8.15.4 Itemized Statement of Costs

A. An itemized statement of the costs of issuance of the obligations, discounts and financing fees paid through the mortgagee must be attached to and reflected in the Lender’s Certificate, form HUD-92434M.

1. The statement must detail the use of each individual item necessary for the issuance of the obligations.

2. The Lender must review the amount of each item to ensure its reasonableness in relation to comparable projects.

3. A letter from the Regional Office Director will inform the mortgagee that HUD will recognize for cost certification purposes the costs of issuance, discounts and financing fees in an aggregate amount not to exceed 5.5% of the insured loan amount, which may be included in the mortgage for all programs (except Section 223(a)(7)).

4. The mortgagee, bond Underwriter, and/or issuer, as applicable have the option of deferring collection of additional discounts, financing fees, slow draw fees, etc., through the provision of Paragraph 20(G) of the Lender’s Certificate (form HUD-92434M).

   • The deferred collection of these items must be an obligation of a third party. Each of the third party and the mortgagee’s bond Underwriter, and/or issuer, as applicable must attest in writing that they will not look for payment from the:

• 1. Borrower,
• 2. Mortgaged property,
• 3. Mortgage proceeds,
• 4. Any reserve or deposit required by HUD and/or the mortgagee in connection with the insured mortgage transaction; or
• 5. Rents or other income from the mortgaged property.

• The Borrower may (but is not required to) issue, as evidence of the debt, promissory note to the third party for costs identified in this paragraph which contains surplus cash limitations and which HUD otherwise determines to be reasonable.

MAP Guide, March 2021 Go to beginning of Chapter 8

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Chapter 8 Mortgage Credit 8.15 Bond Financed Projects and Tax-Exempt Agency Loans

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