Department of Housing and Community Development (HCD) Closing Checklist
         Project Name:                                                         Sponsor:  
         HCD Loan Number:                                                Sponsor Contact:  
         HCD Loan Officer:                                                Sponsor Phone:  
         HCD AMC Rep:                                                         Borrower:  
           Sponsor to submit all checklist items well in advance of the anticipated construction loan closing, occupancy, and permanent loan closing dates.  Underlined items are hyperlinked to 
             regulations, HCD forms or guidelines (click on cell to open hyperlink).  Item numbers with a plus (+) indicate an item for which HCD provides a form or format.  Shaded items to be 
            submitted to the HCD Asset Management and Compliance (AMC) Section.  Multifamily Housing Program (MHP) and Uniform Multifamily Regulations (UMR) are cited for informational 
                                        purposes only and are not an exhaustive list of applicable regulations and governing statutes.
                                   PLEASE NOTE:  HCD must approve all changes made to the project subsequent to the HCD Award Letter date.
                                   HCD requires notification when any of the required submittals are amended, rescinded or altered in any way.
              Unshaded Items in the checklist to be submitted to:                           Shaded Items in the checklist to be submitted to:
                                0
                          Department of HCD                                                            Department of HCD
                Rental Housing Development Section (RHDS)                                  Asset Management and Compliance (AMC) Section
                     2020 W. El Camino Ave, Suite 650                                             2020 W. El Camino Ave, Suite 400
                           P.O. Box 952054                                                              P.O. Box 952054
                       Sacramento, CA 94252-2054                                                    Sacramento, CA 94252-2054
                            (916) 263-2771                                                              (916) 263-2771
           By signing below, Sponsor acknowledges receipt of the Closing Checklist and understands that failure to submit the required documents in a timely manner may result in a loss of the 
                    funding commitment or a delay in loan closing.  Sponsor is advised to contact the assigned Loan Officer with any questions about the required documents.
                             Print Name
                    Authorized Signature (Per Resolution)                                                              Date
                                                        Please complete page one, sign and return to:
                                                                      0
                                                                 Department of HCD
                                                         Rental Housing Development Section (RHDS)
                                                            2020 W. El Camino Ave, Suite 650
                                                                  P.O. Box 952054
                                                              Sacramento, CA 94252-2054
                                                            Retain one copy for your records
             Version:  1/13/14                   Closing Checklist and forms can be found online: www.hcd.ca.gov/fa/mhp/MHP-LoanClosing/  or  http://www.hcd.ca.gov/fa/fwhg/FWHG-LoanClosing/  
                                                                                                                        EXHIBIT B (Page 1 of 5)  
                                                                                             A.  Items Due Before Construction Loan Closing
                                                                                                                                                                                        d
                                                                                                                                                                                        e
                Item                                                                                                                                   MHP/UMR            Date          v                                           File
                                                  Item Description                                            Reference/Guidelines                                                      o          Deficiency/Comment
                 No.                                                                                                                                  Regulations        Recvd.         r                                           No.
                                                                                                                                                                                        p
                                                                                                                                                                                        p
                                                                                                                                                                                        A
                           Construction and Title Documents
                                                                                                   Guidelines with Model Contract Addendum.
                A.1+ Physical Needs Assessment (PNA) consultant qualifications.                            Fannie Mae PNA Guidelines.                  8309(b)(2)                                                                   LO-1
                                                                                                           Fannie Mae PNA Form 4327.
                                                                                                   Guidelines with Model Contract Addendum.
                A.2+ PNA model contract addendum.                                                          Fannie Mae PNA Guidelines.                     8309                                                                      LO-1
                                                                                                           Fannie Mae PNA Form 4327.
                                                                                                   Guidelines with Model Contract Addendum.
                A.3+ Draft (pre construction) PNA.                                                         Fannie Mae PNA Guidelines.                                                                                               LO-1
                                                                                                           Fannie Mae PNA Form 4327.
                A.4+ Final (pre construction) PNA.                                                                                                                                                                                  LO-1
                                                                                                   Guidelines with Model Contract Addendum.
                A.5+ Replacement Reserve Study (RRS).                                                      Fannie Mae PNA Guidelines.                  8309(b)(1)                                                                   LO-1
                                                                                                           Fannie Mae PNA Form 4327.
                                                                                                  Rehab projects only.  Work write-up or Scope 
                 A.6   Construction plans/specs and/or detailed scope of work.                      of Work must be in sufficient detail to show         7316(a)                                                                    LO-1
                                                                                                    compliance with PNA recommendations.  
                 A.7   Article XXXIV requirement satisfied or inapplicable.                         See HCD Article XXXIV Guidelines Memo.                                                                                          LO-1
                           For Rehabilitation projects, submit items B.1 - B.7 to the AMC Section at this project phase.
                A.8+ Statement of assurances relating to state prevailing wage                            See Management Memo 02-1.                      7316(e)                                                                    LO-3
                       compliance.  Must include general contractor's signature.
                 A.9   Reports (acoustics, soils, foundation and other).                                                                               7320(a)(6)                                                                   LO-2
                A.10 Current preliminary title report.                                                        Less than 90 days old.                      8303                                                                      LO-3
                A.11 Ground lease.                                                                                                                        8316                                                                        7
                                                                                                 If applicable, enter name of 1st senior lender, 
                                                                                                 loan amount and lien position in comments field.
                A.12 Construction loans that will convert to a permanent loan or that will remain on title at the time of HCD loan recordation - Bond Financing Term Sheet and all executed documents, exhibits and attachm13eants.
                                                                                                         See Management Memo 07-01.
                       Construction loans that will convert to a permanent loan or that will      If applicable, enter name of 1st junior lender 
                A.12 remain on title at the time of HCD loan recordation - all executed             (to HCD), loan amount and lien position in                                                                                      14a
                       documents, exhibits and attachments.                                                       comments field.
                       Construction loans that will convert to a permanent loan or that will      If applicable, enter name of 2nd junior lender 
                A.12 remain on title at the time of HCD loan recordation - all executed             (to HCD), loan amount and lien position in                                                                                      14b
                       documents, exhibits and attachments.                                                       comments field.
                       Construction loans that will convert to a permanent loan or that will      If applicable, enter name of 3rd junior lender 
                A.12 remain on title at the time of HCD loan recordation - all executed             (to HCD), loan amount and lien position in                                                                                      14c
                       documents, exhibits and attachments.                                                       comments field.
                           Environmental and Miscellaneous Documents
                A.13 Relocation plan.                                                              If there is or will be displacement and budget         7315                                                                      LO-1
                                                                                                            shows relocation expense.
                A.14 Appraisal showing as-is value of property being purchased.                      Other lender appraisals are acceptable.         7309(a) and (e)                                                                LO-3
                A.15 Phase I environmental site assessment.                                                                                         7320(a)(6)7320(b)(6)(A)(2)                                                      LO-2
                A.16 Asbestos assessment.                                                                  If site has existing buildings.                                                                                          LO-2
                A.17 Lead based paint report.                                                    If buildings constructed before 1978 exist on site.                                                                                LO-2
                A.18 Phase II environmental site assessment.                                               If recommended by Phase I.                                                                                               LO-2
                                                                                                                                                         7301(n)
                A.19 Rental subsidy contracts or commitments.                                                     (Copy to AMC)                          7307(c)                                                                     24
                                                                                                                                                    7320(b)(1)7320(b)(6)(A)(6)
                A.20+ Digital photograh of construction Project sign.                                Guide to construction sign requirements.          7321(a)(14)                                                                  LO-1
                A.21+ HCD Closing checklist, signed by authorized person per resolution.                                                                                                                                              1
                                                                                                                                                                                                            EXHIBIT B (Page 2 of 5)  
                                                                                                  B.  Items Due Before Occupancy
                                                                                                                                                                                    d
                                                                                                                                                                                    e
                Item                                                                                                                                MHP/UMR            Date         v                                           File
                                                 Item Description                                           Reference/Guidelines                                                    o          Deficiency/Comment
                 No.                                                                                                                               Regulations      Received        r                                           No.
                                                                                                                                                                                    p
                                                                                                                                                                                    p
                                                                                                                                                                                    A
                           Management Documents (items B.1 - B.7) must be submitted to the AMC Section 60 days prior to occupancy.
                       AMC 186 - Project Closing Report for MHP Projects with Supportive Housing (SH), Governor's Homeless Initiative (GHI), Homeless Youth (HY) and/or Special Needs Populations (SNP).
                B.0+                                                                                          Use model format.                  HCD Loan Docs                                                                  21
                B.1+ Proposal for Management Agent.                                              Use model format; HCD requires signature.             7324                                                                     21
                B.2+ Management Agreement.                                                                                                            7324(c)                                                                   21
                B.3+ Management Plan Checklist.                                                               Use model format.                   7324(b) and (d)                                                               21
                 B.4   Management Plan.                                                                                                             7321(b)(5)                                                                  21
                                                                                                                                                  7324(b) and (d)
                                                                                                                                                       7312
                                                                                                                                                 7321(b)(1-3,6-7)
                B.5+ Rental Agreement, exhibits and HCD Lease Addendum.                              Use model format for the addendum.                                                                                         21
                                                                                                                                                       7324
                                                                                                                                                       8307
                                                                                                                                                    7324(d)(11)
                B.6+ Appeal and grievance procedure.                                                  Model procedure is recommended.                                                                                           21
                                                                                                                                                  8307(b) and (c)
                B.7+ Evidence of hazard and liability insurance. Submit certificate with the    Refer to AMC Insurance Guidelines Checklist.                                                                                    22
                       liability endorsement.
                                                                                               Use HCD format. Requires Management Agent,              7308
                                                                                                      Borrower or Sponsor Certification.                                                                                        24
                                                                                                                                                    7321(b)(4)
                B.8+ Initial proposed operating budget and explanation of budgeted costs (electronic version required).                                7326
                                                                                               If service coordinator salary included in operating expenses, submit supporting documentation                                    21
                                                                                                                                                       8310
                                                                                                                                                       7312
                B.9+ Schedule of Rental Income (electronic budget).                            Use HCD format. Requires Management Agent,             7321(b)                                                                   24
                                                                                                      Borrower or Sponsor Certification.
                                                                                                                                                      7324(b)
                           Post-Construction Documents
                B.10 Letter from local housing authority transmitting current utility                     (Also send copy to AMC)                     7301(n)                                                                   24
                       allowance chart, with relevant components circled.
                B.11+ Determination of Utility Allowance.  Confirmation of utility configuration and payme(Antl sreos psoennsdi bciloitpieys .to AMC)                                                                           24
                B.12 Draft Transaction Summary (HCD Loan Officer completes).                                                                                                                                                   LO-3
                       Updated, detailed Supportive Housing (SH) or Special Needs                                                                   7320(a)(8)
                       Population (SNP) Project Plan covering same topics as the plan                                                               7321(b)(17)
                B.13 required in HCD application including services funding commitments                   (Also send copy to AMC)                                                                                               10
                                                                                                                                                    7324(d)(13)
                       (applies to projects with SH or SNP units only).                                                                                7345
                       Plans for childcare and other supportive services not covered by the 
                       previous checklist item.  Include detailed plans for any space that will 
                B.14 be used for supportive services.  Identify service providers and                     (Also send copy to AMC)                      7345                                                                     10
                       include agreements between borrower and providers.  Specify 
                       services to be delivered, services funding source and criteria for 
                       determining eligibility for services.
                B.15 Lease agreements for child care and other spaces used for                                                                                                                                                  10
                       supportive services.
                B.16 Documentation regarding completion of environmental                         Verify that remediation work, if required, was                                                                                LO-2
                       mitigation/stipulations noted in Phase I environmental assessment.                  satisfactorily completed.
                B.17 Evidence of asbestos and/or lead paint abatement.                               Only if remediation work is required.                                                                                     LO-2
                B.18 Environmental operations and maintenance plan.                                 If the property is not free of hazardous                                                                                    21
                                                                                                                 substances.
                B.19 Commercial Lease                                                                                                                                                                                            7
                                                                                                                                                                                                        EXHIBIT B (Page 3 of 5)  
                                                                         C. Items Due Before Permanent Loan Closing (See Management Memo 05-2)
                                                                                                                                                                                    d
                                                                                                                                                                                    e
                Item                                                                                                                                MHP/UMR            Date         v                                           File
                                                 Item Description                                           Reference/Guidelines                                                    o          Deficiency/Comment
                 No.                                                                                                                               Regulations      Received        r                                           No.
                                                                                                                                                                                    p
                                                                                                                                                                                    p
                                                                                                                                                                                    A
                 C.1   Near Final Draft Transaction Summary.                                     Borrower authorized signature confirms loan                                                                                     3
                                                                                                              transaction details.
               C.1a+ Updated Project financing sources.                                                     Construction sources.                                                                                              LO-3
                                                                                                             Permanent sources.
                                                                                                 If borrower has a leaehold interest, a second         8303
                 C.2   Updated preliminary title report (less than 30 days old).               preliminary title report for leasehold is required.                                                                             LO-3
                                                                                               HCD may also require documentation of certain           8316
                                                                                                            underlying exceptions.
                 C.3   ALTA Land Title "As Built" Survey (HCD must be named as a party to  ALTA/ASCM/NSPS requirements showing optional survey items 2, 3, 4, 5, 6, 7, 8, 9, 10, 11(a), 15, 16, 19 (if subject to wetlandL reO-1strictions) & 20(a).
                       the transaction within the signed Surveyor's Certificate).
                       Partnership borrowers: all partnership agreement documents                                                                                                                                               18/
                 C.4   including amendments, LP-1, LP-2, loan authorization and certificate                                                                                                                                     19
                       of status from Secretary of State.
                       Corporate managing general partner or borrower:
                       articles of incorporation, by-laws, resolution, certificate of status from                                                                                                                               18/
                 C.5   the Secretary of State (SOS).                                                                                                                                                                            19/
                       Limited Liability Company managing general partner or borrower:                                                                                                                                          20
                       articles of organization, operating agreement, resolution, certificate of 
                       status from the SOS.
                 C.6   Other organizational documents and certificates.
                 C.7   All joint use and maintenance agreements.                                                                                                                                                                 7
                C.8+ Prevailing Wage Compliance Certificate.                                                                                          7316(e)                                                                  LO-3
                C.9+ Certification of Completion.                                                Signed by Borrower and General Contractor.                                                                                    LO-1
               C.10+ Architect's completion certificate.                                                 New construction certificate.                                                                                         LO-1
                                                                                                           Rehabilitation certificate.
                C.11 Statement from borrower certifying receipt of all construction warranty                                                                                                                                   LO-3
                       documents and an itemization of these documents.
                C.12 Final certificate of occupancy.                                                                                                                                                                           LO-1
                C.13 Copy of recorded notice of completion.                                                                                                                                                                    LO-1
                                                                                                                                                       7315
               C.14+ Relocation Plan Implementation Certification.                                                                                                                                                             LO-1
                                                                                                                                                    7321(a)(13)
                C.15 Grants - all fully executed grant documents, exhibits and                 If applicable, enter name of grantor and amount                                                                                 LO-3
                       attachments.                                                                           in comments field.
                                                                                                                                                       7304
                                                                                                                                                    7320(a)(3)
               C.16+ Final audited cost certification - signed.                                If non-TCAC Project, see HCD’s Audited Development Cost Certification and Financial Reporting Requirements.                       8
                                                                                                                                                    7321(a)(10)
                                                                                                                                                    8311-8312
                C.17 Evidence of property tax exemption.                                         Alternatively:  IRS and Franchise Tax Board                                                                                   LO-3
                                                                                                      letters confirming nonprofit status.
                                                                                                                                                                                                        EXHIBIT B (Page 4 of 5)