(a) Upon its approval of the executed mixed-finance closing documents and other documents submitted and upon determining that such documents are satisfactory, and after the capital advance closing, HUD may approve the drawdown of capital advance funds in accordance with the HUD-approved drawdown schedule.
(b) Non-capital advance funds may be disbursed before capital advance proceeds or the capital advance funds may be drawn down in an approved ratio to other funds, in accordance with a drawdown schedule approved by HUD.
(c) Each drawdown of funds constitutes a certification by the mixed-finance owner that:
(1) All the representations and warranties submitted in accordance with this subpart continue to be valid, true, and in full force and effect;
(2) All parties are in compliance with their obligations pursuant to this subpart, which, by their terms, are applicable at the time of the drawdown of funds;
(3) All conditions precedent to the drawdown of the funds by the mixed-finance owner have been satisfied;
(4) The capital advance funds drawn down will be used only for eligible costs actually incurred in accordance with the provisions of this subpart and the approved mixed-finance project, which include costs stated in 12 U.S.C. 1701q(h) and 42 U.S.C. 8013(h). Capital advance funds may be used for paying off bridge or construction financing, or repaying or collateralizing bonds, but only for the portion of such financing or bonds that was used for capital advance units; and
(5) The amount of the drawdown is consistent with the ratio of 202 or 811 supportive housing units to other units.
[70 FR 54210, Sept. 13, 2005, as amended at 78 FR 37114, June 20, 2013]