What is Sponsor's Profit and Risk Allowance (SPRA)?

Sponsor's Profit and Risk Allowance (SPRA) and the HUD 221(d)(4) Loan Program

Sponsor’s Profit and Risk Allowance, or SPRA, is no more than 10% of the total estimated cost of: architect's fees, carrying and financing charges, legal, organizational, and audit expenses. In contrast to Builder-Sponsor’s Profit and Risk Allowance (BSPRA), SPRA is used when there is no identity of interest between the mortgagor and general contractor. 


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