HUD-92433 Mortgagor's Certificate

Mortgagor's Certificate

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

To Federal Housing Commissioner
c/o

Project Name:

Project Number:

The undersigned hereby agrees to accept a loan insured by you upon the terms set forth in your Commitment dated
___________________ , 19______ , for the above captioned Project (hereinafter referred to as the "Project") and extensions and
amendments thereof, and certifies to you as follows:
1) That the undersigned possesses the powers necessary for and
incidental to the ownership, construction, and operation of
a multifamily project as required by the provisions of the
Housing Act and the Regulations applicable thereto.
2) That the instrument securing said loan is a good and valid
first lien on the property therein described, and the mortgaged premises are free and clear of all liens other than that
of the insured Mortgage except those specifically permitted
by you.
3) That upon completion of the Project there will not be
outstanding any unpaid obligations contracted in connection with the purchase of the property, construction of the
Project, or the mortgage transaction except such obligations
as may be approved by you as to terms, form, and amount.
4) That the undersigned has read the Mortgagee's Certificate
submitted to you concurrently herewith and agrees to be
bound by the terms thereof wherever applicable.
5) That, except as has been previously approved in writing by
you, no construction has been commenced on the mortgaged
premises prior hereto.
6) That the Project will be constructed in accordance with
applicable local, State, and Federal Building Codes, the
terms of the Construction Contract, if any, and with the
"Drawings and Specifications" which include the "AIA
General Conditions of the Contract" prescribed by you, and
the FHA Supplementary General Conditions, three copies of
which Contract, together with the "Master Set," and three
sets of said "Drawings and Specifications" are herewith
delivered to you as required by your Commitment.
7) That the requests for payment of Mortgage money will be
made to the Mortgagee on the basis of the "Trade Payment
Breakdown" as set forth in the Construction Contract, if any,
and the Building Loan Agreement. Further, that no material
or equipment, for which mortgage proceeds will be available, will be purchased on a conditional sale contract or
financed by a chattel mortgage, and that all work performed
and material and equipment furnished will be paid for in
cash following receipt of the advance of mortgage proceeds
intended for these items.

8) That, as the construction of the Project progresses, the
undersigned will procure and submit to you all necessary
building and other permits from the legally constituted
authorities and that all such permits now obtainable have
been procured as witness the certified copies thereof hereby
presented.
9) That the determination of the Department of Labor with
respect to prevailing wages (Davis Bacon) has been received
by the undersigned and is included as a part of the aforesaid
specifications for the construction of the Project, and all
Contractors employed by the undersigned have been or will
be fully advised prior to performance of any work that all
laborers and mechanics employed on construction of the
Project must be paid not less than such prevailing wages, and
that each such Contractor, as a condition precedent to any
payment to him/her, must certify in the form prescribed by
HUD, that all laborers and mechanics employed by him/her
or his/her subcontractors on the Project have been paid not
less than such wages.
10) That the fees and expenses enumerated in the Mortgagee's
Certificate have been fully paid or payment provided for as
set forth therein, and that the funds deposited with the
Mortgagee, as enumerated in the said Mortgagee's Certificate will be used for the purposes indicated therein.
11) That you and your authorized representatives are hereby
granted the right to enter upon the mortgaged premises at
any and all times for the purposes of the inspection thereof.
12) That occupancy of the Project in whole or in part will not be
permitted without first having received your written permission and proper permits from all legal authorities having
jurisdiction.
13) That the undersigned has no obligations except those approved by HUD and that except for such approved obligations the land included in the mortgage has been paid for in
full by the undersigned and is free from any liens at the time
of closing.

form HUD-92433 (3/2002)
Replaces FHA-2433, which is obsolete

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14) That,
a) from this date and for so long as the mortgage is insured
or held by HUD:
1) the Project books and records will be established and
maintained in accordance with the requirements of
HUD, and in such condition as to permit a speedy and
effective audit;
2) such books and records will be retained for such
period as may be prescribed by HUD;
b) the Project books and records will be available to HUD
and to the Comptroller General of the United States for
such examination and audits as they may desire to make.
15) That neither it nor anyone authorized to act for it will refuse
to rent, after the making of a bona fide offer, or refuse to
negotiate for the rental of, or otherwise make unavailable or
deny the property covered by the Mortgage to any person
because of race, creed, color, religion, sex, age, disability,
familial status, or national origin; that any restrictive covenant on such property relating to race, creed, color, religion, sex, handicapping condition, or national origin is
recognized as being illegal and void and is hereby specifically disclaimed; and that civil action for preventive relief
may be brought by the Attorney General in any appropriate
U.S. District Court against any person responsible for a
violation of this certification.

16) That if the project is occupied during construction, the undersigned will submit an accounting for all receipts and disbursements during the period beginning of marketing and rent-up
activities and ending, at the option of the undersigned, either (a)
the last day of the month in which the Project is determined by
you as acceptably complete, the date of such determination to be
furnished by you, or (b) one month from the date the Project is
determined by you as acceptably complete. The undersigned
further agrees that the excess of receipts over proper disbursements as deter- mined by you during the accountable period shall
be treated as a recovery of constructions cost.
17) That if the scheduled date of the first payment to principle
under the mortgage is more than three months after the date
the Project is determined by you as acceptably complete, the
undersigned will submit an accounting for all receipts and
disbursements for the period prescribed by you. The undersigned further agrees that any "net income" as defined by
you for such period shall be applied to advance amortization
or in such other manner as you may direct.
18)

*** That the undersigned has not collected, nor will the
undersigned collect, from Project residents or from prospective Project residents, admission fees, founders' fees, lifecare fees, or similar payments pursuant to any agreement,
oral or written, whereby the undersigned agrees to furnish
accommodations or services in the Project to persons making such payments.

Date: _______________________

Mortgagor: ____________________________________________

Attest: _________________________________________________

By: ___________________________________________________
(Signature and Title Officer)

Secretary of Housing and Urban Development
Acting By and Thru the
Federal Housing Commissioner
______________________________________________________

**
***

Date ________________________

Not applicable for non-profit and builder-seller mortgagors.
Applicable only to housing for the elderly projects and Section 232 projects.
form HUD-92433 (3/2002)

Replaces FHA-2433, which is obsolete

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