To standardize its lending practices, the Arizona Department of Housing has added a subordination agreement form to its loan documents. With the exception of agreements that have already been negotiated for pending transactions, the Department will use this form of subordination agreement. The document lays out the terms and conditions under which the Department will subordinate to any senior lender. Thus, the Department is sharing it, so that you may review and share it with your proposed lender as soon as possible to facilitate a smooth closing and avoid any adverse impact to your closing.