Category
Rating
Insured (Including Insured assisted)
Non-Insured
a.
High likelihood of Full Claim within 6 months
Any one of the following:
a.
HAP or other subsidy contract has been or expected to be abated
b. A foreclosure recommendation has or is being prepared for Property Disposition
Center
c.
Property Disposition center is analyzing strategy or processing disposition of HUD Held
loan/property (Foreclosure, Note Sale, Sale or workout .).
a.
Request for Partial Payment of Claim or OAHP restructure has been received
a.
1
2
3
Troubled
Rating
Explanation/
Comments
must be no
older than 3
months
4
5
Not used. Intentionally left blank.
Any one of the following:
a.
TPA required to resolve identified issues, physical and/or financial and no TPA
transaction has been started
b. Current only through owner contributions – non-tax credit
c.
High probability of Full Claim or request for a Partial Claim in 6 months – 1 year
d. PASS/REAC below 30 Must remain a 3 until new inspection or refinance
e. Owner or property is in Bankruptcy or Receivership
Any one of the following:
a.
TPA required to resolve identified issues, physical and/or financial and no TPA
transaction has been started
b. 202 or HUD held current only through owner contributions
c.
PASS below 30. Must remain a 3 until new inspection
d. Owner or property is in Bankruptcy or Receivership
Any one of the following:
a.
Delinquent 3 or more times in the last year
b. SOI Category/Stage is Execute - Require or Execute - Enforce (Uncooperative owner)
c.
Current only through owner contributions – tax credit
d. SOI - Qualitative Assessment Score (QAS) >2.00
Any one of the following:
a.
Loan Delinquent 3 or more times in the last year (If applicable)
b. SOI Category/Stage is Execute - Require or Execute - Enforce (Uncooperative owner)
c.
SOI - Qualitative Assessment Score (QAS) >2.00
Any one of the following:
a.
Economic vacancy greater than projected or expenses higher than expected.
b. Audited financial statement shows DSC below 1.0 and owner is NOT taking
corrective action via Action Plan, refinance, modification or moving to sustaining
occupancy (if new construction) to increase DSCR; Not applicable if PM analysis
shows DSCR calculation in FASS is wrong
c.
PASS between 30 and 59 and owner has NOT certified issues identified in the last
inspection have been corrected
d. Open Referral to DEC
e. MROC Red and SOI Category/Stage is Investigate or Execute Recommend. Ex.
Monthly Accounting Reports have not been requested, received, or reviewed
f.
If new construction indicator Y and Monthly Accounting Reports are not requested
or received
g.
Viable TPA is in process to resolve problems
Any one of the following:
a.
For non-insured, unexplained or excessive vacancy in HAP units
b. FASS Rating of Red unless Review of Monthly Accounting Reports documents
successful reversal
c.
PASS between 30 and 59 and owner has NOT certified issues identified in the last
inspection have been corrected
d. Open Referral to DEC
e. IRA High and SOI Category/Stage is Investigate or Execute Recommend. Ex: Monthly
Accounting Reports have not been requested, received, or reviewed
f.
A property where the owner has indicated a desire to Opt out and is in the last 12
months of their contract.
g.
No MOR in the past 3.5 years (PRACS) 5 years non-PRAC
h. Standalone Use Agreement verified to not be in compliance or vacant land/building
and Use Agreement has not been reviewed by PD for possible actions.
i.
Viable TPA is in process to resolve problems
Occasionally exceptions to the Rating “any one bullet rule”, Monthly Accounting Report (MAR) or Management and Occupancy Review (MOR) requirements
are appropriate and should be noted in the Rating Explanation/Comment field why the Guide was not followed. Comments should also indicate if the
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“Action Component” from the Risk Mitigation Road Map is not being followed.
Category
Rating
6
Insured (Including Insured assisted)
Non-Insured
Any one of the following:
a.
PASS score 30-70, but ownership resolving problems (certified if under 60) and addressing
why situation was allowed to occur (Includes PASS/REAC under 30 refinanced)
b. SOI - Qualitative Assessment Score (QAS) such that 1.5<QAS≤2.00
c.
MOR is less than Satisfactory
d. OAHP Watch List Contract
Any one of the following:
a.
PASS score 30-70, but ownership resolving problems (certified if under 60)
and addressing why situation was allowed to occur
b. SOI - Qualitative Assessment Score (QAS) such that 1.50<QAS≤2.00
c.
MOR is less than Satisfactory
d. For non-insured, the HAP or subsidy contract expires in less than 4 months
and owner has not taken action to renew
Any one of the following:
a.
If new construction indicator Y and monthly accounting reports show sound operations and
ahead of underwritten projections, but occupancy is still not sustaining
b. Not used. Intentionally left blank.
c.
DSC is greater than or equal to 1.0 but less than 1.15, and DSC has declined from that
reported in prior year’s Audited Financial Statements (AFS)
d. Not used. Intentionally left blank.
e. Not used. Intentionally left blank.
f.
DSCR is less than 1.0 and the owner is taking corrective action via Action Plan, refinance,
modification or moving to sustaining occupancy (if new construction) to increase DSCR, but
6 Months of MAR post corrective action have not been received/reviewed.
g.
Refinance of a previous non-insured property. Must stay as a Rating of 7 until review of 6
months of Monthly Accounting reports (MAR)
h. SOI – Qualitative Assessment Score QAS such that 1.00<QAS≤1.50
i.
MROC Red/Yellow and management or ownership has minimal HUD experience
a.
Not used. Intentionally left blank.
b. MROC Yellow Properties Over $25 million that have no other attributes that would lower
rating.
c.
MROC Green, but two sub-categories are non-green.
d. FASS DSCR of less than 1.0 is wrong due to FASS handling of transactions
e. If Red MROC and no other attributes that would lower rating.
a.
a.
b.
Not used. Intentionally left blank.
MROC Yellow Property under $25 million that have no other attributes that would lower
rating
MROC Green, but one sub-category is non-green
Not used. Intentionally left blank.
a.
SOI - Qualitative Assessment Score (QAS) ≤1.00, IRA score is Medium and
Category/Stage is Investigation Complete No Action Necessary
Occupancy and expenses better than or equal to projections or market comps; SOI Qualitative Assessment Score (QAS) ≤1; All MROC sub-categories must be Green AND DSCR
must be greater than or equal to 1.15 in FASS.
Not used. Intentionally left blank.
Not used. Intentionally left blank.
a.
SOI - Qualitative Assessment Score (QAS) ≤1.00, IRA score is Low and
Category/Stage is Investigation Complete No Action Necessary
Not used. Intentionally left blank.
A standalone Use Agreement verified to be in compliance within the last 3
years.
Potentially
Troubled
Rating
Explanation/C
omments
must be no
older than 6
months
7
8
Not
Troubled
Rating
Explanation/C
omments
must be no
older than 1
year
9
c.
d.
a.
10
b.
c.
b.
c.
d.
e.
f.
g.
a.
b.
c.
d.
e.
f.
b.
c.
A non-insured property that is not required to submit financial statements
AND MOR or PASS score older than 2 years (Exclude Stand alone Use
Agreements)
Not used. Intentionally left blank.
Not used. Intentionally left blank.
Not used. Intentionally left blank.
For IRA High/Medium and management or ownership has minimal HUD
experience
SOI - Qualitative Assessment Score (QAS) such that 1.00<QAS≤1.50
Standalone Use Agreement not verified in compliance within the last 3 years.
Or vacant land/building and Use Agreement has been reviewed for possible
actions and no options available
Not used. Intentionally left blank.
MDDR reports shows as delinquent, but verified not delinquent or under a
workout plan and all other attributes are Not Troubled.
SOI - Qualitative Assessment Score (QAS) ≤1.00 AND IRA score is High and
Category/Stage is Investigation Complete No Action Necessary
Not used. Intentionally left blank.
Not used. Intentionally left blank.
Not used. Intentionally left blank.
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