Current through Register Vol. 50, No. 25, December 15, 2023
A.
General Requirements. Contractors and subcontractors:
(1) Shall be licensed by the Maryland Home
Improvement Commission or meet other State and local licensing requirements
necessary to do the rehabilitation.
(2) Shall be qualified to do business in
Maryland.
(3) Shall be able to
demonstrate the capability to complete the rehabilitation as determined by the
Department as evidenced by previous professional rehabilitation
experience.
(4) May not be under a
suspension or debarment order for any of the Department's programs pursuant to
any action under COMAR 05.01.05.
(5) Shall agree in the contract to:
(a) Perform all work in conformance with the
contract and all applicable laws, local codes, and Departmental rehabilitation
standards in a competent, workman-like manner, equal to the standards of the
industry. Failure of the work write-up to include any work required by local
codes or standards does not relieve the contractor of the responsibility of
complying with local codes and standards. Payment for any additional cost to
complete work not included in the approved work write-up is the obligation of
the borrower. A borrower may apply to the local administrator for a loan
increase to cover some or all of the increased cost. Any loan increase shall be
subject to approval or disapproval in accordance with the provisions of these
Regulations . The Department has no obligation under the contract to pay for
increased costs.
(b) Comply with
all applicable laws, ordinances, and regulations relating to the protection and
safety of persons and property.
(c)
Furnish all labor, materials, and equipment, and obtain all licenses, permits,
insurance coverage, and workers' compensation as may be required to complete
the rehabilitation.
(d) Not assign
the contract without prior written consent of the owner and approval by the
local administrator.
(e) In
addition to all remedies and guarantees provided by law, make all necessary
repairs, replacements, and corrections of any nature or description, interior
or exterior, structural or nonstructural, as become necessary by reason of
faulty workmanship or material, which appear within a period of 1 year from the
date the notice of completion is filed, at its sole cost and expense, provided,
however, that if any longer guarantee period is specified for any particular
materials or workmanship under the plans and specifications, or under any
subcontract, or in connection with any manufactured unit which is installed in
the structure, or under the laws of the State, the longer period
governs.
(f) Agree to complete all
specifications of the work write-up within the completion date as specified in
the contract.
(6) Shall
indemnify and hold the Department and any local administrator harmless from all
liability and loss because of injury to or death of any individual or damage to
any property which may occur or be alleged to occur during performance of the
contract as a direct or indirect result of any act or omission, whether
intentional, negligent or otherwise, by the contractor, subcontractors, or
their agents, servants, and employees. The contractor shall defend all suits or
claims involving those in this subsection at the contractor's sole cost and
expense.
B. Minority
Contractors. The Department encourages the use of minority contractors in all
jurisdictions for all projects, and requires compliance with the Department's
Minority Business Participation Plan. Copies of the Department's plan shall be
made available to sponsors and contractors.
C. Identity of Interest.
(1) Sponsors or nonprofit sponsors may act as
general contractors only with the prior written approval of the Department or
the local administrator. Application forms shall be provided upon request and
shall be submitted and approved before submission of the proposal. Approval is
conditioned on an assurance of completion acceptable to the
Department.
(2) An owner-occupant
may not act as a general contractor.
D. Assurance of Completion. The Department or
the local administrator, at its discretion, may require:
(1) Performance and payment bonds;
(2) A letter of credit in the amount of 25
percent of the rehabilitation contract cost and an assurance of completion
agreement; or
(3) Other assurances
of completion acceptable to the Department.
E. It shall be agreed by both the contractor
and the owner that all communications which bear upon the content or
performance of the contract shall be in writing.
F. Contractors performing work covered by a
rehabilitation loan may not be on the unacceptable risk determination list of
the Department of Housing and Urban Development or the United States Department
of Agriculture Rural Development, and any previous experience with the Program
shall have been satisfactory. Contractors that do not perform up to program
requirements may be suspended or debarred under COMAR 05.01.05.
Regulations .13 amended
effective February 11, 1985 (12:3 Md. R. 243)
Regulations .13
adopted effective July 22, 1991 (18:14 Md. R. 1609)
Regulations .13
amended effective November 9, 1992 (19:22 Md. R. 1986)
