Md. Code Regs. 05.03.01.08

Current through Register Vol. 51, No. 24, December 2, 2024

Section 05.03.01.08 - Rehabilitation Procedures-Standards and Inspections

A. Standards for Rehabilitation Work. The rehabilitated property shall satisfy:

(1) State and local planning, zoning, and building codes and other applicable laws; and

(2) Standards established by the Program.

B. Rehabilitation Work Write-Up.

(1) The work write-up describing the rehabilitation work to be done shall:

(a) Be prepared by the Department or an entity, such as a government agency, a nonprofit or for-profit corporation, or a licensed contractor, acceptable to the Program;

(b) Be approved by the Program; and

(c) Include only eligible rehabilitation costs as described in Regulation .06B or .07B of this chapter, as applicable.

(2) All rehabilitation work shall be performed by State-licensed contractors in accordance with the work write-up.

(3) The contractor or contractors performing the work shall submit to the Program both a draw schedule and a plan for implementing the work write-up.

(4) The Program, in its discretion, may revise the draw schedule in §B(3), above.

C. Monitoring Generally. In monitoring loans and disbursements, the Program, in its sole discretion, shall determine the frequency and level of oversight by the Program during rehabilitation, taking into consideration:

(1) The capability of the borrower or the developer under Regulation .07 of this chapter;

(2) The demonstrated experience and reliability of the contractor;

(3) The amount of the loan;

(4) The availability of local technical assistance; and

(5) Other factors considered relevant.

D. Inspections of Rehabilitation Work.

(1) For rehabilitation work under Regulation .05 of this chapter:

(a) The Program staff or those persons or entities, which may include the borrower, authorized by the Program, shall conduct inspections to:

(i) Determine the necessary scope of work, when required; and

(ii) Verify whether the contractor performing the work is entitled to a draw payment.

(b) Inspection reports shall be made on a standard form prescribed by the Program.

(c) The Department may charge borrowers a fee for inspections of the rehabilitation work.

(2) For rehabilitation work under Regulation .07 of this chapter:

(a) The Program may require that periodic inspections or a final home inspection be conducted to:

(i) Determine the necessary scope of work, if required; and

(ii) Verify whether the contractor performing the work is entitled to a draw payment or that all work has been completed;

(b) Inspection reports shall be made on a standard form prescribed by the Program;

(c) Inspections shall meet standards set by the Program and be conducted by the Program or an inspector acceptable to the Program; and

(d) The Department may charge borrowers a fee for inspections of the rehabilitation work.

Md. Code Regs. 05.03.01.08

Regulations .08 amended effective September 1, 1974 (1:2 Md. R. 112)
Regulations .08 amended effective July 23, 1975 (2:16 Md. R. 1138)
Regulations .08 amended as an emergency provision effective January 25, 1989 (16:3 Md. R. 334); emergency status expired July 25, 1989; adopted permanently effective August 7, 1989 (16:15 Md. R. 1650)
Regulations .08 under a new chapter, Preferred Interest Rate Loan Program, adopted effective July 22, 1991 (18:14 Md. R. 1609)