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M2M Operating
Procedures Guide


	Information by State Print version

OPG Revisions

This page contains the most recent updates made to the Operating Procedures Guide. For updates preceding January 1, 2005, please go to the archives web page. If you have any questions about this page or the OPG archives Email us @OAHP.

Location	Page	Date and Change
Chapter 7 Forms Automated Form 7.4 and 7.4a Form 7.5 Form 7.12 Form 7.13	N/A	June 6, 2007: OAHP has developed a new automated Form 7.4 and Form 7.4a, required for all PPCs submitted on or after May 15, 2006. This new tool imports data from the underwriting model, allows the user to input additional information not contained in the model, and contains separate tabs to print either the Form 7.4 (for Claim Payments) or Form 7.4a (for HUD-Held or Non-Claim/Non-HUD-Held Restructurings.) Four indicators of special conditions have been added to the Forms. Numbers 1 through 3 below are pulled from the model. Number 4 is a user input field. 1) "Contingent Repayment Note (CRN) sized at less than $25,000" indicator (restructuring cannot be closed); 2) "Below Market Interest Rate (BMIR) Loan" indicator; 3) "Original HAP contract was a Moderate Rehab" indicator; and 4) A blank field where you can enter the two clearance dates for any 236 Interest Reduction Payments (IRP) Re-use. These automated versions of the forms work just like the Automated Restructuring Commitment. The attached zip file contains instructions in Word format and the Excel spreadsheet for the automated forms. Additionally, a new model is being broadcast simultaneously (standard revision 4.4 and IRP Bifurcation revision 4.5) which includes separate tabs for Forms 7.4 and 7.4a. If you use this new model, Forms 7.4 and 7.4a will have been automatically populated.
Chapter 7 Legal Docs	N/A	December 15, 2006 (Forms revised for minor typo on 1/5/2007): Changes were made to Rental Contingent Rep Note and the Rental - Mtg Restructuring Note. The following information updates guidance contained in the OPG and in RD Broadcasts dated June 10, 2005 and March 22, 2004 regarding addresses to be used for payments to HUD. We have been advised that the contractor providing certain Multifamily Notes Servicing lockbox functions has changed, and the lockbox address for those services has changed accordingly. The following address should be used starting December 20, 2006 for items that are currently being sent to the Multifamily Payment Processing Center, Post Office Box 70764, Chicago, IL 60673.mber and again in February. For more information please contact Patricia Casey at Patricia_P._Casey@hud.gov.
Form 7.21 and Guidance	N/A	April 4, 2006: We have sampled some 100 transactions that closed between January 2005 and December 2005 and are pleased to see that the settlement statements and 7.21 accurately represented the flow of funds through the closing escrow in most instances. In this revised Form 7.21 (attached) some requirements have been made more specific and others were eliminated where redundant. The input fields have been streamlined, which will enable the PAE and/or escrow agent to more easily complete the Form and reconcile it with the settlement statement, closing escrow instructions and Exhibit F Sources and Uses. The PAE must assure that the revised Form 7.21 is used with transactions closing on or after April 10, 2006.
Chapter 7 Forms: Form 7.15 and 7.18	N/A	December 13, 2005: Form 7.15 and 7.18 have been updated.
Appendix C: Assignment and Forgiveness	N/A	November 29, 2005: There are now two zipped files for Appendix C, "Forgiveness" and "Assignment". The follwing changes have been made to Appendix C: Adding a header with the property name, location and existing FHA# to the top of each document. Dating the Allonges. Adding the word "Deposit" to para 2 of the Accommodation Agreement to correctly name the Rehab Escrow Deposit Agreement. Adding page numbers to each page of each document. Changing HUD signature block from Hank WIlliams to Ted Toon.
Chapter 7 Legal Documents (specifically the Restructuring Commitment) Automated Restructuring Commitment Tool	N/A	October 27, 2005: The following changes were made to the RC and the Automated RC Tool Change title of paragraph 18 (TPA / Debt Relief) Add new paragraph 19 (Treatment of Amount Due Under the MRN / CRN in a TPA), including the later change authorized by Dennis (“forgiven or assigned, as appropriate” instead of “written off”) Re-number remaining paragraphs Change cross references as appropriate Update footer to show revision date of October 2005
Chapter 9 Forms Form 9.10, 9.11 and 9.12	N/A	September 20, 2005: To assist REAs in closing out escrows, we are introducing the Alternate Form 9.12. This form provides for a more detailed accounting of the deposits and withdrawals from the escrow account. REAs may choose to use this form or continue to use the revised Form 9.10 for close-outs, with their own detailed financial spreadsheets, at their discretion. All other documentation to close out an account must still be submitted (i.e., the transmittal letter, accounting of deposits and withdrawals, etc.) regardless of whether or not the REA chooses the Form 9.10 or the Alternate Form 9.12. On those occasions where the Rehabilitation Escrow Specialist determines that the submitted Form 9.10 is inadequate, the Specialist may require that the REA submit the Alternate Form 9.12.
Form 5.1	N/A	August 15, 2005: Added approval/ signature line to form.
Chapter 7 Legal Documents (CRN Docs & Riders)	N/A	June 8, 2005: Change in language on page one of Contingent Repayment Notes, from original principal balance to unpaid principal balance, in paragraph beginning "For Value Received." Mandatory for all closings effective June 23, 2005
Forms 8.1 and 7.2	N/A	June 3, 2005: Form 8.1 was changed to include the following sentence: "The closing escrow account balance is zero, with all funds properly disbursed." The closing escrow must be closed and all funds disbursed in order for PAEs to submit form 8.1. As supporting documentation for this certification, the Final 7.21 and the accompanying final settlement statement now will be required as part of the Closing Docket. Form 7.2 (Closing Documents Checklist) was revised to reflect this additional documentation requirement. This change will be effective for all closing dockets being sent to OAHP for review.
Chapter 7 Legal Documents (Assumption & Modification Use Agreement)		May 12, 2005 (Documents actually updated on 5/9/05): Added Witness blocks, and made minor revisions to the Assumption and Modification of Use Agreement documents used when there is Forgiveness or Assignment of debt because of transfer to a QNP .
Form 6.2 and Chapter 7 Legal Documents (Restructuring Commitments & Special Conditions)	N/A.	May 5, 2005: Please refer to the Resource Desk Broadcast dated May 5, 2005, for a complete list of all technical changes. Note: The Automated RC will be posted soon.
Chapter 10 & Forms (10.3b, 10.3c, 10.6a, 10.7b and 10.8)	N/A	April 5, 2005: Forms 10.3b, 10.3c, 10.6a, 10.7b, and 10.8 were updated. New Form 10.4c "Notification to HUD Project Manager of Ineligible Lite and Market Rent Determination" added. Also the Lite Underwriting Model was updated in coordination with the changes made to Chapter 10.
Chapter 4 & Forms (4.11, 4.12) Chapter 7 & Forms (7.4, 7.4a, 7.5, 7.13) Appendix L	N/A	March 8, 2005: Chapters 4 and 7 and Appendix L updated. Also updates made to Forms 7.4, 7.4a, 7.5, and 7.13 to reflect revised F47 Procedures that were broadcast on February 10, 2005. Addition of Forms 4.11 and 4.12 to be used in revised F47 Procedures. Mandatory for all closings effective immediately.
Appendix H	N/A	March 7, 2005: Appendix H has been updated to delete outdated paper and electronic references and replace them with a new Handbook reference and a new link. There is no change in policy.
Chapter 6	N/A	February 18, 2005: Section 6-12-B has been modified to clarify language on tenant notification
Chapter 7 Forms: Form 7.25	N/A	February 3, 2005: Updated Form 7.25, Payment Information Form. Mandatory for all closings after February 11, 2005.
Chapter 4 Chapter 5 Appendix L	N/A	February 3, 2005: Chapter 5 has been updated with additional PAE guidance on Subsidy Layering (5-15-D-4) and Operating Deficit Escrows (5-17-B). Chapter 4 has been updated concerning Code Compliance Section 4-7. Appendix L was modified to match Resource Guidance previously disseminated.
See locations below: Chapter 3 New Forms 5.4 and 5.5 Form 3.8 Forms 2.2 and 2.7	N/A.	February 3, 2005: The following are the changes to several documents in the OPG: Chapter 3 changes involved typos in Section 3-3-B and a change in Section 3-8-E, recognizing the combining of Forms 3-5 and 3-6. Forms 5.4 and 5.5 are new forms relating to subsidy layering Form 3.8 removes the Tenant Survey of PAE Performance requirement Form 2.2 and Form 2.7 are just minor typographical changes

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M2M Operating Procedures Guide

OPG Revisions

M2M Operating
Procedures Guide