# Distribution of Tax Credit Proceeds
> **US Department of Housing and Urban Development** · Interim rule. · Published 2003-07-30 · Effective 2003-08-29 · 68 FR 44844
## Document
- **Document number:** 03-19286
- **Category:** hud-other
- **Agency:** US Department of Housing and Urban Development
- **Federal Register citation:** 68 FR 44844
- **CFR reference:** 24 CFR 200
- **Publication date:** 2003-07-30
- **Effective date:** 2003-08-29
- **Docket:** Docket No. FR-4792-I-01
## Abstract

This interim rule amends the Department's regulations with respect to funding for project completion. The current regulations require that funds provided by the mortgagor must be disbursed in full for project work, material, and incidental charges and expenses before any disbursement of the mortgage proceeds. An exception is made for federal, state, or local government or instrumentality grants or loans. These grants or loans need not be fully disbursed before the disbursement of mortgage proceeds, upon approval of the Assistant Secretary for Housing-Federal Housing Commissioner. This interim rule adds to the exception. This rule provides that the mortgagor's equity from the sale of low-income housing tax credits or historic tax credits, or both, need not be fully disbursed before the distribution of mortgage proceeds.

## Source
- [Federal Register document](https://www.federalregister.gov/documents/2003/07/30/03-19286/distribution-of-tax-credit-proceeds)
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