Ancient HistoryAncient History

FHA FHA 1934 - 19861934 - 1986

31,987 loans31,987 loans

3,180,693 units3,180,693 units

about about 61,00061,000 units/yearunits/year

More recent historyMore recent history

FHA FHA 1987 - 20061987 - 2006

17,166 loans17,166 loans

2,389,844 units2,389,844 unitsabout about 60,00060,000 units units

per per year financed, or year financed, or refinancedrefinanced

Market RateMarket Rate

Rents vs SubsidyRents vs Subsidy

Mortgage and Interest Mortgage and Interest

RateRate

Initial attractionInitial attraction

Market Market Identification of a siteIdentification of a site What can go wrong?What can go wrong?

FlirtingFlirting

Scope of the project - marketScope of the project - market Local political landscape – Local political landscape –

zoning, design, zoning, design, traffic, etc.traffic, etc.

Putting the team togetherPutting the team together

The First dateThe First date

DeveloperDeveloper InvestorsInvestors LenderLender ArchitectArchitect General ContractorGeneral Contractor LawyersLawyers Management AgentManagement Agent

Going SteadyGoing Steady

FHA vs other sources of FHA vs other sources of financing?financing?

Lender engagementLender engagement ZoningZoning EnvironmentalEnvironmental

Meeting the ParentsMeeting the Parents

Concept meeting with HUDConcept meeting with HUD TimingTiming APPSAPPS Waivers?Waivers?

A pre-engagement ring?A pre-engagement ring?

Preapplication submissionPreapplication submissionMarketMarket

EnvironmentalEnvironmental

Rents / ExpensesRents / Expenses

Getting ready to pop the Getting ready to pop the questionquestion

Preparation of Firm Preparation of Firm Commitment Commitment applicationapplication

A&EA&E Cost – (Davis who?)Cost – (Davis who?) ValuationValuation Mortgage CreditMortgage Credit

Getting ready to pop the Getting ready to pop the questionquestion

Preparation of Firm Preparation of Firm Commitment Commitment applicationapplication

Asset Mgt issuesAsset Mgt issues Fair HousingFair Housing LegalLegal

The ring . . .The ring . . .

Firm Commitment Firm Commitment application application submitted to submitted to HUDHUD

Deficiencies?Deficiencies? Firm Commitment issuedFirm Commitment issued

Planning the big dayPlanning the big day

Firm Commitment acceptedFirm Commitment accepted Rate lock – GNMA security Rate lock – GNMA security Prep the closing documentsPrep the closing documents

The Happy DayThe Happy Day

Conditions to the Firm?Conditions to the Firm? Pre-closing passing papersPre-closing passing papers Pre-Construction Pre-Construction

conferenceconference Meet with Asset MgtMeet with Asset Mgt Bring DonutsBring Donuts