24 CFR § 241.1069 - Escrow requirements.

---
identifier: "/us/cfr/t24/s241.1069"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "24 CFR § 241.1069 - Escrow requirements."
title_number: 24
title_name: "Housing and Urban Development"
section_number: "241.1069"
section_name: "Escrow requirements."
chapter_name: "OFFICE OF ASSISTANT SECRETARY FOR HOUSING—FEDERAL HOUSING COMMISSIONER, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT"
subchapter_number: "B"
subchapter_name: "MORTGAGE AND LOAN INSURANCE PROGRAMS UNDER NATIONAL HOUSING ACT AND OTHER AUTHORITIES"
part_number: "241"
part_name: "SUPPLEMENTARY FINANCING FOR INSURED PROJECT MORTGAGES"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "12 U.S.C. 1715b, 1715z-6, and 1735d; 42 U.S.C. 3535(d)."
regulatory_source: "36 FR 24653, Dec. 22, 1971, unless otherwise noted."
cfr_part: "241"
---


# 241.1069 Escrow requirements.

(a) An equity loan provided in connection with a plan of action under subpart B of part 248 of this chapter shall provide for the lender to deposit, on behalf of the borrower, 10 percent of the loan amount in an escrow account, controlled by the Commissioner or a State housing finance agency approved by the Commissioner, which shall be made available to the borrower upon the expiration of the 5-year period beginning on the date the loan is made, subject to compliance with § 248.147 of this chapter.

(b) An equity loan provided in connection with a plan of action under either subpart B or subpart C of part 248 of this chapter shall provide for the lender to phase in advances to reflect project rent levels.