19.4.9.7 Deferred Developer Fees (DDF) for Low Income Housing Tax Credit (LIHTC) Projects

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. A DDF loan in connection with a LIHTC transaction may be documented as a promissory note using the Surplus Cash Note (form HUD-92223M) or as a defined obligation in the Borrower’s organization documents. In either instance, language must be included specifying that repayment is restricted to Surplus Cash, as that term is defined in the Regulatory Agreement.

B. A DDF loan must not be secured by the Project, and its term may be shorter than the term of the FHA mortgage.

C. See Chapter 14, Section 14.12.2 and Appendix 3, Section A.3.2.1 and Section A.3.2.2 for additional guidance for DDFs.

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▸Contents — HUD Multifamily Accelerated Processing (MAP) Guide, HUD Handbook 4430.G (2020 ed., rev. Mar. 19, 2021)

HUD Multifamily Accelerated Processing (MAP) Guide, HUD Handbook 4430.G (2020 ed., rev. Mar. 19, 2021)

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