For Project Development and Preservation

Richard Silverblatt Associates, Inc.
Development Milestones

Fund Reservation

State/Local Approvals

Firm Commitment Application

Pre-Construction Conference

Initial Closing

Construction Period

Rent-Up and Marketing

Pre-Cost Certification Conference

Cost Certification

Project Rental Assistance Contract

Occupancy Requirements

Final Closing


Developing a Strategy for Project

Applying for a Contract Rent

Reviewing Replacement Reserves

Refinancing a Section 202 Direct Loan

Preparing for REAC Inspections

Establishing a Project Library


HUD Bookletters

HUD Forms

HUD Handbooks

HUD Information & Web Sources

HUD Notices

HUD NY HUB Handouts

Practical Guide to 202/811 Terms

Home>Construction Period>HUD Processing>HUD Processing of the Owner's Requisition
HUD Processing of the Owner's Requisition

Traditional Funding (not mixed finance)

Upon receiving the Requisition for Disbursement of Funds, a Project Manager in HUD Mortgage Credit will review the form and attached documents. Any modifications of the general contractor's requisition made by the HUD Inspector in the field will be changed by HUD at this time. So, for example, if the HUD Inspector reduced a trade line item by $5,000, then the HUD Mortgage Credit Project Manager will recalculate the approved amount to be paid to the contractor based on the HUD Inspector's changes.

When processing is completed in the New York HUD office, the HUD Mortgage Credit Project Manager will notify the Owner of the approved amount and instruct the Owner to draw down the HUD approved Capital Advance funds via e-LOCCS. A completed and signed payment voucher will be returned to HUD Mortgage Credit which will complete processing locally and then forward the paperwork to Fort Worth, TX for final processing.

The HUD office in Texas will approve funds to be wired into the direct deposit construction account of the Owner. Once the funds are received in the Owner's account, the Owner will prepare and distribute checks to the vendors who have been approved for payment.

Mixed Finance

In a mixed finance project, a plan for the coordination and flow of funds among parties in the financing will be developed and approved by HUD and all parties to the financing transaction prior to the start of construction. Plans can vary for each project depending upon how the finances have been structured.