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What is HUD Form 92264?

HUD Form 92264: Multifamily Summary Appraisal Report

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HUD Form 92264, also known as the Multifamily Summary Appraisal Report, is one of the essential forms that an appraiser will need to complete and submit to HUD before a property can be approved for HUD multifamily financing. Understanding the form-- and its contents, can be extremely helpful for potential HUD multifamily borrowers, as it will help them appreciate exactly how the property want financing for will be evaluated by an appraiser.

Overall, the appraiser will analyze the property’s location, expenses, taxes, earning capacity, and assess the market need in the area. They will also look at the quality and value of the overall property as collateral for a HUD-insured loan, as well as attempt to determine the potential duration of the project’s earning capacity. In the following parts of this article, we’ll break down the Multifamily Summary Appraisal Report by section and summarize the contents.

A. Location and Description of Property

This part of the report includes information such as:

  • Project address

  • Building type (i.e. high rise, row house, townhouse, etc.)

  • Number of stories

  • Foundation construction (i.e. slab on grade, partial basement)

  • Basement information

  • Whether project is proposed or fully constructed

  • Recreational facilities

  • Accessory buildings

  • Neighborhood information, including:

    • Classification: Urban, Suburban, Rural

    • Level of overall development

    • Growth rate

    • Property value trends

    • Supply/demand

    • Rent control information

    • Present land use

    • Full neighborhood description, including:

      • Neighborhood boundaries

      • Neighborhood stability

      • Vacancies

      • Other marketability factors

  • Site information and dimensions

  • Zoning information, including:

    • Recent or expected changes

    • Compliance levels:

      • Legal

      • Illegal

      • Legal nonconforming

  • Highest and Best Use (as well as current use and intended uses)

  • Intended Rents (including market rent, subsidized rents and percentages)

  • Building information, including:

    • Year built

    • Structural system

    • Floor system

    • Exterior finish

    • Heating-A/C System

B. Additional Information Concerning Land or Property

This section includes information such as:

  • Relationship between seller and buyer (may not be applicable for refinances)

  • If property has been sold in the last 36 months (if so, explanation also required)

  • Unusual site features, such as rock formations, erosion, and poor drainage

  • Estimate of income, including

      • Number of units and unit type

      • Square feet of units

      • Total monthly rent

      • Commercial income, including:

        • Level

        • Square feet

        • Estimate of income

  • Non-revenue producing space

  • Personal benefit expense (PBE)

  • Landlord and tenant paid amenities, including:

    • Disposal/Compactor

    • Refrigerator

    • Air Conditioning

    • Microwaves

    • Window accessories (i.e blinds, drapes)

    • Dishwashers

    • Carpets

    • Balconies

    • High ceilings/skylights

    • Patios/fireplaces

    • In-unit laundry (or appropriate hook-ups)

D. Amenities and Services Included in Rent

Section D includes other project amenities, such as:

  • Security systems

  • Laundry machines

  • Swimming Pool/Hot tub

  • Steam room/sauna

  • Exercise room

  • Racquetball/tennis court

It also includes services, such as:

  • Gas/electric:

    • Heating

    • Hot water

    • Cooking

    • Air conditioning

E. Estimates of Annual Expense

This part of the HUD multifamily appraisal pertains to maintenance and operating expenses, such as:  

  • Repairs

  • Decorating

  • Ground expenses

  • Insurance

  • Other

  • Total maintenance

  • Replacement reserves

  • Extermination

  • Administrative costs, including:

    • Management

    • Advertising

    • Total Administrative

  • Operating expenses:

    • Payroll costs

    • Water and gas expenses

    • Garbage/trash costs

    • Lighting

    • Fuel

    • Elevator

F. Income Computations

This section attempts to break down the overall income and expenses for a property, including:

  • Residential and ancillary project income

  • Commercial income

  • Overall occupancy percentages

G. Replacement Cost

The replacement cost section analyzes the potential estimated cost to replace a multifamily property. It includes line items such as:

  • Land improvements (including unusual improvements)

  • Main and accessory buildings

  • Builder's General Overhead

  • Builder's Profit

  • Architectural Fee Design

  • Interest and other financing costs

  • Taxes and insurance

  • FHA loan costs, including:

    • FHA exam and inspection fees

    • FHA mortgage insurance

  • Title and recording fee costs

  • Legal and organizational costs, such as:

    • Consultant/broker fees

    • Construction cost certification audit fees

    • Builder and Sponsor Profit & Risk Allowance (BSPRA)

    • Contingency reserves

J. Project Site Analysis and Appraisal

This part of the appraisal analyzes the site and neighborhood in an attempt to create a broader picture of the value of the property. Required information in this section includes:

  • The acceptability of the neighborhood

  • The size of the property

  • Acceptability of site zoning

  • Utility availability

  • Market need (based on proposed rents)

  • Value fully improved, including:

    • Comparable sales of similar properties, with information such as:

      • Sale price

      • Date of sale

      • Address

      • Sale price per sq. ft.

  • Acquisition cost

  • Additional costs

    • Investment interest

    • Title and recording fees

    • Legal fees, zoning fees

  • Value of Land and Cost Certification, including:

    • Valuation of land *fully improved

    • Various other calculations

K. Income Approach to Value

In the Income Approach to Value part of the report, the appraiser will analyze:

  • The property’s estimated remaining economic life

  • Project cap rate, including:

    • Cap rate comparisons

    • “Band of investment” analysis

  • Cash flow vs. equity comparison

  • Overall net income

  • Various other calculations

L. Comparison Approach to Value

In the comparison approach to value part of the HUD multifamily appraisal, the appraiser will analyze three comparable properties that have recently sold on the local market. If these properties are substantially different than the subject properties, the analysis will be adjusted for that based on specific, listed factors. Appraisers must be include:

  • Sales prices of all properties

  • Distance to subject property (for each comparison property)

  • Address

  • Gross rent multiplier

  • Gross annual rent

  • Sales price per unit/room

M. Cost Construction Analysis

The final section of the form, before signatures, is the construction cost analysis, which must be competed by a certified construction cost analyst. This analysis includes:

  • Non-residential building costs, such as:

    • Commercial development

    • Parking/garage

    • Additional land improvements

  • Estimated off-site costs


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