Construction Loan Requisitions

For projects with VHFA construction loans, please follow the process below for construction disbursement requests. Please use the Requisition Form (Multifamily VHCB and VHFA) for all construction disbursement requests from either VHCB or VHFA.

Construction Closing Disbursement
A final closing requisition package must be submitted to the VHFA no fewer than three business days prior to the scheduled closing date and time. The package must include:

  1. An itemized list of predevelopment invoices with copies of each invoice
  2. Closing Statement (VHFA fees should be netted from VHFA advances)
    1. Closing expenses 
    2. Closing sources
  3. Wiring Instructions for law firm trust account for the Borrower’s attorney (VHFA will wire closing requisitions only)

No changes to the closing requisition will be accepted two business days prior to the closing date and time. If a closing requisition is not submitted within three business days of the closing, the closing may be postponed.

Monthly Construction Inspection and Requisition Review
VHFA will contract with a construction inspector to review construction related documents including plans, specifications, change orders, and requisitions.

Before Construction Closing
Project Sponsors must submit the final plans and specifications to VHFA at least six weeks prior to closing. VHFA’s construction inspector will use those plans to complete a plan and cost review. The final construction contract, scope of work, and construction budget must be provided to the VHFA construction inspector as soon as they are available. All documents must be sent to the VHFA underwriter working on the project, who will coordinate information sharing between the Sponsor and the inspector.

After Construction Closing
After the construction loan closing, project Sponsors (or their representative) will need to coordinate with the VHFA construction inspector prior to monthly disbursement requests for a requisition review and site inspection. A typical timeline would be:

  • A draft AIA G702 Application for Payment can be submitted by the owner to the VHFA construction inspector prior to review and approval by the Sponsor, architect, and general contractor. The VHFA construction inspector may begin the review process upon receipt at their discretion.
  • Starting business day, Sponsor, architect, and general contractor review and approve monthly pay application.
  • The same business day, the approved AIA G702 Application for Payment is submitted to the VHFA construction inspector for review. This includes any change orders, lien waivers, and other supporting documents as needed.
  • Within 2 business days, the VHFA construction inspector will schedule a site visit.
  • Within 6 business days, the VHFA construction inspector will conduct a site inspection documenting work completed and materials stored.
  • Within 8 business days, the VHFA construction inspector will provide the VHFA underwriter with a written report and a recommendation for approval or additional review.

Construction Disbursements/Requisitions
No later than 5 business days after the starting business day, the AIA G702 Application for Payment from the General Contractor is approved, the Sponsor must submit the following to VHFA:

  • A correct and complete Requisition Form (Multifamily VHCB and VHFA);
  • Correct and complete invoices for each item included on the current Requisition Form;
  • An approved AIA G702 Application for Payment from the General Contractor, which has been approved by the contractor, Sponsor, and architect;
  • Current change orders associated with the approved AIA G702 Application for Payment; and
  • All lien waivers related to the AIA G702 Application for Payment.

All documents must be notarized and/or witnessed as required by the form document. Within 10 business days from the starting business day, VHFA will process and pay the project disbursement request.