The preliminary development cost budget, showing the proposed estimated project development cost, is prepared by the local agency and is included in and made a part of its application for financial assistance from the State. The preliminary budget controls the development cost expenditures from the date of the loan and subsidy contract to the date of the award of the major superstructure contracts, i.e. general construction, plumbing, heating and electrical. The preliminary budget may, under certain circumstances, be revised from time to time, in which case the latest approved budget will be controlling.

Upon the award of the major superstructure contracts (general construction, plumbing, heating, electrical) the local agency shall prepare a final development cost budget reflecting these contract awards and any others, and the latest revised estimate of development costs, and submit it to the division for approval not later than 15 days after the award and execution of these contracts. This final budget also may, under certain circumstances, be revised, in which case the latest approved budget will be controlling. The final development cost budget controls the development cost expenditures from the date of its approval to the date of approval of the bond sale budget.

Prior to the sale of bonds by the Comptroller, the division will request the local agency to prepare and submit to the division for approval its best estimate as to what will be the final development cost of the project to justify the amount of bonds to be included in the bond issue. This estimate should be prepared on form DH-512. Should further permanent financing be required for a project, the local agency will be requested to prepare and submit for the division's approval a supplementary bond sale budget, also on form DH-512. The bond sale budgets will control expenditures from the date of approval until final development cost is determined.