HUD again extends procedures for FHA mortgages on healthcare facilities

Federal Issues Mortgages Covid-19 HUD Third-Party

On August 27, HUD issued Mortgagee Letter 21-20, which extended interim procedures addressing site access issues associated with FHA Section 232 mortgage insurance applications during the Covid-19 pandemic from July 31, 2021 to December 31, 2021. As previously covered by InfoBytes, HUD first provided temporary modifications pertaining to third-party site inspections for Section 232 FHA-insured healthcare facilities in April 2020 (see Mortgagee Letter 20-10) and extended those procedures in May 2020 (see Mortgagee Letter 20-15). In July 2020, HUD released Mortgagee Letter 20-25, further extending these interim procedures (covered by InfoBytes here). Mortgagee Letter 21-20 also provides guidance on other aspects relating to Section 232 properties, including Property Capital Needs Assessments, appraisals, Section 232 Phase 1 Environmental Site Assessments, asbestos surveys, and radon testing.