[Code of Federal Regulations]
[Title 24, Volume 4]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 24CFR983.103]

[Page 667-668]
 
                 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. 983.103  New construction or rehabilitation period.

    (a) Timely performance of work. After the Agreement has been 
executed, the owner must promptly proceed with the construction or 
rehabilitation work as provided in the Agreement. In the event the work 
is not so commenced, diligently continued, or completed, the HA may 
terminate the Agreement or take other appropriate action.
    (b) Inspections. The HA must inspect during construction or 
rehabilitation to ensure that work is proceeding on schedule and is 
being accomplished in accordance with the terms of the Agreement. The 
inspection must be carried out to ensure that the work meets the types 
of materials specified in the work write-ups or working drawings and 
specifications, and meets typical levels of workmanship in the area.
    (c) Changes. The owner must obtain prior HA approval for any changes 
from the work specified in the Agreement that would alter the design or 
the quality of the required new construction or rehabilitation. The HA 
may disapprove any changes requested by the owner. HA approval of 
changes may be conditioned on establishing lower initial contract rents 
in the amount determined by the HA (or the HUD field office for HA owned 
units or projects financed with a HUD insured or coinsured multifamily 
mortgage). If the owner makes any changes without prior HA approval, the 
HA may lower

[[Page 668]]

the initial contract rents in the amount determined by the HA (or the 
HUD field office for HA owned units or projects financed with a HUD 
insured or coinsured multifamily mortgage), and may require the owner to 
remedy any deficiencies, prior to, and as a condition for, acceptance of 
the units. Initial contract rents, however, must not be increased 
because of any change from the work specified in the Agreement as 
originally executed. When a HUD insured or a HUD coinsured multifamily 
mortgage is used to finance new construction or rehabilitation of the 
units to which assistance is to be attached under this part 983, the HUD 
field office may lower the initial contract rents to reflect any 
reduction in the amount necessary to amortize the insured or coinsured 
mortgage.
    (d) Notification of vacancies. At least 60 days before the scheduled 
completion of the new construction or rehabilitation, the owner must 
notify the HA of any units expected to be vacant on the anticipated 
effective date of the HAP contract. The HA must refer to the owner 
appropriate-sized families from the HA waiting list. When the HAP 
contract is executed, the owner must notify the HA which units are 
vacant. (See also Sec. 983.253).

(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; 63 
FR 23871, Apr. 30, 1998]