§ 1807.501 - Commitments.

§ 1807.501 Commitments; Payments.

(a) The CMF Award must be Committed for Use by the Recipient for use by the to one or more Eligible Uses as provided in § 1807.301 within two years from the Effective Date of the CMF Award, as such date designated in its the Recipient's Assistance Agreement.

(b) The Recipient must evidence such commitment achieve Project Commitment of the entire CMF Award within three years from the Effective Date of the CMF Award as designated in the Recipient's Assistance Agreement.

(c) The Recipient must evidence a Project Commitment with a written, legally binding agreement to

provide

invest in a Project by providing the CMF Award proceeds to the qualifying Family, developer or project sponsor

for a Project whose

in which:

(1) Construction on real estate can reasonably be expected to start within 12 months of the

commitment

Project Commitment agreement date; or

(2) Property title on real estate will be transferred within

6

six months of the

commitment

Project Commitment agreement date; or

(3) Construction schedule on real estate ensures Project Completion within

5

five years of a date specified in the Assistance Agreement

.

; or

(

c

4) The

CDFI Fund will make Payment of CMF Award based on a deployment schedule contained in the CMF Award application, in addition to any other documentation and/or forms that the CDFI Fund may require.

(d) Upon receipt of CMF Award, the Recipient must make an initial disbursement of said CMF Award by the date designated in its Assistance Agreement. The CDFI Fund may make Payment of CMF Award in a lump sum or other manner, as determined appropriate by the CDFI Fund. The CDFI Fund will not provide any Payment until the Recipient has satisfied all conditions set forth in the applicable NOFA and Assistance Agreement.

Recipient has entered into a Secondary Market Mortgage Purchase agreement with a third-party lender to purchase the qualified mortgages and the subject mortgages would not otherwise have been originated by the third-party lender absent that agreement; or

(5) A commitment for a qualified Homeownership Program has been made by the action of the Recipient's Board of Directors; or

(6) The Recipient has entered into a Loan Guarantee agreement or has established a cash reserve, escrow, or accounting-based accrual reserve with a lender or investor for a Loan Loss Reserve.