Construction or Rehabilitation Period Sample Clauses

Construction or Rehabilitation Period. (a) Inspections. HUD will inspect project records periodically to determine compliance with Xxxxx-Xxxxx Act requirements, if applicable. Projects which involve HUD mortgage insurance, or other financing requiring HUD inspection during construc- tion or rehabilitation, are subject to the applicable inspection requirements. HUD may conduct a review to determine contractor compliance with equal opportunity requirements at any time.

Construction or Rehabilitation Period a. Inspections. Inspections will be limited to no more than 1 per month. Upon written notification from the Grantee that the property or individual units are in compliance with Physical Condition Standards, HUD will order an inspection of the units. If partial releases have been approved, the signature block for the first partial release shall be executed in accordance with 1b above. (The first integral release will be provided to the Grantee at closing, if any units are determined to meet HUD standards at the time of sale.) The form will reflect the unit numbers and unit types. The chargeable rents will be the rents reflected in an Exhibit to the Housing Assistance Payments (HAP) Contract(s) signed at closing. The Grantee may begin billing for HAP payments upon receipt of the partial release from HUD for occupied units. Payments may be retroactive to the effective date on the release for occupied units. The effective date for each release will be the inspection date for the last unit added to the partial release. No retroactive payments will be made on vacant units. The Grantee will be able to bill on a vacant unit after it has been added to an integral release and becomes occupied. The Grantee may not bill for units that have not been inspected by HUD and approved for billing under the HAP. At no time may payments be made for units that do not meet HUD’s Physical Condition Standard. b. Increases in Contract Rents or Utility Allowance. Increases in contract rents or utility allowances during the construction or rehabilitation period are permitted only with HUD approval consistent with HUD regulations.