19.5.5.6 Liquidated Damages
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. Article 3.E of the Construction Contract calls for the insertion of a liquidated damages amount, as determined by the RC Director. The following calculations are set forth for informational purposes:
Liquidated damages shall equal 1 cent for each ¼ per cent of construction interest rate for each $1000 of mortgage amount divided by the number of units. Written arithmetically and expressed in dollars (not
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cents), the formula should read: ($.01) (construction rate/.0025) (mortgage amount/1000)/(number of units) = Liquidated Damages $/Unit/Day. This may be simplified and restated as: $4 x construction rate x mortgage amount/1000/number of units = Liquidated Damages $/Unit/Day.
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