The early disbursement of HCD funds is intended to make the delivery of affordable multifamily rental housing more cost-effective by allowing a Sponsor, under certain circumstances, to receive an early disbursement of a qualifying loan for the purpose of prepaying all or a portion of outstanding loan principal balance of a construction loan. Additional detail and programmatic requirements are detailed in Administrative Notice 26-01 Omnibus Program Guideline Amendments.
Early Disbursement is available to Sponsors who have at least one of the following state multifamily rental loan programs:
- Affordable Housing and Sustainable Communities (AHSC)
- Joe Serna, Jr. Farmworker Housing Program (Serna)
- Multifamily Housing Program (MHP)
- No Place Like Home Program (NPLH)
- Transit-Oriented Development Program TOD)
- Veterans Housing and Homelessness Prevention Program (VHHP)
Sponsors may request early disbursement by submitting a complete Early Disbursement Request and Certification on or after the date of Temporary Certificate of Occupancy. If approved, funds will be available through an Early Disbursement Escrow process within 6 weeks of request.