12.6.3 Warranty Inspections

A. Inspections to ensure correction of latent defects (defective or nonconforming work not observed during construction) or to check any item of delayed completion will generally not be required or expected to be performed by the HUD Inspector. HUD has the option of requiring such inspections on particular transactions. For those transactions where such inspections are requested by HUD, they should be performed within 1 year of the date of final completion and the following requirements will apply:

1. The CA will schedule guarantee inspections as follows:

   • If required, the first inspection must be within 9 months of final completion and should provide for inspection of the entire project.

• Other inspections may be necessary to assure inspection of seasonal items such as heating and landscaping.

• The last inspection must be not later than the 10th day of the 12th month after the final endorsement date to check previously reported defects and their correction, and to identify any additional defects.

  • The ninth- and twelfth-month warranty inspections are to be attended by the Architect, Owner and General Contractor. Copies of the Architect’s Field Reports for these inspections are to be forwarded to both HUD and the Lender.

2. The Architect must report each guarantee inspection on form HUD-95379, including:

   • If work is acceptable, state, "All observable work acceptable at the time of this inspection."

• If unacceptable, list latent defects.

  • 1. Describe each item.
  • 2. Recommend method of correction.
  • 3. Estimate current cost of correction.

• Check any item of delayed completion and list complete and uncompleted items under a separate heading.

Note any improper maintenance or casualty damage under a separate heading.