12.17.1.1 Completion of Repairs and Alterations

A. All critical repairs completed before initial closing. A site visit(s) and report(s) by a HUD representative are required to confirm satisfactory completion of critical repairs before closing. The only exception is critical accessibility repairs that HUD approved for deferred completion based on the complexity of the repair (see Chapter 5, Section 5.10.8.E). No other critical repairs may be deferred.

B. Non-critical repairs may be considered for deferred completion after closing at the request of the mortgagor. HUD will require the following schedules prior to approving the request:

1. Schedule of Values (see Section 12.17.3 below) for payment of completed repairs;

2. A progress schedule ensuring that repairs begin immediately upon closing and, with limited possible exceptions, are completed within 12 months of loan closing;

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Chapter 12 Construction Period 12.17 Completion of Repairs and Alterations Pursuant to Section 223(a)(7) and 223(f)

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3. Schedule of Delayed or Interrupted Occupancy or Income, which must list:

   • All facilities or units for which occupancy or income will be delayed or interrupted by repairs deferred until after closing;

• Estimated period of delayed or interrupted occupancy or income;

• Projected completion date; and

  • An additional deposit must be made to an operating deficit account for delayed repairs that interrupt occupancy or income for any period. The amount of the additional deposit will be determined by HUD.

4. Temporary Resident Relocation Schedule, when required.