[Code of Federal Regulations]

[Title 24, Volume 4]

[Revised as of April 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 24CFR941.612]



[Page 390-391]

 

                 TITLE 24--HOUSING AND URBAN DEVELOPMENT

 

CHAPTER IX--OFFICE OF ASSISTANT SECRETARY FOR PUBLIC AND INDIAN HOUSING, 

               DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

 

PART 941_PUBLIC HOUSING DEVELOPMENT--Table of Contents

 

Subpart F_Public/Private Partnerships for the Mixed Finance Development 

                         of Public Housing Units

 

Sec.  941.612  Disbursement of grant funds.



    (a) Front-end drawdowns. A PHA may request front-end assistance for 

both scattered or non-scattered site development in accordance with the 

following requirements:

    (1) Front-end assistance may be used to pay for materials and 

services related to proposal development, and may also be used to pay 

for costs related to the demolition of existing units on a proposed site 

or for preliminary development work;

    (2) HUD shall determine on a case-by-case basis the maximum amount 

that may be drawn down by a PHA to pay for preliminary development 

costs, based upon a consideration of the nature and scope of activities 

proposed to be carried out by the PHA;

    (3) Before a request for front-end assistance may be approved, the 

PHA must provide HUD with such information and documentation as HUD 

deems appropriate from the list set forth at Sec.  941.606. In 

determining the extent of the PHA's submissions under this paragraph 

(a), HUD shall ensure that it has adequate information or documentation 

to enable it to carry out any statutory, executive order, or other 

mandatory upfront reviews under this subpart. These reviews shall 

include, but shall not be limited to, environmental reviews (including 

NEPA and historic preservation), intergovernmental review, section 213 

clearance (24 CFR part 791, subpart C), and subsidy layering. If, upon 

completing these reviews, HUD determines that the proposed development 

is approvable, it may execute with the PHA a front-end ACC amendment and 

the special mixed-finance amendment to the ACC (and/or grant agreement) 

to provide advances for the purposes, and in the amounts, approved by 

HUD.

    (b) Standard drawdown requirements. HUD will review the evidentiary 

materials and other documents submitted pursuant to Sec.  941.610, and, 

upon determining that such documents are satisfactory, may approve a 

drawdown of development funds, consistent with the following 

requirements:

    (1) A PHA may only draw down public housing development funds in an 

approved ratio to other public and private funds, in accordance with a 

draw schedule prepared by the PHA and approved by HUD. The PHA and its 

partner shall certify, in a form prescribed by HUD, prior to the initial 

drawdown of public housing development funds that the PHA will not draw 

down and the partner will not request more public housing grant funds 

than necessary to meet the PHA's pro rata share of the development 

costs. The PHA shall draw down public housing development funds only 

when payment is due and after inspection and acceptance of work covered 

by the draw. The PHA shall release funds to its partner promptly, 

normally within two working days of receipt of the funds from HUD, and 

only in accordance with the ratio approved by HUD. The PHA's partner 

shall take prompt action to distribute the funds, normally within two 

working days of receipt of the funds from the PHA;

    (2) Each drawdown of public housing development funds constitutes a 

certification by the PHA that:



[[Page 391]]



    (i) All the representations and warranties of the PHA, as submitted 

in accordance with this subpart, continue to be valid, true, and in full 

force and effect;

    (ii) The PHA is in full compliance with all of the PHA's obligations 

pursuant to this part which, by their terms, are applicable at the time 

of the drawdown of the public housing development funds, and that to the 

best of the PHA's knowledge, it is not in default under the ACC, as 

amended;

    (iii) All conditions precedent to the PHA's authority to draw down 

the public housing grant funds have been satisfied;

    (iv) The public housing grant funds to be drawn down will be used 

for eligible costs actually incurred or to be incurred in accordance 

with the provisions of this subpart and the approved proposal; and

    (v) The ratio for the draw down of funds is satisfied.

    (c) The standard drawdown requirements set forth in paragraph (b) of 

this section (including the requirement that public housing development 

funds must be drawn down in an approved ratio to other public and 

private funds) do not apply to front-end assistance approved by HUD 

pursuant to paragraph (a) of this section.