19.6.1.7 Repairs and Alterations

A. See Chapter 5 for definitions:

1. Life Safety Repairs. Life Safety repairs address hazards to life and health and must be completed prior to endorsement. See Chapter 5, Section 5.10.8.G. Lender and Lender’s Counsel must submit evidence documenting that all Life Safety repairs identified in the Firm Commitment have been completed, and the RC Director must determine sufficiency of the documentation prior to closing.

2. Accessibility Repairs. Accessibility repairs correct accessibility deficiencies. If accessibility repairs are identified in the Firm Commitment, they must be completed as soon as possible. See Chapter 5, Section 5.10.8.G for additional guidance. When HUD permits the completion of Accessibility repairs after endorsement, the repairs must be covered by the Escrow Agreement for Deferred Repairs (form HUD-92476.1M) (use New York Building Loan Agreement in New York state).

3. Non-Critical Repairs. If Non-critical repairs are identified in the Firm Commitment, Borrower must complete them prior to closing or establish an escrow with Lender and execute the Escrow Agreement for Deferred Repairs (use New York Building Loan Agreement in New York state).

4. Architects and General Contractors. HUD requires the hiring of Architects and General Contractors for Projects as required in Chapter 5, Section 5.3.3. Additional documentation may also be required by the Firm Commitment. See Section 19.6.1.9, below, for form documentation requirements related to these services.

5. Substantial Rehabilitation. Construction work that constitutes Substantial Rehabilitation as defined in Chapter 5, Section 5.1.4 must be processed in accordance with Chapter 3, Section 3.2.

6. Architectural Issues. See Chapter 5, Section 5.2, Section 5.3, and Section 5.10.

7. Cost. See Chapter 5, Section 5.12 for cost estimation guidance for 223(f) transactions.