12.6.2 Final 100% Draw Completion Inspection

A. The Architect and HUD inspector will make the final inspection upon written request of the contractor for 100% draw request requiring no modifications.

1. The Architect must determine that all punch-list items have been completed unless they are beyond the control of the contractor (i.e.: items of delayed completion).

2. The inspector must prepare the final inspection report on form HUD-95379 which includes:

   • Reports onsite construction completion, although there may be items of delayed completion.

• Lists and describes any items of delayed completion.

Lists any offsite work and reports the percentage of completion for each.

3. The HUD Construction Manager will check the final inspection report to determine:

   • If unacceptable and, requires re-inspection (i.e.: the report is not considered final).

• If acceptable, the report will be endorsed as follows:

  • 1. "Construction acceptably completed." (If there are items of delayed completion, add, "subject to escrow of funds to assure completion of listed items of delayed completion.")
  • 2. "All offsite sewer, water, electrical and gas facilities are completed, connected and operable, and safe, adequate, all-weather ingress and egress provided." (If offsite item incomplete, add, "except as stated at the time of inspection.")
  • 3. Date and sign the report.

• CA will prepare a memorandum for signature by the Regional Center Director transmitting the final inspection report, which:

• 1. States the date of final completion (i.e.: the date of final inspection);
• 2. Lists incomplete offsite work; and
• 3. Lists items of delayed completion and the estimated of cost of completion for each item.

B. The escrow for items of delayed completion must not be less than 150% of the estimate to complete and must not exceed 2% of the mortgage. Work must be completed within the time specified in form

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Chapter 12 Construction Period 12.7 Application for Insurance of Advances

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HUD-92456M, Escrow Agreement for Incomplete Construction, but not more than 12 months from the date of the final HUD inspector’s trip report.