13.6 Project Completion and Cut-Off Dates

A. The substantial completion date is the date the Architect dates and signs the certification on formHUD92485, Permission to Occupy Project Mortgages. The Architect is certifying that part of or all the construction work is substantially complete in accordance with the construction contract documents and that the project may be occupied for the intended use. The form is subsequently signed by HUD’s Authorized Agent. Construction must be complete except for acceptable items of delayed completion, and the Regional Center or Satellite Office will notify the Borrower, General Contractor, and Lender in writing of the substantial completion date.

B. The date the final HUD Representative’s Trip Report (form HUD-95379) is signed begins the effective date for cost certification. The Borrower has the option to include in the cost certification all soft costs incurred up to 60 days beyond this date. The date selected by the Borrower is the "cut-off date" for the soft costs.

C. The Borrower's balance sheet and operating statement date must agree with the selected cut-off date.

D. Final completion is the date the HUD Inspector signs the final HUD Representative's Trip Report (form HUD-95379) provided that the Construction Manager subsequently endorses the trip report. Construction must be 100% complete.

E. Production staff will enter “The Date of Visit” from the final form HUD-95379 as the cost cut-off date in the HUD data system, i.e. DAP (Development Application Process), and advise the Borrower of the date. The day after becomes the “Financial Assessment Subsystem (FASS) date” to mark the beginning of project operations and annual financial statement (AFS) reporting.

F. Production staff will issue a letter to all parties (Owner, Lender, RC Director (or their delegate for closing activities), Asset Management, etc.) that HUD has established the cut-off date as: “ 02/26/20XX and the Financial Assessment Subsystem (FASS) date as 02/27/20XX ”.

G. For financial reporting purposes, the day after the cut-off date is the commencement of operations and the projects’ first year of reporting annual audited financial statements. This first year will cover the period from the day after the cut-off date to the project’s fiscal year end. Once the certificate(s) of occupancy (form HUD-92485) is issued, this becomes the date Asset Management will begin monitoring the project’s financial condition (e.g., monthly financial accounting reports).

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Chapter 13 Cost Certification 13.7 Administrative Completion Date

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