12.3.5 Construction Progress Meetings (monthly meetings)

A. During construction the contractor, mortgagor, mortgagor’s supervisory Architect and HUD Inspector must attend monthly job meetings at the job site when monthly requests for advances are prepared. The Project Architect is responsible for conducting and keeping official written records of the meetings.

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Chapter 12 Construction Period 12.3 HUD Construction Inspection and Monitoring

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B. The owner's representative must be a member of the Borrower entity, usually a general partner or managing member with authority to make decisions. Non-profit organizations may be represented by an executive officer or member of the Board of Directors.

C. The MAP Lender's representative must attend whenever the project is out of compliance, such as when construction has fallen more than 10% behind schedule according to the Construction Progress Schedule (form HUD-5372), or other problems arise that jeopardize the completion of the project (see Section 12.3.6.C for examples of construction-related problems).

• D. During the meeting, the HUD Inspector must:

1. Comment to the group on the quality of construction and of the Architect's observations and the contractor's supervision.

2. Comment on all known construction defects and deficiencies (non-compliance) and methods of correction.

3. Explain that changes in the work from the contract documents (non-compliance) must be resolved by approved change order requests or the work done in accordance with the contract documents. All change orders must receive prior approval before work subject to the change order is commenced.

4. Inform parties of HUD policy for holdback of construction advances until non-compliance is corrected.

5. Record on form HUD-95379 the issues raised at the meeting. Significant concerns of any party should be presented by memorandum through the CA to the Regional Center Director.

6. Resolve equal opportunity and labor disputes. When such disputes are known, the HUD Labor Standards and Enforcement and Equal Employment officers must be invited to attend.

7. Address any tenant relocation concerns, including any URA compliance-related issues.