Construction Commitment Letter

[General Contractor’s Letterhead]

NOTE:  If there is a separate Abatement Contract, the Abatement Contractor must also complete a Commitment Letter.

Instructions: Complete the information in [ ] throughout this form letter.

[Date]

[Owner Name]
[Address]

and

Minnesota Housing Finance Agency
400 Wabasha Street North, Suite 400
St. Paul, MN  55102
ATTN: Assistant Commissioner, Multifamily

RE:		CONSTRUCTION COMMITMENT
		[Name of Development]
		[Address of Development]

To Whom It May Concern:

[Name of Owner] (Owner) has selected this firm as General Contractor for the above referenced development.

We are prepared to [build] [rehabilitate] this development for [$ _______________] based upon drawings and specifications prepared by [Name of Architectural Firm] and dated [____________], and addenda number(s) [	] dated [		    ] (list all addenda and their respective dates). The completed [MHFA Form of Contractor’s and/or Mortgagor’s Cost Breakdown] [AIA Form G702/703] is attached.

Our price is based on a construction start date of [insert month, day, year] with the [construction] [rehabilitation] period being [________] calendar days, substantial construction completion scheduled for [insert month, day, year], and final construction completion scheduled for [insert month, day, year].  

Included in the construction price are all sums for construction including labor, materials, general requirements, overhead, profit, sales tax, winter condition allowance(s), other allowances, and all other fees and charges payable to the Contractor under the AIA Construction Contract, AIA General Conditions and MHFA Supplement to General Conditions of the Agreement Between Owner and Contractor. 

Page 2

EXCEPTIONS

[List any known exceptions or exclusions based upon the above listed construction start date. Insert None if there are no exceptions or exclusions.]

[INSERT THE [   ] PARAGRAPHS IF THERE IS AN IDENTITY OF INTEREST BETWEEN THE GENERAL CONTRACTOR AND THE OWNER, OTHERWISE DELETE.]

[We understand that the MHFA Supplement to General Conditions of the Agreement between Owner and Contractor also requires a Contractor's Cost Certification prepared by an independent Certified Public Accountant and that our payment for the work under this contract will be the lesser of:

a)	The Total Construction Costs shown in the Development Costs section of the Workbook dated 				, plus approved Change Orders
b)	The Cost Certified Amount]

Cost of Payment and Performance Bonds, Building Permits and Builder’s Risk Insurance [is or is not] included in the construction price.

We do hereby represent that our bonding company [Name of Company] is ready to issue 100% payment and performance bonds on this job in a form acceptable to Minnesota Housing.

We have reviewed and stand ready to execute the MHFA Supplement to General Conditions of the Agreement Between Owner and Contractor, and the Contractor’s Acknowledgement and Consent to Assignment of Construction Contract.  

[Name of Authorized Signer and their Title] is authorized to execute Minnesota Housing’s agreements on behalf of [Construction Company Name], a 				 company.

Sincerely,

[LEGAL NAME OF CONTRACTOR]

BY: [                           ]
DATED: [                    ]