For Project Development and Preservation

Richard Silverblatt Associates, Inc.
Development Milestones

Fund Reservation

State/Local Approvals

Firm Commitment Application

Pre-Construction Conference

Initial Closing

Construction Period

Rent-Up and Marketing

Pre-Cost Certification Conference

Cost Certification

Project Rental Assistance Contract

Occupancy Requirements

Final Closing


Developing a Strategy for Project

Applying for a Contract Rent

Reviewing Replacement Reserves

Refinancing a Section 202 Direct Loan

Preparing for REAC Inspections

Establishing a Project Library


HUD Bookletters

HUD Forms

HUD Handbooks

HUD Information & Web Sources

HUD Notices

HUD NY HUB Handouts

Practical Guide to 202/811 Terms

Practical Guide to HUD Section 202 and Section 811 Terms


A and E HUD Branch


Affirmative Fair Housing Marketing Plan

Amendment Money

Amount "To Be Paid"



Arbitration Clause

Architect Supervision

As of Right


B over A

Beds (Group Home)

BLA-Building Loan Agreement


Builder's Overhead

Builder's Profit

Builder's Risk Insurance


Capital Advance

Capital Advance Agreement

Cash Available to Mortgagor

Cash Requirements for Closing

Certified General Appraiser

Change Order

Conflict of Interest and Disclosure Certification

Contingency Reserve

Continuation of Title Report

Contract Rent

Costruction Analyst (HUD)

Cost Cert

Cost Estimator

Cost Not Attributable

Cost Plus Contract

Cut Off Date


Decoration Expense Line Item

Design Architect's Certification

Developer's Fee

Development Cost Limits

Direct Deposit Sign-Up Form

Dual Obligee


Efficiency Unit


Expense Budget


Final Closing

Final Inspection

Firm Commitment

Fiscal Year (HUD)

Frontline Expenses

Fund Reservation

Fund Reservation Letter


General Conditions of GC Contract

General Contractor

General Requirements

Group Home


Handicapped Access


High Cost Factor

Housing Consultant


Identity of Interest and Disclosure Certification

Income Limits

Incumbency Certification

Independent Living Apartments

Initial Closing

Inspector (HUD)

Insurable Value

Items of Delayed Completion




Least Likely to Apply

Legal (HUD)

Low-Income Family

Lump Sum Contract


Management Agent

Management Division (HUD)

Management Plan

Minimum Capital Investment

Mortgage Credit (HUD)





Notice H 96-102

Notice H 2011-18


Other Fees

Owner Corporation


Payment-Performance Bond

Permanent Log Book

Permission to Occupy

Phase I Environmental Site Assessment


Pre-Construction Conference

Pre-Cost Certification Conference

Previous Participation Certificate

Project Architect

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 construction account.

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 Project Contingency.

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 Construction.

Services performed by the project architect during the construction period.

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 Requirements."

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 guidelines.

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 Agreement (BLA).

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 cleared.

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 contractor.

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 orders.

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 project.

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 reserved.

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 project operations.

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 HUD-92452-CA.

Also known as a studio apartment or "0BR" (zero bedroom unit)

Funds that HUD requires to be set aside for specific purposes, e.g., to pay for offsite work not covered by HUD funds.

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 certification.

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.

See Builder.

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 project.

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 Section 811.

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 structure.

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 property.

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 group.

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 construction.

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 requirements.

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 projects.

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 year.

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 typically attend.

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 final closing.

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 reference.

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 HUD-92466-CA.

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 management agent.

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 following construction.

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 owner.

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 12188-0189.

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 project.

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 the project.

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 Cost Breakdown.

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 utility allowance.

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 commitment.

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 Low-Income.

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)

Project Name

Project Number



Regulatory Agreement



Reserve For Replacement

Residual Receipts


Section 3

Security Deposit Account



Single Asset Corporation

Site Not Attributable


Sponsor's Other Fees

Supplementary Conditions to
GC Contract


Tenant Contribution to Rent

Ten Percent Gross Shelter Rent

Total Development Cost

Total Replacement Cost


Trade Payment Breakdown



Twenty-Five Thirty

Twenty-Three Twenty-Eight

Twenty-Two Sixty-Four





Utility Allowance


Valuation (HUD)

Very Low-Income Family



Waiting List

Working Capital

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 HUD.
Home>Practical Guide to HUD Section 202 and Section 811 Terms