Fla. Admin. Code Ann. R. 67-50.090 - Disbursement of Funds, Draw Requests, and Loan Servicing

(1) Disbursement of Funds. Construction Loan proceeds shall be disbursed in an amount that does not exceed the ratio of the loan to the Total Development Cost and is pro-rata with all other construction financing, unless otherwise approved by the Corporation and the Credit Underwriter.

(2) Draw Requests. Ten (10) days prior to each Draw, the Applicant shall provide the Servicer with a signed, written Draw request, which includes the requested amount, documentation of liability and builder's risk insurance acceptable to the Corporation, and claims for labor and materials to date of the last inspection.

(3) Loan Servicing. The Servicer shall review the Draw request and provide the Corporation with approval of the request or an alternative amount.

(4) Five percent (5%) of the Construction Loan funds will be held as retainage. Release of funds held as retainage for each house shall occur only after the Applicant provides:

(a) A satisfactory final inspection certificate or certificate of occupancy;

(b) A final, as-built survey;

(c) Evidence of liability and replacement cost hazard insurance acceptable to the Corporation; and,

(d) A title insurance policy insuring the Corporation's interest and containing no exceptions that are unacceptable to the Corporation.

(5) In addition to the five percent (5%) retainage, the Corporation shall elect to withhold any Draw or portion of any Draw if:

(a) The actual budget cost or progress of construction is materially greater than that shown in the sources and uses statement;

(b) The percentage of progress of construction differs materially from that shown on the Draw Request, or

(c) The Draw Request cannot be supported by invoices for labor and materials.

Notes

Fla. Admin. Code Ann. R. 67-50.090

Rulemaking Authority 420.507(12), (23) FS. Law Implemented 420.507(18), 420.5088, 420.5089 FS.

New 9-5-02, Amended 12-28-04.

New 9-5-02, Amended 12-28-04.