---
kind: "section"
citation: "24 C.F.R. § 242.43"
title: "24"
number: "242.43"
heading: "Application of cost savings."
url: "https://uscodex.org/cfr/24/242.43"
---

# §242.43. Application of cost savings.


At the sole discretion of HUD, any cost savings shall be used to:

- (a) Reduce the principal amount of the mortgage and the mortgagor's cash equity contribution proportionally, unless the mortgagor elects to have a greater portion of the savings used to reduce the mortgage; and/or
- (b) **Fund any additional construction or substantial rehabilitation approved by HUD.**

## Notes

### Authority

Authority: 12 U.S.C. 1709, 1710, 1715b, 1715n(f), and 1715u; 42 U.S.C. 3535(d).

### Source

Source: 72 FR 67546, Nov. 28, 2007, unless otherwise noted.