HUD’s LEAN 232 Program
Office of Healthcare Programs (OHP)
Update as of  July 8, 2011

Contract for Underwriting and Closing Coordination:
The Department of Housing and Urban Development (HUD) has awarded a one-year contract to Summit Consulting, LLC (Summit) to support Section 232 underwriting efforts within the Office of Healthcare Programs (OHP).  Summit, an 8(a) qualified contractor, will perform the analytical review and due diligence required by OHP’s standardized underwriting process for Section 232/223(f) and 232/223(a)7 applications.  Completed forms and due diligence materials will be evaluated by designated OHP Government Technical Monitors (GTM’s) for approval before submission to OHP’s Loan Committee.  The contractor will work to reduce the pending applications down to a 30-day backlog.

Summit contractors will be required to successfully complete a training course provided by OHP prior to beginning underwriting review activities.  HUD staff will assign queue applications to Summit team members and provide the necessary oversight and guidance needed to perform the required steps and analysis outlined within Section 232 Lean Processing punch lists.  The ultimate goal is to reduce the 232 Program “Queue” by approximately 400 applications within a period of six to nine months.

Responsibility for the Section 232 residential care program was transferred from the Office of Multifamily to OHP in July 2008.   However, due to insufficient staff levels coupled with rapidly growing demand, the Section 232 application queue began to grow and increase substantially each year to over 400 applications in 2011.