This morning, Freddie Mac announced the following changes to their requirements for Property Condition Assessments, Environmental Site Assessments, and forms 1103 and 1105. Changes are effective for all orders placed today, but do not apply to reports in progress.
Property Condition Reports
Expanded include repairs correcting violations of any federal, State or local law, ordinance or code relating to energy-related requirements.
The PCA must note readily observable deficiencies or violations of any federal, State or local laws, ordinances or codes that remain open for the Property, including violations related to zoning, subdivision and use, building and housing accessibility (including the Americans with Disabilities and Fair Housing Acts), health matters, fire safety or energy-related requirements.
PCA must make appropriate inquiry through available resources to determine if any energy-related federal, State or local law, ordinance or code violations remain open for the Property.
Unit Selection – The consultant must select the units to be inspected and ensure that all building types and unit types are reviewed.
Commercial Units – The interior inspection of commercial units must comprise the same elements as the inspection of dwelling units and building common areas: flooring materials, wallboard and ceiling coverings, fixtures, windows, doors, intercoms and other security devices, kitchen appliances and cabinets, bathroom fixtures and plumbing, fireplaces, washers/dryers or hookups, and fire/safety protection devices, etc.
Environmental Site Assessments
Lead-based Paint (LBP)
Freddie Mac will not require resolution of LBP issues if a “lead free” certificate has been issued by a qualified environmental professional in accordance with EPA, HUD or State requirements. The environmental consultant must review all supporting documentation, and must attach a copy of the “lead free” certificate, if any, to the environmental report.
Please let us know if we can provide additional information.