In 2000, the U.S. Department of Housing and Urban Development (HUD) instituted the Multifamily Accelerated Processing (MAP) program in order to expedite FHA loan applications for multifamily purchasing, refinancing, new construction or rehabilitation. For years, leading HUD Approved Lenders have relied on Hodges & Pratt to conduct MAP Appraisals and Market Studies. As specialists in this program, we have completed numerous MAP assignments over the past 15 years throughout the southeastern United States. Specific programs completed include: 221(d)(4) – new construction or substantial rehabilitation of multifamily housing for families, elderly, and the handicapped. New construction loans reflect both market-rate and affordable product: 223(f) – purchase or refinancing of existing multifamily rental housing.
Hodges & Pratt has experience appraising multifamily properties for Fannie Mae and Freddie Mac. The aim of these entities is to keep a strong, reliable flow of mortgage funds throughout the country. Working primarily with commercial banks, Fannie Mae provides financing services for a variety of multifamily projects that contain five or more units through a nationwide network of Delegated Underwriting and Servicing (DUS®) and other lenders. There are also programs that service affordable multifamily housing projects through investments in properties that qualify for housing tax credits. Freddie Mac deals with smaller banks and provides a full range of mortgage products for acquisition, refinance, or low to moderate rehabilitation of multifamily complexes. Hodges & Pratt has the flexibility to work with both entities, providing compliant and informative appraisals within various guidelines.
When an application for a conventional loan crosses your desk, a primary piece of the underwriting process will be ordering an appraisal on the property. Hodges & Pratt has been working with lending institutions of all sizes for years. Compiling information from the property itself and the most relevant comps, our reports will give you the information you need to either approve or deny a loan request. With our involvement in numerous projects throughout the Southeast, Hodges & Pratt is qualified, certified, and ready to fill your institution’s appraisal needs.
Government subsidized housing, also known as Section 8 housing, can be a solid investment, providing a steady stream of income to the investor. Appraisal techniques are different for this type of property, but Hodges & Pratt understands the intricacies of this kind of valuation. We have appraised Section 8 housing complexes throughout the Southeast.
Tenants can also obtain affordable housing through the Low Income Housing Tax Credit (LIHTC) program. The LIHTC program is the largest source of affordable housing in the country. Instead of a voucher system, like Section 8 housing employs, an LIHTC developer receives tax credits as an equity source along with a developer’s fee. There are maximum rents that can be charged at these complexes based on the area median income (AMI) levels for the market. As you prepare for your application to the state housing finance agency, contact Hodges & Pratt. Our researchers and certified appraisers will help you ascertain the project’s viability and assist in preparing the application.
Government agencies rely on Hodges & Pratt for their work in eminent domain situations. Our appraisal services help determine just compensation in these cases. We take into consideration the value of the property before and after acquisition so the property owner can be given fair compensation and to assess any potential damages as a result of the acquisition. Our company has been involved in eminent domain appraisals throughout the state. Let us help you take the guesswork out of determining fair compensation.
Appraising the value of land zoned for a variety of uses, along with existing properties, is no problem for Hodges & Pratt. We are experienced with methodology of valuing office, medical office, retail, industrial, and special-purpose properties. Data is gathered, information is compiled, and we then advise our clients of the worth of the property they are considering as an investment and/or for loan underwriting.