+----------------------+----------+---+---------+-----------------------+
| **Property Insurance | **U.S.   |   |         | OMB Approval No.      |
| Requirements**       | De       |   |         | 2502-0029             |
|                      | partment |   |         |                       |
|                      | of       |   |         | (exp. 05/31/2006)     |
|                      | Housing  |   |         |                       |
|                      | and      |   |         |                       |
|                      | Urban    |   |         |                       |
|                      | Devel    |   |         |                       |
|                      | opment** |   |         |                       |
|                      |          |   |         |                       |
|                      | Federal  |   |         |                       |
|                      | Housing  |   |         |                       |
|                      | Admini   |   |         |                       |
|                      | stration |   |         |                       |
+----------------------+----------+---+---------+-----------------------+
| **Public reporting   |          |   |         |                       |
| burden** for this    |          |   |         |                       |
| collection of        |          |   |         |                       |
| information is       |          |   |         |                       |
| estimated to average |          |   |         |                       |
| 5 minutes per        |          |   |         |                       |
| response, including  |          |   |         |                       |
| the time for         |          |   |         |                       |
| reviewing            |          |   |         |                       |
| instructions,        |          |   |         |                       |
| searching existing   |          |   |         |                       |
| data sources,        |          |   |         |                       |
| gathering and        |          |   |         |                       |
| maintaining the data |          |   |         |                       |
| needed, and          |          |   |         |                       |
| completing and       |          |   |         |                       |
| reviewing the        |          |   |         |                       |
| collection of        |          |   |         |                       |
| information. This is |          |   |         |                       |
| part of the basic    |          |   |         |                       |
| application package  |          |   |         |                       |
| for insured          |          |   |         |                       |
| mortgages for        |          |   |         |                       |
| construction of      |          |   |         |                       |
| rental housing       |          |   |         |                       |
| projects. This is a  |          |   |         |                       |
| requirement under    |          |   |         |                       |
| Section 207(b) of    |          |   |         |                       |
| the National Housing |          |   |         |                       |
| Act (Public Law 479, |          |   |         |                       |
| 48 Stat. 1246, 12    |          |   |         |                       |
| U.S.C., 1701 et.     |          |   |         |                       |
| seq.), authorizing   |          |   |         |                       |
| the Secretary of HUD |          |   |         |                       |
| to insured           |          |   |         |                       |
| mortgages. The       |          |   |         |                       |
| information          |          |   |         |                       |
| establishes property |          |   |         |                       |
| insurance            |          |   |         |                       |
| requirements for a   |          |   |         |                       |
| proposed multifamily |          |   |         |                       |
| project. The         |          |   |         |                       |
| information is       |          |   |         |                       |
| required to obtain   |          |   |         |                       |
| benefits.            |          |   |         |                       |
|                      |          |   |         |                       |
| **Privacy Act        |          |   |         |                       |
| Notice** - The       |          |   |         |                       |
| United States        |          |   |         |                       |
| Department of        |          |   |         |                       |
| Housing and Urban    |          |   |         |                       |
| Development, Federal |          |   |         |                       |
| Housing              |          |   |         |                       |
| Administration, is   |          |   |         |                       |
| authorized to        |          |   |         |                       |
| solicit the          |          |   |         |                       |
| information          |          |   |         |                       |
| requested in this    |          |   |         |                       |
| form by virtue of    |          |   |         |                       |
| Title 12, United     |          |   |         |                       |
| States Code, Section |          |   |         |                       |
| 1701 et. seq., and   |          |   |         |                       |
| regulations          |          |   |         |                       |
| promulgated          |          |   |         |                       |
| thereunder at Title  |          |   |         |                       |
| 12, Code of Federal  |          |   |         |                       |
| Regulations. While   |          |   |         |                       |
| no assurances of     |          |   |         |                       |
| confidentiality is   |          |   |         |                       |
| pledged to           |          |   |         |                       |
| respondents, HUD     |          |   |         |                       |
| generally discloses  |          |   |         |                       |
| this data only in    |          |   |         |                       |
| response to a        |          |   |         |                       |
| Freedom of           |          |   |         |                       |
| Information request. |          |   |         |                       |
| This agency may not  |          |   |         |                       |
| conduct or sponsor,  |          |   |         |                       |
| and a person is not  |          |   |         |                       |
| required to respond  |          |   |         |                       |
| to, a collection of  |          |   |         |                       |
| information unless   |          |   |         |                       |
| that collection      |          |   |         |                       |
| displays a valid OMB |          |   |         |                       |
| control number.      |          |   |         |                       |
+----------------------+----------+---+---------+-----------------------+
|                      |          |   | \_\     |                       |
|                      |          |   | _\_\_\_ |                       |
|                      |          |   | \_\_\_\ |                       |
|                      |          |   | _\_\_\_ |                       |
|                      |          |   | \_\_\_\ |                       |
|                      |          |   | _\_\_\_ |                       |
|                      |          |   | \_\_\_\ |                       |
|                      |          |   | _\_\_\_ |                       |
|                      |          |   | \_\_\_\ |                       |
|                      |          |   | _\_\_\_ |                       |
|                      |          |   | \_\_\_\ |                       |
|                      |          |   | _\_\_\_ |                       |
|                      |          |   | \_\_\_\ |                       |
|                      |          |   | _\_\_\_ |                       |
|                      |          |   |         |                       |
|                      |          |   | *       |                       |
|                      |          |   | (Date)* |                       |
+----------------------+----------+---+---------+-----------------------+
| **TO:                |          |   | **\_    |                       |
| \_\                  |          |   | \_\_\_\ |                       |
| _\_\_\_\_\_\_\_\_\_\ |          |   | _\_\_\_ |                       |
| _\_\_\_\_\_\_\_\_\_\ |          |   | \_\_\_\ |                       |
| _\_\_\_\_\_\_\_\_\_\ |          |   | _\_\_\_ |                       |
| ***(Mortgagee)*      |          |   | \_\_\_\ |                       |
|                      |          |   | _\_\_\_ |                       |
|                      |          |   | \_\_\_\ |                       |
|                      |          |   | _\_\_\_ |                       |
|                      |          |   | \_\_\_\ |                       |
|                      |          |   | _\_\_\_ |                       |
|                      |          |   | \_\_\_\ |                       |
|                      |          |   | ***(    |                       |
|                      |          |   | Project |                       |
|                      |          |   | No.)*   |                       |
+----------------------+----------+---+---------+-----------------------+
| **\_\_\_\_\_\_\_\_\  |          |   | **\_    |                       |
| _\_\_\_\_\_\_\_\_\_\ |          |   | \_\_\_\ |                       |
| _\_\_\_\_\_\_\_\_\_\ |          |   | _\_\_\_ |                       |
| _\_\_\_\_\_\_\_\_\_\ |          |   | \_\_\_\ |                       |
| ***(Street Address)* |          |   | _\_\_\_ |                       |
|                      |          |   | \_\_\_\ |                       |
|                      |          |   | _\_\_\_ |                       |
|                      |          |   | \_\_\_\ |                       |
|                      |          |   | _\_\_\_ |                       |
|                      |          |   | \_\_\_\ |                       |
|                      |          |   | _\_\_\_ |                       |
|                      |          |   | \_\_\_\ |                       |
|                      |          |   | ***(    |                       |
|                      |          |   | Project |                       |
|                      |          |   | Name)*  |                       |
+----------------------+----------+---+---------+-----------------------+
| *\_\_\_\_\_\         |          |   | *\_     |                       |
| _\_\_\_\_\_\_\_\_\_\ |          |   | \_\_\_\ |                       |
| _\_\_\_\_\_\_\_\_\_\ |          |   | _\_\_\_ |                       |
| _\_\_\_\_\_\_\_\_\_\ |          |   | \_\_\_\ |                       |
| _\_\_\_\_\_\_\_\_\_* |          |   | _\_\_\_ |                       |
|                      |          |   | \_\_\_\ |                       |
| *(City)*             |          |   | _\_\_\_ |                       |
|                      |          |   | \_\_\_\ |                       |
|                      |          |   | _\_\_\_ |                       |
|                      |          |   | \_\_\_\ |                       |
|                      |          |   | _\_\_\_ |                       |
|                      |          |   | \_\_\_\ |                       |
|                      |          |   | _\_\_\_ |                       |
|                      |          |   | \_\_\_* |                       |
|                      |          |   |         |                       |
|                      |          |   | *(      |                       |
|                      |          |   | Project |                       |
|                      |          |   | Loc     |                       |
|                      |          |   | ation)* |                       |
+----------------------+----------+---+---------+-----------------------+

1.  Reference is made to the applicable Administrative Regulations of
    the National Housing Act under which the mortgage on the above
    property (a) is insured by the Assistant Secretary for Housing,
    Federal Housing Commissioner in accordance with a Commitment For
    Insurance or (b) will be insured by the Assistant Secretary for
    Housing, Federal Housing Commissioner in accordance with a
    previously issued Commitment To Insure Upon Completion.

2.  This notice is for the purpose of advising the Mortgagee of the
    Requirements of the Assistant Secretary for Housing, Federal Housing
    Commissioner as to the types of Property Insurance necessary to be
    maintained upon the subject property and of the estimate of the
    Commissioner of the Total 100% Insurable Value of the property. The
    attention of the Mortgagee is directed to the fact that these
    Requirements, with respect to the types of Property Insurance to be
    maintained, are continuous Requirements, as long as any mortgage
    upon the property is insured by the Assistant Secretary for
    Housing-Federal Housing Commissioner. It is the duty of Mortgagee to
    require of the Mortgagor maintenance of insurance in types and
    amounts necessary to comply with the Requirements hereinafter stated
    and as stated in the insured mortgage. The attention of the
    Mortgagee is also directed to the pertaining Administrative
    Regulations wherein of the insured mortgage upon failure of the
    Mortgagor to do so.

3.  \(a\) Attached hereto and made a part hereof is Property Insurance
    Schedule, HUD Form No. 92329, dated\
    \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_, constituting
    the estimate of the Assistant Secretary for Housing-Federal Housing
    Commissioner of the Total 100% Insurable Value of the property. The
    Property Insurance Schedule of Insurable Values is for the purpose
    of estimating the amount of Permanent Insurance, as well as the
    amount of Builders Risk Insurance.\
    \
    (b) The Total 100% Insurable Value reflected upon the attached
    Property Insurance Schedule [includes]{.underline} the cost of
    excavations, foundations, piers, or other supports which are below
    the surface of the lowest basement floor or where there is no
    basement, which are below the surface of the ground, underground
    flues, pipes, and drains. These items are generally
    [excluded]{.underline} from the Property Insurance coverage when it
    is subject to the provisions of the Coinsurance Clause or similar
    clause. If the Builders Risk Insurance or the Permanent Fire and
    Extended Coverage Insurance does not insure these items, then an
    amount acceptable to the Mortgagee may be deducted from the
    Assistant Secretary for Housing-Federal Housing Commissioner's
    estimate of the Total 100% Insurable Value for the purpose of
    estimating the amount of Builders Risk Insurance or the amount of
    Permanent Insurance.

4.  INSURANCE DURING CONSTRUCTION.\
    \
    The Requirements for this type of insurance are inapplicable when a
    Commitment To Insure Upon Completion is issured.

\(a\) Concurrently with or prior to the issuance of mortgage insurance
by the Assistant Secretary for Housing-Federal Housing Commissioner of
any advance of mortgage proceeds for construction of the property, the
Mortgagee shall have in its possession or control and in full force and
effect, the standard form of Builders Risk Insurance policy or policies.
It shall be written upon the standard Builders Risk Completed Value
form, for Fire, Extended Coverage and Vandalism and Malicious Mischief
Insurance, in an aggregate amount equal to 100% of the Insurable Value
of the completed building or buildings.\
\
(b) The Builders Risk Insurance policy or policies shall show the
Mortgagor as the Insured and may also show as additional insureds the
general contractor and other contractors and subcontractors, as their
interests may appear. Each policy shall carry the standard form of
Non-Contribution Mortgage or Mortgagee Clause showing loss, if any,
payable to the Mortgagee (name and address) and the Assistant Secretary
for Housing-Federal Housing Commissioner, DHUD, Washington, D.C., his
successors or assigns, as interest may appear. The original of such
policy or policies shall be retained in the possession or control of the
Mortgagee and shall be maintained in full force and effect.

\(c\) Upon cancellation of the Builders Risk Insurance or any portion
thereof, Permanent Insurance shall be effected as hereinafter
stipulated.

5\. PERMANENT INSURANCE

\(a\) Fire and Extended Coverage Insurance shall be provided for the
subject property and may be either blanket coverage or by specific
allocations to individual structures. Such insurance shall be evidenced
by standard Fire and Extended Coverage Insurance policy or policies, in
amounts not less than necessary to comply with the applicable
Coinsurance Clause percentage, but in no event shall the amounts of
coverage be less than 80% of the Insurable Values or not less than the
unpaid balance of the insured mortgage, whichever is the lesser.

\(b\) The Permanent Insurance policy or policies show the Mortgagor as
the Insured and shall carry the standard form of Non-Contribution
Mortgage or Mortgagee Clause, showing loss, if any, payable to the
Mortgagee (name and address) and the Assistant Secretary for
Housing-Federal Housing Commissioner, DHUD, Washington, D.C., his
successors or assigns, as interest may appear. The original of such
policy or policies shall be retained in the possession or control of the
Mortgagee shall be maintained in full force and effect.

\(c\) BOILER EXPLOSION INSURANCE. If the boiler or boilers located in
the subject property are other than steam boilers, specific Boiler
Explosion Insurance generally is not required. If there is a steam
boiler or boilers in operation in connection with the subject property,
specific Boiler Explosion Insurance is required. In determining the
adequacy of the amount or amounts of this coverage there must be careful
review and consideration of all the facts and exposures for the purpose
of estimating the maximum possible amount of a single loss by steam
boiler explosion. The minimum limit of Boiler Explosion Insurance, when
required, is per accident, per location. After due examination of all
the related information in any given case, it may be determined this
required minimum limit of \$100,000 is inadequate. In that event a
greater amount of coverage should be provided. Determination of such
amount is the responsibility of the Mortgagee.

\(d\) Boiler Explosion Insurance, as herein required, shall be evidenced
by standard form of Boiler and Machinery policy or policies showing the
Mortgagor as the Insured and shall have attached standard Mortgagee
Interest Endorsement, showing loss, if any, or property of the Insured,
to be adjusted with and payable to the Insured and the Mortgagee (name
and address) and the Assistant Secretary for Housing-Federal Housing
Commissioner, DHUD, Washington, D.C., his successors or assigns, as
their interests may appear. The original of such policy or policies
shall be retained in the possession or control of the Mortgagee and
shall be maintained in full force and effect.

6\. FLOOD INSURANCE. *(Required whenever the property is located in an
area of special flood hazards in which flood insurance is available
under the National Flood Insurance Act.)\
* □ REQUIRED □ NOT REQUIRED

Flood insurance shall be provided for the subject property during the
term of the mortgage loan. The insurance shall be in an amount at least
equal to the outstanding principal balance of the loan, or the maximum
amount at insurance available with respect to the project under the
National Flood Insurance Act, whichever is lesser. The policy shall show
the mortgagor as insured and shall show loss, if any, payable to the
mortgagee *(name and address)* and the Assistant Secretary for
Housing-Federal Housing Commissioner, Washington, D.C., his successors
or assigns, as their interests may appear. The original of such policy
or policies shall be retained in the possession or control of the
mortgagee and shall be maintained in full force and effect.

7.  INSURANCE CARRIERS.

The acceptability of insurance carriers, types of coverage and the
forms, conditions, amounts and scope of insurance policies are
responsibilities of the Mortgagee. The Assistant Secretary for
Housing-Federal Housing Commissioner does not require that any duplicate
policies, certificates or memoranda of insurance or other evidence of
the foregoing insurance overages be submitted to him or to any of his
field offices or authorized agents.

8\. LOSS SETTLEMENT DRAFTS AND CHECKS.\
\
(a) Loss settlement drafts and checks in settlement of losses sustained
under any of the aforementioned types of insurance overages shall always
include the Mortgagee and the Assistant Secretary for Housing-Federal
Housing Commissioner as payees.

\(b\) Loss settlement drafts and checks should be forwarded to the
Assistant Secretary for Housing-Federal Housing Commissioner DHUD, Field
Office Director having jurisdiction over the area in which the property
sustaining the loss is situated, and he is responsible for the
endorsement and release of such instruments on behalf of the Assistant
Secretary for Housing-Federal Housing Commissioner

> ASSISTANT SECRETARY FOR HOUSING-FEDERAL\
> HOUSING COMMISSIONER

By
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\
*(Authorized Agent)*