# Prohibition of the Escrowing of Tax Credit Equity
> **US Department of Housing and Urban Development** · Final rule. · Published 2010-08-23 · Effective 2010-09-22 · 75 FR 51914
## Document
- **Document number:** 2010-20630
- **Category:** hud-fair-housing
- **Agency:** US Department of Housing and Urban Development
- **Federal Register citation:** 75 FR 51914
- **CFR reference:** 24 CFR 200
- **Publication date:** 2010-08-23
- **Effective date:** 2010-09-22
- **Docket:** Docket No. FR-5290-F-02
## Abstract

This rule conforms HUD's Federal Housing Administration multifamily mortgage insurance regulations to a provision in Title VIII of the Housing and Economic Recovery Act of 2008 that prohibits a requirement that tax credit sales proceeds be placed into escrow, at the time of initial endorsement, for assurance of project completion and to pay the initial service charge, carrying charges, and legal and organizational expenses incident to the construction of the project. This rule does not prohibit HUD from requiring escrows of funds for other purposes, such as for working capital. The rule also makes other changes to reduce burdens on the use of tax credits.

## Source
- [Federal Register document](https://www.federalregister.gov/documents/2010/08/23/2010-20630/prohibition-of-the-escrowing-of-tax-credit-equity)
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