---
kind: "section"
citation: "12 C.F.R. § 1807.501"
title: "12"
number: "1807.501"
heading: "Commitments."
url: "https://uscodex.org/cfr/12/1807.501"
---

# §1807.501. Commitments.

- (a) The CMF Award must be Committed for Use by the Recipient to one or more Eligible Uses as provided in [§ 1807.301](/cfr/12/1807.301.md) within two years from the Effective Date of the CMF Award, as such date designated in the Recipient's Assistance Agreement.
- (b) The Recipient must achieve Project Commitment of the entire CMF Award within three years from the Effective Date of the CMF Award as designated in the Recipient's Assistance Agreement.
- (c) The Recipient must evidence a Project Commitment with a written, legally binding agreement to invest in a Project by providing the CMF Award proceeds to the qualifying Family, developer or project sponsor in which:
  - (1) Construction on real estate can reasonably be expected to start within 12 months of the Project Commitment agreement date; or
  - (2) Property title on real estate will be transferred within six months of the Project Commitment agreement date; or
  - (3) Construction schedule on real estate ensures Project Completion within five years of a date specified in the Assistance Agreement; or
  - (4) The Recipient has entered into a Secondary Market Mortgage Purchase agreement with a third-party lender to purchase the qualified mortgages and the subject mortgages would not otherwise have been originated by the third-party lender absent that agreement; or
  - (5) A commitment for a qualified Homeownership Program has been made by the action of the Recipient's Board of Directors; or
  - (6) The Recipient has entered into a Loan Guarantee agreement or has established a cash reserve, escrow, or accounting-based accrual reserve with a lender or investor for a Loan Loss Reserve.

## Notes

### Authority

Authority: 12 U.S.C. 4569.

### Source

Source: 89 FR 53015, June 25, 2024, unless otherwise noted.