Freddie Mac's guidance documents, updated in December 2022, reflect changes to seismic report requirements, including some important construction date changes that will capture more properties under Level 1 seismic reporting requirements.

Most of the revisions add clarification but do not alter what would typically be required in a Seismic Risk Assessment (SRA).  However, a few material revisions based on age, building types/configuration, and/or other aspects newly classified as seismic risk factors will trigger Level 1 SRA requirements for properties that might not have previously required that level of seismic assessment.  Other important revisions include timing of reports and expanded coverage requirements for retrofitting and non-structural items. Minor clarification was also provided regarding USGS mapping for Alaska and Hawaii.

Here's a list of the more impactful revisions:

1. Reports must document the sufficiency of non-structural elements including natural gas seismic shut-off valves, bracing and anchorage of secondary building systems, such as mechanical equipment and ceilings. The Consultant must provide photographic documentation that characterizes the Property's overall construction and configuration and that identifies specific vulnerabilities or signs of physical distress.
2. Should non-retrofitted unreinforced masonry (URM) buildings be present on-site, the report should provide discussions of typical retrofit schemes and budget estimates for consideration.
3. For wood-framed buildings constructed prior to 2000 with tuck under parking, the Guide now considers a "Tuck Under" scenario for properties that have commercial/retail units under residential dwelling units regardless of whether there is a retrofit. This is also included to re-affirm the "weak or soft-story" building design scenario.
4. Concrete and CMU buildings constructed prior to 2000 require Level 1 SRA (previous cut-off was 1994).
5. All wood-framed buildings constructed prior to 1960 require a Level 1 SRA (previous cut-off was 1950.)
6. Buildings with wood-framed construction over a concrete podium structure constructed prior to 2000 require a Level 1 SRA (previously 1994).

Change to Fannie Mae PCA Interview Requirements

Regarding Property Condition Assessments (PCAs), Field Observers were formerly permitted to interview residents/tenants with the permission of the property owner. Per the December 2022 update, resident interviews are no longer permitted. Field Observers should make reasonable efforts to interview the maintenance supervisor and the on-site property manager. If property management is not available for interview, this should be noted as a limitation in the PCA report. Furthermore, Field Observers should not discuss property condition during casual interactions with tenants, unless property condition issues are raised by the tenant.