEF UPDATE ON WHERE THE PROGRAM STANDS IN TERMS
OF ITS PRODUCTION. WE HAVE OVER A DOZEN PROJECTS
IN OUR PIPELINE TRACKING SYSTEM NOW.
THOSE ENTERED THAT SYSTEM AS SOON AS A CONCEPT MEETING IS
REQUESTED OR HELD. SO THERE ARE SEVERAL HUBS
INVOLVED ALREADY IN GETTING PROJECTS READY TO SEND IN TO
US. ONE PROJECT FROM THE SAN
FRANCISCO HUB WAS APPROVED WEEK BEFORE LAST?
WEEK BEFORE LAST. AND WE DO HAVE ANOTHER
COMMITTEE MEETING SET FOR TOMORROW, SO WE EXPECT TO
HAVE THE DETERMINATIONS ON TWO PROJECTS UNDER OUR BELTS
BY THE END OF THE DAY TOMORROW.
WITH RESPECT TO LENDER ACTIVITY, AS YOU MAY KNOW, WE
STARTED WITH A REQUEST FOR APPLICATIONS TO LENDERS BACK
IN APRIL, WHEN THE PROGRAM JUST STARTED.
WE APPROVED 21 LENDERS AT THAT POINT, AND WE HAVE SINCE
REQUESTED ADDITIONAL APPLICATIONS BASICALLY IN
CONJUNCTION WITH OUR EXPANSION OF THE AREAS IN
WHICH WE ARE ABLE TO DO PROJECTS NOW.
YOU KNOW, THAT MEANT OPENING NEW MARKETS AND CONSEQUENTLY,
WE WANT TO MAKE SURE WE HAVE LENDERS IN EACH AND ALL OF
THOSE MARKETS, READY TO BRING US PROJECTS.
SO WE HAVE RECEIVED APPLICATIONS.
I BELIEVE WE RECEIVED 22 OR 23 TOTAL.
AND WE ARE JUST ABOUT TO WRAP UP THE SCORING, AND WE WILL
ISSUE LETTERS TO THOSE WHO ARE SELECTED NO LATER THAN
NOVEMBER 25TH. >> AND THE FINAL NOTE IS JUST
A REMINDER THAT OUR NEXT SESSION IS GOING TO BE THIS
COMING FRIDAY, THE 16TH, SAME TIME, SAME PLACE, SAME
LENGTH. AND WE HOPE THAT YOU'LL ALL
BE ABLE TO JOIN US THEN. THANK YOU.