[Code of Federal Regulations]
[Title 24, Volume 4]
[Revised as of April 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 24CFR983.104]

[Page 651-652]
 
                 TITLE 24--HOUSING AND URBAN DEVELOPMENT
 
CHAPTER IX--OFFICE OF ASSISTANT SECRETARY FOR PUBLIC AND INDIAN HOUSING, 
               DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
 
PART 983--SECTION 8 PROJECT-BASED CERTIFICATE PROGRAM--Table of Contents
 
   Subpart C--Agreement and New Construction or Rehabilitation Period
 
Sec. 983.104  New construction or rehabilitation completion.

    (a) Notification of completion. The owner must notify the HA when 
the work is completed and submit to the HA the evidence of completion 
described in paragraph (b) of this section.
    (b) Evidence of completion. To demonstrate completion of the work 
the owner must furnish the HA with:
    (1) A certificate of occupancy or other official approvals as 
required by the locality.
    (2) A certification by the owner that:
    (i) The work has been completed in accordance with the requirements 
of the Agreement;
    (ii) There are no defects or deficiencies in the work except for 
items of delayed completion which are minor or which are incomplete 
because of weather conditions and, in any case, do not preclude or 
affect occupancy;
    (iii) The unit(s) has been constructed or rehabilitated in 
accordance with the applicable zoning, building, housing and other 
codes, ordinances or regulations, as modified by any waivers obtained 
from the appropriate officials;
    (iv) Units are in compliance with the lead-based paint requirements 
in part 35, subparts A, B, H, and R of this title; and
    (v) The owner has complied with any applicable labor standards 
requirements in the Agreement.
    (3) For projects where a HUD field office construction inspection is 
not required during construction, a certification from the inspecting 
architect

[[Page 652]]

stating that the units have been constructed in accordance with the 
certified working drawings and specifications, housing quality 
standards, local codes and ordinances, and zoning requirements.
    (c) Review and inspections. The HA must review the evidence of 
completion for compliance with paragraph (b) of this section. The HA 
also must inspect the unit(s) to be assisted to determine that the 
unit(s) has been completed in accordance with the Agreement, including 
meeting the housing quality standards or other standards approved by the 
HUD field office for the program. If the inspection discloses defects or 
deficiencies, the inspector must report these in detail.
    (d) Acceptance. (1) If the HA determines from the review and 
inspection that the unit(s) has been completed in accordance with the 
Agreement, the HA must accept the unit(s).
    (2) If there are any items of delayed completion that are minor 
items or that are incomplete because of weather conditions, and in any 
case that do not preclude or affect occupancy, and all other 
requirements of the Agreement have been met, the HA may accept the 
unit(s). The HA must require the owner to deposit in escrow with the HA 
funds in an amount the HA determines to be sufficient to ensure 
completion of the delayed items. The HA and owner must also execute a 
written agreement, specifying the schedule for completion of these 
items. If the items are not completed within the agreed time period, the 
HA may terminate the HAP contract or exercise other rights under the HAP 
contract.
    (3) If other deficiencies exist, the HA must determine whether and 
to what extent the deficiencies are correctable and whether a time 
extension is warranted, and HUD must determine whether the contract 
rents should be reduced.
    (4) Otherwise, the unit(s) may not be accepted, and the owner must 
be notified with a statement of the reasons for nonacceptance.

(Approved by the Office of Management and Budget under control number 
2577-0169)

[60 FR 34717, July 3, 1995, as amended at 60 FR 45661, Sept. 1, 1995; 64 
FR 50230, Sept. 15, 1999]