Pressurized Pipelines
Getting an FHA-insured loan for a multifamily project near underground pipelines has long been a challenge. The rules were confusing, difficult to interpret, and frequently made sites near pipelines ineligible for FHA financing. New regulations just published effectively eliminate those barriers for pipelines already subject to Federal, State, and local safety standards.
Under the new, simpler rules, residential buildings (including clubhouses, but not garages) must be set back at least ten feet from an easement for a pipeline carrying flammable or combustible liquids or gases at operating pressures greater than 200 psi. In some cases, a waiver to the ten-foot rule may be available.
This reset is good news. It provides practical, workable guidance when evaluating multifamily sites — whether for new construction or for acquisition and refinancing with FHA.
About AGM Financial Services, Inc.
Family-owned with over 30 years of experience, AGM has closed over $10 billion in FHA-insured multifamily project loans nationwide. We underwrite, fund, and service all of our loans. Developers and owners can count on AGM to be accessible, transparent, consistent, and ready to lend. From new construction to substantial rehabilitation to acquisition and refinance — for both market-rate and affordable projects — we can get the deal done. To learn more about AGM, call 800.729.4266 or visit agmfinancial.com.