Housing and Urban Development (HUD): Termite Inspection Reporting and Requirements
Subterranean termites cause an estimated $5 billion in damage to structures in the United States every year. While effective post-construction termite control treatments can be made, the vast majority of these treatments take place after damage has already occurred. Pre-construction preventative termite treatments allow for the application of protective products to be applied before termites strike.
New Construction (Proposed Construction, Under Construction and Existing Less than 1 Year Old)
HUD Mortgage letters 1999-ML-3, 2001-ML-04 and 2003-ML-11 mandate the usage and submission of the following forms in all areas of the country except those exempted in HUD’s Single Family Housing Policy Handbook (SF Handbook; HUD Handbook 4000.1) published March 18, 2015 and effective September 14, 2015. Click here to review HUD’s Termite Treatment Exception Area’s which provides a detailed list of exempted states and counties. States that are not listed and have historically required termite inspection reports still require termite inspection reports for all new construction.
HUD-NPMA-99A (Subterranean Termite Protection Builder's Guarantee) - Must be completed by the builder and specifies whether the work was done by the pest control company or the builder (in the rare case of using extensive pressure treated lumber as termite prevention). The form clearly delineates the responsibilities of the builder, and the builder must guarantee that any work done complies with the building code.
HUD-NPMA-99B (New Construction Subterranean Termite Service Record) - Must be completed by the pest control company and now includes all code-accepted methods into one service record. The code-accepted methods include Soil Applied Liquid Termiticide, Wood Applied Liquid Termiticide, Bait System, and Physical Barrier System.
Inspecting old construction is equally if not more important than new construction. Over time, wood destroying insects can cause serious structural damages to a house, and may go undetected for a long periods. HUD Mortgage Letter 2005-ML-48 requires wood destroying insect inspections and proper documentation of existing property if any of the following factors apply:
Customary to the Area - Local HUD offices can assist in providing guidance on what constitutes “customary to the area.” Generally, if your locality is not listed in HUD’s Termite Treatment Exception Area than termites inspection reports will be considered customary to the area and therefore required.
Mandated by the state or local jurisdiction - Some states or municipalities mandate that wood destroying insect inspections be performed.
Evidence of Active Infestation - Appraisers are required to observe all areas of the house and other structures/areas with the property boundaries. If any active infestation is identified NPMA-33 must be submitted.
Lender’s Discretion - Conventional lending companies take guidance from HUD. In recent years more and more lenders are taking a more cautious approach towards lending resulting in more inspections and reporting requirements.
NPMA-33 (Wood Destroying Insect Inspection Report) - If any of the above four factors apply, HUD mandates the usage and submission of the NPMA-33 form.
In the states listed above, the state inspection form should be used. In some cases HUD may still require the NPMA-33 for HUD insured loans.
Additional information can be found in HUD’s Appraisal and Property Requirements issued by HUD’s regional Atlanta office.
For further guidance please contact Andrew Bray at NPMA (703) 352-6762.