Form RD 3560-20 Multi Family Housing Transfer and Assumption Review and

Form RD 3560-20
(02-05)

FORM APPROVED
OMB NO.0575-0189

Multi-Family Housing Transfer and Assumption
Review and Recommendation
I. USDA HAS RECEIVED AN APPLICATION FOR A PRESERVATION TRANSFER AND ASSUMPTION OUTLINED
BELOW:
Name of Project:
Street Address or Project (w/zip code):
Name of Project’s Current Owner (Transferor):
Name of Project’s Proposed Transferee:
Expected Date of Transfer:
Reason for Transfer:
II. LOAN INFORMATION
As of Date:
Lien/Promissory Note Date

Lender/Lien Holder

Original Amount

Current Balance

Current? (yes/no)

Is project eligible to prepay?
Project’s restrictive use agreement expires/expired?
III. PROJECT INFORMATION:
Family

Elderly

Congregate

Rent Information:
Bedroom size

No. nonincome units

No. income
units

Current Basic
Rent

Post-Transfer
Basic Rent

Estimated Market
Rent in Area

0 Bedroom
1 Bedroom
2 Bedroom
3 Bedroom
4 Bedroom
Total Units
If HUD subsidized, is project under Plan II?
Tenant Subsidy at project:
Current

Post-Transfer

USDA Rental Assistance (RA)
HUD project-based Section 8
Other:
Other:
Total sudsidized units:
According to the Paperwork Reduction Act of 1995, an agency may not conduct or sponsor, and a person is not required to respond to a collection of information unless it displays a valid OMB
control number. The valid OMB control number for this information collection is 0575-0189. The time required to complete this information collection is estimated to average 1 hour per
response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of
information.

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IV. RESERVE ACCOUNT INFORMATION
Current annual reserve transfer requirements:

(=

per unit)

As of:
Current reserve account balance
Required reserve account balance
Underfunded balance

V. PROJECT CONDITION AND COMPLIANCE INFORMATION
MFIS Classification:
Date of last supervisory visit:
Date of last walk-about physical inspection:
Date of last compliance review:
Note any accessibility issues unresolved at the project.

Estimated cost to correct:

Note any deferred maintenance issues unresolved at the project.

Estimate cost to correct:

The loan account is current.
The reserve account is on schedule, less authorized withdrawals.
The taxes and insurance account is on schedule and all outstanding bills paid.
The security deposit account if fully funded.
There are no outstanding maintenance items.
Management is satisfactory.
There are no open OIG audit findings or investigations against the borrower or related entities.
The borrower and members of the borrower entity are in compliance on all other projects or complying with an approved
workout plan for a minimum of 6 months.
All necessary repairs to assure that the housing will be decent, safe and sanitary, and other improvements proposed by the
applicant to enhance long-term viability of the housing agreed to by USDA.
Last appraised value of project:

as of

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VI. APPRAISAL
1.

The proposed transaction:
WILL
WILL NOT prevent or make more difficult the successful operation of this property.
WILL
WILL NOT reduce the efficiency of the property.

2.

The proposed transaction will affect the value of this property as security of the loan as follows:

3.

The following

damages or

benefits will result to this property from the transaction:

VII. OTHER
Are transferees occupying the property?
If any portion of the property is currently leased, the terms and conditions of the lease have been reviewed and the lease is transferable
to the new owner for the life of the loan if necessary.
Explain any change in marital status of transferors since they received the loan.
Agreement discloses the payment and/or assumption of prior and junior liens.
The assignment of property insurance and paid unearned premiums is disclosed.
Distribution of any income from rentals, easements, mineral leases, etc. is disclosed.
Diposition of existing abstracts of title, owner’s title insurance policy or other title evidence is described.
Expenses to be paid by transferors and transferees are detailed.

Note any special transfer and assumption approval conditions recommended:

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TOTAL PROJECT COST

Total Developer Costs

Total Other Costs

Total Contingency

Total Appraisal Costs

Total Reserve Costs

Total Attorney Costs

Total Permanent Financing Costs

Total Construction Interest & Fees

Total Survey & Engineering

Total Architectural Costs

Total new Construction Costs

Total Relocation Expenses

Total Rehab Costs

Total Acquisition Cost

USE OF FUNDS

Balanced

Tax Credit

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USDA Assumption

Example Apartments transfer to Preservation Associates, LP

Lender Name

Other

PERMANENT SOURCES OF FUNDS:

SOURCES AND USES OF FUNDS

Other

Other

Loan Amount

Interest Rate

Other

Community Bank

Funding Source

Loan Amount

Interest Rate

Interim Financing Detail (for all sources other than USDA)

Other

Other

Other

Lender Name

Funding Source

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Amortization (yrs)

Amortization (yrs)

Permanent Financing Detail (for all sources other than USDA and tax credit)

Term (yrs)

Term (yrs)

Monthly Payment Indicate if residual receipts, deffered, etc.

Monthly Payment Indicate if residual receipts, deffered, etc.

Multi-Family Housing Transfer and Assumption
Review and Recommendation

We further agree that:
(a) Any payments received by USDA (Agency) for application on Agency direct debts secured by the real estate being
transferred which are not reflected on the latest transaction record used for determining the amount of the account shall
not be applied until after the transfer is completed or disapproved. When the transfer is completed, any funds held in
suspense by the Agency will be applied to the transferee’s assumed Agency indebtedness.
(b) The total consideration for the conveyance of the security is
$

(c) The transferee will:
(1) Assume an indebtedness to the Government
of
$
(2) Assume indebtedness
of
$
to
(3) Assume indebtedness
of
$
to
(4) Pay the transferors (as
$
equity)
CERTIFICATION:
We hereby certify that the information given above concerning agreements between us is correct and is fully
understood.

TRANSFEROR/CO-TRANSFEROR

DATE

TRANSFEREE/CO-TRANSFEREE

DATE

I recommend that this application be approved.

Date

Recommended by:

(Title)

Date

Recommended by:

(Title)
UNITED STATES DEPARTMENT OF
AGRICULTURE
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