Previous versions are obsolete Page 1 of 1 form HUD-92561 (2/2020)
ref HUD Handbook 4000.1
Borrower's Contract with Respect to
Hotel and Transient Use of Property
U.S. Department of Housing
and Urban Development
Office of Housing
Federal Housing Commissioner
OMB Approval No. 2502-0059
(Expires 12/31/2023)
By this contract between the person signing as
Borrower/Mortgagor, and hereinafter referred to as the
Borrower, and the Secretary of Housing and Urban
Development, hereinafter referred to as the Secretary, the
parties hereto agree and covenant as follows:
The Secretary has been requested to insure a mortgage on
the housing identified in the caption hereof under the
provisions of the National Housing Act, as amended:
The Borrower, as the owner of said property by reason of
such mortgage insurance, will receive the benefits of
-
said Act;
Section 513(a) of the National Housing Act, as amended,
provides that as long as mortgage insurance is outstanding,
no portion of the housing covered by any such mortgage shall
be used for transient or hotel purposes;
The Secretary has defined the term transient or hotel
purposes to mean (1) any rental for a period less than 30
days, or (2) any rental if the occupants of the housing
accommodations are provided customary hotel services such
as room service for food and beverages, maid service,
furnishing and laundering of linen, and bellboy service.
In consideration of the foregoing the Borrower covenants and
agrees that so long as any of the housing identified in the
caption hereof or any part thereof is subject to a mortgage
insured under the provisions of the National Housing Act, the
Borrower, his/her successors and assigns, will not rent, offer
to rent, permit the rental or permit the offering for rental of
such housing or any part thereof for transient or hotel
purposes.
Pursuant to 28 U.S.C. Section 1746, I certify under penalty of perjury that the foregoing is true and correct.
Warning: Anyone who knowingly submits a false claim, or makes false statements is subject to criminal and civil penalties, including
confinement for up to 5 years, fines and civil penalties. (18 U.S.C.
§§ 287,1001, and 31 U.S.C. § 3729)
Date on which this Contract
is Executed:
Secretary of HUD, by Federal Housing Commissioner:
(Signature of HUD Authorized Agent)
