(a) Notwithstanding any other provision of law, the department may make advance payments to eligible borrowers and grantees under any loan or grant programs for housing established pursuant to this part, if the department makes all of the following determinations:
(1) The advance payments are necessary to meet the purposes of the housing program.
(2) The advance payments are necessary for the feasibility of the assisted housing.
(3) The use of the advanced funds is adequately regulated by contract or budgetary controls so that the opportunity to accrue interest on the funds is not unnecessarily reduced.
(b) The department may enter into regulatory agreements to ensure that there is adequate financial security for the funds from which those advance payments are made.