Fla. Admin. Code Ann. R. 67-48.022 - HOME Disbursements Procedures and Loan Servicing
(1) HOME loan proceeds shall be disbursed
during the construction/rehabilitation phase in an amount per Draw on a
pro-rata basis with the other financing unless otherwise approved by the
Corporation or the Credit Underwriter.
(2) Ten (10) business days prior to each
Draw, the Applicant shall supply the Corporation's servicer, as agent for the
Corporation, with a written request executed by the Applicant for a Draw in a
form and substance acceptable to the Corporation's servicer.
(3) The request shall set forth the amount to
be paid and shall be accompanied by documentation as specified by the
Corporation's servicer. Such documentation shall include invoices for labor and
materials to date of the last inspection.
(4) The Corporation's servicer and the
Corporation shall review the request for Draw and the Corporation's servicer
shall provide the Corporation with approval of the request or an alternative
recommendation of an amount to be paid after the title insurer provides an
endorsement to the policy of title insurance updating the policy to the date of
the current Draw and increasing the insurance coverage to an amount equal to
the sum of all prior Draws and the current Draw, without additional exceptions,
except those specifically approved in writing by the Corporation. For all
Developments consisting of 12 or more units to be developed under a single
contract, the borrower shall submit weekly payrolls of the General Contractor
and subcontractors in accordance with Federal Labor Standards as enumerated in
24 CFR §92.354.
(5) Retainage
in the amount of 10 percent per Draw shall be held by the servicer during
construction until the Development is 50 percent complete. At 50 percent
completion, no additional retainage shall be held from the remaining draws.
Release of funds held as retainage shall occur in accordance with the HOME loan
documents.
(6) The Corporation or
its servicer shall elect to withhold any Draw or portion of any Draw, in
addition to the retainage, notwithstanding any documentation submitted by the
borrower in connection with a request for a Draw, if:
(a) The Corporation or the servicer
determines at any time that the actual cost budget or progress of construction
differs from that shown on the loan documents.
(b) The percentage of progress of
construction of improvements differs from that shown on the request for a
Draw.
(c) Developments subject to
and not in compliance with Federal Labor Standards.
(7) To the extent excess HOME funds in the
budget remain unused, the Corporation has the right to reduce the HOME loan by
that amount.
(8) If 100 percent of
the loan proceeds have not been expended within six (6) months prior to the HUD
deadline pursuant to 24 CFR §92.500, the funds shall be recaptured by the
Corporation.
(9) The request for
final disbursement of HOME funds, excluding retainage, shall be submitted
within 60 days of completion of construction as evidenced by certificates of
occupancy.
Notes
Rulemaking Authority 420.507, 420.508 FS. Law Implemented 420.5089(1) FS.
New 7-22-96, Amended 12-23-96, 7-10-97, 1-6-98, Formerly 9I-48.022, Amended 11-9-98, 2-24-00, 2-22-01, 3-17-02, 4-6-03, Repromulgated 3-21-04, 2-7-05, 1-29-06, Amended 4-1-07, Repromulgated 3-30-08, 8-6-09, 11-22-11, Amended 10-9-13, Repromulgated 10-8-14, 9-15-16, 5-24-17, 7-8-18, 7-11-19, 6-23-20, 5-18-21, 7-6-22, 6-28-23.
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