3560.304—Initial operating capital.
(a) Purpose.
To provide a source of capital for start-up costs, such as the purchase of equipment, and paying operating, maintenance, and debt service expenses. Borrowers are required to make an initial operating capital contribution to the general operating account as described in § 3560.64.
(b) Authorized uses of initial operating capital.
Initial operating capital may be used only to pay for approved budgeted expenses.
(c) Withdrawal of initial operating capital.
Initial operating capital funds may be withdrawn by a borrower if:
(2)
The borrower requests the withdrawal after the second year of housing project operations and prior to the 7th year of operations;
(3)
The housing project has had a 90 percent occupancy rate for a period of 12 months prior to the withdrawal request;
(7)
There are no outstanding deficiencies in management's physical maintenance of the housing project.