1. 19th Annual Western HUD Lenders’ Conference
Highlights from the West Region
September 19th, 2018
Tom Azumbrado, Regional Director
Multifamily West Region
Angela Corcoran, Production Division Director

2. Multifamily West Region Management

3. Multifamily West Production Division

4. Multifamily West Region Staffing
Multifamily Division
Current Staff Level
Authorized Staff Level
San Francisco Production 22 28
Denver Production 19
Production Total 41 51
San Francisco AM 50 57
Denver AM 33 44
Asset Management Total 83
101
San Francisco Operations 4 6
Denver Operations 1 2
Operations Total 5 8
Regional Office 3
Total
132
163
Note: Original Transformation staffing plan allotted 180 FTEs

5. Multifamily West Region Vacancies
PRODUCTION: 
3 Underwriters
2 Appraisers
1 Construction Analysts
2 Program Assistants
2 Closing Coordinators
ASSET MANAGEMENT:
2 Branch Chiefs
11 Account Executives
2 Resolution Specialists
3 Program Assistants
 OPERATIONS:
3 Program Analysts
On Board Staff = 132
Vacant Positions = 31
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 = 10
1 Appraiser, 1 Production Program Assistant, 2 Closing Coordinators, 3 AM Program Assistants, 3 Account Executives

6. Presidentially Declared Disasters - PDD
Major disaster or emergency declared under the Robert T. Stafford Disaster Relief and Emergency Assistance Act
Declaration is published by FEMA (FEMA.gov)
Disaster Declaration
Major Disaster Declaration
Emergency Declaration
Fire Management Assistance Declaration
Fire Suppression Authorization
Individual Assistance
HUD Multifamily Disaster Guidance
HUD Handbook – Chapter 38

7. Multifamily Asset Management and Project Servicing (4350.1)
Chapter 38 – Multifamily Emergency Disaster Guidance
Applicable
Insured
Assisted
Use Agreement
Layout
Pre-disaster Planning
The Presidentially Declared Disaster (PDD)
Program and Disaster Relief Options During a PDD
Responsibilities – Appendix A-8

8. Phases Assessment Recovery Restoration Plan Preliminary
Sources/Uses of Funds
Detailed Repair Listing
Estimated Completion Dates
Contractor Information
Displaced Resident Tracking
Tracking
Return to Normal Operations/Close Out (Appendix A-7)
Preliminary
Preliminary Disaster Assessment (Appendix A-3)
Vacancy Utilization/Displaced Resident Report (Appendix A-4)
Damage Code
Onsite
Final Disaster Assessment (Appendix A-5)

9. Current Disasters as of 9/10/18
State /PDD Identifier
# of Properties
Total Number of Units
# of Assisted Units
Texas - Hurricane Harvey 4332
454
51,072
20,971
Georgia - Hurricane Irma 4338 62
5,249
2,874
Florida - Hurricane Irma 4337
910
106,513
45,902
Puerto Rico - Hurricane Maria 4339
203
21,013
19,859
U S Virgin Islands - Hurricane Maria 4340 17
1,474
1,468
California - Wildfire 4344
176
14,024
8,454
California - Mudslides 4353
960
75,831
51,913
Alabama - Tornado 4362 29
1,904
1,352
North Carolina 77
6,537
2,431
Indiana
149
16,232
8,717
Hawaii & 4366 92
5,390
3,271
Texas 79
6,443
2,728
TOTAL
3,208
311,682
169,940

10. Active disturbances/storms:
Event
State
Total Number of Properties
Total Number of Insured Properties
Exposure UPB
Total Units
Total Assisted Units
Hurricane Olivia HI
117 17
$       125,320,831
6,302
3,964
Typhoon
Guam & Marianas 5 $
182
167
Hurricane Isaac PR
203 55
$       113,990,613
21,013
19,859 VI 6
$         23,543,232
1,474
1,468
Hurricane Florence SC
510
229
$   1,352,957,202
36,223
21,400 NC
1,174
573
$   3,614,505,428
75,705
32,066 VA
781
368
$   4,464,403,592
77,569
33,527 WV
235
123
$       257,388,034
13,303
11,541 DC
170
103
$   1,198,071,949
20,827
10,518 MD
809
469
$   5,089,329,284
79,240
31,235 DE
131 22
$       212,803,474
8,612
5,487 PA
1,099
380
$   1,501,061,897
83,617
68,145 GA
780
400
$   2,325,502,838
71,914
36,073
TOTALS
6,031
2,745
$ 20,278,878,374
495,981
275,450
Florence only
5,689
2,667
$20,016,023,698
467,010
249,992

11. Multifamily West Region Asset Management
Assisted and Uninsured Properties
Properties
Units
Annual Assistance
3,973
212,677
$2,027,773,044
Unassisted and Insured Properties
Properties
Units
Unpaid Balance
1,549
185,539
$13,266,910,978
Assisted and Insured Properties
Properties
Units
Annual Assistance
Unpaid Balance
602
52,267
$476,746,704
$2,607,192,450.26
Total Properties
Total Units
6,124
450,483

12. Closings this Fiscal Year
Properties: 76
Amount: $1,034,226,100
New Construction
Properties: 39
Amount: $781,415,700
223(a)(7)
Properties: 14
Amount: $209,628,400
FY 2018 YTD
Total Properties:
Mortgage Amount: $2,123,345,200
Mortgage Amount: $2,410,082,300
Mortgage Amount: $1,480,123,000
FY 2017
FY 2016

13. LIHTC’s FY 2018 Closings LIHTC Closings State Closings Units
Mortgage Amount AZ 2
169
$6,852,600 CA 18
1,776
$161,846,500 CO 5
425
$38,553,400 HI 1
128
$13,900,000 MT
149
$5,042,000 ND 68
$3,500,000 NV
311
$22,022,500 OR 6
652
$59,458,400 UT
146
$12,600,000 WA
624
$41,500,300
Totals
40 projects
4,448 units
$365,275,700
FY 2017 : 34 projects 3,805 units $419,640,400

14. FY18 Closings by State 22 2 19 37 1 10 14 8 12 7 1
State
Closings
Units
Mortgage
Alaska 1 24
$1,388,000
Arizona 22
3,461
$339,018,400
California 37
3,514
$443,179,300
Colorado 19
2,822
$440,982,100
Hawaii
128
$13,900,000
Idaho
$882,700
Montana 2
149
$5,042,000
North Dakota 68
$3,500,000
Nevada 10
1,821
$152,433,700
Oregon 14
1,401
$171,046,000
South Dakota
160
$24,165,300
Utah 8
1,457
$227,159,900
Washington 12
1,967
$300,647,800 3 1 5 11 7 4 1
New Construction Deals Shown in Red (39)
Totals in Black Include New Construction (129) 1 1

15. FY18 Closings by Lender 18 Closings – 2 Lenders 9 Closings – 2 Lenders

16. 142 Firms Issued FY18 221(d)(4) 223(f) 223(a)(7) Firms Issued 26
Average Staff Processing
45 Days / 95 Days
Rejected Applications 1
223(f)
Firms Issued
101
Average Staff Processing
48 Days / 89 Days
Rejected Applications 11
223(a)(7)
Firms Issued 15
Average Staff Processing
43 Days / 59 Days
Rejected
Applications 1

17. FY18 Application Submissions
184 Total Applications Submitted FY 18 YTD

18. Current Portfolio In Processing
Applications in Active Processing
221(d)(4) 41
223(f) 10
Risk Share 7
Total 58
87 Projects Under Construction
Section of Act
Properties
Units
Mortgage Amount
202 Capital Advance for Elderly 4
159
$22,806,200.00
213 NC/SR Management Coop 2
113
$26,399,300.00
220 NC/SR in Urban Renewal Area
293
$70,213,200.00
221d4 NC/SR 61
10,397
$1,677,752,700.00
542(c) HFA Risk Sharing -- NC/SR 8
896
$86,630,000.00

19. Challenges FY 18 Hiring/Staffing CNA e-Tool
HERO System/Environmental Submissions
Third Parties Access to HEROS
Complete Environmental Information at PreApp
Technology, Systems and Data Integrity
Electronic Submissions of Application
Systems Update is a DAS Priority
Data Integrity Problem
Large Number of Concept Meetings
160 Concept Meetings this year
Complex Deals

20. Priorities Meeting Timeframes Streamlined, Risk Based Processing
Strategic Travel Planning
Workload Sharing
Getting peripheral work away from UW’s
New Intake Procedures
Upfront Detailed Review by Director or Branch Chiefs
Delay in accepting applications with major deficiencies
Avoid Last Minute Surprises

21. Priorities Consistency Between Offices Weekly Branch Chief Meetings
Sharing Staff
Waiver Discussions
Regional Loan Committee
Participation in National Loan Committee
Both offices host trainings for the entire region

22. Priorities Hire New Staff Continue to Improve Timeframes
223(f) Repair Escrow Releases
Production will likely start processing 223f repair escrow releases
Periodic Checks by Lenders during Repair Period
Streamline Construction Administration
Monitoring Soft Markets

23. Soft Markets in West Region
Northern Colorado and Boise due to pipeline concerns
Energy Markets, Area of Dakota’s and Wyoming
City of Denver, unless affordable
Phoenix and Las Vegas markets are balanced but we’re monitoring conditions especially in areas of significant development of high-end luxury, apartment projects
Market conditions are softening in Chandler/Gilbert, North Scottsdale, South Tempe and Central Phoenix North.
Market conditions are soft and vacancy rates are high in Northeast Phoenix, Central Phoenix South, and North Tempe.
Downtown submarkets in Portland and Seattle are experiencing a slight uptick in vacancy rates and decline in rent growth. May move from balanced to slightly soft by the end of the year.

24. Underwriting Issues that Delay Acceptance/Processing
Undisclosed/Unaddressed Environmental Issues
Noise concerns, Phase I/ Phase II issues, SHPO, THPO, or Fish and Wildlife Issues
Incomplete 3rd Party Reports
Intrusive Testing and/or WDO Report as a repair item
Missing Completed Intrusive Testing reports
Not extrapolating Life Safety Repairs
Developer’s Like-Kind Experience for d4’s
For mortgages over $25,000,000, Lenders must demonstrate that Large Loan borrowers have substantial prior experience developing, constructing and owning multifamily projects that are similar in size and scope to what is proposed

25. Issues that Delay Processing/Closings:
Secondary Financing
No monetary liens ahead of HUD’s Loan
Affordability Restrictions can be in 1st position, if:
Resident and Affordability Restrictions do not conflict with HUD’s requirements, and
Government entity made or will make a financial contribution to the property.
No post foreclosure requirements of notifications or monitoring
HOA Fees and Restrictions
Cannot conflict with HUD’s regulations or provide a risk because of unpredictable increases in fees
Attorneys and/or Title Companies unfamiliar with HUD’s Requirements
Undisclosed Title Concerns
Previously existing restrictive covenants, development agreements, water rights, unusual easements, etc.

26. Asset Management Updates
RAD for PRACs.  We are expecting a Notice out in late fall that will detail how 202 PRACs can utilize the RAD platform PRACs receive rental subsidies that are similar to Section 8,but the regulations don’t allow 202 PRACS to take on debt.
Prepayment Approvals We are expecting a Mortgagee letter to be issued about updates to the HUD Form 9807 prepayment process.  Not significant changes but areas where we are trying to make the process more streamlined (faster).
Rent Comp Studies HQ is also looking at ways to streamline the Rent Comp Study (RCS) process.  However, HUD allows the use of a lender ordered MAP appraisal to serve as a substitute for the HUD required RCS if certain conditions are met as outlined in Chapter 9 of the Section 8 renewal guide.
Assigned Account Executives As always, servicing questions can be answered by Account Executives, (AE).  These can change so we encourage folks to check our property listings : If you are working on refinancing an existing HUD property, we strongly encourage you to have a conversation with your AE. 
Asset Management Processing Servicing items can be sent to our centralized mailboxes:  and

27. New Closing Checklists
Published May 2018

28. Questions or Comments?