HUD 221(d)(4) Third Party Report Requirements & Guidelines
When applying for FHA multifamily construction financing, several third party reports must be included. These reports are scheduled and paid for the the borrower. Below are some of the standard third party reports:
Environmental Assessments, including:
Phase 1 Environmental Assessment
Phase 2 Environmental Assessment (if necessary)
HUD Seismic Report (if necessary)
HUD also requires a HUD-approved third party contractor to review of the final construction and architectural documents. In addition, a Capital Needs Assessment (CNA) report is also required for substantial rehab projects to determine possible repairs to existing structures.
Be aware that depending on the project, additional reports which are not listed above may be required to complete the application process. Also, costs for these reports can be reimbursed at closing.
The following forms along with technical analysis and standard certifications from third party analysts are required.
To learn more, read Section 2: Third Party Reports of the Section 221(d)(4) Checklist.