High Tension Towers and the FHA Guidelines
This is why you must stay up on the HUD Handbook 4000.1 as a consultant. In 2008 or 2009 when I did this consultation. The underwriter was poised to close escrow the following day but noticed the Pest Report called out a structural beam to be replaced. That caused this Limited 203k to switch to a Standard 203k project.
I was sent out to write it up and get it turned in ASAP. When I arrived I saw this HT owner adjacent to the house. FHA didn't, at that time, allow a HT tower to be be within the fall distance of a home they were working on. The deal died right then and their. I didn't charge any fee though I certainly could have charged a trip fee.
Today, this would still be the case however based on my understanding of the HUD Handbook 4000.1, the approach to FHA property evaluations regarding proximity to high-tension power lines has evolved. Here's a breakdown:
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Shift in Focus:
- The emphasis has moved away from strict "fall distance" measurements.
- Instead, the focus is on assessing potential safety hazards.
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Current Guidance: www.renovationcontractors.us
- If an appraiser observes that a property or its improvements appear to be located within an "unacceptable distance" of a power line or tower and there's a perceived safety risk, they are required to notify the mortgagee.
- This triggers further evaluation to determine if mitigation is necessary.
- Essentially the appraiser must call out any safety concerns.
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Key Takeaway:
- The current guidelines prioritize professional judgment and the identification of actual safety concerns over rigid distance rules.
Since the appraiser comes out after the consultant report has been created typically it would be up to the consultant to notify the lender. In this case, it wouldn't be an FHA loan in my opinion however a house two or three doors down might get the green light as these towers are built to collapse straight down. It would likely be considered a safety issue for this home but maybe not for some farther down the street.
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