Rules & Regulations of the State of Tennessee
Title 0770 - Housing Development
Chapter 0770-03-02 - Development and Operation
Section 0770-03-02-.06 - COMPLETION OF REHABILITATION

(a) The Owner must notify the Agency when the work is completed and submit to the Agency the evidence of completion and certifications described in Rule 0770-3-2-.06(2) and (3).

(a) Completion of the unit(s) must be evidenced by furnishing the Agency with the following:

(a) The Owner must provide the Agency with a certification of the costs incurred for the rehabilitation and any temporary relocation as well as the interest rate and term (if the total cost of rehabilitation under the Agreement is less than $15,000) of any rehabilitation loan. The Owner must certify that these are the actual costs, interest rate, and term (where applicable). The Agency must review for completeness and accuracy and accept these certifications subject to the right of post audit. The Agency must then establish the Contract Rents which will be subject to reduction based on a post audit.

(a) Within ten working days of the receipt of the evidence of completion, the Agency must review the evidence of completion for compliance with paragraph (b) of this section.

(b) Within the same time period, an Agency representative must inspect the unit(s) to be assisted to determine that the unit(s) has been completed in accordance with the Agreement and meets the Housing Quality Standards or other standards approved by HUD for the Program. If the inspection discloses defects or deficiencies, the inspector must report these in detail.

(a) If the Agency determines from the review and inspection that the unit(s) has been completed in accordance with the Agreement, the Unit(s) will be accepted.

(b) If there are any items of delayed completion which are minor items or which are incomplete because of weather conditions, and in any case which do not preclude or affect occupancy, and all other requirements of the Agreement have been met, the unit(s) may be accepted. An escrow fund determined by the Agency to be sufficient to assure completion for items of delayed completion will be required, as well as a written agreement between the Agency and the Owner, to be included as an exhibit to the Contract, specifying the schedule for completion. If the items are not completed within the agreed time period, the Agency may terminate the Contract or exercise other rights under the Contract.

(c) If other deficiencies exist, the Agency must determine whether and to what extend the deficiencies are correctable, and whether the Contract Rents should be reduced. The Owner must be notified of the Agency's decision. If the corrections required by the Agency are possible, the Agency and the Owner must enter into an agreement for the correction of the deficiencies within a specified time. If the deficiencies are corrected within the agreed period of time, the Agency will accept the unit(s).

(d) Otherwise, the unit(s) may not be accepted, and the Owner must be notified with a statement of the reasons for nonacceptance.