19.2.2.2 Procedures for Firm Application, Issuance, and Initial Closing

A. Prior to issuing a Firm Commitment, the RC Director will provide DBLS with a copy of each application for Firm Commitment (e.g., the first four pages of Application for Multifamily Housing Project (form HUD92013)). Upon request from assigned DBLS staff, the RC Director will make other Project documentation in its possession available for DBLS review, in accordance with the information collection requirements of the Paperwork Reduction Act.

1. The RC Director will obtain written confirmation of the DBLS wage decision, including copies of selected general wage determination(s).

2. The RC Director and/or HQ MHP will review the DBLS wage decision and will consult with OGC if there are any legal questions.

B. After legal questions are resolved, the RC Director will forward the DBLS wage decision to the Lender and include any additional clarifying information provided by DBLS.

C. After Firm Commitment, and after HUD receives the draft closing package, the RC Director will notify assigned DBLS staff of any Tentative Closing Date (see Section 19.1.2) and provide a copy of the draft Construction Contract (form HUD-92442M), including exhibits.

1. DBLS will review the draft Construction Contract and provide written confirmation to the RC Director indicating whether the applicable wage rates and the Supplementary Conditions to the Construction Contract (form HUD-92554M) are included in the draft submission. If DBLS informs the RC Director that the wage rates included in the draft Construction Contract are inaccurate, the RC Director will provide corrective instructions to the Lender, with a copy to the HUD Closing Attorney.

D. The RC Director will notify assigned DBLS staff of a Project’s confirmed closing date 3 to 5 business days in advance. See Section 19.1.2. The RC Director will obtain written clearance from DBLS for the Initial Closing at least 1 business day in advance of the confirmed closing date (via email or memo). The RC Director will provide a copy of the DBLS clearance to the HUD Closing Attorney as soon as possible.

E. On the morning of Initial Closing, the RC Director will contact DBLS to confirm the effective modification number for the general wage determination(s) selected for the Project. See 24 CFR 200.33 and 29 CFR

MAP Guide, March 2021 Go to beginning of Chapter 19

Bookmarked Version Go to Acronym and Abbreviation List, Glossary, Index

Chapter 19 Page 19-10

To return to this page after clicking a link, press ALT + Back Arrow

Chapter 19 Closing Guide 19.2 Initial Loan Closing Procedures for New Construction and Substantial Rehabilitation

Go to Table of Contents

1.6(c)(3)(ii). The RC Director will immediately notify Lender, Lender’s Counsel, and the HUD Closing Attorney if there are any updates to the wage decision.

F. The RC Director will coordinate with DBLS to schedule the pre-construction conference and provide DBLS with contact information for the General Contractor. See Chapter 12, Section 12.2.