19.5.10.4 Approval of a Final Advance

A. If minor items of on-site construction are incomplete, approval of a final advance will be given only under the following circumstances:

1. All on-site items in the entire Project are completed, based on the final HUD Representative’s Trip Report (form HUD-95379), except those which qualify as items of delayed completion because:

   • They are minor; and

   • The RC Director determines that immediate completion is inadvisable or impossible, due to weather or other conditions beyond control of the contractor.

2. Funds are placed in escrow to assure completion of such minor items as provided in the certificate of mortgage Loan insurance on Application for Insurance of Advance of Mortgage Proceeds and in the footnote on form Request for Final Endorsement of Credit Instrument (form HUD-92023M); and

3. All off-site utilities such as sewer, water, electrical, and gas facilities are installed and connected, the buildings are served by safe and adequate all-weather facilities (either permanent or temporary) for the ingress and egress of pedestrians and vehicular traffic, including fire apparatus, and all other construction requirements have been acceptably accomplished or acceptably assured; and

4. The aggregate estimated cost of completing the above items does not exceed 2% of the principal amount of the mortgage Loan.