Arizona construction draw checklist: notices, date-downs, and lien waivers

Construction lenders in Arizona do not fund the next inspection on a verbal update. They want a title date-down and lien waivers that match the draw. The statute that sits underneath the waiver conversation is A.R.S. 33-992.01, the preliminary twenty-day notice, as posted by the Arizona Legislature. The statute is the starting point for who must give notice and when. It is not a legal opinion from Capital Market Funds, and it is not a promise that a particular contractor's notice was timely. Construction counsel reads the job. This note only lists what a financing file usually contains so a sponsor is not surprised at the first draw.

We arrange construction financing. We are not the construction lender, and we do not wire the draw. When a bank holds the facility, the bank and its title company set the date-down checklist. When the structure is HUD 221(d)(4), the HUD-approved lender sets it. A debt fund will have its own inspector. The statewide comparison of those holders is Arizona construction financing.

Items that show up before draw one

A plans-and-budget package the inspector can measure against. A sworn owner statement or the lender's equivalent. Evidence of builder's risk and liability coverage naming the lender. The general contract and the major subcontracts, or at least a schedule of values that ties to them. If the site is inside an active management area, the water path the vertical construction depends on, which is a separate discussion from lien notices and lives on the construction financing page rather than in this statute.

Entity documents for the borrowing party, and a statement of who is authorized to sign waivers. A draw request signed by someone the operating agreement does not name will sit in a queue. Send the authority with the first package, not after the inspector has already walked the site.

What each subsequent draw tends to add

Lien waivers from the general contractor and from subcontractors who were paid on the prior draw, conditional or unconditional as the title company specifies. A title date-down bringing the policy to the new advance. An inspection report that supports the percent complete the request claims. Change orders, if the budget moved, initialed before anyone treats the new number as the contract sum. Stored materials, if you want them funded, with bills of sale and evidence they are insured and not free to be hauled off.

The preliminary notice is the statute's subject, not a form this office supplies. Contractors, suppliers, and the owner have their own duties under that section. If a notice was late or went to the wrong party, the lien right may be affected, and that is counsel's conclusion. We will not tell a sponsor the lien is clean because a waiver PDF arrived in email. The title company and counsel say whether the date-down is clear enough for the lender to fund.

What this checklist will not do

It will not quote a construction rate, a holdback percentage, or a loan-to-cost. Those are the lender's term sheet. It will not rank title companies. It will not treat a public construction story, including any Tucson or Phoenix project reported by another firm, as a Capital Market Funds closing. It will not replace the insights index or the financing page linked above. If the request is a permanent loan on a finished building, this checklist is the wrong document.

Craig Hoebing arranges the facility from Scottsdale under Arizona commercial mortgage banker license CMB-1047342, NMLS 1445066. Sending a draw package to this office does not fund it. Ask counsel before you rely on a notice deadline.