Multifamily Rental Project Closing Documents:
Pursuant to the Paperwork Reduction Act (“PRA”), HUD has issued a Federal Register notice announcing completion of the notice and comment process, and that the Office of Management and Budget (“OMB”) has assigned a control number to the Closing Documents. The Notice can be accessed from the following link: http://www.gpo.gov/fdsys/pkg/FR-2014-07-11/pdf/2014-16315.pdf.
Effective Date: The revised Closing Documents are required for transactions that receive a firm commitment on or after the date that is 30 calendar days after the date of the Federal Register Notice, but may be used immediately upon publication of the Notice.
IMPORTANT UPDATE, September 17, 2014: After further consideration, HUD will allow a grace period to permit the previous versions of the Multifamily closing documents (i.e., those in effect from September 1, 2011 to August 9, 2014, now designated with a “-11” suffix on HUDclips) to be used for transactions with a firm commitment issued on or after August 10 2014, provided: 1. the Multifamily loan application was in process for a period of 60 days or greater prior to August 10th; and 2. the loan closes within 180 days of August 10, 2014.
Any project loans meeting these conditions will have the option of continuing to use the previous version of Multifamily loan closing documents. Loans with firm commitments issued on or after August 10, 2014, and not meeting these conditions must use the 2014 Multifamily loan documents, no exceptions allowed.
This website presents the revised Closing Documents in redline/strikeout format against the existing Closing Documents (2011) so that industry participants and interested members of the public can readily identify the changes that were made to the documents. Any document that was not revised through the PRA renewal process is shown as “Unrevised”.
Pursuant to the PRA, HUD is no longer required to receive, consider, and respond to comments on the Closing Documents. As a matter of good governance, however, HUD will accept informal comments and questions about the Closing Documents, and provide public responses, as was its practice with the 2011 documents. HUD is most interested in receiving comments or suggestions concerning any needed edits for grammar, punctuation, and formatting, as well as any needed technical corrections for program consistency. Such comments and questions about implementation may be sent to HUD through the email address found on the following website: http://portal.hud.gov/hudportal/HUD?src=/program_offices/general_counsel/mffaqs.
The official version of the Closing Documents that must be used for FHA multifamily rental project closings will be available at HUD’s Forms Resources webpage:
NOTE: The documents published below are not to be used for any closings—this posting is for informational purposes only.
Previous Federal Register Notices
October 29, 2013, 60-day notice: http://www.gpo.gov/fdsys/pkg/FR-2013-10-29/pdf/2013-25574.pdf
April 1, 2014, 30-day notice: http://www.gpo.gov/fdsys/pkg/FR-2014-04-01/pdf/2014-07271.pdf