Categories
Industry Updates

HUD MAP Guide – Key Radon Measurement and Mitigation Updates

The HUD Office of Multifamily Housing Programs has released its updated Multifamily Accelerated Processing (MAP) Guide. Released on December 18, 2020, the guidance goes into effect on March 18, 2021. Key updates to radon measurement and mitigation requirements include:

  • Section 9.6.3.2.C – the previous guidance permitted the radon professional to conclude that testing or mitigation isn’t necessarily based on a physical inspection of the property, the characteristics of the buildings, and other valid justifications. The updated guidance requires a valid justification for requesting exemption of testing or mitigation, based on criteria detailed in the applicable ANSI/AARST standard, to be provided by the radon professional in the form of a signed letter.
  • Section 9.6.3.2.C – the previous guidance excluded testing and mitigation for Section 223(f) projects located in Zone 3 of the EPA’s Map of Radon Zones. The updated guidance removes this exclusion, requiring testing and mitigation for all Section 223(f) projects.
  • Section 9.6.3.2.D – the previous guidance permitted random screening of 25% of ground contact units in each building in lieu of the full 100% characterization required by the measurement standard. The updated guidance removes this deviation, requiring radon testing to be conducted in full compliance with the ANSI/AARST measurement standard, which includes 100% testing of ground contact units in each building.
  • Section 9.6.3.2.G – the previous guidance permitted a ‘worst-case’ estimate for mitigation to be conducted as a non-critical repair. The updated guidance requires the lender to include a firm scope of work and all related costs for mitigation in the Firm application. In order to provide the firm scope of work and all related costs for mitigation, the pilot test and building evaluation will need to be treated as a critical repair.
  • Section 9.6.3.2.I – the previous guidance provided general parameters for the ongoing operation, maintenance, and monitoring (OMM) requirements when a mitigation system is installed at a property. The updated guidance requires an OMM program meeting the requirements of the ANSI/AARST mitigation standard to be maintained at a property containing a mitigation system for the duration of the insured mortgage. The OMM plan must be submitted to HUD upon completion of the mitigation project.
  • Section 9.6.3.2.J – the previous guidance did not include a provision for ensuring existing mitigation systems at a property are functioning correctly and meet the minimum requirements of the mitigation standard. The updated guidance requires existing mitigation systems at a property to be evaluated by a radon professional to confirm compliance with the ANSI/AARST mitigation standard and to verify they are functioning correctly. If applicable, corrective action must be taken by a radon professional to address any deficiencies with the mitigation systems.
  • Section 9.6.3.2.K – the previous guidance permitted a ‘worst-case’ cost estimate for mitigation and did not require inclusion of ongoing OMM costs. The updated guidance requires the lender to provide a firm scope of work and all related mitigation costs, to include ongoing OMM costs, in the Firm application.

For loans where the Firm application is submitted prior to the effective date, the lender must choose whether the 2016 or 2020 version of the MAP Guide will be utilized, stating this choice in the application. The lender may not mix underwriting provisions from both guides during the 90-day transition period.

The updated guidance is being implemented as we work to overcome the radon measurement and mitigation challenges created by the COVID-19 pandemic. The COVID-19 measurement and mitigation guidance released by HUD’s Office of Multifamily Housing Programs on April 2, 2020 remains in effect. Check out our April 3, 2020 update on this guidance.

The updated guidance is specific to projects being processed under the MAP Guide. We anticipate similar radon measurement and mitigation guidance for projects being processed under the Office of Residential Care Facilities Section 232 Handbook in the future. The COVID-19 measurement and mitigation guidance released by ORCF on April 10, 2020 remains in effect. Check out our April 10, 2020 update on this guidance.

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. As the largest provider of radon measurement and mitigation services to HUD lenders, you can rely on our knowledge and expertise to provide flexible options to ensure your transactions continue to move forward in a timely and cost-effective manner. Follow our LinkedIn portal for timely updates related to the rollout of HUD’s updated MAP Guide.

Categories
Industry Updates

Indiana Adopts Emergency Rule for Radon Measurement and Mitigation

Effective July 8, 2020, the Indiana State Department of Health has promulgated an emergency rule updating its radon measurement and mitigation requirements. The rule significantly impacts multifamily and residential care lending transactions being processed through HUD, Fannie Mae, and Freddie Mac. Key points of the emergency rule include:

  • as a condition of licensure, radon contractors are required to maintain certification through a proficiency program recognized by the EPA.
  • all measurement, mitigation, and QA/QC activities must be conducted in accordance with the applicable AARST/ANSI standard.
  • a non-licensed person may only perform measurement and/or mitigation on a building that they own and occupy.

If you have a project located in Indiana, consider working with our company to ensure you are in compliance with this emergency radon rule. With a proven track record spanning 15 years and more than 5,900 completed projects across the country, Protect Environmental provides expert service from its trusted professionals to provide peace of mind protection to property owners seeking efficient and effective management of environmental risks and liabilities. For more information about putting our expertise to work for you, contact us today or give us a call at 502-410-5000.

Categories
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.

HUD-Update-2020-featured-image