5.6.5 Modifications to the Firm Commitment

A. A modification must be made to the Firm Commitment for those projects determined to be eligible for deferred submission of final drawings, specifications, and cost estimates. Below is a sample special condition to be added to the Firm Commitment.

“As an accommodation to the Borrower, this commitment has been issued and based upon preliminary drawings, instead of the final drawings, specifications and cost estimates. At least 30 days prior to the scheduled date for Initial Endorsement [Endorsement, if pursuant to 223(f)], HUD must receive the final drawings, specifications and the Lender’s architectural/cost review report for review and approval to ensure consistency of design and cost. In the event that there is a net cumulative construction cost change of more than 5%, or a change in design concept, this commitment shall be subject to and conditioned upon the further approval of HUD, to be evidenced in writing. Based on such review this commitment may be terminated and voided by HUD, or additional conditions may be imposed, at HUD’s option.”