SECTION 202 AND SECTION 811- DEVELOPMENT TEAM REFERENCE GUIDE
For Project Development and Preservation
Richard Silverblatt Associates, Inc.
Following the issuance of the Firm Commitment, the owner and members of the development team will
prepare and submit documents to HUD. Scroll down to see a list of required documents to be submitted.
Documents will be submitted first to the HUD Project Manager who will in turn submit them to HUD
Legal. HUD Legal will then assign an attorney for the Initial Closing. The project attorney should then
contact the HUD attorney to establish a date for the Initial Closing.
Prior to the closing, the project attorney submits required legal documents to be reviewed by the HUD
closing attorney. Based upon this review, the HUD closing attorney and the project attorney set a date
for the initial closing. At the closing, required documents, listed above under Documents to be
Submitted, are reviewed in final form by the HUD closing attorney. In addition, plans and specifications
are signed by the owner, project architect, bonding company and general contractor. Further, invoices
are submitted to Mortgage Credit to substantiate the items listed on the Initial Requisition. The title
company representative collects documents to be recorded.
The Initial Closing takes place at the Legal branch of HUD. The Initial Closing is the event in which
important documents regarding the obligations of the owner are signed, such as the Regulatory
Agreement, and the owner receives the first HUD advance of funds. Those attending typically include
representatives from the sponsor/owner, the project architect, general contractor, a representative from
the bonding company, a representative from the title company, the project attorney, the project housing
consultant, and the HUD closing attorney.
If the Initial Closing is successful, the owner will receive a check from HUD for the amount approved on
the initial Requisition for Disbursement of Funds and the owner will then distribute checks to vendors
that have been approved for payment.
For owners who are purchasing a New York City-owned property, a common practice is to conclude a
closing with a legal representative from New York City (an attorney from the City's Department of
Housing Preservation and Development will attend the HUD closing) at some point during the HUD
Initial Closing in order to transfer the ownership from the City to the owner.
Prior to the Initial Closing, HUD will conduct a Pre-Construction Conference at HUD which
is a review of requirements for the Development Team during the construction period,
such as requisitions and change orders.