[Code of Federal Regulations]

[Title 24, Volume 4]

[Revised as of April 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 24CFR882.507]



[Page 82-83]

 

                 TITLE 24--HOUSING AND URBAN DEVELOPMENT

 

  CHAPTER VIII--OFFICE OF THE ASSISTANT SECRETARY FOR HOUSING-FEDERAL 

 

PART 882_SECTION 8 MODERATE REHABILITATION PROGRAMS--Table of Contents

 

    Subpart E_Special Procedures for Moderate Rehabilitation_Program 

                        Development and Operation

 

Sec.  882.507  Completion of rehabilitation.



    (a) Notification of completion. The Owner must notify the PHA when 

the work is completed and submit to the PHA the evidence of completion 

and certifications described in paragraphs (b) and (c) of this section.

    (b) Evidence of completion. Completion of the unit(s) must be 

evidenced by furnishing the PHA with the following:

    (1) A certificate of occupancy and/or other official approvals as 

required by the locality.

    (2) A certification by the Owner that:

    (i) The unit(s) has been completed in accordance with the 

requirements of the Agreement;

    (ii) The unit(s) is in good and tenantable condition;

    (iii) The unit(s) has been 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) The unit(s) are in compliance with part 35, subparts A, B, H, 

and R of this title.

    (iv) Any unit(s) built prior to 1973 are in compliance with Sec.  

882.404(c)(3) and Sec.  882.404(c)(4).

    (v) If applicable, the Owner has complied with the provisions of the 

Agreement relating to the payment of not less than prevailing wage rates 

and that to the best of the Owner's knowledge and belief there are no 

claims of underpayment concerning alleged violations of said provisions 

of the Agreement. In the event there are any such pending claims to the 

knowledge of the Owner, PHA or HUD, the Owner will be required to place 

sufficient amount in escrow, as determined by the PHA or HUD, to assure 

such payments.

    (c) Actual cost and rehabilitation loan certifications. The Owner 

must provide the PHA with a certification of the costs incurred for the 

rehabilitation and any temporary relocation as well as the interest rate 

and term of any rehabilitation loan. The Owner must certify that these 

are the actual costs, interest rate, and term.



The PHA must review for completeness and accuracy and accept these 

certifications subject to the right of post audit. The PHA must then 

establish the Contract Rents as provided in Sec.  882.408 which will be 

subject to reduction based on a post audit.

    (d) Review and inspections. The PHA must review the evidence of 

completion for compliance with paragraph (b) of this section. The PHA 

also must inspect the unit(s) to be assisted to determine that the 

unit(s) has been completed in accordance with the Agreement and meets 

the Housing Quality Standards or other standards approved by HUD for the 

Program. If the inspection discloses defects or deficiencies, the 

inspector must report these in detail.

    (e) Acceptance. (1) If the PHA determines from the review and 

inspection that the unit(s) has been completed in



[[Page 83]]



accordance with the Agreement, the unit(s) will be accepted.

    (2) If there are any items of delayed completion which are minor 

items or which are incomplete because of weather conditions, and in any 

case which do not preclude or affect occupancy, and all other 

requirements of the Agreement have been met, the unit(s) must be 

accepted. An escrow fund determined by the PHA to be sufficient to 

assure completion for items of delayed completion must be required, as 

well as a written agreement between the PHA and the Owner, to be 

included as an exhibit to the Contract, specifying the schedule for 

completion. If the items are not completed within the agreed time 

period, the PHA may terminate the Contract or exercise other rights 

under the Contract.

    (3) If other deficiencies exist, the PHA must determine whether and 

to what extent the deficiencies are correctable, and whether the 

Contract Rents should be reduced. The Owner must be notified of the 

PHA's decision. If the corrections required by the PHA are possible, the 

PHA and the Owner must enter into an agreement for the correction of the 

deficiencies within a specified time. If the deficiencies are corrected 

within the agreed period of time, the PHA must accept the unit(s).

    (4) Otherwise, the unit(s) may not be accepted, and the Owner must 

be notified with a statement of the reasons for nonacceptance.



[47 FR 34383, Aug. 9, 1982, as amended at 52 FR 1895, Jan. 15, 1987; 64 

FR 50227, Sept. 15, 1999]