91129-ORCF Lender Certification for New Construction, Cost Certific

Lender Certification for New Construction, Cost Certifications Section 232

U.S. Department of Housing and Urban Development Office of Residential Care Facilities

OMB Approval No. 2502-0605 (exp. 03/31/2018)

Public reporting burden for this collection of information is estimated to average 3 hours. This includes the time for collecting, reviewing, and reporting the data. The information is being collected to obtain the supportive documentation which must be submitted to HUD for approval, and is necessary to ensure that viable projects are developed and maintained. The Department will use this information to determine if properties meet HUD requirements with respect to development, operation and/or asset management, as well as ensuring the continued marketability of the properties. This agency may not collect this information, and you are not required to complete this form, unless it displays a currently valid OMB control number. 

Warning: Any person who knowingly presents a false, fictitious, or fraudulent statement or claim in a matter within the jurisdiction of the U.S. Department of Housing and Urban Development is subject to criminal penalties, civil liability, and administrative sanctions. 

To the U.S. Department of Housing and Urban Development (HUD):

The undersigned hereby certifies:

Project:	Project Name
FHA Project Number:	FHA Number
Lender:	Lender Name
HUD Mortgagee No.:	HUD Mortgagee Number
Underwriter:	Underwriter Name
Loan Servicer:	Loan Servicer Name
Borrower:	Borrower Name
Operator (Lessee):	Operator/Lessee Name
General Contractor:	General Contractor Name
Audit Firm:	Audit Firm (that prepared Borrower's cost audit)
Final Completion Date:	     	Cost Cut Off Date:	     
Project is part of building with shared walls/floors with non-HUD insured or other HUD-insured project and costs were allocated: (Note: any allocated costs must be described in detail in the applicable cost certification audit)			Yes: No:
General Contractor.

Lump Sum Contract. The General Contractor is not required to provide a cost certification.

Cost Certification Required. The General Contractor was required to certify the actual construction costs. The Lender has reviewed the General Contractor’s cost certification and

Accepts the certified costs.

Accepts the certified costs with modifications. An explanation of the modifications is attached.

The Accepted costs:

Support the construction contract amount, as amended by approved change orders.

Reduce the construction contract amount. The allowable construction contract amount is      .

2. Subcontractors.

Not Required. No subcontractors are required to provide a cost certification.

Cost Certification Required. The following Subcontractors were required to certify the actual construction costs: list Subcontractors required to cost certify.

Subcontractor:      

Subcontractor:      

Subcontractor:      

The Lender has reviewed the cost certifications provided by the Subcontractors and

Accepts the certified costs.

Accepts the certified costs with modifications. An explanation of the modifications is attached.

The Accepted costs:

Support the construction contract amount, as amended by approved change orders.

Reduce the construction contract amount. The allowable construction contract amount is      .

3. Operator (Lessee).

Not Applicable. The facility is not leased.

The facility is leased to a non-identity-of-interest operator and the lease payment is reflected as income on the Borrower’s operating statement.

The facility is leased to an identity-of-interest operator and the Borrower’s operating statement includes the income and expenses of the facility as if it were not a leased facility.

4. Borrower.

The Lender certifies to the following with respect to the loan application submitted for the Project:

1. The Auditor for the Borrower’s cost certification states:

   1. that the audit “presents fairly” the actual costs and financial position of the Borrower.

   2. that the audit was conducted in compliance with Government Auditing Standards accepted in the United States of America and the Consolidated Audit Guide for Audits of HUD Programs.

2. The dates and time periods recited in the audit are appropriate to the development of the facility and reflect the correct cut off and completion dates.

3. The Auditor

did NOT identify any deficiencies considered to be material weaknesses.

identified deficiencies considered to be material weaknesses. An explanation of how the Borrower is addressing those material weaknesses is attached.

4. The Lender has reviewed the cost certification provided by the Borrower and compared form HUD-92330-ORCF, Mortgagor’s Certificate of Actual Cost, against the mortgage advances made to date and

Accepts the certified costs.

Accepts the certified costs with modifications. An explanation of the modifications is attached.

5. Final Mortgage Determination.

Mortgage Increase Requested. Required Lender Narrative Supplement-Cost Certification, HUD-9444-ORCF is provided with this certification.

Based on the accepted certified costs (as modified, if applicable) the Loan to Cost criterion is recalculated as follows:

Borrower’s Certified Cost:	     
Less Lender Modifications (if any)	     
Plus Warranted price of land fully improved:	     
Equals Total Replacement Cost:	     
Multiplied by Loan to Cost Ratio at Initial Closing:	     
Supported Loan to Cost Loan Amount:	     

The mortgage is re-calculated to be the lower of:

Original Loan Amount:	     
Supported Loan to Cost Loan Amount:	     

Based on the cost certification, the Mortgage Amount

is unchanged OR will be reduced OR is unchanged AND cost savings applied to Replacement Reserves Account.

6. Signature.

The individual signing below on behalf of the Lender certifies that he/she is an authorized representative of the Lender, has acted as the Servicer for the loan which is the subject of these Lender Certifications and has sufficient knowledge to make these certifications on behalf of the Lender.

The Servicer acknowledges that he/she has reviewed the cost certifications and the original underwriting and that the reported costs, as modified by the Lender, are reasonable based on the original underwriting.

Executed this   day of  , 20 .

	Lender Name
By:
	Signature
	     
	(Printed Name & Title)

Loan Servicer

I certify that:

1. I am responsible for approving the loan advances on behalf of the Lender for this loan.

2. I have reviewed the form HUD-92330-ORCF provided in the Mortgagor/Borrower’s cost certification audit.

3. I am in agreement with the Borrower’s Certified Cost as adjusted/modified above.

The attached form HUD-92451 (or equivalent) reflects the mortgage advances made to the Borrower as of the date below.

This certification has been made, presented, and delivered for the purpose of influencing an official action of HUD in insuring the loan, and may be relied upon by HUD as a true statement of the facts contained herein.

Executed this   day of  , 20 .

By:
	Signature
	Loan Servicer Name, Title
	(Printed Name & Title)

Enclosures:

Draft Maximum Insurable Mortgage Letter (required)

Cost Certification – Borrower (required)

Cost Certification – General Contractor

Current form HUD-92451 for subject loan (required)

Lender Narrative Supplement-Cost Certification HUD-9444-ORCF for Mortgage Increase Request

General Review Comments

Previous versions obsolete Page 6 of 6 form HUD-91129-ORCF (03/2018)