19.5.4.1 General Requirements

A. The AIA Document B108, Standard Form of Agreement Between Owner and Architect (OwnerArchitect Agreement) must be used in new construction/substantial rehabilitation closings. The RC Director is responsible for reviewing the substantive terms of the Owner-Architect Agreement, including the review of any changes to the substantive terms negotiated by the parties. The arbitration provision and related references to such provision in the Owner-Architect Agreement must be deleted, unless such deletion is prohibited by state law. Any modifications that delete or reduce the basic design and construction administration services of the Project Architect are prohibited. Further, there must be no changes that reduce, delegate, or leave a gap in the basic responsibilities of the parties involved. In uncommon circumstances where it becomes necessary to address special negotiated arrangements, any requested modifications must be approved by the RC Director, and noted in the B108 by striking out any

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Chapter 19 Closing Guide 19.5 Additional Requirements for Insurance of Advances

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inapplicable language, inserting additional provisions in Article 12, and must be shown in the form Additions and Deletions report. The proposed modifications must be supported by a detailed Projectspecific written justification and submitted to the RC Director for review and consideration. The HUD Closing Attorney will be available to consult with the RC Director concerning any proposed modifications. See Chapter 5, Section 5.2 and Section 5.5 for HUD’s requirements regarding the Owner-Architect Agreement.