Contingency reserve refers to funds that are set aside to cover unforeseen project costs. The minimum and maximum contingency reserve is established as a percentage of the financeable repair and improvement costs.
For structures with an actual age of less than 30 years:
| Minimum | Maximum | |
| Required when evidence of termite damage | 10% | 20% |
| Discretionary | No Minimum | 20% |
For structures with an actual age of 30 years or more:
| Minimum | Maximum | |
| Required | 10% | 20% |
| Required when utilities are not operable as referenced in the Work Write-Up | 15% | 20% |
If the contingency reserve is established with the borrower's own funds, it must be noted under a separate category in the repair escrow account.
Last revised: January 28, 2016