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  3. Healthcare Facility Documents - Frequently Asked Questions
  4. Escrow Agreement for Non-Critical Deferred Repairs
Frequently Asked Questions About Healthcare Facility Documents
Escrow Agreement for Non-Critical Deferred Repairs
 
1.  The Escrow Agreement for Non-critical, Deferred Repairs HUD-92476-ORCF (6/2014) states, "Subject to Paragraph 7 of this Agreement, provided that an Event of Default does not then exist". Should it instead say, "Subject to Paragraph 8..."?  (11/7/14)
2.  Should the reference to Cash Out Proceeds in the Non-Critical Repair Escrow Agreement be deleted?  (7/8/16)
 
 
 
 
1.  The Escrow Agreement for Non-critical, Deferred Repairs HUD-92476-ORCF (6/2014) states, "Subject to Paragraph 7 of this Agreement, provided that an Event of Default does not then exist". Should it instead say, "Subject to Paragraph 8..."?.  (11/7/14)
 
Yes, the reference in paragraph 7 should be to paragraph 8. We will have the form corrected shortly. In the meantime, please be sure to correct this reference on your deals. This change affects the Escrow Agreement for Non-Critical Deferred Repairs (HUD-92476-ORCF) with a version date of 06/2014.
 
2.  Paragraph 7(a) of the Non-Critical Repair Escrow Agreement (HUD-92476-ORCF) provides the following: “[A]ny balance remaining in the Escrow that is attributable to the Additional Deposit Amount, the Cash Out Proceeds Amount, and any portion of the Repair Estimate Amount funded by Borrower separate from Loan proceeds, may be released to Borrower when . . . .” Should the reference to Cash Out Proceeds be deleted?(7/8/16)
 
Yes, the reference to Cash Out Proceeds should be deleted. Unlike HUD-insured multifamily mortgage loans, refinancings under Section 232 pursuant to Section 223f may not include cash out proceeds. Accordingly, the reference in the Non-Critical Repair Escrow Agreement to Cash Out Proceeds is inconsistent with HUD’s statute and regulations and should be deleted. This change will appear in the next version of the document. In the meantime, please make the change manually.