Section 232 is an FHA-Insured loan product for nursing homes, assisted living facilities, and board and care facilities and may be used for purchase, refinance, new construction or substantial rehabilitation of a project. The LEAN process for 232 applications employs standardized work product and processes to obtain timely and consistent results. Applications are assembled and underwritten by FHA-approved lenders prior to submission to HUD for Firm Commitment.

In this program, current surveys are required with a few limited exceptions. The ALTA/ACSM survey must include Table A items 1 through 4, 6a and 6b, 7a, 8, 9, 10a and b, 11, 12,13, 16, 17, 18, and 19 . Important to note here is that Table A 1 may require a record of survey be prepared and filed in certain west cost states, Table A 18 will require some delineation of any wetlands, so be sure to have the vendor preparing the Phase I include a wetlands search, and Table A 19 may require that a large offsite easement (think REA in a shopping mall) be surveyed; all of these items could cause delay or additional expense in your survey.  In addition, if any portion of the site is subject to flood hazard, the survey must show the 100 and 500 year return frequency flood hazard elevation and flood hazard. For existing projects, site elevations need to be shown for entrances, lowest habitable finished floor, and basement and parking area for each primary building. If a prior survey shows the site as affected by flood hazard, order the elevation work at the initial stage of engagement of the surveyor to avoid the expense of a return trip to the site.

The survey must also be dated within 120 days of the closing. This may become an issue as the queue for LEAN processing of projects has filled in and the pace of approval has slowed. Since a change to the date of survey requires a return visit to the site, it makes sense to time the original site visit accordingly as to avoid the date becoming stale and requiring an update.

Finally, the key questions on survey matters in the lenders narrative cover encroachments of buildings or improvements into wetland areas or their buffer zones. In your review of the survey, be sure to pay particular attention to that issue and alert the surveyor to the need for that information. Uncovering such an encroachment late in the application process will likely result in lengthy delay for closing and may eliminate the project for approval.

Millman Surveying, Inc. has prepared numerous surveys for the HUD section 232 LEAN Process loan program and has the knowledge and expertise to handle your project as well. This program is a great source of funding currently and should be a consideration for any eligible project seeking a loan.

For more information, contact Vincent Macauda at 330-342-6230