On May 4, 2012, HUD issued Housing Notice 2012-08.  The Notice clears up several ambiguities surrounding Section 202 Direct Loan prepayment and refinances, including addressing the following items:

• Acceptable uses of excess proceeds from refinancing
• Alleviation of requirement to escrow separate debt service savings
• Development fees for not-for-profit entities

Click on the links above for further information regarding HUD Notice 2012-08 and Section 202 Direct Loans.