A seismic report, also referred to as a seismic assessment, gauges the seismic risk (probability of an earthquake) of a particular property. It may include calculations of the SML (Scenario Expected Loss) and PML (Probable Maximum Loss) consistent with current building codes. Seismic reports are required in Seismic Zones 3 and 4, which includes parts of California, large parts of Alaska and Hawaii, certain parts of Washington, Oregon, and Nevada, and a small portions of Arkansas, Tennessee, Illinois, and Kentucky. Reports involve three stages, which include:

• Tier 1 Evaluation: Initial Screening Phase
• Tier 2 Evaluation: Evaluation Phase
• Tier 3 Evaluation: Detailed Evaluation Phase

Fortunately for borrowers, many properties will not have to go past the first or second stage, depending on the risk profile of the property as assessed by the Seismic Report.

A seismic report, also referred to as a seismic assessment, gauges the seismic risk (probability of an earthquake) of a particular property. It may include calculations of the SML (Scenario Expected Loss) and PML (Probable Maximum Loss) consistent with current building codes. Seismic Reports involve three stages, which include:

• Tier 1 Evaluation: Initial Screening Phase
• Tier 2 Evaluation: Evaluation Phase
• Tier 3 Evaluation: Detailed Evaluation Phase

Fortunately for borrowers, many properties will not have to go past the first or second stage, depending on the risk profile of the property as assessed by the Seismic Report. Sources: hud223a7.loan/glossary/seismic-report and www.hud223f.loans/seismic-reports

A seismic report is used to assess the seismic risk (probability of an earthquake) of a particular property when applying for a HUD multifamily loan, such as the HUD 221(d)(4) loan or HUD 223(a)(7) refinance. Seismic reports are only required for properties located in seismic zones 3 and 4, which consist of all of California, large swaths of Alaska and Hawaii, certain parts of Idaho, Montana, Oregon, Washington, and Nevada, and a small portion of land in Tennessee, Kentucky, Illinois, and Arkansas. The report may include calculations of the SML (Scenario Expected Loss) and PML (Probable Maximum Loss) consistent with current building codes.

For more information, please see the following sources:

• HUD Seismic Assessments: What You Need to Know
• HUD Multifamily Construction Loans
• HUD Multifamily Loans
• Terms, Qualifications, and Guidelines
• Seismic Zone Map

Seismic Reports are required in Seismic Zones 3 and 4, which includes parts of California, large parts of Alaska and Hawaii, certain parts of Washington, Oregon, and Nevada, and a small portions of Arkansas, Tennessee, Illinois, and Kentucky. Reports involve three stages, which include:

• Tier 1 Evaluation: Initial Screening Phase
• Tier 2 Evaluation: Evaluation Phase
• Tier 3 Evaluation: Detailed Evaluation Phase

Fortunately for borrowers, many properties will not have to go past the first or second stage, depending on the risk profile of the property as assessed by the Seismic Report.

To learn more about HUD multifamily construction loans like the HUD 221(d)(4) loan, fill out the form on this page and a HUD lending expert will get in touch.

Obtaining a seismic report for commercial real estate financing can provide a number of benefits. It can help lenders assess the seismic risk of a particular property, which can help them make more informed decisions about the loan. Additionally, it can help lenders determine the PML (Probable Maximum Loss) and SML (Scenario Expected Loss) of a property, which can help them determine the amount of loan they are willing to provide. Finally, it can help lenders determine the terms of the loan, such as the interest rate and repayment terms.

For more information about HUD multifamily construction loans like the HUD 221(d)(4) loan, please click here. For more information about HUD multifamily loans, please click here. For more information about the terms, qualifications, and guidelines for HUD 223(a)(7) refinance loans, please click here. For more information about seismic zones 3 and 4, please click here.

For properties located in certain areas which are at high risk for earthquakes, a lender may require a borrower to get a seismic report, also referred to as a seismic assessment. The assessment will generally take the form of a Probable Maximum Loss (PML) assessment, which will estimate the risk of structural damage estimate in a worst-case scenario. If a seismic report is not obtained, the lender may not be able to accurately assess the risk of structural damage in the event of an earthquake, which could lead to higher interest rates or other unfavorable terms for the borrower. Seismic reports are generally only required for properties located within Seismic Zones 3 and 4, which consists of all of California, significant parts of Alaska and Hawaii, Oregon, Washington, and Nevada, as well as a small area in the south, including parts of Tennessee, Kentucky, Illinois, and Arkansas.

To learn more about HUD multifamily construction loans like the HUD 221(d)(4) loan, fill out the form below and a HUD lending expert will get in touch.