13.5 Cost Certification Sequence of Events

A. Notification of Pre-Cost Certification Conference . HUD must notify the Lender, Borrower, and contractor when the project is 80% complete. HUD should notify new Sponsors and General Contractors as early as 70% completion.

1. The letter should state that he Borrower, General Contractor, their accountants, and the Lender should attend the conference.

2. Enclose with the letter:

The contact information for the Fair Housing Information Clearinghouse (1-800-767-7468);

• The internet address for Handbook IG 2000.4 Consolidated Audit Guide for HUD Programs: http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/handbo oks/oigh/2000.4; and

• Four copies of each of the applicable forms:

• http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/forms/h ud9#group2:

• 1. Form HUD-92330, Borrower's Certificate of Actual Cost, and/or
• 2. Form HUD-92330A, Contractor's Certificate of Actual Cost, if applicable.

B. Pre-Cost Certification Conference . Conduct of the Pre-Cost Certification conference is the responsibility of the assigned HUD staff and should be held before the project is 90% complete. At the conference, HUD staff will explain:

1. Substantial completion, administrative completion, and cut-off dates.

2. Documentation required for cost certification including the income statement and balance sheet.

3. Responsibility of the Borrower and accountant for computing the liquidated damages/actual damages and incentive portions, if applicable, of the construction contract using the certified amounts on form HUD-92330.

4. Necessity for a careful review and completeness of the documentation, including dates and signatures, and timeliness of the submission, HUD review, and final endorsement.

5. Any problems with prevailing wage certifications or other labor issues.

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Chapter 13 Cost Certification 13.6 Project Completion and Cut-Off Dates

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C. Cut-off date established for computation of the cost certification . Submission and HUD approval of the cost certification must occur before final closing, except that the Section 223(f) supplemental cost certification is not required until completion of non-critical repairs deferred until after closing.

D. Certificate of Actual Cost . The Borrower and General Contractor, if applicable, must submit the Certificate of Actual Cost to the Lender for review prior to the Lender’s submission to the HUD assigned Underwriter. The HUD Underwriter will review the cost certification and determine the Maximum Insurable Mortgage using formHUD-92580.

E. Maximum Insurable Mortgage . Form HUD-92580, Maximum Insurable Mortgage, is a required final endorsement exhibit. Record in Schedule 1 of the Form any additional conditions that must be met as part of final endorsement.