HUD 223(f) Seismic Reports
If you would like to obtain a HUD 223(f) loan in certain areas of the United States, you may need an additional third-party report, a HUD-approved Seismic Assessment. The Seismic Assessment is intended to determine the risks for the property in the case of an earthquake, by ensuring that all buildings are compliant with ASCE (American Society of Civil Engineers) rules. This helps make sure that occupants are safe, and reduces risk for HUD.
Where are Seismic Reports Required?
Seismic Reports are required in Seismic Zones 3 and 4. This includes parts of California, large parts of Alaska and Hawaii, certain parts of Washington, Oregon, and Nevada, and a small portions of Arkansas, Tennessee, Illinois, and Kentucky. Reports involve three stages, which include:
Tier 1 Evaluation: Initial Screening Phase
Tier 2 Evaluation: Evaluation Phase
Tier 3 Evaluation: Detailed Evaluation Phase
Fortunately for borrowers, many properties will not have to go past the first or second stage, depending on the risk profile of the property as assessed by the Seismic Report.