For new construction, BSPRA is 10% of the estimated cost of: on site improvements, structures, general requirements, general overhead, Architect’s fees, carrying charges and financing, legal, organizational (including third party report fees), and audit expenses (total of lines 50, 63 and 67 in Section G. of form HUD-92264), exclusive of land. For substantial rehabilitation projects, BSPRA is 10% of the above costs exclusive of the as is value of the existing structure. The BSPRA allowance will be credited against the Borrower’s required equity contribution. To use BSPRA, there must be an identity of interest between the Borrower and General Contractor and there must be no paid builder’s profit contained in the mortgage calculation.
Greg Hunter Changed status to publish