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An operating deficit escrow is required on all applications for new construction and many applications for substantial
rehabilitation to provide funding for operating expenses and debt service when net income is not available
during the initial lease up and stabilization period. A debt service escrow may also be required for Section
223(f) proposals where analysis requires it. This escrow is not mortgageable and unused portions will be
returned to the Borrower.

Greg Hunter Changed status to publish February 9, 2021
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