Advance Payment Guidance

Information by State  Print version   Want More Information? Questions about this guidance on the HOPWA program should be directed to: The Office of HIV/AIDS Housing, HUD 451 Seventh Street SW, Room 7154 Washington, DC 20410 (202) 708-1934 (202) 708-1744 fax

Utilization of Cash Advances for HOPWA Grantees and Project Sponsors

In recent months, grantees and nonprofit project sponsors have requested the development of a cash advance system for reimbursement to enable the provision of housing and services in a quick and efficient manner. Nonprofit project sponsors suffering from reduced resources often borrow or use limited internal resources to front HOPWA activities until reimbursement can be obtained from grantee organizations. To compound the problem, nonprofit sponsors report serious delays in receiving reimbursement causing nonprofit organizations to incur unnecessary interest costs and additional fees.

In response to these issues, the Iowa Finance Authority, a HOPWA grantee, recently requested permission from HUD to institute a cash advance system for its nonprofit project sponsors. The issue was reviewed by this office in conjunction with CPD's Comptroller. For your convenience, the original request has been attached, as well as HUD's response. This information is being submitted to you to provide assistance in administering the HOPWA program in your local area. In the event the grantees seek or request information on a cash advance system of payment, these documents provide an example of the requirements for such a system of payment.

Please provide this information to your staff and grantee staff in your area that work with the HOPWA program.

If you require additional information regarding cash advances and the HOPWA program, please feel free to call the Program Office at 202-708-1934.

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