90170-CA Escrow Agreement for Off-Site Facilities

Escrow Agreement
for Off-Site Facilities
Under Section 202 of the Housing Act of 1959 or
Section 811 of the National Affordable Housing Act

U.S. Department of Housing
and Urban Development
Office of Housing
Federal Housing Commissioner

OMB Approval No.2502-0470
(Exp. 11/30/2006)

Public reporting burden for this collection of information is estimated to average 30 minutes per response, including the time for reviewing instructions,
searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. HUD may not collect
this information, and you are not required to complete this form, unless it displays a currently valid OMB control number.
This information collection is necessary to ensure that viable projects are developed. It is important to obtain information from applicants to assist HUD in
determining if nonprofit organizations initially funded continue to have the financial and administrative capacity needed to develop a project and that the
project design meets the needs of the residents. The Department will use this information to determine if the projects meet statutory requirements with
respect to the development and operation of the project, as well as ensuring the continued marketability of the projects. This information is required in order
to obtain benefits. This information is considered non-sensitive and no assurance of confidentiality is provided.

This Agreement made this ________________ day of ________________, 20 ____, by and between
__________________________________________, hereinafter called the Depositor, and __________________________________,
a corporation having its principal office in ____________________________________________ , hereinafter called the Depository.
Witnesseth: Whereas _______________________________________________________________________________ has entered
into a certain Capital Advance Agreement with the United States of America, Secretary of Housing and Urban Development, hereinafter
called HUD, dated the _________________ day of __________________ , 20 ____ , providing for the construction of a certain housing
project to be financed by capital advances, secured by a ___________________________________________________, hereinafter
called the “Mortgage” to HUD.
Whereas it is necessary, in connection with the construction of said project, to provide certain facilities lying outside of the property
lines of the project as described in the drawings and specifications attached hereto and made a part hereof and as identified in Schedule
“A” attached hereto and which are hereinafter referred to as “off-site construction;” and
Whereas, HUD is unwilling to make advances of mortgage money for the construction of the project without satisfactory assurance that
the aforesaid off-site construction will be installed and completed and will be guaranteed against faulty workmanship and/or materials
for the period of one year from the date of acceptance by HUD; and
Whereas the Depositor is * _________________________________________________________________________ and as such is
primarily interested in the successful completion and operation of the project aforesaid and the completion of said off-site construction;
Now Therefore This Agreement Witnesseth: That for and in consideration of the premises hereinabove set forth and for the purpose
of inducing HUD to disburse the proceeds of the mortgage aforesaid for the construction of the project, and in consideration of the sum
of _____________________________________________ Dollars ($ __________________________ ) paid by the Depositor to the
Depository, with such deposits continuously collaterialized with specific and identifiable U.S. Government or Agency securities
prescribed by HUD, the parties hereto agree as follows:
1. To the Depositor upon application made by him to the Depository on
HUD Form 92464, Request for Approval of Advances of Escrow
Funds, in quadruplicate, on or above the first day of each month after
the commencement of work on off-site installations. The sum to which
the Depositor shall be entitled upon any such release of escrow funds
shall be the cost of the portions of the work acceptably completed, as
approved by HUD, computed in accordance with Schedule “A” less
10% and less prior release of escrow funds. Thirty days after the
completion of all work required by Schedule “A” to the satisfaction of
HUD, the Depository shall release to the Depository any balance in the
escrow fund herein established.

3. In the event the Depositor fails to complete the said off-site construction on or before ______________________ 20 _____ , in accordance
with drawings and specifications or Schedule “A”, or fails to produce
to the Depository the written approval of said work by HUD; or in the
event there be a default in the mortgage or acquisition of the property
by HUD, the Depository shall proceed as provided in either paragraph
(a) or paragraph (b) or paragraph (c) below:

2. If instead of performing the off-site work, (or any part thereof)
Depositor shall cause or permit the same or any part thereof to be
performed by or for the account of the municipality or political
subdivision in which the mortgaged property lies, then such proportionate part of the escrow fund as it represented by the estimated cost
of such part of the off-site of any special assessment which may be
levied against the real property included in the mortgage by reason of
such improvement, and if not so levied or assessed, or to be levied and

(a) Upon receiving written instructions from HUD that HUD is
proceeding to complete the said work in accordance with the drawings
and specifications Depository shall pay the cost thereof, including all
costs and charges of the work from the said sum deposited with it, and
for this purpose the said Depository hereby irrevocably authorizes and
empowers HUD to do and perform for it, the said Depositor and in its
name, place and stead, all matters and things which the said Depository
shall in its judgment deem necessary and proper to be done to effectu-

* Note: State here the relationship of Depositor to the project.

Previous versions obsolete

assessed, may be released to the Depositor upon completion of the
work, with the written consent of HUD, unless required to meet the
cost of the remainder of the off-site work.

Page 1 of 2

form HUD-90170-CA (11/22/2006)
ref Handbooks 4571.4 & 4571.5

balance of the said sum do deposited shall thereupon be returned by the
Depository to the Depository, without interest. The depository shall in
no event be responsible for the completion of the said work beyond the
expenditure of the sum deposited and if said sum is insufficient for
such purpose, the Depository shall be under no duty to demand or
obtain additional sums from the Depositor.

ate the completion of said off-site construction, in accordance with the
drawings and specifications, and to cause the Depository to apply the
said moneys to the payment of debts contracted or incurred for work
done or for materials furnished therefore, or either, in and about said
off-site construction and for all expenses, costs and charges in connection therewith, and for the Depository so given and signed by the said
Depository as attorney-in-fact shall be good and sufficient voucher for
all payments made by virtue thereof. Further, in such event, the
Depositor hereby irrevocably authorizes and empowers HUD to enter
into and upon and said premises and take charge thereof, together will
all materials and appliances thereunto belonging and thereupon in the
name of the said Depositor, as his attorney-in-fact, to call upon and
require the several contractors for the work to be done and for the
materials to be furnished in the about the completion of the off-site
construction, to proceed to complete and said work according to the
drawings and specifications or any changes, alterations, additions or
modifications of the said specifications as may be deemed expedient or
necessary by HUD and to do whatever in HUD's judgment is shall
deem necessary to be done to secure the completion of the said off-site
construction according to the drawings and specifications. In the event
the work is completed in accordance with the provisions hereof and
written approval of said work is given by HUD, any unexpended

(b) Upon receiving written instructions from HUD so to do, the
Depository shall pay to HUD, to be applied to the reduction of the
mortgage debt or as HUD shall so instruct, all of the unexpended
balance of the sum of deposit with the Depository. If said balance shall
be more than sufficient to pay off the mortgage indebtedness outstanding, including all costs and obligations to HUD, any balance remaining
shall be returned to the Depositor, without interest.
(c) In case there should be a default under the mortgage then the
Depository shall turn over the deposit of any remaining balance
thereof of HUD which shall thereupon acts as Depository and shall
have all powers of the Depository set forth herein and in addition shall
have the power to apply the remaining funds deposited hereunder to
any sum due under the mortgage.

It is the intention of the parties to this agreement that the Depository shall act solely at all times on instructions from HUD with respect
to the said sum deposited of any and all liability or claims of any nature. The Depositor agrees to pay all costs or expenses incurred by
said Depository (including court costs and reasonable attorneys' fees) by reason of acting as Depository of the said fund.
It Is Understood and Agreed that whenever used herein the singular number shall include the plural, the plural the singular, and the
use of any gender shall be applicable to all genders.
This agreement shall be binding upon and insure to the benefit of the respective successors and assigns to the parties hereto and upon
the legal representatives of the Depositor. The word “Mortgage” shall be deemed to include deed of trust and word “Mortgagee” shall
be deemed to include any holder of the mortgage and beneficiary of a deed of trust and their respective successors and assigns. The word
“HUD” shall be deemed to include successor or successors.
In Witness Whereof the parties hereto have caused these presents to be on their behalf and their seals affixed the day and year first above
written.
Depositor

Attest:

By:

Secretary

President

Date

Date

Depository

By:
Authorized Official

Date

Page 2 of 2

form HUD-90170-CA (11/22/2006)
ref Handbooks 4571.4 & 4571.5