Multi-Family Housing Transfer and Assumption Review and Recommendation

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Form RD 3560-20
(02-05)

Submit
FORM APPROVEDOMB
NO.0575-0189
Exp. Date: MM/DD/YY

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:
Lender/Lien Holder

Lien/Promissory Note Date

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
I 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:
A federal agency may not conduct or sponsor, and a person is not required to respond to, nor shall a person be subject to a penalty for failure to comply with a collection of
information subject to the requirements of the Paperwork Reduction Act unless that collection of information displays a currently valid OMB Control Number. The OMB
Control Number for this information collection is 0575-0189. Public reporting for this collection of information is estimated to be approximately I hour per response,
including the time for reviewing instructions, searching existing data sources, gathering, and maintaining the data needed, completing, and reviewing the collection of
information. All responses to this collection of information are voluntary. However, in order to obtain or retain a benefit, the information in this form is required under
Section 515 Rural Rental Housing, which includes Congregate Housing, Group Homes, and Rural Cooperative Housing. Rural Development has no plans to publish
information collected under the provisions of this program. Send comments regarding this burden estimate or any other aspect of this collection of information, including
suggestions for reducing this burden to: Information Collection Clearance Officer, Rural Development Innovation Center, Regulations Management Division at
[email protected]

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IV.

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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, casements, 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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SOURCES AND USES OF FUNDS

Example Apartments transfer to Preservation Associates, LP
PERMANENT SOURCES OF FUNDS:
Tax Credit

USE OF FUNDS

USDA Assumption

Lender Name

Total Acquisition Cost
Total Rehab Costs
Total Relocation Expenses
Total new Construction Costs
Total Architectural Costs
Total Survey & Engineering
Total Construction Interest & Fees
Total Permanent Financing Costs
Total Attorney Costs
Total Reserve Costs
Total Appraisal Costs
Total Contingency
Total Other Costs
Total Developer Costs
TOTAL PROJECT COST
Balanced

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Other

Other

Other

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

Loan Amount

Interest Rate

Amortization (yrs) Term (yrs)

Monthly Payment

Indicate if residual receipts, deffered, etc.

Interest Rate

Amortization (yrs) Term (yrs)

Monthly Payment

Indicate if residual receipts, deffered, etc.

Lender Name
Other
Other
Other

Interim Financing Detail (for all sources other than USDA)
Funding Source

Loan Amount

Community Bank
Other

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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
to
(3) Assume indebtedness
to
(4) Pay the transferors (as
equity)

$

of

$

of

$
$

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.

Recommended by:

Date

(Title)

Date

Recommended by:

(Title)
UNITED STATES DEPARTMENT OF
AGRICULTURE

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