5.2.2.4 Construction Analyst Responsibilities

A. The Construction Analyst must:

1. Visit the site and its environs, investing time and attention sufficient to support a knowledgeable and professional review of the due diligence requirements and products, as well as the design, specification and construction documents prepared;

2. Evaluate the design of proposed and/or existing buildings and the construction materials, methods, or technologies employed in the buildings;

3. Review the agreements and contracts between the Borrower, design professionals, and contractors to ensure that the proposed services are sufficient and clearly defined and that the Borrower’s right and power to assign the agreement(s) to or for the benefit of the Lender is not impaired.

4. Evaluate the professional qualifications and experience of the Borrower’s design and construction team members and any due diligence professionals or contractors retained by the Borrower to ensure conformance to HUD requirements and relevance of qualifications and experience to the anticipated scope of work;

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5. Determine that the Borrower’s and Project Architect’s due diligence concerning physical attributes of the site or existing buildings is sufficient to expose and quantify such costs and risks as reasonably may be expected, based on observed conditions, and identify any unmet due diligence needs;

6. Evaluate architectural design, specification, construction contract, and cost and scheduling documents for proposed projects and ensure internal consistency, accuracy, reasonableness, and conformance to HUD requirements, including specifically: the Minimum Property Standards; local codes and the HUD minimum energy conservation code when this code exceeds local codes; accessibility requirements for persons with disabilities (see Appendix 5, Section A.5.2); and HUD standards for architectural drawings and specifications (see Appendix 5, Section A.5.5);

7. Review the Project Architect’s certification stating that the project design complies with the Minimum Property Standards, all applicable local codes and ordinances, accessibility requirements, and HUD standards (See Appendix 5, Section A.5.8);

8. Prepare complete cost analysis and review and confirm the reasonableness of Borrower’s costs for design, specification, construction, contract administration and supervision (and any related due diligence or other professional services) for the construction, alteration or repair of multifamily structures (See Appendix 5, Section A.5.9);

9. Evaluate the professional liability and errors and omissions insurance for the Project Architect and Borrower’s other design or due diligence professionals by comparing the risks covered and the dollar amount of loss coverage to the scale and cost of construction and/or evident risks, offering an opinion of the adequacy of such coverage and confirming that such insurance will be maintained through any warranty inspection period following endorsement;

10. Maintain a dated log of all contacts, messages, and conversations with the Project Architect and the Borrower’s design team referencing all documents and versions thereof in the log;

11. Ensure that all relevant parties are informed of HUD requirements and communications and coordinate responses thereto;

12. Prepare or review the schedule of anticipated future capital needs and corresponding estimates of costs, assuring that all repairs and replacements likely necessary during the CNA Estimate Period are included in the analysis of future needs. (See Appendix 5, Section A.5.7);

13. Review and confirm as part of the CNA the accuracy of estimates of replacement cost (new) for each structure (CNA e-Tool Property Insurance Schedule Report, the automated form HUD- 92329).

14. Identify, review, and describe to HUD any identities of interest among any members of the design, construction and/or due diligence team or between any such member and any principal of the Borrower or between any such member and the Lender;

15. If the proposed application is for a green MIP rate, then all the reviews, determinations, and evaluation by the Construction Analyst, as described above, also apply to the requirements and mandated qualifications and procedures described in Chapter 6 for energy and water conservation measures[6] ; and,

6 The Construction Analyst must review energy related reports, documentation and exhibits to ensure that HUD’s program requirements for Green MIP are met and properly documented for HUD’s review.

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16. Provide advice and assistance on design, construction, and physical due diligence issues to Borrowers, consultants, contractors, and others.

• B. Construction analysts must apply the specific standards or criteria enumerated in the Appendices to Chapter 5. The Construction Analyst is not required to review structural design details and calculations.