SECTION 202 AND SECTION 811- DEVELOPMENT TEAM REFERENCE GUIDE
For Project Development and Preservation
Richard Silverblatt Associates, Inc.
Practical Guide to HUD Section 202 and Section 811 Terms
A and E HUD Branch
Affirmative Fair Housing Marketing
Amount "To Be Paid"
As of Right
B over A
Beds (Group Home)
BLA-Building Loan Agreement
Builder's Risk Insurance
Capital Advance Agreement
Cash Available to Mortgagor
Cash Requirements for Closing
Certified General Appraiser
Conflict of Interest and Disclosure
Continuation of Title Report
Costruction Analyst (HUD)
Cost Not Attributable
Cost Plus Contract
Cut Off Date
Decoration Expense Line Item
Design Architect's Certification
Development Cost Limits
Direct Deposit Sign-Up Form
Fiscal Year (HUD)
Fund Reservation Letter
General Conditions of GC Contract
High Cost Factor
Identity of Interest and Disclosure
Independent Living Apartments
Items of Delayed Completion
Least Likely to Apply
Lump Sum Contract
Management Division (HUD)
Minimum Capital Investment
Mortgage Credit (HUD)
Notice H 96-102
Notice H 2011-18
Permanent Log Book
Permission to Occupy
Phase I Environmental Site Assessment
Pre-Cost Certification Conference
Previous Participation Certificate
Project Contingency Reserve
Architecture and Engineering Branch.
Following processing of requisition from the Owner during
construction, HUD issues an advance of funds to the Owner's
A plan on Form HUD-935.2A which indicates newspapers and
community-based organizations that will be contacted as a
means to market to persons who are least likely to apply to
the project. See Least Likely to Apply.
Additional 202 or 811 funds that HUD assigns to a project
over and above the amount reserved at Fund Reservation.
Amount indicated in the cost certification to be paid after the
cut off date.
Acronym for "amount to make the project operational". See
Acronym for the Active Partners Performance System, which
automates the submission and review of the HUD Previous
Participation Certification, Form HUD-2530. Under APPS, the
2530 is submitted to HUD on line.
Clause to be deleted in the Owner-Architect agreement and
also in the General Conditions of the Contract for
Services performed by the project architect during the
The proposed project can be developed without the need for
a variance or a change in the local zoning code.
The ratio of the cost of community space (B) in the project to
the structural cost (A) of the project building. This is also
known as cost not attributable to residential space.
Equivalent to the number of disabled persons living in a
group home. In the Section 811 program, HUD assigns a cost
limit value to the number of beds in a group home to
calculate the capital advance.
Shorthand for Capital Advance Agreement, see below.
The person or business firm that enters into an agreement
with the Owner corporation to construct or rehabilitate items
indicated in the architect's plans and specifications.
According to HUD, "this includes all expenses of the "front
office", operations, including the salaries of Project
Managers and owners. Required to be calculated as 2% of
the subtotal of Land, Structures, and General
This is calculated on a sliding scale as a percentage of
Land, Structures, and General Requirements. See the Cost
Estimating document from HUD in the Guide for specific
One of the insurance policies to be carried by the owner
during construction. As indicated in Form HUD-90164-CA,
Property Insurance Requirements, this insurance is "to be
written on an All-Risk Completed Value form, in an
aggregate amount equal to 100% of the completed insurable
value of the building(s)." See insurable value.
The funds that the Owner receives from HUD under the 202
or 811 program to acquire and or construct (new) or
rehabilitate an approved project. The capital advance does
not have to be repaid or will bear no interest provided that
the owner develops and operates the project in accordance
with HUD regulations. The capital advance is effectively a
grant, but is technically a mortgage with repayment and
interest required if the owner is deemed by HUD to be in
default of the regulations.
Form HUD-90167-CA-NY. An agreement between HUD and
owner setting forth the terms of the 202 or 811 capital
advance and provides details of the uses of the funds. The
agreement is prepared by HUD for review by the owner prior
to the initial closing. It must be notarized. See Building Loan
This amount is determined by HUD during firm commitment
processing. It is the amount resulting by subtracting all
project development costs, with the exception of the
approved acquisition price for land, from the capital
advance or mortgage amount. The owner, also known as the
mortgagor, looks to the cash available to the mortgagor to
cover the cost of project land acquisition. If this is the case,
HUD calls this a Replacement Cost Mortgage. Sometimes, if
other development costs are high, there will not be sufficient
cash available to cover land acquisition costs.
Based on processing of the application for a firm
commitment, HUD calculates the funds required by the
owner over and above what HUD will provide.
Appraisals submitted to HUD under the 202 or 811 program
must be performed by a Certified General Appraiser, i.e.,
someone who has an appraisal license in the State of New
York beginning with the ID #46…..
Documents prepared, typically by the project architect and
general contractor, for work cited during the construction
period that reflects a variance from the original contract
plans and specifications. If HUD deems the change order a
necessity, then payment can be covered by available
contingency reserve or project contingency funds. If it is a
betterment, then it is covered by non-HUD funds, e.g., from
the sponsor/owner. Sometimes, a change order will not
result in the payment of funds, such as for an extension of
time to complete the construction contract or perhaps for a
change in an item of equivalent value. A change order could
also result in a credit from the general contractor.
Signed by each member of the board of directors of the
sponsor and owner. It is submitted with the firm commitment
application and also if any new person joins the board prior
to final closing.
A cost line item in the project development budget for
substantial rehabilitation projects only. Contingency Reserve
can only be used to pay for approved change orders. Under
Notice H 2011-18, this reserve can also be used for
unanticipated carrying and financing costs attributed to
delays in construction. See Project Contingency Reserve.
Submitted with each sponsor's requisition during
construction. It is also known as a "contin (con-tin)". An
important component in the contin is that there are no liens,
say from a subcontractor, filed against the project. If there
are, HUD will not advance funds until the liens have been
An amount determined by HUD to cover the ongoing housing
expenses of the project. Contract rent will be covered by
operating subsidies from HUD under the PRAC and by
tenants' contributions to rent.
A HUD project manager who determines allowable costs of
submitted plans and specifications. The analyst will also
review the cost certification submitted by the general
Shorthand for cost certification. A certification of actual costs
is required to be submitted by the owner (mortgagor)
following completion of construction. The general contractor
is required to submit a cost certification if a cost plus
contract is in effect. As per HUD Notice 2011-18, group homes
under Section 811 which are eligible under this Notice do
not have to cost certify.
An independent professional hired by the sponsor or owner
to prepare an estimate of construction costs in accordance
with HUD's requirements. The cost estimator's work is
submitted with the firm commitment application.
Shorthand for "cost not attributable to residential space".
See also, B over A.
An agreement entered into by the owner and the general
contractor by the HUD initial closing (see Form
HUD-92442-A-CA). The cost plus contract establishes a
contract price for the work to be done which is a maximum
value and includes profit. Under cost plus, the general
contractor cost certifies at the end of construction and is also
eligible to seek an incentive payment if construction is
completed early. The maximum amount that HUD will allow
the GC will be the contract price plus approved change
A date in the cost certification prepared by the independent
accountant for the general contractor and by the
independent accountant for the owner/mortgagor by which
all costs incurred are listed. For the general contractor, the
cut off date is the date of the HUD final inspection; for the
owner/mortgagor, the cut off date can be the date of the
HUD final inspection or up to 60 days beyond the date of the
HUD final inspection.
A line item in the project expense budget, commonly
referring to painting apartments and common areas of the
Certification submitted by the project architect with the
Owner-Architect agreement in the Firm Commitment
application indicating services to be performed and
insurance to be provided. This Certification is Attachment C
in HUD Notice H 96-102.
A line item in the project development budget that includes
the sum of specific itemized development costs. The
allowable costs to be included depend upon whether the
project follows HUD Notice H96-102 or HUD Notice H2011-18.
See Developer's Fee in the Guide..
HUD cost limits attributable to dwelling use for apartment
units. In a 202 project or 811 project (independent living
apartment), cost limits are adjusted by the number of
bedrooms per unit and type of project (elevator or
non-elevator) and for the number of beds and disabled
population served in a 811 group home Cost limits are
further adjusted by locality (see high cost factor) to be used
by HUD to determine the capital advance amount to be
Form HUD 1199 A. During construction and following
construction, when the project is in operation, HUD will be
transferring approved funds to a bank account established
by the owner. This form includes information on the bank
that will be used by the owner during construction. A
separate form will be required to be submitted prior to
construction and then with the application for the PRAC
providing information on the bank account to be used during
In the Performance-Payment Bond, the surety and the
general contractor agree to protect the interests of HUD and
the owner, who are the two or dual obligees. See Form
Also known as a studio apartment or "0BR" (zero bedroom
Funds that HUD requires to be set aside for specific
purposes, e.g., to pay for offsite work not covered by HUD
The annual operating housing budget for the project. The
Owner submits the expense budget as part of the Twenty-
Thirteen and HUD will indicate the approved budget in the
firm commitment on its form Twenty-two Sixty-four.
A legal event at HUD following the processing by HUD of the
cost certification, the completion of all construction work
and the acceptability of the project for occupancy. Typically,
all remaining payments are made by the owner in
connection with contracted services listed in the cost
A review of completed work at the project site by the HUD
inspector at the conclusion of construction. At this
inspection, the project architect presents a list and the cost
of any items of delayed completion.
A letter from HUD to the owner, with supporting processing,
indicating the amount of the capital advance that will be
available to the owner during construction, the approved
contract rent for the project as well as conditions that must
be met by the owner.
October 1st through September 30th
Operating expenses, such as bookkeeping, that are typically
performed by the sponsor organization and are not part of
the management agent fee. Frontline expenses can be
charged to the project budget and appear in the
administrative section of the annual operating budget.
The amount of the Capital Advance and the PRAC subsidies
that have been set aside for the project based upon
processing by HUD of an application for a fund reservation.
A letter from HUD to the sponsor following approval of the
application for a fund reservation for funding. The letter also
sets forth conditions of the fund reservation approval.
See current edition (1997) of AIA Document A201. This
document is attached to the general contractor's contract
and sets forth definitions of contract participants and
procedures to be followed during construction such as
changes in the work, insurance and bonds, termination or
suspension of the contract, etc. HUD requires that sections
concerning arbitration be deleted.
As per HUD's Handbook, 4450.1 as revised, this is an
allowance in the construction budget of the general
contractor for job overhead items such as supervision and
job site engineering, job office expense for the project,
temporary buildings (e.g., tool shed, toilet), temporary
utilities for construction, security costs, clean-up and
disposal of construction debris and other allowed items. See
Cost Estimating in the New York HUB Office Procedures
section of the Guide.
A permitted housing type under the Section 811 program
which is typically a single family house providing for 2 to 6
beds for residents with disabilities as well as space for
communal activities for the residents.
All 202 and 811 projects must meet HUD applicable
regulations which permit mobility impaired residents to
enter the project, gain access to his/her apartment or
bedroom in a group home and to have access to all common
areas in the project which are available to persons who are
not mobility impaired. See also UFAS and HUD handbooks
regarding design requirements to provide accessibility in the
HUD offices in Washington D.C.
A percentage adjustment to national development cost limits
to reflect local costs. Cost limits are used to determine in
part the approved 202 or 811 capital advance for a project.
For the HUD New York Office, the high cost factor is 240% of
national development cost limits and this factor is applied to
determine the fund reservation amount. During processing of
the firm commitment, the percentage may be increased to
260% with HUD authorization.
A person or firm hired by the sponsor/owner, who is
knowledgeable about the Section 202/811 program
requirements and provides a range of professional services
in connection with the submission of applications for funding
and meeting HUD requirements through to final closing.
A certification as to the business relationship between a
development team member and the sponsor and owner,
submitted by specific members of the project development
team, to include the general contractor, project architect,
housing consultant, attorney, cost estimator, management
agent and, if applicable, the private seller of the project
property or properties, in the case of scattered site projects.
Eligible tenants must be within income limits published by
HUD. See Very Low-Income Family for Section 202 and
A listing of the board members of either the sponsor or
owner to include officers and directors, the beginning date
of the current term of office and the length of the term of
office as of the certification date.
A structure allowed under the Section 811 program which
typically includes self-contained apartment units (kitchen,
living area and sleeping area and bath for each household)
and common space to be shared by all residents in the
Following the issuance of the firm commitment and financial
requirements for closing, HUD conducts a closing at its office
in which the owner signs the mortgage and note and other
required legal documents and draws down capital advance
funds associated with approved work to that date. A building
permit is presented at the initial closing and construction
starts shortly afterwards.
HUD official who visits the site periodically and inspects
work during construction and confirms or adjusts the
requisition for work completed by the general contractor.
An amount calculated by HUD for each project on Form
HUD-2329, which is to be reflected in insurance coverage
required for the owner. For the construction period, HUD
provides the owner with a Temporary Property Insurance
Schedule (on Form 2329) which indicates the 100% insurable
value of the project. The owner is required to maintain,
among other insurance coverage, builder's risk insurance in
an aggregate amount equal to 100% of the completed
insurable value of the building(s). Following construction,
the owner is required to maintain fire and extended
coverage insurance in an amount not less than 80% of the
project's current insurable value. The owner will continue to
use the insurable value shown on the Temporary Property
Insurance Schedule until HUD provides the Permanent
Insurance Schedule which will be available to the owner
following HUD's processing of the owner's cost certification.
A list of items that have not been completed as per the
construction contract is presented by the project architect to
the HUD inspector at the final inspection of construction.
As per the Mortgage Bankers Association definition: "A legal
hold or claim of one person on the property of another as
security for a debt or charge. The right given by law to
satisfy debt." If a lien appears on a continuation of title
letter, HUD will not process a requisition for an advance of
HUD funds until the lien is removed from the title letter or the
title company "passes" on the lien.
Acronym for "Land Disposition Agreement". This is an
agreement between the City of New York and the owner
corporation setting forth the terms of the sale of city
Racial or ethnic population groups listed in the 2010 U.S.
Census that meet the following definition: the statisitical
proportion of persons in racial or ethnic population groups
within the census tract where the 202 or 811 project is
located is smaller than the statistical proportion that that
racial/ethnic group represents in the larger housing market
area. As an example, say the proportion of persons
identified as "Asian alone" is 6 percent of the population of
the census tract surrounding a 202 project compared to the
12.58% proportion of the "Asian alone" population in New
York City, the housing market area from which most
residents will be drawn, then one least likely to apply group
for that project is Asian. Accordingly, in this example, the
Affirmative Fair Housing Marketing Plan will market early to
groups least likely to apply, such as Asian in this example,
by identifying newspapers and community-based
organizations that serve that least likely to apply population
Office for HUD attorneys.
According to HUD Handbook 4350.3, REV-1, "a family whose
annual income does not exceed 80 percent of the area
median income...with adjustments for smaller and larger
families". See also, Very Low-Income Family.
Form HUD-92442-CA. This is an agreement between the
owner and the general contractor in which the GC will be
paid the amount indicated in the contract plus the amount of
HUD approved change orders.
A professional organization that is hired by the owner with
HUD approval to provide a range of services to the project to
include rent up and marketing, supervision of the hired
maintenance staff, maintenance of financial records for the
project, etc. The sponsor may also elect to be the
management agent and may do so with HUD approval.
A section at the HUB responsible for monitoring and
administering projects following the completion of
A comprehensive plan for the project including the role and
responsibilities of the owner, the management agent,
superintendent and other maintenance staff, criteria for
tenant admission, maintenance schedules, rent collection
policies, house rules, procedures for emergency and all
other repairs. The management plan is submitted with the
firm commitment application.
An amount provided by the owner or sponsor equal to
one-half of one percent of the capital advance not to exceed
$10,000. Evidence of the availability of the minimum capital
investment amount is submitted with the firm commitment
application on the V.O.D.. As a requirement at the initial
closing, the owner will enter into an agreement with a
financial institution to maintain the minimum capital
investment amount in an account in accordance with HUD
A branch in HUD that reviews financial statements and
certifications from the owner and general contractor, the
VOD from the owner, requisitions for the initial and final
closings and during construction and cost certifications
submitted by the owner. HUD staff from this branch also
prepares the financial requirements for closing for 202/811
In the Section 202 and Section 811 programs, HUD is the
mortgagee, i.e., the organization that provides the mortgage
or capital advance to the owner corporation.
In the Section 202 and Section 811 programs, the Owner
Corporation is the mortgagor
Acronym for Notification of Funding Availability for the
Section 202 and Section 811 program for a specific fiscal
year. The NOFA is published in the Federal Register and sets
forth the application rules and definitions for a specific fiscal
The notice subject is: "Redesigned Section 202 Supportive
Housing for the Elderly and Section 811 Supportive Housing
for Persons with Disabilities Programs - Firm Commitment
Processing to Final Closing." This Notice provides new
procedures which modify requirements of the Section 202
and Section 811 program. Examples include: the use of
developer's fee, the requirement of a cost estimator, revised
role of HUD during processing, elimination of conditional
commitment stage, etc.
The notice subject is: "Updated Processing Guidance for the
Section 202 Supportive Housing for the Elderly and Section
811 Supportive Housing for Persons with Disabilities
Programs." The Notice revises procedures post fund
reservation approval including mixed-financing transactions.
Check with your HUD Project Manager to determine whether
your project must meet the requirements of this notice. As
per the Notice: "Section 202 and 811 applications that have
started firm commitment processing shall proceed to initial
closing and start of construction based on administrative
instructions in place before the issuance of this Notice." The
date of Issuance is August 15, 2011.
A project development cost line item such as construction
related costs not included in the general contractor's or
architect's contract. Items typically include: soil test borings,
topographic survey, building department filing fees,
engineering inspection and controlled inspections, and
energy consultant and are paid by the owner or sponsor.
The sponsor will form a single asset corporation which will
have title to the project site and obtain the capital advance
and Project Rental Assistance Contract (PRAC).
The general contractor arranges with a HUD-approved surety
to provide a bond equal to 100% of the contract price of the
project. It is presented to HUD at the initial closing. In lieu of
a bond, the general contractor may provide cash or its
equivalent in the amount of 25% of the contract price. A
letter of credit is not permitted under the Section 202 or
Section 811 program. See Dual Obligee.
A detailed record of information about each applicant for
admission to the project. Information is used by the owner to
determine eligibility for admission.
Approval by HUD on Form HUD-92485 that construction has
been completed and the project is ready for occupancy. It is
signed by the owner, the project architect, the general
contractor and by HUD. The owner submits to HUD the
proposed Permission to Occupy and to it, attaches a copy of
the temporary certificate of occupancy or permanent CO as
well as evidence of required permanent insurance.
A comprehensive study submitted to HUD in accordance with
the American Society for Testing and Material Standards E
1527-05, as amended. The Phase I includes information on
reported environmental hazards that might be on or in the
vicinity of the site and indicates if further investigation
(Phase II) is warranted.
Acronym for "Project Rental Assistance Contract". Following
the issuance of a certification of occupancy (TCO or
permanent CO) and a Permission to Occupy, HUD will enter
into a PRAC with the owner which provides operating
subsidies to the project. The term of the PRAC is indicated in
the Fund Reservation Letter.
A conference at HUD held just prior to the initial closing in
which HUD presents requirements to be followed during the
construction period, information on the submission of the
initial sponsor's requisition, change orders and Section 3
requirements. Typically, the project general contractor,
sponsor, housing consultant and project architect attend.
A conference at HUD held when construction completion has
reached 90%. HUD presents information to the general
contractor, in the case of a cost plus contract, and to the
owner regarding requirements of the cost certification. The
owner, its independent accountant, the general contractor,
its independent accountant and the housing consultant
Form HUD-2530. The Previous Participation Certificate is to
be completed each by the sponsor, owner, general
contractor, management agent and housing consultant who
certify to the role and status of previous, mainly HUD,
projects. The form is now to be submitted to HUD on line by
the Owner and Sponsor. See APPS.
A professional architect, duly licensed to work on the HUD
project. The architect performs project design and
supervisory services for the owner.
Under HUD Notive H 96-102, an amount in the project
developer's fee which is equal to about 2% of the capital
advance. It is used to cover overruns in other line items of
the project development budget. In the case of new
construction, project contingency is the only line item for
change orders. In the case of rehabilitation, HUD provides
for a contingency reserve for change orders. If contingency
reserve is depleted during construction, HUD will look to
available project contingency to cover approved change
orders. Project Contingency can also be used to fund
furniture and equipment in common areas of the project and
to cover advertising costs during marketing. Under HUD
Notice 2011-18, Project Contingency Reserve is calculated for
new construction only at 2% of Line G50, Total All
Improvements on Form HUD 92264 (Firm Commitment) to
cover necessity change orders and unanticipated carrying
costs attributed to delays in construction.
The principal HUD contact for the development team through
The name given to the project by the sponsor in the
application for a fund reservation. Example: "Wonderful
Apartments for the Elderly". The project name is different
from the name of the Owner corporation or Project Number.
A unique alpha-numeric identifier assigned by HUD for each
project at the fund reservation stage. Example:
"012-EE123/NY36-S031-001". It is recommended that any
correspondence to HUD includes the project number as a
Shorthand for The Real Estate Assessment Center (REAC).
Required financial statements are submitted to REAC. REAC
also inspects and scores projects in operation.
According to HUD, the Regulatory Agreement establishes the
relationship between HUD and the Section 202 or Section
811 Owner corporation. The agreement also delineates the
Owner's responsibilities and provides for HUD control of the
Owner corporation. This agreement is required for the initial
closing and sets forth requirements that the owner must
meet over the term of the HUD commitment. See Form
Shorthand for Real Estate Management System. For the
application for a PRAC, HUD requests the owner to complete
a form: R.E.M.S. Verification of Critical Elements in which
the owner provides contact information for the owner and
Form HUD-92403-CA, submitted by the owner, to draw down
capital advance funds. The initial requisition is submitted to
HUD following the issuance of the firm commitment so that
allowed funds will be available to the owner at the initial
closing. Progress requisitions are submitted during the
construction period. A final requisition is submitted to HUD
following HUD's review of the owner's cost certification for
the balance of HUD capital advance funds that are available
to the owner.
An amount established by HUD to be deposited monthly into
a HUD-controlled bank account by the owner starting at the
effective date of the PRAC and used for HUD-approved costs,
such as the replacement of a roof or major appliance or
building system. HUD may require that the owner also
deposit funds into the reserve for replacement account
based upon its review of the owner's cost certification
An account maintained by the owner during project
operations into which is deposited project income in excess
of project expenses. Funds in this account cannot be
withdrawn without HUD approval.
Shorthand for Section 3 of the Housing and Urban
Development Act of 1998 as amended which, according to
the Federal Register of June 30, 1994, requires that
economic opportunities generated by certain HUD financial
assistance for housing and community development
programs shall to the greatest extent feasible be given to
low- and to very-low income persons, particularly those who
are recipients of government assistance for housing and to
businesses that provide opportunities for these persons.
An separate interest bearing account maintained by the
owner into which is deposited an amount for each tenant of
the project. The amount deposited is the greater of $50 or
the monthly total tenant contribution to rent.
The person or entity that sells the property to the sponsor or
Acronym for State Historic Preservation Officer (ship-oh).
As a condition of site approval, HUD requires the SHPO to
provide a letter indicating that there are no archaeological
or historical impediments which would prevent development
of the proposed site. The address of the NYSHPO is: Field
Services Bureau, NYS Office of Parks, Recreation & Historic
Preservation, Peebles Island, P.O. Box 189, Waterford, NY
A corporation, such as the owner corporation required to be
established under the Section 202 and 811 programs, which
can only be associated with one HUD-approved project.
Site not attributable to residential space is a dollar value
established by HUD covering certain improvements in the
common areas of the building and the outdoor space of the
202/811 project site. The value is estimated by the project
cost estimator and confirmed by HUD during the processing
of the firm commitment. The approved value is a component
of the total capital advance provided by HUD for a 202/811
The organization that has received the fund reservation from
HUD and agrees to form the owner corporation. The sponsor
has also agreed to provide ongoing support to the owner
throughout the regulatory period of the project.
See Other Fees
Form HUD-2554. This document is attached to the general
contractor's agreement and according to HUD, Form
HUD-2554 and the GC contract take precedence over all
inconsistent provisions of the AIA General Conditions.
Form-2554 includes information on HUD labor standards,
Equal Employment Opportunities requirements and health
and safety requirements of workers.
Estimated at 30% of the tenant's adjustment household
income. See Contract Rent.
An annual payment in lieu of full property taxes to the City
of New York following construction. A formula to determine
the payment has been agreed to by HPD and HUD based
upon the number and size (bedrooms) of revenue units in
Total Replacement Cost less the cost of land acquisition.
All project costs for development including construction
costs, fees, carrying charges and acquisition of land. See
line G.72 of Form HUD-92013.
Acronym for Tenant Rental Assistance Certification System.
According to HUD Handbook 4350.3, REV-1 (click to link to
the Handbook in the Guide), TRACS is an electronic
submission system which "was developed to help improve
financial controls over assisted housing programs."
Electronic submissions to TRACS include data on the tennant
applicant, applications from the owner for subsidy payments,
schedules of tenant payments due and special claims, etc.
Shorthand for Form HUD-2328, Contractor's and Mortgagor's
Shorthand for Transfer of Physical Assets. HUD will process a
TPA if an owner is withdrawing from the project and is
transferring ownership to a HUD-approved organization.
Shorthand for Form HUD-92013, Application for Multifamily
Housing. The twenty thirteen is submitted by the owner with
the firm commitment application and includes the basic
physical characteristics of the project, site control
information, unit distribution, estimates of project costs,
expense budget, contract rents and utility allowance,
estimate of the capital advance, cash requirements at the
initial closing and source of cash to make payments and
information on development team members.
Shorthand for Form HUD-2530, Previous Participation
Certificate. See APPS.
Shorthand for Form HUD-2328, Contractor's and Mortgagor's
Cost Breakdown. See Trade Payment Breakdown.
Shorthand for Form HUD-92264. It is attached to the firm
commitment issued by HUD and contains the numerical
processing of HUD funding of the capital advance and
operating expenses, contract rents and utility allowance.
Shorthand for Uniform Federal Accessibility Standards
Shorthand for Uniform Land Use Review Procedure, projects
on land to be purchased from the City of New York are
reviewed by the New York City Department of Housing
Preservation Development, the local community for that
project, City Planning Commission, the applicable Borough
President and City Council.
An individual apartment in a Section 202 project or an
independent living apartment in a Section 811 project.
HUD approved amount of estimated monthly utility expenses
except for telephone which are paid directly to the tenant. If
utilities are included in the contract rent, then there is no
A branch at HUD that reviews submitted appraisals, soft costs
for the project during the construction period and the initial
operating budget for 202/811 projects and calculates the
202/811 capital advance amount to be in the firm
According to HUD Handbook 4350.3, REV-1, "a family whose
annual income does not exceed 50 percent of the area
median income...with adjustments for smaller and larger
families". Eligible tenants selected for Section 202 and
Section 811 projects must meet this criterion. Projects
funded in Fiscal Year 1995, must meet the income limits for
Shorthand for Form HUD-92004F, Verification of Deposit. This
is submitted at firm commitment and is signed by the owner
and by a bank depository official indicating available funds
to cover the minimum capital investment and funds required
over and above what HUD will provide.
As per HUD Handbook, 4350.3 REV-1, "a formal record of
applicants for housing assistance and/or assisted housing
units that identifies the applicant's name, date and time of
application, selection preferences claimed, income
category, and the need for an accessible unit. The waiting
list may be kept in either a bound journal or a computer
program. Whichever method is used to maintain the waiting
list, the owner must establish a method of documenting the
appropriate selection of applicant names from the list."
Project Manager (HUD)
Reserve For Replacement
Security Deposit Account
Single Asset Corporation
Site Not Attributable
Sponsor's Other Fees
Supplementary Conditions to
Tenant Contribution to Rent
Ten Percent Gross Shelter Rent
Total Development Cost
Total Replacement Cost
Trade Payment Breakdown
Very Low-Income Family
Under HUD Notice 2018-11, this is a HUD controlled cost
which is calculated at 2% of Total Estimated
Replacement Cost of the Project to cover
shortfalls in interest, taxes, property insurance
premiums, ground rents and assessments during
construction after funds available under the Captial
Advance Agreement are depleted. Working Capital can
also be used to offset the cost of initial marketing and
rent-up (e.g., advertizing, furnishings in common areas,
equipment and supplies essential to initial rent-up.) See
HUD Notice 2011-18 for more details on use of the
Working Capital Funds and conditions for its release by
Home>Practical Guide to HUD Section 202 and Section 811 Terms