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Legal Requirements for a Final Closing

Please refer to Completing Forms in How to Use the Guide for instructions on filling out forms.
The list below is a compilation of the legal documents needed for the Final Closing, which are outlined in the following HUD sources: HUD Legal Requirements for Final Closing, Section 202/Section 811, Notice H 96-102 (HUD), Attachment G, the HUD New York State Addendum, and additional New York Multifamily HUB Final Closing Requirements. Click on the link to view a copy of the original forms. For your convenience, the HUD lists have been combined below. As the Guide becomes aware of revisions of the required forms, the list will be updated.

Required Documents The HUD Attorney will require three copies of all of the following documents unless otherwise indicated below. These will be Originals (Or), Executed (E), Certified (C) or Conformed (Cn) as indicated after each document below. (N/F) means there is no form. Photocopies of fully executed documents may be submitted for conformed copies. If there is no link to a document, where applicable, obtain it from the HUD attorney assigned to your project closing. The project attorney should consult with the HUD attorney when there is a question.

(1)

(a) The Increase Note (Or,2Cn) *

(b) The Increase Mortgage (Or,2Cn) *

(c) The Consolidation Agreement or New Note and Mortgage for the Total Amount (Or,2Cn) **

(d) Modification Agreement (Or,2Cn) **

(e) Mortgage Note, (HUD-93432-CA), with Endorsement for Reduction of Principal (Or,2Cn)
Increase Mortgage, Consolidation Agreement, and Modification Agreement must be recorded.

(2) * Mortgagor's Attorney's Opinion as to Increase (Or,2Cn)

(3) Title Policy, updated by Endorsement or New Policy. Must include a UCC search report with copies of any filed statement in which HUD is not listed as the Secured Party. (Or,2Cn)

(4) Survey of completed project as-built. Must be dated within 120 days of closing and comply with ALTA/ACSM minimum standards and contain Table A Optional Specifications as described in form HUD-92457. (3Cn)

(5) Survey Instructions and Report, HUD-92457M for Report and HUD-92457A-M for instructions. Must be dated within one hundred and twenty (120) days of closing. (Or,2Cn) Note that the Surveyor's Report has been updated and contains a revised certification format which must be shown on the survey. See the Legal Requirements for Final Closing checklist above and the Minimum Standard Detail Requirements for ALTA/ACSM Land Title Surveys dated 2011 (as referenced in the current HUD Surveyor's Report Form HUD-92457A-M). See attached Notice H 2011-09, for details on the updated HUD requirements.

(6) Request for Final Closing (HUD 90175-CA) (Or,2Cn)

(7) Escrow Deposit Agreement (for incomplete on-site and/or off-site improvements) (HUD-90176-CA) Or,2C

Additionally, if required by Requisition for Disbursement of Funds (Form HUD-92403-CA) or Mortgage Credit "Items to be Paid" Memo:

(a) Escrow Agreement for Unpaid Construction Costs (HUD-90171-CA) (Or,2C)

(b) Escrow Agreement for Off-Site Facilities (HUD-90170-CA) (Or,2C)

(8) Current Incumbency Certificate for Owner and Sponsor (202) OR (811) (Or,2Cn) *
Required only if mortgage increase is involved. Contact HUD Attorney for documents. ** Required only if mortgage is decreased by Maximum Capital Advance (HUD-92580-CA). Contact HUD Attorney for documents. Additional Closing Requirements (State or Local Requirements)

(9) A Security Agreement and/or Financing Statement is required if (1) five years or more have elapsed since initial closing and a UCC-3 Continuation has not been filed within six months prior to the fifth year anniversary or (2) a current search of the UCC Financing Statements reveals the absence of proper security interest. (Or,2Cn)

(10) Permanent Certification of Occupancy must be clear and unqualified, by letter or certificate from the local municipal office or official, stating that the building as constructed is acceptable for occupancy. (3Cn)

(11) Certificate of Completion (only if Land Disposition Contract). This document must be recorded. (Or,2Cn) If the project property has been purchased from NY City and a Land Disposition Agreement contract is in effect, review it to confirm that a Certificate of Completion is required. If so, see list of documents to be submitted to NYC HPD for the Certificate of Completion.

(12) Certificate of Good Standing of Owner/Mortgagor (Or,2Cn)

(13) Owner/Mortgagor's Affidavit of No Change in organizational documents. This document must be notarized. (Or, 2Cn)

(14) Owner/Mortgagor's Corporate resolution authorizing transaction and signatory (Or, 2Cn)

(15) Attendance List (HUD will provide)

(16) General Release from the General Contractor (with alter ego clause). (Or,2Cn) ADDITIONAL CLOSING DOCUMENTS, IF ANY ALL REQUIREMENTS AS PER MULTIFAMILY HOUSING HUB'S COST CERTIFICATION COMPLETION LETTER NOTE: THE ABOVE DATED HUD FORMS SHOULD BE USED UNLESS A MORE RECENT UPDATED HUD FORM IS AVAILABLE, WHICH MAKES PREVIOUS EDITIONS OBSOLETE. Additional New York Multifamily HUB Final Closing Requirements

In addition to the final closing documents required on the above list, please also provide the following as part of the two sets of closing documents to be submitted for review to the Project Manager for your project:

1. Owner's and General Contractor's Cost Certifications

2. Evidence of all insurance based upon HUD's Permanent Insurance Requirements (HUD- 90164-CA) issued with the cost certification completion letter. See also HUD's calculation of 100% Insurable Value of Project in its Permanent Insurance Schedule issued with the cost certification completion letter.

3. Security Deposit Letter. Attach statement of account from bank.

4. Reserve for Replacement Letter to HUD.

5. Pertinent Information Letter

6. Elevator Maintenance Contract (if applicable) 7. Cost Certification close-out letter w/attachment