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Preparation of the Owner's Initial Requisition

Once the firm commitment has been issued by HUD, the Owner is requested to prepare and submit the initial requisition to the HUD project manager. The requisition, Form HUD-92403-CA, Requisition for Disbursement of Funds, can include the line items listed below. The invoices which support the amounts requested in each line item of the requisition must be presented at the initial closing to a representative from HUD Mortgage Credit:

Architect Design Fee-100% of the design fee must be paid by initial closing. Prepare and submit to HUD Mortgage Credit at the initial closing the Mortgagor's and Architect's Certificate of Payment, Form HUD-92403.1.

Bond Premium-100% of the allowed fee amount

Other Fees-100% of fees such as topographic survey, soil test borings, filing fees

Insurance-100% of the premium. Obtain an invoice on the letterhead of the insurance company indicating the name and policy number of each insurance to be paid, the effective date of the insurance and the term of each policy. It is important that the effective date of the invoice is the same date as the initial closing. If the effective date is earlier, HUD will prorate the insurance premium to the date of the closing, and in that case, HUD will approve a lower amount than what is requested on the invoice.

Title and recording charges. The invoice is usually provided by the title representative at the closing. It should be signed and dated by the title representative.

Legal-75% of the approved legal fee

Organization-$1,000-$1,500 is the typical amount on the invoice presented by the sponsor or owner

Housing Consultant-50% of the approved fee

Environmental Consultant-100% of the fee, usually for the preparation of the Phase I Environmental Assessment

Appraisal fee-100% of the fee

Cost Estimator-100% of the fee

Land-100% of the property acquisition cost. HUD may reduce the amount to be available to the owner based upon its processing of the firm commitment. See also the Financial Requirements for Closing (which HUD distributes following the issuance of the firm commitment) which will show if there is cash available to the owner to cover property acquisition costs.

HUD requires that the initial requisition be accompanied by the Direct Deposit Sign-Up Form, 1199A and
a schedule that shows the use of the Developer's Fee.

Include a table of funding sources on page one of the Requisition.