Forward Commitment for Federal Housing Administration (FHA) Financed Projects
To better coordinate the closing deadlines of FHA financed projects, the California Debt Limit Allocation Committee (CDLAC) and the U.S. Department of Housing and Urban Development (HUD) have developed a CDLAC Forward Commitment letter that will be granted in lieu of a CDLAC award of allocation until the Applicant receives the HUD firm commitment for the project.
To take advantage of the CDLAC Forward Commitment, the CDLAC Applicant must disclose upon application that the Project is a FHA financed deal. CDLAC will review the application for all application requirements and upon satisfactory review, approve a Forward Commitment letter for the Project. Later, after the HUD firm commitment has been granted to the Project, CDLAC will take the Applicant’s bond allocation request to the Committee for formal approval and the CDLAC closing timeframe will commence.
To the extent a CDLAC Applicant wishes to accept a Forward Commitment in lieu of a CDLAC award of allocation, the following requirements must be met:
- The Applicant must submit a complete CDLAC Qualified Residential Rental Projects (QRRP) application;
- A Commitment Letter outlining a FHA financing must accompany the Application (ATTACHMENT D);
- The Applicant must provide CDLAC with a HUD firm commitment prior to receiving a CDLAC award of allocation;
- All awards of allocation following a CDLAC Forward Commitment must occur prior to year end.
For more information regarding the CDLAC Forward Commitment, please contact CDLAC Executive Director, Jeree Glasser-Hedrick or CDLAC Program Manager, Misti Armstrong @ 916-653-3255.