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Industry Updates

HUD Releases Residential Care Facility Radon Testing Guidance in Response to Coronavirus (COVID-19) Emergency

The HUD Office of Residential Care Facilities has released guidance for radon testing during the COVID-19 emergencyReleased on April 10, the guidance contained within Mortgagee Letter 20-10 is effective immediately and reads: 

Regarding asbestos surveys and radon testing: In situations where interior access to the subject is limited and the asbestos survey (if applicable) and/or radon testing cannot be completed prior to application submittal, ORCF will require a Firm Commitment condition requiring the asbestos survey and/or radon testing (and any required mitigation to be identified) prior to closing. Such radon testing must test 100% of the ground level units/rooms and 10% of the upper floor units/rooms in all buildings included in the project.

The guidance provides flexibility for managing radon testing in situations where interior access to the subject property is limited. Because radon testing requires separate mobilizations for device placement and retrieval, the ability to submit applications without the radon report helps to ensure transactions don’t become stalled. However, when utilizing this option, testing of 100% of ground contact locations (and 10% of upper floor locations) is necessary and HUD will require a condition to be added to the Firm Condition requiring testing to be completed before closing.   

Radon mitigation, when required, must also be identified prior to closing. When testing is conducted after the Firm Commitment, completion of the pilot test needed to determine the firm non-critical repair budget for closing may create timing challenges. We recommend completing the required radon testing as soon as interior access is made available to the facility to prevent the potential for delays in the lending transaction when the need for radon mitigation is identified.  

As always, the trusted professionals at Protect Environmental stand ready to assist you in determining the most efficient and economical approach for managing radon and chemical vapor intrusion. During the COVID-19 emergency, you can rely on our expertise to provide flexible options to ensure your transactions continue to move forward – follow our LinkedIn portal for timely updates and information while this situation continues to evolve.

Categories
Industry Updates

HUD Releases Multifamily Radon Testing Guidance in Response to Coronavirus (COVID-19) Emergency

The HUD Office of Multifamily Housing Programs has released guidance for radon testing during the COVID-19 emergencyReleased on April 2, the guidance is effective immediately and reads:

For MF FHA-insured lending, in situations where interior access to the subject property is limited, and the asbestos surveys, lead-based paint hazard evaluations, and/or radon testing cannot be completed prior to application submittal, MFH Production will allow lenders to submit applications without these reports. However, MFH Production will require these reports before issuing a Firm Commitment. For new construction and substantial rehabilitation properties where asbestos clearance sampling, lead clearance examinations, or radon testing takes place after construction, all mitigation reports, including follow-up sampling, examinations, or testing, must be submitted to HUD staff at the final completion inspection, before occupancy.

The guidance provides flexibility for managing radon testing in situations where interior access to the subject property is limited. Because radon testing requires separate mobilizations for device placement and retrieval, and typically includes all ground contact locations (and a percentage of upper floor locations) at the property, being able to submit applications without the radon report helps ensure transactions don’t become stalled. However, HUD does require testing to be completed before issuing the Firm Commitment.

Radon mitigation, when required, is not specifically addressed in the guidance. In most instances, completion of the pilot test needed to determine the firm non-critical repair budget for closing will not be feasible. When applicable, we anticipate HUD will permit flexibility in providing a ‘worst-case’ budget for mitigation to ensure transactions can close.  

As always, the trusted professionals at Protect Environmental stand ready to assist you in determining the most efficient and economical approach for managing radon and chemical vapor intrusion. During the COVID-19 emergency, you can rely on our expertise to provide flexible options to ensure your transactions continue to move forward – follow our LinkedIn portal for timely updates and information while this situation continues to evolve. For LEAN transactions, we anticipate guidance from ORCF to be released soon for radon testing in residential care facilities during the COVID-19 emergency.

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