5.1 Eligible Construction Activities

A. Construction activities eligible for the FHA insured mortgage programs include new construction, substantial rehabilitation, alteration, and repairs.

B. The construction activity with the largest scope of work is new construction, which is erecting new buildings with all the necessary site work. Substantial rehabilitation of an existing property involves significant work and describes construction activities that exceed the Aggregate Cost limit defined in this Chapter. Work on existing structures that is less than substantial rehabilitation is categorized as repairs and alterations partly as defined by the International Existing Buildings Code (IEBC 2015, Chapter 2 Definitions and Chapter 5 Classification of Work).

C. The MAP Guide categorizes construction activities in terms of the costs and the Class of Work for two purposes. The first purpose is to determine eligible construction activities under each program, i.e., by the Section of the National Housing Act. The second is to identify what methods and professional services are appropriate for the design, documentation, supervision, administration, and inspection of the proposed work.