How do we receive payment from HUD for program expenses?

Recipients drawdown funds through the electronic Line of Credit Control System (eLOCCS), the primary grant and subsidy disbursement system that handles disbursement and cash management for the majority of HUD grant programs. Drawdowns should be completed no earlier than when needed to pay for eligible costs with the period between expenditure and reimbursement minimized as much as possible. Funds should be drawn down at least once per quarter.

Looking for definitions of the common CoC and ESG Program terms referenced throughout the Virtual Binders?

Virtual Binders Glossary

There is a multi-step process for gaining access to eLOCCS. Below are a few resources and guidebooks to assist HUD recipients in the process:

Can we receive an advancement of funds from HUD to pay our bills?

For service providers that have limited capital, under some circumstances, cash advances are permitted in lieu of reimbursements under the ESG and CoC programs. For recipients and subrecipients that are able to meet the requirements in 2 CFR 200.305, it is not necessary for all costs to be incurred prior to receiving advanced funds.


Cash advances to a subrecipient must be limited to the minimum amounts needed and in accordance with the actual, immediate cash requirements of the organization in carrying out the approved activities of the project. Cash advances cannot be a portion of the contracted award amount each month.

If the recipient or subrecipient does not meet the requirements of 2 CFR 200.305, then cost reimbursement is the preferred method of payment for subrecipients.

The Office of Inspector General provides some ground rules and examples of how to set up and maintain these internal controls in the article: Implementing the Five Key Internal Controls.