The Agency will be named as co-obligee in the performance and payment bonds unless prohibited by state law. The United States (including the Agency) will incur no liability related in any way to a performance or payment bond provided in connection with a construction contract.

Fees charged for noncorporate sureties may not exceed fees charged by corporate sureties on bonds of equal amount and, in no case, may surety be provided by the applicant or any person or organization with an identity of interest in the applicant's operation. The individual(s) will pledge such liquid assets in an amount equal to the contract amount. The State Director must determine that an individual or individuals proposed as sureties must have cash or other liquid assets easily convertible to cash in an amount at least equal to 25 percent more than the contract amount in order to be acceptable. Noncorporate sureties are not recommended and the State Director will be responsible for determining the acceptability of the individual or individuals proposed as sureties on the bonds. Unless noncorporate surety is provided, the surety bonds may only be obtained from a corporate bonding company listed on the current Department of the Treasury Circular 570 (published annually in the Federal Register), as holding a certificate of authority as an acceptable surety on Federal bonds and as legally doing business in the State where the land is located. Exhibits F and G of this subpart as revised by OGC if necessary to comply with local or state statutory requirements will be used as the forms of payment bond and performance bond to be provided. (ii ) If surety bonds are required the construction contract must indicate that the contractor will furnish properly executed surety bonds prior to the start of any work. The borrower should be advised as to the purpose of each form and at what period during construction each form will be used. Copies of RD forms that will be used during the period of construction should be given to the borrower. The appropriate procedure for performing development should be explained to the borrower. Changes must be approved and processed in accordance with § 1924.10 of this subpart. If any changes in the plans and specifications are proposed, they should be within the general scope of the work as originally planned. Items and quantities of any materials the borrower has agreed to furnish will be checked and dates by which each item of development should be started will be checked in order that the work may be completed on schedule. Adequacy of the drawings and specifications as well as the estimates will be checked to make sure the work can be completed within the time limits previously agreed upon and with available funds.

For the sole benefit of the Agency, prior to beginning development work, the County Supervisor or District Director will review planned development with the borrower. (h ) Review prior to performing development work. Purposes for which claims may be approved. Handling complaints involving dwellings constructed by the self-help method.Įligibility for compensation for construction defects. Handling complaints involving dwellings covered by an independent or insured home warranty plan. Handling manufactured housing (unit) construction complaints. Handling dwelling construction complaints. Planning and Performing Site Development WorkĮxhibit A to Subpart C of Part 1924 Ĭhecklist of Visual Exhibits and Documentation for RRH, RCH, and LH ProposalsĬomplaints and Compensation for Construction Defects Insured 10-Year Home Warranty Plan Requirements Manufactured Home Sites, Rental Projects and Subdivisions: Development, Installation and Set-UpĬlassifications for Multi-Family Residential Rehabilitation Work

Guidelines for Seasonal Farm Labor Housing Thermal Performance Construction Standards Requirements for Modular/Panelized Housing Units Supplemental requirements for more complex construction.Įstimated Breakdown of Dwelling Costs for Estimating Partial Payments Making changes in the planned development.ĭistrict Director's review of incomplete development. Planning and Performing Construction and Other Developmentĭevelopment work for modular/panelized housing units.

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