Summary Of HUD’s LEAN 232 Program E-Mail Blast: Office Of Residential Care Facilities (ORCF), January 28, 2014

by Pepper Hamilton LLP

In an effort to summarize the highlights of the U.S. Department of Housing and Urban Development (HUD) LEAN E-mail Blasts that we receive, and rarely have time to review in a timely fashion, we at Pepper are providing this quick synopsis of the latest LEAN update. Our aim is to provide pertinent information succinctly as a roadmap to the LEAN E-mail Blasts, not to replace the LEAN E-mail Blasts. We hope you find these summaries helpful. A link to the complete January 28, 2014 LEAN Blast can be found here.

Roger Lewis Now Acting Director of ORCF; Patrick Berry Acting Director of Production

For the past year and a half, Kelly Haines served as the Director of the Office of Residential Care Facilities (ORCF); starting this month Kelly is the Multifamily Director of the Fort Worth and Kansas City HUB Offices. Roger Lewis is now serving as the Acting Director of ORCF, moving over from his previous position as Director of the Production Division of ORCF.

Patrick Berry has taken Roger’s old position and is the Acting Director of Production of ORCF; Patrick was most recently a workload manager in the Production Division of ORCF.

Clarification on Criteria for 24 CFR 232.7 (Formerly 232.3) ‘Bathroom’ Waiver Reviews

The November 12, 2013 E-mail Blast provided the requisite criteria for expedited reviews of bathroom waivers. If a waiver request does not meet the criteria detailed in the November 12, 2013 E-mail Blast, the waiver must be sent to the assigned ORCF Underwriter for review, along with the documentation outlined in the June 27, 2012 E-mail Blast. Ensuring submission of the required documentation will prevent delays in reviewing the waiver request. Additionally, if the waiver request involves a regulatory matter, the approval must still be issued by the FHA Commissioner. We’re reminded that some waiver requests will not be granted.

Improved Section 232 Program Web Site Now Available

In the September 26, 2013 E-mail Blast, ORCF indicated a redesigned Section 232 Web site was being developed. The newly formatted Web site is now available. Content that was previously buried under layers of random clicks and links is now found on the front page. Lists are now organized alphabetically(!) or by transaction stage, and indexes have been created to make information easier to locate. Redirector links have been placed on the old pages to help you find the content in its new location.

If you have any comments or suggestions for improving the Web site, please send them to


Firm Commitment Extensions for Projects Without a Closer Already Assigned

For firm commitment extensions for projects that do NOT have an assigned ORCF Closer, send the request to extend on lender letterhead to

The lender’s request to extend the Firm Commitment must include the reason for the delay and an explanation of how the delay can be resolved during the extension. Amendments extending the Firm Commitment must also include the following statement from MAP Guide Section 11.2(G): “The requested delay is not likely to change significantly the underwriting data on which the commitment was based or to undermine the feasibility of the project due to a change in the market, inflation, or other factors affecting cost.”

January LEAN Closer Kaizen

The HUD Closers held a LEAN Kaizen at headquarters earlier this month with a focus on how to improve and streamline the closing process. In the collaborative manner that typifies the evolution of LEAN policy, several lenders and their counsel were invited to participate in part of the discussion. We were fortunate enough to attend the session, and are pleased to report that the Closers had lots of ideas to streamline the closing process. The two topics that garnered the most discussion were (a) revising the requirements for providing draft settlement statements and what HUD is looking for in a settlement statement, and (b) improving the process of how to handle newly discovered litigation and UCC filings. We anticipate new policies and procedures to come out of the Kaizen that will further enhance the LEAN experience.

Written by:

Pepper Hamilton LLP

Pepper Hamilton LLP on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
Sign up using*

Already signed up? Log in here

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
Privacy Policy (Updated: October 8, 2015):

JD Supra provides users with access to its legal industry publishing services (the "Service") through its website (the "Website") as well as through other sources. Our policies with regard to data collection and use of personal information of users of the Service, regardless of the manner in which users access the Service, and visitors to the Website are set forth in this statement ("Policy"). By using the Service, you signify your acceptance of this Policy.

Information Collection and Use by JD Supra

JD Supra collects users' names, companies, titles, e-mail address and industry. JD Supra also tracks the pages that users visit, logs IP addresses and aggregates non-personally identifiable user data and browser type. This data is gathered using cookies and other technologies.

The information and data collected is used to authenticate users and to send notifications relating to the Service, including email alerts to which users have subscribed; to manage the Service and Website, to improve the Service and to customize the user's experience. This information is also provided to the authors of the content to give them insight into their readership and help them to improve their content, so that it is most useful for our users.

JD Supra does not sell, rent or otherwise provide your details to third parties, other than to the authors of the content on JD Supra.

If you prefer not to enable cookies, you may change your browser settings to disable cookies; however, please note that rejecting cookies while visiting the Website may result in certain parts of the Website not operating correctly or as efficiently as if cookies were allowed.

Email Choice/Opt-out

Users who opt in to receive emails may choose to no longer receive e-mail updates and newsletters by selecting the "opt-out of future email" option in the email they receive from JD Supra or in their JD Supra account management screen.


JD Supra takes reasonable precautions to insure that user information is kept private. We restrict access to user information to those individuals who reasonably need access to perform their job functions, such as our third party email service, customer service personnel and technical staff. However, please note that no method of transmitting or storing data is completely secure and we cannot guarantee the security of user information. Unauthorized entry or use, hardware or software failure, and other factors may compromise the security of user information at any time.

If you have reason to believe that your interaction with us is no longer secure, you must immediately notify us of the problem by contacting us at In the unlikely event that we believe that the security of your user information in our possession or control may have been compromised, we may seek to notify you of that development and, if so, will endeavor to do so as promptly as practicable under the circumstances.

Sharing and Disclosure of Information JD Supra Collects

Except as otherwise described in this privacy statement, JD Supra will not disclose personal information to any third party unless we believe that disclosure is necessary to: (1) comply with applicable laws; (2) respond to governmental inquiries or requests; (3) comply with valid legal process; (4) protect the rights, privacy, safety or property of JD Supra, users of the Service, Website visitors or the public; (5) permit us to pursue available remedies or limit the damages that we may sustain; and (6) enforce our Terms & Conditions of Use.

In the event there is a change in the corporate structure of JD Supra such as, but not limited to, merger, consolidation, sale, liquidation or transfer of substantial assets, JD Supra may, in its sole discretion, transfer, sell or assign information collected on and through the Service to one or more affiliated or unaffiliated third parties.

Links to Other Websites

This Website and the Service may contain links to other websites. The operator of such other websites may collect information about you, including through cookies or other technologies. If you are using the Service through the Website and link to another site, you will leave the Website and this Policy will not apply to your use of and activity on those other sites. We encourage you to read the legal notices posted on those sites, including their privacy policies. We shall have no responsibility or liability for your visitation to, and the data collection and use practices of, such other sites. This Policy applies solely to the information collected in connection with your use of this Website and does not apply to any practices conducted offline or in connection with any other websites.

Changes in Our Privacy Policy

We reserve the right to change this Policy at any time. Please refer to the date at the top of this page to determine when this Policy was last revised. Any changes to our privacy policy will become effective upon posting of the revised policy on the Website. By continuing to use the Service or Website following such changes, you will be deemed to have agreed to such changes. If you do not agree with the terms of this Policy, as it may be amended from time to time, in whole or part, please do not continue using the Service or the Website.

Contacting JD Supra

If you have any questions about this privacy statement, the practices of this site, your dealings with this Web site, or if you would like to change any of the information you have provided to us, please contact us at:

- hide
*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.