19.4.13.7 Certified Closing Statement

A. Lender must submit a final detailed statement of all sources and uses identifying total development costs and disbursements (the Certified Closing Statement). This statement must be consistent with the Firm Commitment and be certified to and signed by Lender and Borrower. The statement must list the amounts to be paid to satisfy Borrower’s obligations for existing or other indebtedness, acquisition, repairs, discounts, permits and approvals, financing fees, legal expenses, organizational expenses, title and recording costs, and like items, and any Lender-required escrows for taxes, insurance or other items. If funds are processed through a title company or other escrow officer, the escrow officer must sign the Lender’s Certified Closing Statement or provide an additional Certified Closing Statement that is consistent with the Lender’s Certified Closing Statement. The RC Director will review and approve the Certified Closing Statement prior to endorsing the Note and provide written notice to the HUD Closing Attorney of said approval. Lender’s Counsel must provide the HUD Closing Attorney with two hard copies of the HUD approved Certified Closing Statement, except when instructed otherwise by the HUD Closing Attorney.

B. Borrower must disclose any additional agreements affecting the Project or the Loan. This requirement includes, but is not limited to, disclosure of:

1. Easements and joint use agreements;

2. Construction agreements between the Borrower and the General Contractor and other agreements that are required to be disclosed pursuant to the Identity of Interest Amendment to the Construction Contract and Section 19.5.5.8;

3. Indemnifications, guarantees, and hold-harmless agreements executed by Borrower;

4. Rights of first refusal, options to purchase, reversionary interests, etc.; and

5. Any document or information that would otherwise require reprocessing of the HUD Firm Commitment, increase Borrower’s cash requirements, or increase the General Contractor’s bond requirement; and

6. Tax abatement and deferral agreements. See Chapter 7, Section 7.16.

C. Lender’s Counsel must provide copies of these agreements to HUD for approval prior to execution and executed copies must be submitted at closing. These agreements cannot alter or amend HUD form documents or alter the obligations of the parties thereto without the written approval of the RC Director.

MAP Guide, March 2021 Go to beginning of Chapter 19

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

Chapter 19 Page 19-60

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

Chapter 19 Closing Guide 19.5 Additional Requirements for Insurance of Advances

Go to Table of Contents