Seismic Assessments for HUD 232 Loans
In addition to third-party reports like Appraisals/Market Studies and Environmental Assessments, many HUD 232 loan borrowers may also need to get a Seismic Assessment, sometimes also known as a Seismic Report.
Seismic Assessments for HUD 232 Loans
In addition to third-party reports like Appraisals/Market Studies and Environmental Assessments, many HUD 232 loan borrowers may also need to get a Seismic Assessment, sometimes also known as a Seismic Report. A Seismic Assessment will examine a project’s structures to make sure that occupants will be reasonably safe in the case of an earthquake. To do so, an examiner will survey the property to make sure that it’s compliant with ASCE (American Society of Civil Engineers) rules and regulations.
Where Are Seismic Assessments Required?
Fortunately for HUD 232 loan borrowers, Seismic Assessments are not required everywhere in the U.S., only in Seismic Zones 3 and 4. This includes the entire state of California, large parts of Alaska and Hawaii, certain parts of Washington, Oregon, Nevada, Idaho, Wyoming, Utah, and Montana, and very small portions of Arkansas. Tennessee, Illinois, and Kentucky.
What Are the Elements of HUD-Approved Seismic Assessments?
Seismic Assessments typically have three phases, known as Tier 1, Tier 2, and Tier 3, as listed below. However, only the highest-risk projects will need to go through with all three stages; lower-risk properties may only need to go through one or two stages of the screening/evaluation process.
Tier 1: Initial Screening Phase
Tier 2: Evaluation Phase
Tier 3: Detailed Evaluation Phase