90176-CA Capital Advance Program Escrow Deposit Agreement

Capital Advance Program
Escrow Deposit Agreement

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

Under Section 202 of the Housing Act of 1959 or
Section 811 of the National Affordable Housing Act

OMB Approval No. 2502-0470
(exp. 8/31/2013)

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 project meets 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
(owner): _________________________________________________________________________________ , (hereinafter called
"Owner"), party of the first part, and (depository): ______________________________________________________,
(hereinafter called "Depository"), party of the second part;
Witnesseth:
Whereas, the above-named Owner is now constructing a housing project in ____________________________________________,
County of ________________________, State of

_____________________________, identified as (name of project:)

___________________________________________________________, (Project No. ________________________) under a certain
Capital Advance Agreement between the Owner and the Department of Housing and Urban Development (hereinafter called "HUD"),
dated the ____________________ day of _________________________, 20_______, which Capital Advance Ageement is by
reference incorporated herein and made part hereof; and
Whereas, the said Owner has not at the present time completed certain improvements required by said Capital Advance Agreement as
listed in the exhibit attached hereto, identified as "Exhibit A," but intends to complete said improvements; and
Whereas, in order to induce HUD to advance the entire amount of the Capital Advance provided for in said Capital Advance Agreement
prior to completion of all said improvements, the Owner desires to provide security for the completion of said improvements;
Now, Therefore, for and in consideration of the premises hereinabove set forth, the parties hereto agree as follows:
1. The Owner covenants and agrees:
(a) To complete the improvements enumerated in Exhibit A
on or before the ____________ day of _________________,
20 ____ , the said work to be done and completed free and clear
of all liens and in accordance with the Drawings and Specifications referred to in said Capital Advance Agreement. The
Owner further agrees to pay for all work and material necessary
for completion of said work.
(b) That all work performed pursuant to the provisions of
this agreement shall be subject to the Labor Standards Procedures and Prevailing Wage Requirements accepted by the
original general contractor in executing the back of HUD92448, Contractor’s Certificate of Prevailing Wage Requirements. The terms and provisions of said Form HUD-92448, are
hereby specifically accepted by the Owner. Prior to release of
any funds provided for herein, Owner shall submit HUD92448, duly executed by each and every contractor performing
any of the work and dated subsequent to completion of such
work.

Previous versions obsolete

2. The Owner herewith deposits with the Depository, and the
Depository acknowledges receipt thereof, the sum of
____________________Dollars ($ ______________), with
such deposits continously collaterialized with specific and
identifiable U.S. Government or Agency Securities prescribed
by HUD, which said sum shall be held by the Depository and
disbursed as follows:
(a) In the event the Owner completes the construction of
said improvements in accordance with the Drawings and Specifications above referred to on or before the date agreed to in
Paragraph 1 above, and there is no default under the mortgage,
the Depository shall upon receipt of written approval of said
work from HUD return to the Owner, without interest, the sum
herewith deposited and any interest earned to be paid to HUD.
(b) In the event the Owner fails to complete the improvements on or before the date agreed to in Paragraph 1, or defaults
under the mortgage, the Depository, upon receiving written
instructions from HUD so to do, shall pay to HUD the unexpended balance of the sum herewith deposited including any
interest earned to be applied in the amount and manner speci-

Page 1 of 2

form HUD-90176-CA (12/20/2005)
ref. Handbooks 4571.4 & 4571.5

fied by HUD to the obligations of the Owner.
(c) In the event the Owner fails to complete the said improvements on or before the date agreed in Paragraph 1 above
in accordance with said Drawings and Specifications and fails
to produce to the Depository the written approval of said work
by HUD, or in the event the Depository receives from HUD on
or after said date notice that the said improvements have not
been completed in accordance with Drawings and Specifications, HUD shall have the right and/or option to proceed to
complete said work in accordance with the Drawings and
Specifications and pay the cost thereof, including all costs and
charges of the Depository from the sum herewith deposited,
and for this purpose the Owner hereby irrevocably authorizes
and empowers HUD to do and perform for it, the said Owner
and in its name, place and stead, with full powers of substitution, all matters and things which HUD shall in its judgment
deem necessary and proper to be done to effectuate the completion of the said improvements in accordance with the Drawings
and Specifications and to apply the moneys herewith deposited
to the payment of debts contracted or incurred for work done or
for materials furnished therefor, or either, in and about said
work and for all expenses, costs and charges in connection
therewith, and this warrant of attorney shall be HUD’s full and
sufficient authority, and the orders given and signed by HUD
(as attorney-in-fact for the Owner) shall be good and sufficient
authority for all payments made by virtue thereof. Further, in
such event the Owner hereby irrevocably authorizes and empowers HUD to enter into and upon the said Project and take
charge thereof together with all materials and appliances there-

unto belonging, and in the name of the Owner, as its attorneyin-fact, to call upon and require the several contractors for work
to be done and for materials to be furnished in and about the
completion of said improvements to proceed to complete the
said improvements in accordance with the Drawings and Specifications or any changes, alterations, additions or modifications of the same as may be deemed expedient or necessary by
HUD and to do whatsoever shall be necessary to be done to
secure the completion of the said improvements according to
the Drawings and Specifications and in accordance with the
instructions of HUD. In the event the work is completed by
HUD in accordance with provisions hereof, any unexpended
balance of the sum deposited with the Depository shall thereupon be returned to the Owner without interest unless the
mortgage is in default.
3. 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 with it by the
Owner and for so acting the Owner hereby expressly releases
and relieves the said Depository of any and all liability or
claims of any nature. The said Depository shall have a prior lien
on said fund, however, for any and all costs or expenses
incurred by it (including court costs and reasonable attorney’s
fees) by reason of acting as Depository of the said fund.
4. This Agreement is entered into by the parties hereto for the
benefit of the holder of the Section 202 or 811 mortgage from
HUD on said project and for the benefit of HUD either of which
shall have the right to act as Depository and/or enforce the
provisions hereof.

IN WITNESS WHEREOF, the parties hereto have hereunto caused these presents to be executed on their behalf and their seals affixed
the date and year first above written.
Attest:
Owner:

By:
President:

Attest:
Depository:

By:
President:

Warning: HUD will prosecute false claims and statements. Conviction may result in criminal and/or civil penalties.
(18 U.S.C. 1001, 1010, 1012; 31 U.S.C. 3729, 3802)

Previous versions obsolete

Page 2 of 2

form HUD-90176-CA (12/20/2005)
ref. Handbooks 4571.4 & 4571.5