5.3.3.1 When Project Architects are Required

A. The Borrower must hire a Project Architect to define work at the property when one of the following conditions is true of the property:

1. The Aggregate Cost (before General Contractor fees or allowances) of all the identified repairs and alterations equals or exceeds $15,000 per unit.

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Chapter 5 Architectural and Construction Analysis 5.3 Requirements by Construction Activity and Program

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• This amount of $15,000 Aggregate Costs per unit used here as a threshold is different from the dollar per unit maximum cost that defines the boundary between Section 223(f) transactions and Section 221(d)(4) Substantial Rehabilitation. This threshold is not adjusted by the High Cost Factor or the annual inflation adjustment.

• Costs exceeding this threshold are evidence that the proposed repairs and alterations are sufficiently complex that the services of a Project Architect are required to ensure the clarity and accuracy of design and specification documents necessary to guide and evaluate all construction.

• Remedies for accessibility deficiencies, if any, must be included in both the cost of repairs and alterations and the design documents.

  • HUD may waive the requirement to hire a Project Architect when the Aggregate Cost of all repairs and alterations exceeds $15,000 per unit but work is limited to repairs and Level 1 Alterations.

2. When the Aggregate Cost of repairs and alterations is less than $15,000 per unit but the proposed work includes Level 2 or Level 3 Alterations, a Project Architect must be retained to prepare drawings and specifications for the Level 2 or Level 3 Alterations provided as follows:

   • Work proposed outside the work area where Level 2 or Level 3 Alterations will occur may be excluded from the Project Architect’s scope of work.; and

• When there are only Level 2 alterations proposed (no Level 3 Alterations), and the Level 2 alterations are nominal (e.g., enlarging a closet in a few units with no accessibility ramifications), the services of a Project Architect are not required.