www.hudclips.org 


U. S. Department of Housing and Urban Development
Washington, D.C. 20410-8000

October 22, 1993
OFFICE OF THE ASSISTANT SECRETARY
FOR HOUSING-FEDERAL HOUSING COMMISSIONER
Mortgagee Letter 93-35
     TO:  ALL APPROVED MORTGAGEES
     SUBJECT:  Single Family Loan Production - Compliance with the
                 1992 Model Energy Code - Additional Instructions and
                 Follow-Up to Mortgagee Letter 93-26
 
          The Department has received comments from industry members
     that the time periods for compliance with the Council of American
     Building Officials (CABO) 1992 Model Energy Code (MEC) as stated
     in Mortgagee Letter 93-26  are too short and may be unfair to some
     home builders and borrowers that had outstanding appraisals and
     commitments issued during the spring and summer.  It is not the
     intent of HUD to unnecessarily disrupt home building or selling
     operations, so we are modifying the time periods set out in
     Mortgagee Letter 93-26 for compliance with the 1992 MEC.
 
          Accordingly, if a Direct Endorsement (DE) Statement of
     Appraised Value or a Direct Endorsement Master Appraisal or a
     Veterans Administration (VA) Certificate of Reasonable Value
     (CRV) or a Master Certificate of Reasonable Value was issued
     before October 24, 1993 for the property, then the property need
     not be built to the 1992 MEC, provided construction begins prior
     to the expiration date of the appraisal, but no later than April
     24, 1994.
 
          For example, if a lender had issued a DE Statement of
     Appraised Value for a property on June 1, 1993 with an expiration
     date of June 1, 1994, the property would not have to built to the
     1992 MEC provided construction began by April 24, 1994.  Although
     the appraisal won't expire until June 1, 1994, construction of
     the property must begin by April 24, 1994.  To take another
     example, if the VA issued a master CRV on April 1, 1993 with an
     expiration date of April 1, 1994, the property would not have to
     be built to the 1992 MEC provided construction began prior to the
     expiration date of the CRV, i.e., April 1, 1994.
 
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          Extensions to the original appraisal or CRV will not extend
     the dates for compliance with the 1992 MEC.
 
          If you have any questions concerning this letter, please
     contact your local HUD Field Office.
 
Sincerely yours,
 

Nicolas P. Retsinas
Assistant Secretary for Housing
- Federal Housing Commissioner
 
                                            *U.S. G.P.O.:1993-301-054:80220