Sec. 1904.2. Disbursements

(a) The corporation shall make payments for eligible construction, rehabilitation or conversion costs on a project basis, conditioned upon the submission of satisfactory information by the project recipient or local program administrator and compliance with procedures specified by the corporation. Where an eligible applicant has transferred ownership of a project and assigned the regulatory agreement with approval of the corporation, disbursements may be made directly to the assignee.

(b) The amount of any Housing Trust Fund payment, loan or grant for any project shall not exceed an average of $55,000 per unit. The corporation may, in its discretion, provide a payment, loan or grant in excess of $55,000 but not in excess of $75,000. Among the criteria the corporation shall consider in exercising its discretion are:

(1) the average cost of construction in the area;

(2) the location of the project; and

(3) the impact of the additional funding on the affordability of the project for the intended occupants of such project.

Any construction, rehabilitation or conversion costs that exceed this ceiling must be paid for by sources other than the Housing Trust Fund.

(c) The corporation may make payments, grants or loans which exceed the limit imposed in subdivision (b) of this section only in areas of the State where the president of the corporation determines that the cost of construction, rehabilitation or conversion substantially exceed said limit. That part of any payment, grant or loan which exceeds said limit must be made from the High Cost Areas Demonstration Account as established by the Capital Projects Budget or any subsequent amendments or renewals thereof.

(d) The corporation may deposit, pursuant to an escrow agreement satisfactory to the corporation, a payment, grant or loan directly with a lending institution at, prior to or after the initial closing of a project.