8.12.3.3 Grant and Loan Proceeds Must be Advanced

HUD Multifamily Accelerated Processing (MAP) Guide, HUD Handbook 4430.G (2020 ed., rev. Mar. 19, 2021) · 2026 edition · updated 2026-10-05 · United States

A. Before the insured mortgage proceeds, or
B. Concurrently and on a pro rata basis with the disbursement of the insured mortgage proceeds.

If the grant/loan proceeds are not available at initial endorsement, HUD may either:
- Proceed to initial endorsement, but not disburse any insured mortgage proceeds until the grant/loan is in place and the funds are available for disbursement, or
- Recommend the Borrower/Sponsor fund an escrow equal to the grant/loan. Advances from this escrow must follow outstanding instructions for the disbursement of the grant/loan.

C. Release of grant/loan proceeds cannot be conditioned on the completion of specific project improvements.

D. See Appendix 12, Section A.12.1 for front money requirements and disbursement of mortgage proceeds on LIHTC projects.

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▸Contents — HUD Multifamily Accelerated Processing (MAP) Guide, HUD Handbook 4430.G (2020 ed., rev. Mar. 19, 2021)

HUD Multifamily Accelerated Processing (MAP) Guide, HUD Handbook 4430.G (2020 ed., rev. Mar. 19, 2021)

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