24 C.F.R. § 891.830
§ 891.830 Drawdown. (24 CFR Part 891)
Operative Text
(a) Upon its approval of the executed mixed-finance closing documents and other documents submitted and upon determining that such documents are satisfactory, and after the capital advance closing, HUD may approve the drawdown of capital advance funds in accordance with the HUD-approved drawdown schedule. (b) Non-capital advance funds may be disbursed before capital advance proceeds or the capital advance funds may be drawn down in an approved ratio to other funds, in accordance with a drawdown schedule approved by HUD. (c) Each drawdown of funds constitutes a certification by the mixed-finance owner that: (1) All the representations and warranties submitted in accordance with this subpart continue to be valid, true, and in full force and effect; (2) All parties are in compliance with their obligations pursuant to this subpart, which, by their terms, are applicable at the time of the drawdown of funds; (3) All conditions precedent to the drawdown of the funds by the mixed-finance owner have been satisfied; (4) The capital advance funds drawn down will be used only for eligible costs actually incurred in accordance with the provisions of this subpart and the approved mixed-finance project, which include costs stated in 12 U.S.C. 1701q(h) and 42 U.S.C. 8013(h). Capital advance funds may be used for paying off bridge or construction financing, or repaying or collateralizing bonds, but only for the portion of such financing or bonds that was used for capital advance units; and (5) The amount of the drawdown is consistent with the ratio of 202 or 811 supportive housing units to other units.
Section 891.830 governs how and when capital advance funds under HUD's Section 202 and Section 811 supportive housing programs may be released to a mixed-finance project owner. HUD must first approve the closing documents before any capital advance funds can flow, and disbursements must follow a HUD-approved drawdown schedule that may allow non-capital advance funds to go out first or funds to be drawn in an approved ratio. Each time funds are drawn down, the mixed-finance owner is automatically making a formal certification to HUD that all prior representations remain accurate, all parties are meeting their obligations, and the funds will be used only for eligible costs tied to the approved project and the correct proportion of supportive housing units.
Plain English — not legal advice.
Operators of mixed-finance projects subject to 24 CFR Part 891 § 891.830 generally ensure that all closing documents are fully executed and approved by HUD before initiating any capital advance drawdown request. Compliant owners maintain documentation demonstrating that each drawdown aligns with the HUD-approved schedule, that funds are directed exclusively to eligible costs for capital advance units, and that the ratio of Section 202 or Section 811 supportive housing units to other units is accurately reflected in each request. Because every drawdown functions as an affirmative certification under § 891.830(c), operators typically have internal controls in place to verify that all representations, warranties, and conditions precedent remain satisfied at the time of each disbursement.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Residents living in Section 202 or Section 811 supportive housing developed under a mixed-finance structure may find it useful to understand that § 891.830 requires the project owner to certify, with every drawdown of capital advance funds, that the project is being built and financed in compliance with HUD's requirements and that funds are used only for eligible costs tied to their units. If a tenant has concerns that capital advance funds may have been misused or that the project is not being developed as approved, they can raise those concerns with the local HUD field office or a tenant-rights organization familiar with Section 202 and Section 811 programs. Understanding the certification obligations under § 891.830 can also be relevant context when reviewing project compliance records or participating in HUD-monitored oversight processes.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated September 4, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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