8.15.6 Pre-Cost Certification Conference Information
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. The Lender must demonstrate at the pre-cost certification conference that:
The net cost of negative arbitrage (i.e.: the tax-exempt escrow account yield vs. capitalized interest expense) may be recognized if there are offsetting savings in the mortgage.
Any rebate to the Sponsor/Borrower from the mortgagee, issuer, or bond Underwriter, as applicable, will reduce the mortgageable cost certification. The following are two samples of the most common types of rebates:
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Chapter 8 Mortgage Credit 8.15 Bond Financed Projects and Tax-Exempt Agency Loans
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If mortgagee/issuer/bond Underwriter contributes a portion of the initial service charge that was collected to pay discounts or other fees.
If mortgagee/ issuer/bond Underwriter refunds a portion of the construction loan interest to the Borrower or Sponsor.
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Chapter 9 Environmental Review and Requirements
9.1 Introduction
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