7.15.3.3 Ground Rent During Construction
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. Ground Rent during construction must be included in the estimated replacement cost of the project and in the certified cost, subject to the following conditions:
The period for which Ground Rent is estimated must be the same as that for which interest and other related charges are calculated, or the estimated construction time plus two months.
Ground Rent during construction must be entered in Line G 69 of form HUD-92264 (currently labeled “Construction Fee”). A remark must be entered in Section H, indicating that the amount in Line G 69 represents Ground Rent during construction.
Ground Rent must not be included in the base on which Section 220, 221(d) BSPRA is calculated.
The annual amount of Ground Rent during construction may not exceed the test for acceptability of Lease payments.
For rehabilitation under all Sections of the Act, Ground Rent during rehabilitation must be included in the replacement cost.
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Chapter 7 Valuation & Market Analysis 7.15 Leaseholds/Ground Leases
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