1. (d)(4) Basics Training – Part II Concept through Firm Application
Concept Packages and Meeting
Purpose – to introduce HUD to a conceptual version of the development with enough support to warrant an encouragement to submit a Preapplication
How do you know if you have an I-O-I?
- Essentially, if the BWR and/or a key financial or operational participant of the BWR (such as a partner or manager) is also a key financial or operational participant in the GC or ARCH, you may have an I-O-I and will need to do some additional research.

2. (d)(4) Basics Training – Part II Concept through Firm Application
Concept Packages and Meeting
What does HUD want to see in a Concept request?
Substance
Focus on experience directly related to the property type they are proposing. Be as specific as possible
Identifying and mitigating potential issues and long lead items
Environmental
Market
Asset Management
Mortgage Credit
Other
How do you know if you have an I-O-I?
- Essentially, if the BWR and/or a key financial or operational participant of the BWR (such as a partner or manager) is also a key financial or operational participant in the GC or ARCH, you may have an I-O-I and will need to do some additional research.

3. (d)(4) Basics Training – Part II Concept through Firm Application
Concept Packages and Meeting
Best Practices
Be Concise
Anticipate HUD’s questions and answer them
Be consistent
No surprises
Bottom line, if you think it might be an issue, bring it up and discuss the mitigant
What do you do when you receive an Encouragement or Discouragement from HUD?
How do you know if you have an I-O-I?
- Essentially, if the BWR and/or a key financial or operational participant of the BWR (such as a partner or manager) is also a key financial or operational participant in the GC or ARCH, you may have an I-O-I and will need to do some additional research.

4. (d)(4) Basics Training – Part II Concept through Firm Application
Preapplication
Purpose
Prove out demand
Establish underwriting rents and expenses
Establish land value
Get HEROS approved or establish what needs to be done to get HEROS approved
Show development team experience
Work through issues identified at Concept
How do you know if you have an I-O-I?
- Essentially, if the BWR and/or a key financial or operational participant of the BWR (such as a partner or manager) is also a key financial or operational participant in the GC or ARCH, you may have an I-O-I and will need to do some additional research.

5. (d)(4) Basics Training – Part II Concept through Firm Application
Preapplication
Properly answering narrative questions
Provide facts
Sometimes, summarize and point to section of narrative and/or submission package where HUD can find details
Don’t be redundantly redundant
Say why you agree with the Market Analyst’s and Appraiser’s conclusions. Let HUD know you looked at the market, the comps.
Discuss similarities/differences in expenses
Provide lender calculation of IOD and compare to MAP Guide requirements
Don’t use comment boxes to explain everything about the deal
Make sure Phase I provides explanation of what needs to be done with issues, and confirm what steps are being/have been taken (It is critical to get ahead of SHPO and THPO and other issues)
If it is a larger deal ($50MM or above?), consider providing ballpark net worth and liquidity of ownership
Justifying land value higher than price paid less than 3 years prior to submission
Clearly identify any waivers/special conditions
How do you know if you have an I-O-I?
- Essentially, if the BWR and/or a key financial or operational participant of the BWR (such as a partner or manager) is also a key financial or operational participant in the GC or ARCH, you may have an I-O-I and will need to do some additional research.

6. (d)(4) Basics Training – Part II Concept through Firm Application
Preapplication
Best Practices
Underwrite the deal – It is the Lender’s job to provide proper support to get HUD to issue an Invitation
When do you do the site visit and “taste the dirt?”
Make sure you provide all the documentation required. The checklist does not contain every exhibit required
How do you know if you have an I-O-I?
- Essentially, if the BWR and/or a key financial or operational participant of the BWR (such as a partner or manager) is also a key financial or operational participant in the GC or ARCH, you may have an I-O-I and will need to do some additional research.

7. (d)(4) Basics Training – Part II Concept through Firm Application
Preapplication
HUD’s Review
Process
Internal Partners (EMAD, FHEO, ECO, DBLS, AM)
Technical Specialists involvement
How do you know if you have an I-O-I?
- Essentially, if the BWR and/or a key financial or operational participant of the BWR (such as a partner or manager) is also a key financial or operational participant in the GC or ARCH, you may have an I-O-I and will need to do some additional research.

8. (d)(4) Basics Training – Part II Concept through Firm Application
Preapplication
What to do if you get a rejection letter
Don’t take it personal, it happens to the best of us
Take a deep breath, call HUD and discuss to see if you can get some additional insight
If you choose to appeal, don’t automatically provide a rebuttal to their reasons for rejection, figure out if you can do other/additional things to get HUD comfortable
How do you know if you have an I-O-I?
- Essentially, if the BWR and/or a key financial or operational participant of the BWR (such as a partner or manager) is also a key financial or operational participant in the GC or ARCH, you may have an I-O-I and will need to do some additional research.

9. (d)(4) Basics Training – Part II Concept through Firm Application
Purpose – To fully underwriter the borrowers, review plans, specs, costs, etc
Properly answering narrative questions - Same as Preapplication, plus
Update information from the preapp that needs updating
Be specific about changes from the preapp and why it is different
Provide lender calculation of IOD and compare it to the MAP Guide required minimums
Don’t use comment boxes to explain everything about the deal
Clearly identify any waivers/special conditions
Do proper due diligence on Mortgage Credit
How do you know if you have an I-O-I?
- Essentially, if the BWR and/or a key financial or operational participant of the BWR (such as a partner or manager) is also a key financial or operational participant in the GC or ARCH, you may have an I-O-I and will need to do some additional research.

10. (d)(4) Basics Training – Part II Concept through Firm Application
Best Practices
Underwrite the deal – It is the Lender’s job to provide proper support to get HUD to issue a Firm Commitment
Again, provide an explanation of changes between Preapplication and Firm
Properly and concisely answer HUD’s preapp conditions
Thoroughly check e-Tool and make sure it is complete, answer flags, make sure all specialty documents and reports are uploaded
Lender (Loan Committee) QCP the Application, including R4R schedule, repairs, etc.
Don’t leave anything unsaid
How do you know if you have an I-O-I?
- Essentially, if the BWR and/or a key financial or operational participant of the BWR (such as a partner or manager) is also a key financial or operational participant in the GC or ARCH, you may have an I-O-I and will need to do some additional research.

11. (d)(4) Basics Training – Part II Concept through Firm Application
HUD’s Review
Full Mortgage Credit review
OGC early issues that will need to be resolved
Internal Partners (EMAD, FHEO, ECO, DBLS, AM)
Technical Specialists involvement
How do you know if you have an I-O-I?
- Essentially, if the BWR and/or a key financial or operational participant of the BWR (such as a partner or manager) is also a key financial or operational participant in the GC or ARCH, you may have an I-O-I and will need to do some additional research.

12. (d)(4) Basics Training – Part II Concept through Firm Application
What to do if you get a rejection letter – Same as Preapplication
How do you know if you have an I-O-I?
- Essentially, if the BWR and/or a key financial or operational participant of the BWR (such as a partner or manager) is also a key financial or operational participant in the GC or ARCH, you may have an I-O-I and will need to do some additional research.

13. (d)(4) Basics Training – Part II Concept through Firm Application
Questions?
How do you know if you have an I-O-I?
- Essentially, if the BWR and/or a key financial or operational participant of the BWR (such as a partner or manager) is also a key financial or operational participant in the GC or ARCH, you may have an I-O-I and will need to do some additional research.