19.2.1 Initial Endorsement Activities
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. Definition. For purposes of this Chapter, “Initial Closing” means the closing at which HUD initially endorses the Note for insurance of advances for new construction and substantial rehabilitation.
B. Pre-Construction Conference. The pre-construction conference must be held prior to or concurrently with the Initial Closing and must be held before the start of construction. See Chapter 12, Section 12.2 for instructions for conducting the pre-construction conference, and Appendix 5, Section A.5.5 for administrative requirements related to plans and specifications. The RC Director is responsible for ensuring that the preconstruction conference includes all necessary parties, and for scheduling and reserving space for the meeting.
C. Initial Draw of Loan Proceeds. Initial draw of Loan proceeds may be made on the day of Initial Closing, provided that no draw may occur until HUD releases the endorsed Note to Lender.
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Chapter 19 Closing Guide 19.2 Initial Loan Closing Procedures for New Construction and Substantial Rehabilitation
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