13.10.3 Section 223(f) Projects

A. The Borrower must certify to the total costs incurred in the acquisition or refinancing of the property using form HUD-2205-A, Mortgagor's Certificate of Actual Cost. The certification must be dated and signed by an authorized agent of the Borrower. An accountant's opinion is not needed.

1. The certification must be submitted after all critical repairs have been completed, but at least 15 days before the desired closing date.

2. The General Contractor will be required to cost certify using form HUD-92330A if a cost-plus construction contract is used.

3. A balance sheet and income statement are not required.

4. For cases involving deferred repairs, the Borrower must submit a supplemental cost certification (form HUD-2205-A) detailing the actual cost of the deferred repairs.

5. No cost certification is required for a 207/223(f) refinancing transaction where the mortgage is equal to or less than 80% of value at the time of issuance of the Firm Commitment.

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Chapter 13 Cost Certification 13.11 Deficiencies in Cost Certification Submission

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