HUD HOC Reference Guide

Utilities Not On - Please see: Mortgagee Letter 2005-48, Revised Appendix D. For the URAR -pages D-23 and D-24; for Manufactured Homes - D-55 and D-56; Condos - D-90; 2-4 Family - D-116 and D-117. When utilities (water, gas, electric) are NOT on at the time of appraisal the appraiser is to condition for further inspection to determine if the utilities are in proper working order.

NOTE: The appraiser will also annotate in the appraisal that additional repair requirements may apply once all the utilities are on and fully functional.

Checking Mechanical Systems - Please see: Mortgagee Letter 2005-48 An appraiser must examine mechanical, plumbing and electrical systems to ensure they are in proper working order. The appraiser should turn on the systems and observe their performance. The appraiser may call for a certification of a system when he/she cannot determine if it is working properly. An appraiser should not arbitrarily call for such certifications and should understand that they are still responsible for checking on the adequacy of these systems at the time of appraisal. For 2-4 units, note the type of heating and cooling for each unit, if different. Do not operate the systems if doing so may damage equipment, or when outside temperatures will not allow the system to operate. Note in the appraisal report why the system(s) could not be tested.