Yard Maintenance and Snow Removal Requirements

January 31, 2009 · Filed Under HUD Regulations · Comment 

ATTACHMENT 6 Yard Maintenance and Snow Removal Requirements and Cost Schedule

(2008 Update)

 

I. Grass Cuts

Lawn cutting (initial and subsequent cuts) includes mowing the lawn, weeding, edge trimming, sweeping of all paved areas (sidewalks, driveways, patios, etc.), and removal of all lawn clippings, related cuttings, and incidental debris (newspapers, flyers, bottles, etc.). These services are included in the cost allowable for an initial cut and subsequent cut (re-cut). The disposal of all clippings and incidental debris should be in compliance with jurisdictional requirements. The costs allowable for trimming shrubs and snow removal are listed separately in the accompanying schedule. Before and after photographs are required for all cuts. All photographs should be dated.

Mortgagees should not order lawn maintenance if a homeowners’ association for such properties as condominiums covers this service.

A. Frequency

One initial grass cut is allowed during each grass-growing season followed by subsequent cuts periodically throughout the season. If a local variation requires that the grass be maintained year round, only one initial cut may be charged. If there is one grass-growing season in the geographical location of the property, one initial cut is allowed within a 12-month period. If there are multiple growing seasons, an initial grass cut is permitted at the beginning of each grass-growing season.

If conveyance occurs during the growing season, unless otherwise indicated in local variations, a final grass cut should be completed within two weeks of conveyance.

Grass should typically be cut twice a month between April 1st and October 31st, however, more frequent lawn cuts may be allowed in certain areas as indicated in the variances at the end of this attachment. Grass should not be cut between November 1st and March 31st unless prior written approval is obtained from the M&M Contractor or otherwise prescribed in the local variances. If the grass grows to six inches in length during the off-season, the Mortgagee should request prior approval to cut the grass.

B. Oversized Yards

For yards greater than 15,000 square feet, Mortgagees should submit an over-allowable request. Requests to exceed cost limits for larger lots should be accompanied by lot dimensions and the calculated square footage of the lot as well as photo documentation. Mortgagees may request over-allowable approval for an entire growing season. For each over-allowable request, the Mortgagee should provide one bid for the cost of the initial cut, one bid for each subsequent cut (all of equal cost) and the total number of subsequent cuts required. Even if the Mortgagee is approved for an entire season, HUD will only reimburse grass-cutting expenses actually incurred.

C. Specifications

Grass should be cut to a maximum of two inches in length. Grass and weeds are to be cut to the edge of the property line and to a maximum of two inches. Grass and weeds are to be trimmed around foundations, bushes, trees, and planting beds. Grass and weeds should also be trimmed flush with fences and other construction that would normally require trimming.

Shrubs are to be trimmed and cuttings removed once in a growing season, between April 1st and October 31st. An over-allowable should be submitted for any subsequent trimming of shrubs during the same growing season, with appropriate before and after photographs.

II. Snow Removal

The Mortgagee should maintain a safe and accessible property throughout the winter season. Snow should be removed from the entry, walkway, porch and driveway following a minimum three-inch accumulation. Mortgagees must comply with local codes and ordinances governing the removal of snow and ice. Before and after photographs are required for all snow and ice removal.



Yard Maintenance Cost Schedule

 

State

 

 

Initial cut up to 10,000 sq. ft.

 Initial cut 10,001 sq. ft. to 15,000 sq. ft.

 

Re-cut up to 10,000 sq. ft.

 

Re-cut 10,001 sq. ft. up to 15,000 sq. ft.

 

Snow Removal

 Trim Shrubs
Alabama $70 $90 $65 $85 $0 $30
Alaska $100 $120 $95 $115 $55 $40
Arizona $75 $95 $70 $90 $50 $40
Arkansas $70 $90 $65 $85 $45 $40
California $100 $120 $95 $115 $55 $45
Colorado $85 $105 $80 $100 $45 $40
Connecticut $100 $120 $95 $115 $55 $45
Delaware $95 $125 $90 $120 $45 $35
District of Columbia $95 $115 $90 $110 $55 $45
Florida $85 $105 $80 $100 $0 $30
Georgia $85 $105 $80 $100 $0 $30
Guam $110 $130 $105 $125 $0 $45
Hawaii $110 $130 $105 $125 $0 $45
Idaho $100 $120 $95 $115 $55 $45
Illinois $85 $105 $80 $100 $45 $30
Indiana $85 $105 $80 $100 $45 $30
Iowa $85 $105 $80 $100 $45 $40
Kansas $85 $105 $80 $100 $45 $40
Kentucky $85 $105 $80 $100 $45 $30
Louisiana $85 $105 $80 $100 $45 $40
Maine $100 $120 $95 $115 $55 $45
Maryland $100 $120 $95 $115 $55 $45
Massachusetts $100 $120 $95 $115 $55 $45
Michigan $85 $105 $80 $100 $45 $35
Minnesota $85 $105 $80 $100 $45 $40
Mississippi $85 $105 $80 $100 $0 $30
Missouri $85 $105 $80 $100 $45 $40
Montana $85 $105 $80 $100 $45 $40
Nebraska $85 $105 $80 $100 $45 $40
Nevada $90 $110 $85 $105 $50 $40
New Hampshire $100 $120 $95 $115 $55 $45
New Jersey $100 $120 $95 $115 $55 $45
New Mexico $85 $105 $80 $100 $45 $40
New York $100 $120 $95 $115 $55 $45
North Carolina $85 $105 $80 $100 $45 $30
North Dakota $85 $105 $80 $100 $45 $40
Ohio $85 $105 $80 $100 $45 $35
Oklahoma $85 $105 $80 $100 $45 $40
Oregon $100 $120 $95 $115 $55 $45
Pennsylvania $95 $115 $90 $110 $45 $35
Puerto Rico $110 $130 $105 $125 $0 $30
Rhode Island $100 $120 $95 $115 $55 $45
South Carolina $85 $105 $80 $100 $0 $30
South Dakota $85 $105 $80 $100 $45 $40
Tennessee $85 $105 $80 $100 $45 $30
Texas $85 $105 $80 $100 $45 $40
Utah $85 $105 $80 $100 $45 $40
Vermont $100 $120 $95 $115 $55 $45
Virginia $95 $115 $90 $110 $55 $45
Virgin Islands $85 $105 $80 $100 $0 $30
Washington $100 $120 $95 $115 $55 $45
West Virginia $95 $115 $90 $110 $55 $45
Wisconsin $85 $105 $80 $100 $45 $40
Wyoming $85 $105 $80 $100 $45 $40

If property yard is over 15,000 square feet, contact the M&M contractor.

 

Local Variations from General Requirements

SANTA ANA Homeownership CenterArizona/ California/ Nevada

Grass should be cut year-round. Properties with desert landscaping require only once a month weed removal and are reimbursed as a re-cut.

Hawaii/Pacific Islands

Grass should be cut year round.

ATLANTA Homeownership CenterFlorida

Grass should be cut year round.


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Debris Removal Service Requirements

January 31, 2009 · Filed Under HUD Regulations · Comment 

ATTACHMENT 5 Debris Removal Service Requirements and Cost Schedule (2008 Update)

A Mortgagee may expend up to the amount listed in this attachment for debris removal without prior written approval from the M&M contractor. Costs such as labor hours, dump fees, and transportation (e.g., fuel, mileage, truck rental) should not be claimed in addition to the reimbursable amount as these costs are incorporated in the per unit allowable cost for debris removal. Before and after photographs are required.

The Department acknowledges that it is a common business practice of many property preservation contractors to wait until they have collected debris from several properties before taking the debris to an appropriate facility for disposal and that not all disposal facilities provide printed receipts. Therefore, where such receipts are not available, Mortgagees will not automatically be denied reimbursement for debris removal. However, the Department must be able to confirm the type and amount of debris that was removed and that all debris was disposed of properly. Therefore, Mortgagees must maintain a complete audit trail which will include: the name, address, and phone number of each company providing the debris removal service, the FHA case number and address of the property, the date of the disposal, the number of cubic yards of debris disposed and a listing of any items that are not ordinary household debris which would include health and safety items, tires, appliances, cars, trucks, boats, batteries, etc. The documentation must also provide the name, address and telephone number of all disposal facilities used.

If a dumpster was brought to the property, the supporting information must identify the date the dumpster was delivered to the property, the date it was removed, and the name, address and telephone number of the company supplying the dumpster.

I. Exterior

Mortgagees should remove all exterior debris, including abandoned vehicles, in accordance with applicable local laws. Items of personal property that are securely affixed and in good condition, such as a swing set or dog-house/kennel should not be removed if they add value to the property. However, if personal property is in disrepair or determined to be a health and safety hazard, it should be removed.

Mortgagees must maintain, in the claim file, salvage yard and dump fee receipts that substantiate all claimed debris removal. The documentation must include the date, address of the property(s) for which the debris is being dumped, number of yards dumped, and the number and type of appliances (e.g., refrigerators, stoves, dishwashers) being dumped or disposed. The receipt must indicate the name of the dump to verify that the debris has been disposed of legally.

Before and after photographs are required to support all required debris removal. Photographs should be dated and the property address indicated. If photographs are not available as documentation of required debris removal, HUD will not reimburse the Mortgagee for associated costs.

II. Interior (Including Attic, Basement, and Storage Spaces)

Mortgagees are not to remove interior debris except for:

• Debris that constitutes a health or safety hazard;

• Debris that has or is likely to result in issuance of a code violation, a fine and/or lien;

• Debris required to be removed as part of an eviction by local law enforcement or crews under the control and direction of local law enforcement where the Mortgagee has no control over the timing of removal.

If the clean out of a property’s interior is necessary, the clean-out should include removal and proper disposal of debris including:

• Shabby or torn carpet;

• Dilapidated, unsafe flooring;

• Health and safety hazards (See Hazardous Waste Removal, below), including dead animals; and personal effects (e.g., furniture, clothing, dishes, utensils), unless otherwise instructed by local law enforcement during an eviction.

Before and after photographs are required to document the existence of personal property items and all required debris removal. Photographs should be dated and the property address indicated. If photographs are not available as documentation of required debris removal, HUD will not reimburse the Mortgagee for associated costs.

III. Hazardous Waste Removal

Mortgagees are required to remove unhealthy or hazardous materials from the exterior and interior of properties prior to conveyance and should adhere to local municipal health and safety requirements with respect to proper disposal of said materials. For additional clarification, the Environmental Protection Agency (EPA) website lists common household items containing potentially hazardous ingredients that might be found in a garage, basement, or other storage space (http://www.epa.gov/epaoswer/non-hw/muncpl/hhw-list.htm). Further, as a matter of health and safety, refrigerators should be unplugged and refrigerator doors should be removed and stored if required by applicable state or local law or ordinance.

Materials considered unhealthy or hazardous that should be removed prior to conveyance include but are not limited to:

• Decaying food or other organic matter;

• Dead animals and animal feces;

• Pest infestations (see below);

• Broken glass or other sharp objects;

• Large containers of liquids;

• Large quantities of paint or paint products;

• Paints or solvents in any amount stored in or near papers, fabrics or other flammable materials; and

• Highly flammable chemicals (e.g., solvents, paint thinners, gasoline, motor oil and motor additives, etc.).

The following products, if found in quantities consistent with normal household use, are not considered hazardous waste for purposes of debris removal under this section.

• Non-flammable materials including reasonable quantities of paper and fabrics (unless stored near flammable chemicals);

• Common cleaning products and household chemicals such as insect repellent;

• Up to five gallons of paint and paint products;

• Lawn and garden products and fertilizers; and

• Pool chemicals.

EPA guidelines allow paint cans to be disposed of with regular debris, once treated. Paint is treated by brushing the paint onto cardboard or newspaper, allowing the empty can to dry with the lid off, or by adding absorbent material such as kitty litter, shredded newspaper, sand, or sawdust directly into the latex paint can. Dried paint may then be thrown in the trash and removed from the property as regular debris.

The M&M contractor must approve any costs associated with disposal action(s) required by a municipality.

IV. Bug and/or Pest Infestation

If, on the initial inspection, the Mortgagee finds evidence of pests (e.g., roaches, water bugs, mice, rats) that does not prevent clean-out of debris or is not a health or safety hazard, the Mortgagee may use over-the-counter products to exterminate the bugs. If the property is found to be infested with pests that constitute a health or safety hazard or prevent the clean-out or debris removal, the Mortgagee may utilize a professional Pest Control Service. A flea infestation does not require photographic evidence.

V. Personal Property and Debris Removal during Evictions

Some jurisdictions require a legal eviction to remove personal property from a vacant house. Mortgagees should follow local code and laws and exercise good judgment when distinguishing between personal property and debris. If Mortgagees have questions regarding personal property and debris, they should consult local counsel. If a Mortgagee is required by local law to remove trash and debris from the property as part of an eviction and the Mortgagee has no control over the timing of removal, the costs for removing the items are considered eviction expenses and are not subject to the debris removal cost guidelines, the maximum securing fee or the overall allowable cost limit. These costs are to be claimed as man-hours and should be deemed by the M&M contractor to be reasonable and customary for services performed in the area.

A. Personnel

In most circumstances, no more than four people should be necessary to complete an eviction for a townhouse or condominium and six people for a single family detached dwelling. If local law provides that a specific number of people should be provided, or if the law enforcement official conducting the eviction identifies a need for additional people to be present at the time of the eviction, this information must be documented in the claim review file. Similarly, if local or state law requires that a service be performed within a certain time frame or subject to specific removal or storage requirements, those requirements must be fully documented in the claim review file and costs are not subject to the allowable cost limit for the jurisdiction.

The removal of curbside debris following an eviction will be reimbursed as man-hours. No more than four man-hours at $20 per man-hour, per person at the scheduled eviction will be reimbursed for the removal and disposal of eviction debris. Dump fees and storage fees (as appropriate for the jurisdiction) will also be reimbursed.

If crews show up for canceled or re-scheduled evictions, the Mortgagee is only eligible to claim a maximum of one man-hour at $20 of labor per person.

B. Photographic Evidence

Photographs are required to support all personal property/debris removed from a property as part of an eviction. Eviction costs should be entered in item 305 of Part D of the claim form.

VI. Over-allowable Requests for Debris Removal Services

Mortgagees should obtain prior written approval from the M&M contractor for any debris removal expense that exceeds the cost per cubic yard or the total allowable number of yards indicated in the schedule. When requesting approval to exceed the debris removal cost limit, the Mortgagee should obtain two independent competitive bids. If the Mortgagee utilizes a field service company, that firm may provide one of the bids. The Mortgagee should obtain a second independent and competitive bid and submit the bids to the appropriate M&M contractor with an over-allowable request. Field service companies or contractors may not submit second bids directly to the M&M contractor. This violates the integrity of HUD’s requirement for an independent and competitive bid process.

The bids should specify the types and location of the debris, the number of cubic yards, and include photographic documentation. Any additional costs of non-general refuse should be factored into the final bid and clearly indicated for M&M contractor review. All second bids will be on the bidding company’s letterhead and will include the bidder’s name, address and telephone number. Upon receipt of the bids, the Mortgagee should date stamp them and attach them to a Request to Exceed Cost Limit for Preservation and Protection. Additionally, the Mortgagee should identify all other preservation and protection expenses to-date so that the M&M contractor will know if and by how much the Mortgagee will exceed the maximum allowable cost limit. Debris removed per local code is also subject to the established cost limits on debris removal. Mortgagees will not be reimbursed for the cost of obtaining bids.

Upon receipt of the required bids, the M&M contractor will, within five business days, take one of the following actions:

• Notify the Mortgagee to accept one of the bids submitted;

• Reject both bids and provide the Mortgagee with examples of similar work that has been recently performed at a more reasonable cost, or

• Notify the Mortgagee to convey the property without removing the debris.

 

 

Debris Removal Service Schedule
State
 Per Cubic Yard
 Max 1 unit 12 cu yd Max 2 units 15 cu yd Max 3 units 18 cu yd
 Max 4 units 21 cu yd
 Large appliance removal
 Vehicle Removal
 Pest infest.
 Tires
Alabama $45 $540 $675 $810 $945 $140 $180 $150 $15
Alaska $35 $420 $525 $630 $735 $95 $125 $75 $15
Arizona $35 $420 $525 $630 $735 $95 $215 $75 $15
Arkansas $35 $420 $525 $630 $735 $113 $215 $125 $15
California $40 $480 $600 $720 $840 $88 $120 $75 $15
Colorado $40 $480 $600 $720 $840 $100 $160 $125 $15
Connecticut $55 $660 $825 $990 $1155 $155 $210 $110 $15
Delaware $55 $660 $825 $990 $1155 $110 $215 $110 $15
District of Columbia $55 $660 $825 $990 $1155 $100 $215 $110 $15
Florida $45 $540 $675 $810 $945 $100 $180 $170 $15
Georgia $50 $600 $750 $900 $1,050 $140 $205 $113 $15
Guam $40 $480 $600 $720 $840 $88 $125 $10 $15
Hawaii $35 $420 $525 $630 $735 $88 $125 $10 $15
Idaho $40 $480 $600 $720 $840 $75 $165 $75 $15
Illinois $40 $480 $600 $720 $840 $125 $155 $140 $15
Indiana $60 $720 $900 $1,080 $1260 $55 $95 $140 $15
Iowa $35 $420 $525 $630 $735 $50 $115 $100 $15
Kansas $35 $420 $525 $630 $735 $40 $140 $100 $15
Kentucky $50 $600 $750 $900 $1050 $165 $215 $20 $15
Louisiana $50 $600 $750 $900 $1,050 $82 $170 $100 $15
Maine $50 $600 $750 $900 $1,050 $195 $210 $110 $15
Maryland $55 $660 $825 $990 $1,155 $195 $215 $110 $15
Massachusetts $50 $600 $750 $900 $1,050 $195 $210 $110 $15
Michigan $50 $600 $750 $900 $1,050 $135 $240 $50 $15
Minnesota $40 $480 $600 $720 $840 $75 $125 $150 $15
Mississippi $55 $660 $825 $990 $1,155 $140 $215 $45 $15
Missouri $35 $420 $525 $630 $735 $150 $140 $75 $15
Montana $50 $600 $750 $900 $1,050 $150 $160 $75 $15
Nebraska $35 $420 $525 $630 $735 $63 $115 $125 $15
Nevada $40 $480 $600 $720 $840 $75 $165 $75 $15
New Hampshire $50 $600 $750 $900 $1,050 $155 $210 $110 $15
New Jersey $50 $600 $750 $900 $1,050 $140 $210 $110 $15
New Mexico $40 $480 $600 $720 $840 $150 $160 $125 $15
New York $45 $540 $675 $810 $945 $105 $140 $110 $15
North Carolina $55 $660 $825 $990 $1,155 $130 $230 $35 $15
North Dakota $40 $480 $600 $720 $840 $75 $125 $125 $15
Ohio $40 $480 $600 $720 $840 $105 $130 $110 $15
Oklahoma $35 $420 $525 $630 $735 $100 $190 $40 $15
Oregon $40 $480 $600 $720 $840 $25 $125 $10 $15
Pennsylvania $50 $600 $750 $900 $1,050 $50 $210 $110 $15
Puerto Rico $50 $600 $750 $900 $1,050 $130 $190 $35 $15
Rhode Island $50 $600 $750 $900 $1,050 $195 $210 $110 $15
South Carolina $55 $660 $825 $990 $1155 $30 $235 $75 $15
South Dakota $45 $540 $675 $810 $945 $32 $190 $125 $15
Tennessee $50 $600 $750 $900 $1,050 $135 $195 $20 $15
Texas $45 $540 $675 $810 $945 $75 $190 $125 $15
Utah $40 $480 $600 $720 $840 $90 $195 $100 $15
Vermont $50 $600 $750 $900 $1,050 $195 $215 $110 $15
Virginia $55 $660 $825 $990 $1,155 $70 $230 $110 $15
Virgin Islands $50 $600 $750 $900 $1,050 $130 $190 $35 $15
Washington $35 $420 $525 $630 $735 $40 $115 $51 $15
West Virginia $50 $600 $750 $900 $1,050 $125 $240 $60 $15
Wisconsin $40 $480 $600 $720 $840 $150 $115 $100 $15
Wyoming $45 $540 $675 $810 $945 $77 $190 $75 $15

 

*Reimbursement is per tire. If there are more than 6 tires, contact the M&M contractor

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Boarding Service Requirements

January 31, 2009 · Filed Under HUD Regulations · Comment 

ATTACHMENT 4 Boarding Service Requirements and Cost Schedule (2008 Update)

Mortgagees should not board a property unless they have prior written approval from the M&M contractor, and/or:

• The property is severely damaged by fire, flood or other natural disaster;

• The property should be secured for safety reasons;

• The property is in a high vandalism area and boarding is the only reasonable means to protect the security of the property;

• The property is located in a pre-approved boarding area.

When boarding is appropriate, all first floor windows and doors and all basement windows and doors should have plywood covering the entire opening and frame. The covering should be secured with carriage bolts. Eliminate any health and safety hazard caused by any protruding bolts used to secure boarding. The use of nails is prohibited. The cost of boarding properties is not included in the maximum allowable limit per property. Before and after photographs are required. HUD will not reimburse the Mortgagee for unauthorized boarding. Mortgagees should request prior written approval from the M&M contractor if the cost of securing a severely damaged property exceeds $550.

There should be no boarding above the first floor unless entry is possible without use of a ladder, and the opening is large enough for a person to easily pass through. Openings above the first floor that do not meet this test should be secured but not boarded. Second story and higher openings are typically accessible only from attached properties, stairwells or fire escapes. If security bars are located on windows/doors, boarding is not required. Openings too small for a person to pass through, particularly pet openings in doors, should be secured but not boarded. To ensure that no hazards exist, remove all broken glass from the windows and surrounding interior and exterior areas.

All properties should be boarded in accordance with local codes. If local codes differ from HUD requirements herein, local codes supersede.

For the purpose of this document, the definition of united inch is length plus width.

I. Specifications for Plywood Boarding

1. Exterior Plywood should be of un-sanded CDX grade.

2. Plywood thickness should be 1/2” for window openings, 5/8” for door openings and 3/4” for sliding door and French door openings. When extra large window openings are encountered use 5/8” or 3/4” as necessary.

3. All holes should be drilled to accommodate bolts. The holes in the top of the plywood should be 12” down from the top and 20% of the width of the plywood cover, in from the side.

4. The holes in the bottom should be 25% of the height of the plywood, up from the bottom and the same distance in from the side as the top.

5. Carriage bolts mated with nut and two three inch flat washers as shown in the side view. Washers to be of sufficient size to fully accept the square portion of bolt beneath head. Bolt and mating hardware may be galvanized or cadmium plated. 3/8” x 12” bolts should be supplied with each 2’8’ door, 3’0” door, and glass sliding door cover. 3/8 x 10” bolts should be supplied with the rest.

6. 2” x 4” lumber should be graded and should be a minimum of 16” longer than the width of the plywood cover. (Note: 2×4s will be drilled with 1/2” diameter holes that line up with the holes in the plywood covers.)

7. All windows and doors, except the front door, through which access to the interior of the dwelling is made, should be secured. All window boards will be cut to fit inside the concrete block or brick opening with a maximum 1/8” clearance. THE PLYWOOD COVERING SHOULD BE OF ONE CONTINUOUS PIECE WHEN POSSIBLE.

8. All fabricated parts and ancillary materials become property of the Department of Housing and Urban Development.

9. All coverings are to be fabricated according to the attached drawing and specifications.

II. Boarding Windows

1. Except as noted below, all window sashes, frames, glass and hardware are to be undamaged by the boarding installation.

2. All screen inserts are to be removed, marked as to location and stored in a convenient closet or in the utility room.

3. In all cases where it is possible to adjust the position of the sashes to accommodate the specifications for boarding above, the sashes are to remain in the frame.

4. In instances wherein the sashes cannot be adjusted to accommodate the boarding specifications above, the sashes are to be removed from the frames and stored in a convenient closet or in the utility room. This includes all stationary lights secured by stops.

5. In cases wherein the sash cannot be removed and/or the frame is permanently built into the house and cannot be removed (i.e., Fenestra windows) it will be necessary to break the corner panes to accommodate the boarding and bolts. If the location of bolt holes, in the plywood, requires modification because of the muntin bar (a small bar that divides a windows glass), these locations are to be modified. In no case, in any type of window, is any sash or frame part to be damaged.

6. In all instances where items should be removed from the frame and stored, the items should be clearly marked as to the area from which it was removed.

7. All items are to be stored on edge and braced to prevent accidental tipping, sliding, etc. In no instance is any item to be stored laid flat.

8. Hinged windows are to be completely removed from the frame and stored as stated in (7) above. If possible the hinge pins are to be removed and remain with the removed item.

9. Faced nailing of panels to wood frame windows is prohibited.

 

Note: Costs below are per United Inch.

Definition – United Inch equals length plus width.



Boarding Cost Schedule (NATIONWIDE)

 

Boarding 1/2″

$0.80

Boarding 5/8″

$0.90

Boarding 3/4″

$1.00

Screening

$0.55

 

 

 

Local Variations from General Requirements

 

ATLANTA Homeownership Center

Illinois

Install cloth screening. Cloth screen first floor openings in zip codes:

60429 60426 60411 60466 60477 60443

Screening of wood windows is accomplished by framing the window with 2×2s. The screening is stapled over the frame and fastened with 1×2 furring laths.

Chicago, Illinois

Install Plywood boarding in the following pre-approved Chicago zip code areas following the Chicago boarding requirements below.

60608 60609 60610 60612 60615 60616

60617 60619 60620 60085 60621 60622

60623 60624 60627 60628 60636 60637

60643 60644 60649 60651 60653

Rule 1. All openings in a structure which may be accessed from ground level and/or within 8 feet in any direction of an exterior stairway, fire escape, ramp, porch or other exterior construction reachable from ground level or a public way should be secured to prevent entry by unauthorized persons. One building entrance should be secured with a door of either solid core wood or steel construction, having no window in the door, and the door should be securely locked to allow access only to authorized persons. Said door should be secured with a through-bolted hasp and padlock if the door swings in.

Materials

Rule 2. If plywood materials are used to secure buildings, such materials should be no less than 5/8-inch thick, exterior grade. Particleboard, wafer board, masonite or other similar materials should not be used for purposes of boarding-up a building.

Rule 3. Mechanical fasteners used for wood board-up materials should be round-head, non-slotted carriage bolts no less than 3/8-inch in diameter with washers and nuts on the interior face.

Installation Methods

Rule 4.

The primary method of securing plywood boards should be by the use of through-bolt compression fastening, using plywood on the exterior face and wood bracing constructed of minimum 2-inch by 4-inch (nominal) lumber installed on the interior side of the opening to be secured, perpendicular to the long dimension of the opening. Such bracing should extend at least 6 inches beyond the edge of the opening on each side in order to be securely braced against the building structure.

Rule 5.

Wood construction used to secure a building opening should contain at least one bolt in each corner and additional bolts no more than four feet on center continuously along the perimeter. Each bolt should fully penetrate the wood bracing on the interior side of the opening.

Rule 6.

In the event that the through-bolt compression fastening is impossible due to the construction or condition of the opening, the opening should be covered with plywood secured with minimum 3-inch-long wood screws fastened on 4-inch centers around the circumference of the opening.

Florida

Boarding is pre‑approved in the following zip code areas:

Miami:

33004 33009 33010 33012 33013 33014

33020 33023 33034 33054 33055 33056

33060 33069 33122 33125 33127 33128

33130 33131 33132 33136 33137 33138

33142 33147 33150 33157 33161 33167

33168 33169 33170 33177 33181 33190

33311 33315 33316 33401 33403 33404

33405 33407 33426 (east of 1‑95) 33435 33441

33444 33460 33462 (east of 1‑95)

Exterior surface and edges of all plywood should be painted with one coat white primer and one cost white finish. Use of screws to secure panels to wood frame windows is prohibited. See plywood-boarding diagram on page 25.

Caribbean

Exterior surface and edges of all plywood should be painted with one coat white primer and one coat white finish. Use of screws to secure panels to wood frame windows is prohibited. Additionally, boarding is pre‑approved in the following zip code areas:

00923 00924 00929 00601 00602 00603

00703 00704 00705 00610 00612 00714

00616 00617 00794 00915 00956 00957

00959 00961 00622 00623 00725 00627

00729 00920 00921 00979 00982 00983

00985 00986 00987 00962 00736 00735

00935 00638 00739 00769 00782 00907

00783 00780 00926 00646 00647 00738

00650 00934 00652 00653 00784 00656

00965 00966 00967 00968 00969 00970

00971 00778 00659 00917 00660 00791

00662 00913 00664 00795 00777 00667

00669 00670 00771 00772 00911 00773

00674 00909 00606 00707 00680 00715

00676 00687 00718 00719 00720 00723

00624 00716 00717 00728 00730 00731

00734 00740 00741 00678 00677 00745

00925 00926 00927 00637 00688 00952

00751 00690 00683 00685 00757 00907

00909 00911 00912 00913 00953 00949

00976 00641 00692 00693 00901 00765

00766 00767 00698

EXCEPTION: There is no pre-approved boarding in ANY gated community within these zip code areas.

PHILADELPHIA Homeownership Center

Connecticut

Boarding pre‑approved in the following zip codes areas for the cities of:

 

Bridgeport: 06601 06604 06605 06606 06607 06608 06610 06611

06612 06614 06615 06650 06673 06699

New Haven: 06501 06502 06503 06504 06505 06506 06507 06508

06509 06510 06511 06512 06513 06514 06515 06516

06517 06518 06519 06520 06521 06524 06525 06530

06531

Massachusetts

Boarding pre‑approved for the following zip code areas:

Boston: 02108, 02109, 02110, 02118, 02119, 02120, 02121, 02122,

02124, 02125, 02126, 02127, 02128, 02130, 02131, 02136

Brocton: 02401, 02402

Lawrence: 01840, 01841, 01842, 01843, 01845

Lynn: 01902, 01903, 01904, 01905

 

New Jersey

Boarding is pre-approved for the following zip code areas for the cities of:

 

Asbury Park: 07712

East Orange: 07017 07018 07019

Elizabeth: 07201 07202 07206 07208

Irvington: 07111

Jersey City: 07302 07304 07305 07306 07307 09308 07309 07310

07311 07395 07399

Long Branch: 07740

Newark: 07101 07102 07103 07104 07105 07106 07107 07108

07112 07114 07175 07182 07184 07188 07189 07191

07192 07193 07194 07195 07197 07198 07199

New Brunswick: 08901 08902 08903 09804 08905 08906 08922

08933 08988 08989

Patterson: 07501 07502 07503 07504 07505 07506 07507 07508 07509 07510 07511 07512 07513 07514 07522 07524

07533 07538 07543 07544

Plainfield: 07060 07061 07062 07063 07069

 

Boarding is pre-approved for the following zip code areas:

 

08016 08066 08096 08618 08608

08101 08102 08103 08104 08105

08232 08609 08610 08611 08611

08312 08302 (Bridgeton only) 08360 (Vineland only)

08401 08406 (Ventnor only) 08110 (Pennsauken only)

08600 08332 (Mellville only) 08650 (Trenton only)

New York, New York

Board all properties within the city limits of the five boroughs in New York City without pre-approval with the exception of Dutchess, Putnam, and Rockland Counties.

Rhode Island

Boarding is pre‑approved for the following zip code areas in the cities of:

 

Providence: 05901 02902 02903 02904 02905 02906 02907

02908 02909 02910 02911 02912 02918 02919

02940

Cranston: 02823 02905 02907 02910 02920 02921

Pennsylvania

Boarding is pre‑approved for the following zip codes.

 

17509 17512 17516 17517 17518 17527

17532 17536 17547 17550 17560 17563

17565 18101 18102 18103 18115 18117

19013 19023 19320 19335 19380 19401

19464

SANTA ANA Homeownership CenterLong Beach, California

Properties should be secured with window screens and security doors only. Do not use plywood boarding material to secure window openings. See diagrams and specifications on pages 28-29.

 

 

 

HUD Regulations Plywood Boarding Panel Detail

 

 

 

HUD Regulations Securing Instructions

HUD Regulations for Securing Doors

HUD Regulations Security Screen

HUD Regulations Security Screen 2

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Lock Change/Securing Service Requirements

January 31, 2009 · Filed Under HUD Regulations · Comment 

ATTACHMENT 3 Lock Changes/Securing Service Requirements and Cost Schedule (2008 Update)

Properties must be secured to prevent unauthorized entry and protect against weather related damage. The cost schedule to this attachment includes a Maximum Allowable Securing Fee for securing that includes the minimum securing requirements identified in I. below, as well as a flat fee for photographs. This attachment also identifies maximum allowable fees for securing swimming pools and completing temporary roof repairs, which are not included in the Maximum Allowable Securing Fee. The securing requirements listed below may be performed without prior approval from the M&M contractor if all individual expenses remain within the maximum cost allowable for that particular service. Written approval from the M&M contractor is required if the cost exceeds the maximum allowable for any particular service listed herein. Re-securing the property is allowed without prior approval, provided the costs are within the maximum allowable securing fee.

I. Minimum Securing Requirements (Post Foreclosure)

1. All windows and doors must be secured.

2. Broken glass should be replaced, unless the opening is to be boarded. All broken glass should be removed.

3. Locks on the front and rear entry doors should be replaced with one of the following master lock sets:

 Kwikset No. 400T

Kwikset No. 400P

 Kwikset No. 400V or equivalent, with identical key codes.

4. If there is a deadbolt lock on the main entry door replace handle set with a Kwikset lock or equivalent and disable the existing deadbolt.

5. Other entryways that provide immediate access to the living area, attached garage or basement area should be secured with a slide bolt, unless otherwise noted in variations. Or, if the secondary entryway has an existing deadbolt lock, re-key the deadbolt to the specifications of the front and rear entry doors.

6. Document key-codes to the existing/replacement lock in the Mortgagee’s Comments section of form HUD-27011 Part A, which must be provided to the M&M contractor.

7. Doors and windows should not be braced or nailed shut or the Mortgagee will be held accountable for resulting damage. Replace locking mechanism on windows if inoperable or missing.

8. Sliding glass doors should be double locked.

9. Detached garage doors and outbuildings should be secured with a padlock and hasp.

10. Unplug automatic garage door openers and secure garage doors, when applicable. Garage doors should be left in such a condition as to allow for opening and closing without the use of the automatic garage door opener. Leave the remote key(s)/transmitter(s) in a kitchen counter drawer.

Minimum Securing Requirement (Pre-Foreclosure)

1. At a minimum the Pre-foreclosure securing requirements should include the items listed in “I” above, except the rear entry door lock must not be changed to allow borrower access, if applicable.

II. Temporary Roof Repair

Roof damage left unattended exposes a property to deterioration; moisture accumulation and mold growth. A separate cost item in the amount of $400 has been created for temporary roof repair to protect the interior of properties from further damage. M&M approval is not required if the cost of the temporary repair does not exceed the maximum allowable amount of $400. The Mortgagee should submit form HUD-50002, “Request to Exceed Cost Limits for Preservation and Protection,” for any temporary roof repair that exceeds the maximum allowable for roof repair. Temporary repairs (e.g., tarping/patching/or replacing loose shingles) should be performed immediately upon discovery of roof damage. Tarps and other temporary measures may be used to prevent further deterioration only until permanent repairs can be completed.

If a property has sustained roof damage that is not surchargeable and the property is scheduled for conveyance within 30 days of the date a roof leak is discovered, the Mortgagee may convey the property with a tarp or other temporary repair. Mortgagees should notify the M&M in advance when they will convey a property with a temporary repair and should provide evidence that the damage is not surchargeable and was only recently discovered. Failure to provide this notification may result in re-conveyance.

If the damage is discovered 31 or more days prior to the conveyance date, the Mortgagee should affect a permanent roof repair, whether or not the damage is surchargeable. If the cost to permanently repair the roof exceeds the cost allowable for this item, the Mortgagee should submit an over-allowable request.

Properties with surchargeable roof damage may not be conveyed with a tarp or other temporary repair without the prior approval of the M&M contractor.

Mortgagees should retain before and after photographs and a detailed description of what actions were taken to prevent further roof deterioration or water leakage. The documentation must be maintained in the claim review file to support the reimbursement of the costs claimed.

III. Swimming Pools

Fees for securing or winterizing swimming pools and hot tubs or spas are not included in the maximum allowable limit per property. See below for the maximum costs for securing pools and spas. The costs for permits to drain pools/spas by local governments are included in the maximum limit for this cost item and will be reimbursed based on the actual cost incurred. Prior written approval from the M&M contractor is not required for securing or winterizing pools unless noted otherwise in variances below. Before and after photographs are required. At a minimum the Mortgagee should:

• Pump out pool leaving 4 feet of water in the deep end (this amount may vary depending on the elevation). After pumping, apply chlorine to control the algae in the remaining water. Circulate remaining water to mix chlorine. Isolate and drain pumps and filters. Remove all trash from interior of pool and haul away.

• If there is a pool cover present, secure and cover pool. Check with state and local codes to verify whether the pool should be fenced.

• If there are no jurisdictional requirements, and no existing pool cover, secure according to the diagram on page 20. However, no pool cover is required in Arizona, California, Hawaii, Nevada and Other Pacific Islands.

• Secure entrance gates to fences surrounding pools with a lock or padlock and chain when no lock is present.

• Replace any damaged or missing boards or sections of fence surrounding pools.

If the property has an above ground pool in good condition, built up with decking or other infrastructure that will support a pool cover, treat it as an in-ground pool. Above ground pools in poor condition or that cannot be secured in accordance with the guidelines herein, should be removed. If an above ground pool is removed, remediate any depression in the ground that might constitute a hazard.

WARNING:

Check local area standards before draining pool. In areas where there is a high ground water level, removing too much water may cause pool uplift and damage the pool.

IV. Photographs

Effective for all claims filed 30 days from the date of this Mortgagee Letter, preservation and protection actions should be documented using digital photography. Rather than establishing a maximum allowable number of photographs and reimbursing Mortgagees on a per picture basis, HUD will provide a flat fee reimbursement of $30.00 for photographs, regardless of the number of pictures required. The photographic fee is included in the lock change/securing maximum allowable cost per property.

Photographs are required to document inspections, initial property condition, one-time securing service, boarding, yard maintenance, debris removal, winterization and personal property/debris removal as part of an eviction. The Mortgagee should photograph the exterior and interior of the property at the time of the Initial Inspection. All photographs should be dated, labeled and maintained in the Mortgagee’s claim review file and made available to HUD or its M&M contractor upon request. If photographs cannot be produced at the time of the claim review, the following will be disallowed:

a. All unsupported expenses

b. All expenses claimed for personal property/debris removal including evictions

V. Lock Change/Securing Service Costs

The reimbursable cost limits for Lock Change/Securing Service are as follows:

 

Lock Change/Securing Service Cost Schedule (NATIONWIDE)
Secure (Per Lock) $40
Secure Pool (Sq. Ft. Amt.) $2.05
Maximum Secure Pool $1050
Secure Hot Tub, Jacuzzi, Spa $55
Maximum Allowable for Lock Change/Securing $350

 

 

 

 

 

 

 

Local Variations from General Requirements for Securing Pools and Spas

ATLANTA Homeownership Center

Indiana

Use 1”, 2”, or 3” x 4” hex netting to cover pool. Seams should be covered with 1” wood strips for securing.SANTA ANA Homeownership CenterArizona/California/Hawaii/Nevada/Other Pacific Islands

Do not cover pools. However, pools should be drained and secured according to the guidelines set forth below.

 

 

 

Add cross bars every 16” on center to framing for added strength and support.

Editor’s Note:

The majority of REO Securing orders use HUD Guidelines.

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Property Inspection Service Requirements

January 31, 2009 · Filed Under HUD Regulations · Comment 
ATTACHMENT 2 Property Inspection Service Requirements and Cost Schedule (2008 Update)

 

Vacant and abandoned properties are potential targets for vandalism, weather damage and criminal activity. Additionally, they present an attractive nuisance that poses a hazard to children and others who may be injured. To ensure the preservation of the mortgage collateral and lessen the negative community impact of vacant properties, Mortgagees must conduct regular property inspections. Mortgagees may include the cost of these inspections in a claim for insurance benefits within the limits described in this section. Claim amounts paid for inspections are not included in the maximum cost limit per property.

Mortgagee must make an effort to determine occupancy before incurring the expense of a property inspection. The industry has developed a variety of tools, including the use of “door-hangers” and “mailers” to assist a Mortgagee in determining if a property is occupied or vacant. These tools ask the occupant to contact the Mortgagee to confirm the occupancy status of the property. The failure of the occupant to respond within the prescribed time period indicates that a prompt visual inspection of the property is required.

To avoid unnecessary inspections, occupants should be allowed a minimum of five business days from the date of the mailing or other contact to respond to the mortgagee. Reimbursement for an occupancy inspection may be denied by the Department if sufficient time is not provided for occupant response.

There are five types of property inspections: Occupancy Inspections, Initial Vacant Property Inspections, Vacant Property Inspections, Voluntary Pre-Conveyance Inspections and Eviction Inspections. Form HUD-9519-A, “Property Inspection Report” (now PDF fill-able) may be used to document and support each claimed inspection/expense. Before and after photographs are required on all property visits where any claimable property preservation action is taken. Also, all inspections are to be documented. Photographs and inspection reports should be maintained in the Mortgagee’s claim review file and must be provided to HUD or its contractors upon request. Information collection activity for inspections and photographs is covered under the Office of Management and Budget (OMB) Control Number 2502-0306 and documentation related to claim submission and claim file retention are covered under OMB Control Number 2502-0429.

Mortgagees may be surcharged for the cost of property damage if inspection reports are inaccurate, incomplete, untimely or insufficient in determining a verifiable timeline as to when damage occurred.

I. Occupancy Inspections

When a mortgage is in default, a payment is not received within 45 calendar days of the due date, and efforts to reach the Mortgagor by telephone or correspondence within that period have proven unsuccessful, the Mortgagee must make an Occupancy Inspection in accordance with the guidelines herein to determine if the property is vacant or abandoned (24 CFR 203-377).

The Occupancy Inspection may determine that the property is (i) occupied (ii) vacant but obviously being maintained (e.g., doors and windows secured, lawn is cut, For Sale sign on the property, etc.) or (iii) vacant and abandoned. Regardless of the result of the occupancy inspection, so long as the Mortgagor continues to be in default on the mortgage, the Mortgagee should endeavor to establish and/or maintain monthly telephone contact with the Mortgagor. If there is no documented telephone contact with the Mortgagor for any period of 25-35 days from the last contact or the last Occupancy Inspection, the Mortgagee shall conduct another Occupancy Inspection.

If the Occupancy Inspection establishes that the property is vacant but obviously being maintained, on-going Occupancy Inspections should be conducted every 25-35 days following the previous documented telephone contact with the Mortgagor or previous Occupancy Inspection so long as the mortgage remains in default. Documentation should be provided as to how the property is being maintained to justify that the property is occupied by the mortgagor.

If the Occupancy Inspection establishes that the property is vacant and abandoned, the Mortgagee should document thoroughly the property damage, initiate preservation and protection actions and the related measures required to secure the property beginning with an Initial Inspection.

A. Inspection without Monetary Default

Mortgagees should also perform a visual inspection of a property where there is reason to believe that the property has become vacant or abandoned, even if the property is not in monetary default. Examples of information that might indicate vacancy or abandonment include, but are not limited to (i) written notice of code violation, municipal lien, condemnation or demolition (ii) disconnection of utilities or (iii) cancellation of homeowner insurance. Mortgagee should verify occupancy through either (i) direct Mortgagor contact by telephone or (ii) Occupancy Inspection. Mortgagees should maintain file documentation supporting the need for and results of the inspections on properties where there is no monetary default.

B. Inspection During Bankruptcy

HUD regulations provide that if the mortgage is in default and the Mortgagee is unsuccessful in contacting the Mortgagor by telephone, the Mortgagee should perform a visual inspection of the property to determine whether it is vacant, and if so, protect and preserve the property. In cases where the Mortgagor has filed bankruptcy, and the Mortgagee is prohibited from contacting the Mortgagor, supporting documentation must be maintained in the claim review file to confirm this prohibition.

In such cases, Mortgagees will not be required to conduct interior inspections (or perform other preservation and protection actions), until such time as there is no longer a stay (prohibition) in place barring the Mortgagee from collection activities, or the bankruptcy court has granted approval for the Mortgagee to take any required preservation and protection actions.

The Mortgagee should take all actions permitted under bankruptcy law and should diligently pursue seeking any necessary permission from the bankruptcy court to inspect and/or protect and preserve the property where no payments are being made and/or there is a suspicion of abandonment. HUD will reimburse for such actions, where: 1) the Mortgagee learns that the property is or may be vacant, 2) the Mortgagor is not performing as required by the bankruptcy court, or 3) bankruptcy is no longer a bar to foreclosure, inspection or preservation and protection, which includes but is not limited to, termination of the automatic stay or the trustee has formally abandoned the property or permission is granted.

C. Report Contents

The Occupancy Inspection report should, at a minimum include the following:

• Date of the occupancy inspection.

• Identity of the inspector.

• Is the property occupied? If so, how was this determined?

• Identity and status (i.e., Mortgagor, renter, etc.) of occupants, if ascertainable

• A valid telephone number for the occupant, if ascertainable.

• Is the house locked or secured?

• Is there a For Sale sign on the property? If so, provide the Broker name and contact number.

• Is the grass mowed and/or shrubs trimmed?

• Is there any damage apparent from the exterior? Describe.

• Is any exterior glass broken? Describe.

• Are any doors or windows boarded? Describe.

• Does the house appear to contain personal property and/or debris?

If the Inspection indicates that a property is occupied, the Mortgagee or its agent should attempt to verify the identity of the occupant(s). If it is not clear whether a property is occupied, the Mortgagee should review such occupancy indicators such as (i) checking utility meters to determine if they are on (ii) contacting the listing broker if there is a for sale or rent sign on the property (iii) observing general maintenance and (iv) speaking to neighbors. A drive-by inspection alone is not acceptable evidence of occupancy or vacancy. Documentation to support the occupancy determination must be provided along with a copy of the inspection report.

II. Initial Vacant Property Inspection

An Initial Vacant Property Inspection, also called the “Initial Inspection”, is performed on the date a Mortgagee first takes physical possession of a property by securing it. Securing should take place as soon as reasonably practical, but no more than five calendar days following the determination that the property is vacant and/or abandoned post foreclosure or 15 business days following the determination that the property is vacant and/or abandoned, pre-foreclosure. If the Initial Inspection identifies an imminent source of property damage or a health and safety hazard (e.g., flowing water, collapsed roof, gas leak), the Mortgagee must take immediate action to remediate the damage/hazard. Where emergency permission could not be obtained in advance of the repairs, the Mortgagee shall submit an over-allowable request immediately following completion of the work and substantiate the emergency nature of the repairs.

In some instances the Initial Inspection will take place on the same date as the Occupancy Inspection. In these cases, the Mortgagee may only claim the cost of the Initial Inspection. The Initial Inspection report establishes the condition in which the Mortgagee first found the property, and may be of critical importance in distinguishing between Mortgagor and Mortgagee neglect, following conveyance.

A. Report Contents

Mortgagees should be diligent in documenting property condition through written descriptions and photographs during each inspection but especially at the Initial Inspection. The Initial Inspection report should describe (i) the condition of the property when the Mortgagee or its agent arrived; (ii) actions taken by the Mortgagee to preserve and protect the property during the initial securing; and (iii) required actions to be performed. At a minimum the Initial Inspection report should include:

• Date of the initial vacant property inspection.

• Identity of the inspector.

• Date of last occupancy inspection.

• Is the house locked or secured?

• Is the grass mowed and/or shrubs trimmed?

• Is there any apparent damage? Describe.

• Is any exterior glass broken? Describe.

• Are there any apparent roof leaks? Describe.

• Does the house contain personal property and/or debris? List all and document with photographs.

• Are any doors or windows boarded? Describe.

• Is the house winterized? If not, when and where applicable, initiate winterization service (see Attachment 7).

• Are there any repairs necessary to adequately preserve and protect the property? Describe.

• Which appliances are present?

• Describe any P&P actions completed during initial securing.

• Describe any additional P&P actions required.

B. Posting Signage

During the Initial Inspection, Mortgagees should post a small sign no larger than 8.5” x 11” on an interior window or the front door of a property. The sign should not include information about pending foreclosure or the M&M Contractor, but should contain the Mortgagee’s toll free telephone number and/or the telephone number of the Mortgagee’s local representative to contact in case of emergency. There is no allowable cost to post signs.

III. On-Going Vacant Property Inspections

On-going Vacant Property Inspections are performed after the Initial Inspection and securing have occurred. The Mortgagee should inspect a vacant or abandoned property every 25-35 days following an Initial Inspection, or more frequently as prescribed in local variations (see Local Variation from General Requirements, page 15), to determine whether any subsequent or additional preservation and protection action is necessary. Vacant Property Inspections should include both interior and exterior assessments of property condition.

At a minimum the Vacant Property Inspection report should include the items listed in 2A above.

IV. Voluntary Pre-Conveyance Inspections

A number of Mortgagees have requested the opportunity to conduct a joint property inspection with M&M contractors prior to conveyance. HUD encourages, but does not require, Mortgagees or M&M contractors to conduct Pre-Conveyance Inspections. Pre-Conveyance Inspections may significantly reduce post-conveyance disputes between Mortgagees and M&M contractors by allowing each party to agree that properties are in conveyance condition or identify additional requirements that should be met prior to conveyance. This is especially beneficial when properties will be conveyed damaged, as it will allow the Mortgagee to demonstrate that the damage is not surchargeable, thereby reducing the likelihood of demand letters, re-conveyance, or other sanctions. Pre-Conveyance Inspections should be scheduled no earlier than five calendar days prior to the scheduled conveyance date. HUD will allow Mortgagees to claim the cost of one additional inspection, claimed at the rate of a Vacant Property Inspection, provided the Pre-Conveyance Inspection does not coincide with the regular inspection schedule.

Mortgagees should contact the appropriate M&M contractor directly for further information on procedures regarding voluntary Pre-Conveyance Inspections in their contract areas. The M&M contractor, using HUD’s inspection form, will perform voluntary Pre-Conveyance Inspections.

At a minimum the Pre-Conveyance Inspection report should include the items listed in 2A above.

V. Pre-Eviction Inspections

Mortgagees are required to perform a Pre-Eviction Inspection within 72 hours of a scheduled eviction, whenever there is any doubt that a property is still occupied. The Pre-Eviction Inspection will be reimbursable as an Occupancy Inspection. When an Occupancy Inspection is already scheduled for the same week as the eviction, only one inspection fee will be reimbursed. Mortgagees are reminded to confirm the scheduled eviction the day before or morning of the scheduled eviction to be eligible to claim one hour of labor per person for a canceled or rescheduled eviction. Mortgagees should document in the claim review file, the name of the person or place called, the date and time of the call and results of the call.

At a minimum the Pre-Eviction Inspection report should include the items included in the Occupancy Inspection as listed in 1C above.

VI. Inspection Cost and Frequency

The reimbursable cost limits for Inspections are as follows:

 

Property Inspection Cost Schedule (NATIONWIDE)
Occupancy Inspections (Exterior) $20
Occupancy Inspection (Addt’l Units) $10
Initial Vacant Property Inspection (Interior) $35
Initial Vacant Property Inspection (Addt’l Units) $30
Vacant Property Inspection (On-going) $30
Vacant Property Inspection (On-going/Addt’l Units) $25

 

The cost of inspections is not inclued in the overall mazimum. Generally, not more than 15 inspections per calendar year may be claimed unless indicated otherwise under local variations. In cases of a declared natural disaster see Mortgagee Letter 2005-41.

Local Variations from General Requirements

 

ATLANTA Homeownership Center

Chicago, Illinois

Properties should be inspected twice per week, year-round in the following zip codes (hot-zones):

60609 60615 60621 60627 60628 60635 60636

60639 60641 60644 60647 60651 60653

SANTA ANA Homeownership CenterAlaska During all inspections, inspectors should verify that all properties are winterized and if not notify the servicer to arrange for winterization immediately as Alaska properties should be winterized year-round.

Los Angeles, California

Properties should be inspected twice per week, year-round in the following zip codes:

90001 90002 90003 90220 90221

 

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Maximum Allowable Cost Per Property

January 31, 2009 · Filed Under HUD Regulations · Comment 

Attachment 1 Maximum Allowable Cost Per Property (2008 Update)

 

Maximum Allowable Cost Per Property
State 1 Unit 2Units 3Units 4 Units
Alabama $800 $950 $1100 $1250
Alaska $1400 $1550 $1700 $1850
Arizona $1100 $1250 $1400 $1550
Arkansas $1100 $1250 $1400 $1550
California $1100 $1250 $1400 $1550
Caribbean $1100 $1250 $1400 $1550
Colorado $1100 $1250 $1400 $1550
Connecticut $1800 $1950 $2100 $2250
Delaware $1400 $1550 $1700 $1850
District of Columbia $1400 $1550 $1700 $1850
Florida $1100 $1250 $1400 $1550
Georgia $1100 $1250 $1400 $1550
Idaho $1100 $1250 $1400 $1550
Illinois $1400 $1550 $1700 $1850
Indiana $1100 $1250 $1400 $1550
Iowa $1300 $1450 $1600 $1750
Kansas $950 $1100 $1250 $1400
Kentucky $1100 $1250 $1400 $1550
Louisiana $1100 $1250 $1400 $1550
Maine $1650 $1800 $1950 $2100
Maryland $1550 $1700 $1850 $2000
Massachusetts $1650 $1800 $1950 $2100
Michigan $1400 $1550 $1700 $1850
Minnesota $1400 $1550 $1700 $1850
Mississippi $1100 $1250 $1400 $1550
Missouri $950 $1100 $1250 $1400
Montana $1100 $1250 $1400 $1550
Nebraska $1500 $1650 $1800 $1950
Nevada $1100 $1250 $1400 $1550
New Hampshire $1650 $1800 $1950 $2100
New Jersey $1400 $1550 $1700 $1850
New Mexico $1100 $1250 $1400 $1550
New York $1400 $1550 $1700 $1850
North Carolina $1100 $1250 $1400 $1550
North Dakota $1100 $1250 $1400 $1550
Ohio $1400 $1550 $1700 $1850
Oklahoma $1100 $1250 $1400 $1550
Oregon $1100 $1250 $1400 $1550
Pacific / Hawaii $1100 $1250 $1400 $1550
Pennsylvania $1400 $1550 $1700 $1850
Rhode Island $1650 $1800 $1950 $2100
South Carolina $1100 $1250 $1400 $1550
South Dakota $1100 $1250 $1400 $1550
Tennessee $1100 $1250 $1400 $1550
Texas $1100 $1250 $1400 $1550
Utah $1100 $1250 $1400 $1550
Vermont $1650 $1800 $1950 $2100
Virginia $1400 $1550 $1700 $1850
Washington $1100 $1250 $1400 $1550
West Virginia $1100 $1250 $1400 $1550
Wisconsin $1400 $1550 $1700 $1850
Wyoming $1100 $1250 $1400 $1550

Note: If a property is located in a state where winterization is required, and the property has hot water heat, add $250/unit.

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General Requirements

January 31, 2009 · Filed Under HUD Regulations · Comment 

GENERAL REQUIREMENTS FOR PRESERVATION AND PROTECTION OF

PROPERTIES SECURING FHA INSURED MORTGAGES

Mortgagee Responsibility

Mortgagees should preserve and protect properties securing FHA-insured mortgages in accordance with the requirements of 24 CFR 203.377, which provides that “the mortgagee shall take reasonable action to protect and preserve such security property when it is determined, or should have been determined, to be vacant or abandoned until its conveyance to the Secretary, if such action does not constitute an illegal trespass”. In the event that a property securing an FHA mortgage is conveyed damaged to the Secretary without prior approval, the Department may, at its discretion, require the property to be re-conveyed or may require a reduction to the claim proceeds for the greater of the insurance recovery or HUD’s estimate of the cost of repairing the damage.

Generally, the more diligent a Mortgagee is in completing timely foreclosure and conveying a property, the lower the expenditure for preservation and protection will be. A Mortgagee may use any individual or firm to perform preservation and protection services on properties securing FHA-insured mortgages; however, the Mortgagee remains fully responsible to HUD for its actions and the actions of its agents. As a cautionary note, the Department reminds Mortgagees that in addition to the surcharges discussed in this Mortgagee Letter, HUD may pursue enforcement action, including debarment, civil money penalties and actions under the Program Fraud Civil Remedies Act.

I. Unit Pricing

HUD has established an overall maximum cost limit (see Attachment 1) that establishes the maximum amount that will be reimbursed for all preservation and protection expenses on an individual property. Additionally, HUD has established maximum allowable costs for individual types of expenses such as lawn mowing and lock-changes. Any expenses exceeding the cost allowable or exceeding the overall maximum cost limit per property are not considered approved by HUD unless a Mortgagee has obtained prior written approval from HUD’s designated Management and Marketing Contractor (“M&M”). HUD will require the repayment of claimed reimbursement amounts if it determines that:

• Amounts paid for reimbursement were unnecessary and excessive;

• The Mortgagee obtained bids that were not independent and competitive;

• Services claimed were not performed or not performed properly; or

• The amount claimed exceeded the cost allowable or overall maximum allowable limit and the Mortgagee did not obtain advance written approval.

To facilitate the timely securing of abandoned properties, HUD has pre-authorized Mortgagees to spend up to a set amount per property for expenses directly related to initial securing. This maximum securing limit is included within the overall maximum allowable limit as further described in Attachment 3.

Some types of expenses such as the cost of boarding, inspections, securing swimming pools, sump pumps, demolition, vacant/abandoned property registration fees and utilities are not included in the maximum cost limit per property. These services, with the exception of vacant/abandoned property registration fees, will be reimbursed, provided costs stay within the cost allowable listed in Attachments 2, 3, 4, and 7. Property registrations fees are set by the local jurisdictions.

A Mortgagee should support all expenditures, including costs associated with the aforementioned exceptions, with receipts, photographs or other documents to support the expenditure. For the purpose of claiming reimbursement, HUD considers actions identified in this Mortgagee Letter to be pre-approved, provided these actions meet all applicable cost limits and are performed in accordance with the work requirements identified in this Mortgagee Letter.

II. Claim Submission and Documentation

HUD will reimburse Mortgagees for preservation and protection actions in accordance with the provisions of this Mortgagee Letter upon receipt of form HUD-27011 Parts A&B via Electronic Data Interchange (EDI) or via the FHA Connection. For instructions on claim processing and document submission see HUD Handbook 4330.4, rev.-1, change 1, which is available on “www.hudclips.org”. Documentation to support each claimed expense must be maintained in the Mortgagee’s case file and must be provided to HUD or its M&M contractor upon request. The documentation should support the expenditures and illustrate that the Mortgagee took appropriate action to preserve and protect the property from the time of default to conveyance. Examples of appropriate documentation include copies of all inspections, photographs, receipts, applicable law or ordinance with respect to vacant property registration and over-allowable approval requests.

If the property suffered surchargable damage and the mortgagee has received permission to convey the property un-repaired, Mortgagees shall note “yes” on the Part A form, Item 24, “Is the property conveyed damaged?” Where item 24 is marked “yes”, Mortgagees must also include the date that HUD gave permission to convey damaged in item 25 and also include greater of the insurance recovery or HUD’s estimate of the cost of repairs in item 27.

Where the damage to the property is non-surchargable, item 25 should be marked “no”, and the Mortgagee shall include an explanation of the non-surchargeable damage in the Mortgagee’s Comment Section of Part A. See additional guidance in HUD Handbook 4330.4, rev.-1, change 1, which is available on www.hudclips.org.

Mortgagees are prohibited from performing or claiming preservation and protection services after the deed has been recorded. However, payment of certain utility bills may be considered an exception to this guideline (see Attachment 7).

III. Conveyance of Damaged Properties

A. Surchargeable Damage

All properties conveyed to HUD should be undamaged by fire, flood, earthquake, tornado, hurricane, or boiler explosion (for condominiums) or damage resulting from Mortgagee neglect. Costs resulting from these types of damage are considered surchargeable and are excluded from the claim for insurance benefits. The Mortgagee must repair the damage or obtain prior written permission from HUD to convey a property with surchargeable damage.

1. Damage Due to Failure to Preserve and Protect (Mortgagee Neglect)

HUD will hold a Mortgagee liable if its failure to take reasonable action to preserve and protect property that it determined or should have been determined to be vacant or abandoned results in property damage or destruction. Examples of Mortgagee neglect include but are not limited to a Mortgagee’s failure to:

a. Initiate foreclosure within the required timeframe;

b. Obtain timely and accurate property inspections;

c. Promptly secure and continue to protect all abandoned properties; or

d. Promptly notify HUD’s M&M contractor of receipt of code violations and demolition notices and take appropriate action.

2. Limitation on Fire Damage

Mortgagees are liable for the full cost to repair fire damage whether or not the damage was the result of Mortgagee neglect. However, if the property is damaged by fire and is not covered by fire insurance or the amount of insurance coverage was inadequate to fully repair the damage, the Mortgagee’s liability may be limited to the amount of the insurance recovery received by the Mortgagee, if any, provided that the Mortgagee certifies that all of the circumstances specified in 24 CFR 203.379(a)(2) exist.

3. Damage Due to Mold

A property may be conveyed with mold if the mold was not caused by a surchargeable condition, including Mortgagee neglect, fire, flood, earthquake, hurricane, or for condominiums, by boiler explosion. However, even if the mold was not caused by a surchargeable condition, the failure by the Mortgagee to take reasonable action to remediate the cause of the mold and complete any other required preservation and protection actions related to minimizing further mold damage prior to conveyance of the property, qualifies as Mortgagee neglect and, is surchargeable.

4. Requesting Approval to Convey with Surchargeable Damage

Mortgagees may not convey properties that have surchargeable damage unless the Department provides prior written approval. Until further notice, such approval shall be provided by the appropriate M&M Contractor having jurisdiction over the subject property. (24 CFR 203.379 (b). Such requests for approval should be sent by facsimile or email to the appropriate M&M contractor. The M&M contractor should review and respond in writing to the request either by fax or e-mail no later than 10 business days following receipt. HUD, at its sole discretion, may require that the Mortgagee repair the damage prior to conveyance or may elect to accept conveyance of the property in damaged condition and require that the claim for insurance benefits be reduced by the greater of the insurance recovery or by the government’s estimate of the cost of repairs. If HUD requires the Mortgagee to repair property damages before conveyance, HUD will not reimburse the cost of these repairs.

If the claim is adjusted for damages, the Mortgagee should mark item 24 of Part A, form HUD 27011, “yes” and complete items 26 and 27. Please note that HUD’s claim system will suspend the claim, delaying payment, if the mortgagee has noted “yes” in item 24 without providing the date of approval in item 26 and the amount of the claim reduction in item 27.

As a matter of administrative practice, HUD generally will not deny conveyance of properties if the government’s estimate of the cost to repair the surchargable damage is equal to or less than $2,500.

5. Surchargeable Damage Conveyed Without Approval

When a property with surchargeable damage is conveyed without prior approval, HUD may, at its sole discretion, either re-convey the property to the Mortgagee or seek reimbursement from the Mortgagee for HUD’s estimate of the cost of the repairs (24 CFR 203.379(c)). If HUD’s estimate is equal to or less than $2,500, HUD will generally reduce the claim payment by the cost to repair the property damage rather than exercise its right to re-convey. Only a HUD Government Technical Representative (GTR) has authority to approve a re-conveyance demand. The M&M contractor will provide a preliminary e-mail notification that a property may be re-conveyed as a result of property damage within 30 days of the date of conveyance.

The e-mail will identify the reason(s) for the proposed re-conveyance, a cost estimate of the property damage and provide the Mortgagee an opportunity to respond with additional information. If additional information is received from the Mortgagee within 10 business days from the date of the e-mail, it will be included in the package provided to the GTR for a decision. The GTR will, no later than 60 calendar days of the date of conveyance, make the final decision to take no action, issue a Notice to Re-convey or issue a Demand Letter.

The process for appealing the decision of the GTR is described in Attachment 10, Mortgagee Appeal Process.

B. Properties Conveyed with Non-Surchargeable Damage

If a property has sustained non-surchargeable damage, the Mortgagee is not required to obtain pre-approval before conveyance. However, the Mortgagee must include a description of the damage in the “Mortgagee’s Comments” section of form HUD-27011, Part A. Item 24 of Part A, “Is the property conveyed damaged?” should be marked “no”. (Note: marking “yes” in item 24, triggers HUD’s claim system to look in item 26 for the date of HUD’s approval to convey the property damaged and to item 27 for the amount that the claim is to be reduced. Mortgagees must indicate “yes” for surchargable damage and “no” for non-surchargable damage.) Inspection reports and photo documentation should support the damage assessed.

Additionally, the Mortgagee must include, along with the copy of the claim sent to HUD’s M&M Contractor, documentation supporting the preservation and protection work performed on the property. At a minimum, this documentation should include evidence of the date of vacancy, validation of the property condition at vacancy and a chronology of actions performed by the Mortgagee to preserve and protect the property.

If a Mortgagee fails to provide the required explanation in the Mortgagee’s Comments section of Part A or fails to provide the required documentation of P&P actions performed, required documentation that clearly identifies the date of vacancy and documentation to clearly identify property condition, the M&M Contractor will notify the Mortgagee in writing that the Mortgagee has 10 business days to provide the information. If no documentation or inadequate documentation is received from the Mortgagee the damage will be considered surchargeable.

V. Permits and Vacant Property Registration

Each Mortgagee and/or field service provider should be familiar with the state and/or jurisdictional requirements related to city ordinances (such as vacant/abandoned property registration) or local law. The fee associated with registration of a vacant/abandoned property is reimbursable and must be included on your claim. Documentation to support such a claim for registration fees must be included in the claim review file along a receipt for payment. If and when a building permit is required by local law prior to performing preservation and protection services, then the Mortgagee must obtain the permit. If code violations are related to health and safety and/or costs to resolve the violation is less than $250.00 the mortgagee shall complete the work without prior approval from the M&M unless the repair causes mortgagee to exceed the overall cap for preservation and protection. Otherwise, the mortgagee shall contact the M&M contractor. If vacant property registration fee is less than $250.00 the mortgagee shall pay the fee without prior approval from the M&M otherwise the mortgagee shall contact the M&M contractor. The M&M contractor should intercede with the community on municipal liens (i.e., on properties such as those being placed in the ACA program) or approve the repairs.

VI. Quality Control

In accordance with 24 CFR, Part 202.5(h) all FHA approved Servicers are required to implement a written quality control plan covering all aspects of loan origination and servicing and to conduct regular quality assurance reviews in accordance with the plan. Servicing quality control plans should incorporate quality assurance reviews of preservation and protection responsibilities including a review of work performed by third party field service contractors and other vendors. A Servicer is required to provide a copy of its quality control plan as well as results of quality assurance reviews to HUD staff either during regularly scheduled servicing and post claim audit reviews or upon request. All information collections in quality control are covered under the Office of Management and Budget (OMB) Control Number 2502-0005.

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