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12.17.1.4 Funds Remaining in the Escrow

HUD Multifamily Accelerated Processing (MAP) Guide, HUD Handbook 4430.G (2020 ed., rev. Mar. 19, 2021) · 2026 edition · updated 2026-10-05 · United States

  • A. Funds remaining in the repair escrow may be released to Borrower when:

  1. All repairs have been satisfactorily completed as determined by HUD;

  2. Evidence of clear title has been provided to HUD; and,

  3. In cases where the cost of repairs and alterations exceeds $400,000, the Borrower (or the General Contractor in cases where a construction contract was executed) has provided latent defect assurance with funded escrow. The escrow must be in the form of cash or letter of credit or surety bond (at the option of the Lender) equal to 2½% (or a greater percentage as warranted) of the cost of repairs and alterations, to be maintained for fifteen months from completion of repairs. See Agreements 8 and 9 of form HUD-92476.1M for further details.

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▸Contents — HUD Multifamily Accelerated Processing (MAP) Guide, HUD Handbook 4430.G (2020 ed., rev. Mar. 19, 2021)
HUD Multifamily Accelerated Processing (MAP) Guide, HUD Handbook 4430.G (2020 ed., rev. Mar. 19, 2021)

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