Loan size Reserve amount shall be the greater of

$75M 12 months amortizing debt service plus MIP or the amount calculated per MAP Guide Chapter 7, Section 7.14

$100M 12 months amortizing debt service plus MIP, or the amount calculated per MAP Guide Chapter 7, Section 7.14 or such amount identified through HUD analysis of the risks and the mitigants appropriate to the particular loan application

B . For large loans (=> $75 million) under Section 223(f), for properties with certificates of occupancy issued less than 3 years prior to application, a debt service reserve is required which shall be the greater of 12 months debt service (principal, interest and MIP) or 50% of any excess loan proceeds (cash out). The debt service reserve will be released upon 6 consecutive months of operating results meeting or exceeding the underwritten debt service coverage requirement, including any such months prior to endorsement. If prior to endorsement 6 consecutive months of underwritten debt service coverage have been achieved, no operating deficit reserve is required.

C . For loans greater than $100 million, HUD’s analysis of the risks and the mitigants appropriate to the loan application may require adjustment of the required DSCR, LTCR, or LTVRs, and/or the minimum

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Chapter 3 Programs 3.11 Age and Family Status Restrictions

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operating deficit or debt service reserve requirements. Lenders should detail appropriate risk mitigants for such transactions, which will be reviewed on a case-by-case basis.