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RD Instruction 1924-A

Table of Contents

Page 1

(Revision 1)

Part 1924 - CONSTRUCTION AND REPAIR

Subpart A - Planning and Performing Construction and Other Development

Table of Contents

Sec.

Page

1924.1 Purpose. 1

1924.2 [Reserved]

1924.3 Authorities and responsibilities. 1

1924.4 Definitions. 1

(a) Construction. 1

(b) Contract documents. 1

(d) County Supervisor and District Director. 2

(e) Date of commencement of work. 2

(f) Date of substantial completion. 2

(g) Development. 2

(h) Development standards. 2

(i) Identity of interest. 2

(j) Land development. 3

(k) Manufactured housing. 4

(l) Mechanic's and materialmen's liens. 4

(m) Modular/panelized housing. 4

(n) Project representative. 4

(o) Technical services. 4

(p) Warranty. 4A

1924.5 Planning development work. 4A

(a) Extent of development. 4A

(b) Funds for development work. 5

(d) Construction. 5

(e) Land development. 8

(f) Responsibilities for planning development. 9

(g) Surplus structures and use or sale of timber, 14

sand or stone.

(h) Review prior to performing development work. 15

(i) Time of starting development work. 16

1924.6 Performing development work. 16

(a) Contract method. 16

(b) Borrower method. 28

(d) Owner-builder method. 31

(03-16-94) SPECIAL PN

RD Instruction 1924-A

Table of Contents

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(Revision 1)

Sec.

Page

1924.7 [Reserved] 31

1924.8 Development work for modular/panelized housing units.

1924.9 Inspection of development work. 32

(a) Responsibility for inspection. 32

(b) Frequency of inspections. 33

deficiencies. 35

(d) Acceptance by responsible public authority. 35

(e) Acceptance by project architect. 35

1924.10 Making changes in the planned development. 35

(a) Authority of the County Supervisor. 35

(b) Authority of the District Director. 36

1924.11 District Director's review of incomplete development. 38

1924.12 Warranty of development work. 39

1924.13 Supplemental requirements for more complex construction. 40

(a) Architectural services. 40

(b) Other professional services. 45

(d) Specifications. 46

(e) Methods of administering construction. 46

1924.14 - 1924.48 [Reserved] 71

1924.49 State supplements. 71

1924.50 OMB control number. 71

Exhibit A Estimated breakdown of dwelling costs for estimating partial

payments.

Exhibit B Requirements for modular/panelized housing units.

Exhibit C Guide for drawings and specifications.

Exhibit D Thermal performance construction standards.

Exhibit E Voluntary national model building codes.

Exhibit F Payment bond.

Exhibit G Performance bond.

Exhibit H Prohibition of lead-based paints.

Exhibit I Guidelines for seasonal farm labor housing.

RD Instruction 1924-A

Table of Contents

Page 3

Exhibit J Manufactured home sites, rental projects and

subdivisions: Development, installation and

set-up.

Exhibit K Classifications for multi-family residential

rehabilitation work.

Exhibit L Insured 10-year home warranty plan

requirements.

Exhibit M Seven Steps to Cost Certification.

Guides (Available in any Rural Development office)

Guide 1 Contract Documents.

Guide 2 Rural Development Design Guide.

Guide 3 Quality and Performance Criteria for Moderate

Rehabilitation.

Guide 4 Attachment to AIA Document - Standard Form of

Agreement Between Owner and Architect.

oOo

(03-16-94) SPECIAL PN

_____________________________________________________________________________

RD Instruction 1924-A

PART 1924 - CONSTRUCTION AND REPAIR

Subpart A - Planning and Performing Construction and Other Development

§1924.1 Purpose.

This subpart prescribes the basic Rural Development policies, methods,

and responsibilities in the planning and performing of construction and other

development work for insured Rural Housing (RH), and single unit Labor Housing

(LH). It also provides supplemental requirements for Rural Rental Housing

(RRH) loans, Rural Cooperative Housing (RCH) loans, multiunit (LH) loans and

grants, and Rural Housing Site (RHS) loans. This subpart is inapplicable to

Farm Service Agency, Farm Loan Programs. (Revised 01-09-08, PN 417.)

§1924.2 [Reserved]

§1924.3 Authorities and responsibilities.

The County Supervisor and District Director are authorized to redelegate,

in writing, any authority delegated to them in this subpart to the Assistant

County Supervisor and Assistant District Director, respectively, when

determined to be qualified. Rural Development Construction Inspectors,

District Loan Assistants, and County Office Assistants are authorized to

perform duties under this subpart as authorized in their job descriptions.

§1924.4 Definitions.

(a) Construction. Such work as erecting, repairing, remodeling,

relocating, adding to or salvaging any building or structure, and the

installation or repair of, or addition to, heating and electrical

systems, water systems, sewage disposal systems, walks, steps,

driveways, and landscaping.

(b) Contract documents. The borrower-contractor agreement, the

conditions of the contract (general, supplementary, and other), the

drawings, specifications, warranty information, all addenda issued

before executing the contract, all approved modifications thereto, and

any other items stipulated as being included in the contract documents.

enters into a contract for construction or land development, or both.

DISTRIBUTION: WS Real Property

Construction and Repair

(Revision 2)

(5-12-87) SPECIAL PN

RD Instruction 1924-A

§ 1924.4 (Con.)

(d) County Supervisor and District Director. In Alaska, for the

purpose of this subpart, "County Supervisor" and "District Director"

also mean "Assistant Area Loan Specialist" and "Area Loan Specialist,"

respectively. The terms also include other qualified staff who may be

delegated responsibilities under this subpart in accordance with the

provisions of Subpart F of Part 2006 (available in any Rural Development

office).

(e) Date of commencement of work. The date established in a "Notice to

Proceed" or, in the absence of such notice, the date of the contract or

other date as may be established in it or by the parties to it.

(f) Date of substantial completion. The date certified by the Project

Architect/Engineer or County Supervisor when it is possible, in

accordance with any contract documents and applicable State or local

codes and ordinances, and the Rural Development approved drawings and

specifications, to permit safe and convenient occupancy and/or use of

the buildings or other development.

(g) Development. Construction and land development.

(h) Development standards. Any of the following codes and standards:

(1) A standard adopted by Rural Development for each state in

accordance with §1924.5 (d)(l)(i)(E) of this subpart.

(2) Voluntary national model building codes (model codes).

Comprehensive documents created, referenced or published by

nationally recognized associations of building officials that

regulate the construction, alteration and repair of building,

plumbing, mechanical and electrical systems. These codes are listed

in Exhibit E of this subpart.

(3) Minimum Property Standards (MPS). The Department of Housing

and Urban Development (HUD) Minimum Property Standards for Housing,

Handbook 4910.1, 1984 Edition with Changes. (For One and Two Family

Dwellings and Multi-Family Housing.)

(i) Identity of interest. Identity of interest will be construed as

existing between the applicant (the party of the first part) and general

contractors, architects, engineers, attorneys, subcontractors, material

suppliers, or equipment lessors (parties of the second part) under any

of the following conditions:

(1) When there is any financial interest of the party of the first

part in the party of the second part. The providing of normal

professional services by architects, engineers, attorneys or

accountants with a client-professional relationship shall not

constitute an identity of interest.

(Revision 2)

RD Instruction 1924-A

§ 1924.4(i) (Con.)

(2) When one or more of the officers, directors, stockholders, or

partners of the party of the first part is also an officer,

director, stockholder, or partner of the party of the second part;

(3) When any officer, director, stockholder, or partner of the

party of the first part has any financial interest whatsoever in the

party of the second part;

(4) Between the spouse, significant other, relatives, and step-

relatives of the principal owners of the party of the first part and

its management, such as Grandmother, Aunt, Daughter, Granddaughter,

Grandfather, Uncle, Son, Grandson, Mother, Sister, Niece, Cousin,

Father, Brother, Nephew;

(Added 03-16-94, SPECIAL PN.)

(5) When the party of the second part advances any funds to the

party of the first part; (Renumbered 03-16-94, SPECIAL PN.)

(6) When the party of the second part provides and pays on behalf

of the party of the first part the cost of any legal services,

architectural services or engineering services other than those of a

surveyor, general superintendent, or engineer employee by a general

contractor in connection with obligations under the construction

contract; (Renumbered 03-16-94, SPECIAL PN.)

(7) When the party of the second part takes stock or any interest

in a party of the first part as part of the consideration to be

paid; (Renumbered 03-16-94, SPECIAL PN.)

(8) When there exists or comes into being any side deals,

agreements, contracts, or undertakings entered into thereby

altering, amending, or canceling any of the required closing

documents except as approved by Rural Development. (Renumbered 03-

16-94, SPECIAL PN.)

(9) An identity of interest will also exist when another party can

significantly influence the management or operating policies of the

transacting parties or if it has an ownership interest in one of the

transacting parties and can significantly influence the other to an

extent that one or more of the transacting parties might be

prevented from fully pursuing its own separate interests. (Added

03-16-94, SPECIAL PN.)

(j) Land development. Includes items such as terracing, clearing,

leveling, fencing, drainage and irrigation systems, ponds, forestation,

permanent pastures, perennial hay crops, basic soil amendments,

pollution abatement and control measures, and other items

(Revision 1)

(05-12-87) SPECIAL PN

RD Instruction 1924-A

§ 1924.4(j) (Con.)

of land improvement which conserve or permanently enhance productivity.

Also, land development for structures includes the applicable items

above, and items such as rough and finish grading, retaining walls,

water supply and waste disposal facilities, streets, curbs and gutters,

sidewalks, entrancewalks, driveways, parking areas, landscaping and

other related structures.

(k) Manufactured housing. Housing, constructed of one or more factory-

built sections, which includes the plumbing, heating and electrical

systems contained therein, which is built to comply with the Federal

Manufactured Home Construction and Safety Standards (FMHCSS), and which

is designed to be used with or without a permanent foundation. Specific

requirements for manufactured homes sites, rental projects and

subdivisions are in Exhibit J of this subpart.

(l) Mechanic's and materialmen's liens. A lien on real property in

favor of persons supplying labor and/or materials for the construction

for the value of labor and/or materials supplied by them. In some

jurisdictions, a mechanic's lien also exists for the value of

professional services.

(m) Modular/panelized housing. Housing, constructed of one or more

factory-built sections, which, when completed, meets or exceeds the

requirements of one or more of the recognized development standards for

site-built housing, and which is designed to be permanently connected to

a site-built foundation.

(n) Project representative. The architect's or owner's representative

at the construction site who assists in the administration of the

construction contract. When required by Rural Development, a full-time

project representative shall be employed.

(o) Technical services. Applicants are responsible for obtaining the

services necessary to plan projects including analysis of project design

requirements, creation and development of the project design,

preparation of drawings, specifications and bidding requirements, and

general administration of the construction contract.

(1) Architectural services. The services of a professionally

qualified person or organization, duly licensed and qualified in

accordance with state law to perform architectural services.

(2) Engineering services. The services of a professionally

qualified person or organization, duly licensed and qualified in

accordance with State law to perform engineering services.

(Revision 1)

RD Instruction 1924-A

§1924.4 (Con.)

(p) Warranty. A legally enforceable assurance provided by the builder

(warrantor) to the owner and the Rural Development indicating that the

work done and materials supplied conform to those specified in the

contract documents and applicable regulations. For the period of the

warranty, the warrantor agrees to repair defective workmanship and

repair or replace any defective materials at the expense of the

warrantor.

§1924.5 Planning development work.

(a) Extent of development. For an FO loan, the plans for development

will include the items necessary to put the farm in a livable and

operable condition consistent with the planned farm and home operations.

For other types of loans, the plans will include those items essential

to achieve the objectives of the loan or grant as specified in the

applicable regulation.

(Added 03-16-94, SPECIAL PN)

(05-12-87) SPECIAL PN

RD Instruction 1924-A

§ 1924.5 (Con.)

(b) Funds for development work. The total cash cost of all planned

development will be shown on Form RD 1924-1, "Development Plan," except

Form RD 1924-1 may be omitted when (1) all development is to be done by

the contract method, (2) adequate cost estimates are included in the

docket, and (3) the work, including all landscaping, repairs, and site

development work, is completely described on the drawings, in the

specifications, or in the contract documents. Sufficient funds to pay

for the total cash cost of all planned development must be provided at

or before loan closing. Funds to be provided may include loan proceeds,

any cash to be furnished by the borrower, proceeds from cost sharing

programs such as Agricultural Stabilization and Conservation Service

(ASCS) and Great Plains programs or proceeds from the sale of property

in accordance with paragraph (g) of this section.

(1) All construction work included in the development plan for RH

loans will be scheduled for completion as quickly as practicable and

no later than 9 months from the date of loan closing, except for

mutual self-help housing where work may be scheduled for completion

within a period of 15 months.

(2) Development for farm program loans will be scheduled for

completion as quickly as practicable and no later than 15 months

from the date of loan closing unless more time is needed to

establish land development practices in the area.

(d) Construction.

(1) All new buildings to be constructed and all alterations and

repairs to buildings will be planned to conform with good

construction practices. The Rural Development Manual of Acceptable

Practices (MAP) Vol. 4930.1 (available in any Rural Development

office), provides suggestions and illustrative clarifications of

design and construction methods which are generally satisfactory in

most areas. All improvements to the property will confirm to

applicable laws, ordinances, codes, and regulations related to the

safety and sanitation of buildings; standards referenced in

Appendices C through F of HUD Handbook 4910.1, Minimum Property

Standards for Housing; Thermal Performance Construction Standards

contained in Exhibit D of this subpart and, when required, to

certain other development standards described below.

(Revised 1-27-88, PN 75.)

(i) The development standard applicable to a proposal will

selected by the loan applicant or recipient of an RH

Conditional Commitment in accordance with the following. The

standard selected must:

(Revision 1)

(5-12-87) SPECIAL PN

RD Instruction §1924-A

§ 1924.5(d)(1)(i) (Con.)

(A) Relate to the type(s) of building proposed.

(B) Meet or exceed any applicable local or state laws,

ordinances, codes and regulations.

(D) Exclude inapplicable administrative requirements.

(E) Be the current edition(s) of either paragraph (1)

or (2) below:

(1) The development standard, consisting of

building, plumbing, mechanical and electrical codes,

adopted by Rural Development for use in the state

(identified in a State Supplement to this section) in

which the development is proposed, in accordance with

the following:

(i) The adopted development standard shall

include any building, plumbing, mechanical or

electrical code adopted by the state, if

determined by the State Director to be based on

one of the model codes listed in Exhibit E to

this subpart, or, if not available,

(ii) The adopted development standard shall

include any building, plumbing, mechanical or

electrical code adopted by the state, if

determined by the Administrator to be

acceptable, or, if not available,

(iii) The adopted development standard shall

include the model building, plumbing, mechanical

and electrical codes listed in Exhibit E to this

subpart that is determined by the State Director

to be most prevalent and appropriate for the

state.

(2) Any of the model building, plumbing, mechanical

and electrical codes listed in Exhibit E to this

subpart or the standards defined in §1924.4 (h) (3)

of this subpart.

(ii) Guide 2, "Rural Development Design Guide," of this

subpart (available in any Rural Development office), includes

guidelines for the evaluation of the design features which are

not fully addressed in the development standards.

(Revision 1)

RD Instruction 1924-A

§ 1924.5(d)(1) (Con.)

(iii) In new housing, all design, materials and construction

will meet or exceed the applicable development standard as

provided in paragraph (d)(l)(i) of this section.

(iv) For multi-family residential rehabilitation, as defined

in Exhibit K of this subpart, all substantial rehabilitation

work of existing buildings will meet or exceed the applicable

development standard. All moderate rehabilitation work should

comply with Guide 3, "Quality and Performance Criteria for

Moderate Rehabilitation," of this subpart.

(v) The design and construction of housing repairs made with

the Agency’s loan or grant funds will, as near as possible,

comply with the applicable development standard.

(vi) Farm LH design and construction will comply with the

following:

(A) Family projects, where the length of occupancy will

be:

(1) Year-round, will meet or exceed the applicable

development standard.

(2) Less than 12 months, but more than 6 months,

will be in substantial conformance with the

applicable development standard and constructed to

facilitate conversion of year-round occupancy

standards.

(3) Six months or less, may be less than the

applicable development standard but should be

constructed in accordance with Exhibit I of this

subpart.

(B) Dormitory and other non-family type projects, where

the length of occupancy will be:

(1) More than 6 months, will be in substantial

conformance with the applicable development standard

and will at least meet or exceed the requirements of

the Department of Labor, Bureau of Employment

Security (29 CFR 1910.140).

(2) Six months or less, will comply with

§ 1924.5(d)(1)(vi)(A)(3).

(Revision 3)

(5-12-87) SPECIAL PN

RD Instruction 1924-A

§ 1924.5(d)(1) (Con.)

(vii) Farm service buildings should be designed and constructed

for adaptation to the local area. In designing and locating

farm service buildings, consideration will be given to

practices recommended by agriculture colleges, the Extension

Service (ES), Natural Conservation Resources Service (NCRS) and

other reliable sources.

(2) Drawings, specifications, and estimates will fully describe the

work. Technical data, tests, or engineering evaluations may be

required to support the design of the development. The "Guide for

Drawings and Specifications," Exhibit C of this subpart, describes

the drawings and specifications that are to be included in the

application for building construction, and Subpart C of Part 1924 of

this chapter describes the drawings that should be included for

development of building sites. The specific development standard

being used, if required under paragraph (d)(1) of this section will

be identified on all drawings and specifications. (Revised 6-22-87,

SPECIAL PN.)

(3) Materials acceptance shall be the same as described in

paragraph X of Exhibit B to this subpart. (Revised 1-27-88, PN 75.)

(4) Except as provided in paragraphs (d)(4)(i) through (iii) of

this section, new building construction and additions shall be

designed and constructed in accordance with the earthquake (seismic)

requirements of the applicable Agency’s development standard

(building code). The analysis and design of structural systems and

components shall be in accordance with applicable requirements of an

acceptable model building code. (Added 01-10-97, SPECIAL PN.)

(i) Agricultural buildings that are not intended for human

habitation are exempt from these earthquake (seismic)

requirements.

(ii) Single family conventional light wood frame dwellings of

two stories or 35 feet in height maximum shall be designed and

constructed in accordance with the 1992 Council of American

Building Officials (CABO) One and Two Family Dwelling Code or

the latest edition.

(iii) Single family housing of masonry design and townhouses

of wood frame construction and additions financed (either

directly or through a guarantee) under title V of the Housing

(Revision 3)

RD Instruction 1924-A

§1924.5(d)(4)(iii)(Con.)

Act of 1949 are recommended to be designed and constructed in

accordance with the earthquake (seismic) requirements of one of

the building codes that provides an equivalent level of safety

to that contained in the latest edition of the National

Earthquake Hazard Reduction Program’s (NEHRP) Recommended

Provisions for the Development of Seismic Regulations for New

Building (NEHRP Provisions).

(iv) Acknowledgment of compliance with the applicable seismic

safety requirements for new construction will be contained in

the certification of final plans and specification on the

appropriate Agency form.

(e) Land development.

(1) In planning land development, consideration will be given to

practices, including energy conservation measures, recommended by

agricultural colleges, ES, NCRS or other reliable sources. All land

and water development will conform to applicable laws, ordinances,

zoning and other applicable regulations including those related to

soil and water conservation and pollution abatement. The County

Supervisor or District Director also will encourage the applicant to

use any cost-sharing and planning assistance that may be available

through agricultural conservation programs.

(2) Site and subdivision planning and development must meet the

requirements of Subpart C of Part 1924 of this chapter. (Revised 6-

22-87, SPECIAL PN.)

(3) Plans and descriptive material will fully describe the work.

(4) The site planning design, development, installation and set-up

of manufactured home sites, rental projects and subdivisions shall

meet the requirements of Exhibit J of this subpart and Subpart C of

Part 1924 of this chapter. (Revised 6-22-87, SPECIAL PN.)

(Added 01-10-97, SPECIAL PN)

(5-12-87) SPECIAL PN

RD Instruction 1924-A

§1924.5 (e)(4) (Con.)

(i) Plans for land leveling, irrigation, or drainage should

include a map of the area to be improved showing the existing

conditions with respect to soil, topography, elevations, depth

of topsoil, kind of subsoil, and natural drainage, together

with the proposed land development.

(ii) When land development consists of, or includes, the

conservation and use of water for irrigation or domestic

purposes, the information submitted to the County Supervisor

will include a statement as to the source of the water supply,

right to the use of the water, and the adequacy and quality of

the supply.

(f) Responsibilities for planning development. Planning construction

and land development and obtaining technical services in connection with

drawings, specification, and cost estimates are the sole responsibility

of the applicant, with such assistance form the County Supervisor or

District Director (whichever is the appropriate loan processing and

servicing officer for the type of loan involved), as may be necessary to

be sure that the development is properly planned in order to protect

Rural Development's security.

(l) Responsibility of the applicant.

(i) The applicant will arrange for obtaining any required

technical services from qualified technicians, tradespeople,

and recognized plan services, and the applicant will furnish

the Rural Development sufficient information to describe fully

the planned development and the manner in which it will be

accomplished.

(ii) When items of construction or land development require

drawings and specification, they will be sufficiently complete

to avoid any misunderstanding as to extent, kind, and quality

of work to be performed. The applicant will provide Rural

Development with one copy of the drawings and specifications.

Approval will be indicated by the applicant and acceptance for

the purposes of the loan indicated by the County Supervisor or

District Director on all sheets of the drawings and at the end

of the specifications, and both instruments will be a part of

the loan docket. After the loan is closed, the borrower will

retain a conformed copy of the approved drawings and

specifications, and provide another conformed copy to the

contractor. Items not requiring drawings and specifications

may be described in narrative form.

(Revision 2)

(5-12-87) SPECIAL PN

RD Instruction 1924-A

§1924.5 (f)(l) (Con.)

(iii) Rural Development will accept final drawings and

specifications and any modifications thereof only after the

documents have been certified in writing as being in

conformance with the applicable development standard if

required under paragraph (d)(l) of this section. Certification

is required for all Single Family Housing (SFH) thermal designs

(plans, specifications, and calculations). (Revised 08-26-94,

SPECIAL PN.)

(A) Certifications may be accepted from individuals or

organizations who are trained and experienced in the

compliance, interpretation or enforcement of the

applicable development standards for drawings and

specifications. Plan certifiers may be any of the

following:

(1) Licensed architects,

(2) Professional engineers,

(3) Plan reviewers certified by a national model

code organization listed in Exhibit E to this

subpart,

(4) Local building officials authorized to review

and approve building plans and specifications, or

(5) National codes organizations listed in Exhibit E

to this subpart.

(B) The license or authorization of the individual must

be current at the time of the certification statement. A

building permit (except as noted in paragraph

(f)(l)(iii)(C)(2) of this section) or professional's stamp

is not an acceptable substitute for the certification

statement. However, a code compliance review conducted by

one of the National recognized code organizations

indicating no deficiencies or the noted deficiencies have

been corrected is an acceptable substitute for the

certification statement.

dwelling units) Rural Development may also accept drawings

and specifications that have been certified by:

(1) Registered Professional Building Designers

certified by the American Institute of Building

Design.

(Revision 2)

RD Instruction 1924-A

§1924.5 (f)(l)(iii)(C) (Con.)

(2) A local community, if that community has

adopted, by reference, one of the model building

codes and has trained official(s) who reviews plans

as well as inspects construction for compliance as a

requisite for issuing a building permit. The

building permit, issued by the community, may serve

as evidence of acceptance. The State Director will

determine eligible communities and publish, as a

State supplement to this section, a list of those

communities that qualify.

(3) A plan service that provides drawings and

specifications that are certified by individuals or

organizations as listed in paragraphs (f)(l)(iii)(A)

or (f)(l)(iii)(C)(1) and (2) of this section as

meeting the appropriate State adopted development

standard.

(4) Builders/Contractors who provide 10-year

warranty plans for the specific Rural Development

financed dwelling unit that meet the requirements of

Exhibit L of this subpart.

(5) Builders/Contractors that are approved by the

United States Department of Housing and Urban

Development (HUD) for self-certification.

(D) The modifications of certified drawings or

specifications must be certified by the same individual or

organization that certified the original drawings and

specifications. If such individual or organization is not

available, the entire set of modified drawings and

specifications must be recertified.

(E) The certification of modifications for single family

housing (SFH) construction may be waived if the builder

provides a written statement that the modifications are

not regulated by the applicable development standard. The

County Supervisor may consult with the State Office

Architect/Engineer as the acceptance of the statement and

granting a waiver.

(F) All certifications of final drawings, specifications,

and calculations shall be on Form RD 1924-25, "Plan

Certification." (Revised 08-26-94, SPECIAL PN.)

(Revision 2)

(05-12-87) SPECIAL PN

RD Instruction 1924-A

§1924.5 (f) (Con.)

(2) Responsibility of the County Supervisor or District Director.

In accordance with program regulations for loans and grants they are

required to process, the County Supervisor or District Director, for

the sole benefit of Rural Development, will:

(i) Visit each farm or site on which the development is

proposed. For an FO loan, the County Supervisor and the

applicant will determine the items of development necessary to

put the farm in a livable and operable condition at the outset.

Prepare Form RD 1924-1, when applicable in accordance with the

Forms Manual Insert (FMI) for the form, after a complete

understanding has been reached between the applicant and the

County Supervisor regarding the development to be accomplished,

including the dates each item of development will be started

and completed.

(Revision 2)

RD Instruction 1924-A

§1924.5 (f) (2) (Con.)

(ii) Notify the loan or grant applicant in writing immediately

if, after reviewing the preliminary proposal and inspecting the

site, the proposal is nor acceptable. If the proposal is

acceptable, an understanding will be reached with the applicant

concerning the starting date for each item of development.

(iii) Discuss with the applicant the Rural Development

requirements with respect to good construction and land

development practices.

(iv) Advise the applicant regarding drawings, specifications,

cost estimates, and other related material which the applicant

must submit to the Rural Development for review before the loan

can be developed. Advise the applicant of the information

necessary in the drawings, how the cost estimates should be

prepared, the number of sets of drawings, specifications, and

cost estimates required, and the necessity for furnishing such

information promptly. Advise the applicant that Rural

Development will provide appropriate specification forms, Form

RD 1924-2, "Description of Materials," and Form RD 1924-3,

"Service Building Specifications." The applicant may, however,

use other properly prepared specifications.

(v) Advise the applicant regarding Publications, plans,

planning aids, engineering data, and other technical advice and

assistance available through local, state, and Federal

agencies, and private individuals and organizations.

(vi) Review the information furnished by the applicant to

determine the completeness of the plans, adequacy of the cost

estimates, suitability and soundness of the proposed

development.

(vii) When appropriate, offer suggestions as to how drawings

and specifications might be altered to improve the facility and

better serve the needs of the applicant. The County supervisor

or District Director may assist the applicant in making

revisions to the drawings. When appropriate, the contract

documents will be forwarded to the State architect/engineer for

review. For revisions requiring technical determinations that

Rural Development is not able to make, the applicant will be

requested to obtain additional technical assistance.

(5-12-87) SPECIAL PN

RD Instruction 1924-A

§1924.5 (f) (2) (Con.)

(viii) Provide the applicant with a written list of changes

required in the contract documents. The applicant will submit

two complete revised (as requested) sets of contract documents,

for approval. On one set, the County Supervisor or District

Director will indicate acceptance on each sheet of the

drawings, and on the cover of the specifications and all other

contract documents. At least the date and the initials of the

approval official must be shown. On projects where a

consulting architect or engineer has been retained, this

acceptance will be indicated only after the State Director has

given written authorization. The marked set of documents shall

be available at the job site at all times for review by Rural

Development. The second set will become part of the loan

docket.

(ix) Review the proposed method of doing the work and

determine whether the work can be performed satisfactorily

under the proposed method.

(x) Instruct the applicant not to incur any debts prior to

loan closing for materials or labor or make any expenditures

for such purposes with the expectation of being reimbursed from

loan funds.

(xi) Instruct the applicant not to commence any construction

nor cause any supplies or materials to be delivered to the

construction site prior to loan closing.

(xii) Under certain conditions prescribed in Exhibit H of this

subpart, provide the applicant with a copy of the leaflet,

"Warning - Lead-Based Paint Hazards," which is Attachment 1 of

Exhibit H (available in any Rural Development office), and the

warning sheet, "Caution Note on Lead-Based Paint Hazard," which

is Attachment 2 of Exhibit H (available in any Rural

Development office).

(g) Surplus structures and use or sale of timber, sand, or stone. In

planning the developments, the applicant and the County Supervisor or

District Director should, when practicable, plan to use salvage from old

buildings, timber, sand, gravel, or stone from the property. The

borrower may sell surplus buildings, timber, sand, gravel, or stone that

is not to be used in performing planned development and use net proceeds

to pay costs of performing planned development work. In such a case:

(1) An agreement will be recorded in the narrative of Form RD

1924-1 which as a minimum will:

RD Instruction 1924-A

§ 1924.5(g)(1) (Con.)

(i) Identify the property to be sold, the estimated net

proceeds to be received, and the approximate date by which the

property will be sold.

(ii) Provide that the borrower will deposit the net proceeds

in the supervised bank account and apply any funds remaining

after the development is complete as an extra payment on the

loan, or in accordance with § 1965.13(f) of subpart A of Part

1965 of this chapter for farm program loans.

(2) The agreement will be considered by the Government as modifying

the mortgage contract to the extent of authorizing and requiring the

Government to release the identified property subject to the

conditions stated in the agreement without payment or other

consideration at the time of release, regardless of whether or not

the mortgage specifically refers to Form RD 1924-1 or the agreement

to release.

(3) If the RD loan will be secured by a junior lien, all prior

lienholders must give written consent to the proposed sale and the

use of the net proceeds before the loan is approved.

(4) Releases requested by the borrower or the buyer will be

processed in accordance with applicable release procedures 7 CFR

part 3550, as appropriate. (Revised 01-23-03, SPECIAL PN.)

(h) Review prior to performing development work. 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. 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 bids. 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. If

any changes in the plans and specifications are proposed, they should be

within the general scope of the work as originally planned. Changes

must be approved and processed in accordance with §1924.10 of this

subpart. The appropriate procedure for performing development should be

explained to the borrower. Copies of FmHA forms that will be used

during the period of construction should be given to the borrower. The

borrower should be advised as to the purpose of each form and at that

period during construction each form will be used.

(Revision 1)

(05-12-87) SPECIAL PN

RD Instruction 1924-A

§ 1924.5 (Con.)

(i) Time of starting development work. Development work will

be started as soon as feasible after the loan is closed.

Except in cases in which advance commitments are made in

accordance with 7 CFR part 3550 or according to Section §

1924.13(e)(1)(vi)(A) or § 1924.13(e)(2)(ix)(A) of this subpart,

no commitments with respect to performing planned development

will be made by the Agency or the applicant before the loan is

closed. The applicant will be instructed that before the loan

is closed, debts should not be incurred for labor or materials,

or expenditures made for such purposes, with the expectation of

being reimbursed from loan funds except as provided in subpart

A of part 1943 of this chapter, 7 CFR part 3550, and subpart E

of part 1944 of this chapter. However, with the prior approval

of the National Office, a State Supplement may be issued

authorizing County Supervisors to permit applicants to commence

welldrilling operations prior to loan closing, provided (1) it

is necessary in the area to provide the water supply prior to

loan closing, (2) the applicant agrees in writing to pay with

personal funds all costs incurred if a satisfactory water

supply is not obtained, (3) any contractors and suppliers

understand and agree that loan funds may not be available to

make the payment, (4) such action will not result under

applicable State law in the giving of priority to mechanics and

materialmen's liens over the later recorded RHS mortgage, and

(5) RHS does not guarantee that the cost will be paid.

(Revised 01-23-03, SPECIAL PN.)

§ 1924.6 Performing development work.

All construction work will be performed by one, or a combination, of the

following methods: Contract, borrower, mutual self-help, or owner-builder.

All development work must be performed by a person, firm or organization

qualified to provide the service. Conditional commitment construction is

covered under 7 CFR part 3550. (Revised 01-23-03, SPECIAL PN.)

(a) Contract method. This method of development will be used for all

major construction except in cases where it is clearly not possible to

obtain a contract at a reasonable or competitive cost. Work under this

method is performed in accordance with a written contract.

(Revision 1)

RD Instruction 1924-A

§ 1924.6(a) (Con.)

(1) Forms used. Form RD 1924-6, "Construction Contract," will be

used for SFH construction. Other contract documents for more

complex construction, acceptable to the loan approval official and

containing the requirements of Subpart E of Part 1901 of this

chapter, may be used provided they are customarily used in the area

and protect the interest of the borrower and the Government with

respect to compliance with items such as the drawings,

specifications, payments for work, inspections, completion,

nondiscrimination in construction work and acceptance of the work.

If needed, the Office of the General Counsel (OGC) will be

consulted. The United States (including Rural Development) will not

become a party to a construction contract or incur any liability

under it.

(2) Contract provisions. Contracts will have a listing of

attachments and the provisions of the contract will include:

(i) The contract sum.

(ii) The dates for starting and completing the work.

(iii) The amount of liquidated damages to be charged.

(iv) The amount, method, and frequency of payment.

(v) Whether or not surety bonds will be provided.

(vi) The requirement that changes or additions must have prior

written approval of Rural Development.

(3) Surety requirements.

(i) Unless an exception is granted in accordance with

paragraph (a) (3) (iii) of this section or when interim

financing will be used, surety that guarantees both payment and

performance in the amount of the contract will be furnished

when one or more of the following conditions exist:

(A) The contract exceeds the applicable Rural

Development Single Family Housing area loan limit as per

7 CFR 3550.63. (Loan limits are available at the local

Rural Development field office.) (Revised 06-21-06, PN

399.)

(Revision 1)

(5-12-87) SPECIAL PN

RD Instruction 1924-A

§ 1924.6(a)(3)(i) (Con.)

(B) The loan approval official determines that a surety

bond appears advisable to protect the borrower against

default of the contractor.

(D) The contract provides for partial payments in excess

of the mount of 60 percent of the value of the work in

place.

(E) The contract provides for partial payments for

materials suitably stored on the site.

(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. 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. 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. 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. 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. The individual(s) will

pledge such liquid assets in an mount equal to the contract

amount. Fees charged for noncorporate sureties may nor 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 United States (including Rural

Development) will incur no liability related in any way to a

performance or payment bond provided in connection with a

(Revision 1)

RD Instruction 1924-A

§ 1924.6(a)(3)(ii) (Con.)

construction contract. Rural Development will be named as co-

obligee in the performance and payment bonds unless prohibited

by state law.

(iii) When an experienced and reliable contractor cannot

obtain payment and performance bonds meeting the surety

requirements of paragraph (a) (3) (ii) of this section, the

State Director may entertain a request from the applicant for

an exception to the surety requirements. The applicant's

request must specifically state why the proposed contractor is

unable to obtain payment and performance bonds meeting the

surety requirements, and why it is financially advantageous for

the applicant to award the contract to the proposed contractor

without the required bonds.

18A

(Added 06-21-06, PN 399)

(5-12-87) SPECIAL PN

RD instruction 1924-A

§1924.6 (a) (3) (iii) (Con.)

If the applicant's request is reasonable and justified, and if

the proposed contractor is reliable and experienced in the

construction of projects of similar size, design, scope, and

complexity, the State Director may grant an exception to the

surety requirements for loans or grants within the State

Director's approval authority and accept one or a combination

of the following:

(A) An unconditional and irrevocable letter of credit

issued by a lending institution which has been reviewed

and approved by OGC. In such cases, the construction

contract must indicate that the contractor will furnish a

properly executed letter of credit from a lending

institution acceptable to Rural Development prior to the

start of any work. The letter of credit must retain in

effect until the date of final acceptance of work by the

owner and Rural Development. In addition, the letter of

credit must stipulate that the lending institution, upon

written notification by Rural Development of the

contractor's failure to perform under the terms of the

contract, will advance rounds up to the amount of the

contract (including all Rural Development approved

contract change orders) to satisfy all prior debts

incurred by the contractor in performing the contract and

all funds necessary to complete the work. Payments may be

made to the contractor in accordance with paragraph (a)

(12) (i) (C) of this section as if full surety bonds were

being provided.

(B) If a letter of credit satisfying the conditions of

paragraph (A) cannot be obtained, the State Director may

accept a deposit in the amount of the contract, into an

interest or non-interest bearing supervised bank account.

In such cases, the construction contract must indicate

that the contractor will furnish the required deposit

prior to the start of any work and that the funds shall

remain on deposit until final acceptance of work by the

owner and Rural Development. Payments may be made to the

contractor in accordance with paragraph (a) (12) (i) (C)

of this section as if full surety bonds were being

provided.

or (B) of this section can be met except that a surety

bond, a letter of credit, and/or deposits are not

obtainable in full amount of the contract, the State

Director may accept an amount less than the full amount of

the contract provided all of the following conditions are

met:

(5-12-87) SPECIAL PN

RD Instruction 1924-A

§1924.6 (a) (3) (iii) (C) (Con.)

(1) The contractor provides a surety bond, a letter

of credit, or deposits in the greatest amount

possible, and provides documentation indicating the

reasons why amounts exceeding the proposed amount

cannot be provided.

(2) The applicant agrees to the amount of the surety

bond, letter of credit, or deposits proposed, and the

State Director determines that the applicant has the

financial capability to withstand any financial loss

due to default of the contractor.

(3) In the opinion of the State Director, the

proposed amount and the method of payment will

provide adequate protection for the borrower and the

Government against default of the contractor.

(4) The contract provides for partial payments not

to exceed 90 percent of the value of the work in

place for that portion of the total contract which is

guaranteed by an acceptable surety bond, letter of

credit, or deposits, and partial payments not to

exceed 60 percent of the value of the work in place

for that portion of the total contract which is not

guaranteed by surety, letter of credit, or deposits.

Example:

Contractor has a surety bond which guarantees payment

and performance in an amount of $150,000 which

represents 75 percent of the total contract amount of

$200,000. The contractor's first request for payment

appears thus:

- value of work in place is $10,000.

- payment for work guaranteed by surety=

75 percent x $10,000 x 90 percent = $6,750

- Payment for work not guaranteed by surety=

25 percent x $10,000 x 60 percent = $1,500

- Authorized payment = $8,250

§1924.6(a)(3)(iii)(C)(4) (Con.) RD Instruction 1924-A

(Each partial payment shall reflect values for work

guaranteed by surety, letter of credit, or deposits,

and work not so guaranteed).

(iv) In cases where the contractor does not obtain payment and

performance bonds in accordance with the surety requirements of

paragraph (a)(3)(ii) of this section, or where an exception to

the surety requirements is granted by the State Director, the

following steps will be taken to protect the borrower and the

government against latent obligations or defects in connection

with the construction: (Revised

10-30-96, PN 267.)

(A) The contractor will furnish a properly executed

corporate latent defects bond or a maintenance bond in the

amount of 10 percent of the construction contract; or

(B) An unconditional and irrevocable letter of credit in

the amount of 10 percent of the construction contract

issued by a lending institution which has been reviewed

and approved by OGC; or

bearing supervised bank account in the amount of 10

percent of the construction contract;

(D) The period of protection against latent obligations

and/or defects shall be one year from the date of final

acceptance of work by the owner and RHS;

(E) Final payment shall not be rendered to the contractor

until the provisions of paragraphs (a)(3)(iv)(A), (B) or

(F) The contract will contain a clause indicating that

the contractor agrees to provide surety or guarantee

acceptable to the owner and RHS against latent obligations

and/or defects in connection with the construction.

(4) Equal Opportunity. Section 1901.205 of subpart E of part 1901

of this chapter applies to all loans or grants involving

construction contracts and subcontracts in excess of $10,000.

(5) Labor Standards Provisions. The provisions of the Davis-Bacon

and other related Acts, which are published in the Department of

Labor regulations (29 CFR, parts 1, 3 and 5), will apply when the

contract involves either LH grant assistance, or 9 or more units in

a project being assisted under the HUD Section 8 housing assistance

payment program for new construction. (Revised 10-30-96, PN 267.)

(Revision 1)

(5-12-87) SPECIAL PN

RD Instruction 1924-A

§1924.6(a) (Con.)

(6) Historical and archaeological preservation. The provisions of

subpart F of part 1901 of this chapter concerning the protection of

historical and archaeological properties will apply to all

construction financed, in whole or in part, by RHS loans and grants.

These provisions have special applicability to development in areas

designated by NRCS as Resource Conservation and Development (RC&D)

areas. (See part 1942, subpart I of this chapter)

(Revised 10-30-96, PN 267.)

(7) Air and water acts. Under Executive Order 11738, all loans or

grants involving construction contracts for more than $100,000 must

meet all the requirements of Section 114 of the Clean Air Act (42

U.S.C. 7414) and section 308 of the Water Pollution Control Act (33

U.S.C., section 1813). The contract should contain provisions

obligating the contractor as a condition for the award of the

contract as follows:

(i) To notify the owner of the receipt of any communication

from Environmental Protection Agency (EPA) indicating that a

facility to be utilized in the performance of the contract is

under consideration to be listed on the EPA list of Violating

Facilities. Prompt notification is required prior to contract

award.

(ii) To certify that any facility to be utilized in the

performance of any nonexempt contractor subcontract is not

listed on the EPA list of Violating Facilities as of the date

of contract award.

(iii) To include or cause to be included the above criteria

and requirements of paragraphs (a)(7)(i) and (ii) of this

section in every nonexempt subcontract, and that the contractor

will take such action as the Government may direct as a means

of enforcing such provisions.

(8) Architectural barriers. In accordance with the Architectural

Barriers Act of 1968, (Pub. L. 90-480) as implemented by the General

Services Administration regulations (41 CFR 101-19.6) and section

504 of the Rehabilitation Act of 1973 (Pub. L. 93-112) as

implemented by 7 CFR, parts 15 and 15b, all facilities financed with

RHS loans and grants and which are accessible to the public or in

which people with disabilities may be employed or reside must be

developed in compliance with this Act. Copies of the Act and

Federal accessibility design standards may be obtained from the

Executive Director, Architectural and Transportation Barriers

Compliance Board, Washington, D.C. 20201. (Revised 10-30-96, PN

267.)

(Revision 1)

RD Instruction 1924-A

§1924.6 (a) (9)

(9) National Environmental Policy Act. Loans and grants, including

those being assisted under the HUD section 8 housing assistance

payment program for new construction, must comply with the

environmental review requirements in accordance with 7 CFR part

1970. (Revised 04-01-2016, SPECIAL PN.)

(10) Obtaining bids and selecting a contractor.

(i) The applicant may select a contractor and negotiate a

contract or contact several contractors and request each to

submit a bid. For complex construction projects, refer also to

§1924.13 (e) of this subpart.

(ii) When a price has already been negotiated or an applicant

and a contractor, the County Supervisor, District Director or

other appropriate Rural Development official will review the

proposed contract. If the contractor is qualified to perform

the development and provide a warranty of the work and the

price compares favorably with the cost of similar construction

in the area, further negotiation is unnecessary. If the Rural

Development official determines the price is too high or

otherwise unreasonable, the applicant will be requested to

negotiate further with the contractor. If a reasonable price

cannot be negotiated or if the contractor is not qualified, the

applicant will be requested to obtain competitive bids.

(iii) When an applicant has a proposed development plan and no

contractor in mind, competitive bidding will be encouraged.

The applicant should obtain bids from as many qualified

contractors, dealers or tradespeople as feasible depending on

the method and type of construction.

(iv) If the award of the contract is by competitive bidding,

Form RD 1924-5, "Invitation for Bid (Construction Contract),"

or another similar invitation bid form containing the

requirements of Subpart E of Part 1901 of this chapter, may be

used. All contractors from whom bids are requested should be

informed of all conditions of the contract including the time

and place of opening bids. Conditions shall not be established

which would give preference to a specific bidder or type of

bidder. When applicable, copies of Forms RD 1924-6 and RD 400-

6, "Compliance Statement," also should be provided to the

prospective bidders.

(11) Awarding the contract. The borrower, with the assistance of

the County Supervisor or District Director, will consider the amount

of the bids or proposals, and all conditions which were listed in

the "Invitation for Bid." On the basis of these considerations, the

borrower will select and notify the lowest responsible bidder.

(Revision 1)

(5-12-87) SPECIAL PN

RD instruction 1924-A

§1924.6 (a) (11) (Con.)

(i) Before work commences, the County Supervisor, District

Director or other Rural Development employee having knowledge

of contracts and construction practices will hold a

preconstruction conference with the borrower(s), contractor and

architect/engineer (if applicable). The purpose of the

conference is to reach a mutual understanding of each party's

responsibilities under the terms and conditions of the contract

documents and the loan agreement during the construction and

warranty periods. Form RD 1924-16, "Record of Preconstruction

Conference," may be used as a guide for an agenda.

(ii) A summary of the items covered will be entered in the

running case record.

(iii) The contract will then be prepared, signed and copies

distributed in accordance with the FMI for Form RD 1924-6.

(iv) After a borrower/contractor's contract or subcontract in

excess of $10.000 is received in the Rural Development County

or District Office, the responsible Rural Development official

will send within 10 calendar days of the date of the contract

or subcontract, a report similar in form and content to Exhibit

C of Subpart E of Part 1901 of this chapter to the Area

Director, Office of Federal Contract Compliance Programs, U. S.

Department of labor, at the applicable address listed in

Exhibit E, Subpart E of Part 1901 of this chapter. The report

must contain, at least, the following information:

Contractor's name, address and telephone number; employer's

identification number; amount, starting date and planned

completion date of the contract; contract number; and city and

DOL region of the contract site. The information for this

report should be obtained from the contractor when the contract

is awarded.

(12) Payments for work done by the contract method.

(i) Payments will be made in accordance with one of the

following methods unless prohibited by state statute, in which

case the State Director shall issue a State Supplement to this

section:

(A) The "One Lump-Sum" payment method will be used when

the payment will be made in one lump-sum for the whole

contract.

(Revision 1)

RD Instruction 1924-A

§1924.6 (a) (12) (i) (Con.)

(B) The "Partial payments not to exceed 60 percent of the

value of the work in place" payment method will be used

when the contractor does not provide surety bond, a letter

of credit, or deposits.

the value of the work in place and of the value of the

materials suitably stored at the site" payment method will

be used when the contractor provides a surety bond equal

to the total contract amount.

(D) The "Partial payments which reflect the portions of

the contract amount which is guaranteed" method will be

used when the contractor provides surety bonds, a letter

of credit, or deposits less than the total amount of the

contract in accordance with the provisions of paragraph

(a)(3)(iii)(C) of this section.

(ii) When Form RD 1924-6 is used, the appropriate payment

clause will be checked and the other payment clauses not used

will be effectively crossed out.

(iii) When a contract form other than Form RD 1924-6 is used,

the payment clause must conform with paragraph (a) (12)(i) of

this section and the appropriate clause as set forth in Form RD

1924-6.

(iv) The borrower and Rural Development must take

precautionary measures to see that all payments made to the

contractor are properly applied against bills for materials and

labor procured under the contract. Prior to making any partial

payment on any contract where a surety bond is not used, the

contractor will be required to furnish the borrower and the

Rural Development with a statement showing the total amount

owed to date for materials and labor procured under the

contract. The contractor also may be required to submit

evidence showing that previous partial payments were applied

properly. When the borrower and the County supervisor or

District Director have reason to believe that partial payments

may not be applied properly, checks may be made jointly to the

contractor and persons who furnished materials and labor in

connection with the contract.

(v) When partial payments are requested of the contractor and

approved by the owner, the amount of the partial payment will

be determined by one of the following methods:

(A) Based upon the percentage completed as shown on a

recently completed and properly executed Form RD 1924-12,

"Inspection Report."

(5-12-87) SPECIAL PN

RD Instruction 1924-A

§1924.6 (a) (12) (v) (Con.)

(B) When the structure will be covered by an insured 10-

year warranty, the insurer's construction inspector must

provide Rural Development with any available copies of

instruction reports showing percentage of completion

immediately after the inspections are completed. To make

partial payments when copies of inspection reports are not

available, the responsible Rural Development official will

make the inspections or will be guided by the provisions

of §1924.6 (a) (12) (v) (C) of this subpart. If further

assistance is deemed necessary to justify partial

payments, the Rural Development official may make onsite

inspections or require additional information.

estimate of the value of work in place which has been

prepared by the contractor and accepted by the borrower

and Rural Development. When the contract provides for

partial payments for materials satisfactorily stored at

the site, the application for payment may include these

item. Prior to receiving the first partial payment, the

contractor should be required to submit a list of major

subcontractors and suppliers and a schedule of prices or

values of the various phases of the work aggregating the

total sum of the contract such as excavation, foundations,

framing, roofing, siding, mill work, painting, plumbing,

heating, electric wiring, etc., made out in such form as

agreed upon by the borrower, Rural Development, and the

contractor. In applying for payments, the contractor

should submit a statement based upon this schedule. See

Exhibit A of this subpart for guidance in reviewing the

contractor's schedule of prices and estimating the value

of the work in place.

(vi) Final payment.

(A) When the structure will be covered by an insured 10-

year warranty, the insurer must provide an insured 10-year

warranty policy (or a binder if the policy is not

available) before final payment is made to the builder.

RD Instruction 1924-A

§1924.6 (a) (12) (vi) (Con.)

(B) Final payment of the amount due on the contract or

disbursal of the Rural Development loan funds where an

interim loan was used will be made only upon completion of

the entire contract, final inspection by Rural

Development, acceptance of the work by Rural Development

and the borrower, issuance of any and all final permits

and approvals for the use and occupancy of the structure

by any applicable state and local governmental

authorities, and compliance by the contractor with all

terms and conditions of the contract. In the event the

work of construction is delayed or interrupted by reason

of fire, flood, unusually stormy weather, war, riot,

strike, an order, requisition or regulation of any

governmental body (excluding delays related to possible

defects in the contractor's performance and excluding

delays caused by the necessity of securing building

permits or any required inspection procedures corrected

therewith) or other contingencies reasonably unforeseeable

and beyond the reasonable control of the contractor, then

with the written consent of Rural Development, the date of

completion of the work may be extended by the owner by the

period of such delay, provided that the contractor shall

give the owner and Rural Development written notice within

72 hours of the occurrence of the event causing the delay

or interruption.

surety bond is nor used or disbursing the Rural

Development loan funds when an interim loan was used,

Rural Development will be provided with a Form RD 1924-9,

"Certificate of Contractor's Release," and Form RD 1924-

10, "Release by Claimants," executed by all persons who

furnished materials or labor in connection with the

contract. The borrower should furnish the contractor with

a copy of the "Release by Claimants" form at the beginning

of the work in order that the contractor may obtain these

releases as the work progresses.

(1) If such releases cannot be obtained, the funds

may be disbursed provided all the following can be

met:

(i) Release statements to the extent possible

are obtained;

(ii) The interests of Rural Development can be

adequately protected and its security position

is not impaired; and

(5-12-87) SPECIAL PN

RD instruction 1924-A

§1924.6 (a) (12) (vi) (C) ( 1 ) (Con.)

(iii) Adequate provisions are made for handling

the unpaid account by withholding or escrowing

sufficient funds to pay any such clams or

obtaining a release bond.

(2) The State Director may issue a State Supplement

which will:

(i) Not require the use of Form RD 1924-10.

If, under existing state statures, the

furnishing of labor and materials gives no right

to a lien against the property, or

(ii) Provide an alternative method to protect

against mechanic's and materialmen's liens. In

this case, the use of Form RD 1924-10 is

optional.

(b) Borrower method. The borrower method means performance of work by

or under the direction of the borrower, using one or more of the ways

specified in this paragraph. Development work may be performed by the

borrower method only when it is not practicable to do the work by the

contract method; the borrower possesses or arranges through an approved

self-help plan for the necessary skill and managerial ability to

complete the work satisfactorily; such work will not interfere seriously

with the borrower's farming operation or work schedule, and the County

Office caseload will permit a County Supervisor to properly advise the

borrower and inspect the work.

(1) Ways of performing the work. The borrower will:

(i) Purchase the material and equipment and do the work.

(ii) Utilize lump-sum, agreements for (A) minor items or minor

portions of items of development, the total cost of which does

not exceed $5,000 per agreement, such as labor, material, or

labor and material for small service buildings, repair jobs, or

land development; or (B) material and equipment which involve a

single trade and will be installed by the seller, such as the

purchase and installation of heating facilities, electric

wiring, wells, painting, liming, or sodding. All agreements

will be in writing, however, the County Supervisor may make an

exception to this requirement when the agreement involves a

relatively small amount.

RD Instruction 1924-A

§ 1924.6 (b) (Con.)

(2) Acceptance and storage of material on site. The County

Supervisor will advise the borrower that the acceptance of material

as delivered to the site and the proper storage of material will be

the borrower's responsibility.

(3) Payment for work done by the borrower method.

(i) Payments for labor. Before the County Supervisor

countersigns checks for labor, the borrower must submit a

completed Form RD 1924-11, "Statement of Labor Performed," for

each worker performing labor during the pay period.

Ordinarily, checks for labor will be made payable to the

workers involved. However, under justifiable circumstances,

when the borrower has paid for labor with personal funds and

has obtained signatures of workers on Form RD 1924-11 as having

received payment, the County Supervisor may countersign a check

made payable to the borrower for reimbursement of these

expenditures. Under no circumstances will the County

Supervisor permit loan funds or funds withdrawn from the

supervised bank account to be used to pay the borrower for the

borrower's own labor or labor performed by any member of the

borrower's household.

(ii) Payments for equipment, material or lump-sum agreements.

(A) Before countersigning checks for equipment or

materials, the County Supervisor must normally have an

invoice from the seller covering the equipment or

materials to be purchased. When an invoice is not

available at the time the check is issued, an itemized

statement of the equipment or materials to be purchased

may be substituted until a paid invoice from the seller

is submitted, at which time the prepurchase statement may

be destroyed.

(B) When an invoice is available at the time the check

is drawn, the check will include a reference to the

invoice number, the invoice date if unnumbered and, if

necessary, the purpose of the expenditure.

indicated on the appropriate Form RD 1924-11, invoice,

itemized statement of equipment or materials and/or lump-

sum agreement.

(Revision 3)

(5-12-87) SPECIAL PN

RD Instruction 1924-A

§ 1924.6(b)(3)(ii) (Con.)

(D) Ordinarily, checks for equipment or materials will

be made payable to the seller. Under justifiable

circumstances, when the borrower has paid for equipment

or materials with personal funds and furnished a paid

invoice, the County Supervisor may countersign a check

made payable to the borrower for reimbursement of these

expenses.

(E) When an invoice includes equipment or materials for

more than one item of development, the appropriate part

of the cost to be charged against each item of

development will be indicated on the invoice by the

borrower, with the assistance of the County Supervisor.

(F) Payment made under lump-sum agreements will be made

only when all items of equipment and materials have been

furnished, labor has been performed as agreed upon, and

the work has been accepted by the borrower and the

Agency.

(G) Each paid Form RD 1924-11, invoice, itemized

statement for equipment or material and/or lump-sum

agreement will be given to the borrower in accordance

with the FMI.

performance of work by a group of families by mutual labor under the

direction of a construction supervisor, as described in 7 CFR part 3550.

The ways of doing the work, buying materials, and contracting for

special services are like those used for the borrower method. Materials

can be bought jointly by the group of families, but payments will be

made individually by each family. In the case of RH loans to families

being assisted by Self-Help Technical Assistance (TA) grants in

accordance with subpart I of part 1944 of this chapter, the County

Supervisor may countersign checks for materials and necessary contract

work made payable directly to the TA grantee, provided the District

Director determines that: (Revised 01-23-03, SPECIAL PN.)

(1) The grantee acts in the same capacity as a construction manager

in the group Purchase of material and services.

(2) The grantee has an adequate bookkeeping system approved by the

District Director to assure that funds in each RH account are

properly distributed and maintained.

(Revision 3)

RD Instruction 1924-A

§ 1924.6 (c) (Con.)

(3) The grantee receives no compensation in the way of profit or

overhead for this service and all discounts and rebates received in

connection with the purchase of materials or services are passed on

to the participating families.

(4) The grantee has a record-keeping system which shows that the

costs of the materials and services were prorated to each borrower's

account in relation to the actual material and service used by each

borrower.

(d) Owner-builder method. This method of construction applies only to

RRH loans made under Subpart E of Part 1944 of this chapter.

Regulations governing this method are found at § 1924.13(e)(2) of this

subpart.

§ 1924.7 [Reserved]

§ 1924.8 Development work for modular/panelized housing units.

(a) Exhibit B of this subpart applies to all loans involving

modular/panelized housing units.

(b) Complete drawings and specifications will be required as prescribed

in Exhibit C of this subpart. Each set of drawings will contain the

design of the foundation system required for the soil and slope

conditions of the particular site on which the modular/panelized house

is to be placed.

Attachment 5 of this subpart), stating that the building has been built

substantially in accordance with the drawings and specifications. The

builder will also provide a certification that the onsite work complies

with drawings, specifications, and the applicable development standard

(Exhibit B, Attachment 5 of this subpart).

(d) Responsibility for field inspections will be in accordance with

§1924.9 (a) of this subpart. Frequency and timing of inspections will

be in accordance with § 1924.9(a) of this subpart, except that the Stage

2 inspection should be made during the time and in no case later than

two working days after the crews commence work on the site and the house

is being erected or placed on the foundation, to determine compliance

with the accepted drawings and specifications.

(Revision 2)

(5-12-87) SPECIAL PN

RD instruction 1924-A

§ 1924.8 (Con.)

(e) Periodic plant inspections will be performed in accordance with

paragraphs II and III Exhibit B of this subpart. Agency employees

responsible for inspections in the area in which the manufacturing plant

or material supply yard is located will perform such inspections as

deemed necessary under paragraph III of Exhibit B of this subpart.

(1) Plant inspections will be made if the type construction method

used could restrict adequate inspections on the building site.

(2) Plant inspections will be made as often as necessary; however,

after initial inspection and acceptance of the unit, only when it

appears advisable to ascertain the performance and continuing

stability of accepted materials and construction.

(f) Only one contract will be accepted for the completed house on the

site owned or to be bought by the borrower. The manufacturer of the

house or the manufacturer's agent may be the prime contractor for

delivery and erection of the house on the site or a builder may contract

with the borrower for the complete house in place on the site. Such

contracts should provide that payments will be made only for work in

place on the borrower's site.

(g) Payments for modular/panelized units will be made in accordance

with the terms of the contract and in compliance with § 1924.6(a)(12) of

this subpart.

§ 1924.9 Inspection of development work.

The following policies will govern the inspection of all development work.

(a) Responsibility for inspection. The County Supervisor or the

District Director, accompanied by the borrower when practicable, will

make final inspection of all development work and periodic inspections

as appropriate to protect the security interest of the government. In

this respect, inspections other than final inspections, may be conducted

by other qualified persons as authorized in paragraph (d) of this

section, in 7 CFR part 3550, in RD Instruction 2024-A (available in any

Rural Development Office), and as authorized under other agreements

executed by, or authorized by, the National Office. The borrower will

be responsible for making inspections necessary to protect the

borrower's interest. Agency inspections are not to assure the borrower

that the house is built in accordance with the plans and specifications.

The inspections create or imply no duty or obligation

(Revision 2)

RD Instruction 1924-A

§ 1924.9(a) (Con.)

to the particular borrower. Agency inspections are for the dual purpose

of determining that the Agency has adequate security for its loan and is

achieving the statutory goal of providing adequate housing. If

difficult technical problems are encountered, the County Supervisor or

District Director should request the assistance of the State Office or a

qualified technician from SCS or the State University Cooperative

Extension Service. (Revised 01-23-03, SPECIAL PN.)

(b) Frequency of inspections. The County Supervisor or District

Director will inspect development work as frequently as necessary to

assess that construction and land development conforms to the drawings

and specifications. The final inspection will be made at the earliest

possible date after completion of the planned development. When several

major items of development are involved, final inspection will be made

upon completion of each item.

(1) For new buildings and additions to existing buildings,

inspections will be made at the following stages of construction and

at such other stages of construction as determined by the County

Supervisor or District Director except as modified by paragraph

(b)(3) of this section.

(i) Stage 1. Customarily, the initial inspection in

construction cases is made just prior to or during the

placement of concrete footings or monolithic footings and floor

slabs. At this point, foundation excavations are complete,

forms or trenches and steel are ready for concrete placement

and the subsurface installation is roughed in. However, when

it is not practicable to make the initial inspection prior to

or during the placement of concrete, the County Supervisor or

District Director will make the initial inspection as soon as

possible after the placement of concrete and before any

backfill is in place.

(ii) Stage 2. The Stage 2 inspection will be made when the

building is enclosed, structural members are still exposed,

roughing in for heating, plumbing, and electrical work is in

place and visible, and wall insulation and vapor barriers are

installed. Customarily, this is prior to installation of brick

veneer or any interior finish which could include lath,

wallboard and finish flooring.

(Revision 2)

(05-12-87) SPECIAL PN

RD Instruction 1924-A

§ 1924.9(b)(1) (Con.)

(iii) Stage 3. The final inspection will be made when all on-

site and off-site development has been completed and the

structure is ready for occupancy or its intended use.

(2) For rehabilitation of existing buildings, inspections will be

made in accordance with paragraphs (b)(l)(ii) and (iii) of this

section, and at such other stages of construction to assure that

construction is being performed in a professional manner and in

accordance with the CFSA and/or RHCDS approved drawings and

specifications.

(3) For new construction when the structure will be covered by an

insured 10-year warranty plan as described in Exhibit L of this

subpart, only the final inspection is required, except in cases when

partial payments are required then the provisions of §

1924.6(a)(12)(v) of this subpart will be followed.

(4) Arrangements should be made to have the borrower join the

County Supervisor or the District Director in making periodic

inspections as often as necessary to provide a mutual understanding

with regard to the progress and performance of the work.

(5) The borrower should make enough periodic visits to the site to

be familiar with the progress and performance of the work, in order

to protect the borrower's interest. If the borrower observes or

otherwise becomes aware of any fault or defect in the work or

nonconformance with the contract documents, the borrower should give

prompt written notice thereof to the contractor with a copy to the

County Supervisor or District Director responsible for servicing the

type of loan or grant involved.

(6) The borrower should, when practicable, join the County

Supervisor or District Director in making all final inspections.

(7) When irrigation equipment and materials are to be purchased and

installed, a performance test under actual operating conditions by

the person or firm making the installation should be required before

final acceptance is made. The test should be conducted in the

presence of the borrower, a qualified technician, and, when

practicable, the County Supervisor or District Director. If the

CFSA official is not present at the performance test, he or she

should request the technician to furnish a report as to whether or

not the installation meets the requirements of the plans and

specifications.

(Revision 2)

RD Instruction 1924-A

§1924.9 (b) (Con.)

(8) For irrigation and drainage construction or any dwelling

construction where part or all of the work will be buried or

backfilled, interim inspections should be made at such stages of

construction that compliance with plans and specifications can be

determined.

and final inspections made by the County Supervisor or District Director

will be recorded on Form RD 1924-12 in accordance with the FMI. The

County Supervisor or District Director will be responsible for following

up on the correction of deficiencies reported on Form RD 1924-12. When

an architect/ engineer is providing services on a project, the District

Director should notify the architect/engineer immediately of any fault

or defect observed in the work or of any nonconformment with the

contract document. If the borrower or the contractor refuses to correct

the deficiencies, the District Director will report the facts to the

State Director who will determine the action to be taken. No inspection

will be recorded as a final inspection until all deficiencies or

nonconforming conditions have been corrected.

(d) Acceptance by responsible public authority. When local (city)

county, state, or other public authority) codes and ordinances require

inspections, final acceptance by the local authority having jurisdiction

will be required prior to final inspection or acceptance by Rural

Development.

(e) Acceptance by project architect. If architectural services

pursuant to §1924.13 (a) of this subpart have been obtained, final

acceptance by the project architect pursuant to §1924.13 (a) (5) (v) of

this subpart will be required prior to acceptance by Rural Development.

§1924.10 Making changes in the planned development.

The borrower may request changes in the planned development in accordance with

this section.

(a) Authority of the County Supervisor. The County Supervisor is

authorized to approve changes in the planned development involving loans

and grants within the County Supervisor's approval authority provided:

(1) The change is for an authorized purpose and within the scope of

the original proposal.

(5-12-87) SPECIAL PN

RD instruction 1924-A

§1924.10 (a) (Con.)

(2) Sufficient funds are deposited in the borrower's supervised

bank account or with the interim letter, as appropriate, to cover

the contemplated changes when the change involves additional funds

to be furnished by the borrower.

(3) The change will not adversely affect the soundness of the

operation or Rural Development's security. If uncertain as to the

probable effect the change would have on the soundness of the

operation or Rural Development security, the County Supervisor will

obtain advice from the District Director on whether to approve the

change.

(4) If a surety bond has been provided on the full amount of the

construction contract, the aggregate amount of all contract change

orders on Form RD 1924-7, "Contract Change Order," or other

acceptable form will not exceed 20 percent of the original contract

mount. Change orders for contracts on which a surety bond has been

provided which increases the original contract amount by more than

20 percent may only be approved if additional surety is provided in

the full revised amount of the contract. For purposes of this

paragraph, letters of credit and deposits are not considered surety.

(5) Change orders for contracts on which letters of credit or

deposits have been provided on the full amount of the contract which

will increase the original contract amount are approved only if

additional letters of credit or deposits are provided in the full

revised amount of the contract.

(6) Modifications have been certified in accordance with §1924.5

(f) (1) (iii) or certification has been waived in accordance with

§1924.5 (f) (1) (iii) (C) of this subpart.

(b) Authority of the District Director. The District Director is

authorized to approve changes in the developing planned with RRH, RCH,

and RHS loans and LH loans and grants within the District Director's

approval authority, provided the conditions in §1924.10 (a) have been

met. For such loans in excess of the District Director's approval

authority, the borrower's request with the District Director's

recommendation will be forwarded to the State Director for

consideration.

RD instruction 1924-A

§1924.10 (Con.)

(1) Changes should be accomplished only after Rural Development

written approval. Changes will not be included in payment requests

until approved by the borrower; the contractor, if applicable; the

architect/engineer, if applicable; and the Rural Development loan

approval official. Examples of changes requiring documentation are:

(i) Any changes in labor and materials and their respective

costs.

(ii) Changes in facility design.

(iii) Any decrease or increase in unit-price on final

measurements that are different from those shown in the bidding

schedule.

(iv) Any increase or decrease in the time to complete the

project.

(2) All changes shall be recorded in chronological order as

follows:

(i) Contract method. Changes shall be numbered in sequence as

they occur using Form RD 1924-7 with necessary attachments.

(ii) Borrower method. An increase or decrease in the cash

cost, extension of time, transfer of funds between items, or an

addition or deletion of items of development, will be

summarized on the front of Form RD 1924-1 by striking through

the original figures on items and writing in the changes.

Changes made in the "Development Plan" in the working drawings,

or in the plans and specifications will be dated and initialed

by all parties.

(iii) Mutual self-help method. [See paragraph (c) (2) (ii) of

this section.]

(iv) Owner-builder method. [See paragraph (c) (2) (i) of this

section.]

(3) All changes in facility design and/or materials must be

certified in accordance with §1924.5 (f) (1) (iii) of this subpart.

(5-12-87) SPECIAL PN

RD Instruction 1924-A

§1924.11 District Director's review of incomplete development.

During monthly District Office work organization meetings and during regular

visits to the County Office, the District Director will review the progress

that is being made in completing development financed with loans within the

district Director's and County Supervisor's responsibility.

(a) Once each year the District Director will make a comprehensive

review of all development work not completed within the time scheduled.

For incomplete development financed with loan or grant funds within the

responsibility of the District Director, the District Director will take

the necessary actions to assure that the borrower or grantee completes

the planned development. For incomplete development financed with loan

or grant funds within the responsibility of the County Supervisor, the

District Director will give the necessary direction to the County

Supervisor to assure completion of the work. In connection with these

responsibilities, the District Director will consider:

(1) The current farm and home operations with respect to the need

for the development as originally planned.

(2) Revisions to the development plan.

(3) Funds remaining in the supervised bank account.

(4) Need for additional funds.

(5) Personal funds that could be furnished by the borrower.

(6) Estimated completion dates.

(7) The borrower's attitude with respect to completing the

development.

(b) After a complete review of the status of development in both the

district and County Offices has been made, the District Director will

make a written report to the State Director which will include

observations and recommendations regarding incomplete development. The

report may be included in the District Director's regular report, and

will include:

(1) The number of cases in which borrowers have not completed their

development within 9, 15 or 24 months when authorized, and also the

number of cases in which funds have been exhausted and the work is

incomplete.

RD Instruction 1924-A

§1924.11 (b) (Con.)

(2) The number of borrowers who have not completed their

development within 3 years from the loan closing, and indicate the

action that was taken in each such case.

after the date of loan closing and the District Director has determined

that the borrower cannot or will not complete the development, the

District Director will so indicate on Form RD 1924-1 and request the

State Director to withdraw, for application on the loan, any unused

development funds remaining in the borrower's supervised bank account,

if the borrower will not sign a check for a refund to the loan account.

§1924.12 Warranty of development work.

(a) Form RD 1924-19, "Builder's Warranty," or an insured 10-year home

warranty as described in Exhibit L of this subpart, and normal trade

warranties on items of equipment will be issued to the borrower at the

completion of new building construction, dwelling rehabilitation by the

contract method, all cases of newly completed and previously unoccupied

dwellings or construction under conditional commitments issued to

builders and sellers.

(b) If the warranty is not an insured 10-year warranty, a completed

Form RD 1924-19 with warranty protection for 1 year, must be provided by

the builder upon final acceptance of the work by the owner and Rural

Development. If an insured 10-year warranty is provided, the

requirements of Exhibit L of this subpart apply, and a copy of the

warranty insurance policy or a binder must have been received by Rural

Development prior to disbursement of the final payment to the builder.

issued, the contractor will be required to execute Form RD 1924-19 and

the case will be forwarded to the State Director for consideration of

debarment under the provisions of Subpart M of Part 1940 (available in

any Rural Development office). The County Supervisor will assist the

borrower to the extent necessary under the provisions of the warranty

and Subpart F of Part 1924 of this chapter. (Revised 4-11-89, SPECIAL

PN)

(d) The County Supervisor will take the following action prior to the

expiration of the first year of the warranty period:

(Revision 1)

(5-12-87) SPECIAL PN

RD Instruction 1924-A

§1924.12 (d) (Con.)

(1) As soon as the warranty has been executed, the follow-up date

for sending Form RD 1924-21, "Notice of Expiration of First Year of

Warranty," which will be used for the 1 year warranty or the first

year of the insured 10-year warranty, will be posted to the

"Servicing and Supervision" section of the Management System card.

(2) Form RD 1924-21, is provided for use in notifying the borrower

of the expiration date of the first year of the warranty. This

letter will be mailed to the borrower early in the second month

preceding the expiration date of the first year of the warranty

period.

(3) If the County Supervisor or District Director does not hear

from the borrower within 30 days, it can reasonably be assumed that

no complaint exists or that any complaint has been satisfied unless

information to the contrary has been received.

(4) If the borrower notifies Rural Development that any complaint

has not been satisfied, an onsite inspection shall be made as early

as possible, but not later than 1 month preceding the expiration

date of the first year of the warranty. The results of the

inspection will be recorded on Form RD 1924-12. If the borrower has

complaints, the case should be handled in accordance with the

provisions of Subpart F of Part 1924 of this chapter, or as

otherwise provided in this subpart.

§1924.13 Supplemental requirements for more complex construction.

This section includes additional provisions that apply to planning and conduct

of construction work on all multiple family housing projects and other

projects that are more extensive in scope and more complex in nature than

individual housing units or farm buildings. This section will apply in

addition to all other requirements contained elsewhere in this subpart.

(a) Architectural services. Complete architectural services, as

defined in §1924.4 (o)(l) of this subpart are recommended on all

projects. They are required for projects involving an LH grant and for

all loans for RRH, RCH, and LH projects consisting of more than 4 units

unless prior consent to making an exception to the requirements for

complete architectural services is obtained from the National Office.

If the applicant or contractor is an architect or organization with

architectural capability, the applicant must, nevertheless, hire an

independent qualified architect or architectural firm to inspect the

construction work and perform other needed services during the

construction and warranty phases. See Guide 4, Attachment 1,

"Attachment to AIA Document - Standard Form of Agreement Between Owner

and Architect," for further information (available in any Rural

Development office).

(Revision 1)

RD Instruction 1924-A

§1924.13 (a) (Con.)

(1) Exception. Any request for National Office consent to an

exception being made for complete architectural services should

include the proposed drawings and specifications, method of

providing specific services, the comments and recommendations of the

Rural Development State Architect, and any other pertinent

information. The State Director must determine that any services

for which an exception is requested can be performed by qualified

State or District Office staff members.

(2) Selecting the architect. The applicant is responsible for

selecting the architect. The District Director with the advice of

the State architect/engineer should discuss with the applicant the

selection of the architect for the job as early as possible to

assist in the site selection and participate in early consultations

regarding project scope and design.

(3) Architectural fees. Fees for architectural services shall not

exceed the fee ordinarily charged by the profession for similar work

when Rural Development financing is not involved. The fee should

cover only the architectural services rendered by the architect.

The reduction or elimination of any services described in paragraph

(a)(5) of this section shall be directly reflected in the fee. Fees

for special services rendered by the architects, such as the

packaging of the loan application or additional nonarchitectural

services, will not be authorized to be paid with loan funds.

(Revised 03-16-94, SPECIAL PN.)

(4) Agreement between borrower and architect. The borrower and

architect will execute a written agreement. The agreement must

provide:

(i) The services listed in paragraph (a)(5) of this section.

(ii) The amount of the fee and how it will be determined and

paid.

(iii) that the agreement and any amendments to the agreement

shall not be in full force and effect until concurred with in

writing by the State Director or the State Director's delegate,

and it will contain the following provision:

(Revision 1)

(05-12-87) SPECIAL PN

RD Instruction 1924-A

§1924.13 (a)(4)(iii) (Con.)

Rural Development, as potential lender or insurer of funds to

defray the cost of this agreement and without liability for any

payments thereunder, hereby concurs in the form, content and

the execution of this agreement.

Date ___________ __________________________

Rural Development Approval Official

__________________________

Title

(5) Specific services. Architectural services will include six

consecutive phases as follows:

(i) Schematic design phase. The architect will:

(A) Consult with the applicant to obtain available

information pertinent to the project requirements.

(B) Consult with Rural Development State

architect/engineer about Rural Development requirements

and procedures.

analyzing engineering and survey data on the site selected

by applicant.

(D) Prepare schematic design studies consisting of

drawings and other documents illustrating the scale and

relationship of project components for the applicant's

approval.

(E) Submit estimates of current development costs based

on current area, volume, or other unit costs.

(F) When the applicant and Rural Development have

accepted the schematic design studies and estimated

development costs, the project architect may be authorized

to proceed with the next phase.

(Revision 1)

(05-12-87) SPECIAL PN

RD Instruction 1924-A

§1924.13 (a)(5) (Con.)

(ii) Design development phase. The architect will:

(A) Prepare the design development exhibits from the

accepted schematic design studies for approval by the

applicant. These exhibits should consist of drawings and

other documents to fix and describe the size and character

of the entire project as to structural, mechanical, and

electrical systems, materials, and other essentials as

appropriate.

(B) Submit a further statement of probable construction

cost.

42A

(Added 03-16-94, SPECIAL PN)

(05-12-87) SPECIAL PN

RD Instruction 1924-A

§ 1924.13(a)(5)(ii) (Con.)

drawings, specifications, and authorization to proceed

with next phase.

(iii) Construction documents phase. The architect will:

(A) Prepare the working drawings and specifications from

the approved design development drawings and set forth in

detail the requirements for the construction of the entire

project in accordance with applicable regulations and

codes; for example, necessary bidding information,

assistance in preparing bidding forms, conditions of the

construction contract, and the form of agreement between

applicant/owner and contractor.

(B) Submit a final and more comprehensive statement of

probable development cost. It should show a breakdown of

the estimated total development cost of the project and

the various trades in enough detail for an adequate

review.

Development for contract documents, including approval of

the final drawings and specifications and authorization to

proceed.

(D) Discuss with the applicant various items as they

develop.

(iv) Bidding or negotiation phase. The architect will, as

appropriate, for a bidded or negotiated contract:

(A) Assist in review and selection of bidders and

submission of contract documents to selected bidders.

(B) Assist in the interpretation of drawings and

specifications, and other contract documents.

(D) Review the bids and the negotiated proposals and

assist in the award and preparation of construction

contracts.

(v) Construction phase. This phase includes the

administration of the construction contract. It will commence

with the award of the construction contract and end when the

borrower makes final payment to the contractor. The architect

will:

(5-12-87) SPECIAL PN

RD Instruction 1924-A

§ 1924.13(a)(5)(v) (Con.)

(A) Attend the preconstruction conference. Advise and

consult with the borrower (or the borrower's

representative) and issue the borrower's instructions to

the contractor.

(B) Prepare change orders.

administrator of the Project during construction.

(D) Interpret the contract documents and have the

authority to reject all work and materials which do not

costly.

(E) Review and approve shop drawings, samples, and other

submissions of the contractor for conformance with the

design concept and for compliance with the contract

documents.

(F) Conduct periodic inspections of all phases of

construction to determine compliance with the contract

documents and certify as to the amount of work that is in

place and materials suitably stored on site for partial

payment estimates. These inspections will be augmented,

when necessary, by inspections performed by structural,

mechanical, and electrical representatives. Periodic

inspections should be made as frequently as is necessary

to verify that the work conforms with the intent of the

contract documents and that a high quality of workmanship

is maintained. The State Director may require a full-time

project representative on projects with a total

development cost of $750,000 or more, when in the opinion

of the State Director there is a need for such

representative, and the State Director states the reasons

for such need to the borrower.

(G) Determine, based on the inspections, the dates of

substantial completion and final completion; receive on

the borrower's behalf all written guarantees and related

documents assembled by the contractor; and issue a final

certificate for payment.

RD Instruction 1924-A

§ 1924.13(a)(5) (Con.)

(vi) Warranty phase. The architect will advise and consult

with the borrower, as the borrower's representative, about

items to be corrected within the warranty period. The

architect will accompany the Rural Development representative

during the inspection required one month prior to expiration of

the warranty period.

(b) Other professional services. The State Director, on the

recommendation of the State architect/engineer, may request that

additional professional services be provided.

(1) Professional services typically include soils engineering,

structural engineering, civil engineering, surveying, land planing,

or professional cost estimation or certification. Fees for these

services may be paid directly by the borrower or by the architect as

reimbursable expenses.

(2) When a project representative is utilized, unless otherwise

agreed, the representative will be provided by the consulting

architect/engineer. Prior to the preconstruction conference, the

architect/engineer will submit a resume of qualifications of the

project representative to the applicant and to Rural Development for

acceptance in writing. If the applicant provided the project

representative, the applicant must submit a resume of the

representative's qualifications to the project architect/engineer

and Rural Development for acceptance in writing, prior to the

preconstruction conference. The project representative will attend

the preconstruction conference where duties and responsibilities

will be fully discussed. The project representative will work under

the general supervision of the architect/engineer. The project

representative will maintain a daily diary in accordance with the

following:

(i) The diary shall be maintained in a hard-bound book.

(ii) The diary shall have all pages numbered and all entries

in ink.

(iii) All entries shall be on daily basis, beginning with the

date and weather conditions.

(iv) Daily entries shall include daily work performed, number

of men and equipment used in the performance of the work, and

all significant happenings during the day.

(5-12-87) SPECIAL PN

RD Instruction 1924-A

§ 1924.13(b)(2) (Con.)

(v) The diary shall be made available to Rural Development

personnel and will be reviewed during project inspections.

(vi) The project representative's diary will become the

property of the owner after the project is accepted and final

payments are made .

with Exhibit C of this subpart and Subpart D of Part 1944 of this

chapter.

(1) The drawings must be clear, accurate, with adequate dimensions

and of sufficient scale for estimating purposes.

(2) Construction sections and large-scale details sufficient for

accurate bidding and for the purpose of correlating all parts of the

work should be part of the general drawings. This is particularly

important where the size of a project makes necessary the

preparation of the general drawings at a scale of 1/8 inch equals 1

foot or less.

(3) Mechanical and electrical work should be shown on separate

plans.

(4) Schedules should be provided for doors, windows, finishes,

electrical fixtures, finish hardware, and any other specialty items

necessary to clarify drawings.

(d) Specifications. Trade-type specifications (specifications divided

into sections for various trades) should be used. The specifications

should be complete, clear, and concise, with adequate description of the

various classes of work shown under the proper sections and headings.

(e) Methods of administering construction. Projects involving a total

development cost of less than $100,000 which do not include an LH grant

may, with the approval of the State Director, follow the contract

procedure in § 1924.6(a) of this subpart without modification.

Construction of all other projects, however, will be administered by the

contract method or owner-builder method as set forth in this section.

RD Instruction 1924-A

§ 1924.13(e) (Con.)

(1) Contract method. This method of development will be used for

all complex construction except in cases where owner-builder method

is authorized. Development under this method is done in accordance

with §1924.6(a) of this subpart except as modified by this

paragraph. All construction work will be completed under one

written construction contract. Guide 1, "Contract Documents," of

this subpart (available in any RHS office) is provided to assist RHS

personnel and applicants in assembling and reviewing contract

documents for more complex construction such as that administered

under this section.

(i) Competitive bidding methods.

(A) All construction contracts must be awarded on the

basis of competitive bidding unless an exception is

granted in accordance with paragraph (e)(1)(vii) of this

section thereby permitting contract negotiation. The

applicant's architect should prepare the bidding

documents. Public notice must be given inviting all

interested bidders to submit a bid. Prospective bidders

may be contacted asking for their bids; however, public

notice is necessary so that all local contractors have the

opportunity to submit bids.

(B) A bid bond is required from each bidder in the amount

of 5 percent of the bid price as assurance that the bidder

will, upon acceptance of the bid, execute the required

contract documents within the time specified.

the contract cost, and all conditions listed in the

"Invitation for Bid."

(D) If advertising does not provide a satisfactory bid in

the opinion of the applicant and RHS, the applicant shall

reject all bids and will then be free to negotiate with

bidders or anyone else to obtain a satisfactory contract.

The following conditions must be met:

(1) The State Director determines that the original

competitive bid process was handled in a satisfactory

manner and that there is no advantage to advertising

for competitive bid again.

(2) The requirements of paragraph (e)(1)(vii) of

this section are met.

(Revision 1)

(5-12-87) SPECIAL PN

RD Instruction 1924-A

§1924.13(e)(1)(i) (Con.)

(E) If there is no agreement by RHS and the applicant as

to the construction cost, the State Director will cease

any further action on the preapplication and inform the

applicant of the right to appeal in accordance with

subpart B of part 1900 of this chapter.

(Revised 10-30-96, PN 267.)

(ii) Contract documents. Contract documents will conform with

recognized professional practices as prescribed in this

paragraph. Such contract documents will contain substantially

the following:

Item I Invitation for Bid (Construction Contract)

(Form RD 1924-5)

Item II Information for Bidders

Item III Bid

Item IV Bid Bond

Item V Agreement (Construction Contract)

Item VI Compliance Statement (Form RD 400-6)

Item VII General Conditions

Item VIII Supplemental General Conditions

Item IX Payment Bond (Exhibit F of this subpart)

Item X Performance Bond (Exhibit G of this subpart)

Item XI Notice of Award

Item XII Notice to Proceed

Item XIII Drawings and Specifications

Item XIV Addenda

Item XV Contract Change Order (Form RD 1924-7)

Item XVI Labor Standards Provisions (where applicable)

(Revised 10-30-96, PN 267.)

(Revision 1)

RD Instruction 1924-A

§1924.13 (e) (1) (ii) (Con.)

Item XVII Monthly Employment Utilization Report

(Form CC-257)

Item XVIII Partial Payment Estimate (Form

RD 1924-18)

Item XIX Builder's Warranty (Form RD 1924-19)

(A) Substitution of term "architect" for "engineer" may

be necessary on some of the forms. Other modifications

may be necessary in some cases to conform to the nature

and extent of the project. All such contract documents

and related items will be concurred with by the State

Director, with the assistance of OGC prior to the release

of invitations to bid.

(B) Items listed as I through IV and item XI of paragraph

(e)(1)(ii) of this section may be omitted when an

exception to the competitive bidding requirement is

granted in accordance with paragraph (e)(1)(vii) of this

section, thereby permitting a negotiated contract.

the effect that the borrower, USDA, the Comptroller

General of the United States, or any of their duly

authorized representatives, shall have access to any

books, documents, papers, and records of the contractor

which are directly pertinent to a specific Federal loan

program for the purpose of making audit, examination,

excerpts, and transcriptions.

(D) A provision for liquidated damages will be included

in all contracts. The liquidated damage amount must be

reasonable and represent the best estimate possible of how

much interest or other costs will accrue on the loan, and

also represent any loss of rent or other income which

would result from a delay in the completion of the project

beyond the estimated completion date.

(E) All contracts shall include a provision for

compliance with the Copeland "Anti-Kickback" act (18

U.S.C. 874) as supplemented in Department of Labor

regulations (29 CFR Part 3). This Act prohibits anyone

from inducing any person in connection with the

construction to give up any part of the compensation to

which the person is otherwise entitled.

(Revision 1)

(5-12-87) SPECIAL PN

RD Instruction 1924-A

§1924.13 (e) (1) (ii) (Con.)

(F) All contracts will contain a certification by the

applicant indicating that there is not now nor will there

be an identity of interest between the applicant and any

of the following: Contractor, architect, engineer,

attorney, subcontractors, material suppliers, equipment

lessors, or any of their members, directors, officers,

stockholders, partners, or beneficiaries unless

specifically identified to Rural Development in writing

prior to the award of the contract. All contracts must

also indicate that when any identity of interest exists or

comes into being, the contractor agrees to have

construction costs as reported to Rural Development on

Form 1924-13, "Estimate and Certificate of Mutual Cost"-

audited by a Certified Public Accountant (CPA) or Licensed

Public Accountant (LPA) licensed prior to December 31,

1970, who will provide an opinion as to whether the Form

RD 1924-13 presents fairly the costs of construction in

conformity with eligible construction costs as prescribed

in Rural Development regulations. (Revised 8-12-87,

PN 60.)

(G) All contracts on any form other than Form RD 1924-6,

must contain the language of clause (D) of Form RD 1924-6,

which is available in all Rural Development offices. The

language of clause (D) of Form RD 1924-6 sets forth the

Notice of Requirement for Affirmative Action to Ensure

Equal Employment Opportunity required by Executive Order

11246, the Equal Opportunity clause published at 41 CFR

60-1.4 (a) and (b), and the Standard Federal Equal

Employment Opportunity Construction Contract

Specifications required by Executive Order 11246. For

contract forms other than Form RD

1924-6, Form AD 767, "Equal Employment Opportunity

Contract Compliance Notices," which can be obtained from

the Finance Office, should be attached and made a part of

the contract.

(H) All contracts will contain a provision that they are

not in full force and effect until concurred with by the

State Director or the State Director's delegate, in

writing. Therefore, before loan closing or before the

start of construction, whichever occurs first, the State

Director or the State Director's delegate will concur in

the contract form, content, and execution if acceptable,

by including the following paragraph at the end of the

contract:

(Revision 1)

RD Instruction 1924-A

§ 1924.13(e)(1)(ii)(H) (Con.)

Rural Development, as potential lender or insurer of funds

to defray the costs of this contract, are without

liability for any payments thereunder, hereby concurs in

the form, content, and execution of this contract.

Date ___________ _________________________

Rural Development Official

_________________________

Title

(I) The requirements of §1924.6 (a)(11)(iv) of this

subpart apply to all contracts or subcontracts in excess

of $10,000.

(iii) Surety. When multiple advances of loan or grant funds

are utilized, surety that guarantees both payment and

performance in the full amount of the contract will be provided

in accordance with §1924.6 (a)(3)(ii) of this subpart.

Exceptions to the surety requirements shall be governed by the

following:

(A) In accordance with the guidance and recommendations

of OMB Circulars A-102 and A-110, exceptions to the surety

requirements of §1924.6 (a)(3)(ii) of this subpart will

not be granted for nonprofit organization or public body

applicants.

(B) For loans or grants to applicants other than non-

profit organizations or public bodies that are within the

State Director's approval authority, the State Director

may, upon request of the borrower or grantee, grant

exceptions to the surety requirements in accordance with

the provisions of §1924.6 (a)(3)(iii) of this subpart.

Before granting such an exception, however, the State

Director should be provided the following information from

the proposed contractor in order to fully evaluate the

experience and capabilities of the contractor:

(1) A resume indicating the contractor's history,

ability and experience.

(Revision 1)

(05-12-87) SPECIAL PN

RD Instruction 1924-A

§ 1924.13(e)(1)(iii)(B) (Con.)

(2) A current, dated, and signed financial statement

of the contractor's operations indicating the payment

status of accounts and any contingent liabilities

that may exist. Rural Development personnel will be

responsible for analyzing the financial statement as

to the sufficiency of the contractor's financial

capability to carry out construction. The financial

strength must demonstrate the ability of the

contractor to pay all bills prior to receiving

periodic draws of funds from the lender. (Revised

03-16-94, SPECIAL PN.)

(3) A credit report (obtained at no expense to Rural

Development) attesting to the contractor's credit

standing.

(4) A listing of trade references that could be

contacted to substantiate the contractor's experience

and good standing.

(5) Statements from owners for whom the contractor

has done similar work, indicating the scope of the

work and the owner's evaluation of the contractor's

performance.

profit organization or public bodies that are in excess of

the State Director's approval authority, the State

Director may request National Office authorization to

grant one of the exceptions to the surety requirements as

indicated in §1924.6 (a)(3)(iii) of this subpart. The

following information must be submitted with the request

to the National Office:

(1) An explanation of why interim financing is not

available.

(2) An explanation of why the proposed contractor

cannot obtain surety bonds meeting the requirements

of §1924.6 (a)(3)(ii) of this subpart.

(3) The information listed in paragraph

(e)(1)(iii)(B) of this section.

(4) The drawings and specifications for the proposed

project, together with the comments of the State

architect/engineer.

(Revision 1)

§1924.13 (e)(1)(iii)(C) (Con.) RD Instruction 1924-A

(5) The applicant's written request for an

exception.

(6) An explanation of why the requirements of

§1924.6 (a)(3)(iii)(A) or (B) of this subpart cannot

be met in those cases where the State Director

requests authorization to grant an exception as

indicated in §1924.6 (a)(3)(iii)(C) of this subpart.

When such a request is made, the documentation must

also be forwarded.

(7) The State Director's recommendation.

(D) Adequate steps will be taken to protect the interests

of the borrower and the government in accordance with the

payment provisions of § 1924.6(a)(12)(i) of this subpart

and any alternative as outlined in §1924.6 (a)(3)(iii)(C)

of this subpart.

(iv) Contract cost breakdown. In any case where the loan

approval official feels it appropriate, and prior to the award

or approval of any contract in which there is an identity of

interest as defined in §1924.4 (i) of this subpart, the

contractor and any subcontractor, material supplier or

equipment lessor sharing an identity of interest must provide

the applicant and Rural Development with a trade-item cost

breakdown of the proposed contract amount for evaluation. The

cost of any surety as required by §1944.222 (h) and (i) of

Subpart E of Part 1944 of this chapter and §1924.6 (a)(3) of

this subpart, or cost certification as required by §1924.13

(e)(1)(v) of this section, will be included in the proposed

contract amount and shown under General Requirements on Form RD

1924-13, which is available in all Rural Development offices.

Rural Development personnel will be responsible for reviewing

the estimates on Form RD 1924-13 to determine if the dollar

amounts total correctly, to assure that costs are categorized

under their appropriate columns, and to confirm that the

estimated costs for all line items are reasonable and customary

for the State. (Revised 03-16-94, SPECIAL PN.)

(v) Cost certification. Whenever the State Director

determines it appropriate, and in all situations where there is

an identity of interest as defined in §1924.4 (i) of this

subpart, the borrower, contractor and any subcontractor,

material supplier, or equipment lessor having an identity of

interest must each provide certification using Form RD

1924-13 as to the actual cost of the work performed in

connection with the construction

(Revision 3)

(05-12-87) SPECIAL PN

RD Instruction 1924-A

§1924.13 (e)(1)(v) (Con.)

contract. The construction costs, as reported on Form RD 1924-

13, must also be audited, in accordance with Government

Auditing Standards, by a CPA, or LPA licensed on or before

December 31, 1970. In addition, certain agreed upon procedures

(available in any Rural Development office) will be performed

in accordance with Attestation Standards. In some cases, Rural

Development will contract directly with a CPA or LPA for the

cost certification. In that event, documentation necessary to

have the costs of construction certified by an Rural

Development contractor that they were the actual costs of the

work performed, as reported on Form RD 1924-13, will be

provided. Funds which were included in the loan for cost

certification and which are ultimately not needed because Rural

Development contracts for the cost certification will be

returned on the loan. Rural Development personnel will utilize

Exhibit M of this subpart (available in any Rural Development

office) and Form RD 1924-26, "Cost Certification Worksheet," to

assist in the evaluation of the cost certification process.

(Revised 03-16-94, SPECIAL PN.)

(A) Prior to the start of construction, the borrower,

contractor and any subcontractor, material supplier, or

equipment lessor sharing an identity of interest must

submit, to the CPA or LPA, the accounting system that the

borrower, contractor, subcontractor, material supplier, or

equipment lessor and/or the CPA or LPA proposes to set up

and use in maintaining a running record of the actual

cost. In order to be acceptable, the borrower must

provide a written assertion that it has an accounting

system that is suitably designed to provide for a trade-

item basis comparison of the actual cost as compared to

the estimated cost submitted on Form RD 1924-13. Costs

pertaining to a specific line item will be set up in the

accounting system for that particular account. For

instance, only costs of materials, supplies, equipment,

and labor associated with concrete will be shown in the

concrete account. The accounting system must also

restrict costs to those pertaining to a specific project

so that costs from multiple projects will not be co-

mingled. The independent CPA or LPA shall report on the

borrower's assertion in accordance with the Standards for

Attestation Engagements of the American Institute of

Certified Public Accountants (AICPA). The borrower's and

the CPA or LPA's reports on the accounting system shall be

provided to Rural Development by the borrower.

(Revision 3)

RD Instruction 1924-A

§1924.13 (e)(1)(v) (Con.)

(B) Prior to final payment to anyone required to cost

certify, a trade-item breakdown showing the actual cost

compared to the estimated cost must be provided to the

owner and Rural Development. Form RD 1924-13 is the form

of comparative breakdown that must be used, and contains

the certifications required of the applicant and

contractor prior to final payment. The amounts for

builder's general overhead, builder's profit, and general

requirements, respectively, shall not exceed the amounts

represented on the estimate of cost breakdown provided in

accordance with paragraph (e)(1)(iv) of this section for

any contractor, subcontractor, material supplier, or

equipment lessor having or sharing an identity of interest

with the borrower. The amounts for general overhead,

builder's profit, and general requirements must be

estabished prior to Rural Development approving the

construction contract and will not be changed during the

course of construction. This applies to all contractors,

subcontractors, material suppliers, or equipment lessors

having or sharing an identity of interest with the

applicant. Contract change orders will be processed to

adjust the contract amount downward prior to the final

payment to the contractor, if necessary, to assure that

the amounts shown in the certificate of actual costs do

not exceed the amounts represented in the contract cost

breakdown. Reduction in the builder's profit, and general

overhead if needed, will counterbalance any increase

reflected in the contract costs. Any funds remaining as a

result of hard cost savings will be applied to the account

as an extra payment or used for eligible loan purposes

approved by Rural Development as long as the improvements

are genuinely needed and will enhance marketability of the

project. All increases or decreases of 15 percent or more

in line item costs will require documentation as to the

reason for the increases and/or decreases. The State

Director may require documentation for increases and/or

decreases of less than 15 percent, if he/she determines it

necessary. This information will be required with the

cost certification.

Government Auditing Standards, will include such tests of

the accounting records and such other auditing procedures

of the borrower and the contractor (and any subcontractor,

material supplier, or equipment lessor sharing an identity

of interest)

(Revision 3)

(05-12-87) SPECIAL PN

RD Instruction 1924-A

§1924.13 (e)(1)(v)(C) (Con.)

concerning the work performed, services rendered, and

materials supplied in accordance with the construction

contract he/she considers necessary to express an opinion

on the construction costs as reported on Form RD 1924-13.

The CPA or LPA shall also perform the additional agreed

upon procedures specified by Rural Development (available

in any Rural Development office), performed in accordance

with Attestation Standards, for the applicant and the

contractor (and any subcontractor, material supplier, or

equipment lessor sharing an identity of interest)

concerning the work performed, services rendered, and

materials supplied in accordance with the construction

contract.

(D) Upon completion of construction and prior to final

payment, the CPA or LPA will provide an opinion concerning

whether the construction costs, as reported on Form RD

1924-13, present fairly the costs of construction in

conformity with eligible construction costs as prescribed

in Rural Development regulations.

(E) In some cases, cost certification will be obtained by

Rural Development through direct contract with the CPA or

LPA. The borrower and his/her CPA or LPA will cooperate

fully with the contract CPA or LPA by providing all

documentation necessary to conduct the certification.

Rural Development reserves the right to determine, upon

receipt of the certified Form RD 1924-13 and the auditor's

report, whether they are satisfactory to Rural

Development. If not satisfactory to Rural Development,

the borrower will be responsible for providing additional

information.

(F) There will exist no business relationship between the

CPA or LPA and the borrower except for the performance of

the examination of the cost certification, accounting

systems work, and tax preparation. Any CPA or LPA who

acts as the borrower's accountant (performing manual or

automated bookkeeping services or maintains the official

accounting records) will not be the same CPA or LPA who

cost certifies the project.

(G) Forms RD 1944-30, "Identity of Interest (IOI)

Disclosure Certificate" and RD 1944-31, "Identity of

Interest (IOI) Qualification Form," provide written

notification to the borrower that willful and intentional

falsification of cost certification documents will result

in debarment of all violators

(Revision 3)

RD Instruction 1924-A

§1924.13 (e)(1)(v)(G) (Con.)

in accordance with the provisions of RD Instruction 1940-M

(available in any Rural Development office). These forms

require the disclosure of all identities of interest

associated with project construction, certify the entity's

ability to provide the contracted service, and cite the

penalties for failure to disclose or falsify such

certification. Each applicant/borrower will be required

to complete and sign the forms (available in any Rural

Development office).

(H) Subcontracting development work.

(1) Contractors will not be allowed to obtain a

profit and overhead unless they are performing actual

construction. "Actual construction" means "work" as

defined in American Institute of Architects (AIA)

documents: "... labor, materials, equipment, and

services provided by the contractor to fulfill the

contractor's obligations." Under this definition,

contractors who choose to subcontract out

construction of the project to another contractor

will not obtain a builder's fee (general overhead and

profit) when:

(i) More than 50 percent of the contract sum in

the construction contract is subcontracted to

one subcontractor, material supplier, or

equipment lessor, and/or

(ii) Seventy-five percent or more with three or

fewer subcontractors, material suppliers, and/or

equipment lessors.

(2) Note: If two or more subcontractors have common

ownership, they are considered as one subcontractor.

(3) How to apply rule:

(i) The 50 percent rule will apply when

division of the amount of the largest

subcontract by the contract sum of the

construction contract results in more than 50

percent.

(Revision 1)

(05-12-87) SPECIAL PN

RD Instruction 1924-A

§1924.13 (e)(1)(v)(H)(3) (Con.)

(ii) The 75 percent rule will apply when

division of the sum of the amounts of the three

largest subcontracts by the contract sum of the

construction contract results in 75 percent or

more.

(I) Qualified contracting entities. Contractors,

subcontractors, material suppliers, and any other

individual or organization sharing an identity of interest

and providing materials or services for the project must

certify that it is a viable, ongoing trade or business

qualified and properly licensed to undertake the work for

which it intends to contract. Form RD 1944-31 will be

prepared and executed by the contracting entities. The

form provides notification to the entities of the penalty,

under law, for erroneously certifying to the statements

contained therein. Debarment actions will be instituted

against entities who fail to disclose an identity of

interest in accordance with the provisions of RD

Instruction 1940-M (available in any Rural Development

office).

(vi) Method of payments. Partial payments may be requested in

accordance with the terms of the construction contract on Form

RD 1924-18, "Partial Payment Estimate," or other professionally

recognized form that contains the architect's certification,

approval of the owner, and conditional acceptable of Rural

Development as shown in Form RD 1924-18.

(A) If interim financing is available at reasonable rates

and terms for the construction period, such financing

shall be obtained. Exhibit B of Subpart E of Part 1944 of

this chapter shall be used to inform the interim lender

that Rural Development will not close its loan until the

project is substantially complete, ready for occupancy,

evidence is furnished indicating that all bills have been

paid or will be paid at loan closing for work completed on

the project, all inspections have been completed and all

required approvals have been obtained from municipal and

governmental authorities having jurisdiction over the

project. Upon presentation of proper partial payment

estimates approved by the applicant and accepted by Rural

Development, the interim lender may advance construction

funds in accordance with the payment terms of the

contract. It is suggested that partial payments not

exceed 90 percent of the value of work in place and

materials suitably stored on site. (Revised 2-25-88,

SPECIAL PN.)

(Revision 1)

RD Instruction 1924-A

§1924.13 (e)(1)(vi) (Con.)

(B) When interim financing is not available, payments

will be made in accordance with §1924.6(a)(12) of this

subpart.

(vii) Exception to competitive bidding.

(A) For all applicants. An applicant may negotiate a

construction contract provided the State Director grants

an exception and documentation shows that:

(1) The contract price is competitive with other

projects similar in construction and design being

built in the area.

(2) The proposed contractor is experienced in

construction of projects of similar size, scope, and

complexity, and is recognized as a reliable builder.

(3) The proposed development work meets all

requirements of this subpart.

(4) If appropriate for nonprofit organizations and

public bodies, the application provides a copy of a

duly authorized resolution by its governing body

requesting Rural Development to permit awarding the

construction contract without formal bidding.

(5) The applicant is permitted by state law, local

law and/or organizational by-laws to negotiate a

construction contract.

(6) The requirements of paragraphs (e)(1)(ii),

(iii), (iv) and (v) of this section are met.

(B) In considering an exception to competitive bidding,

the following additional steps will be taken in all cases.

(1) If, after a full review of the case documents by

the appropriate members of the State Office staff,

the State Director determines that the requirements

have been met and the costs are reasonable, an

exception to competitive bidding may be granted.

Written documentation of the State Office review

results will be placed in the application file.

(Revised 03-16-94, SPECIAL PN.)

(Revision 1)

(05-12-87) SPECIAL PN

RD Instruction 1924-A

§1924.13 (e)(1)(vii)(B) (Con.)

(2) If after the full review by the State Office

staff, the State Director determines that the

negotiated contract price is not competitive with

other similar projects in construction and design

being built in the area, the applicant will be

requested to competitively bid the construction of

the project in accordance with paragraph (e)(1)(i) of

this section.

(3) If there is no agreement by Rural Development

and the applicant as to the construction cost, the

State Director will cease any further action on the

preapplication and inform the applicant of the right

to appeal in accordance with Subpart B of Part 1900

of this chapter.

that are not covered in this section may be submitted to

the National Office for consideration.

(viii) Exception to contract method - public body. With the

approval of the National Office, the State Director may grant

to a public body an exception to the requirement for using

contract method construction under the following circumstances:

(A) The loan or grant is for repair or rehabilitation of

existing facilities and it is not practicable to perform

all work by the contract method.

(B) The applicant has the managerial ability and

qualified employees necessary to complete the work

successfully.

District Director indicating:

(1) The scope of work and construction timetable;

(2) What phases of work can be contracted and what

cannot;

(3) Why is it not practicable to contract all

phases;

(4) Management ability and employee qualifications

for performing the work;

(Revision 1)

RD Instruction 1924-A

§1924.13 (e)(1)(viii)(C) (Con.)

(5) Proposed method of fund control and frequency of

payments;

(6) How changes in scope of work and construction

timetable will be approved; and,

(7) Proposed method of certifying progress and

requesting payments.

(D) The request, recommendations of the District

Director, appropriate members of the State Office staff

and the State Director and the application file will be

sent to the National office.

(2) Owner-builder method. This method of development is used only

when requested by profit or limited profit RRH applicants when the

applicant or any of its controlling principals (such as

stockholders, members, partners other than limited partners,

directors, or officers), are general contractors by profession, and

will serve as the builder of the project without a written

construction contract. The State Director may make an exception to

the contract method of construction and authorize proceeding by the

owner-builder method of construction in accordance with the

provisions of this section if the amount of the loan(s) does not

exceed the State Director's approval authority. For projects over

the State Director's authority, prior written consent of the

National office is required. In such cases, the drawings,

specifications, cost estimates, copy of the State

Architect/Engineer's review and detailed information on the

applicant's qualifications will be submitted to the National Office

along with the State Director's recommendations.

(i) The applicant's request to construct a project by the

owner-builder method of construction shall be in the form of a

letter giving specific and detailed information concerning the

owner-builder's proposal, and the qualifications and past

experience of the owner-builder. The following information

must be included with the request:

(A) A resume indicating the owner-builder's history,

ability, and experience.

(B) Dated and signed financial statements on the owner-

builder's operation (including balance sheets and

statements of income and expense) from current and prior

years indicating the payment status of the owner-builder's

accounts and any contingent

(Revision 1)

(05-12-87) SPECIAL PN

RD Instruction 1924-A

§1924.13 (e)(2)(i)(B) (Con.)

liabilities that may exist. Rural Development personnel

will be responsible for analyzing the financial statement

as to the sufficiency of the owner-builder's financial

capability to carry out construction. The financial

strength must demonstrate the ability of the owner-builder

to pay all bills prior to receiving periodic draws of

funds from the lender. (Revised 03-16-94, SPECIAL PN.)

provide any funds necessary in excess of the applicant's

contribution and the loan amount to complete the project.

(D) A credit report (obtained at no expense to Rural

Development) attesting to the owner-builder's credit

standing.

(E) A listing of trade references that could be contacted

to substantiate the owner-builder's experience and good

standing.

(F) Statements from other persons for whom the

owner-builder has done similar work, indicating the scope

of the work and that person's evaluation of the owner-

builder's performance.

(G) A current, dated, and signed trade-item cost

breakdown of the estimated total development cost of the

project which has been prepared by the applicant/owner-

builder. Form RD 1924-13 will be used for this purpose.

If cost certification services are required by Rural

Development, the cost of such services may be included in

the total development cost of the project. Any

subcontractor, material supplier, or equipment lessor

sharing an identity of interest with the applicant/owner-

builder as defined in §1924.4 (i) of this subpart must

also provide a trade-item cost breakdown of the proposed

amount. (Revised 03-16-94, SPECIAL PN.)

(H) Prior to the start of construction, the owner-builder

and any subcontractor, material supplier, or equipment

lessor sharing an identity of interest must submit, to the

CPA or LPA, the accounting system that the owner-builder,

subcontractor, material supplier, or equipment lessor

and/or the CPA or LPA proposes to set up and use in

maintaining a running record of the actual cost. In order

to be acceptable, the owner-builder must provide a written

assertion that it has

(Revision 1)

RD Instruction 1924-A

§1924.13 (e)(2)(i)(H) (Con.)

an accounting system that is suitably designed to provide

for a trade-item basis comparison of the actual cost as

compared to the estimated cost submitted on Form RD 1924-

13. Costs pertaining to a specific line item will be set

up in the accounting system for that particular account.

For instance, only costs of materials, supplies,

equipment, and labor associated with concrete will be

shown in the concrete account. The accounting system must

also restrict costs to those pertaining to a specific

project so that costs from multiple projects will not be

co-mingled. The independent CPA or LPA shall report on

the owner-builder's assertion in accordance with the

Standards for Attestation Engagements of the AICPA. The

owner-builder's and the CPA or LPA's reports on the

accounting system shall be provided to Rural Development

by the owner-builder. (Revised 03-16-94, SPECIAL PN.)

(I) A written, dated, and signed statement agreeing to

permit U.S. Department of Agriculture, the Comptroller

General of the United States, or any of their duly

authorized representatives, to have access to any books,

documents, papers, and records which are directly

pertinent to the specific Federal program for the purpose

of making audit, examination, excerpts and transcriptions.

(ii) In order to grant an exception to the contract method of

construction and proceed with the owner-builder method of

construction, the State Director must determine that the

following conditions exist:

(A) The applicant or at least one of its principals is a

fully qualified and licensed (if necessary under

applicable local law) builder by profession, has adequate

experience in constructing the type of units proposed as

well as projects of similar size, scope, and complexity

and will be able to complete the work in accordance with

the Rural Development approved drawings and

specifications.

(B) Based upon the information presented in the

applicant's financial statements, the applicant is

presently able and is likely to continue to be able to

provide any funds necessary in excess of the applicant's

contribution and the loan amount to complete the project.

(Revision 2)

(05-12-87) SPECIAL PN

RD Instruction 1924-A

§1924.13 (e)(2)(ii) (Con.)

exceed that which is typical for similar type projects in

the area. The total development cost recognized by Rural

Development for each individual case will be determined by

the MFH Coordinator with the advice of the State

Architect. (Revised 03-16-94, SPECIAL PN.)

(D) The owner-builder has provided sufficient information

on all contracts or subcontracts in excess of $10,000 to

permit compliance with §1924.6 (a)(11)(iv) of this

subpart.

(iii) In addition to the requirements for the State Director

to authorize the owner-builder method of construction as

indicated in §1924.13 (e)(2)(i) and (ii) of this subpart, the

following additional steps will be taken by the State Director.

(A) If, after a full review of the case documents by the

appropriate members of the State Office staff, the State

Director determines that the requirements have been met

and the construction cost is reasonable, an exception to

competitive bidding may be granted. Written documentation

of the State Office review results will be placed in the

application file.

(Revised 03-16-94, SPECIAL PN.)

(B) If, after the full review by the State Office staff,

the State Director determines that the construction cost

is not competitive with other similar projects in

construction and design being built in the area, the

applicant will be requested to competitively bid the

construction of the project in accordance with paragraph

(e)(1)(i) of this section.

applicant as to construction cost and the applicant is not

agreeable to any of the aforementioned alternatives, the

State Director will cease any further action on the

preapplication and inform the applicant of the right to

appeal, in accordance with Subpart B of Part 1900 of this

chapter.

(iv) The development cost of the project may include a typical

allowance for general overhead, general requirements and a

builder's profit. These amounts may be determined by local

investigation and also from HUD data

(Revision 2)

RD Instruction 1924-A

§1924.13 (e)(2)(iv) (Con.)

for the area. The applicant/owner-builder and any

subcontractors, material suppliers, and equipment lessors

having or sharing an identity of interest with the

applicant/owner-builder may not be permitted a builder's

profit, general overhead, and general requirements which exceed

the amounts represented on their cost breakdown. (Revised 03-

16-94, SPECIAL PN.)

(v) Under no circumstances will loan funds be used to pay the

owner-builder or its stockholders, members, directors or

officers, directly or indirectly, any profits from the

construction of the project except a typical builder's fee for

performing the services that would normally be performed by a

general contractor under the contract method of construction.

Discounts and rebates given the owner-builder in advance must

be deducted before the invoices are paid. If discounts or

rebates are given after the invoices are paid, the funds must

be returned to the supervised bank account or applied on the

interim construction loan, as appropriate. Under no

circumstances will the dollar amount be placed in the reserve

account. (Revised 03-16-94, SPECIAL PN.)

(vi) The plans and specifications must be specific and

complete so that there is a clear understanding as to how the

facility will be constructed and the materials that will be

used.

(vii) When architectural services are required by §1924.13(a)

during the construction and warranty phases they must be

provided by an architect who has no identity of interest with

the applicant/owner-builder. The services to be rendered

during the construction and warranty phases include, but are

not limited to inspections, changes in the scope of project or

work to be done, administration of construction accounts,

rejection of work and materials not conforming to the Rural

Development approved drawings and specifications, and other

appropriate service listed in §1924.13 (a)(5)(v) and (vi) of

this subpart.

(viii) The applicant/owner-builder and any subcontractor,

material supplier, or equipment lessor sharing an identity of

interest as defined in §1924.4 (i) of this subpart must each

provide certification as to the actual cost of the work

performed in connection with the construction of the project on

Form RD 1924-13 prior to final payment. The construction

costs, as reported on Form RD 1924-13, must be audited by a

CPA, or LPA licensed on or before

(Revision 2)

(05-12-87) SPECIAL PN

RD Instruction 1924-A

§1924.13 (e)(2)(viii) (Con.)

December 31, 1970, in accordance with Government Auditing

Standards, and certain agreed upon procedures (available in any

Rural Development office) performed in accordance with

Attestation Standards. In some cases, Rural Development will

contract directly with a CPA or LPA for the cost certification.

In that event, documentation necessary to have the costs of

construction certified by an Rural Development contractor that

they were the actual costs of the work performed, as reported

on Form RD 1924-13, will be provided. Funds which were

included in the loan for cost certification and which are

ultimately not needed because Rural Development contracts for

the cost certification will be returned on the loan. (Revised

03-16-94, SPECIAL PN.)

(A) The CPA or LPA's audit, performed in accordance with

Government Auditing Standards, will include such tests of

the accounting records and such other auditing procedures

of the applicant/owner-builder (and any subcontractor,

material supplier, or equipment lessor sharing an identity

of interest) concerning the work performed, services

rendered, and materials supplied in connection with the

construction of the project he/she considers necessary to

express an opinion on the construction costs as reported

on Form RD 1924-13. Upon completion of construction and

prior to final payment, the CPA or LPA will provide an

opinion as to whether the construction costs as reported

on Form RD 1924-13 present fairly the costs of

construction in conformity with eligible construction

costs as prescribed in Rural Development regulations.

Rural Development reserves the right to determine, upon

receipt of the certified Form RD 1924-13 and the auditor's

report, whether they are satisfactory to Rural

Development. At a minimum, the CPA or LPA shall also

perform any additional agreed upon procedures (available

in any Rural Development office) specified by Rural

Development, performed in accordance with Attestation

Standards, of the owner-builder (and any subcontractor,

material supplier, or equipment lessor sharing an identity

of interest) concerning the work performed, services

rendered, and materials supplied in connection with the

construction. There will exist no business relationship

between the CPA or LPA and the borrower except for the

performance of the examination of the cost certification,

accounting systems work, and tax preparation. Any CPA or

LPA who acts as the borrower's accountant (performing

manual or automated bookkeeping services or maintains the

official accounting records) will not be the same CPA or

LPA who cost certifies the project.

(Revision 2)

RD Instruction 1924-A

§1924.13 (e)(2)(viii) (Con.)

(B) Prior to final payment to anyone required to cost

certify, Rural Development must be provided with a

certification and a trade-item breakdown showing the

actual cost compared to the estimated cost furnished in

accordance with paragraph (e)(2)(i)(G) of this section.

Form RD 1924-13 is the form of comparative breakdown that

must be used, and contains the certification required of

the applicant/owner-builder prior to final payment. The

amounts for builder's general overhead, general

requirements, and builder's profit shall not exceed the

amounts represented on the estimate of cost breakdown

provided in accordance with paragraph (e)(2)(i)(G) of this

section for the owner-builder or any subcontractor,

material supplier, or equipment lessor having or sharing

an identity of interest with the applicant/owner-builder.

Final payment to the owner-builder will be adjusted, if

necessary, to assure that the amounts shown on the

certificate of actual cost do not exceed the amounts

represented on the cost breakdown. Any funds remaining as

a result of hard cost savings will be applied to the

account as an extra payment or used for eligible loan

purposes approved by Rural Development as long as the

improvements are genuinely needed and will enhance

marketability of the project. All increases or decreases

of 15 percent or more in line item costs will require

documentation as to the reason for the increases or

decreases. The State Director may require documentation

for increases or decreases of less than 15 percent, if

he/she determines it necessary. This information will be

required with the cost certification.

(1) Owner-builders will not be allowed to obtain a

profit and overhead unless they are performing actual

construction. "Actual construction" means "work" as

defined in AIA documents: "... labor, materials,

equipment, and services provided by the contractor to

fulfill the contractor's obligations." Under this

definition, owner-builders who choose to subcontract

out construction of the project to another contractor

will not obtain a builder's fee (general overhead and

profit) when:

(Revision 2)

(05-12-87) SPECIAL PN

RD Instruction 1924-A

§1924.13 (e)(2)(viii)(C)(1) (Con.)

(i) More than 50 percent of the total cost of

the building construction is subcontracted to

one subcontractor, material supplier, or

equipment lessor, and/or

(ii) Seventy-five percent or more with three or

fewer subcontractors, material suppliers, and/or

equipment lessors.

(2) Note: If two or more subcontractors have common

ownership, they are considered as one subcontractor.

(3) How to apply rule:

(i) The 50 percent rule will apply when

division of the amount of the largest

subcontract by the total amount of the building

cost results in more than 50 percent.

(ii) The 75 percent rule will apply when

division of the sum of the amounts of the three

largest subcontracts by the total building cost

results in 75 percent or more.

(D) Qualified contracting entities. Contractors,

subcontractors, material suppliers, and any other

individual or organization sharing an identity of interest

and providing materials or services for the project must

certify that it is a viable, ongoing trade or business

qualified and properly licensed to undertake the work for

which it intends to contract. Form RD 1944-31 will be

prepared and executed by the contracting entities. The

form provides notification to the entities of the penalty,

under law, for erroneously certifying to the statements

contained therein. Debarment actions will be instituted

against entities who fail to disclose an identity of

interest in accordance with the provisions of RD

Instruction 1940-M (available in any Rural Development

office).

(ix) Requests for payment for work performed by the owner-

builder method, shall be submitted to the Rural Development

District Director for review and approval prior to each advance

of funds in order to insure that funds are used for authorized

purposes. Requests for payment shall be made on Form RD 1924-

18 or other professionally recognized form containing the

following certifications to Rural Development:

(Revision 2)

_____________________________

______________________________________________________

RD Instruction 1924-A

§1924.13 (e)(2)(ix) (Con.)

The undersigned certifies that the work has been carefully

inspected and to the best of their knowledge and belief,

the quantities shown in this estimate are correct and the

work has been performed in accordance with the contract

documents.

_____________________________

(Name of Architect)

By: _____________________________

_____________________________

(Title) (Date)

Approved by Owner's Representative:

By: _____________________________

(Title)

Accepted by Rural Development Representative:

By: _____________________________

_____________________________

(Title)

The review and acceptance of partial payment estimates by

Rural Development does not attest to the correctness of

the quantities shown or that the work has been performed

in accordance with the plans and specifications.

(A) If interim financing is available at reasonable rates

and terms for the construction period, such financing

shall be obtained. Exhibit B of Subpart E of Part 1944 of

this chapter shall be used to inform the interim lender

that Rural Development will not close its loan

(Added 03-16-94, SPECIAL PN)

(05-12-87) SPECIAL PN

RD Instruction 1924-A

§1924.13 (e)(2)(ix)(A) (Con.)

until the project is complete, ready for occupancy,

evidence is furnished indicating that all bills have been

paid for work completed on the project, all inspections

have been completed and all required approvals have been

obtained from any governmental authorities having

jurisdiction over the project. Upon presentation of

proper payment estimates containing an estimate of the

value of work in place which has been prepared and

executed by the owner-builder, certified by the

applicant's architect, and accepted by Rural Development,

the interim lender may advance construction funds in

accordance with the provisions of this section. It is

suggested that the partial payment not exceed 90 percent

of the value of work in place and material suitably stored

on site. (Revised 2-25-88, SPECIAL PN.)

(B) If interim financing is not available, partial

payments not to exceed 90 percent of the value of work in

place and materials suitably stored on site may be made to

the owner-builder for that portion of the estimated cost

of development guaranteed by a letter of credit or

deposits meeting the requirements of §1924.6

(a)(3)(iii)(A), (B), or (C) of this subpart. Partial

payments may not exceed 60 percent of the value of work in

place in all other cases. The determination of the value

of work in place will be based upon an application for

payment containing an estimate of the value of work in

place which has been prepared and executed by the owner-

builder, certified by the borrower's architect, and

accepted by Rural Development. Prior to receiving the

first partial payment, the owner-builder must submit a

schedule or prices or values of the various trades or

phases of the work aggregating the total development cost

of the project as required in §1924.13 (e)(2)(i)(G) and

(H) of this subpart. Each application for payment must be

based upon this schedule, and show the total amount owed

and paid to date for materials and labor procured in

connection with the project. With each application for

payment, the owner-builder must also submit evidence

showing how the requested partial payment is to be

applied, evidence showing that previous partial payments

were properly applied, and a signed statement from the

applicant's attorney, title insurance company, or local

official in charge of recording

(Added 03-16-94, SPECIAL PN)

RD Instruction 1924-A

§1924.13 (e)(2)(ix)(B) (Con.)

documents certifying that the public records have been

searched and that there are no liens of record. When the

District Director has reason to believe that partial

payments may not be applied properly, checks will be made

payable to persons who furnish materials and labor for

eligible purposes in connection with the project.

(x) Under no circumstances shall funds be released for final

payment or to pay any items of the builder's profit until the

project is 100 percent complete, ready for occupancy, and the

owner-builder has completed and properly executed Form RD 1924-

13 or complied with the cost certification procedures of

§1924.13 (e)(2)(viii) of this subpart.

§§1924.14 - 1924.48 [Reserved]

§1924.49 State supplements.

State supplements or policies will not be issued or adopted to either

supplement or set requirements different from those of this subpart, unless

specifically authorized in this subpart, without prior written approval of the

National Office.

§1924.50 OMB control number.

The reporting and recordkeeping requirements contained in this regulation

have been approved by the Office of Management and Budget (OMB) and have been

assigned OMB control number 0575-0042. Public reporting burden for this

collection of information is estimated to vary from 5 minutes to 4 hours per

response, with an average of 37 minutes per response, including time for

reviewing instructions, searching existing data sources, gathering and

maintaining the data needed, and completing and reviewing the collection of

information. Send comments regarding this burden estimate or any other aspect

of this collection of information, including suggestions for reducing this

burden, to U.S. Department of Agriculture, Clearance Officer, OIRM, AG Box

7630, Washington, DC 20250; and to the Office of Management and Budget,

Paperwork Reduction Project (OMB# 0575-0042), Washington, DC 20503.

Attachments: Exhibits A, B, C, D, E, F, G, H, I, J, K, L and M

Automation Supplement (Attached to Exhibit D)

Guides 1, 2, 3 and 4

oOo

(Added 03-16-94, SPECIAL PN)

(05-12-87) SPECIAL PN

RD instruction 1924-A

Exhibit A

ESTIMATED BREAKDOWN OF DWELLING COSTS

FOR ESTIMATING PARTIAL PAYMENTS

With With With

Slab on Grade Crawl Space Basement

% % %

__________________________________

1. Excavation 3 5 6

2. Footings, foundations, columns 8 8 11

3. Floor slab or framing 6 4 4

4. Subflooring 0 1 1

5. Wall framing, sheathing 7 7 6

6. Roof and ceiling framing, sheathing 6 6 5

7. Roofing 5 5 4

8. Siding, exterior trim, porches 7 7 6

9. Windows and exterior doors 9 9 8

10. Plumbing - roughed in 3 2 3

11. Sewage disposal 1 1 1

12. Heating - roughed in 1 1 1

13. Electrical - roughed in 2 2 2

14. Insulation 2 2 2

15. Dry wall or plaster 8 8 7

16. Basement or porch floor, steps 1 1 6

17. Heating - finished 3 3 3

18. Flooring 6 6 5

19. Interior carpentry, trim, doors 6 6 5

20. Cabinets and counter tops 1 1 1

21. Interior painting 4 4 3

22. Exterior painting 1 1 1

23. Plumbing - complete fixtures 4 4 3

24. Electrical - complete fixtures 1 1 1

25. Finish hardware 1 1 1

26. Gutters and downspouts 1 1 1

27. Grading, paving, landscaping 3 3 3

__________________________________

100 % 100 % 100 %

(5-12-87) SPECIAL PN

RD Instruction 1924-A

Exhibit B

Page 1

REQUIREMENTS FOR MODULAR/PANELIZED HOUSING UNITS

For the benefit of Rural Development this Exhibit prescribes evaluation,

acceptance, inspection and certification procedures for modular/panelized

housing units proposed for use in Rural Development Rural Housing programs.

It applies to proposed development packages provided either under a contract

between an Rural Development borrower and a single contractor or under a

conditional commitment. This Exhibit also describes the use of background

information available through the Department of Housing and Urban Development

(HUD) for analysis of manufactured products. This Exhibit also applies to the

evaluation of manufactured farm service buildings in paragraph XI, below. For

the purpose of this Exhibit, County Supervisor and County Office also mean

District Director and District Office, respectively.

I. Applicable Standards and Manuals.

A. The HUD Handbook 4950.1, Technical Suitability of Products Program

Technical and Processing Procedures, must be followed by housing

manufacturers to obtain acceptance of their products. Acceptance

documents issued by HUD include: Structural Engineering Bulletins (SEB)

on a national basis, Area Letters of Acceptance (ALA) which when

accepted by all Area HUD Offices in a HUD region will, in essence,

become Regional Letters of Acceptance (RLA), Truss Connector Bulletins

(TCB): and, Mechanical engineering Bulletins MEB). These documents as

well as the Use of Material Bulletins (UM) and Materials Release

Bulletins (MR) are addendum to the HUD Minimum Property Standards (MPS).

Under handbook guidelines, HUD also examines state agency regulations

concerning design, construction and labeling of modular/panelized

housing units and designates those states having procedures acceptable

for use under HUD programs. Modular/panelized housing produced in these

states is called Category III and is considered technically suitable for

use without further structural analysis.

B. All State Rural Development Offices should maintain a close working

relationship with each HUD office in their jurisdiction to assure

coordination. Any deviations in structure, materials or design from HUD

acceptance documents must comply with one of the other applicable

development standards.

II. Modular Housing Units that Require Factory Inspections.

Only those types which cannot be completely inspected on site are required to

obtain acceptance from HUD. Those that receive acceptance will be

periodically factory inspected by HUD or HUD's designated agency, usually

about every 6 months.

(5-12-87) SPECIAL PN

RD Instruction 1924-A

Exhibit B

Page 2

III. Panelized Housing Units that Do Not Require Factory Inspections.

A. Housing completely assembled on the building site does not require

HUD acceptance. This includes housing that is manufactured but is

assembled on the site such as: Precut pieces, log wall houses, trussed

roof rafters or floor trusses; open panel walls, and other types that

can be completely inspected on site.

B. Housing that is assembled in local materials dealers' yards for

moving to local sites and to be purchased by an Rural Development

applicant, will be inspected during construction in the yard by the

local Rural Development County representative. These units must be

constructed according to the applicable development standard and not

transported out of the local Rural Development County Office

jurisdiction. The inspection must be recorded on Form RD 1924-12

"Inspection Report."

IV. Manufacturer's Actions Required for Submissions to Rural Development are

listed in Attachment 1 to this Exhibit B.

V. State Rural Development office Actions when Manufacturing Facilities are

in its Jurisdiction. The State Office, upon receipt of manufacturer's

submission, must:

A. Determine that the unit structural system has been accepted by HUD

as appropriate under HUD Handbook 4950.1 requirements.

B. Review the thermal characteristics and approach of the calculations

to determine actions to be taken in compliance with paragraph IV C of

Exhibit D of this subpart.

C. Review the proposal for compliance with §1924.5 (d) (1) of this

subpart.

D. Determine that the prerequisites for consideration of acceptance by

Rural Development are met. The prerequisites include all of the

following:

1. A current acceptance document from HUD (SEB, RLA, ALA), Except

for Category III housing modular/panelized housing that does not

have to have a Structural Engineering Bulletin as designated by

HUD). In Category III states, the state government requirements for

manufactured housing must be followed.

2. A current HUD Factory Inspection Report, Form No. 2051m, or in

the case of Category iii housing, a copy of the inspection report

from the state government or accepted third party performing the

factory inspection. Each report must be made by HUD or a HUD

authorized agency, and must be no older than 6 months.

3. A letter from the manufacturer requesting a review for

acceptance. Enclosed with the letter shall be all the information

listed in Attachment 1 to this Exhibit B.

RD instruction 1924-A

Exhibit B

Page 3

(Revision 1)

E. Issue acceptance letters to the manufacturer stating the conditions

of acceptance in the format of Attachment 2 to this Exhibit B. The

letter shall have an attachment listing all models accepted in the

format of Attachment 3 to this Exhibit B. A copy of the acceptance

letter and list of models shall be sent to each County Office in the

state and, when requested by the manufacturer, to each other Rural

Development State Office in which the product is to be marketed.

F. After initial review of a submission, maintain a master file of

accepted manufacturers and models and review the file twice yearly to

determine the currency of the factory inspection reports and HUD or

state government acceptance documents.

G. Notify manufacturers of overdue factory inspection reports, for

acceptance of documents review and updating, using the format of

Attachment 4 to this Exhibit B. Accompanying the notification will be a

temporary acceptance sheet (Attachment 3 to this Exhibit B) indicating

to the manufacturer that the company models have temporary acceptance

for 60 days. If the manufacturer provides evidence that a review is

being processed by HUD, a maximum of an additional 90 days may be

granted. Otherwise, the acceptance shall terminate on the last

extension date and it will be necessary for the manufacturer to resubmit

as if for initial acceptance.

H. Distribute a list of added models, deleted models, or notice of

deletion of any manufacturer's product to the County Offices and other

State Rural Development Offices as necessary.

I. Issue an initial supply of Manufacturer's and Builder's

Certification forms (Attachment 5 to this Exhibit B) to each existing

and newly accepted manufacturer. Manufacturers are to duplicate this

form as necessary in their market areas.

J. Resolve any problems with the manufacturer, as reported by the

County Office. Action may include coordination, Rural Development plant

inspections or cancellation of acceptance letters when problems persist.

VI. County Office Actions:

A. When an application is received involving any of the manufacturer's

products on the accepted list, the County Office Rural Development

authorized personnel will:

1. Review the drawings and description of materials described in

paragraphs A and B of Attachment 1 to this Exhibit B. The floor

plans and elevations must be identifiable with the model listed in

the accepted list issued by the State Office.

(5-12-87) SPECIAL PN

RD Instruction 1924-A

Exhibit B

Page 4

(Revision 1)

2. Require the builder/dealer or manufacturer to provide any

drawings necessary to adapt the house to the site conditions where

the house will be located. .

3. Require site plan drawing such as those illustrated in

Attachments 1 and 2 to Exhibit C of this subpart (available in any

Rural Development office).

4. Inspect and identify the model delivered against the

manufacturer s certification and the accepted drawings and

description of materials before the unit has been set on the

foundation.

5. Require the builder/dealer to certify that the work for which

the builder/dealer is responsible has been erected in compliance

with the applicable development standard. This certification will

be completed on a copy of Attachment 5 to this Exhibit B, and filed

in County Office case file.

6. Observe any noncompliance with the applicable development

standard or with paragraphs IV and V of this Exhibit B. In this

respect:

a. Minor noncompliance will be resolved by the manufacturer

through the builder/dealer. In cases where there is no

builder/ dealer, the County Office may resolve such issues with

the manufacturer directly.

b. Noncompliance that cannot be resolved at the County Office

level will be reported to the State Office.

7. Inspect manufactured housing according to § 1924.8(d) of this

subpart.

8. Be aware that the accepted list may include many models from

which loan applicants may choose. No changes from accepted model

designs are permitted. The model selected by an applicant should be

appropriate to the needs of that particular family in accordance

with 7 CFR part 3550. (Revised 01-23-03, SPECIAL PN.)

VII. Noncompliance Issues.

A. When minor issues are noted, the County Office will attempt to

resolve them as described above. If they cannot be resolved locally,

they will be referred to the State Office. When any issues cannot be

resolved at State Office level, the National Office Program Support

Staff (PSS) will be contacted for guidance.

RD Instruction 1924-A

Exhibit B

Page 5

B. The National Office PSS, coordinating with HUD, will take the

appropriate actions to resolve the issues reported.

C. Manufacturers and builder/dealers must be aware that if the Rural

Development inspector finds any of the following conditions, the

inspector may refuse to accept the construction until corrections have

been made:

1. Evidence of noncompliance with any option of the method

described in the HUD - SEB, RLA, or ALA.

2. Faulty shop fabrication, including surface defects.

3. Damage to shop fabricated items or materials due to

transportation, improper storage, handling or assembly operation.

4. Unsatisfactory field or site workmanship.

VIII. Actions by Other State Offices. When a State Office receives a copy of

the accepted list from the State Office in which a manufacturing plant is

located, it will:

A. Maintain a file, by manufacturer, of each accepted list of models.

B. Provide copies of the accepted list of models to each County Office

in the state.

C. Request a copy of the drawings, description of materials, and

thermal calculations to determine compliance with the thermal

requirements for the county in which the house is to be located

according to Exhibit D of this subpart.

D. Check to see that County Offices within the state will act as

prescribed in paragraph VI of this Exhibit B.

E. When two or more State Offices have different interpretations of the

acceptability of a particular model, there must be an agreement between

the states so that they will have the same requirements. If the states

cannot 1 agree, the National Office PSS will be consulted for guidance.

(5-12-87) SPECIAL PN

RD Instruction 1924-A

Exhibit B

Page 6

IX. Subsequent Review.

Rural Development will make periodic reviews of houses, both site-built and

houses manufactured offsite, to determine acceptability of the finished

product. If, in the judgment of the Rural Development, the product has failed

to perform satisfactorily, acceptance may be withdrawn. The State Director

will notify the manufacturer and/or the builder/dealer of the reasons for the

withdrawal no later than the rime of withdrawal. Negotiations for corrections

will be carried our by the County Office with the assistance of the State

Office or National Office, as necessary.

X. Materials and Products Acceptance - Material Release Bulletins, Use of

Materials Bulletins, Manufacturer's Instructions.

A. The Materials Release (MR) and Use of Materials Bulletins (UM)

provide for the national acceptance of specific nonstandard materials

and products not covered in the current HUDMPS.

B. When contractors or builders intend to use products or materials not

listed as approved in the MPS, the Rural Development personnel reviewing

or concerned with the approval of construction in which the product is

to be used, will require the contractor or builder to furnish a

Materials Release Bulletin or Use of Materials Bulletin on the materials

or products. If the product has been accepted, the supplier should be

able to obtain the bulletin for the contractor or builder from the

manufacturer. These bulletins describe the products or materials

limitations to use, method of installing or applying, approved type of

fasteners, if used, etc. and will provide the contractor with

instructions as to proper installation or application.

C. When Rural Development personnel are unfamiliar with any materials

or products which have been accepted in the MPS, they will request the

contractor or builder to furnish the manufacturer's instructions to

assure that the materials or products are properly installed or applied.

Any questions on any product that cannot be resolved in the County

Office should be referred to the State Office. When the question cannot

be resolved at the State Office level, the National Office PSS should be

consulted for guidance.

XI. Manufactured Farm Service Buildings.

A. When a loan application is received that involves a manufactured

building or special equipment that cannot be completely inspected on the

site, the local State Land Grant University recommendations should be

requested.

RD Instruction 1924-A

Exhibit B

Page 7

B. When the County Office questions the advisability of making a loan

on a manufactured building, the State Office should also be consulted.

C. The State Office should review and make recommendations to the

County Office. If doubt still exists, the National Office PSS should be

consulted for guidance.

(5-12-87) SPECIAL PN

RD Instruction 1924-A

Exhibit B

Attachment 1

Page 1

REQUIRED INFORMATION FOR ACCEPTANCE OF MODULAR/PANELIZED HOUSING UNITS

The manufacturer or sponsor of modular/panelized housing units wishing to

participate in the Rural Development Rural Housing programs shall submit to

the Rural Development State Director having jurisdiction over the state in

which the proposed housing is to be manufactured, two complete sets of the

information listed below for evaluation. Submissions not including all the

information requested will be returned.

A. Statements:

1. Name and location of organization, including titles and names of

its principal officers.

2. A brief description of plant facilities.

3. Extent of intended market distribution, including a list of any

other states in which units will be marketed.

4. The method of quality control during site installation.

5. A copy of the applicable current HUD Structural Engineering

Bulletin (SEB), Regional Letter of Acceptance (RLA), or Area Letter

of Acceptance (ALA).

6. A current factory inspection report made within 6 months by HUD

or HUD authorized agency.

7. Name and address of any third party inspection agency.

8. Location of nearest assembled product for inspection.

9. Field manuals for site installation and/or set-up procedures.

10. Specifications or descriptions of materials using either Form

RD-1924-2, (HUD-FHA Form 2005), "Description of Materials,"

including sizes, species and grade of all building and finishing

materials. All blanks should be filled and additional sheets may be

attached as well as equipment manufacturer's brochures. Use an

asterisk (*) to denote all item of onsite construction that will be

provided by the builder-dealer. The builder-dealer must complete a

form for the builder-dealer's portion of the work. Use N/A in any

blank which is not applicable.

11. Names and addresses of other public and private agencies which

have rendered or been asked to render a technical suitability or

acceptance determination with respect to the products or structural

methods employed.

(5-12-87) SPECIAL PN

RD Instruction 1924-A

Exhibit B

Attachment 1

Page 2

12. Written certification that construction drawings and

specifications conform with the applicable development standard.

13. Any other pertinent information.

14. An index of all documents submitted.

B. Working Drawings. For emphasis as to the details required for

modular/panelized housing proposals, the following items are listed in

addition to and in more detail than the requirements in Exhibit C of

this subpart. In some cases, the drawing presentation sheers maybe

required to be reduced to 200 mm by 266 mm (8 x 10 1/2 inches) sheet

size:

1. Foundation and/or Basement Plan. This plan shall include

anchorage details, exterior and interior dimensions, typical

footings, wall thickness, pilaster sizes and locations, column or

pier sizes and locations and girders required to support the

structures. Show location of all equipment (furnace, water heater,

laundry tubs, sump, etc.) floor drains, electrical outlets,

electrical entrance panels, and all doors and windows or crawl space

vents with all sizes indicated.

2. Floor Plans of all levels. Show square footage of each

habitable room with square footage of each area of natural limit and

ventilation. In addition, a design sketch scaled properly to

illustrate a typical furniture arrangement for all habitable levels

is required to indicate intended occupancy functions of the design.

A window and door schedule should also be provided indicating glazed

size, sash size, and thermal conductance of each type.

3. All exterior elevations including openings and sizes; wall

finish materials, flashing, finish grades intended, depth of

footings when known, finish floor, ceiling heights, roof slope,

location of downspouts, gutters, vents for both structural spaces

and for equipment. Indicate construction joint locations and

details of connections between sections, modules or components.

4. Building cross sections showing size and spaces of all framing

members from lowest member (bottom of footing) to highest point of

roof (ridge) plus:

(a) Type of material and method of application of all covering

materials, such as subflooring, combination subflooring and

underlayment, sheathing, and interior and exterior finishes;

RD Instruction 1924-A

Exhibit B

Attachment 1

Page 3

(b) Complete details including computations of trussed rafter

systems with the architect/engineer's stamp of those

responsible for the design.

attic ventilation. If the thermal characteristics to be

provided are determined according to the optional method for

overall structure performance allowed in Exhibit D of this

subpart, the submission and complete engineering calculations

with all details of construction shall be sent to

Administrator, Attn. PSS, Rural Development Washington, D.C.

20250, for analysis as prescribed in paragraph IV C of Exhibit

D of this subpart.

(d) Special details as necessary to show any special features

of construction, including method of fabricating, erection,

joining, and finishing of all elements; and

(e) Details and sections of stairways including all critical

dimensions, such as, riser, run and headroom.

5. Interior elevations of kitchen cabinets and bathroom elevations

with schedule of all shelf, counter-top and drawer footage.

Indicate whether kitchen cabinets are to be custom made for each

model or made for are model by a cabinet manufacturing company.

6. Plumbing schematics, including pipe materials, sizes and

planning code compliance.

7. Heating plan, including heat loss of each room, is needed for

heating systems, sizings and capacities, forced air, electric

baseboard, or electric space heaters and, if applicable, heat gain.

For forced air systems, include supply and return duct layout and

location of appropriate diffusers.

8. Electrical plan, including circuit chart or diagram.

9. Any other pertinent facts or drawings that will better explain

why and how certain unusual materials or structural methods are

employed.

oOo

(5-12-87) SPECIAL PN

RD Instruction 1924-A

Exhibit B

Attachment 2

Page 1

John Douth Manufacturing Company

3444 Residence Avenue

Elkton, Indiana 00051

Dear Sirs:

Although the documents submitted to this office have only received a cursory

review, they appear to be in substantial compliance to qualify your firm for

the type of acceptance indicated on the attached list.

The acceptance being issued is subject to this letter of conditions,

compliance with HUD handbook 4950.1, Technical Suitability of Products Program

Technical and Processing Procedures, compliance with Rural Development Thermal

Performance Construction Standards, and compliance with the conditions set

forth in the HUD acceptance document, if applicable, those number appears on

the acceptance.

The manufacturer and the authorized builder-dealer bear the responsibility of

complying with the above, the exhibits submitted and the applicable

development standards.

The manufacturer and/or builder-dealer also shall:

1. Provide positive identification of the modular unit by model, date

of manufacture and factory in which the unit has manufactured.

2. Furnish with each home to be financed by Rural Development in___

State ____, a written certificate (Attachment 5 to this Exhibit B)

endorsed by the builder-dealer certifying that all requirements have

been satisfied.

3. Furnish the local Rural Development County Supervisor with a

complete set of drawings including site plans, description of materials,

structural engineering bulletins when applicable in the state, and

documentation relating to the manufacture, transportation, erection, and

installation for each model of modular/panelized housing to be financed

in the county. Electrical, plumbing and heating plans must be furnished

for each model in addition to the basic drawings. Floor plans and

elevation drawings may vary from those listed in Attachment 1 of Exhibit

B to RD Instruction 1924-A to reflect each of the manufacturer's models

provided they are in compliance with the applicable development standard

and the Rural Development Thermal Performance Construction Standards and

provided they have been accepted and listed in this state's approval of

manufactured structures. No field alterations to the accepted models

will be allowed.

4. Furnish, when required by the County Supervisor, foundation

drawings (including special foundation design considerations when the

unit is to be erected in seismic zones 1, 2 or 3) adapting the modular

home to any unusual site conditions needing information additional to

that furnished by the standard drawings.

(5-12-87) SPECIAL PN

RD Instruction 1924-A

Exhibit B

Attachment 2

Page 2

5. Furnish the County Office with a copy of inspection reports of the

manufacturing facilities immediately after the inspection reports have

been completed.

6. Allow Rural Development personnel to inspect the manufacturing

facilities at any time and furnish all Rural Development State Offices,

where acceptance has been obtained, with a copy of any Rural Development

Inspection reports immediately after the inspection reports have been

completed.

7. In the event there are major changes to the submitted drawings,

obtain approval under the HUD Technical Suitability of Products Program

and submit verification of this approval to the County Office for

listing on the state's accepted list. Any modular home shipped with

major changes incorporated, without such changes on file at the County

Office may be rejected.

(Add state and local requirements appropriate to this letter of conditions.)

This acceptance may be subject to corrective action when deficiencies are

noted in the product, field inspections, manufacturing facilities, or when

there is noncompliance with the provisions of the HUD technical Suitability of

Products Program.

The inclusion of these models on the accepted list is based only on the

material and structural aspects of the manufactured units. Final

determination of acceptability rests with Rural Development personnel. Other

factors relating to the property in its entirety such as appraisal, location,

sustained market acceptance, architectural planning and appeal, thermal

qualities, mechanical and electrical equipment, etc., must be considered in

the final determination.

Your cooperation in this acceptance program is appreciated.

Sincerely,

State Director

__________________________________________________________________________

RD Instruction 1924-A

Exhibit B

Attachment 3

Date _______________ File No._____

ACCEPTANCE OF MODULAR/PANELIZED HOUSING UNITS

(BASED ON HUD HANDBOOK 4950.1)

Manufacturer:

_________________________________ Acceptance Document______________

_________________________________ Type of Acceptance:

_________________________________ ___ Regular

_________________________________ ___ Temporary, Expires _________

Plant locations:_____________________________________________

Date of Latest Plans Revised ________________________________

Date of Latest Factory Inspection ___________________________

Acceptance Document Review Date _____________________________

RD Instruction 1924-A, Exhibit D

THERMAL PERFORMANCE CONSTRUCTION STANDARDS

State Office Review National Office Review

(Exh. D, IV, C, 1, a or b) (Exh. D, IV, C, 2)

Maximum Winter Degree Days for State ___ Walls R ____ Glazing/Gross Wall

Area Ratio _______%

Ceilings R ______ Glazing _____ Pane(s) Floor R ____ Glazing ___ Pane(s)

Insulated Door____ Wood & Storm____ Insulated Door____ Wood & Storm ____

Models Accepted:

(5-12-87) SPECIAL PN

RD Instruction 1924-A

Exhibit B

Attachment 4

John Douth Manufacturing Company

3444 Residence Avenue

Elktown, Indiana 00051

Dear Sirs:

As set forth in acceptance letters issued by this office, acceptance of

modular/panelized homes in this state is based on HUD's Technical Suitability

of Products Program and the conditions stated in the acceptance letter. Your

file has been reviewed and the following has been noted.

_____________ An inspection report of your manufacturing facilities is

overdue. Inspections are required twice yearly. The last

inspection report on file at this office is dated ________.

_____________ Your Structural Engineering Bulletin No. ____ dated _______

has not been reviewed by HUD. Reviews are generally

required every three years. Temporary acceptance will be

considered when you provide evidence that the review

documents have been submitted to HUD.

_____________ The drawings being used for the construction of your homes

are not listed in your Structural Engineering Bulletins.

Drawings used in the field should be those upon which the

Structural Engineering Bulletin was issued.

_____________ There have been _____ revisions to the development

standards since ______, the date of the last drawings we

have on file for your homes. It is recommended that you

review the revisions to ascertain whether your drawings

need to be updated.

Please submit a written response and appropriate documents for the above items

within _______ days, or your product will be removed from the accepted list

until your firm can again quality. If you have any problems furnishing the

above within the time stated, please contract this office.

We look forward to receiving the materials indicated so that your firm's

listing may be continued.

Sincerely,

State Director

(5-12-87) SPECIAL PN

__________________________________________________________________________

____________________ _______________________________

__________________________________________________________________________

____________________ _______________________________

RD Instruction 1924-A

Exhibit B

Attachment 5

CERTIFICATION BY MANUFACTURER

Delivery location of structure or component ______________________________

This is to certify that Model:_____________________________________,

Serial #__________________________ manufactured _____(date)______, 19 _____ in

_____(location__________ and being sold to __(name of____________

builder-dealer or borrower) has been manufactured in accordance with drawings

and specifications on file in the Rural Development State Office and that the

construction complies with applicable development standards, except as

modified by HUD Acceptance document (SEB, RLA, ALA,) NO.____, dated

______________________, and in compliance with the Rural Development Thermal

Performance Construction Standards.

Date Signature or Authorized

Official

_______________________________

Title

CERTIFICATION BY BUILDER-DEALER

__________(Name of builder-dealer)___________ certifies that the foundation

and other on-site work has been constructed in accordance with the drawings

and specifications and the above structure or component has been erected,

installed or applied in compliance with the applicable development standards.

It is understood that the manufacturer's certification does not relieve the

builder/dealer of responsibility under the terms of the builder's warranty

required by the National Housing Act.

Date Signature of Authorized

Official

______________________________

Title

(5-12-87) SPECIAL PN

RD Instruction 1924-A

Exhibit C

Page 1

GUIDE FOR

DRAWINGS AND SPECIFICATIONS

This Exhibit applies to all new buildings to be constructed, including all

single family housing and related facilities and, as applicable, farm housing

and farm service buildings.

I. GENERAL: The documents recommended in this Exhibit correspond with

the list of Exhibits in Chapter 3 of the Department of Housing and Urban

Development (HUD) "Architectural Handbook for Building Single-Family

Dwellings" No. 4145.2. This Exhibit may be used as a public handout and

shall be used as a guide for drawings and specifications to be submitted

in support of any type of application involving construction of major

new buildings or extensive rehabilitation, alterations or additions to

existing buildings. Descriptions of work forming or alterations or

repairs need pertain only to work to be done and maybe in narrative from

when acceptable to the County Supervisor. Complete and accurate

drawings and specifications are necessary:

A. To determine the acceptability of the proposed development,

B. To determine compliance with the applicable standards and

codes,

C. To prepare a cost estimate, and

D To provide a basis for inspections and the builder's warranty.

II. DRAWINGS FOR A SPECIFIC STRUCTURE: Drawings for individual single

dwellings shall provide at least the following:

A. Plot Plan. Refer to Example Plot Plan No. 1, Attachment 1 to

this Exhibit C (available in any Rural Development office). Ratio:

1:240 (1" = 20') (at scale, 1" = 20' or 1/16" = 1'0" minimum):

1. Lot and block number.

2. Dimensions of plot and north point.

3. Dimensions of front, rear and side yards.

(5-12-87) SPECIAL PN

RD Instruction 1924-A

Exhibit C

Page 2

4. Location and dimensions of garage, carport and other accessory

buildings.

5. Location and sizes of walks, driveways and approaches.

6. Location and sizes of steps, terraces, porches, fences and

retaining walls.

7. Location and dimensions of easements and established setback

requirements, if any.

8. Elevations at the following points: (a) first floor of dwelling

and floor of garage, carport and other accessory building; (b)

finish curb or crown of street at points of extension of lot lines;

(d) finish grade at bottom of drainage swales at extension of each

side of structure as feasible.

9. The following additional elevations, as applicable, if the

topography of the site or the design of the structure is such that

special grading, drainage or foundations may be necessary. Examples

are irregular or steeply sloping sites, filled areas on sites, or

multi-level structure designs; (a) finish and existing grade

elevations at each corner of the plot; (b) existing and finish grade

at each principal corner of dwelling; (c) finish grade at both sides

of abrupt changes of grade such as retaining walls, slopes, etc.;

(d) other elevations that maybe necessary to show grading and

drainage.

10. Indication of type and approximate location of drainage swales.

11. When an individual water supply and/or sewage system is

proposed, drawings, specifications and other items prescribed in

Paragraph V of this Exhibit.

B. Floor Plans.

1. Scale, 1:50 (1/4" = 1'0").

2. Floor plan of each floor and basement, if any. Show typical

furniture locations to suggest intended use of each habitable space.

RD Instruction 1924-A

Exhibit C

Page 3

3. Plan of all attached terraces and porches, and of garage or

carport.

4. If dwelling is of crawl-space type, a separate foundation plan.

Slab-type foundation maybe shown on sections.

5. Direction, size and spacing of all floor and ceiling framing

members, girders, columns or piers.

6. Location of all partitions and indication of door sizes, and

direction of door swing.

7. Location and size of all permanently installed construction and

equipment such as kitchen cabinets, closets, storage shelving,

plumbing fixtures, water heaters, etc. Details of kitchen cabinets

may be on separate drawing.

8. Location and symbols of all electrical equipment, including

switches, outlets, fixtures, etc.

9. Heating system on separate drawing, or when it may be shown

clearly it may be part of the floor or basement plan showing: (a)

layout of system; (b) location and size of ducts, piping.

Registers, radiators, etc.; (c) location of heating unit and room

thermostat; (d) total calculated heat loss of dwelling including

heat loss through all vertical surfaces, ceiling and floor. When a

duct or piped distribution system is used, calculated heat loss of

each heated space is required.

10. Cooling system on separate drawings or, as part of heating

plan, floor or basement plan showing: (a) layout of system; (b)

location and size of ducts, registers, compressors, coils, etc.; (c)

heat gain calculations, including estimated heat gain for each space

conditioned; (d) model number and Btu capacity of equipment or units

in accordance with applicable Air Conditioning and Refrigeration

Institute (ARI) or American Society of Refrigerating engineers

(ASRE) Standard; (e) Btu capacity and total Kilowatt (KW) input at

stated local design conditions; (f) if room or zone conditioners are

used, provide location, size and installation details.

C. Exterior Elevations.

1. Scale, 1:50 (1/4" = 1'0"). Elevations, other than main

elevation, which contain no special details may be drawn at 1:100

(1/8" = 1'0").

(5-12-87) SPECIAL PN

RD Instruction 1924-A

Exhibit C

Page 4

2. Front, rear and both side elevations, and elevations of any

interior courts.

3. Windows and doors - indicate size unless separately scheduled

or shown on floor plan.

4. Wall finish materials where more than one type is used.

5. Depth of wall footings, foundations, or piers, if stepped or at

more than one level.

6. Finish floor lines.

7. Finish grade lines at buildings.

D. Details and Sections.

1. Section through exterior wall showing all details of

construction from footings to highest point of road. Where more

than one type of wall material is used, show each type. Scale, 1:25

(3/8" =1'0") minimum.

2. Section through any portion of dwelling where rooms are

situated various levels or where finished attic is proposed, Scale,

1:50 (1/4" = 1'0") minimum.

3. Section through stair wells, landings, and stairs, including

headrod, clearances and surrounding framing. Scale, 1:50 (1/4"

=1'0") minimum.

4. Derails of roof trusses, if proposed, including connections and

stress or test date with seal of architect or engineer responsible.

Scale of connections, 1:25 (3/8" - 1'0") minimum.

5. Elevation and section through fireplace. Scale, 1:25 (3/8" =

1'0") minimum.

6. Elevations and section through kitchen cabinets, indicating

shelving. Scale, 1:50 (1/4" = 1'0") minimum.

7. Sections and details of all critical construction points,

fastening systems, anchorage methods, special structural items or

special millwork. Scale as necessary to provide information, 1:25

(3/8" - 1'0") minimum.

RD Instruction 1924-A

Exhibit C

Page 5

III. MASTER DRAWINGS FOR GROUP STRUCTURES. Drawings for a group of structures

(such as for several conditional commitments) may be submitted in lieu of

drawings for each individual property when a number of applications are

simultaneously submitted involving repetition of the same type structure.

A Master plot plan shall include the following:

1. Scale which will provide the following Information in a clear

and legible manner.

2. North point.

3. Location and width of streets and rights-of-way.

4. Location and dimensions of all easements.

5. Dimensions of each lot.

6. Location of each dwelling on lot with basic dimensions.

7. Dimensions of front, rear and side yards.

8. Location and dimensions of garage, carports and other accessory

buildings.

9. Identification of each lot by number and indication of basic

plan and elevation type.

10. Location of walks, driveways and other permanent improvements.

B. Typical plot-plan for each basic type dwelling may be submitted in

lieu of fully detailing each lot on master plot plan, when topography

and lot arrangements present no individual planning or construction

problems.

1. Information nor shown on the typical plot plan shall be

included on the master plot plan.

2. Typical plot plans shall not be used for corner lots, lots with

irregular boundaries, lots involving pronounced topographic

variations or other lots where individual detailing is necessary.

3. Location of dwelling on typical lot and full dimensions.

(5-12-87) SPECIAL PN

RD Instruction 1924-A

Exhibit C

Page 6

4. Location and dimensions of all typical improvements, such as

garage, carport, accessory buildings, walks, drives, steps, porches,

terraces, trees, shrubs, retaining walls, fences, etc.

C. Grading may be shown on separate grading plan or on the master plot

plan. Scale shall be sufficiently large to provide the following

information in clear and legible manner:

1. Contours of existing grade at intervals of not more than 1.524

m (5 feet). Intervals less than 1.524m (5 feet) may be required

when indicated by the character of the topography.

2. Location of house and accessory buildings on each lot.

3. Identification of each lot by number.

4. Elevations in accordance with individual plot plan including

bench mark and datum or, in lieu of finish grade elevations,

contours of proposed finish grading may be submitted. Contour

intervals selected shall be appropriate to the topography of the

site.

5. Lot grading shall be shown by indicating protective slopes and

approximate location of drainage swales.

6. Location of drainage outfall, if any drainage is not to a

street.

D. Floor plans, elevations, sections and details shall be submitted

for each basic plan. Alternate elevations to basic plan maybe shown at

scale, 1:100 (1/8" = 1'0").

IV. SPECIFICATIONS. Form RD 1924-2, "Description of Materials," or other

acceptable and comparable descriptions of all materials forms shall be

submitted with the drawings. The forms shall be completed in accordance with

the instructions on Form-RD 1924-2 to describe the materials to be used in the

construction.

A. Form RD 1924-2 may be reproduced if size, format and printed

text are identical to the current official form. When it is reproduced, the

following deletions must be made:

1. All lines indicating Rural Development form numbers or other

Government agency initials and/or numbers, and

2. The United States Government Printing Office (GPO) imprint and

reference number.

RD Instruction 1924-A

Exhibit C

Page 7

B. The material identification shall be in sufficient detail to fully

describe the material, size, grade and when applicable, manufacturer's

model or identification numbers. When necessary, additional sheets must

be attached as well as manufacturer's specification sheets for equipment

and/or special materials, such as aluminum siding or carpeting.

V. INDIVIDUAL WATER SUPPLY AND SEWAGE DISPOSAL SYSTEMS. When an individual

water and/or sewage disposal system is proposed, the following additional

information must be submitted:

A. Approval and recommendations of other authorities.

1. A written opinion by the health authority having jurisdiction

that the site is suitable and acceptable for the proposed system(s)

and,

2. If available, a soils report from the local USDA-Soil

Conservation Service and any recommendations they may have.

3. Approval of appropriate environmental control authority.

4. A signature of the health authority on the plot plan indicating

approval of the design of the proposed system.

B. Plot Plan. Refer to Example Plot Plan No. 2, Attachment 2 to this

Exhibit C (available in any Rural Development office).

1. Location and size of septic tank, distribution box, absorption

field or bed, seepage pits and other essential parts of the sewage

disposal system and distance to all individual wells, open streams

or drainageways.

2. Location of well, service line and other essential parts of the

water supply system and distance to other wells and/or sewage

disposal systems.

3. Exact location of individual systems (water or sewage) on

adjacent properties and description of system, if available.

(5-12-87) SPECIAL PN

RD Instruction 1924-A

Exhibit C

Page 8

C. Construction details of all component parts of individual water

supply and sewage disposal systems shall clearly indicate material,

equipment and construction. Extra sheets and drawings should be added

as necessary to fully explain the proposed installation.

Attachment 1: Example Plot Plan No. 1

Attachment 2: Example Plot Plan No. 2

Exh. C, Attachments 1 & 2 in PDF ONLY.

RD Instruction 1924-A

Exhibit D

Page 1

THERMAL PERFORMANCE

CONSTRUCTION STANDARDS

I. PURPOSE: This Exhibit prescribes thermal performance construction

standards to be used in all housing loan and grant programs. These

requirements shall supersede the thermal performance requirements in any of

the development standards in § 1924.4(h) of this subpart.

II. POLICY: All loan or grant applications involving new construction

(except for new Single Family Housing (SFH)) and all applications for

conditional commitments (except for new SFH) shall have drawings and

specifications prepared to comply with paragraphs IV A or C and IV D of this

Exhibit. All new SFH construction shall have drawing and specifications

prepared to comply with paragraph IV F of this Exhibit.

III. DEFINITIONS:

A. British thermal unit (Btu) means the quantity of heat required to

raise the temperature of one pound (.4535 KM.) of water by one degree

Fahrenheit (F). For example, one Btu is the amount of heat needed

to raise the temperature of one pound of water from 59 degrees F to 60

degrees F.

B. Glazing is the material set into a sash or door when used as a

natural light source and/or for occupant's views of the outdoors.

C. “R” value, thermal resistance, is a unit of measure of the ability to

resist heat flow. The higher the R value, the higher the insulating

ability.

D. “U” value is the overall coefficient of heat transmission and is the

combined thermal value of all the materials in a building section. U is

the reciprocal of R. Thus U = 1/R or R = 1/U or 1/C where C is the

thermal conductance and is the unit of measure of the rate of heat flow

for the actual thickness of a material one square foot in area at a

temperature of one degree Fahrenheit. The lower the U value, the higher

the insulating ability.

E. Winter degree-day is a unit based on temperature difference

and time. For any one day, when the mean temperature is less than

65 degrees F (18.3 degrees Celsius), there are as many degree-days as

the number of degrees difference between the mean temperature for the

day and 65 degrees F. The daily mean temperature is computed as half

the total of the daily maximum and daily minimum temperatures.

(12-19-07) PN 416

__________________________________________________________________________

_________________________________________________________________________

__________________________________________________________________________

RD Instruction 1924-A

Exhibit D

Page 2

F. CABO MODEL ENERGY CODE, 1992 EDITION (MEC-92) - This code sets forth

the minimum energy/thermal requirements for the design of new buildings

and structures or portions thereof and additions to existing buildings.

The MEC is maintained by the Council of American Building Officials

(CABO).

IV. MINIMUM REQUIREMENTS

A. All multifamily dwellings to be constructed with Rural Development

loan and/or grant funds and all repair, remodeling, or renovation work

performed on single family and multifamily dwellings with Rural

Development loan and/or grant funds shall be in conformance with the

following, except as provided in paragraphs IV C 3 and IV D of this

Exhibit:

NEW CONSTRUCTION

MAXIMUM U VALUES FOR CEILING, WALL, AND FLOOR

SECTION OF VARIOUS CONSTRUCTION

Winter

Degree

Days Ceilings Walls Floors Glazing Doors

(Note 1) (Note 2) (Note 3) (Note 4) (Note 5)

1000

less .05 .08 .08 1.13 ----

1001

2500 .04 .07 .07 .69 ----

2501 Storm door if

to hollow core door

4500 .03 .05

.05 .69 if over 25% glass

4501

6000 .03 .05 .05 .47 Storm Door

6001

more .026 .05 .05 .47 Storm Door

(U values are not adjusted for framing. Values calculated for components may

be rounded. For example, a total R Value of 18.88 converts to a U value of

.0529 rounded to .05)

__________________________________________________________________________

_______________________________________________________________________

RD Instruction 1924-A

Exhibit D

Page 3

Note 1. Winter degree-days may be obtained from the ASHRAE Handbook; the

"NAHB insulation Manual for Homes/Apartments"; local utilities; and the

National Climatic Center, Federal Building, Asheville, NC. Manuals are

available from NAHB RF, Rockville, MD 20850, or NMWIA, 382 Springfield Avenue,

Summit, NJ 07901. Other sources of degree day data may be used if available

from a recognized authority.

Note 2. Insulation must be continuous (i.e. no gaps) above all ceiling

joists. In pitched roof construction, compression of insulation at the

outside building walls is permitted to allow a 1" ventilation space under the

roof sheathing. For any loose fill insulation, a baffle must be provided.

Raised trusses are not required.

Note 3. For floors of heated spaces over unheated basements, unheated garages

or unheated crawl spaces, the U value of floor section shall not exceed the

value shown. A basement, crawl space, or garage shall be considered unheated

unless it is provided with a positive heat supply to maintain a minimum

temperature of 50 degrees F. Positive heat supply is defined by ASHRAE as

heat supplied to a space by design or by heat losses occurring from energy-

consuming systems or components associated with that space."

Where the walls of an unheated basement or crawl space are insulated

in lieu of floor insulation, the total heat loss attributed to the floor from

the heated area shall not exceed the heat loss calculated for floors with

required insulation.

Insulation may be omitted from floors over heated basement areas or

heated crawl spaces if foundation walls are insulated. The U value of

foundation wall sections shall not exceed the value shown. This requirement

shall include all foundation wall area, including header joist (band joist),

to a point 50 percent of the distance from a finish grade to the basement

floor level. Equivalent Uo configurations are acceptable.

MAXIMUM U VALUES OF THE FOUNDATION WALL Sections OF HEATED BASEMENT NOT

CONTAINING HABITABLE LIVING AREA OR HEATED CRAWL SPACE

Winter Degree Days Maximum U Value Glazing*

(65 F Base)

2500 or less No requirement 1.13

2501 to 4500 0.17 1.13

4501 or more 0.10 0.69

(12-19-07) PN 416

__________________________________________________________________________

RD Instruction 1924-A

Exhibit D

Page 4

*Glazing in heated basement shall be limited to 5 percent of floor area

unless alternative Uo combination is documented.

Note 4. Sliding glass doors are considered as glazing. The glazing value is

for glass only. Glazing shall be limited to 15 percent of the gross area of

all exterior walls enclosing heated space, except when demonstrated that the

winter daily solar heat gain exceeds the heat loss and the glass area is

properly screened from summer solar heat gain.

Note 5. 1-3/4 inch metal-faced door systems with rigid insulation core and

durable weatherstripping providing a "U" value equivalent to a wood door with

storm door and an infiltration rate no greater than .50 cfm per foot of crack

length tested according to ASTM E-283 at 1.567 psf of air pressure, may be

substituted for a conventional door and storm door. All doors shall be

weatherstripped. Any glazed areas must be double-glazed.

MINIMUM R VALUES OF PERIMETER INSULATION FOR SLABS-ON-GRADE

Winter Degree-Days Minimum R Values*

(65 F Base) Heated Slab Unheated Slab

500 or less 2.8 ----

1000 3.5 ----

2000 4.0 2.5

3000 4.8 2.8

4000 5.5 3.5

5000 6.3 4.2

6000 7.0 4.8

7000 7.8 5.5

8000 8.5 6.2

9000 9.2 6.8

10000 or greater 10.0 7.5

*For increments between degree days shown, R values may be interpolated.

RD Instruction 1924-A

Exhibit D

Page 5

B. [Reserved]

C. Optional Standards. Housing design not in compliance with the

requirements of paragraph IV A of this Exhibit may be approved in

accordance with the provisions of this paragraph. Requests for

acceptance proposed under paragraph C 1 below, must be approved by the

State Director. Requests for acceptance of site-built housing proposed

under paragraph C 2 must be approved by the Administrator. Requests for

acceptance of manufactured housing proposed under paragraph C 2 may be

approved by the State Director. All submissions of proposed options to

the State Director or Administrator shall contain complete descriptions

of materials, engineering data, test data (when U values claimed are

lower than the ASHRAE Handbook of Fundamentals), and calculations to

document the validity of the proposal. All data and calculations will

be based upon the current edition of the ASHRAE Handbook of Fundamentals

or other universally accepted data sources.

1. Overall "U" values for envelope components. The following

requirements shall be used in determining acceptable options to the

requirements of paragraph IV A of this Exhibit.

a. Uo (gross wall) - Total exterior wall area (opaque wall and

window and door) shall have a combined thermal transmittance

value (Uo value) not to exceed the values shown in Attachment 1

to this Exhibit D (available in any Rural Development office).

Equation 1 in Attachment 1 in shall be used to determine

acceptable combinations to meet the requirements.

b. Uo (gross ceiling) - Total ceiling area (opaque ceiling and

skylights) shall have a combined thermal transmittance value

(Uo value) not to exceed the values shown in Attachment 2 to

this Exhibit D (available in any Rural Development office).

Equation 2 in Attachment 2 shall be used to determine

acceptable combinations to meet the requirements.

2. Overall structure performance. The following requirements shall

be used in determining acceptable options to the requirements of

paragraph IV A of this Exhibit.

a. The methodology must be cost effective to the energy user,

and must not adversely affect the structural capacity,

durability or safety aspects of the structure.

b. All data and calculations must show valid performance

comparisons between the proposed option and a structure

(12-19-07) PN 416

RD Instruction 1924-A

Exhibit D

Page 6

comparable in size, configuration, orientation and occupant

usage designed in accordance with paragraph IV A. Structures

may be considered for Rural Development loan consideration

which can be shown by accepted engineering practice to have

energy consumption equal to or less than those which would be

attained in a representative structure utilizing the

requirements of paragraph IV A.

3. Special consideration for seasonally occupied farm labor

housing. The following sets forth the minimum acceptable options to

the requirements of paragraph IV A of this Exhibit for seasonally

occupied housing serving as security for farm labor housing loans

and grants.

a. When the period of occupancy does not encounter 500 or more

heating degree-days (HDD) as determined by an average of the

previous 10 years based upon local climatological data

published by the National Oceanic and Atmospheric

Administration, Environmental Data Service, the standards of

paragraph IV A will not apply.

b. When the period of use exceeds 500 HDD, the 10-year average

value for the period of occupancy shall be used to determine

the degree to which the thermal insulation requirements of

paragraph IV A shall apply.

c. If mechanical cooling is provided and the period of

occupancy encounters more than 700 cooling degree-days (CDD),

as determined by an average of the previous 8 years based upon

local climatological data published by the same source cited in

paragraph IV C 3 a above, the thermal insulation requirements

for 1,000 and less degree-days as stated in paragraph IV A

shall apply.

D. Energy efficient construction practices. This section prescribes

those items of design and quality control which are necessary to

guarantee the energy efficiency of homes built according to the

standards of this Exhibit. Also included are recommendations for extra

energy efficiency in dwellings. This section does not apply to new SFH

construction.

1. Infiltration.

a. Requirements: All construction shall be performed in such

a manner as to provide a building envelope free of excessive

infiltration.

RD Instruction 1924-A

Exhibit D

Page 7

(i) Caulking and sealants. Exterior joints around

windows and door frames, between wall cavities and window

or door frames, between wall and foundation, between wall

and roof, between wall panels, at penetrations of utility

services through walls, floors and roofs, and all other

openings in the exterior envelope shall be caulked,

gasketed, weatherstripped, or otherwise sealed. Caulking

shall be silicone rubber base or butyl rubber base,

conforming to Federal Specifications TT-S-1543 and TT-S-

1657 respectively, or materials demonstrating equivalent

performance in resilience and durability.

(ii) Windows shall comply with ANSI 134.1, NWMA 15-2; the

air infiltration rate shall not exceed 0.5 ft 3/min per

ft. of sash crack.

(iii) Sliding glass doors shall comply with ANSI 134.2,

NWMA 15-3; the air infiltration rate shall not exceed .5

ft 3/min per square ft. of door area.

(iv) All insulation placed in open cavity walls shall be

installed so that all space behind electrical switches and

receptacles, plumbing, ductwork and other obstructions in

the cavity are insulated as completely as possible.

Insulation shall be omitted on the side facing the

conditioned area; however, the vapor barrier in walls must

not be cut or destroyed.

Recommendations:

(i) Wrap outside corners of wall sheathing with

15 lb. Asphalt impregnated building felt before siding

application.

(ii) Utilize vestibules for entry doors, especially those

facing into the direction of winter wind.

(iii) Install plumbing, mechanical and electrical

components in interior partitions as much as possible.

All water piping should be insulated from freezing

temperatures.

(12-19-07) PN 416

RD Instruction 1924-A

Exhibit D

Page 8

2. Heating and/or Cooling Equipment.

a. Requirements: All mechanical equipment for heating and/or

cooling habitable space shall be designed to provide economy of

operation.

(i) All space heating equipment (including fireplaces)

requiring combustion air shall be sealed combustion types,

or be located in a nonconditioned area (such as heated

basements) or adequate combustion air must be provided

from outside the conditioned space.

(ii) All ductwork shall be designed and installed to

minimize leakage. All metal to metal connections shall be

mechanically joined and taped.

b. Recommendations:

(i) Whenever possible, locate ductwork inside of

conditioned areas in dropped ceilings, interior partitions

or other similar areas.

(ii) Locate outside cooling units in areas not subject to

direct sunlight or heat buildup.

3. Vapor Barrier.

a. Requirements: Adequate vapor barriers must be provided

adjacent to the interior finish material of the wall or other

closed envelope components which do not have ventilation space

on the nonconditioned side of the insulation.

(i) A vapor barrier at the inside of the wall or other

closed envelope component must have a permeability (perm)

rating less than that of any other material in that

component and in no case have a perm rating greater than

one. All vapor barriers must be sealed around all

openings in the interior surface. Vapor barriers are not

required in ceilings and floors. Continuous vapor

barriers on ceilings, walls, and floors require adequate

moisture vapor control in the conditioned space.

(ii) All vapor producing or exhaust equipment shall be

ducted to the outside and equipped with dampers. This

equipment includes rangehoods, bathroom exhaust fans, and

clothes dryers. If a dwelling design proposes the use of

windows to satisfy the kitchen and/or bathroom

ventilation

RD Instruction 1924-A

Exhibit D

Page 9

requirements of the development standards, the

incorporation of dehumidification equipment should be

considered in accordance with paragraph IV D 3 b.

Exhaust of any equipment shall not terminate in an attic

or crawl space.

b. Recommendation: Forced air heating/cooling systems should

include humidification/dehumidification systems where conditions

indicate.

E. [Reserved]

F. New SFH construction. New SFH construction shall meet the

requirements of CABO Model Energy Code, 1992 Edition (MEC-92).

G. New Manufactured Housing. The Uo Value Zone indicated on the

“Heating Certificate” for comfort heating shall be equal to or greater

than the HUD Zone listed in the following table:

RHS Climate Zones

(winter degree days)

FMHCSS (HUD Code)

Uo Value Zones

1000

1001 - 2500

2501 - 4500

4501 - 6000

> 6000

EXAMPLE: If a manufactured home is to be located in a geographic area

having between 2501 and 4500 RHS winter degree days, the Agency will

accept a Uo value Zone 2 unit or Zone 3 unit constructed to the HUD

Federal Manufactured Home Construction and Safety Standard (FMHCSS).

If a central air conditioning system is provided by the home

manufacturer a “Comfort Cooling Certificate” must be permanently affixed

to an interior surface of the unit that is readily visible. This

certificate may be combined with the heating certificate on the data

plate.

(12-19-07) PN 416

RD Instruction 1924-A

Exhibit D

Page 10

V. GENERAL DESIGN RECOMMENDATIONS:

A. Orient homes with greatest glass area facing south with adequate

overhangs to control solar gain during non-heating periods. Examples of

proper roof overhangs are given in Attachment 3 to this Exhibit D

(available in any Rural Development office).

B. Arrange plantings with evergreen wind buffers on north side and

deciduous trees on south.

C. Whenever possible, orient entry door away from winter winds.

D. Design house with simple shape to minimize exterior wall area.

E. Minimize glass areas within constraints of required light and

ventilation, applicable safety codes, and other appropriate

consideration.

F. Minimize the amount of paved surface adjacent to the structure where

heat gain is not desirable.

VI. STATE SUPPLEMENTS: State supplements or policy will not be issued or

adopted to either supplement or set requirements different from those of

this Exhibit without the prior written approval of the National Office.

oOo

1924-A, Exhibit D, Attachments 1, 2, & 3 in PDF ONLY.

RD Instruction 1924-A

Exhibit E

EVOLUNTARY NATIONAL MODEL BUILDING CODES

The following documents address the health and safety aspects of buildings and

related structures and are voluntary national model building codes as defined

in §1924.4 (h) (2) of this subpart. Copies of these documents may be obtained

as indicated below:

BUILDING PLUMBING MECHANICAL ELECTRICAL

CODE CODE CODE CODE

BOCA BASIC/National BOCA Basic/National BOCA Basic/National National

Building Code (1) Plumbing Code (1) Mechanical Code (1) Electrical

Code (5)

Standard Building

Code (2)

Standard Plumbing

Code (2)

Standard Mechanical

Code (2)

Uniform Building

Code (3)

Uniform Plumbing

Code (3)

Uniform Mechanical

Code (3)

CABO One and Two

Family Dwelling

Code (4)

(1) Building Officials and Code Administrators International, Inc.

4051 WEst Flossmoor Road

Country Club Hills, Illinois 60477

(2) Southern Building Code Congress International, Inc.

900 Montclair Road

Birmingham, Alabama 35213-1206

(3) International Conference of Building Officials

5360 South Workman Mill Road

Whittier, California 90601

(4) Council of American Building Officials

5203 Leesburg Pike

Falls Church, Virginia 22041

(5) National Fire Protection Association

Batterymarch Park

Quincy, Massachusetts 02269

oOo

(5-12-87) SPECIAL PN

__________________________________________________________________________

RD Instruction 1924-A

Exhibit F

Page 1

PAYMENT BOND

KNOW ALL PERSONS BY THESE PRESENTS: that

(Name of Contractor)

(Address of Contractor)

a ______________________________________, hereinafter called PRINCIPAL and

(Corporation, Partnership or Individual)

(Name of Surety)

hereinafter called SURETY, are held and firmly bound unto ________________

(Name of Owner)

(Address of Owner)

hereinafter called OWNER and the United States of America acting through Rural

Development hereinafter referred to as GOVERNMENT, and unto all persons,

firms, and corporations who or which may furnish labor, or who furnish

materials to perform as described under the contract and to their successors

and assigns in the total aggregate penal sum of ________,

__________________________________________ Dollars ($____________________) in

lawful money of the United States, for the payment or which sum well and truly

to be made, we bind ourselves, our heirs, executors, administrators,

successors, and assigns, jointly and severally, firmly by these presents.

THE CONDITION DF THIS OBLIGATION is such that whereas, the PRINCIPAL entered

into a certain contract with the OWNER, dated the ________________ day of

__________19__, a copy of which is hereto attached and made a part hereof for

the construction of:

NOW, THEREFORE, if the PRINCIPAL shall properly make payment to all persons,

firms, and corporations furnishing materials for or performing labor in the

prosecution of the WORK provided for in such contract, and any authorized

extension or modification thereof, including all amounts due for materials,

lubricants, oil, gasoline, coal and coke, repairs on machinery;, equipment and

tools, consumed or used in connection with the construction of such WORK, and

for all labor cost incurred in such WORK including that by a SUBCONTRACTOR,

and to any mechanic or materialman lienholder whether it acquires its lien by

operation of State or Federal law; then this obligation shall be void,

otherwise to remain in full force and effect.

(5-12-87) SPECIAL PN

RD Instruction 1924-A

Exhibit F

Page 2

PROVIDED, that beneficiaries or claimants hereunder shall be limited to the

SUBCONTRACTORS, and persons, firms, and corporations having a direct contract

with the PRINCIPAL or its SUBCONTRACTOR.

PROVIDED, FURTHER, that the said SURETY for value received hereby stipulates

and agrees that no change, extension of the, alteration or addition to the

terms of the contract or to the WORK to be performed thereunder or the

SPECIFICATIONS accompanying the same shall in any way affect its obligation on

this BOND, and in does hereby waive notice of any such change, extension of

time, alteration or addition to the terms of this contract or to the WORK or

to the SPECIFICATIONS.

PROVIDE, FURTHER, that no suit or action shall be commenced hereunder by any

claimant: (a) Unless claimant, other than one having a direct contract with

the PRINCIPAL (or with the GOVERNMENT in the event the GOVERNMENT is

performing the obligations of the OWNER), shall have given written notice to

any two of the following: The PRINCIPAL, the OWNER, or the SURETY above named

within ninety (90) days after such claimant did or Performed the last of the

work or labor, or furnished the last of the materials for which said claim is

made, stating with substantial accuracy the amount claimed and the name of the

party to whom the materials were furnished, or for whom the work or labor was

done or performed. Such notice shall be served by mailing the same by

the PRINCIPAL, OWNER, or SURETY, at any place where an office is regularly

maintained for the transaction of business, or served in any manner in which

legal process may be served in the state in which the aforesaid project is

located, save that such service need not be made by a public officer. (b)

After the expiration of one (1) year following the date of which PRINCIPAL

ceased work on said CONTRACT, it being understood, however, that if any

limitation embodied in the BOND is prohibited by any law controlling the

construction hereof, such limitation shall be deemed to be amended so as to be

equal to the minimum period of limitation permitted by such law.

PROVIDED, FURTHER, that it is expressly agreed that this BOND shall be deemed

amended automatically and immediately, without formal and separate amendments

hereto, upon amendment to the Contract not increasing the contract price more

than 20 percent, so as to bind the PRINCIPAL and the SURETY to the full and

faithful performance of the Contract as so amended. The term "Amendment",

wherever used in this BOND and whether referring to this BOND, the contract or

the loan Documents shall include any alteration, addition, extension or

modification of any character whatsoever.

PROVIDED, FURTHER, that no final settlement between the OWNER or GOVERNMENT

and the CONTRACTOR shall abridge the right of any beneficiary hereunder, whose

claim may be unsatisfied.

RD Instruction 1924-A

Exhibit F

Page 3

IN WITNESS THEREOF, this instrument is executed in ________ Counterparts,

Number

each one of which shall be deemed an original, this the _____ day of

_________.

ATTEST: _________________________________

Principal

_______________________________________

(Principal) Secretary

(SEAL) By _________________________(s)

_______________________________

(Address)

______________________________________ ________________________________

Witness as to Principal

_______________________________________

(Address)

______________________________________ ________________________________

Surety

ATTEST:

______________________________________

Witness as to Surety

By ____________________________

Attorney-in-Fact

______________________________________ ________________________________

(Address) (Address)

______________________________________ ________________________________

NOTE: Date of BOND must not be prior to date of Contract.

If CONTRACTOR is partnership, all partners should execute BOND.

IMPORTANT: Surety companies executing BONDS must appear on the Treasury

Department's most current list (Circular 570 as amended) and be authorized to

transact business in the state where the project is located.

oOo

(5-12-87) SPECIAL PN

__________________________________________________________________________

__________________________________________________________

______________________________________________________________________________

RD Instruction 1924-A

Exhibit G

Page 1

PERFORMANCE BOND

KNOW ALL PERSONS BY THESE PRESENTS: that

(Name or Contractor)

(Address or Contractor)

a _____________________________________, hereinafter called PRINCIPAL, and

(Corporation, Partnership, or Individual)

(Name of Surety)

(Address of Surety)

hereinafter called SURETY, are held and firmly bound unto ___________________

(Name of Owner)

(Address of Owner)

hereinafter called OWNER, and the United States of America acting through

Rural Development hereinafter referred to as the GOVERNMENT in the total

aggregate penal sum of

_____________________________ Dollars ($ ______________________) in lawful

money of the United States, for the payment of which sum well and truly to be

made, we bind ourselves, our heirs, executors, administrators, successors, and

assigns, jointly and severally, firmly by these presents.

THE CONDITION OF THIS OBLIGATION is such that whereas, the PRINCIPAL entered

into a certain contract with the OWNER, dated the _____________ day of _____

19 , a copy of which is hereto attached and made a part hereof for the

construction of:

NOW, THEREFORE, if the PRINCIPAL shall well, truly and faithfully perform its

duties, all the undertakings, covenants, terms, conditions, and agreements of

said contract during the original term thereof, and any extensions thereof

which may be granted by the OWNER, or GOVERNMENT, with or without notice to

the SURETY and during the guaranty period and if the PRINCIPAL shall satisfy

(05-12-87) SPECIAL PN

RD Instruction 1924-A

Exhibit G

Page 2

all claims and demands incurred under such contract, and shall fully indemnify

and save harmless the OWNER and GOVERNMENT from all costs and damages which it

may suffer by reason of failure to do so, and shall reimburse and repay the

OWNER and GOVERNMENT all outlay and expense which the OWNER and GOVERNMENT may

incur in making good any default, then this obligation shall be void,

otherwise to remain in full force and effect.

PROVIDED, FURTHER, that the liability of the PRINCIPAL AND SURETY hereunder to

the GOVERNMENT shall be subject to the same limitations and defenses as maybe,

Available to then against a claim hereunder by the OWNER, provided, however,

that the GOVERNMENT may, at its option, perform any obligations of the OWNER

required by the contract.

PROVIDED, FURTHER, that the said SURETY, for value received hereby, stipulates

and agrees that no change, extension of time, alteration or addition to the

terms of the contract or to WORK to be performed thereunder or the

SPECIFICATIONS accompanying same shall in any way affect its obligation on

this BOND, and it does hereby waive notice of any such change, extension of

time, alteration or addition to the terms of the contract or to the WORK or to

the SPECIFICATIONS.

PROVIDED, FURTHER, that it is expressly agreed that the BOND shall be deemed

amended automatically and immediately, without formal and separate amendments

hereto, upon amendment to the Contract not increasing the contract price more

than 20 percent, so as to bind the PRINCIPAL and the SURETY to the full and

faithful performance of the CONTRACT as so amended. The term "Amendment",

wherever used in this BOND, and whether referring to this BOND, the Contract

or the Loan Documents shall include any alteration, addition, extension, or

modification of any character whatsoever.

PROVIDED, FURTHER, that no final settlement between the OWNER or GOVERNMENT

and the PRINCIPAL shall abridge the right of the other beneficiary hereunder,

whose claim may be unsatisfied. The OWNER and GOVERNMENT are the only

beneficiaries hereunder.

RD Instruction 1924-A

Exhibit G

Page 3

IN WITNESS WHEREOF, this instrument is executed in ________ counterparts,

Number

each one of which shall be deemed an original, this the ______ day of

___________.

ATTEST: _________________________________

Principal

_____________________________________

(Principal) Secretary

(SEAL) By _________________________(s)

_______________________________

(Address)

__________________________________ _______________________________

Witness as to Principal

___________________________________

(Address)

___________________________________ _______________________________

Surety

ATTEST:

___________________________________

Witness as to Surety

By_____________________________

Attorney-in-Fact

___________________________________ _______________________________

(Address) (Address)

___________________________________ _______________________________

oOo

(5-12-87) SPECIAL PN

RD Instruction 1924-A

Exhibit H

Page 1

PROHIBITION OF LEAD-BASED PAINTS

I. PURPOSE: This Exhibit prescribes the methods to be used to comply with

the requirements of the Lead-Based Paint Poisoning Prevention Act, Public law

91-695, as amended, (42 U.S.C. 4801 et seq.) and the amendment to Section 501

(3) of Public law 91-695 (42 U.S.C. 4841 (3)) as amended by the National

Consumer Health Information and Health Promotion Act of 1976, Public Law

94317.

II. POLICY: Rural Development shall not permit the use of lead-based paint

on applicable surfaces of any housing or buildings purchased, repaired, or

rehabilitated for human habitation with financial assistance provided by this

agency. Paints used on applicable surfaces shall not contain more than 0.06

percent lead by weight calculated as lead metal in the total nonvolatile

content of liquid paints or in the dried film of paint already applied.

III. DEFINITIONS:

A. Housing and buildings mean any house, apartment, or structure

intended for human habitation. This includes any institutional

structure where persons reside, such as an orphanage, boarding school,

dormitory, day care center or extended care facility, college housing,

domestic or migratory labor housing, hospitals, group practice

facilities, community facilities, and business or industrial facilities.

B. Applicable surfaces means all interior surfaces, whether accessible

or not, and those exterior surfaces which are readily accessible to

children under 7 years of age, such as stairs, decks, porches, railings,

windows, and doors.

C. Lead-based paint means any paint containing more than .5 of 1

percentum lead by weight, or with respect to paint manufactured after

June 22. 1977, lead-based paint containing more than six one-hundredths

of 1 percentum lead by weight.

(5-12-87) SPECIAL PN

RD Instruction 1924-A

Exhibit H

Page 2

IV. REQUIREMENTS:

A. All new housing and buildings shall comply with paragraph II of this

Exhibit H.

B. For all existing housing and buildings built after 1950, on which a

loan is closed after July 19, 1978, Rural Development requires that the

applicant, borrower or tenant be notified of the potential hazard of

leadbased paints, of the symptoms and treatment of lead poisoning, and

of the importance and availability of maintenance and removal techniques

for eliminating such hazards. This will be accomplished by providing

each applicant, borrower and/or tenant with a copy of Attachment 1 to

this Exhibit H, "Lead-based Paint Hazards, Symptoms, Treatment and

Techniques for Eliminating Hazards," available in any Rural Development

County Office. Copies of Attachment 1 may be obtained by the County

Supervisor from the Finance Office, 1520 Market Street, St. Louis, MO.

63103.

C. For all existing housing or buildings built before 1950 on which a

loan is closed after July 19, 1978, Rural Development requires that the

applicant, borrower and/or tenant be notified as in paragraph IV B and a

copy of Attachment 2 to this Exhibit H, "Caution Note on lead-Based

Paint Hazard," available in any Rural Development County Office, shall

be delivered to the hands of the applicant, borrower and/or tenant.

D. For all property transfers and inventory property sales, Attachments

1 and 2 to this Exhibit H (available in any Rural Development office)

shall be handed to the purchaser by the Rural Development

representative.

E. All inventory housing or buildings built before 1950 to be repaired,

renovated, or rehabilitated shall have tests for lead content, and where

found to be hazardous, shall have any interior lead-based paint removed

entirely. Loose or cracked surfaces shall be cleaned down to the base

surface before repainting with a paint containing not more than six one-

hundredths of 1 percentum lead by weight in the total nonvolatile

content of the paint or the equivalent measure of lead in the dried film

of paint already applied or both. Contracting officers shall include

the following provision prohibiting the use of lead-based paint in all

contracts and subcontracts for construction or rehabilitation of housing

or buildings:

RD Instruction 1924-A

Exhibit H

Page 3

LEAD-BASED PAINT PROHIBITION

No lead-based paint containing more than .5 of 1 percentum lead by weight

(calculated as lead metal) in the total nonvolatile content of the paint, or

the equivalent measure of lead in the dried film of paint already applied, or

both, or with respect to paint manufactured after June 22, 1977, no lead-based

paint containing more than .06 of 1 percentum lead by weight (calculated as

lead metal) in the total nonvolatile content of the paint, or the equivalent

measure of lead in the dried film of paint already applied, or both, shall be

used in the construction or rehabilitation of residential structures under

this contract or any subsequent subcontractors.

Authority: This amendment is made under provisions of 5 USC 301, 40 USC 486

(c).

Done at ____________, ______________________________ this _________

day of ________________________, 19____.

_________________________

Rural Development Representative

V SUMMARY: Section 401 of the Lead-Based Paint Poisoning Prevention Act as

amended by the National Consumer Health Information and Health Promotion Act

of 1976, PL 94-317, provides a requirement that each federal agency issue

regulations and to take such other steps necessary to prohibit the use of

leadbased paint on all applicable surfaces in Federal and Federally-assisted

construction or rehabilitation of residential structures. The Lead-Based

Paint Poisoning Prevention Act, PL 91-695, January 13, 1971, provides for

grants to units of general local government in any state for the purpose of

detecting and treating incidents of lead-based paint poisoning. Title II of

this Act also provides for grants to the same units to identify those area of

risk including testing to detect the presence of lead-based paint on surfaces

of residential housing.

(5-12-87) SPECIAL PN

RD Instruction 1924-A

Exhibit H

Attachment 1

U.S. Department of Agriculture

Rural Development

Notice to Purchasers and Renters of Housing Constructed

Before 1978

Warning - Lead-Based Paint Hazards

If the home you intend to purchase or rent was built before 1978, it may

contain lead-based paint. About three out of every four pre-1978 buildings

have lead-based paint.

YOU NEED TO READ THIS

NOTICE ABOUT LEAD

WHAT IS LEAD POISONING?

Lead poisoning means having high concentrations of lead in the body. LEAD

CAN:

o Cause major health problems, especially in children

under 7 years old.

o Damage a child's brain, nervous system, kidneys,

hearing, or coordination.

o Affect learning.

o Cause behavior problems, blindness, and even death.

o Cause problems in pregnancy and affect a baby's normal

development.

WHO GETS LEAD POISONING?

Anyone can get lead poisoning, but children under 7 years old are at the

greatest risk, because their bodies are not fully grown and are easily

damaged. The risk is worse if the child:

o Lives in the older home (built/constructed before 1978,

and even more so before 1960).

o Does not eat regular meals (an empty stomach accepts

lead more easily).

o Does not eat enough foods with iron or calcium.

o Has parents who work in lead-related jobs.

o Has played in the same places as brothers, sisters, and

friends who have been lead poisoned. (Lead poison

cannot be spread from person to person. It comes from

contact with lead.)

Women of childbearing age are also at risk, because lead poisoning can cause

miscarriages, premature births, and the poison can be passed onto their unborn

babies.

(05-04-94) PN 223

RD Instruction 1924-A

Exhibit H

Attachment 1

Page 2

WHERE DOES LEAD POISONING COME FROM?

The lead hazards that children most often touch are lead dust, leaded soil,

loose chips and chewable surfaces painted with lead-based paint. A child may

be harmed when it puts into its mouth, toys, pacifiers, or hands that have

leaded soil or lead dust on them. Lead also comes from:

o Moving parts of windows and doors that can make lead

dust and chips.

o Lead-based paint on windows, doors, wood trim, walls and

cabinets in kitchens and bathrooms, on porches, stairs,

railings, fire escapes, and lamp posts.

o Soil next to exterior of buildings that have been

painted with lead-based paint and leaded gasoline dust

in soil near busy streets.

o Drinking water (pipes and solder).

o Parents who may bring lead dust home from work on skin,

clothes, and hair.

o Colored newsprint and car batteries.

o Highly glazed pottery and cookware from other countries.

o Removing old paint when refinishing furniture.

In recent years some uses of lead in products that could cause lead poisoning

have been reduced or banned. This is true for lead in gasoline, lead in

solder used in water pipes, and lead in paint. Still, a great deal of lead

remains in and around older homes, and lead-based paint and accompanying lead

dust are seen as the major source.

HOW DO I KNOW IF MY CHILD IS AFFECTED?

Is your child:

o Cranky? o Unable to concentrate?

o Vomiting? o Hyperactive?

o Tired? o Playing with children who

o Unwilling to eat or play? have these symptoms?

o Complaining of stomach

aches or headaches?

These can be signs of lead poisoning. However, your children might not show

these signs and yet be poisoned; only your clinic or doctor can test for sure.

RD Instruction 1924-A

Exhibit H

Attachment 1

Page 3

WHAT CAN I DO ABOUT LEAD POISONING?

Your child should first be tested for lead in the blood between the age of 6

months and 1 year. Ask the clinic or your doctor to perform the test during a

regular checkup. Your doctor will tell you how often you should have your

child tested after that. A small amount of lead in the blood may not make

your child seem very sick, but it can affect how well he or she can learn. If

your child does have high amounts of lead in the blood, you should seek

treatment and have your home tested for lead-based paint and lead dust.

HOW DO I KNOW IF MY HOME HAS LEAD-BASED PAINT?

Rural Development inspection does not determine whether a home actually has

lead-based paint. It only identifies whether there is defective paint in a

home that might have lead-based paint. Therefore, the only way you can know

for sure is to have the home tested by a qualified firm or laboratory. Both

the interior and exterior should be tested. You should contact the local

health or environmental office for help.

WHAT DO I DO IF MY HOME DOES HAVE LEAD?

Do not try to get rid of lead-based paint yourself. You could make things

worse for you and your family. If your home contains lead-based paint and you

are the owner, contact a company that specializes in lead-based paint

abatement. Have professionals do the job correctly and safely. This may cost

thousands of dollars, depending on the amount of lead-based paint found in

your home, but it will also protect you and your children from the effects of

lead poisoning. If you are a renter, notify the management or landlord

immediately and cooperate with the management's office or landlord's efforts

to repair any deficiencies and keep your home in good shape. To prevent

peeling paint, most housing should be repainted every 3 to 5 years. If your

home has not been repainted within this period of time, inform the management

office or landlord. In the meantime, there are things you can do immediately

to protect your child:

o Keep your child away from paint chips and dust.

o Wet-mop floors and wipe down surfaces often, especially

where the floors and walls meet. Be sure to clean the

space where the window sash rests on the sill. Keeping

the floor clear of paint chips, dust, and dirt is easy

and very important. Do not sweep or vacuum lead-based

paint chips or dust with an ordinary vacuum cleaner.

Lead dust is so fine it will pass through a vacuum

cleaner bag and spread into the air you breathe.

o Make sure your children wash their hands frequently and

always before eating.

o Wash toys, teething rings, and pacifiers frequently.

o0o

(05-04-94) PN 223

--------------------------------------------------------------------------

RD Instruction 1924-A

Exhibit H

Attachment 2

For all existing housing or buildings constructed before 1978, Rural

Development requires that the applicant, borrower, or tenant be notified of a

potential lead-based paint hazard by delivering to them a copy of the caution

note provided below.

CAUTION NOTE ON LEAD-BASED PAINT HAZARD

THIS HOUSE WAS CONSTRUCTED BEFORE 1978.

There is a possibility that it may contain some lead-based paint that was in

use before 1978.

SEE "WARNING - LEAD-BASED PAINT HAZARDS"

Attachment 1 to Exhibit H of RD Instruction 1924-A,

for more information.

CAUTION NOTE ON LEAD-BASED PAINT HAZARD

THIS HOUSE WAS CONSTRUCTED BEFORE 1978.

There is a possibility that it may contain some lead-based paint that was in

use before 1978.

SEE "WARNING - LEAD-BASED PAINT HAZARDS"

Attachment 1 to Exhibit H of RD Instruction 1924-A,

for more information.

CAUTION NOTE ON LEAD-BASED PAINT HAZARDS

THIS HOUSE WAS CONSTRUCTED BEFORE 1978.

There is a possibility that it may contain some lead-based paint that was in

use before 1978.

SEE "WARNING - LEAD-BASED PAINT HAZARDS"

Attachment 1 to Exhibit H of RD Instruction 1924-A,

for more information.

(Cut along lines)

o0o

(05-04-94) PN 223

RD Instruction 1924-A

Exhibit I

Page 1

(Revision 3)

GUIDELINES FOR SEASONAL FARM LABOR HOUSING

SECTION 100

GENERAL - This Exhibit sets forth the guidelines and minimum standards for

planning and construction of new Labor Housing (LH) that will be

occupied on a seasonal basis. Rehabilitation LH projects will be in

substantial conformance with these guidelines and standards. A

"seasonal basis" is defined as 6 months or less per year. Seasonal

housing for the farmworker need not be convertible to year-round

occupancy; however, the living units shall be designed for the

intended type of tenant, the time of occupancy, the location, the

specific site, and the planned method of operation. It is important

that the design of the LH site and buildings will help to create a

pleasing lifestyle which will promote human dignity and pride among

its tenants.

SECTION 200

CODES AND REGULATIONS - Compliance is required with National, state and

local codes or regulators affecting design, construction,

mechanical, electrical, fire prevention, sanitation, and site

improvement.

SECTION 300

PLANNING

300-1 Complete architectural/engineering services in accordance with

this subpart will be required if an LH grant is involved or the LH

loan will involve more than four individual family units, or any

number of group living units, or dormitory units accommodating 20

or more persons.

300-2 Building and site design shall provide for a safe, secure,

economical, healthful, and attractive living facility and

environment suited to the needs of the domestic farm laborer and

his/her family.

300-3 At least 5 percent of the individual family units in a

project, or one unit, whichever is greater, and all common use

facilities will be accessible to or adaptable for physically

handicapped persons. This requirement may be modified if a

recipient/borrower shows, through a market survey acceptable to

Rural Development, that a different percentage of accessible or

adaptable units is more appropriate for a particular project and

its service area.

(5-12-87) SPECIAL PN

RD Instruction 1924-A

Exhibit I

Page 2

(Revision 3)

SITE DESIGN

301-1 General - The site design shall be arranged to utilize and

preserve the favorable features and characteristics of the

property and to avoid or minimize the potential harmful effect of

unfavorable features. Particular attention is directed to

§1944.164 (l), (m), and (n) of Subpart D of Part 1944 of this

chapter with reference to compliance with 7 CFR part 1970. Some

of the features which must be considered are the topography,

drainage, access, building orientation to sun and breezes; and

advantageous features, such as vegetation, trees, good views,

etc.; or disadvantageous features, such as offensive odors,

noxious plants, noise, dust, health hazards, etc. (Revised

04-01-2016, SPECIAL PN.)

301-2 Drainage - Surface and subsurface drainage systems will be

provided in accordance with the applicable development standard

and Subpart C of Part 1924 of this chapter.

(Revised 6-22-87, SPECIAL PN.)

301-3 Water and Sewage Disposal - Water supply and sewage disposal

installations shall comply with Subpart C of Part 1924 of this

chapter, the applicable development standard and all governing

state and local department of health requirements. Where

environmentally and economically feasible, the LH facility shall

correct to public water and waste disposal system. (Revised 6-22-

87, SPECIAL PN.)

301-4 Electrical - Adequate electrical service shall be provided for

exterior and interior lighting and for the operation of equipment.

301-5 Vehicular Access and Parking

301-5.1 Safe and convenient all-weather roads shall be

provided to connect the site and its improvement to the

off-site public road.

301-5.2 All-weather drives and parking shall be provided for

tenants, and for trucks and buses as needed within the

site. Driveways, parking areas and walkway locations

shall be in substantial conformance with the applicable

development standard.

RD Instruction 1924-A

Exhibit I

Page 2A

(Added 08-20-93, SPECIAL PN.)

301-6 Walks

301-6.1 Walks shall be provided for safe convenient access to

all dwellings and for safe pedestrian circulation

throughout the development between locations and

facilities where major need for pedestrian access can be

anticipated, such as laundry, parking to dwelling units,

common dining rooms, etc.

RD Instruction 1924-A

Exhibit I

Page 3

301-6.2 Walkways shall be hard surface, such as concrete, asphalt or

stabilized travel, and shall be adequately drained.

301-7 Building location

301-7.1 Side and rear yards and distances between buildings shall

conform to the applicable development standard.

301-8 Garbage and Refuse

301-8.1 Garbage and refuse containers for individual units are required

and shall be stored on durable functional racks or shall be located in a

central screened area with easily cleaned surfaces. Single containers

for multiple units shall be screened and in locations designed to

accommodate collection vehicle functions.

301-9 Fencing

301-9.1 Fencing used in the site design for project privacy or building

security shall be harmonious in appearance with other fences and

surrounding facilities which fall within the same view.

301-10 Outdoor living

301-10.1 All public areas where pedestrian use can be anticipated after

sunset shall be adequately lighted for security purposes, such as

walkways to common use facilities - laundry, dining halls, building

entrances, parking areas, etc.

301-11 Planting and Landscaping

301-11.1 Planting and lawns or ground covers shall be provided as

required to protect the site from erosion, control dust, for active and

passive recreation areas, and provide a pleasant environment.

(5-12-87) SPECIAL PN

RD Instruction 1924-A

Exhibit I

Page 4

BUILDING DESIGN

302-1.1 Living Units Design

302-1.1 Individual Family Unit - One family or extended family to

a unit which shall contain adequate space for living, dining,

kitchen, bath and bedrooms. Multifamily type units are required

whenever possible for economy of site and building construction.

a. The minimum total net living unit size shall be 400 square

feet. This size assures occupancy of four persons. Units planned

for additional occupants shall include an additional 60 square feet

of living area per person.

b. A living/dining area shall be provided to accommodate a table

and chairs with adequate dining and circulation space for the

intended number of occupants. The living/dining area should be

combined with the kitchen area.

c. The kitchen shall contain a sink, cooking range and

refrigerator. A minimum free countertop area of six square feet is

required. A minimum of 40 square feet of shelf area is required.

d. Each bathroom shall contain adequate space and circulation for

a bathtub and/or shower, water closet and lavatory. Access to the

bathroom shall not be through another bedroom in dwelling units

containing more than one bedroom.

e. Bedroom areas separate from living areas are required. The

design of the unit shall provide a minimum of 50 square feet of

sleeping area per intended occupant including storage. Housing for

families with children shall have a separate bedroom or sleeping

area for the adult couples. A two foot by two foot shelf with a two

foot long clothes hanging rod is required for each occupant.

302-1.2 Group Living Unit - A living unit designed for the occupancy of

more than one family or for separate occupancy of male and/or female

groups. Common bath spaces shall be contained in the same building.

Group living units for families shall have separate bedrooms for each

adult couple.

a. The design of the unit shall provide for a minimum of 620

square feet of total net living area for eight persons and an

additional 60 square feet for each additional occupant.

RD Instruction 1924-A

Exhibit I

Page 5

Additional area shall be planned for a second bathroom when

anticipated occupancy will exceed eight persons, or if it will be

occupied by persons of both sexes.

b. The kitchen shall contain an adequate sink, cooking range,

refrigerator, and space the size of which is commensurate with the

needs of the group living unit. A minimum of free countertop area

of eight square feet is required. A minimum of 50 square feet of

shelf area is required.

c. Refer to paragraph 302-1.1 b for living/dining requirements.

d. Each bathroom shall contain adequate space and circulation for

comfortable access to, and use of, fixtures which will include a

bathtub and/or shower, water closet and lavatory. In no case shall

minimum fixtures be less than that required per paragraph 302-1.3 c

below.

e. Refer to paragraph 302-1.1 e for bedroom requirements.

302.1.3 Dormitory Living Unit - A building which provides common

sleeping quarters for persons of the same sex and may or may not contain

kitchen and/or dining facilities in the same building as the sleeping

quarters.

a. The design of areas for sleeping purposes, using single beds,

shall provide for not less than 72 square feet per occupant

including storage.

b. The design of areas for sleeping purposes, using double bunk

beds, shall provide for not less than 40 square feet per occupant.

Triple bunk beds will not be allowed.

c. The design of each dormitory building must include a water

closet and a bathtub or shower for each 12 occupants, and a lavatory

for each 8 persons. Urinals may be substituted for men's water

closets on the basis of one urinal for one water closet, up to

maximum of one-third of the required water closets.

d. Adequate kitchen and dining facilities must be provided which

maybe in the dormitory building or detached at a distance of not

more than 200 feet from the sleeping quarters. In either case, the

space must contain adequate cooking ranges, refrigerators, sinks,

countertop, food storage shelves, tables and chairs, and circulation

space. These facilities will comply with the requirements of the

"Food Service Sanitation Ordinance and Code," Part V of the "Food

Service Sanitation Manual," U.S. Public Health Service Publication

934 (1965).

(5-12-87) SPECIAL PN

RD Instruction 1924-A

Exhibit I

Page 6

302-2 Other Facilities

302-2.1 General - Other facilities, authorized by Subpart D of Part

1944 of this chapter, needed by farm workers may be provided in

several ways: Part of a living unit, located in the project, or,

with the exception of laundry facilities, available nearby.

302-2.2 Laundry Facilities - Laundry facilities shall be required

on-site. Drying yards shall be provided if dryer units are not

provided. The design of washing facilities shall plan for a minimum

rate of one washer for each 20 occupants. One drying unit may be

provided for every two washers, if automatic dryers are customarily

provided for rental housing in the community. Laundry facilities

shall have adequate space for loading the units, circulation, and

clothes folding.

302-2.3 Office and Maintenance - An office and maintenance space

shall be provided or available, commensurate with the number of

living units served, and shall meet the criteria of the Rural

Development Manual of Acceptable Practices. If necessary, the

maintenance space shall have sufficient area to accommodate

furniture storage.

302-2.4 Child Care Center - Where feasible, a child care center may

be included to provide supervised activity and safety for children

while the parents work. Supervisors and workers for such centers

are sometimes enlisted on a volunteer basis and the cost borne by

nonprofit associations or community organizations. Grants are

sometimes available through Federal or state programs.

Consequently, the design of the child care center should meet the

requirements of those sources providing organizational personnel

and/or financing.

302-2.5 Manager's Dwelling - If a manager's dwelling unit is to be

provided as a part of the Rural Development loan or grant, it will

meet these guidelines. However, if it is necessary to provide a

year-round caretaker/manager dwelling unit with Rural Development

loan or grant funds, it will meet the applicable development

standard.

RD Instruction 1924-A

Exhibit I

Page 7

302-2.6 Recreation - Outdoor recreation space is required and shall

be commensurate with the needs of the occupants. Active and passive

recreation areas will be provided which may consist of outdoor

sitting areas, playfields, tor lots and play equipment.

GENERAL REQUIREMENTS

303-1 Materials and Construction - All materials and their installation

in a LH facility shall meet the applicable development standard. Any

exceptions to these requirements for materials and their installation

must be obtained with the approval of the Rural Development National

Office. Material should be selected that is durable and easily cleaned

and maintained.

303-2 Fire Protection - Fire protection and egress shall be provided to

comply with the applicable development standard.

303-3 Light, Ventilation, Screening - Natural light and ventilation

requirements as specified in the applicable development standard shall

be followed. Screening of all exterior openings is required.

303-4 Ceiling Heights - Ceiling heights of habitable rooms shall be a

minimum of seven feet six inches clear, and seven feet in halls or baths

in dwelling units. Public rooms shall have a minimum of eight feet

clear ceiling height. Sloping ceilings shall have at least seven feet

six inches for 1/2 the room with no portion less than five feet in

height.

303-5 Heating and Cooling - Heating and cooling and/or air circulation

equipment shall be installed as needed for the comfort of the tenants,

considering the climate and time of year the facility will be in

operation. Maximum feasible use of passive solar heating and cooling

techniques shall be required. All equipment installed will be in

accordance with the applicable development standard to protect the

health and safety of occupants.

303-6 Plumbing - Plumbing materials and their installation shall meet

the applicable development standard, but water will be required to all

living units, baths, kitchens and laundry facilities.

(5-12-87) SPECIAL PN

RD Instruction 1924-A

Exhibit I

Page 8

303-7 Insulation, Thermal Standards, Winterization - Insulation will be

required where either heating or cooling is provided as per paragraph

303-5 above or when climatic conditions dictate a need for insulation.

Insulation Standards will comply with Exhibit D, paragraph IV C 3, of

this subpart, or the state insulation standards, whichever are the more

stringent.

303-8 Electrical - Electrical design, equipment and installation shall

comply with the requirements of the latest edition of the National

Electrical Code, and the applicable development standard for materials

and their installation. Individual family units may be separately

metered; other types of dwelling units may be separately metered as

required.

303-9 Security and Winterization - Adequate management and physical

measures will be provided as necessary to protect the facility during

off-season periods, including adequate heating and insulation as

required.

oOo

RD Instruction 1924-A

Exhibit J

MANUFACTURED HOME SITES, RENTAL PROJECTS AND SUBDIVISIONS:

DEVELOPMENT, INSTALLATION AND SET-UP

Table of Contents

Page

PART A - INTRODUCTION 1

I. Purpose and Scope. 1

II. Background. 1

III. Definitions. 2

IV. Compliance with Local Regulations. 4

V. Applicable Standards, Regulations and Manuals. 4

PART B - CONSTRUCTION AND LAND DEVELOPMENT 5

I. General Acceptability Criteria. 5

II. Development on Scattered Sites and in Subdivisions. 7

A. General. 7

B. Site Planning and Development. 8

C. Foundation Systems, Anchoring and Set-up. 8

III. Rental Housing Project Development. 9

A. General. 9

B. Site Planning and Development. 9

C. Foundation Systems, Anchoring and Set-up. 9

IV. Accessory Structures and Related Facilities. 9

A. General. 9

B. Accessory Structures. 9

C. Related Facilities (Rental Housing Projects). 10

V. Fire Protection and Safety. 10

PART C - DRAWINGS, SPECIFICATIONS, CONTRACT DOCUMENTS AND OTHER 11

DOCUMENTATION

I. General. 11

II. Scattered Sites. 12

III. Subdivisions. 12

(12-18-86) SPECIAL PN

RD Instruction 1924-A

Exhibit J

Page

IV. Rental Housing Projects. 12

V. Specifications. 12

PART D - INSPECTION OF DEVELOPMENT WORK 13

I. General. 13

II. Inspections. 13

III. Warranty Plan Coverage. 13

RD Instruction 1924-A

Exhibit J

Page 1

(Revision 1)

MANUFACTURED HOME SITES, RENTAL PROJECTS AND SUBDIVISIONS:

DEVELOPMENT, INSTALLATION AND SET-UP

PART A - INTRODUCTION

I. Purpose and Scope. This Exhibit describes and identifies acceptable site

development, installation and set-up practices and concepts for manufactured

homes. It is intended for Rural Development field personnel, builders,

developers, sponsors, and others participating in Rural Development housing

programs.

This Exhibit applies to all manufactured homes (except those referenced in

Exhibit B of this subpart) on scattered sites or in rental projects and

subdivisions and covers the requirements for design and construction of

manufactured home communities. Rural Development may approve alternatives or

substitutes if it finds the proposed design satisfactory for the proposed use,

and if the materials, installation, device, arrangement, or method of work is

at least equivalent to that prescribed in this Exhibit considering quality,

strength, effectiveness, durability, safety and protection of life and health.

Rural Development will require satisfactory evidence to be submitted to

substantiate claims made regarding the use of any proposed alternative.

II. Background. Rural Development has authority to make (1) Section 502

Rural Housing (RH) loans with respect to manufactured homes and lots, and (2)

Section 515 Rural Rental Housing (RRH) loans with respect to manufactured home

rental projects.

The manufactured home must be constructed in conformance with the Federal

Manufactured Home Construction and Safety Standard (FMHCSS) and be permanently

attached to a site-built permanent foundation which meets or exceeds the

Minimum Property Standards (MPS) for One- and Two-Family Dwellings or Model

Building Codes acceptable to Rural Development. The manufactured home must be

permanently attached to that foundation by anchoring devices adequate to

resist all loads identified in the MPS. This includes resistance to ground

movements, seismic shaking, potential shearing, overturning and uplift loads

caused by wind. Note that anchoring straps or cables affixed to ground

anchors other than footings will not meet these requirements.

7 CFR part 1970 applies on scattered sites, in subdivisions and rental

projects with regard to the development, installation and set-up of

manufactured homes. To determine the level of environmental analysis required

for a particular application, each manufactured home or lot involved will be

considered as equivalent to one housing unit or lot. Because the development,

installation and set-up of manufactured home communities, including scattered

sites, rental projects, and subdivisions, differ in some requirements from

conventional site and subdivision development, two of the purposes of this

exhibit are to: (Revised 04-01-2016, SPECIAL PN.)

(12-18-86) SPECIAL PN

RD Instruction 1924-A

Exhibit J

Page 2

(Revision 1)

A. Encourage economical and orderly development of such communities and

nearby areas, and

B. Promote the safety and health of residents of such communities.

Therefore, this Exhibit identifies those required standards and regulations

and suggested guidelines for eliminating and preventing health and safety

hazards and promoting the economical and orderly development and utilization

of land for planning and development of manufactured home communities. The

Exhibit also provides the requirements for meeting the following:

A. Resistance to Wind. Foundations and anchorages shall be designed to

resist wind forces specified in American National Standards Institute

(ANSI) A-58.1-1982 for the geographic area in which the manufactured

home will be sited;

B. Proper Installation. The manufacturer's installation instructions

provided with each manufactured home shall contain instructions for at

least one site-built foundation with interior and/or perimeter supports.

Rural Development field office personnel shall review to determine its

adequacy as security for an Rural Development loan only, the foundation

design concept for compliance with this Exhibit, the Rural

Development/MPS and any Model Building Code acceptable to Rural

Development in that particular geographic area; and

C. Proper Foundation Design. Manufactured homes shall be installed on

a foundation system which is designed and constructed to sustain, within

allowable stress and settlement limitations, all applicable loads. Any

foundation and anchorage system or method of construction to be used

should be analyzed in accordance with well-established principles of

mechanics and structural engineering.

III. Definitions. For the purpose of this Exhibit the following definitions

apply:

Accessory Building or Structure. A subordinate building or structure which is

an addition to or supplements the facilities provided by a manufactured home.

Anchoring Systems. An approved system for securing the manufactured home to

the ground or foundation system that will, when properly designed and

installed, resist overturning and lateral movement of the home from wind

forces.

Contiguous. Sharing a boundary, adjoining or adjacent. A lot or subdivision

is considered to be contiguous to other lots or subdivisions if it is

adjoining, touching or adjacent.

RD Instruction 1924-A

Exhibit J

Page 3

(Revision 2)

Federal Manufactured Home Construction and Safety Standards (FMHLSS). A 1976

federal standard, commonly known as the HUD Standard, for the construction,

design and performance of a manufactured home which meets the needs of the

public including the need for quality, durability and safety. Units

conforming to the FMHCSS are certified by an affixed label that reads as

follows:

AS EVIDENCED BY THIS LABEL NO.____________

THE MANUFACTURER CERTIFIES TO THE BEST OF THE

MANUFACTURER'S KNOWLEDGE AND BELIEF THAT THIS

MANUFACTURED HOME HAS BEEN INSPECTED IN

ACCORDANCE WITH THE REQUIREMENTS OF THE

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT AND

IS CONSTRUCTED IN CONFORMANCE WITH THE FEDERAL

MANUFACTURED HOME CONSTRUCTION AND SAFETY

STANDARDS IN EFFECT ON THE DATE OF MANUFACTURE.

SEE DATA PLATE.

Manufactured Home. A structure which is built to the Federal Manufactured

Home Construction and Safety Standards and Rural Development's thermal

requirements. It is transportable in one or more sections, which in the

traveling mode is ten body feet or more in width, and when erected on site is

four hundred or more square feet, and which is built on a permanent foundation

when connected to the required utilities. It is designed and constructed for

permanent occupancy by a single family and contains permanent eating, cooking,

sleeping and sanitary facilities. The plumbing, heating, and electrical

systems are contained in the structure.

Manufactured Home Community. A parcel or contiguous parcels of land which

contains two or more manufactured home sites available to the general public

for occupancy. Sites and units may be for rent, or sites may be sold for

residential occupancy (as in a subdivision).

Manufactured Home Rental Project. A parcel or multiple parcels of land which

have been so designated and improved to contain manufactured homes with sites

available for rent.

Manufactured Home Site. A designated parcel of land in a manufactured home

rental project, subdivision or scattered site designed for the accommodation

of a unit and its accessory structures for the exclusive use of the occupant.

Manufactured Home Subdivisions. Five or more contiguous (developed or

undeveloped) lots, or building sites that meet the requirements of Subpart C

of Part 1924 of this chapter. (Revised 6-22-87, SPECIAL PN.)

(12-18-86) SPECIAL PN

RD Instruction 1924-A

Exhibit J

Page 4

(Revision 2)

Permanent Perimeter Enclosure. A permanent perimeter structural system

completely enclosing the space between the floor joist of the manufactured

home and the ground. If separate from the foundation system, the permanent

perimeter enclosure shall be secured to the perimeter of the manufactured

home, properly ventilated and accessible and constructed of materials that

conform to the Rural Development adopted MPS requirements for foundations.

Pier Support System. Consists of footings, piers, caps, leveling spacers, or

approved prefabricated load bearing devices.

Related Facilities. Any nonresidential structure or building used for rental

housing related purposes as defined in §1944.205 of Subpart t of Part 1944 of

this chapter. (Revised 2-25-88, SPECIAL PN)

Site-Built Permanent Foundation System. A foundation system (consisting of a

combination of footings, piers, caps and shims and anchoring devices or

required structural connections) which is designed and constructed to support

the unit and sustain, within allowable stress and settlement limitations, all

applicable loads specified in ANSI A58.1-1982. All loans shall be transferred

from the manufactured home to the earth at a depth below the established frost

line without exceeding the safe bearing capacity of the supporting soil.

Set-up. The work performed and operations involved in the placement of a

manufactured home on a foundation system, to include installation of

accessories or appurtenances and anchoring devices, and when local regulations

permit, connection of utilities, but excluding preparation of the site.

IV. Compliance with Local Regulations. These requirements do not replace

site development standards established by local law, ordinances, or

regulations. Whenever such local standards contain more stringent provisions

than any of the site development, installation and set-up minimums of Rural

Development, the more stringent standards shall govern.

V. Applicable Standards, Regulations and Manuals.

A. Manufactured housing to be financed by Rural Development must comply

with the following standards:

1. Federal Manufactured Home Construction and Safety Standards, 24

CFR Part 3280, mandated by Congress under Title VI of the Federal

Housing and Community Development Act of 1974, except for §3280.506,

"Heat Loss," of Subpart F, "Thermal Protection," to Part 3280.

2. Foundation requirements of the Minimum Property Standards as

adopted by Rural Development or a Model Building Code acceptable to

Rural Development.

RD Instruction 1924-A

Exhibit J

Page 5

(Revision 3)

3. [Reserved]

4. Uniform Federal Accessibility Standard (UFAS).

5. ANSI A58.1-1982, Minimum Design Loads for Buildings and Other

Structures.

B. Manufactured housing to be financed by the Agency shall comply with

all applicable RD regulations, including but not limited to the following:

1. Subpart C of part 1924 of this chapter "Planning and Performing

Site Development Work." (Revised 6-22-87, SPECIAL PN.)

2. Subpart A of Part 1924, Exhibit D, Thermal Performance

Construction Standards.

3. 7 CFR part 1970. (Revised 04-01-2016, SPECIAL PN.)

4. 7 CFR part 3550, "Direct Single Family Housing Loans and

Grants." (Revised 01-23-03, SPECIAL PN.)

5. Subpart E of Part 1944, "Rural Rental Housing Loan Policies,

Procedures, and Authorizations."

The requirements of the above references have not been repeated in this

Exhibit. Those requirements contained above are either mandatory or minimums

and every effort should be made by the applicant, builder-developer or dealer-

contractor to utilize higher standards, when appropriate.

PART B - CONSTRUCTION AND LAND DEVELOPMENT

I. General Acceptability Criteria. The following criteria apply to

development on scattered sites, in subdivisions and in rental project

communities.

A. A manufactured home development including a site, rental project or

subdivision shall be located on property designated for that use, where

designations exist, by the local jurisdiction.

B. Conditions of soil, ground water level, drainage, flooding and

topography shall not create hazards to the property and health or safety of

the residents.

(12-18-86) SPECIAL PN

RD Instruction 1924-A

Exhibit J

Page 6

(Revision 3)

C. The finished grade elevation beneath the manufactured home or the

first floor elevation of the habitable space, whichever is lower, must be

above the 100-year flood elevation. This requirement applies wherever

manufactured homes may be installed, not just in locations designated by the

National Flood Insurance Program as areas of special flood hazards. The use

of fill to accomplish this is a last resort. As is stated in EO 11988 and 7

CFR part 1970, it is the Agency’s policy not to approve or fund any proposal

in a 100-year floodplain area unless there is no practicable alternative to

such a floodplain location. (Revised 04-01-2016, SPECIAL PN.)

D. Essential services such as employment centers, shopping, schools,

recreation areas, police and fire protection, and garbage and trash removal

shall be convenient to the development and any site, community, or subdivision

must comply with the environmental review requirements in accordance with 7

CFR part 1970. (Revised 04-01-2016, SPECIAL PN.)

E. Manufactured home sites, rental projects and subdivisions shall not

be subject to any adverse influences of adjacent land uses. An adverse

influence is considered as one that is out of the acceptable level or range of

a recognizable standard or where no standard exists is considered a nuisance

irrespective of a site being zoned for manufactured home use. Health, safety

and aesthetic consequences of location shall be carefully assessed by

inspection of the site prior to selection for development. Undesirable land

uses such as deteriorated residential or commercial areas and noxious

industrial properties shall be avoided to ensure compatibility. Other

undesirable elements such as heavily traveled highways, airport runways,

railroads, or fire hazards and other areas subject to recognizably intolerable

noise levels shall be avoided.

F. The requirements for streets shall be those found in subpart C of

Part 1924 of this chapter. (Revised 6-22-87, SPECIAL PN.)

G. The site design and development shall be in accordance with sound

engineering and architectural practices and shall provide for all utilities in

a manner which allows adequate, economic, safe, energy efficient and

dependable systems with sufficient easements for their required installation

and maintenance.

H. Utilities for each manufactured home site, rental housing project or

subdivision shall be designed and installed in accordance with subpart C of

Part 1924 of this chapter; and the State health authority having jurisdiction,

and all local laws and regulations requiring approval prior to construction.

(Revised 6-22-87, SPECIAL PN.)

RD Instruction 1924-A

Exhibit J

Page 6A

(Added 01-23-03, SPECIAL PN)

I. Exhibit C, Section V of this Subpart shall be complied with by the

applicant, dealer-contractor or builder-developer for manufactured home

projects with individual water supply and sewage disposal systems. This

Exhibit shall be used by the Rural Development, County Supervisors, District

Directors, and State Directors in reviewing submissions.

J. During the planning, design, and construction of the foundation

system and/or perimeter enclosure, provisions shall be made for the

installation and connection of on-site water, gas, electrical and sewer

systems, which are necessary for the normal operation of the manufactured

home. Water and sewer system hookups shall be adequately protected from

freezing.

RD Instruction 1924-A

Exhibit J

Page 7

(Revision 3)

II. Development on Scattered Sites and in Subdivisions.

A. General. Scattered sites and subdivision developments will be

planned and constructed in accordance with specific requirements of this

subpart, subpart C of part 1924, and 7 CFR part 1970, and the applicable

Agency/MPS or Model Building Codes acceptable to the Agency. Manufactured

homes for development in a manufactured home community shall: (Revised

04-01-2016, SPECIAL PN.)

1. Be erected with or without a basement on a site-built permanent

foundation that meets or exceeds applicable requirements of the Rural

Development/MPS for One- and Two-Family Dwellings or Model Building

Codes acceptable to Rural Development;

2. Be permanently attached to that foundation by anchoring devices

adequate to resist all loads identified in the Rural Development adopted

MPS (this includes resistance to ground movements, seismic shaking,

potential shearing, overturning and uplift loads caused by wind, etc.);

3. Have had the towing hitch or running gear, which includes tongues,

axles, brakes, wheels, lights and other parts of the chassis that

operate only during transportation removed;

4. Have any crawl space beneath the manufactured home properly

ventilated and enclosed by a continuous permanent perimeter enclosure.

If it is not the supporting foundation, designed to resist all forces to

which it may be subject without transmitting to the building

superstructure movements or any effects caused by frost heave, soil

settlement (consolidation), or shrinking or swelling of expansive soils;

and be constructed of materials that conform to Rural Development

adopted MPS requirements for foundations;

5. Have the manufactured home insulated to meet the energy conserving

requirements contained in Exhibit D of this subpart;

6. Have a manufactured home site, site improvements, and all other

features of the mortgaged property not addressed by the Federal

Manufactured Home Construction and Safety Standards, meet or exceed

applicable requirements of this Subpart and Part 1924, Subpart C of this

chapter, the Rural Development adopted MPS except paragraph 311-2.2 or a

Model Building Code acceptable to Rural Development; (Revised 6-22-87,

SPECIAL PN.)

7. Have had the manufactured unit itself braced and stiffened where

necessary before it leaves the factory to eliminate racking and

potential damage during transportation; and

8. Be eligible for financing in accordance with the requirements of

either Section 502, or Section 515 of Rural Development's Housing

Program, for which purpose the beginning of construction will be the

commencement of on-site work even though the manufactured home itself

may have been produced and temporarily stored prior to the date of

application for financing.

(12-18-86) SPECIAL PN

RD Instruction 1924-A

Exhibit J

Page 8

(Revision 3)

B. Site Planning and Development. The site planning and development of

manufactured home scattered sites and subdivisions shall also comply with the

following:

1. Arrangement of Structures and Facilities. The site, including the

manufactured home, accessory structures, and all site improvements shall

be harmoniously and efficiently organized in relation to topography, the

shape of the plot, and the shape, size and position of the unit.

Particular attention shall be paid to use, appearance and livability.

2. Adaptation to Site Assets. The manufactured home shall be fitted to

the terrain with a minimum disturbance of the land. Existing trees,

rock formations, and other natural site features shall be preserved to

the extent practical. Favorable views or outlooks shall be emphasized

by the plan.

3. Site Plan. The site plan shall provide for a desirable residential

environment which is an asset to the community in which it is located.

4. Lot Size. The size of manufactured home lots (scattered sites and

subdivisions) shall be determined by 7 CFR part 3550 and subpart C of

Part 1924 of this chapter. (Revised 01-23-03, SPECIAL PN.)

C. Foundation Systems, Anchoring and Set-up.

1. The foundation system shall be constructed in accordance with this

subpart and one of the following: (a) the foundation system included in

the manufacturer's installation instructions meeting Rural

Development/MPS requirements, (b) the Rural Development/MPS 4900.1,

which specifies performance requirements for foundations in Section 600

"General" and paragraph 601-16 "Foundations," or (c) an Agency

recognized model building code.

2. The manufactured home permanent foundation system shall constitute a

permanent load bearing support system for the manufactured home. The

manufacturer or applicant shall be permitted to design or specify the

installation of a foundation system which meets Rural Development/MPS

design requirements for foundations and the general requirements above.

3. The applicant's responsibility for proper design and installation of

the permanent foundation system, anchoring and set-up shall he in

accordance with § 1924.5(f)(l) of this subpart.

4. The builder/developer of the manufactured home property, for

proposed construction, shall submit with the application

RD Instruction 1924-A

Exhibit J

Page 9

(Revision 3)

for financing by the applicant or for a conditional commitment design

calculations, details and drawings for the installation, anchorage and

construction of permanent foundation and perimeter enclosure to be used.

III. Rental Housing Project Development.

A. General. Manufactured housing rental developments shall be planned

and constructed in accordance with requirements of subpart C of part

1924; this subpart; 7 CFR part 1970; the Agency/MPS; and the

requirements of subpart E of part 1944 of this chapter. (Revised

04-01-2016, SPECIAL PN.)

B. Site Planning and Development. Site planning and development shall

adapt to individual site conditions and the type of market to be served,

reflect advances in site planning and development techniques, and be

adaptable to the trends in design of the manufactured home. Site

planning and development shall utilize existing terrain, trees, shrubs

and rock formations to the extent practicable. A regimental style site

plan design should be avoided.

C. Foundation Systems, Anchoring and Set-up. Foundation systems,

anchoring and set-ups for manufactured home rental projects (site and

home) developed under Rural Development Section 515 Rural Rental Housing

program shall comply with the requirements of paragraph II A and II C

above.

IV. Accessory Structures and Related Facilities.

A. General. Accessory structures and related facilities are dependent

upon the manufactured home and its environment.

1. Accessory structures and related facilities shall be planned,

designed and constructed in accordance with the applicable

provisions of this subpart; the Rural Development/MPS; and local

criteria of the authority having jurisdiction.

2. Accessory structures and related facilities shall be designed in

a manner that will eliminate and prevent health and safety hazards

and enhance the appearance of the manufactured home and its

environment.

3. Accessory structures and related facilities shall not obstruct

required openings for light and ventilation of the manufactured home

and shall not hamper installation and utility connection of the

unit.

B. Accessory Structures.

1. Accessory structures shall not include spaces for pantries,

bath, toilets, laundries, closets or utility rooms.

(12-18-86) SPECIAL PN

RD Instruction 1924-A

Exhibit J

Page 10

(Revision 3)

2. Accessory structures shall be carefully designed and constructed

for the convenience and comfort of the manufactured home occupant.

These features significantly affect the visual appearance of the

community and influence livability.

C. Related Facilities (Rental Housing Projects).

1. This includes those facilities as defined in Sections 1944.205

and 1944.212 (e) of Subpart E of Part 1944 of this chapter.

(Revised 2-25-88, SPECIAL PN)

2. Related facilities built on-site must meet the Rural

Development/MPS and Subpart A of Part 1924 of this chapter or other

building codes approved by Rural Development.

3. Workmanship shall be of a quality equal to good standard

practice. Material shall be of such kind and quality as to assure

reasonable durability and economy of maintenance, all commensurate

with the class of building under consideration.

4. All members and parts of the construction shall be properly

designed to carry all loads imposed without detrimental effect on

finish or covering materials.

5. The structure shall be adequately braced against lateral

stresses and each member shall be correctly fitted and connected.

6. Adequate precautions shall be taken to protect against fire and

accidents.

7. All related facilities which require accessibility to the

handicapped must comply with the Uniform Federal Accessibility

Standard (UFAS).

V. Fire Protection and Safety.

A. The design of the site plan for each manufactured community - and

scattered site shall meet the fire protection and safety requirements of

the local authority responsible for providing the necessary fire

protection services.

B. All fire detection and alarm systems, and water supply requirements

for fire protection for manufactured communities shall be in accordance

with the local authority responsible for providing the necessary fire

protection services.

C. Any portion of a manufactured home shall not be closer than the

local separation requirements of the development standard for side to

side, end to end, and end to side siting. If the exposed composite wall

and roof of two or more manufactured homes are proposed to be joined

they shall be without openings and constructed of materials which will

RD Instruction 1924-A

Exhibit J

Page 11

(Revision 2)

provide a minimum one-hour fire rating each, or the manufactured homes

are separated by a one-hour fire rated barrier designed and approved for

such installation and permitted by the authority having jurisdiction.

D. Manufactured homes shall not be positioned vertically (stacked) with

one over the other in whole or in part without the specific approval of

the authority having jurisdiction.

PART C - DRAWINGS, SPECIFICATIONS, CONTRACT DOCUMENTS AND OTHER DOCUMENTATION

I. General. Adequate site development and foundation installation drawings

and specifications shall be provided by the applicant or dealer-contractor to

the Agency to fully describe the construction and other development work.

These documents shall be provided according to the requirements of §

1924.5(f)(l) of this subpart. Contract documents will be prepared in

accordance with § 1924.6 and, in the case of multiple family housing

construction and development, § 1924.13 of this subpart.

A. The documents recommended shall be used as a guide for drawings and

specifications to be submitted in support of all types of loan and/or

grant applications involving manufactured homes. Adequate and accurate

drawings and specifications are necessary to:

1. Determine the acceptability of the physical environment and

improvements,

2. Determine compliance with the applicable standards and codes,

3. Review cost estimates, and

4. Provide a basis for financing, inspections, and the warranty.

B. Detailed floor plans, drawings and are not required for any

manufactured home to be installed on a scattered site, in a subdivision

or rental housing project. However, a schematic floor plan should be

submitted by the applicant when applying for Agency financing. The unit

must have an affixed label as specified in paragraph XIV (c) (3) of

Exhibit F of subpart A of Part 1944 indicating that the unit is

constructed to the HUD Title II thermal standards for the appropriate

winter degree days. This will indicate that the manufacturer certifies

that the unit has been properly inspected and it meets the Agency

Thermal Performance Construction Standard. (Revised 01-23-03, SPECIAL

PN.)

(12-18-86) SPECIAL PN

RD Instruction 1924-A

Exhibit J

Page 12

(Revision 2)

C. For proposed construction, the builder or dealer-contractor shall submit

with the loan or grant application design calculations, details and drawings

for the installation, anchorage and construction of the permanent foundations

and perimeter enclosure to be used. Drawings and specifications for

foundation systems will be reviewed and examined by either the Agency County

Supervisor, District Director, or State Architect/Engineer for foundation

support locations, loads and connection requirements specified by the

manufacturer as a basis for evaluating foundation compliance with the Rural

Development/MPS or Model Building Code, and for determining design suitability

for soil conditions. Drawings and specifications will also be examined by

Rural Development to determine compliance with all other on-site features not

covered by the FMHCSS.

D. Foundation design sections and details of all critical construction

points systems, anchorage methods, and structural items shall be scaled

as necessary to provide all appropriate information 1:30 (3/8" = 1'-0")

minimum.

II. Scattered Sites. Drawings for single family manufactured housing shall

be submitted by the applicant in addition to the requirements of paragraph I

above and the requirements of paragraphs II A and D-7 of Exhibit C of this

subpart.

III. Subdivisions. Subpart C of Part 1924 of this chapter will be used in

preparing and providing supporting documents. (Revised 6-22-87, SPECIAL PN.)

IV. Rental Housing Projects. Subpart C of Part 1924 of this chapter will be

used in preparing and providing supporting documents. (Revised 6-22-87,

SPECIAL PN.)

V. Specifications.

A. Form Rural Development/1924-2, "Description of Materials," or other

acceptable and comparable descriptions of all materials used for site

development, foundation installation and the permanent perimeter

enclosure shall be submitted with the drawings by the applicant.

B. The material identification information shall be in sufficient

detail to fully describe the material, size and grade. Where necessary,

additional sheets shall be attached as well as manufacturer's

specification sheets for equipment and/or special materials.

RD Instruction 1924-A

Exhibit J

Page 13

(Revision 1)

PART D - INSPECTION OF DEVELOPMENT WORK

I. General. The following policies will govern the inspection of all

manufactured housing development work. This includes scattered sites,

subdivisions, rental housing projects and all accessory structures and related

facilities unless otherwise indicated.

II. Inspections.

A. The responsibility for frequency and purpose of inspections shall be

in accordance with § 1924.9(b)(l), (2) and (3) of this subpart. The

inspection requirements of § 1924.13 apply to the planning and conduct

of construction work on all 515 housing developments that are more

extensive in scope and more complex in nature than those involving an

individual manufactured housing unit. The Stage 2 inspection customary

for site-built housing when the building is enclosed is not required for

manufactured homes.

The Stage 2 inspection for manufactured homes will be made within two

working days after erection or placement on the foundation to determine

compliance with accepted installation drawings and specifications for

installation and set-up and to verify that the correct unit is on the

site.

Stage 2 and 3 inspections for manufactured homes may be combined when

authorized by the State Director.

B. The borrower will join the County Supervisor or the District

Director in making periodic inspections as often as possible and always

for the final inspection.

C. The borrower should be encouraged to make enough periodic visits to

the site to be familiar with the progress and performance of the work in

order to protect the borrower's interest. If the borrower observes or

otherwise becomes aware of any fault or defect in the work or

nonconformance with the contract documents, the borrower should give

prompt written notice thereof to the dealer-contractor and a copy of the

notice to the appropriate County Supervisor or District Director.

D. During inspection, it will generally be infeasible to determine

whether a manufactured unit erected on a site was properly braced and

stiffened during transportation. Inspectors should examine these units

(12-18-86) SPECIAL PN

RD Instruction 1924-A

Exhibit J

Page 14

(Added 01-23-03, SPECIAL PN.)

to determine that there is no obvious damage or loosening of fastenings

that may have occurred during transportation. The dealer-contractor

must warrant these units against such damage, which should protect the

Agency’s interest.

III. Warranty Plan Coverage. The warranty requirements for all development

work shall be in accordance with § 1924.9(d) of this subpart and 7 CFR part

3550, subpart B. (Revised 01-23-03, SPECIAL PN.)

oOo

RD Instruction 1924-A

Exhibit K

Page 1

CLASSIFICATIONS FOR MULTI-FAMILY RESIDENTIAL REHABILITATION WORK

I. GENERAL

This Exhibit distinguishes between what Rural Development considers

maintenance and repair work, moderate rehabilitation and substantial

rehabilitation. In all cases, the building or project to be

rehabilitated shall be structurally sound. The applicant shall have a

structural analysis of the existing building made to determine the

adequacy of all structural systems for the proposed rehabilitation.

II. DEFINITIONS

Maintenance and Repair - Work involved in the selective replacement and

general maintenance and repair of certain materials, appliances or

components of an existing residential building.

Moderate Rehabilitation - All work directly involved in the

rearrangement of interior space, the replacement of finish materials or

components of the electrical, plumbing, heating or conveyance system of

an existing multi-family residential building. Work and improvements

are considered to be more than routine maintenance and repair.

Substantial Rehabilitation - All work directly involved in the

rearrangement of interior space that involves alteration of load bearing

partitions and columns; the replacement of the electrical, plumbing,

heating or conveyance systems; and the addition to and/or major

conversion of existing multi-family residential buildings or other

building structures.

Moderate rehabilitation and repair shall not be limited to building

changes for cosmetic or convenience purposes. In all cases moderate

rehabilitation shall involve a minimum of three (3) components of

building rehabilitation listed as moderate. Unless combined with other

improvements in a project that are considered to be moderate or

substantial rehabilitation the items identified as maintenance and

repair are considered to be cosmetic and convenience changes.

When a rehabilitation project consists of both moderate and substantial

rehabilitation components, those substantial rehabilitation components

shall be in accordance with Rural Development's development standards

and local codes and regulation requirements. Where the majority of

project components of building rehabilitation are considered substantial

the project shall be considered in the substantial rehabilitation

category.

(5-12-87) SPECIAL PN

RD Instruction 1924-K

Exhibit K

Page 2

Those site components of rehabilitation such as landscaping, grading,

drainage, fencing, parking areas, recreation areas, water and waste

disposal systems, etc., whether considered either maintenance and

repair, moderate rehabilitation or substantial rehabilitation shall be

in accordance with Rural Development's development standards for site

development work; all local codes and regulation requirements; and sound

engineering and architectural practices.

Any alteration of a structure listed or eligible for listing on the

National Register of Historic Places may be considered either moderate

or substantial rehabilitation; however, it shall conform first to the

Secretary of the Interior's Standards for Rehabilitation and Guidelines

for Rehabilitating Historic Buildings and then to Rural Development's

requirements. In cases where the Secretary of the Interior's standards

cannot be met, rehabilitation will conform to the agreed upon

approaches, treatments and techniques resulting from the consultation

process between Rural Development, the borrower, the State Historic

Preservation Officer and the Advisory Council of Historic Preservation.

III. COMPONENTS OF MULTI-FAMILY BUILDING REHABILITATION

The components of multi-family building rehabilitation necessary and

generally considered by Rural Development to be either maintenance and

repair, moderate rehabilitation or substantial rehabilitation include

but are not limited to those listed in the following chart.

RD Instruction 1924-A

Exhibit K

Page 3

COMPONENTS OF MULTI-FAMILY BUILDING REHABILITATION

Maintenance Moderate Substantial

COMPONENTS and Repair Rehab. Rehab.

Air conditioning o

Appliance replacement or repair o

Cabinet replacement or repair o

Carpeting o

Caulking o

Ceiling framing o

Clothes closets or shelving improvements o

Door repair o

Drywall repair o

Gutters and downspouts o

Hardware replacement or repair o

Kitchen cabinet improvement o

Lighting fixture replacement or repair o

Mail boxes o

Painting

Paneling

Partition repair

Roof repair

Signage

Stair repair

Tile work

Wallpapering

Window shades and curtains

(5-12-87) SPECIAL PN

RD Instruction 1924-A

Exhibit K

Page 4

COMPONENTS OF MULTI-FAMILY BUILDING REHABILITATION

Exterior entrance redesign, relocation

Maintenance Moderate Substantial

COMPONENTS and Repair Rehab. Rehab.

Door replacement

Drywall replacement

Elevator components replacement

Finish flooring materials o

Flashing o

Furnace replacement o

Gas pipes o

Insulation o

Lath and plaster replacement o

New shingles or roof replacement o

Partition (on bearing) replacement,

or relocation o

Plumbing fixture replacement o

Pointing o

Porch and steps alteration or

Replacement o

Stair replacement, or relocation o

Storm windows and weatherstripping o

Subfloor material replacement o

Trim - exterior and interior o

Window replacement o

RD Instruction 1924-A

Exhibit K

Page 5

COMPONENTS OF MULTI-FAMILY BUILDING REHABILITATION

Maintenance Moderate Substantial

COMPONENTS and Repair Rehab. Rehab.

- New or alteration to the:

Mehchanical system

Soil pipes

Vent pipes

Waste pipes

- Alteration or replacement of

structural components -

Beams o

Chimneys and vents

Columns and post

Electrical service - replacement or new o

Elevator replacement o

Exterior walls o

Floor construction o

Footing o

Foundation wall o

Foundation waterproofing o

Interior walls o

Moderate repair and rehabilitation shall not be limited to building changes

for cosmetic purposes. In all cases moderate rehabilitation shall involve a

minimum of three (3) components of building rehabilitation listed as moderate.

Unless combined with other improvements in a project that are considered to be

moderate or substantial rehabilitation the items identified as maintenance and

repair are considered to be cosmetic and convenient changes.

(5-12-87) SPECIAL PN

RD Instruction 1924-A

Exhibit L

INSURED 10-YEAR HOME WARRANTY PLAN REQUIREMENTS

I. Purpose: In recent years, numerous third-party home warranty plans have

been developed offering new homeowners varying degrees of protection against

builder default and/or major structural defects in their homes. This exhibit

establishes the criteria and procedures by which a warranty plan is found

acceptable for new construction of single family homes financed by Rural

Development. An acceptable warranty plan will:

A. Assure that Rural Development borrowers receive adequate warranty

coverage,

B. In certain circumstances, eliminate the requirement for Rural

Development personnel to make the first two construction inspections,

and

C. Permit a loan up to the market value of the security (less the

unpaid principal balance and past due interest of any other liens

against the security), even though Rural Development personnel may not

have performed periodic inspections during construction.

II. Types of Warranty Companies.

A. An insured warranty company is underwritten by an insurance carrier,

licensed to operate as an insurer by the states where the warranty

company plans to operate, and has an acceptable rating from a nationally

recognized rating company such as A. M. Best Company.

B. A risk retention group is an insurer which is licensed in one state

and is authorized, under the Products Liability Risk Retention Act of

1981, to issue its policies in all states. This authority is not

challenged by Rural Development; however, there remains some question as

to the legal propriety of a 10-year insured warranty insurer to be a

risk-retention group. If at some future time any state insurance

commission or regulatory agency challenges the legal authority of such

group, Rural Development will reconsider its acceptance of the group.

C. Individual state warranty plans, such as that offered by the State

of New Jersey, are backed by the full faith and credit of the state

government.

III. Plan Requirements

To be considered acceptable, a warranty plan must include the following

features:

A. The entire cost (fee, premium, etc.) of the coverage is prepaid and

coverage automatically transfers to subsequent owners without additional

cost.

B. The coverage is not cancellable by the warrantor (builder), warranty

company or insurer.

(5-12-87) SPECIAL PN

RD Instruction 1924-A

Exhibit L

Page 2

C. The coverage includes at least the following:

(1) For one year from the effective date, any defects caused by

faulty workmanship or defective materials.

(2) During the second year after the effective date, the warranty

continues to cover the wiring, piping and duct work of the

electrical, plumbing, heating and cooling systems, plus the items in

(3).

(3) During the third through the tenth years, the warranty

continues to cover minor structural defects. A minor structural

defect is actual damage to the load-bearing portion of the home

including damage due to subsidence, expansion or lateral movement of

the soil (excluding movement caused by flood or earthquake) which

affects its load-bearing function and which vitally affects or is

imminently likely to affect use of the home for residential

purposes.

D. A system is provided for complaint (claims) handling which includes

a conciliation and, if necessary to resolve matters in dispute,

arbitration arranges by the American Arbitration Association or similar

organization.

E. A construction inspection plan is required if Rural Development is

to eliminate the first two Rural Development inspections or permit a

full market value loan when Rural Development inspections are not

conducted.

IV. Information for Review.

A. Companies submitting warranty plans for a determination of

acceptability must support requests with the following information.

(1) Evidence that the insured warranty company has met the

applicable state licensing and/or regulatory requirements in the

state in which the company plans to operate.

(2) Evidence that the insurance carrier underwriting the warranty

plan is licensed to operate as an insurer in the states in which the

company plans to operate and has an acceptable rating from a

nationally recognized rating company such as A. M. Best Company.

(3) State warranty plan agencies will provide evidence that the

plan is backed by the full faith and credit of the state.

RD Instruction 1924-A

Exhibit L

Page 3

(4) A full description of the warranty plan including information

on the fees, builder and home registration procedures, required

construction standards, construction inspection procedures, coverage

provided and claims procedures.

(5) A sample copy of the warranty information and/or policy which

is provided to the homeowner.

(6) Suggested means by which Rural Development field offices can

readily assure that the builder is a member in good standing prior

to loan approval and that a warranty will be issued upon the

completion of construction prior to the final release of funds.

B. Submission and Acceptance.

(1) Insured warranty companies, except those operating as risk

retention groups, and state warranty plan agencies will submit their

requests and supporting information to the Rural Development State

Director in the state in which they plan to operate. State

Directors will determine the acceptability of insured warranty plans

and state warranty plans in their jurisdictions, notify the company

or agency of the decision in writing and notify field offices by

issuance of a State Supplement including the names and addresses of

acceptable warranty companies and any other pertinent information.

(2) Warranty companies claiming authority as risk retention groups

will submit their requests and supporting information including

certification that it has complied with all requirements of the

Products Liability Risk Retention Act of 1981 (Public law 97-45) and

information indicating the state in which it is licensed,

information to the Rural Development National Office, Single Family

Housing Processing Division. The National Office will determine the

acceptability of the warranty of a risk retention group, notify the

company of the decision in writing and notify field offices by

issuance of an attachment to this Exhibit.

V. Warranty Performance.

A. County Supervisors will report inadequate warranty performance

through their District Director to the State Director. State Directors

will review the situation, assist in resolving any problems and, if

necessary, initiate action under Subpart F of Part 1924 of this chapter.

State Directors will inform, by memorandum, the Director, Single Family

Housing Processing Division, National Office, of any problems with

warranty performance and if any debarment action is initiated.

B. State Directors will annually monitor each warranty company and/or

its insurer to assure continued compliance with state licensing and/or

regulatory requirements.

(5-12-87) SPECIAL PN

RD Instruction 1924-A

Exhibit L

Attachment 1

Acceptable Warranty Companies

The warranty companies listed below claim authority to act as a risk retention

group under the Products Liability Risk Retention Act of 1981 and as such, to

operate in all states to provide 10-year home warranties. This authority

remains subject to future challenges by any state insurance commissioner or

regulatory agency; however, until such challenge is made, Rural Development

accepts their warranty.

Name and Address Area of Operation

Home Buyers Warranty

Corporation (HBW or 2-10)

2675 S Abilene Street

Aurora, CO 80014

303-368-4805

800-488-8844

All States

Residential Warranty

Corporation (RWC)

5300 Derry Street

Harrisburg, PA 17111

717-561-4480

800-247-1812

All States

Manufactured Housing Warranty

Corporation

5300 Derry Street

Harrisburg, PA 17111

717-561-4480

800-247-1812

All States

StrucSure Home Warranty

6825 E. Tennessee Ave.

Suite #410

Denver, CO 80224

303-806-8688

K, AL, AZ, CA, CO, FL, GA, HI, IA,

D, IN, KS, KY, LA, MA, MD, MO, MS,

T, NC, NE, NM, NV, NY, OH, OR, PA,

SC, TN, TX, UT, VA, WA, WY

oOo

(01-12-11) PN 445

RD Instruction 1924-A

Exhibit M

SEVEN STEPS TO COST CERTIFICATION

(To be used with cost certification worksheet)

STEPS RECOMMENDED

RESPONSIBILITY

1. Think cost certification! Place District Office

more emphasis on obtaining

acceptable certifications.

(D/O)/State Office

(S/O) Specialists,

Architect

2. Preliminary estimates (preapplication):

a. Compare unit cost with historic

unit cost.

D/O or S/O

b. Note concerns and forward to S/O. D/O or S/O

c. Compare with Marshall & Swift

cost data.

S/O Specialist,

Architect

d. Note concerns and return to D/O. S/O Specialist

Architect

e. Contact applicant re any discrepancies

noted by D/O and S/O.

D/O or S/O

3. Final Form RD 1924-13 estimates

(application):

a. Determine if all previous discrepancies

were corrected.

D/O or S/O

b. Check to see if all the types of

materials which will be used in the

D/O or S/O

project are reflected in corresponding

line item entries.

If no entry in an applicable line

item, make note for later action.

D/O or S/O

c. Recalculate totals to see if they

agree with applicant's figures.

D/O or S/O

(03-16-94) SPECIAL PN

RD Instruction 1924-A

Exhibit M

Page 2

STEPS

d. Calculate percentages for profit,

overhead, and requirements to

determine if they are within

acceptable ranges.

e. Check to determine if contractor

is qualified to build project.

f. Note results of steps a. through e.

above and forward to S/O.

g. Compare line item costs with historic

line item costs.

h. Match construction contract price

with final cost estimates.

i. Reevaluate the cost estimates and D/O

comments to determine if proposal is

acceptable. If time span since

preapplication exceeds 1 year, run

another Marshall & Swift.

j. Determine if cost estimates were

received from all identities of

interest.

k. Check for applicant's attestation as

to adequacy of accounting system.

l. Determine whether proposal is

acceptable as presented; if not,

note and return to D/O for correction.

m. Contact applicant re any discrepancies

noted by D/O and S/O.

n. Determine if all discrepancies have

been corrected.

o. Determine if cost estimates can be

approved.

RECOMMENDED

RESPONSIBILITY

D/O or S/O

S/O, Architect

S/O Specialist,

Architect

S/O Specialist,

Architect

S/O Specialist,

Architect

S/O Specialist,

Architect

D/O or S/O

RD Instruction 1924-A

STEPS

4. Partial payments to contractor:

a. Recalculate arithmetic.

b. Verify that project architect concurs

with pay estimates.

c. Verify that accumulated total for

general requirements does not exceed

final estimate.

d. Verify that accumulated total for

overhead does not exceed final estimate.

e. Verify that accumulated total for

profit does not exceed final estimate.

f. Verify that there are no expenses

which were not shown on the final

estimates.

g. Determine if there are any changes in

the contract sum due to change orders.

h. Compare the accumulated total with

percentage of completion shown on last

Rural Development inspection report.

5. Change orders:

a. Recalculate arithmetic.

b. Determine if change is justified.

c. Determine if change involves an

identity of interest subcontractor

or supplier.

d. Verify that the cost of the change

is broken down between hard and soft

costs.

(03-16-94) SPECIAL PN

Exhibit M

Page 3

RECOMMENDED

RESPONSIBILITY

D/O or S/O

RD Instruction 1924-A

Exhibit M

Page 4

STEPS

e. Determine if borrower has provided

additional funds for increases in the

contract amount.

6. Cost certification document:

a. Recalculate contractor's arithmetic.

b. Compare each certified line item cost

with the final estimated line item

cost to determine whether total of

certified hard costs are more or less

than estimated.

c. Determine if net hard costs exceeded

the estimated amount and if the total

contract amount was increased.

(i) If contract amount was not

increased, determine if profit was

reduced to offset the increase in

costs.

(ii) If contract amount was increased,

determine the source of additional

funds.

d. If net hard costs were decreased,

determine if profit or overhead were

increase.

e. If overhead or general requirements

exceeds its estimate, determine if

profit was reduced to offset the

increase.

f. If profit was decreased because of

overruns in hard costs and soft

costs were lower than anticipated,

determine if profit was increased to

bring it back to the original estimates.

g. Calculate percentages for profit,

overhead, and requirements.

RECOMMENDED

RESPONSIBILITY

D/O or S/O

D/O or S/O,

Architect

D/O or S/O

D/O, S/O

RD Instruction 1924-A

STEPS

h. Determine if all line items relating

to general requirements and general

overhead were recorded under their

proper categories.

i. Match certified costs with partial

payments.

j. Verify that all discrepancies between

accumulated payments and certified

costs have been resolved.

k. Check to see if cost certification

was based on Generally Accepted

Government Audit Standards requirements.

l. Check qualifications of person

doing cost certification. Record

name of Certified Public Accountant.

m. Determine if costs from all identities

of interest were certified.

n. Check amount of work which was

subcontracted out to others.

o. Determine if this was a Government

contracted cost certification.

p. Check for disclosure of rebates and

discounts.

q. Check opinion letter from CPA for

identity of problems with audit.

7. Final payment to contractor:

a. Recalculate arithmetic.

b. Verify that that project architect

concurred with final pay request.

(03-16-94) SPECIAL PN

RECOMMENDED

RESPONSIBILITY

D/O or S/O

Architect

Exhibit M

Page 5

D/O or S/O

Architect

D/O or S/O

Architect

D/O or S/O

Architect

D/O or S/O

Architect

D/O or S/O

RD Instruction 1924-A

Exhibit M

Page 6

STEPS RECOMMENDED

RESPONSIBIITY

c. Verify that all construction work D/O or S/O

is completed.

d. Determine if releases of claimants were D/O or S/O

obtained.

e. Approve final payment to contractor. D/O or S/O

oOo

RD Instruction 1924-A

Guide 1

Page 1

(INSTRUCTION SHEET ONLY - NOT TO BE INCLUDED

AS PART OF THE CONTRACT DOCUMENTS)

CONTRACT DOCUMENTS

This guide is provided to assist USDA/Rural Development personnel and

applicants in assembling and reviewing Contract Documents for more complex

construction projects such as that administered under § 1924.13.

It is important when preparing or reviewing contract documents that all

clauses are in conformance with Rural Development /Rural Housing Service (RHS)

program requirements as well as those of State and local jurisdictions. These

requirements may vary significantly depending on the relationship between the

Owner and Contractor, the type of surety provided, if any, and the type of RHS

financial assistance. All appropriate document modifications must be made

before United States of America concurrence of the Contract.

Contract Documents may incorporate documents published by the American

Institute of Architects (AIA) if they are the current editions and are used in

accordance with copyright rules. A complete set of Contract Documents may

include the following:

Item

ocument

Advertisement for Bids

ttachment 1

Instructions to Bidders

IA Document A701-1997

Attachment to Instructions to Bidders

ttachment 2

Bid

ttachment 3

Bid Bond

ttachment 4

Compliance Statement

orm RD 400

Notice of Award

ttachment 5

Standard Form of Agreement Between Owner

and Contractor

AIA Document A101-1997

Attachment to Standard Form of Agreement

Between Owner and Contractor

Attachment 6

Certificate of Owner's Attorney

ttachment 7

Contract Concurrence

ttachment 8

Payment Bond

D Inst. 1924

, Exh. F

Performance Bond

D Inst. 1924

, Exh. G

Notice to Proceed

ttachment 9

(continued next page)

(08-26-98) PN 296

RD Instruction 1924-A

Guide 1

Page 2

Item

ocument

General Conditions of the Contract for

Construction

AIA Document A201-1997

Attachment to General Conditions of the

Contract for Construction

Attachment 10

Identity of Interest (IOI) Disclosure

Certificate

Form RD 1944-30

Identity of Interest (IOI) Qualification

orm RD 1944

Contract Change Order

orm RD 1924

Application and Certificate for Payment

IA Document G702-1992

Labor Standards Provisions

D Inst. 1940

, Exh. A

Wage Determinations

epar

ment of Labor

Questions regarding the use of these documents should be referred to the State

Office Architect or Engineer, or the RHS National Office Program Support

Staff.

Attachments:

1. ADVERTISEMENT FOR BIDS

2. ATTACHMENT TO INSTRUCTIONS TO BIDDERS

3. BID

4. BID BOND

5. NOTICE OF AWARD

6. ATTACHMENT TO STANDARD FORM OF AGREEMENT

BETWEEN OWNER AND CONTRACTOR

7. CERTIFICATE OF OWNER'S ATTORNEY

8. CONTRACT CONCURRENCE

9. NOTICE TO PROCEED

10. ATTACHMENT TO GENERAL CONDITIONS OF THE

CONTRACT FOR CONSTRUCTION

o0o

____________________________

__________________________________________________________________________

RD Instruction 1924-A

Guide 1, Attachment 1

ADVERTISEMENT FOR BIDS

Owner

Address

Separate sealed BIDS for the construction of (briefly describe

nature, scope, and major elements of the work) ___________________________

will be received by ______________________________________________________

at the office of _________________________________________________________

until _______, (Local Time)____________________, 19 ______, and then at

said office publicly opened and read aloud.

The CONTRACT DOCUMENTS may be examined at the following locations:

Copies of the CONTRACT DOCUMENTS may be obtained at the office of

_____________________ located at _________________________________________

upon payment of $ _______ for each set.

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(2-16-83) PN 869

______________________________ _________________________________

RD Instruction 1924-A

Guide 1, Attachment 1

Any BIDDER, upon returning the CONTRACT DOCUMENTS promptly and in

good condition, will be refunded the payment, and any non-bidder upon so

returning the CONTRACT DOCUMENTS will be refunded $_______________.

All contracts exceeding $10,000 shall contain a provision requiring

compliance with Executive Order 11246, entitled, "Equal Employment

Opportunity," as amended by Executive Order 11375 and as supplemented in

Department of Labor regulations (41 CFR Part 60).

DATE

oOo

2/2

RD Instruction 1924-A

Guide 1

Attachment 2

Page 1

ATTACHMENT TO AIA DOCUMENT A701-1997, INSTRUCTIONS TO BIDDERS

The provisions of this Attachment shall delete, modify and supplement the

provisions contained in the "Instructions to Bidders,” AIA Document A701-1997

Edition. The provisions contained in this Attachment will supersede any

conflicting provisions of the AIA Document. The term "Agency,” as used in

this Attachment, means the United States of America, acting through the United

States Department of Agriculture.

ARTICLE 2, BIDDER'S REPRESENTATIONS

Add the following subparagraph:

2.1.5 This Bid has been arrived at independently, without

consultation, communication, or agreement as to any matter relating

to this Bid with any other Bidder or with any competitor.

ARTICLE 4, BIDDING PROCEDURES

Add the following to subparagraph 4.1.1:

Only one copy of the Bid is to be submitted.

Delete subparagraph 4.2.1 and substitute the following:

4.2.1 Each Bid must be accompanied by a Bid Bond payable to the

Owner for five percent of the total amount of the Bid.

Delete subparagraph 4.2.2 and substitute the following:

4.2.2 The Bid Bond shall be written on a form identical to that

included in the Bidding Documents, and the attorney-in-fact who

executes the bond on behalf of the surety shall affix to the bond a

certified and current copy of the power of attorney.

Add the words “payment and performance” before the word “bonds”; and add

the following to subparagraph 4.2.3:

As soon as the Bid prices have been compared, the Owner will return

the Bonds of all except the three lowest responsible Bidders. When

the Agreement is executed, the bonds of the two remaining

unsuccessful bidders will be returned. The Bid Bond of the

successful Bidder will be retained until the Payment Bond and

Performance Bond have been executed and approved, after which it

will be returned.

(08-26-98) PN 296

RD Instruction 1924-A

Guide 1

Attachment 2

Page 2

Add the following to subparagraph to paragraph 4.2:

4.2.4 In the case of failure of the Bidder to execute the Agreement

and obtain the Performance Bond and Payment Bond within the agreed

time, the Owner may consider the Bidder in default, in which case

the Bid Bond accompanying the bid shall become the property of the

Owner.

Add the following subparagraphs to paragraph 4.3:

4.3.5 All applicable laws, ordinances, and the rules and

regulations of all authorities having jurisdiction over construction

of the Project shall apply to the Contract throughout.

4.3.6 The Bidder agrees to abide by the requirements under

Executive Order No. 11246, as amended, including specifically the

provisions of the Equal Opportunity Clause and the Standard Federal

Equal Employment Opportunity Construction Contract Specifications

set forth in the Supplementary Conditions.

4.3.7 Further, the Bidder agrees to abide by the requirements of

section 319 of Public Law 101-121, which pertains to lobbying

activities and applies to the recipients of contracts or

subcontracts that exceed $100,000 at any tier under a Federal loan

that exceeds $150,000 or a Federal Grant that exceeds $100,000.

Each Bid shall be accompanied by a completed lobbying certification

form identical to that included in the Bidding Documents.

4.3.8 The Bidder agrees to abide by the requirements under 7 C.F.R.

part 3017, which pertains to the debarment or suspension of a person

from participating in a Federal program or activity. Each Bid

exceeding $25,000 shall be accompanied by a relevant completed

certifications form identical to that included in the Bidding

Documents.

Delete subparagraph 4.4.1 and substitute the following:

4.4.1 No Bidder may withdraw, modify or cancel a Bid within 60

calendar days after the actual date of the opening thereof. Should

there be reasons why the Contract cannot be awarded within the

specified period, the time may be extended by mutual agreement

between the Owner and the Bidder, and the concurrence of the Agency.

Delete the words ", if required," from subparagraph 4.4.4.

RD Instruction 1924-A

Guide 1

Attachment 2

Page 3

ARTICLE 5, CONSIDERATION OF BIDS

Delete subparagraph 5.3.2 and substitute the following:

5.3.2 The Owner shall have the right to accept Alternates in the

sequence listed and to determine the low Bidder on the basis of the

sum of the Base Bid and the Alternates accepted.

ARTICLE 7, PERFORMANCE BOND AND PAYMENT BOND

Delete subparagraph 7.1.1 and substitute the following:

7.1.1 Prior to execution of the Contract, the Bidder shall furnish

bonds covering the faithful performance of the Contract and the

payment of any obligations arising thereunder in such form and

amount as the Owner may prescribe. Both bonds shall be separately

written, each in the amount of the contract sum. The cost shall be

included in the Bid.

Delete subparagraph 7.1.2 and substitute the following:

7.1.2 Surety companies executing bonds must hold a certificate of

authority as an acceptable surety on Federal Bonds as listed in

Treasury Circular 570, as amended, and be authorized to transact

business in the State where the Project is located.

Delete subparagraph 7.1.3.

Delete subparagraph 7.2.1 and substitute the following:

7.2.1 The party to whom the Contract is awarded will be required to

execute the Agreement and obtain a Performance Bond and Payment Bond

within ten (10) calendar days from the date when the Notice of Award

is delivered to the Bidder. The Notice shall be accompanied by the

necessary Agreement and Bond forms.

Delete subparagraph 7.2.2 and substitute the following:

7.2.2 The bonds shall be written on forms identical to those

included in the Bidding Documents.

(NOTE: Any additional provisions that are necessary to remain effective

after execution of the Contract for Construction will be inserted here and

continue in the same format.)

o0o

(08-26-98) PN 296

__________________________________________________________________________

RD Instruction 1924-A

Guide 1, Attachment 3

BID

Proposal of _________________________________________________ (hereinafter

called "BIDDER"), organized and existing under the laws of the State of

___________________ doing business as __________________________________*. To

the ___________________________________________________________________

____________________________________________ (hereinafter called "OWNER").

In compliance with your Advertisement for Bids, BIDDER hereby proposes to

perform all WORK for the construction of _____________________

in strict accordance with the CONTRACT DOCUMENTS, within the time set forth

therein, and at the prices stated below.

By submission of this BID, each BIDDER certifies, and in the case of a

joint BID each party thereto certifies as to its own organization, that this

BID has been arrived at independently, without consultation, communication, or

agreement as to any matter relating to this BID with any other BIDDER or with

any competitor.

BIDDER hereby agrees to commence WORK under this contract on or before a

date to be specified in the NOTICE TO PROCEED and to fully complete the

PROJECT within _______________________ consecutive calendar days thereafter.

BIDDER further agrees to pay as liquidated damages, the sum of $ ________

* Insert "a corporation", "a partnership", or "an individual" as applicable.

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(2-16-83) PN 869

__________________________________________________________________________

RD Instruction 1924-A

Guide 1, Attachment 3

for each consecutive calendar day thereafter as provided in Article 3 of the

Owner-Contractor Agreement.

BIDDER acknowledges receipt of the following ADDENDA:

BIDDER agrees to perform all the work described in the CONTRACT DOCUMENTS

for the following unit prices or lump sum:

BID SCHEDULE

NOTE: BIDS shall include sales tax and all other applicable taxes and fees.

NO._______ITEM________UNIT_______UNIT PRICE_______AMOUNT_______TOTAL PRICE

2/3

__________________________________________________________________________

RD Instruction 1924-A

Guide 1, Attachment 3

NO._______ITEM________UNIT_______UNIT PRICE_______AMOUNT_______TOTAL PRICE

TOTAL OF BID . . . . . . . . . . . . . . . . . . . . . . . . . $ _________

LUMP SUM PRICE (if applicable) . . . . . . . . . . . . . . . . $ _________

Respectfully submitted:

_____________________________ _____________________

Signature Address

_____________________________ _____________________

Title Date

______________________________ _____________________

License number (if applicable)

SEAL - (if BID is by a corporation)

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(2-16-83) PN 869

__________________________________________________________________________

RD Instruction 1924-A

Guide 1, Attachment 4

BID BOND

KNOW ALL MEN BY THESE PRESENTS, that we, the undersigned, ________________

________________________________________________ as Principal, and

______________________________________________________ as Surety, are

hereby held and firmly bound unto _______________________________ as OWNER

in the penal sum of ______________________________________________________

for the payment of which, well and truly to be made, we hereby jointly and

severally bind ourselves, successors and assigns.

Signed, this _______________________ day of ___________________, 19____.

The Condition of the above obligation is such that whereas the Principal

has submitted to ______________________________________________ a certain

BID, attached hereto and hereby made a part hereof enter into a contract

in writing, for the ______________________________________________________

NOW THEREFORE,

(a) If said BID shall be rejected, or

(b) If said BID shall be accepted and the Principal shall execute

and deliver a contract in the Form of Contract attachment hereto

(properly completed in accordance with said BID) and shall furnish a

BOND for faithful performance of said contract, and for the payment

of all persons performing labor and/or furnishing materials in

connection therewith, and shall in all other respects perform the

agreement created by the acceptance of said BID, then this obligation

shall be void, otherwise the same shall

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(2-16-83) PN 869

________________________________

RD Instruction 1924-A

Guide 1, Attachment 4

remain in force and effect; it being expressly understood and agreed

that the liability of the Surety for any and all claims hereunder

shall, in no event, exceed the penal amount of this obligation as

herein stated.

The Surety, for value received, hereby stipulates and agrees that the

obligations of said Surety and its BOND shall be in no way impaired or

affected by any extension of the time within which the OWNER may accept such

BID; and said Surety does hereby waive notice of any such extension.

IN WITNESS WHEREOF, the Principal and the Surety have hereunto set their hands

and seals, and such of them as are corporations have caused their corporate

seals to be hereto affixed and these presents to be signed by their proper

officers, the day and year first set forth above.

_________________________________(L.S.)

Principal

Surety

By: ____________________________

IMPORTANT - Surety companies executing BONDS must appear on the Treasury

Department's most current list (Circular 570 as amended) and be authorized to

transact business in the State where the project is located. Power of

Attorney must be attached.

oOo

2/2

__________________________________________________________________________

_____________________________

RD Instruction 1924-A

Guide 1, Attachment 5

NOTICE OF AWARD

TO:____________________________

____________________________

PROJECT Description: _____________________________________________________

The OWNER has considered the BID submitted by you for the above described

WORK in response to its Advertisement for Bids dated ________________, 19

____, and Information for Bidders.

You are hereby notified that your BID has been accepted for items in the

amount of $ _____________.

You are required by the Information for Bidders to execute the Agreement

and furnish the required Contractor’s Performance BOND, Payment BOND and

certificates of insurance within ten (10) calendar days from the date of this

Notice to you.

If you fail to execute said Agreement and to furnish said BONDS within

ten (10) days from the date of this Notice, said OWNER will be entitled to

consider all your rights arising out of the Owner’s acceptance of your BID as

abandoned and as a forfeiture of your BID BOND. The OWNER will be entitled to

such other rights as may be granted by law.

You are required to return an acknowledged copy of this NOTICE OF AWARD

to the OWNER.

Dated this ________________ day of _____________, 19____.

_________________________

Owner

By ______________________

Title ___________________

ACCEPTANCE OF NOTICE

Receipt of the above NOTICE OF AWARD is hereby acknowledged

by ______________________________________________________________________.

this the ____________________________ day of ____________________, 19____. By

Title ______________________

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Guide 1

Attachment 6

Page 1

ATTACHMENT TO AIA DOCUMENT A101-1997, Standard Form of Agreement Between Owner

and Contractor

The provisions of this Attachment shall delete, modify and supplement the

provisions contained in the “Standard Form of Agreement Between Owner and

Contractor,” AIA Document A101-1997 Edition. The provisions contained in this

attachment shall supersede any conflicting provisions of the AIA Document.

ARTICLE 3, DATE OF COMMENCEMENT AND SUBSTANTIAL COMPLETION

Delete paragraph 3.1 and substitute the following:

3.1 The date of commencement shall be contained in the Notice to

Proceed.

Add the following to paragraph 3.3:

If the work is not substantially complete on or before this date,

or within this period of time, or extension thereof granted by the

Owner, damage will be sustained by the Owner and that it is and

will be impracticable and extremely difficult to fix the actual

damage which the Owner will sustain in the event of and by reason

of such delays. The Contractor shall pay to the Owner liquidated

damages in the sum of $ _____________ for each calendar day of

delay. Any sums that may be due the Owner as liquidated damages

may be deducted from any monies due or to become due the

Contractor under the Contract or may be collected from the

Contractor's surety.

ARTICLE 5, PAYMENTS

Insert "ten" and "10" in the appropriate spaces in clauses 5.1.6.1 and

subparagraph 5.1.6.2.

Delete the last sentence of clause 5.1.6.1.

Delete the following from clause 5.1.6.2:

(or, if approved in advance by the Owner, suitably stored off the

site at a location agreed upon in writing)

Delete subparagraph 5.1.8.

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Guide 1, Attachment 6

Page 2

ARTICLE 8, ENUMERATION OF CONTRACT DOCUMENTS

The following Documents should be referenced, if applicable:

Subparagraph 8.1.3:

Attachment to the Standard Form of Agreement Between Owner and

Contractor (RD Instruction 1924-A, Guide 1, Attachment 6)

General Conditions of the Contract for Construction, AIA A201-1997

Attachment to the General Conditions of the Contract for

Construction (RD Instruction 1924-A, Guide 1, Attachment 10)

Special Conditions

Subparagraph 8.1.7:

Advertisement for Bids (RD Instruction 1924-A, Guide 1,

Attachment 1)

Instructions to Bidders, AIA A701.1997

Attachment to the Instructions to Bidders (RD Instruction 1924-A,

Guide 1, Attachment 2)

Bid (RD Instruction 1924-A, Guide 1, Attachment 3)

Bid Bond (RD Instruction 1924-A, Guide 1, Attachment 4)

Compliance Statement (Form RD 400-6)

Payment Bond (RD Instruction 1924-A, Exhibit F)

Performance Bond (RD Instruction 1924-A, Exhibit G)

Notice of Award (RD Instruction 1924-A, Guide 1, Attachment 5)

Identity of Interest (IOI) Disclosure Certificate (Form

RD 1944-30)

Identity of Interest (IOI) Qualification (Form RD 1944-31)

Contract Concurrence (RD Instruction 1924-A, Guide 1,

Attachment 8)

Labor Standards Provisions (RD Instruction 1940-C, Exhibit A)

Certification Regarding Debarment, Suspension, Ineligibility and

Voluntary Exclusion - Lower Tier Covered Transactions (Form

AD 1048)

Standard Form-LLL, "Disclosure of Lobbying Activities" (RD

Instruction 1940-Q, Exhibit A)

Certification for Contracts, Grants and Loans (RD Instruction

1940-Q, Exhibit A-1)

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RD Instruction 1924-A

Guide 1, Attachment 7

CERTIFICATE OF OWNER'S ATTORNEY

I, the undersigned, _____________________________________, the duly

authorized and acting legal representative of ____________________________

________________________, do hereby certify as follows:

I have examined the attached Contract(s) and Performance and Payment

Bond(s) and the manner of execution thereof, and I am of the opinion that each

of the aforesaid agreements has been duly executed by the proper parties

thereto acting through their duly authorized representatives; that said

representatives have full power and authority to execute said agreements on

behalf of the respective parties named thereon; and that the foregoing

agreements constitute valid and legally binding obligations upon the parties

executing the same in accordance with terms, conditions, and provisions

thereof.

_______________________________

Date:__________________________

(NOTE: Delete phrase "Performance and Payment Bonds" when not applicable.)

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Attachment 8

CONCURRENCE

The United States of America, as potential lender or insurer of funds to

defray the costs of this Contract, and without liability for any payments

thereunder, hereby concurs in the form, content, and execution of this

Contract.

U.S. Department of Agriculture

Rural Development

Rural Housing Service

Date Rural Development Official

Title

This Contract shall not be in full force and effect until concurred with by

the State Director or the State Director's delegate, Rural Development, U. S.

Department of Agriculture.

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______________________________________

RD Instruction 1924-A

Guide 1, Attachment 9

NOTICE TO PROCEED

TO: _______________________________ DATE:___________________________

_______________________________ Project:________________________

_______________________________ ________________________________

You are hereby notified to commence WORK in accordance with the Agreement

dated _______________, 19___, on or before _________________, 19___, and you

are to complete the WORK within ____________ consecutive calendar days

thereafter. The date of completion of all WORK is therefore

___________________, 19___.

ACCEPTANCE OF NOTICE

Receipt of the above NOTICE TO PRO-

CEED is hereby acknowledged by _______

_____________________________________,

This the _____________________, 19____

By ___________________________________

Title ________________________________

Employer Identification

Number _______________________________

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_________________________

Owner

By _____________________

Title __________________

RD Instruction 1924-A

Guide 1

Attachment 10

Page 1

ATTACHMENT TO AIA DOCUMENT A201-1997, General Conditions of the Contract for

Construction

The provisions of this attachment shall delete, modify and supplement the

provisions contained in the "General Conditions of the Contract for

Construction,” AIA Document A201-1997 Edition. The provisions contained in

this attachment will supersede any conflicting provisions of the AIA Document.

The term "Agency,” as used in this Attachment, shall mean the United States of

America, acting through the United States Department of Agriculture.

ARTICLE 1, GENERAL PROVISIONS

Add the following subparagraph:

1.2.4 Concurrence of the Contract by the Agency is required

before it is effective and the "Concurrence" statement shall be

attached to and made a part of the Agreement.

ARTICLE 2, OWNER

Delete subparagraph 2.2.5 and substitute the following:

2.2.5 The Contractor will be furnished, free of charge, five (5)

copies of the Drawings and Projects Manuals necessary for

execution of the Work. Additional copies will be available from

the Architect at the cost of reproduction.

ARTICLE 3, CONTRACTOR

Delete subparagraph 3.7.1 and substitute the following:

The Owner shall secure and pay for the health and environmental

impact fees due to water and sewer connections, and the zoning

regulation fees and permits. The Contractor shall secure and pay

for the building, mechanical, electrical, and plumbing permits and

other governmental fees, licenses, and inspections necessary for

proper execution of and completion of the Contract which are

legally required when bids are received or negotiations concluded.

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Guide 1

Attachment 10

Page 2

ARTICLE 4, ADMINISTRATION OF THE CONTRACT

Delete the last sentence of subparagraph 4.1.1 and substitute the

following:

The term "Architect" means the Architect or the Engineer, when the

nature of the work is within the authority granted engineers by

the State licensure law, or an authorized representative.

Add the words "may be" after "on the parties but" in the last sentence

of subparagraph 4.4.5.

Replace the word "shall" with the word "may" in the first and second

sentences of subparagraph 4.6.1.

Delete subparagraph 4.6.2 and substitute the following:

4.6.2 The arbitration provisions of this section may be initiated

by either party to this Contract by filing with the other party

and the Architect a written request for arbitration. The other

party may accept or reject the request by filing a written

answering statement with the requesting party and the Architect

within fourteen (14) calendar days of receipt of such request. If

the request is accepted the provisions of this section will apply.

If the request is rejected or an answering statement is not filed

within the fourteen (14) day period, the provisions of this

section will not apply.

4.6.2.1 Within fourteen (14) calendar days or any mutually

agreeable time period thereafter, each party to this Contract will

appoint one arbitrator. Within fourteen (14) calendar days or any

mutually agreeable time period thereafter, the two arbitrators

will select a third arbitrator. Failure to appoint the

arbitrator(s) within the mutually agreeable time period will

terminate further actions under this section.

4.6.2.2 The arbitrators will select a hearing location as close

to the Owner's locale as possible.

4.6.2.3 The Procedure for conducting the hearings will follow the

Construction Industry Arbitration Rules of the American

Arbitration Association.

Delete subparagraphs 4.6.3, 4.6.4 and 4.6.5.

RD Instruction 1924-A

Guide 1

Attachment 10

Page 3

ARTICLE 5, SUBCONTRACTORS

Delete the first sentence of subparagraph 5.2.2 and substitute the

following:

The Contractor shall not contract with any party who is suspended

or debarred by any Federal government agency from participating in

Federally assisted construction projects or to whom the Owner or

the Architect has made reasonable and timely objection.

ARTICLE 7, CHANGES IN THE WORK

Delete the words ", Construction Change Directive" from subparagraph

7.1.1.

Insert the words ", Agency " after the word "Owner,” and delete the

words "; a Construction Change Directive requires agreement by the Owner

and Architect and may or may not be agreed to by the Contractor" in

subparagraph 7.1.2.

Delete the words "Construction Change Directive" from subparagraph

7.1.3.

Delete subparagraph 7.2.1 and substitute the following:

7.2.1 A Change Order is a written order to the Contractor utilizing

Form RD 1924-7, "Contract Change Order," signed by the Owner,

Architect, Contractor, and the Agency representative. It is issued

after the execution of the Contract, authorizing a change in the

Work or an adjustment in the Contract Sum or the Contract Time. The

Contract Sum and the Contract Time may be changed only by Change

Order. The Contractor's signing of a Change Order indicates

complete agreement therein. When the Contract Sum is based on unit

price, a unit bid quantity may be increased or decreased by a

maximum of twenty percent (20%) without invalidating the unit price.

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Guide 1

Attachment 10

Page 4

Delete subparagraph 7.2.2 and substitute the following:

7.2.2 Methods used in determining adjustments to the Contract Sum

may include any of the following:

.1 Mutual acceptance of a lump sum properly

itemized and supported by sufficient

substantiating data to permit evaluating.

.2 Unit prices stated in the Contract Documents

or subsequently agreed upon.

Delete paragraph 7.3 in its entirety.

ARTICLE 8, TIME

Add the following subparagraphs:

8.2.4 The Notice to Proceed shall be issued within twenty (20)

calendar days of the execution of the Agreement by the Owner.

Should there be reasons why the Notice to Proceed cannot be issued

within such period, the time may be extended by mutual agreement the

Owner and Contractor, with the concurrence of the Agency. If the

Notice to Proceed has not been issued within the twenty (20)

calendar day period or within the period mutually agreed, the

Contractor may terminate the Agreement without further liability on

the part of either party.

8.3.4 As outlined in Article 3 of the Agreement, the Contractor

agrees to pay liquidated damages to the Owner for each calendar day

the Contractor shall be in default.

ARTICLE 9, PAYMENTS AND COMPLETION

Delete clause 9.3.1.1 and substitute the following:

9.3.1.1 Work performed and materials supplied under a Change Order

may be included for payment only after the Change Order has been

approved by all appropriate parties, including the Agency.

RD Instruction 1924-A

Guide 1

Attachment 10

Page 5

Delete Subparagraph 9.3.2 and substitute the following:

9.3.2 Unless otherwise provided in the Contract documents, payments

shall be made on account of materials and equipment delivered and

suitably stored at the site for subsequent incorporation in the

Work. Payment shall be conditioned upon compliance by the

Contractor with procedures satisfactory to the Owner to establish

the Owner's title to such materials and equipment or otherwise

protect the Owner's interest.

Add the words ", using AIA Document 702, 'Application and Certificate

for Payment' or Form RD 1924-18, 'Partial Payment Estimate'," after

"Certificate for Payment" in subparagraph 9.4.1.

Add the following subparagraph:

9.6.8 No progress payments will be made that deplete the retainage, nor place

in escrow any funds that are required for retainage, nor invest the retainage

for the benefit of the Contractor. Retainage will not be adjusted until after

construction is substantially complete.

Replace the word "seven" with the words "thirty (30)" in the first

sentence , third line of subparagraph 9.7.1.

Add the words ", in collaboration with the Agency," after "prepare" in

the first sentence of subparagraph 9.8.4.

Delete subparagraph 9.8.5 and substitute the following:

9.8.5 When the Work has been substantially completed, except for

Work which cannot be completed because of weather conditions, lack

of materials or other reasons, which, in the judgement of the Owner,

are valid reasons for non-completion, the Owner may make additional

payments, retaining at all times an amount sufficient to cover the

estimated cost of the Work still to be completed.

Delete subparagraphs 9.9.1 through 9.9.3 and substitute the following:

9.9.1 The Contractor agrees to the use and occupancy of a portion

or unit of the Project before formal acceptance by the Owner under

the following conditions:

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Guide 1

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.1 A “Certificate of Substantial Completion” shall be

prepared and executed as provided in subparagraph 9.8.4,

except that when, in the opinion of the Architect, the

Contractor is chargeable with unwarranted delay in

completing the Work or other Contract requirements, the

signature of the Contractor will not be required. The

Certificate of Substantial Completion shall be

accompanied by a written endorsement of the Contractor's

insurance carrier and surety permitting occupancy by the

Owner during the remaining period of the Project Work.

Occupancy by the Owner shall also be authorized by public

authorities having jurisdiction over the Work.

.2 Occupancy by the Owner shall not be construed by the

Contractor as being an acceptance of that part of the

Project to be occupied.

.3 The Contractor shall not be held responsible for any

damage to the occupied part of the Project resulting from

the Owner's occupancy.

.4 Occupancy by the Owner shall not be deemed to constitute a

waiver of existing claims in behalf of the Owner or

Contractor against each other.

1.5 If the Project consists of more than one building, and one

of the buildings is to be occupied, the Owner, prior to

occupancy of that building, shall secure permanent

property insurance on the building to be occupied and

necessary permits which may be required for use and

occupancy.

9.9.2 With the exception of clause 9.9.1.5, use and occupancy by

the Owner prior to Project acceptance does not relieve the

Contractor of responsibility to maintain all insurance and bonds

required of the Contractor under the Contract until the Project is

completed and accepted by the Owner.

Delete the second and third sentences of subparagraph 9.10.2.

RD Instruction 1924-A

Guide 1

Attachment 10

Page 7

ARTICLE 11, INSURANCE AND BONDS

Replace the words "the Contract Documents" with the words "subparagraph

11.1.4" in the first sentence of subparagraph 11.1.2.

Add the following subparagraph:

.1 Insurance shall be:

.2 Written with a limit of liability of not less than

$500,000 for all damages arising out of bodily injury,

including death, at any time resulting therefrom,

sustained by any one person in any one accident; and a

limit of liability of not less than $500,000 aggregate

for any such damages sustained by two or more persons in

any one accident. Insurance shall be written with a

limit of liability of not less than $200,000 for all

property damage sustained by any one person in any one

accident; and a limit of liability of not less than

$200,000 aggregate for any such damage sustained by two

or more persons in any one accident, or,

.2 Written with a combined bodily injury and damage liability

of not less than $700,000 per occurrence; and with an

aggregate of not less than $700,000 per occurrence.

Add the following sentence to the end of subparagraph 11.4.1:

The policy shall name as the insured the Contractor and the Owner.

Insert the word "Owner" after the words "protect the interests of the"

in the second sentence of clause 11.4.1.2.

Add the following sentence to the end of subparagraph 11.4.6:

The provisions of this subparagraph shall apply to the Contractor if

the Contractor purchases and maintains said insurance coverage.

Delete subparagraph 11.4.7 in its entirety.

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RD Instruction 1924-A

Guide 1

Attachment 10

Page 8

Delete subparagraph 11.5.1 and substitute the following:

11.5.1 The Contractor shall furnish the Owner bonds covering

faithful performance of the Contract and payment of obligations

arising thereunder within ten (10) calendar days after receipt of

the Notice of Award. The surety company executing the bonds must

hold a certificate of authority as an acceptable surety on Federal

bonds as listed in Treasury Circular 570, and be authorized to

transact business in the State where the Project is located. The

bonds (using the forms included in the Bidding

Documents) shall each be equal to the amount of the Contract Sum.

The cost of these bonds shall be included in the Contract Sum.

Add the following clauses:

11.5.1.1 The Contractor shall require the attorney-in-fact who

executes the required bonds on behalf of the surety to affix thereto

a certified and current power of attorney.

11.5.1.2 If at any time a surety on any such bond is declared

bankrupt or loses its right to do business in the State in which the

work is to be performed or is removed from the list of surety

companies accepted on Federal Bonds, the Contractor shall within ten

(10) calendar days after notice from the Owner to do so, substitute

an acceptable bond in such form and sum and signed by such other

surety or sureties as may be satisfactory to the Owner. The

premiums of such bond shall be paid by any Contractor. No further

payment shall be deemed due nor shall be made until the new surety

or sureties shall have furnished an acceptable bond to the Owner.

Add the following paragraph:

11.6 LATENT DEFECTS PROTECTION

11.6.1 If the Contractor does not furnish payment and performance

bonds, he or she shall agree to provide surety or guarantee

acceptable to the Owner and the Agency against latent obligations

and defects in connection with the construction.

.1 The Contractor shall furnish a properly executed corporate

latent defects bond, a maintenance bond, an unconditional and

irrevocable letter of credit, or a cash deposit into a

supervised bank account. Whichever instrument is used shall be

in the amount of 10 percent of the Contract Sum.

RD Instruction 1924-A

Guide 1

Attachment 10

Page 9

.2 The period of protection against latent obligations and

defects shall be one year from the final acceptance of Work by

the Owner and the Agency.

.3 Final payment to the Contractor shall not be issued until the

provisions of clause 11.6.1.1 have been met.

ARTICLE 13, MISCELLANEOUS PROVISIONS

Add the following paragraphs:

13.8 FEDERAL INSPECTION

13.8.1 The authorized representatives and agents of the Federal

Government shall be permitted to inspect all work, materials,

payrolls, records of personnel, invoices of materials, and other

relevant data and records.

13.9 LANDS AND RIGHTS-OF WAY

13.9.1 Prior to the start of construction, the Owner shall obtain

all lands and rights-of-way necessary for the execution and

completion of work to be performed under this contract.

13.10 EQUAL OPPORTUNITY REQUIREMENTS

Non-discrimination in Employment by Federally Assisted Construction

Contractors, by Executive Order 11246.

13.10.1 This section summarizes Executive Order 11246, which

prohibits employment discrimination and requires employers holding

non-exempt Federal contracts and subcontracts and federally-assisted

construction contracts and subcontracts in excess of $10,000 to take

affirmative action to ensure equal employment opportunity without

regard to race, color, religion, sex, or national origin. The

Executive Order requires, as a condition for the approval of any

federally assisted construction contract, that the applicant

incorporate nondiscrimination and affirmative action clauses into

its non-exempt federally assisted construction contracts.

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Guide 1

Attachment 10

Page 10

13.10.2 Executive Order 11246, is administered and enforced by the

Office of Federal Contract Compliance Programs (OFCCP), an agency in

the U.S. Department of Labor's Employment Standards Administration.

OFCCP has issued regulations at 41 C.F.R. chapter 60 implementing

the Executive Order. The regulations at 41 C.F.R. part 60-4

establish the procedures which the Agency, as an administering

agency, must follow when making grants, contracts, loans, insurance

or guarantees involving federally assisted construction which is not

exempt from the requirements of Executive Order 11246. The

regulations which apply to Federal or federally assisted

construction contractors also are published at 41 C.F.R. part 60-4.

13.10.3 OFCCP has established numerical goals for minority and

female utilization in construction work. The goals are expressed in

percentage terms for the contractor's aggregate workforce in each

trade. OFCCP has set goals for minority utilization based on the

percentage of minorities in the civilian labor force in the relevant

area. There is a single nationwide goal of 6.9 percent for

utilization of women. The goals apply to all construction work in

the covered geographic area, whether or not it is federal, federally

assisted or non-federal. A notice advises bidders of the applicable

goals for the area where the project is to be located.

13.10.4 Application. This section applies to all of a construction

contractor's or subcontractor's employees who are engaged in on-site

construction including those construction employees who work on a

non-Federal or non-Federally assisted construction site.

13.10.4.1 Agency officials will notify the appropriate Regional

Director of OFCCP that an Agency financed construction contract has

been awarded, and that the equal opportunity clauses are included in

the contract documents.

13.10.4.2 The Regional Director, OFCCP-DOL, will enforce the non-

discrimination requirements of Executive Order 11246.

13.10.5 The prospective contractor or subcontractor must comply

with the Immigration Reform and Control Act of 1986, by completing

and retaining Form I-9, "Employment Eligibility Verification," for

employees hired. This form is available from the Immigration and

Naturalization Service, and Department of Justice.

13.10.6 The prospective contractor or subcontractor must submit

Form RD 400-6, "Compliance Statement," to the applicant and an

Agency official as part of the bid package, prior to any contract

bid negotiations and comply with the Executive Order 11246 as stated

in the contract documents.

RD Instruction 1924-A

Guide 1

Attachment 10

Page 11

13.11 STATUTES

13.11.1 The Contractor and each Subcontractor shall comply with the

following statutes (and with regulations issued pursuant thereto,

which are incorporated herein by reference):

13.11.1.1 Copeland Anti-Kickback Act (18 U.S.C. 874) as

supplemented in Department of Labor regulations (29 C.F.R. part 3).

This Act provides that each Contractor shall be prohibited from

inducing, by any means, any person in connection with construction

to give up any part of the compensation to which the person is

otherwise entitled.

13.11.1.2 Clean Air Act (42 U.S.C. 7414), section 114, and Water

Pollution Control Act (33 U.S.C. 1813), section 308. Under

Executive Order 11738 and Environmental Protection Agency (EPA)

regulations 40 C.F.R. part 15, all Contracts in excess of $100,000

are required to comply with these Acts. The Acts require the

Contractor to:

.1 Notify the Owner of the receipt of any communication from

EPA indicating that a facility to be utilized in the

performance of the Contract is under consideration to be

listed on the EPA list of Violating Facilities.

.2 Certify that any facility to be utilized in the

performance of any nonexempt Contractor or Subcontractor

is not listed on the EPA list of Violating Facilities as

of the date of the Contract Award.

.3 Include or cause to be included the above criteria and

requirements of paragraphs .1 and .2 in every nonexempt

subcontract, and that the Contractor will take such

action as the Government may direct as a means of

enforcing such provisions.

13.11.1.3 Davis-Bacon Act(40 U.S.C. 276a) as supplemented in

Department of Labor regulations (29 C.F.R. part 5). If

applicable, the Contractor must comply with the minimum rates for

wages for laborers and mechanics as determined by the Secretary of

Labor in accordance with the provision of this Act.

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13.11.1.4 Restrictions on Lobbying (Public Law 101-121, section

319) as supplemented in Department of Agriculture regulations (7

C.F.R. part 3018). This statute applies to the recipients of

contracts or subcontracts that exceed $100,000 at any tier under a

Federal loan that exceeds $150,000 or a Federal grant that exceeds

$100,000. If applicable, the Contractor must complete a

certification form on lobbying activities related to the specific

Federal loan or grant that is a funding source for this contract.

The certification and disclosure forms shall be provided by the

Owner.

13.12 RECORDS

13.12.1 If the Contract is based on a negotiated Bid, the Owner,

the Agency, the Comptroller General of the United States, or any

of their duly authorized representatives, shall have access to any

books, documents, papers, and records of the Contractor which are

pertinent to a specific Federal loan program for the purpose of

making audit, examination, excerpts, and transcriptions. The

Contractor shall maintain records for at least three years after

the Owner makes final payment and all other pending matters are

closed.

13.13 IDENTITY OF INTEREST

13.13.1 The Owner will complete and sign Form RD 1944-30,

"Identity of Interest (IOI) Disclosure Certificate." If

applicable, the Contractor or any Subcontractor, Material

Supplier, or Equipment Lessor sharing an identity of interest

will, prior to receipt of any payment, complete and sign Form RD

1944-31, "Identity of Interest (IOI) Qualification."

13.13.2 If and when an identity of interest exists, the

Contractor, Subcontractor, Material Suppliers, or Equipment

Lessor:

13.13.2.1 Will, prior to receipt of any payment, provide the

Owner and the Agency a written assertion that it has an accounting

system suitably designed to provide for a line-item basis

comparison of the actual cost with the estimated cost.

13.13.2.2 Will, prior to receipt of any payment, provide the

Owner and the Agency with a detailed breakdown of the estimated

cost amount for evaluation, using Form RD 1924-13, "Estimate and

Certificate of Actual Cost."

RD Instruction 1924-A

Guide 1

Attachment 10

Page 13

13.13.2.3 Will deduct any discounts or rebates from invoices

provided to the Owner for payment. Any discounts or rebates

received on invoices already paid by the Owner will be refunded to

the Owner or subtracted from any payment retainage.

13.13.2.4 Will not be entitled to receive payment for general

overhead, profit, or general requirements, respectively, in excess

of the amounts represented on the estimate of cost breakdown in

accordance with clause 13.13.2.2.

13.13.2.5 Will, prior to receipt of final payment, provide the

Owner and the Agency with a detailed breakdown of the actual cost

compared to the estimated cost, using Form RD 1924-13. When

required, the actual cost will be audited by a Certified Public

Accountant, or Licensed Public Accountant licensed on or before

December 31, 1970, who will provide an opinion concerning whether

the actual construction costs present fairly the costs of

construction in conformity with eligible construction costs as

prescribed in Rural Development regulations.

13.13.2.6 Will, prior to receipt of final payment, provide the

Owner and the Agency with documentation on all Form RD 1924-13

actual cost line items that are a minimum of fifteen percent (15%)

higher or lower than the estimated costs. The documentation will

provide justification for the deviations.

13.13.3 If and when an identity of interest exists between the

Owner and Contractor, the Contractor is entitled to receive a

builder's fee (general overhead and profit) only when the highest

subcontract Sum is no more than fifty percent (50%) of the

Contract Sum, and the total of the highest three Subcontract Sums

is no more than seventy-five percent (75%) of the Contract Sum.

Any payments made to the Contractor for a builder's fee to which

contractor is not entitled will be refunded to the Owner or

subtracted from any payment retainage.

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13.14 ENVIRONMENTAL REQUIREMENTS

13.14.1 Mitigation Measures - The contractor shall comply with

applicable mitigation measures established in the environmental

assessment for the project. These may be obtained from the Agency

representative.

13.14.2 Endangered Species - The Contractor shall comply with the

Endangered Species Act. Should any evidence of the presence of

endangered or threatened species or their critical habitat be

brought to the attention of the Contractor, the Contractor will

immediately report this evidence to the Architect and the Agency

representative. Construction shall be halted pending the

notification process and further directions issued by the Agency

after consultation with the U.S. Fish and Wildlife Service.

13.14.3 The Contractor, when constructing a Project involving

trenching, excavating, or other earth moving activity, shall

comply with the following environmental constraints:

13.14.3.1 Historic Preservation - Any excavation or other earth

moving activity by the Contractor that uncovers a historical or

archaeological artifact shall be immediately reported to the

Architect and the Agency representative. Construction shall be

halted pending the notification process and further directions

issued by the Agency after consultation with the State Historic

Preservation Officer or other appropriate historic preservation

official.

13.14.3.2 Human Remains and Cultural Items - Any excavation or

other earth moving activity by the Contractor that uncovers human

remains or cultural items shall be immediately reported to the

Architect and the Agency representative. Construction shall be

halted pending the notification process and further directions

issued by the Agency after consultation with the appropriate

authorities.

13.14.3.3 Paleontology - Any excavation or other earth moving

activity by the Contractor that uncovers a fossil or other

paleontological materials that may have scientific significance

shall be immediately reported to the Architect and the Agency

representative. Construction shall be halted pending the

notification process and further directions issued by the Agency

after consultation with appropriate authorities.

RD Instruction 1924-A

Guide 1

Attachment 10

Page 15

13.14.3.4 Wetlands - The Contractor, when disposing of excess,

spoil, or other construction materials on public or private

property, will not fill in wetlands.

13.14.3.5 Floodplains - The Contractor, when disposing of excess,

spoil, or other construction materials on public or private

property, will not fill in 100-year floodplain areas delineated on

the latest Federal Emergency Management Administration floodplain

maps.

13.14.4 Lead-Based Paint - The Contractor and Owner shall comply

with applicable Agency requirements of the Lead-Based Paint

Poisoning Prevention Act, as amended (42 U.S.C. 4821), and the

Residential Lead-Based Paint Hazard Reduction Act of 1992 (42

U.S.C. 4851) for rehabilitation work on residential property built

prior to 1978.

13.15 DEBARMENT AND SUSPENSION

13.15.1 The Contractor shall comply with the requirements of 7

C.F.R. part 3017, which pertains to the debarment or suspension of

a person from participating in a Federal program or activity.

O0o

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RD Instruction 1924-A

Guide 2

GUIDE 2

Rural Development DESIGN GUIDE

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RD Instruction 1924-A

Guide 2

FOREWORD

This Guide is designed to assist Rural Development personnel determine and

evaluate design features which are not fully described in local building codes

or the development standards for rural housing proposals requesting financing

from the Agency. Housing proposals should address the liveability and

marketability objectives in the Rural Development Manual of Acceptable

Practice (MAP) and this Guide. Substantial deviation from these objectives

should be evaluated in the appraisal process and reflected in the present

market value of the proposed housing.

(5-12-87) SPECIAL PN

RD Instruction 1924-A

GENERAL TABLE OF CONTENTS

Chapter 1 - SPECIAL DESIGN

Chapter 2 - RESERVED

Chapter 3 - SITE DESIGN

Chapter 4 - BUILDING DESIGN

Appendix A - GLOSSARY OF HOUSING TERMS

Appendix B - ABBREVIATIONS

Guide 2

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3 - 1

4 - 1

A - 1

B - 1

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CHAPTER 2 RESERVED

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TABLE OF CONTENTS

CHAPTER 3 SITE DEVELOPMENT

300 GENERAL

300-1 REFERENCES

301 LAND USE

301-1 GENERAL

301-2 BUILDING LOCATION AND ARRANGEMENT

301-3 INTENSITY OF DEVELOPMENT

301-4 NOISE CONTROL

301-5 SITE SURROUNDINGS

301-6 BLOCKS

302 UTILITIES

302-1 GENERAL

302-2 INSTALLATION

303 STREETS

303-1 GENERAL

303-2 TYPES OF STREETS

303-3 STREET PATTERNS

303-4 SUB - TYPES

303-5 DESIGN FEATURES

303-6 STREET CONSTRUCTION

303-7 RELATED CONSTRUCTION

304 GRADING DESIGN

304-1 GENERAL

305 DRAINAGE

305-1 GENERAL

305-2 SWALES AND OPEN DITCHES

305-3 STORM SEWERS

305-4 SUBSURFACE DRAINAGE

306 THE PROPOSED SITE

306-1 GENERAL

306-2 TOPOGRAPHY

306-3 GROUND WATER

306-4 LOT LAYOUTS

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3 - 11

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3 - 20

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307 YARDS AND BUILDING SETBACK DISTANCE 3 - 25

307-1 GENERAL 3 - 25

307-2 SIDE AND REAR YARDS 3 - 25

307-3 DISTANCE BETWEEN BUILDINGS 3 - 26

307-4 BUILDING STREET SETBACK DISTANCE 3 - 26

308 PARKING AREAS 3 - 27

308-1 GENERAL 3 - 27

308-2 NUMBER OF SPACES 3 - 27

308-3 PARKING BAYS 3 - 27

309 WALKS 3 - 28

309-1 GENERAL 3 - 28

309-2 PUBLIC OR COMMON USE WALKS 3 - 28

309-3 ENTRANCE WALKS 3 - 28

309-4 CHEEK-WALLS 3 - 28

310 SERVICES 3 - 28

310-1 GENERAL 3 - 28

310-2 ACCESS 3 - 29

310-3 GARBAGE AND REFUSE 3 - 29

310-4 SERVICE SCREENING 3 - 29

311 PLANTING DESIGN 3 - 29

311-1 GENERAL 3 - 29

311-2 LAWNS 3 - 29

312 SITE DETAILS 3 - 29

312-1 GENERAL 3 - 29

312-2 LAUNDRY DRYING AREAS 3 - 30

312-3 WALLS AND FENCES 3 - 30

312-4 OUTDOOR LIGHTING 3 - 30

313 COMMON USE FACILITIES 3 - 30

313-1 GENERAL 3 - 30

313-2 RECREATION 3 - 30

314 HILLSIDE DEVELOPMENT 3 - 31

314-1 GENERAL 3 - 31

314-2 MANUFACTURED SLOPES 3 - 31

314-3 LOT AREAS 3 - 31

314-4 LOT WIDTH 3 - 32

314-5 WALKWAYS 3 - 32

314-6 STREET CONSTRUCTION 3 - 32

314-7 DRIVEWAYS 3 - 32

314-8 LIGHTING 3 - 32

RD Instruction 1924-A

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CHAPTER 3

SITE DEVELOPMENT

300 GENERAL

Site development includes the arrangement of all site facilities

necessary to create a safe, functional, convenient, healthful,

durable and attractive living environment for residents.

This chapter gives basic guidelines and considerations to be used by

an applicant or builder-developer in planning subdivisions,

individual sites, and Multi-Family Housing developments. Site

development requirements are prescribed in RD Instruction 1924-C,

Exhibit B.

300-1 REFERENCES

There are a number of references that may be helpful in planning

site development. The following is a partial listing of such

references:

(a) Manual of Acceptable Practice: RD 4930.1

(b) Architectural Graphic Standards; American Institute of

Architects

Society of Landscape Architects

(d) Grade Easy - An Introductory Course in the Principles and

Practices of Grading and Drainage; American Society of Landscape

Architects Foundation

(e) Urban Hydrology for Small Watersheds; SCS-TR-55

(f) A Method of Estimating Volumes and Site Runoff in Small

Watersheds; SCS-TP-149

(g) Handbook of Channel Design for Soil and Water Conservation;

SCS-TP-61

(h) Simplified Method for Determining Floodwater Retarding Storage;

SCS-TR-3

(i) Hydrology; SCS-NEH-Section 4

(j) Residential Streets; Urban Land Institute, American Society of

Civil Engineers, National Association of Home Builders;

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(k) Residential Storm Water Management; Urban Land Institute,

American Society of Civil Engineers, National Association of Home

Builders;

(l) Residential Erosion and Sediment Control; Urban Land Institute,

American Society of Civil Engineers, National Association of Home

Builders;

(m) Residential Development Handbook; Urban Land Institute;

(n) Geometric Design Guide for Local Roads and Streets; American

Association of State Highway Officials;

(o) A Guide for Accommodating Utilities on Highway Rights-of-Way;

American Association of State Highway and Transportation Officials

301 LAND USE

301-1 GENERAL

Land use planning for all housing should relate appropriately to all

site conditions and to the existing or permissible development of

adjoining properties.

301-2 BUILDING LOCATION AND ARRANGEMENT

301-2.1 The use of a proposed site should be planned for buildings so

arranged on the site and having characteristics which assure

that:

(a) The property has adequate visual appeal.

(b) The property can be operated and maintained at costs reasonably

related to income.

(d) Zoning and other local regulations are complied with.

301-2.2 The building arrangement and location should relate well:

(a) To the natural topography, avoiding deep cuts, fills, excessive

foundation wall depth, unnecessary steps and steep access gradients.

(b) To climatic conditions, assuring maximum benefit from and

protection against, as appropriate, sun, wind, temperature,

precipitation, etc., and

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301-2.3 The building location, arrangement, and orientation should

assure adequate open space for outdoor living areas, all facilities,

services, amenities, and for interior natural light, air and

privacy. Undesirable outlook from windows of rooms for daytime use

should be avoided.

301-3 INTENSITY OF DEVELOPMENT

The number, size and type of dwelling, along with parking spaces,

recreation and other open spaces should be determined by the

characteristics of the site, its location, land cost, and

acceptability by the community.

301-4 NOISE CONTROL

Through the use of site design techniques such as building location

and orientation, window placement and the use of barriers,

predictable undesirable site noise should be tolerated to as close

to clearly acceptable levels as practicable. See HUD-PDR-735 "Noise

Assessment Guidelines."

301-5 SITE SURROUNDINGS

The site design should be arranged when practical and possible to

harmonize with the complement functions and appearance of site

surroundings which have a significant bearing on the site. Where

the surroundings of a site have incongruous functions or undesirable

visual conditions, buffers or screen devices sufficient to separate

or modify these unpleasant conditions should be provided.

301-5.1 No site should be developed where external influences on the

site create conditions undesirable for residential use such as:

(a) Hazardous landslides, falling rock, or other unstable slope

conditions due to site topographic or geologic conditions;

(b) Unusual terrain features such as steep slopes, abutting rock

formations, or other conditions affecting construction, drainage, or

livability;

flash floods, volcanic activity, mudslides or fires, or from the

presence of ponds, or hazardous terrain features;

(d) Unwarranted risks from man-made hazards such as the presence of

hazardous materials, or the presence of potentially hazardous

industrial activity or material in the surrounding area;

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(e) Nuisances from odors, vibrations, unsightly areas, nearby

landfills, inconvenience or other nuisances.

301-6 BLOCKS

301-6.1 The lengths, widths and shapes of blocks should be determined

with due regard to:

(a) Provision of adequate building sites suitable to the special

needs of the type of use contemplated.

(b) Zoning requirements as to lot sizes and dimensions.

street traffic.

(d) Limitations and opportunities of topography.

301-6.2 Block lengths generally should not exceed 1600 feet nor be

less than 400 feet.

301-6.3 Blocks should be wide enough to allow two tiers of lots of

minimum depth. However, where this would require lots to front on

an arterial street or highway or where topographical conditions of

the size of the property prevent two tiers of lots, single lots with

necessary alterations may be used.

301-6.4 When double tiered blocks are over 800 feet in length, a 10-foot

wide pedestrian access easement is recommended near the center of

the block for circulation or access to schools, playgrounds,

shopping centers, transportation and other community facilities.

301-6.5 Intersections with arterial streets should be held to a minimum

and preferably spaced at least 1000 feet apart.

302 UTILITIES

302-1 GENERAL

The site design should provide for all utilities in a manner which

allows economy in construction and maintenance.

302-1.1 The site design should be arranged to recognize existing

easements, utility lines, etc., and permit connection to existing

facilities where necessary for the proper functioning of drainage

and utilities.

302-2 INSTALLATION

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303-6.1.1 All driving and parking areas should have sufficient gradient

to provide for adequate drainage. Storm sewers or drainage ditches

should be provided to accept surface run-off and prevent pooling on

roadway areas. In arid or semi-arid areas, the roadway may be

designed with an inverted crown to accommodate occasional run-off.

Subsurface drainage should be adequate to maintain a stable

subgrade.

303-6.1.2 The subgrade should provide a stable platform for the base and

wearing surface under all anticipated geologic, hydrologic and

climatic conditions. The subgrade should be judged acceptable

according to soil type and anticipated traffic loads.

(a) In-place soil should not contain amounts of muck, clay,

veritable matter or other elements which will detrimentally affect

the structure of the roadway. Where these elements do occur the

stabilization procedures outlined below should be followed. The

subgrade should be thoroughly compacted to a density necessary to

support the roadway.

(b) Fill material should be free from muck, clay, vegetable matter

or other elements which will detrimentally affect the structure of

the roadway. All fill should be compacted according to the

characteristics of the acceptable in-place soil, the fill soil and

anticipated traffic loads. Where extensive fill is required, the

design should be executed by a qualified professional engineer.

roadway plus a 25 percent impact load. State or local regulations

should be followed in the determination of acceptable practice.

(d) In areas where soil in-place is not adequate for use as a

street subgrade, appropriate stabilization should be utilized. Soil

cement, lime and calcium chloride are the most commonly used

stabilization elements and their use for each particular case should

be determined by a competent engineering study or by local

regulations.

303-6.1.3 The base should be constructed in a manner which will provide a

suitable course for the application of the final surfacing. The

composition and depth of the base should be appropriate for the type

and amount of traffic anticipated. The types listed below are

generally acceptable base materials and others may be used according

to local conditions.

(a) Gravel Base. This base should consist of gravel and filler

constructed on a prepared subgrade. The material should be free

from organic matter and lumps or balls of clay; and such

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Material should be removed and replaced with approved material. The

base thickness should be determined by the projected road usage and

should be placed in layers not to exceed three (3) inches in

thickness after compaction. The base course material should not be

deposited or shaped on a frozen or thawing subgrade or during

unfavorable weather conditions.

(b) Crushed Stone Base. This base should consist of crushed stone

constructed on a prepared subgrade. The material should consist of

hard, durable particles or fragments of stone, free from an excess

of flat, elongated, soft or disintegrated pieces, dirt or other

objectionable matter. The base thickness should be determined by

the projected road usage and should be placed in layers not to

exceed three (3) inches in thickness after compaction. After the

coarse aggregate has been thoroughly compacted, choker stone should

be gradually applied to fill all voids. No base course material

should be deposited or shaped when the subgrade is frozen or thawing

or during unfavorable weather conditions.

soil and portland cement uniformly mixed, moistened and compacted.

Water should be from oil, acids, alkali and vegetable matter and

should be reasonably clean. Soil for this base course should

consist of the soil found in place, and any additional soil that may

be required should be treated as necessary for use as abase

material. Prior to mixing, the soil should be pulverized for the

full width and sufficient depth of the roadway. The specified

quantity of portland cement should be spread in one operation and

thoroughly mixed before the application of water and compaction.

After compaction, the roadway should be cured for an appropriate

period of time and traffic should be prohibited during this time.

(d) Asphaltic Concrete Base. This base should be composed of a

combination of course aggregate, fine aggregates and bituminous

cement mixed in a central plant. Asphaltic cement to be used in the

asphaltic concrete should be uniform in character, free from water

and should contain no mineral matter other than that naturally

present. Aggregate should consist of fine gravel and sand,

disintegrated granite, or other similar granular materials. Where

cement concrete or masonry edging is not used, suitable side forms

of wood or steel should be placed. Placing of the mixture should be

as continuous as possible with all joints well bonded and sealed.

After spreading, the mixture should be thoroughly compacted with a

power drive roller according to accepted practices. No asphalt

material should be laid when the temperature of the air is 50

degrees

RD Instruction 1924-A

Guide 2

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Fahrenheit and falling or during other unfavorable weather

conditions.

303-6.1.4 Hard surfaced wearing surfaces, when required, should be of

adequate design for the projected traffic loads. Local regulations,

availability of materials, and maintenance facilities will dictate

the type of paving to be used. The following types of paving are

generally acceptable, although some types may not be locally

accepted, or additional materials may be used according to local

regulations.

(a) Portland Cement Concrete Pavement. This surface should consist

of water, aggregate and cement in the required proportions. Forms

should be placed to acceptable tolerances, properly braced, and well

oiled before placement of the material. The concrete should be

deposited rapidly and leveled according to approved methods.

Finishing should be done to remove free water, to provide the

desired final appearance and to correct surface irregularities.

Expansion and contraction joints should be provided at the required

intervals. Properly protected curing for a minimum 72 hours should

be observed. No concrete should be placed on a frozen or thawing

subgrade or during unfavorable weather conditions, or when the

temperature is 38 degrees and falling.

(b) Double Bituminous Surface Treatment (Cutback Asphalt). This

surface should consist of three applications of bitumen and a

spreading of coarse aggregate and seal coat aggregate on a prepared

base. Bituminous materials should conform to applicable

specifications. Aggregate should be crushed stone and should

consist of particles of clean, hard, tough, durable, uncoated rock

fragments and should be reasonably free from an excess of flat,

elongated soft or disintegrated pieces, organic or other

objectionable matter and should be free from lumps of clay. The

bitumen should be applied with a pressure-type power distributor. A

prime coat should be uniformly spread and allowed to set up. A

second coat should be applied followed immediately by an application

of coarse aggregate which should be uniformly rolled. A seal coat

of bitumen and aggregate should be applied after all loose and

excess aggregate have been removed from the first coating. No

materials should be placed when either the temperature of the air or

base on which the material is to be placed is 50 degrees Fahrenheit

and falling or during unfavorable weather conditions.

consist of a wearing course composed of aggregate and bituminous

material mixed in a central plant. Liquid asphalt should be of

acceptable quality. Asphalt cement to be used in

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The asphaltic concrete should be uniform in character, free from

water and should contain no mineral matter other than that naturally

present. Aggregate should consist of fine gravel and sand,

disintegrated granite and other similar granular materials. The

existing surface should be cleaned before application of the tack

coat by a pressure-type power distributor. The bituminous mixture

should be spread, raked and rolled in an acceptable manner.

Longitudinal and transverse joints should be well bonded and sealed.

No asphalt material should be laid when the temperature of the air

is 50 degrees Fahrenheit and falling or during unfavorable weather

conditions.

(d) Asphaltic Concrete Wearing Surface. This surface should

consist of aggregate and bituminous material mixed in a central

plant. Asphalt cement to be used in the asphaltic concrete should

be uniform in character, free from water and should contain no

mineral matter other than that naturally present. Aggregate should

consist of fine gravel and sand, Aggregate disintegrated granite or

other similar granular materials. The bituminous mixture should be

spread, raked and rolled in an acceptable manner. Longitudinal and

transverse joints should be well bonded and sealed. No asphalt

material should be laid when the temperature of the air is 50

degrees Fahrenheit and falling or during unfavorable weather

conditions.

303-6.1.5 All-weather surfaces, where acceptable, should be designed to

accommodate the projected traffic load. The subgrade and base

should be constructed in a manner similar to hard-surface roads so

that hard surfacing can be easily accomplished at a later date. The

following types are generally acceptable and other types may be used

dependent upon local conditions.

(a) Layered Oil Surface. This surface should consist of aggregate

and waste oil thoroughly mixed and compacted. The base should be

scarified and oil applied by a pressure-type power distributor.

This process should be repeated a number of times until the mixture

is consistent to an acceptable depth. Final compaction should

provide a regular surface with the required density.

(b) Gravel Surface. This surface should consist of course and fine

aggregates applied in a manner similar to gravel bases. If the

gravel wearing surface is for long-term usage, a permanent gravel or

crushed stone base should be covered with a layer of aggregate

selected or treated to minimize dust in use. Where hard surfacing

is anticipated within 24 months, a suitable gravel base may be used

as a driving surface provided adequate maintenance is performed and

the base is adequately required before application of the hard

surfacing.

RD Instruction 1924-A

Guide 2

Page 3 - 19

303-7 RELATED IMPROVEMENTS

303-7.1 Planting Strips. When provided, should not be less than twelve

(12) inches in width. Plantings at intersections should not

interfere with lines of sight necessary for safe driving conditions.

303-7.2 Street Trees. Street trees, of a variety and size in accordance

with the standards adopted by the local governing body, may be

planted between street and curb and gutter and sidewalk.

303-7.3 Street Lighting. In addition to the required street

intersection lighting, it may be desirable for a subdivider to

install street lights throughout the subdivision. In these cases, a

subdivider should conform to the requirements generally in use in

the area and payment for electrical power use for the street

lighting should be that in common practice in the area. Generally,

the public body that accepts maintenance of the streets will provide

the power for street lighting.

304 GRADING DESIGN

304-1 GENERAL

304-1.1 Site grading should be designed to establish building floor

elevations and ground surface grades which:

(a) Minimize earth settlement problems.

(b) Avoid concentrating run off onto neighboring properties where

erosion or other damage will be caused.

(d) Minimize erosion.

(e) Avoid deep cuts and fills.

(f) Minimize the need for banks, retaining walls or terracing, and

avoid long or repeated flights of steps.

304-1.2 Grades should not be designed which direct a concentrated flow

of surface drainage over existing or proposed slopes.

304-1.3 All earth slopes with grades of three on one or steeper should

be planted with appropriate vegetative cover to minimize erosion.

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304-1.4 Occupant and visitor exposure to potential hazards such as rock

slides or steep cliffs, created by existing slopes, should be

minimized by the installation of fences, walls or planting, as

appropriate.

304-1.5 Maximum gradient for useable open areas should be 5.0 percent.

305 DRAINAGE

305-1 GENERAL

Provisions should be made for the best available routing of runoff

water to assure that buildings or other important facilities will

not be endangered by the path of major emergency flood runoff which

would become active if the capacity of the site storm drainage

system is exceeded.

305-2 SWALES AND OPEN DITCHES

305-2.1 In areas provided with open drainage ditches, locations where

these facilities intersect streets should have culverts, riprap and

bulkheads adequately sized and constructed to prevent the flow of

water across the pavement surfaces and erosion of the roadway base.

305-2.2 Where a swale or drainage ditch intersects a sidewalk or

driveway, an adequately sized culvert or bridge should be provided.

Walks should not be designed as drainage ways.

305-3 STORM SEWERS

305-3.1 A storm sewer or swale discharge into ponds, swales or ditches

should have either riprap, headwall, or other similar protection to

prevent undermining of the cutlet pipe and erosion of the side

slopes.

305-3.2 Consideration should be given to emergency outlets when the

storm sewer system is inoperable due to blockage or when the design

capacity has been exceeded.

Headwalls and other appropriate construction should be placed at the

open ends of storm sewers to prevent excessive erosion and

undermining of conduit.

305-4 SUBSURFACE DRAINAGE

305-4.1 Developed portions of a site which can be adversely affected by

a potentially high ground water table should be drained where

possible by subsurface drainage facilities adequate for the disposal

of excess ground water.

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305-4.2 Drywells should be placed a minimum distance of 20 ft. from

buildings. This distance may be reduced to 10 ft. if the drywell

does not exceed 3 ft. in diameter.

306 THE PROPOSED SITE

306-1 GENERAL

The site design should be arranged to utilize and preserve the

favorable features and characteristics of the site and to avoid or

minimize the potential harmful effect of unfavorable features.

306-2 TOPOGRAPHY

In the design of a site, the effect of topographic conditions on the

costs of development and operation should be considered when

locating various uses on the land. Land uses should be combined

with site conditions in a manner which assures a functional and

economically maintainable development and in a manner which permits

correction of potential hazards.

306-2.1 Ground Contours

All elements of the site plan should be designed to fit the natural

contour of the land as closely as possible and practicable.

306-2.2 Vegetation

Existing healthy trees, shrubs, and natural cover of good quality

which will contribute to the living environment and which can be

saved within the site design should be preserved.

306-3 GROUND WATER

Buildings, structures, streets, paved areas and utilities should be

located on the site in areas of the least potential ground water

hazard.

305-4 LOT LAYOUTS

306-4.1 Corner lots for residential use should have extra width to

permit appropriate building setback from and orientation to both

streets.

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306-4.2 The subdividing of the land should be such as to provide each

lot with satisfactory access to an existing public street or

highway.

insert diagram

DIAGRAM 10. MAKE SHALLOW LOTS DEEPER AND CORNER LOTS LARGER.

306-4.3 In the absence of local regulations on lot dimensions, the area,

width, depth, shape and orientation and the minimum building setback

lines should be appropriate for the location of the site and for the

type of development and use contemplated.

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Side lot lines should be substantially at right angles or radial

to street right-of-way lines.

306-4.8 Desirable natural features such as streams or lakes should be

deeded to the local governing body or homeowners association. An

easement not less than 10 feet in width should be provided for

access to and circulation around any common natural feature.

307 YARDS AND BUILDING SETBACK DISTANCE

307-1 GENERAL

307-1.1 The length and height of each building wall, the location of the

main entrance as it relates to the dwelling and to window walls of

nearby dwellings, and the location of windows in all habitable rooms

should be considered in establishing yard depth.

307-1.2 Building setback distance from the street should provide for

reasonable privacy and minimize the adverse effects of traffic and

other noises, fumes, and headlight glare.

307-2 SIDE AND REAR YARDS

307-2.1 Yard space between exterior building walls and the adjacent lot

line should be measured perpendicular to the lot line opposite the

building wall at all points. The minimum distance from the wall to

the lot line is determined by:

(a) The height of the wall in stories.

(b) The horizontal length of the wall from corner to corner.

(1) Primary Wall is that wall which contains the principal

window(s) in a habitable room except bedrooms and kitchen,

and/or the main entrance to the dwelling when it directly faces

a primary wall of another dwelling.

(2) Secondary Wall is that wall which contains the windows)

of rooms for other than a primary wall as defined above.

(3) Windowless Wall is that wall which contains no windows.

307-2.2 Minimum distance from building wall to lot lines should be:

(a) Primary Wall

6 ft. plus 2 ft. for each story (S) in height plus 1 ft. for

each 10 ft. of length (L). D = 2S + L/10

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(b) Secondary Wall

2 ft. + 1 ft. for each story (S) in height plus 1 ft. for each

10 ft. of length (L), minimum distance 5 ft. D = 2 + S + L/10.

Yard depth for walls containing no windows, or only windows

which do not involve loss of privacy for required interior

space should be no less that 8 feet.

(d) Retaining Wall

The distance between a building wall with habitable room

windows and a retaining wall with the top above the midpoint of

the vertical height of the lowest window should be a minimum of

the appropriate primary or secondary wall distance, see above,

treating the retaining wall as a lot line.

307-3 DISTANCE BETWEEN BUILDINGS

307-3.1 The distance between buildings should not be less than the sum

of the yards of the individual wall types recommended by section

307-2.2.

307-3.2 Where a window wall is opposite a windowless wall, the distance

between buildings is determined by the required yard space for the

window wall.

307-3.3 Where opposing walls have no windows, there is no required

distance between buildings other than for fire protection.

307-4 BUILDING STREET SETBACK DISTANCE

307-4.1 The setback distance of buildings from the front property line

and the street side lot line of corner properties should:

(a) Be diversified to assure visible variety in building and space

relationship avoiding monotony.

(b) Be consistent with the best building placement considering the

topography and other site conditions.

walks, drives, parking space and plant materials.

(d) Be adequate to assure reasonable visual and auditory privacy

for indoor and outdoor living areas.

(e) Minimize adverse effects of fumes, headlight glare, and other

nuisances.

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307-4.2 Buildings should be set back from parking areas and screened to

minimize headlight glare into habitable rooms and should be arranged

to prevent direct or concentrated discharge of automobile exhausts

into any window.

308 PARKING AREAS

308-1 GENERAL

Adequate parking space should be provided for residents, guests and,

where appropriate, service vehicles. Where practical, additional

parking space should be planned and reserved for future use.

308-2 NUMBER OF SPACES

308-2.1 The number of parking spaces to be provided should be based on

individual analysis of each housing proposal.

308-2.2 Detached single family housing should have one parking space per

unit on each lot. This space should have an all-weather surface and

minimum dimensions of 10 feet by 22 feet.

308-2.3 Off-site parking spaces for multi-family housing may be

substituted for onsite parking, if available, and acceptable to the

local authorities.

308-3 PARKING BAYS

Parking bays for multi-family projects and townhouses should meet

the following:

308-3.1 Minimum single space dimension should be 8 ft. wide and 18 ft.

Deep. Maximum number of spaces in a single bay should be 20. Minimum

distance between bays should be 8 ft.

308-3.2 Maximum walking distance from a parking space to a public

entrance of apartment building served should be:

(a) Non-elderly resident parking space - 250 ft.

(b) Elderly resident parking space - 150 ft.

308-3.3 Wheel stops or other appropriate barriers should be provided and

suitably placed to prevent unwanted vehicular encroachment beyond

parking area limits.

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309 WALKS

309-1 GENERAL

Walks should be provided for safe convenient access to all

dwellings and for safe pedestrian circulation throughout a

development between facilities and locations where major need for

pedestrian access can be anticipated.

309-2 PUBLIC OR COMMON USE WALKS

309-2. 1 Where the window sill of a bathroom or bedroom is less than 6

ft. Above a public walk, the walk should be at least 8 ft. from the

wall containing the window.

309-2.2 Minimum walk width should be 4 ft. except abutting a parking bay

or court where it should be 6 ft. to accommodate car overhangs and

provide walking space.

309-2.3 Sidewalks at least 5 feet in width should be provided on each

side of all arterial streets or designated state roads where

necessary for pedestrian and traffic safety. Sidewalks at least 4

feet in width should be placed along marginal access streets where

necessary for pedestrian and traffic safety.

309-3 ENTRANCE WALKS

309-3.1 Minimum walk widths should be:

(a) Principal walk (serving more than one unit) 4 ft.

(b) Minor walk (serving only one unit) 3 ft.

(d) Elevator building entrance walk 5 ft.

309-4 CHEEK-WALKS

Cheek-walls should be provided at least 4 in. thick for step flights

of three or more risers except where the rear intersection of treads

and risers are at least 2 in. above grade.

310 SERVICES

310-1 GENERAL

Necessary services supplied by the local community should be

provided the required space and accommodation in the site design to

permit economical operation and maintenance.

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310-2 ACCESS

Direct and convenient site access should be provided for all

deliveries and services including furniture moving vans, fuel

trucks, refuse collections, utility meter readings, mail deliveries,

fire fighting equipment and ambulances.

310-3 GARBAGE & REFUSE

310-3.1 Single family housing should have space adjacent to each living

unit for refuse can storage.

310-3.2 Multiple family housing projects should have an outdoor facility

for garbage and refuse collection and disposal which can be

maintained in a sanitary, sightly condition where other provisions

have not been made. Collection stations should be designed with

easily cleaned, nondusting or paved surfaces.

310-4 SERVICE SCREENING

Service areas and facilities should be screened.

311 PLANTING DESIGN

311-1 GENERAL

Planting design should coordinate appropriate new plant

materials and their ecological requirements with the climate, soil,

orientation, water courses, existing vegetation, related natural

resources and manmade facilities. A variety of plant materials

should be provided to enhance the appearance of buildings and

grounds, provide necessary screening, help separate incompatible use

areas, arrest erosion and reduce noise.

311-2 LAWNS

Lawn preparation should include a surface layer having a minimum

depth of 4 in. comprised of surface soil with a known local

capability of satisfactorily supporting lawn growth.

312 SITE DETAILS

312-1 GENERAL

Elements of the site such as shelters, service structures, walls,

fences, planting tubs and boxes, benches, patios recreational

equipment and paved areas should be furnished according to occupant

needs and local customs.

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312-2 LAUNDRY DRYING YARDS

Laundry drying space should be provided in suitable areas and

located away from public view where other laundry drying facilities

are not furnished.

312-3 WALLS AND FENCES

312-3.1 Walls and fences should be included in the site design as

appropriate to provide safety, screening, noise reduction or grade

transition.

312-3.2 Guardrails or other suitable barriers should be provided on

accessible retaining walls or at other locations which, because of

the height (24 in. or over) or other factors, constitute a hazard to

life safety.

312-4 OUTDOOR LIGHTING

All public areas where pedestrian use can be anticipated after

sunset should be adequately lighted for security purposes where

arrangements for permanent maintenance and operation can be assured.

313 COMMON USE FACILITIES

313-1 GENERAL

Improved open space for both active and passive recreation should be

provided. The improvement should be consistent with the size of the

development, age levels, and needs of intended occupants and should

consider operation and maintenance costs.

312-2 RECREATION

312.2.1 Adequate recreation space appropriately equipped should be

provided, consisting of open areas for active recreation such as

playground or major sports, and places for passive recreation such

as parks and sitting areas.

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312.2.2 Publicly owned and maintained parks, playgrounds and school

grounds which are convenient to a development and readily available

for use by the residents may be considered in the design of the

site.

312.2.3 Recreation areas for the elderly should be separated from areas

designed for use by children or young adults in projects

accommodating both elderly and families.

314 HILLSIDE DEVELOPMENT

314-1 GENERAL

It is the intent of this Section to provide guidelines for sites,

where the majority of the land area has slopes exceeding fifteen

percent (15%) and special measures must be taken to provide adequate

building sites with safe access and reliable utilities. These steep

sites will be acceptable for Rural Development financed housing only

if the State Director determines there are no other suitable sites

of lesser slopes available in the area where the housing need

exists.

314-2 MANUFACTURED SLOPES

314-2.1 All manufactured slopes adjacent to the roadway should normally

be a maximum of two horizontal to one vertical (2:1 unless limited

to existing topography or constructed in rock. Manufactured slopes

of less than two to one (2:1) may be permitted where adequate slope

control measures such as retaining walls or rip-rap embankment are

utilized. The slope should in no case exceed the natural angle of

repose of the material. Cut and fill slopes should be constructed

to eliminate sharp angles of intersection with the existing terrain

and should be rounded and contoured as necessary to blend with the

natural topography to the maximum possible intent.

314-2.2 All manufactured slopes, other than those constructed in rock,

should be planted or otherwise protected from the effects of storm

erosion as soon as possible after construction and should be

benched, terraced and excessive runoff diverted as required to

provide for adequate stability. If the severity of the slope or the

composition of the soil indicates unusual stability hazards,

according to soil reports, further remedies may be necessary as

determined with the assistance of a qualified soils engineer.

314-3 LOT AREAS

As the slope of terrain increases, lot areas normally increase to

provide adequate outdoor living area, driveways, allowance for slope

maintenance, snow removal or collection, etc. Lots should be of

adequate size to meet the needs of occupants of the structure to be

placed thereon.

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314-4 LOT WIDTH

The lot width should be sufficient to provide an acceptable building

site and reasonable and safe access.

314-5 WALKWAYS

Walkways should be provided when dwelling units have frontage on

major streets and highways, or when considered necessary to provide

pedestrian safety along public streets. Slip resistant stepping

stones or other durable materials may be substituted for paved

walks. Walkways should preserve the character of the hilly area to

the maximum extent possible.

314-6 STREET CONSTRUCTION

Streets constructed on a gradient in excess of 18% should consist of

a portland cement concrete surfacing with a minimum thickness of 6

inches placed on a suitable base course and should be provided with

a roughened surface to minimize skidding or slipping of vehicles.

314-7 DRIVEWAYS

Driveways should be designed to a grade and alignment that will

provide the maximum safety and transition to prevent "bottoming out"

in a manner which will not interfere with drainage or public use of

the street and/or street area.

314-8 LIGHTING

Where considered necessary for safety purposes and where permanent

maintenance and operation can be assured, outdoor lighting and/or

street lighting should be provided.

TABLE OF CONTENTS

400 GENERAL

401 SPACE PLANNING

401-1 GENERAL

401-2 NON-RESIDENTIAL SPACES

401-3 LIVING, DINING, BEDROOMS

401-4 KITCHENS, BATHS, LAUNDRIES

401-5 CLOSETS AND GENERAL STORAGE

401-6 GARAGES AND CARPORTS

401-7 CEILING HEIGHTS

402 ACCESS AND CIRCULATION

402-1 GENERAL

402-2 ENTRANCE FACILITIES

402-3 DOORS AND OPENINGS

402-4 CORRIDORS

402-5 CIRCULATION

402-6 STAIRWAYS

403 LIGHT AND VENTILATION

404 ACOUSTIC CONTROL

405 FIRE PREVENTION

405-1 GENERAL

405-2 FIRE RESISTANCE REQUIREMENTS (One & Two Family

Dwellings Only)

405-3 INTERIOR FIRE PROTECTION (One & Two Family

Dwellings Only)

405-4 INTERIOR FINISH

405-5 FIRE ALARM AND EXTINGUISHING SYSTEMS

405-6 STANDPIPES

406 MISCELLANEOUS

RD INSTRUCTION 1924-A

GUIDE 2

Page

CHAPTER 4 BUILDING DESIGN

406-1 ANTENNA SYSTEMS

4 - 1

4 - 2

4 - 3

4 - 6

4 - 7

4 - 8

4 - 9

4 - 10

4 - 11

4 - 12

4 - 13

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BUILDING DESIGN

400 GENERAL

Building design should provide for an attractive living facility and

environment suited to the social, economic, and recreational needs

of resident families and individuals. It should provide for ease of

circulation and housekeeping, visual and auditory privacy,

appropriate light and ventilation, fire and accident protection,

economy in maintenance and use of space, accessory services, energy

efficiency, and sanitation facilities.

401 SPACE PLANNING

401-1 GENERAL

In multi-family housing projects designed for both elderly and for

families with children, living units for the elderly should be

located in separate structures, floors or wings of the building.

401-2 NON-RESIDENTIAL SPACES

401-2.1 Community Social Rooms

Where community social and recreational rooms are provided, they

should be designed in accordance with the needs of the occupants and

have adjacent toilet facilities for men and women which are

accessible to the handicapped. An adjacent storage area should be

provided. Such spaces should be provided in housing for the

elderly.

401-2.2 Management and Maintenance Space

Space should be provided to commensurate with the number of living

units served. Also, space should be provided for necessary staff

where social services are provided.

401-2.3 Central Laundries

Central laundry facilities containing space for automatic washers,

dryers and sorting tables should be located near the elevators or

other pedestrian traffic center for the convenience and safety of

the users. The space within the laundries should be visible from an

adjacent public area.

401-2.4 Project Storage

Space for storage of maintenance supplies and equipment such as

paint, hand tools, lawn mowers, snow blowers, etc., should be

provided in accordance with the needs of the project.

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401-2.5 Facilities for Trash and Garbage Disposal

(a) Provide for the temporary sanitary storage of trash and garbage

and for its subsequent disposal or removal.

(b) Design and construction of trash chutes should be of

appropriate size and type and in accordance with NFPA Standard No.

82, Incinerators and Rubbish Handling. Each trash chute hopper

should be located in a room of not less than 20 sq. ft.

401-3 LIVING, DINING, BEDROOMS

401-3.1 Each dwelling unit should contain space for general family

living and group activities, dining, sleeping, dressing, and

personal care.

401-3.2 Minimum Room Sizes Based on Sq. Ft. Area

TABLE 4-1.1

RECOMMENDED MINIMUM ROOM SIZES

A. Minimum Room Sizes for Separate Rooms

Minimum Area (Sq. Ft.) (7) Least

Name of Space (1) LU with LU with LU with LU with LU with Dimen-

0-BR 1-BR 2-BR 3-BR 4-BR sion

LR NA 160 160 170 180 11'-0"

DR NA 100 100 110 120 8'-4"

BR (primary) (2) NA 120 120 120 120 9'-4"

BR (secondary) NA NA 80 80 80 8'-0"

Total area, BR's NA 120 200 280 280 _____

B. Minimum Room Sizes for Combined Spaces

Minimum Area (Sq. Ft.) (7) Least

Combined Space LU with LU with LU with LU with LU with Dimen-

(1) (4) 0-BR 1-BR 2-BR 3-BR 4-BR Sion (3)

LR-DA NA 210 210 230 250

LR-DA-SL 250 NA NA NA NA

LR-DA-K (5) NA 270 270 300 330

LR-SL 210 NA NA NA NA

K-DA (6) 100 120 120 140 160

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Notes

(1) Abbreviations:

LU = Living Unit K = Kitchen

LR = Living Room NA = Not Applicable

DR = Dining Room BR = Bedroom

DA = Dining Area SL = Sleeping Area

O-BR = LU with no separate bedroom

(2) Primary bedrooms should have at least one wall space of at least 10 ft.

Uninterrupted by openings less than 44 in. above the floor.

(3) The minimum dimensions of a combined room should be the sum of the

dimensions of the individual single rooms involved except for the overlap or

combined use of space.

(4) For two adjacent spaces to be considered a combined room, the horizontal

opening between spaces should be at least 8 ft. - 0 in. except that between

kitchen and dining functions the opening may be reduced to 6 ft. - 0 in.

Spaces not providing this degree of openness should meet minimum room sizes

required for separate rooms.

(5) A combined LR-DA-K should have a clear opening between the kitchen and

dining area of at least 4 ft. - 0 in.

(6) These minima apply when the only eating space is in the kitchen.

(7) The floor area of an alcove, or recess off a room, having a dimension

less than required for the room should be included only if it is not more than

10 percent of the minimum room size permitted and is useful for the placement

of furniture.

401-4 KITCHENS, BATHS, LAUNDRIES

401-4.1 Kitchen

(a) Kitchen fixtures and countertops should be provided in

accordance with Table 4-1.2. Countertops should be approximately 24

in. deep and 36 in. high. Clearance between base cabinet fronts in

food preparation area should be 40 in. minimum.

(b) Countertops may be combined when they are located between two

fixtures stove, refrigerator, sink. Such a countertop should have a

minimum frontage equal to that of the larger of the countertops

being combined. This combined counter may also be the mixing

counter when its minimum length is equal to that required for the

mixing counter. Countertop frontages may continue around corners.

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TABLE 4-1.2

RECOMMENDED COUNTERTOPS AND FIXTURES (6)

Number of Bedrooms

0 1 2 3 4

Work Center Minimum Frontages in Lineal In.

Sink 18 24 24 32 32

Countertop, each side 15 18 21 24 30

Range or Cooktop Spaces (1) (2) (5)

Countertop, one side (3)

Refrigerator Space (4)

Countertop, one side (3)

Mixing Countertop

Notes

(1) Where a built-in wall oven is installed, provide an 18 in. wide counter

adjacent to it.

(2) A range should not be located under a window nor within 12 in. of window.

Where a cabinet is provided above a range, 30 in. clearance should be provided

to the bottom of an unprotected cabinet, or 24 in. to the bottom of a

protected cabinet.

(3) Provide at least 9 in. from the edge of a range to an adjacent corner

cabinet or side wall, and 15 in. from the side of a refrigerator to an

adjacent corner cabinet.

(4) Refrigerator space may be 33 in. when refrigerator door opens within its

own width.

(5) When a range is not provided, a 30 in. wide space should be provided.

c. Kitchen storage shelf area should be provided in accordance with

Table 4-1.3. At least one third of the required area should be

located in base or wall cabinets.

(6) A cooking facility and refrigerator should be provided in each rental

unit.

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Page 4 - 5

TABLE 4-1.3

RECOMMENDED STORAGE AREA

SQ. FT. Number of Bedrooms

0 1 2 3 4

Minimum Shelf Area 24 30 38 44 50

Minimum Drawer Area 4 6 8 10 12

401-4.2 Baths

(a) Each dwelling unit should have at least one bathroom containing

a lavatory, water closet, and bathtub. Bathrooms should provide for

comfortable access to, and use of, each fixture. Bathrooms should

be convenient to the bedrooms.

(b) Bathrooms should be provided with the following accessories:

(1) Grab bar and soap dish at tub or shower

(2) Shower curtain rod or enclosure at shower

(3) Toilet paper holder at water closet

(4) Mirror and medicine cabinet or equivalent enclosed storage

(5) Two towel bars

showers or tub-showers to a height of 6 ft. from the finish floor.

401-4.3 Laundry

(a) Where common laundry is not provided, space should be provided

in each unit for a clothes washing machine equipped with power

supply and water and waste piping or a laundry tray.

(b) Where other drying facility is not furnished, space should be

provided in each living unit for a dryer equipped with power supply

and vent to the outside.

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401-5 CLOSETS AND GENERAL STORAGE

401-5.1 Bedroom Closets

Each bedroom should have accessible clear hanging space equipped

with rod and shelf which meets or exceeds the following:

Double Occupancy Bedrooms Single Occupancy Bedrooms

2' -0" x 5' -0" 2' -0" x 3' -0"

401-5.2 Coat Closet

A 2 ft. x 2 ft. (clear floor area) coat closet should be provided

convenient to the entrance.

401-5.3 Linen Storage should be provided as follows:

(a) Minimum shelf area: 10 sq. ft. for 2 bedrooms or less, 15 sq.

ft. for 3 or more bedrooms.

(b) Spacing of shelving: Not less than 12 in. o.c.

401-5.4 General Storage

(a) In addition to closets and kitchen storage, each dwelling unit should

have a minimum total volume of interior and exterior storage of 200 cu. ft.

plus 75 cu. ft. per bedroom.

(b) General storage may be reduced 75 cu. ft. when exterior

maintenance is to be performed by other than occupants.

provided should be located for the convenient storage of items used

outdoors, except for elderly housing.

(d) Each living unit having one or more bedrooms should have at

least one closet for general storage or utility purposes located in

a conveniently accessible place within the unit. This closet should

be at least 6 sq. ft. In area and full room height. The remainder

of the general storage may be located in bedroom and coat closets

provided this space is in addition to the required closet space.

(e) Common storage should be in a dry area with space divided into

lockable compartments or closets for each living unit.

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401-6 GARAGES AND CARPORTS

Where garages or carports are provided, they should be designed to

provide space for full size cars as well as for convenient opening

of doors and circulation around cars. Their location should provide

convenient vehicular access as well as convenient access to living

units.

401-7 CEILING HEIGHTS

401-7.1 Ceiling heights clear under beams or other obstructions should

be in accordance with Table 4-1.4.

TABLE 4-1.4

RECOMMENDED MINIMUM CLEAR CEILING HEIGHTS

Habitable Rooms 7'-6"

Halls within living unit, Baths 7'-0"

Luminous Ceilings

Within living unit

Public Corridor

7'-0"

7'-4"

Sloping Ceilings At least 7'-6" for 1/2 the

room with no portion less than

5'-0"

Public Corridors 7'-8"

Public Rooms 8'-0"

Basements without Habitable

Rooms 6'-8" (6'-4" under girders)

402 ACCESS AND CIRCULATION

402-1 GENERAL

Space and facilities should be provided for convenient access to and

circulation within dwellings for occupants and for movement of

furniture and supplies. The relationship of rooms within the living

unit and the relationship of living units to each other should

provide a degree of privacy commensurate with desirable living

conditions.

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402-2 ENTRANCE FACILITIES

Entrances should have appropriately sized exterior platforms when

access is not from a paved area such as a porch, terrace, garage or

carport.

402-3 DOORS AND OPENINGS

402-3.1 Recommended minimum doorway widths should be:

Public Doors

Main entrance to building 3'-0", 6'-0

for double doors

Secondary public entrance to building 3'-0"

Service entrance to building 2'-8"

Public stairway 3'-0"

Private Doors

Main entrance to living unit 3'-0"

Secondary entrance to living unit 2'8" (5'-0" sliding

glass doors may be

used)

Bathrooms, toilets in living unit 2'-0"

Habitable rooms 2'-6"

402-3.2 A door should be provided at each entrance to a building, living

unit, and required stairway enclosure; within the living unit, a

door should be provided at each opening to a bedroom, bathroom,

toilet room, and closets.

402-3.3 Locking devices at doors and windows should be as follows:

a. Each exterior doorway or doorway leading to garage areas, public

hallways, terraces, balconies, or other areas affording easy access

to the premises should be protected by a door which, if not a

sliding door, should be equipped with a deadlock using either an

interlocking vertical bolt and striker, or a minimum 1/2 in. Throw

dead bolt, or a minimum 1/2 in. throw self-looking dead latch.

Locks should not require the use of a key for operation from the

inside.

b. All sliding doors, first floor and basement windows, and windows

opening onto stairways, fire escapes, porches, terraces, balconies,

or other areas affording easy access to the premises, should be

equipped with a locking device.

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c. Swinging entrance doors to a living unit should be keyed alike.

d. Bathroom, toilet room, and primary bedroom doors should be

equipped with a privacy lock which can be opened from the outside in

an emergency.

402-3.4 All entrance doors, including storm and screen doors,

opening outward should be provided with a safety door check. Main

and secondary public doors should be equipped with a door closer.

402-3.5 When the attic or crawl space contains mechanical equipment, the

access opening and any accompanying areaway should be of sufficient

size and shape to permit replacement of the equipment.

402-3.6 Access openings to common attic or crawl spaces of multi-family

housing should not be located within the living units.

402-4 CORRIDORS

The width of corridors at elevators should be greater than the width

of the corridor at other locations except where the elevator is

serving six living units or less per floor. The increase in width

should be at least 20 percent for corridors or hallways less than 5

ft. wide, and at least 12 percent for corridors from 5 ft. to 7 ft.

wide.

402-5 CIRCULATION

Each bedroom should have access to a bathroom without an intervening

bedroom, kitchen, or principal living or dining area. Bedrooms

should not afford the only access to a required bathroom except in

one bedroom units. Neither a bedroom nor a bathroom should afford

the only access to a habitable room.

402-6 STAIRWAYS

402-6.1 Stairways and landings should provide for safe ascent and

descent under normal and emergency conditions and for the transport

of furniture and equipment. They should be designed to minimize

noise transmission into adjacent living units.

402-6.2 Stairways having three or more risers should have a handrail 30

in. in height on at least one side of the stairways. Handrails

should have intermediate rails or ornamental closures which will not

allow passage of an object 5 in. or more in diameter.

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403 LIGHT AND VENTILATION

Light and ventilation should be provided to achieve a healthful

environment within the dwelling and so located as to provide an

acceptable degree of comfort. Structural spaces should have natural

ventilation to reduce conditions conducive to decay and to release

stored heat. Ventilation should be considered for the removal of

excessive moisture vapor in living units.

404 ACOUSTIC CONTROL

Living units should be designed to provide an acoustically-

controlled environment in relation to exterior noise and noise from

adjacent living units and public spaces.

405 FIRE PREVENTION

405-1 GENERAL

405-1.1 Every living unit should be: (a) constructed so as to reduce

fire hazard separated from every other living unit by construction

or distance to restrict the spread of fire, and (c) be designed to

provide means of safe egress in the event of a fire.

405-1.2 The fire protection recommendations in this section may be more

stringent than the minimum requirements of local building codes and

applicable development standards.

405-2 FIRE RESISTANCE RATINGS (One & two family dwellings only)

TABLE 4-5.1

RECOMMENDED MINIMUM FIRE RESISTANCE IN HOURS

Type of Housing

Construction Detached and Row Houses

Semi-Detached Attached

Party, common walls 1 1-1/2(1) (2)

Exterior lot-line walls 3/4 3/4

Partitions at common 3/4 3/4

entrance halls (1)

Bearing partitions 1/3 1/3

Floor-ceiling assemblies (4) (5)

Roof-ceiling assemblies (4)

Separation between garage and living unit (1) 3/4 3/4

RD Instruction 1924-A

Guide 2

Page 4 - 11

Notes:

(1) Combustible walls which are penetrated with electrical outlets or other

mechanical devices should have interior (cavity) fire protection.

(2) Walls should extend at least 18 in. above top of roof. See 405-3.1 b for

alternate methods.

(3) Supporting walls, beams and columns - 1 hour.

(4) Floor assembles over nonhabitable basements, roof assemblies for detached

and semi-detached housing, supporting beams and columns - 1/6 hour.

(5) Floor assemblies not meeting the 1/6 hour fire resistance rating may be

acceptable where a single station smoke detector is provided for every level.

405-3 INTERIOR FIRE PROTECTION (One & two family dwellings only)

405-3.1 Party, Common and Lot-Line Walls

(a) Walls should extend the full height of the dwelling without

openings from foundation to the roof.

(b) Walls separating row houses may be carried up to the underside

of the roof sheathing and sealed tightly in the following

conditions:

(1) Where the roof framing and deck are noncombustible and

roof covering material is at least Class C Classification (ASTM

E108).

(2) Where the roof construction provides one hour protection

against sheathing burn through with a Class A brand (tested in

accordance with Burning Brand Test of ASTM E08) for width of 6

ft. on each side of the wall.

lotline walls where wall construction provides a minimum of one-hour

protection on each side of stacks. Penetration of the wall by

electrical outlets or recessed cabinets should not be back to back,

and there should be a minimum of one-hour protection around

penetration.

405-4 INTERIOR FINISH

405-4.1 Flame Spread Limitations

(a) The surface flame spread rating of interior finish materials of

walls, ceilings and kitchen cabinets should not exceed 200

determined by an independent testing laboratory or recognized

association laboratory.

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(b) Flame spread of kitchen cabinets should apply to combustible

cabinet doors, exposed end panels and bottoms and counter tops.

Cabinet frame rails, stiles, mullions and toe strips are exempted.

405-4.2 Marking

Except for conventional homogeneous materials whose flame spread

characteristics have been determined by test and are in common

usage, all finishing materials should be marked to indicate the

maximum flame spread rating.

405-5 FIRE ALARM AND EXTINGUISHING SYSTEMS

405-5.1 Fire Alarm Systems

(a) Every exit arrangement serving more than eight living units or

building, of three stories or more in height should be equipped with

a manual fire alarm system. Each floor should have at least one or

more manual fire alarm boxes and sounding devices at visible points

in the natural paths of escape from fire and near each exit.

(b) Exterior and interior corridor type buildings four or more

stories in height should have an alarm system which transmits an

alarm automatically to the fire department which is legally

committed to serve the area in which the building is located, or to

a 24-hour monitoring service inside or outside the building. An

annunciator which indicates the fire floor should be located at a

central point within the building.

alarm on the fire floor, floor below the fire floor and the floor

above the fire floor and provision at central monitoring point to

activate a general fire alarm.

(d) All fire alarm systems should be electrically supervised.

(e) A smoke detector, which may be a single or multiple station

alarm device should be installed in each living unit near the

sleeping areas on each floor and on each additional floor of the

living unit.

(f) All smoke detectors that control fire doors or elevators should

automatically initiate a general fire alarm when activated.

405-5.2 Fire Extinguishing System

(a) For all buildings four stories or more in height, an automatic

sprinkler protection system should be provided in

RD Instruction 1924-A

Guide 2

Page 4 - 13

all corridors, common spaces used by occupants such as dining rooms

and lounges, service and utility areas such as maintenance shops,

laundries, central boiler rooms and trash collection rooms.

(b) Sprinkler systems should be equipped with an automatic alarm

initiation device that will activate the general alarm system for

the building.

405-5.3 Equipment and Installation

(a) Fire alarm, smoke detectors and extinguishing equipment should

be listed by a nationally recognized testing laboratory that

maintains periodic inspection of production of listed equipment, and

whose listing states either that the equipment meets nationally

recognized standards or has been tested and found suitable for use

in a specified manner.

(b) Smoke detectors should comply with the following standards:

Underwriters Laboratories Standard No. 168 for photo-electric type

detectors and No. 167 for ionization type detectors.

electrical outlet box on or adjacent to the ceiling except those

which activate fire doors may be incorporated in the door closer.

(d) Installation of fire alarm and extinguishing systems should be

in accordance with NEPA No. 72A for fire alarm systems and NEPA No.

13 for sprinkler systems. Spacing of sprinkler heads in corridors

should be positioned 15 ft. on maximum centers.

405-6 STANDPIPES

All buildings five stories or 55 ft. or greater in height should be

equipped with wet standpipes of number, size and construction in

accordance with NFPA No. 14 "Standpipe and Hose Systems" for Class

I services.

406 MISCELLANEOUS

406-1 ANTENNA SYSTEMS

A master television antenna system should be provided for each

multi-family project which consists of twenty or more dwelling units

or with three or more floors, and for which cable service (CRTV) has

not been installed.

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RD Instruction 1924-A

Guide 2

Appendix A

Page A - 1

APPENDIX A

GLOSSARY OF HOUSING TERMS

Anchor bolts: Bolts to secure a wooden sill to concrete or masonry floor or

wall.

Areaway: An open subsurface space adjacent to a building used to admit limit

or air or as a means of access to a basement or cellar.

Astragal: A molding, attached to one of a pair of swinging doors against

which the other door strikes.

Attic ventilators: In houses, screened openings provided to ventilate an

attic space. They are located in the soffit area as inlet ventilators and in

the gable end or along the ridge as cutlet ventilators. They can also consist

of power-driven fans used as an exhaust system. (See also Louver.)

Balusters: Small spindles or members forming the main part of a railing for

stairway or balcony, fastened between a bottom and top rail.

Balustrade: A railing made up of balusters, top rails, and sometimes bottom

rail used on the edge of stairs, balconies, and porches.

Base shoe: Molding used next to the floor on interior baseboard. Sometimes

called a carpet strip.

Battern: Narrow strips of wood or metal used to cover joints.

Bearing wall: A wall that supports any vertical load in addition to its own

weight.

Bridging: Small wood or metal members that are inserted in a diagonal

position between the floor joists to act both as tension and compression

members for the purpose of bracing the joists and spreading the action of

loads.

British Thermal Unit: (B.T.U.) A unit of measurement of the quantity of heat

required to raise the temperature of 1 pound of water 1 degree F. The mean

B.T.U. is usually used, which is one-one hundred eightieth of the heat

required to raise the temperature of 1 pound of water from 32 degrees F. to

212 degrees F. at a constant atmospheric pressure of 14.69 p.s.i.

Built-up roof: A roofing composed of three to five layers of rag felt or jute

saturated with coal tar, pitch, or asphalt. The top is finished with crushed

slag or gravel. Generally used on flat or low-pitched roofs.

Cant strip: A wedge or triangular-shaped piece of lumber used at gable ends

under shingles or at the junction of the house and a flat deck under the

roofing.

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RD Instruction 1924-A

Guide 2

Appendix A

Page A - 2

Chase: A groove or shaft in a masonry wall provided for accommodation of

pipes, ducts, or conduits.

Conduit, electrical: A pipe, usually metal, in which wire is installed.

Corbel: To build out one or more courses of brick or stone from the face of a

wall.

Corner bead: A strip of formed galvanized iron, sometimes combined with a

strip of metal lath, placed on corners before plastering to reinforce them.

Also, a strip of wood finish three-quarters-round or angular placed over a

plastered corner for protection.

Corner boards: Used as trim for the external corners of a house or other

frame structure against which the ends of the siding are finished.

Corner braces: Diagonal braces let into studs to reinforce corners of

framestructures.

Cornice: A decorative element made up of molded members usually placed at or

near the top of an exterior or interior wall.

Cornice return: That portion of the cornice that returns on the gable end of

a house.

Counterflashing: A flashing usually used on chimneys at the roofline to cover

shingle flashing and to prevent moisture entry.

Cricket or saddle: A small drainage diveting roof structure of single or

double slope placed at the junction of larger surfaces that meet at an angle.

Crown molding: A molding used on cornice or wherever a large angle is to be

covered.

Dampproofing: A treatment of a surface or structure which retards the passage

of water. See Waterproofing.

Doorjamb: The surrounding case into which and out of which a door closes and

opens. It consists of two upright pieces, called jambs, and a head, fitted

together and rabbeted.

Dormer: An internal recess, the framing of which projects from a sloping

roof.

Drip cap: A molding placed on the exterior top side of a door or window to

cause water to drip behind the outside of the frame.

RD Instruction 1924-A

Guide 2

Appendix A

Page A - 3

Drywall finish: Interior covering material, such as gypsum board which is

applied in large sheets or panels.

Ducts: In a house, usually round or rectangular metal pipes for distributing

warm air from the heating plant to rooms, or air from a conditioning device.

Ducts are also made of composition materials.

Eaves: The margin or lower part of a roof projecting over the wall.

Expansion joint: A bituminous fiber strip used to separate blocks or units of

concrete to prevent cracking due to expansion as a result of temperature

changes.

Facia or fasia: A flat board, band, or face, used sometimes by itself but

usually in combination with moldings, often located at the outer face of the

cornice.

Fire stop: A solid, tight closure of a concealed space, placed to prevent the

spread of fire and smoke through such as space.

Flashing: Sheet metal or other impervious material used in roof and wall

construction to protect a building from seepage of water.

Flue lining: Fire clay or terra cotta pipe, round or square, usually made in

all of the ordinary flue sizes and in 2-foot lengths, used for the inner

lining of chimneys with the brick or masonry work around the outside.

Footing: The spreading course or courses at the base or bottom of a

foundation wall, pier, or column.

Foundation: The supporting portion of a structure below the first-floor

construction, or below grade, including the footings.

Framing, platform: A system of framing a building in which floor joists of

each story rest on the top plates of the story below or on the foundation sill

for the first story, and the bearing walls and partitions rest on the subfloor

of each story.

Furring: Strips of wood or metal applied to a wall or other side to even it,

to form an airspace, or to give the wall an appearance of greater thickness.

Gable: In house construction, the portion of the roof above the eave line of

a double-sloped roof.

Gable end: An end wall having a gable.

Girder: A large or principal beam used to support concentrated loads at

isolated points along its length.

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RD Instruction 1921-A

Guide 2

Appendix A

Page A - 4

Grade:

Finish: The top surface elevation of lawns, walks, drives, or other

improved surfaces after completion of construction or grading operations.

Natural: The elevation of the original or undisturbed natural surface

of the ground.

Subgrade: The elevation established to receive top surfacing or

finishing materials.

Grade beam: A reinforced concrete beam supporting the exterior wall

construction, in contact with the earth, but supported by piers.

Grout: Mortar made of such consistency by the addition of water that it will

just flow into the joints and cavities of the masonry work and fill them

solid.

Habitable room: A room designed and used for living, sleeping, eating or

cooking, or combination thereof. Bathrooms, toilet compartments, closets,

halls, storage rooms, laundry and utility spaces, basement recreation rooms

and similar areas are not considered habitable rooms.

Header: (a) A beam placed perpendicular to joists and to which joists are

nailed in framing for chimney, stairway, or other opening. (b) A wood lintel.

Hip: The external angle formed by the meeting of two sloping sides of a roof.

Hip roof: A roof that rises by inclined planes from all four sides of a

building.

Humidifier: A device designed to increase the humidity within a room or a

house by means of the discharge of water vapor. They may consist of

individual room-size units or larger units attached to the heating plant to

condition the entire house.

Jack rafter: A rafter that spans the distance from the wall-plate to a hip,

or from a valley to a ridge.

Jamb: The sidepost or lining of a doorway, window, or other opening.

Joists: A series of floor, roof, or ceiling framing members spaced not more

than 30 inches o.c. Members supporting roofs having slopes over 3 in 12 are

not defined as roof joists. See Rafter.

Kiln dried lumber: Lumber that has been kiln dried often to a moisture

content of 6 to 12 percent. Common varieties of softwood lumber, such as

framing lumber are dried to a somewhat higher moisture content.

RD Instruction 1924-A

Guide 2

Appendix A

Page A - 5

Ledger strip or nailer: A strip of lumber nailed along the bottom of the side

of a girder on which joists rest.

Lintel: A horizontal structural member that supports the load over an opening

such as a door or window.

Loads:

Living unit: A residential unit providing complete, independent living

facilities for one family including permanent provisions for living, sleeping,

eating, cooking and sanitation.

Concentrated: A load concentrated upon a specified small area of a

floor, roof, wall or other member.

Dead: The weight of all permanent construction in a building.

Design: Total load which a structure or member is designed to sustain

safely without exceeding specified deformation.

Live: The weight of all moving and variable loads that may be placed

on or in a building such as snow, wind, occupancy, etc.

Uniform: An average load applied uniformly over a floor, roof or wall

or along a beam or girder.

Mastic: A thick, pasty sealant or adhesive.

Metal lath: Sheets of metal that are slit and drawn out to form openings on

which plaster is spread.

Millwork: Generally all building materials made of finished wood and

manufactured in millwork plants and planing mills are included under the term

"millwork." It includes such items as inside and outside doors, window and

doorframes, blinds, porchwork, mantels, panelwork, stairways, moldings, and

interior trim. It does not include flooring, ceiling, or siding.

Miter: The joining of two pieces at an angle that bisects the angle of

junction.

Mortise: A slot cut into a board, plank, or timber, usually edgewise, to

receive tenon of another board, plank, or timber to form a joint.

Molding: Material, usually patterned strips, used to provide ornamental

variation of outline or contour, whether projections or cavities, such as

cornices, bases, window and door jambs, and heads.

Mullion: A slender bar of pier forming a division between panels or units of

windows, screens, or similar frames.

Muntin: The members dividing the glass or openings of sash, doors, and the

like.

Newel: A post to which the end of a stair railing or balustrade is fastened.

Also, any post to which a railing or balustrade is fastened.

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RD Instruction 1924-A

Guide 2

Appendix A

Page A - 6

Nosing: The projecting edge of a molding or drip. Usually applied to the

projecting molding on the edge of a stair tread.

On Center: The measurement of spacing for studs, rafters, joints, and the

like in a building from center of one member to the center of the next member.

Outrigger: An extension of a rafter beyond the wall line. Usually a smaller

member nailed to a larger rafter to form a cornice or roof overhang.

Paper:

Building: A general term for papers, felts, and similar sheet

materials used in buildings without reference to their properties or

uses.

Sheathing: A building material, generally paper or felt used in wall

and roof construction as a protection against the passage of air and

sometimes moisture.

Penny: As applied to nails it originally indicated the price per hundred.

The term now serves as a measure of nail length and is abbreviated by the

letter "d".

Perm: The unit of measurement of the water vapor permeance of a material.

Value of one perm is equal to one grain of water vapor per square foot per

hour Per inch of mercury vapor pressure difference.

Pier: A masonry or concrete column supporting foundations or the floor

structure in basementless spaces. Pier may be freestanding or bonded at its

sides to other masonry or concrete.

Pilaster: A pier forming part of a masonry or concrete wall partially

projecting therefrom and bonded thereto.

Pitch: The incline or rise of a roof. Pitch is expressed in inches of rise

per foot of run, or by the ratio of the rise to the span.

Plates: Horizontal wood member which provide bearing and anchorage for wall,

ceiling, and roof framing.

Sillplate: Plate on top of foundation wall which supports floor

framing.

Wall plate: Plate at top or bottom of wall or partition framing.

Further defined as topplate, at top, and soleplate, at bottom.

Rafter or joistplate: Plate at top of masonry or concrete wall

supporting rafter or roof joist and ceiling framing.

RD Instruction 1924-A

Guide 2

Appendix A

Page A - 7

Plenum: An air compartment or chamber to which one or more ducts are

connected and which forms part of an air distribution system. Crawl space may

be used as a plenum without ductwork when properly constructed.

Plinth: The square block at the base of a column or pedestal.

Plumb: Perpendicular, i.e., standing according to a plumb line as the post of

a house or wall is plumb.

p.s.i.: Abbreviation for pounds per square inch. The term is used to

indicate the strength of a body. In a wood beam, joist, or rafter, it

represents the load it will sustain per square inch of cross-sectional area.

Primer: The first coat of paint in a paint job that consists of two or more

coats; also the paint used for such as first coat.

Purlin: An intermediate supporting member at right angles to rafter or truss

framing.

Quarter round: A molding that presents a profile of a quarter circle.

Rabbet: A rectangular longitudinal groove cut in the corner of a board or

other piece of material.

Radiant heating: A method of heating usually consisting of coils or pipes

placed in the floor, wall, or ceiling.

Rafters: A series of roof framing members spaced not more than 30 inches o.c.

in roofs having slopes over 3 in 12. Members supporting roofs having 3 in 12

or less are defined as roof joists.

Rafter, hip: A rafter that forms the intersection of an external roof angle.

Rafter, jack: A rafter that spans the distance from a wall-plate to a hip or

from a valley or ridge.

Rafter, valley: A rafter that forms the intersection of an internal roof

angle.

Rake: The trim members that run parallel to the roof slope and from the

finish between wall and roof.

Ribbon: A narrow board let into the studding to add support to joists.

Ridge: The horizontal line at the junction of the top edges of two sloping

roof surfaces. The rafters at both slopes are nailed at the ridge.

Ridge board: The board placed on the edge of the ridge of the roof to support

the upper ends of the rafters.

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RD Instruction 1924-A

Guide 2

Appendix A

Page A - 8

Rise: The height of a roof rising in horizontal distance (run) from the

outside face of a wall supporting the rafters or trusses to the ridge of the

roof. In stairs, the perpendicular height of a step or flight of steps.

Riser: Each of the vertical boards closing the spaces between the treads of

stairways.

Run: In reference to roofs, the horizontal distance from the face of a wall

to the ridge of the roof. Referring to stairways, the net width of a step;

also the horizontal distance covered by a flight of steps.

Saddle: Two sloping surfaces meeting in a horizontal ridge used between the

back side of a chimney, or other vertical surface, and a sloping roof.

Scratch coat: The first coat of plaster, which is scratched to form a bond

for the second coat.

Screeds: Strips of plaster of the desired coat thickness laid on a surface to

serve as guides for plastering the intervals between them. Also the

intermediate leveling strips in concrete slabs.

Scribing: Fitting woodwork to an irregular surface.

Sealer: A finishing material, either clear or pigmented, that is usually

applied directly over uncoated wood for the purpose of sealing the surface.

Siding: The finish covering of the outside wall of a frame building whether

made of weatherboards, vertical boards with battens, shingles, plywood, or

other material.

Siding, level (lapsiding): Used as the finish siding on the exterior of a

house or other structure. It is usually manufactured by resawing dry square

surfaced boards diagonally to produce two wedge-shaped pieces. These pieces

commonly run from three-sixteenths inch thick on the thin edge to one-half to

three quarters inch thick on the other edge depending on the width of the

siding.

Sill: The lowest member of the frame of a structure, resting on the

foundation and supporting the uprights of the frame. The member forming the

lower side of an opening, as a doorsill, windowsill, etc.

Soffit: The underside of the members of a building, such as staircases,

cornices, beams, and arches, relatively minor in area as compared with

ceilings.

Soil stack: A general term for the vertical main of a system of soil, waste,

or vent piping.

Sole or soleplate: A member on which wall and partition studs rest.

RD Instruction 1924-A

Guide 2

Appendix A

Page A - 9

Span: The distance between structural supports such as walls, columns, piers,

beams, girders, and trusses

Splashblock: A small masonry block laid with the top close to the ground

surface to receive roof drainage and to carry it away from the building.

Square: A unit of measure - 100 square feet - usually applied to roofing

material. Sidewall coverings are often packed to cover 100 square feet and

are sold on that basis.

Stool: The flat, narrow shelf forming the top member of the interior trim at

the bottom of a window.

String, stringer: A timber or other support for cross members. In stairs,

the support on which the stair treads rest; also stringboard.

Stucco: Most commonly refers to an outside plaster made with Portland cement

as its base.

Stud: One of a series of slender wood or metal vertical structural members

placed as supporting elements in walls and partitions. (Plural: Studs or

studding.)

Subfloor: Boards or plywood placed on joists over which a finish floor is to

be laid.

Suspended ceiling: A ceiling system supported by hanging it from the overhead

structural framing.

Toenailing: To drive a nail at a slant with the initial surface in order to

permit it to penetrate into a second member.

Trimmer: A beam or joist to which a header is nailed in framing for a

chimney, stairway, or other opening.

Threshold: A strip of wood or metal beveled on each edge and used above the

finish floor under outside doors.

Tread: The horizontal board in a stairway on which the foot is placed.

Trim: The finish materials in a building, such as moldings, applied around

openings (window trim, door trim) or at the floor and ceiling of rooms

(baseboard, cornice, picture molding.)

Truss: A structural framework composed of a series of members so arranged and

fastened together that external loads applied at the joints will cause only

direct stress in the members.

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Guide 2

Appendix A

Page A - 10

Trussed rafter: A truss where the chord members are also serving as rafters

and ceiling joists and are subject to bending stress in addition to direct

stress.

Under layment: A material placed under finish coverings, such as flooring, or

shingles, to provide a smooth, even surface for applying the finish.

Vapor barrier: Material used to retard the flow of vapor or moisture into

walls and thus to prevent condensation within them. There are two types of

vapor barriers, the membrane that comes in rolls and is applied as a unit in

the wall or ceiling construction, and the paint type, which is applied with a

brush. The vapor barrier must be a part of the warm side of the wall.

Walls:

Bearing wall: A wall which supports any vertical load in addition to

its own weight.

Cavity wall: A masonry or concrete wall consisting of two wythes

arranged to provide an airspace within the wall in which the inner

and outer wythes of the wall are tied together with metal ties.

Faced wall: A wall in which the masonry facing and the backing are

so bonded as to exert a common reaction under load.

Fire wall: A wall with qualities of fire resistance and structural

stability which subdivides a building into fire areas and which

resists the spread of fire.

Foundation wall: A wall, below or partly below grade, providing

support for the exterior or other structural parts of a building.

Masonry wall: A bearing or nonbearing wall of hollow or solid

masonry units.

Nonbearing wall: A wall which supports no vertical load other than

its own weight.

Veneered wall: A wall with a masonry face which is attached to but

not bound to the body of the wall.

Weatherstrip: Narrow or jamb-width sections of thin metal or other material

to prevent infiltration of air and moisture around windows and doors.

Compression weather stripping prevents air infiltration, provides tension, and

acts as a counter balance.

RD Instruction 1924-A

Guide 2

Appendix B

Page B - 1

APPENDIX B

ABBREVIATIONS

AA Aluminum Association

AAMA Architectural Aluminum Manufacturers Associations

ACI American Concrete Institute

AHA American Hardboard Association

AIA American Institute of Architects

ANSI American National Standards Institute

ARMA Asphalt Roofing Manufacturers Association

ASHRAE American Society of Heating, Refrigerating and Air

Conditioning Engineers

ASTM American Society for Testing and Materials

AWS American Welding Society

BOCA Building Officials and Code Administrators

Btuh British thermal units per hour

CABO Council of American Building Officials

cfm Cubic feet per minute

CFR Code of Federal Regulations

CPSC Consumer Product Safety Commission

CRI Carpet and Rug Institute

CS Commercial Standard

EO Executive Order

ext. Exterior

F Fahrenheit (degrees)

FGMA Flat Glass Marketing Association

FHDA Fir and Hemlock Door Association

FS Federal Specification

ft. Feet

gals. Gallons

Hr. Hour

in. Inches

int. Interior

lb. Pound

max. Maximum

MIMA Mineral Insulation Manufacturers Association

min. Minimum

MR Materials Release

MS Manual Series

NAHB-RF National Association of Home Builders--Research Foundation

NAS National Academy of Sciences

NBS National Bureau of Standards

NCDC National Climatic Data Center

NFPA National Fire Protection Association

NOFMA-OFGR National Oak Flooring Manufacturers Association - Official

Flooring Grading Rules

NRCA National Roofing Contractors Association

NSDJA National Sash and Door Jobbers Association

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Guide 2

Appendix B

Page B - 2

NTMA National Terrazzo & Mosaic Association

NWMA National Woodwork Manufacturers Association

oz Ounces

PCI Prestressed Concrete Institute

PS Product Standard

PTI Post-Tensioning Institute

psf Pouds per square feet

PVC Polyvinyl chloride

RFCI Resilient Floor Covering Institute

SCACM Southern California Association of Cabinet Manufacturers

SGCC Safety Glazing Certification Council

sq Square

SI International Standard

t & g or Tongue and grove

T & G

TCA Tile Council of America

U Coefficient of thermal transmission

Btu/(hour) x (square foot) x (F inside - F outside)

UFAS Uniform Federal Accessibility Standards

UL Underwriters Laboratories, Inc.

UM Use of Materials Bulletin

WM Wood Moulding and Millwork Producers

WQA Water Quality Association (Formerly Water Conditioning

Foundation)

RD Instruction 1924-A

Guide 3

GUIDE 3

QUALITY AND PERFORMANCE CRITERIA

FOR

MODERATE REHABILITATION

(5-12-87) SPECIAL PN

RD Instruction 1924-A

Guide 3

FOREWORD

This Guide is designed to assist Rural Development personnel and potential

applicants in determining the feasibility and acceptability of existing multi-

family residential properties for moderate rehabilitation. The moderate

rehabilitation quality and performance criteria contained in this Guide are

significantly different from those Rural Development’s development standards

that apply to substantial rehabilitation. This Guide should be used in

conjunction with Rural Development's Design Guide and Manual of Acceptable

Practice (MAP). Although this Guide, the Design Guide, and the MAP are not

mandatory documents, the construction and development plans for each

moderately rehabilitated multi-family development should address the

liveability and marketability objectives contained in these documents.

Substantial deviation from these objectives will be evaluated by our appraisal

process and reflected in the present market value.

(5-12-87) SPECIAL PN

GENERAL TABLE OF CONTENTS

Chapter 1 - GENERAL USE

Chapter 2 - RESERVED

Chapter 3 - SITE AND COMMUNITY

Chapter 4 - BUILDING DESIGN

Chapter 5 - FIRE PROTECTION

Chapter 6 - CONSTRUCTION

Chapter 7 - EXTERIOR AND INTERIOR FINISHES

Chapter 8 - MECHANICAL EQUIPMENT

Appendix A - DEFINITIONS

RD Instruction 1924-A

Guide 3

Page

1-1

2-1

3-1

4-1

5-1

6-1

7-1

8-1

A-1

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Guide 3

TABLE OF CONTENTS

Page

Chapter 1 GENERAL USE 1-1

100 APPLICATION 1-1

101 GENERAL 1-1

COMPONENTS OF MULTI-FAMILY BUILDING REHABILITATION 1-2

102 GUIDE FORMAT 1-5

103 LOCAL CODES AND REGULATIONS 1-6

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Guide 3

Page 1-1

CHAPTER 1 GENERAL USE

100 APPLICATION

The criteria in this Guide apply to the moderate rehabilitation of

existing multi-family residential properties. The range of moderate

rehabilitation covered by this Guide is broad. In a general context this

Guide will aid in establishing the feasibility of a property considered for

moderate rehabilitation. It also provides information which is useful in

preliminary planning, evaluation and development work. Properties needing

substantial rehabilitation must meet the same Rural Development’s Development

Standards as new multi-family housing.

101 GENERAL

These guidelines provide minimum performance requirements and

acceptability criteria for the moderate rehabilitation of dwellings to be

financed by the Rural Development. The guidelines are intended to serve as an

aid to providing marketable, decent, functional, safe, sanitary and attractive

housing through the moderate rehabilitation of existing dwelling units. In

all cases the building or project to be rehabilitated shall be structurally

sound. The applicant shall have a structural analysis of the existing

building made to determine the adequacy of all structural systems for the

proposed rehabilitation. Rural Development differentiates between moderate

rehabilitation, maintenance and repair and substantial rehabilitation as

follows:

Maintenance and Repair - Work involved in the selective replacement and

general maintenance and repair of certain materials, appliances or

components of an existing residential building.

Moderate Rehabilitation - All work directly involved in the

rearrangement of interior space, the replacement of finish materials or

components of the electrical, plumbing, heating or conveyance systems of

an existing multi-family residential building. Work and improvements

are considered to be more than routine maintenance and repair.

Substantial Rehabilitation - All work directly involved in the

rearrangement of interior space that involves alteration of load bearing

partitions and columns; the replacement of the electrical, plumbing,

heating or coveyance systems: and the addition to and/or major

conversion of existing multi-family residential buildings or other

building structures.

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The components of multi-family building rehabilitation necessary and

generally considered by Rural Development to be either maintenance

and repair, moderate rehabilitation or substantial rehabilitation

include but are not limited to those in the following chart.

COMPONENTS OF MULTI-FAMILY BUILDING REHABILITATION

Maintenance Moderate Substantial

COMPONENTS____________________And Repair______Rehab._________Rehab.___

Appliance replacement or repair o

Air conditioning o

Cabinet replacement or repair o

Carpeting o

Caulking o

Clothes closets or shelving

improvements o

Door repair o

Drywall repair o

Gutters and downspouts o

Hardware replacement or repair o

Kitchen cabinet improvements o

Lath and plaster repair o

Lighting fixture replacement or

repair o

Mail boxes o

Painting o

Paneling o

Partition repair o

Roof repair o

Signage o

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COMPONENTS OF MULTI-FAMILY BUILDING REHABILITATION

Maintenance Moderate Substantial

COMPONENTS____________________And Repair______Rehab._________Rehab.___

Stair repair

Wallpapering

Window shades and curtains

Ceiling framing

Door replacement

Drywall replacement

Elevator components replacement

Exterior entrance redesign, relocation

Finish flooring materials

Flashing

Furnace replacement

Insulation

Lath and plaster replacement

New shingles or roof replacement

Partition (non bearing) replacement,

or relocation

Plumbing fixture replacement

Pointing (Masonry)

Porch and step alteration cr replacement

Stair replacement or relocation

Storm windows and weatherstripping

Trim - exterior and interior

Window replacement o

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COMPONENTS OF MULTI-FAMILY BUILDING REHABILITATION

Maintenance Moderate Substantial

COMPONENTS____________________And Repair______Rehab._________Rehab.___

- New or alteration to the -

Electrical wiring system

Gas pipes

Mechanical system

Soil pipes

Vent pipes

Waste pipes

Water supply system

- Alteration or replacement of

structural components-

Beams o

Chimneys and vents

Columns and post

Electrical service - replacement or new

Elevator replacement

Exterior walls

Floor construction o

Footing

Foundation wall

Foundation waterproofing

Interior walls

Moderate rehabilitation and repair shall not be limited to building changes

for cosmetic or convenience purposes. In all cases moderate rehabilitation

shall involve a minimum of three (3) components of building rehabilitation

listed as moderate. Unless combined with other improvements in a project that

are considered to be moderate or substantial rehabilitation the items

identified as maintenance and repair are considered to be cosmetic and

convenience changes.

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When a project consists of both moderate and substantial rehabilitation

components, those substantial rehabilitation components shall be in accordance

with Rural Development's development standards and local codes and regulation

requirements. Where the majority of project components of building

rehabilitation are considered substantial the project shall be considered in

the substantial rehabilitation category.

Those site components of rehabilitation such as landscaping, grading,

drainage, fencing, parking areas, recreation areas, water and waste disposal

systems, etc., whether considered either maintenance and repair, moderate

rehabilitation or substantial rehabilitation shall be in accordance with Rural

Development's development standards for site development work; all local codes

and regulation requirements, and sound engineering and architectural

practices.

The site requirements contained in Section 4 of the Uniform Federal

Accessibility Standards (UFAS), the provisions of Sections 4.1.5, Accessible

Building; Additions and 4.1.6 Accessible Building; Alterations and all other

appropriate UFAS requirements shall apply to all moderate rehabilitation.

Where Rural Development Instructions are more stringent than UFAS they shall

apply.

Any alteration of a structure listed or eligible for listing on the

National Register of Historic Places may be considered either moderate or

substantial rehabilitation. However, it shall conform first to the Secretary

of the Interior's Standards for Rehabilitation are Guidelines for

Rehabilitating Historic Buildings and then to Rural Development's

requirements. In cases where the Secretary of the Interior's standards cannot

be met, rehabilitation will conform to the agreed upon approaches, treatments

and techniques resulting from the consultation process between Rural

Development, the borrower, the State Historic Preservation Officer are the

Advisory Council of Historic Preservation.

102 GUIDE FORMAT

The format of this Guide is to first list a major component of moderate

rehabilitation (the chapter title); second, state the performance requirement

that should be met for that component: and third provide acceptable criteria

for meeting the performance requirement. Also, by identifying acceptable

criteria for various components of moderate rehabilitation, e.g., site and

community, building design, fire safety, construction, mechanical equipment

and exterior and interior finishes, the Guide achieves the major objectives of

Rural Development, or ensuring decent, safe, and sanitary housing and related

facilities with adequate liveability.

Appendix A, Definitions, provide a basis for understanding the meaning

of the phrases and terms used in this Guide.

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103 LOCAL CODES AND REGULATIONS

These guidelines, while setting forth basic objectives and provisions

specifically related to moderate rehabilitation, shall not be construed as

relieving the property owner, project sponsor or their builder of his or her

responsibility for compliance with State are local ordinances, codes, and

regulations including established requirements of a health officer or other

authority having jurisdiction.

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Chapter 2 RESERVED

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Chapter 3 SITE AND COMMUNITY Page

300 PERFORMANCE REQUIREMENT 3-1

301 ACCEPTABILITY CRITERIA 3-1

301-1 SITE CONDITIONS 3-1

301-2 OPEN SPACE 3-1

301-3 OUTDOOR ENVIRONMENT 3-1

301-4 SITE IMPROVEMENTS 3-1

301-5 ACCESS TO THE BUILDING 3-2

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Chapter 3 SITE AND COMMUNITY

300 PERFORMANCE REQUIREMENT

The site location and facilities shall create a safe, functional,

accessible, healthful and attractive living environment for

residents.

301 ACCEPTABILITY CRITERIA

301-1 SITE CONDITIONS

301-1.1 The Property should not be subject to hazards such as

objectionable smoke, noxious odors, unusual noise, the probability

of flooding, mud slides, or subsidence.

301-2 OPEN SPACE

Every residential building should have sufficient open space to

permit convenient access for maintenance, fire protection, adequate

light and ventilation of habitable rooms and reasonable indoor

privacy.

301-3 OUTDOOR ENVIRONMENT

Adequate landscaped open space should be available for active and

passive recreation. Adequate night lighting for safe use of

streets, parking areas, walks and steps should be available or

provided.

301-4 SITE IMPROVEMENTS

The improvement of each property should provide for (a) the

immediate diversion of water away from buildings and disposal from

the site, (b) the prevention of soil saturation detrimental to

structures and site use (c) appropriately paved walks, parking

areas, driveways, exterior steps and landscaping where needed, (d)

facilities for trash collection and removal and (e) reasonable

amount of recreation equipment (passive and/or active) to meet the

tenants needs.

301-5 ACCESS TO THE BUILDING

Walks and steps should be provided for all weather access to the

building and constructed so as to provide safety, reasonable

durability and economy of maintenance.

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301-5.1 A primary entrance readily accessible to the physically

handicapped, should be provided to any residential structure

intended for occupancy or use by the elderly or physically

handicapped.

TABLE OF CONTENTS

Chapter 4 BUILDING DESIGN

400 PERFORMANCE REQUIREMENTS

401 ACCEPTABILITY CRITERIA

401-1 SPACE

401-2 LIGHT AND VENTILATION

401-3 DOORS AND ACCESS OPENINGS

401-4 STAIRWAYS

401-5 CORRIDORS AND HALLWAYS

401-6 ELEVATORS

401-7 TRASH AND GARBAGE DISPOSAL

401-8 NOISE CONTROL

401-9 INDOOR AIR QUALITY

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4-2

4-3

4-4

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Chapter 4 BUILDING DESIGN

400 PERFORMANCE REQUIREMENT

Each living unit should provide for a healthful environment with

complete living facilities arranged and equipped for suitable and

comfortable living.

401 ACCEPTABILITY CRITERIA

401-1 SPACE

401-1.1 General

(a) Provide each living unit with space necessary for suitable

living, sleeping, cooking and dining accommodations, and storage,

all sanitary facilities. This space should be of such size and

dimensions so as to permit placement of furniture and essential

equipment.

(b) Habitable rooms in basements or below grade intended for year-

round occupancy should comply with building requirements in the same

manner as rooms above grade.

unit or, central laundry facilities must be readily accessible to

the tenants.

401-1.2 Privacy and Arrangement

(a) A degree of privacy should be provided commensurate with

suitable living conditions by means of the proper location of

exterior openings to exterior conditions, and by the interior

arrangement of rooms.

(b) Access to all parts of a living unit should be possible without

passing through a public hall.

be installed in a bathroom which will afford privacy to the

occupant.

(d) A bathroom should not be used as a passageway to a habitable

room, hall, basement or to the exterior.

(e) A bathroom should not be separated from all bedrooms of a

living unit by locating it a full story above or below the bedrooms.

(f) A bedroom should not be used as the only means of access to

another bedroom or habitable room.

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401-1.3 Kitchen Facilities

Each living unit should have a specific kitchen space, which

contains a sink with counter work space and has hot and cold running

water, adequate space for installing cooking and refrigeration

equipment, and for storage.

401-1.4 Bath Facilities

Complete bathing and sanitary facilities should be provided within

each living unit; they should consist of a watercloset, a tub or

shower, and a lavatory. Provide an adequate supply of hot water to

the tub or shower stall and lavatory, and cold water to all

fixtures. Arrangement of fixtures should provide for the

comfortable use of each fixture and permit at least a 90 degree door

swing. A mirror, medicine cabinet and towel bars should be provided

in a convenient location.

401.1.5 Closets and General Storage

Clothes closet space should be provided within bedrooms or

conveniently located nearby. In addition, each living unit should

have a suitable space within the unit or a locked space elsewhere

within the building or development for general storage.

401-1.6 Community Rooms

In housing for the elderly, community, social and recreational rooms

with adjacent toilet facilities should be provided.

401-2 LIGHT AND VENTILATION

401-2.1 Provide a healthful environment and an acceptable degree of

comfort within all rooms and hallways of the dwelling by having

sufficient light and ventilation.

401-2.2 Ventilation of Structural Spaces

Natural ventilation of spaces such as attics and enclosed

basementless spaces should be provided by openings of sufficient

sizes to overcome dampness and minimize the effect of conditions

conducive to decay and deterioration of the structure, and to

prevent excessive heat in attics. Exterior ventilation openings

should be effectively screened where needed.

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401-3 DOORS AND ACCESS OPENINGS

Provide openings adequate in size to admit furniture and equipment

to all spaces are to permit inspection for repair and maintenance.

401-3.1 Exterior doors should have secure locks.

401-3.2 A primary entrance door should be at least 3'-0" wide.

401-3.3 Provide a door for each opening to bedroom, closet, bathroom or

toilet compartment; with a locking device on bath and toilet

compartment doors.

401-4 STAIRWAYS

401-4.1 All stairways shall provide safety of ascent and descent, and

stairs and landings shall be arranged to permit adequate headroom

and space for the passage of furniture and equipment.

401-4.2 Existing stairways in sound condition to remain or to be

repaired shall not be to any serious extent below minimum standards

of good practice as to rise and run of steps, headroom,

obstructions, stair width, landings, or railing protection.

401-5 CORRIDORS AND HALLWAYS

401-5.1 Corridors and hallways shall provide adequate, safe and

unobstructed circulation from living units or other spaces to

various means of exit. Corridors are hallways above the main floor

should have more than one exit.

401-5.2 In housing for the elderly handrails shall be provided on at

least one side of all tenant corridors (except within living units).

401-6 ELEVATORS

Where provided, an elevator shall furnish convenient and safe ascent

and descent to all living units and service areas. The character

and type of elevator service and equipment should be appropriate to

the building being rehabilitated and to its occupants.

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401-7 TRASH AND GARBAGE DISPOSAL

Every dwelling and multi-family building shall be supplied with a

convenient means of disposal or removal of trash and garbage.

401-8 NOISE CONTROL

Acoustical control should be provided to attain an acceptable are

livable environment. Where possible sound reduction insulation

and/or other means of reducing noise should be installed between

living units and between living units and public spaces.

401-9 INDOOR AIR QUALITY

Provide a healthful environment that is free of indoor air

pollutants such as, formaldehyde, radon, asbestos fibers, combustion

gases and particles are any other pollutant known to affect one's

health. If a pollutant(s) exist measured concentrations should be

compared with existing standards, typical concentrations in homes,

and levels known to cause health problems to determine if the

structure being moderately rehabilitated will have an indoor air

quality problem.

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Guide 3

TABLE OF CONTENTS

Page

Chapter 5 FIRE PROTECTION 5-1

500 PERFORMANCE REQUIREMENT 5-1

501 ACCEPTABILITY CRITERIA 5-1

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Chapter 5 FIRE PROTECTION

500 PERFORMANCE REQUIREMENTS

Provide a high degree of safety to life and property preservation,

by the separation of living units and the use of materials which

will retard the spread of fire and prevent the passage of flame,

smoke and hot gases through open or concealed spaces within the

building. An additional requirement is to provide means of egress

which will permit persons to leave the building with safety in an

emergency, and permit access for fire control personnel.

501 ACCEPTABILITY CRITERIA

Life safety provisions including height and area limitations,

interior finishes, fire alarm and extinguishing systems and

standpipe should be in substantial conformance with the applicable

recognized code for the local community. When a building cannot be

rehabilitated in substantial conformance with an applicable code,

alternate methods of protection acceptable to local authorities

should be provided.

501.1 A smoke detector shall be installed in each living unit.

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TABLE OF CONTENTS

Chapter 6 CONSTRUCTION

600 PERFORMANCE REQUIREMENTS

601 ACCEPTABILITY CRITERIA

601-1 STRUCTURAL SOUNDNESS

601-2 EXTERIOR WALLS

601-3 PARTITIONS, COLUMNS AND POST

601-3 FLOOR CONSTRUCTION

601-5 CHIMNEYS AND VENTS

601-6 PROTECTION FROM RODENTS, TERMITES OR

OTHER INFESTATION

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Chapter 6 CONSTRUCTION

defects.

600 PERFORMANCE REQUIREMENTS

The construction of the building should provide: (a) sufficient

structural strength and rigidity, (b) adequate protection from

corrosion, decay, insects and other destructive forces, (c)

necessary resistance to the elements, (d) reasonable durability and

economy of maintenance, and (e) acceptable quality of workmanship.

All structural components of the building should be in sound

condition and considered serviceable for the expected useful life of

the rehabilitated building. Sagging or out of plumb floors,

chimneys, partitions or stairs, and bulging of exterior walls should

be restored as near as practical to an acceptable level or plumb

position and supported or braced so as to prevent a reocurrence of

these conditions. Stair railings should be rigid. Individual

structural members in a deteriorated condition should be replaced.

In areas subject to earthquake damage (zones 3 & 4) are wind damage

(70 mph or higher) assurance of adequate protection should be

provided that is no less than current code requirements.

601 ACCEPTABILITY CRITERIA

601-1 THERMAL PROTECTION

Comply with RD Instruction 1924-A, Exhibit D, "Thermal Performance

Construction Standards" for existing building.

601-2 EXTERIOR WALLS

601-2.1 All exterior walls should provide safe and adequate support for

all loads upon them, and prevent the entrance of water or excessive

moisture. Serious defects should be repaired and cracks effectively

sealed.

601-2.2 Basement and foundation walls should prevent the entrance of

water or moisture into a basement or crawl space area. Cracks in

the walls should be effectively sealed, and loose or defective

mortar joints should be repaired. Where necessary, the interior or

exterior face of the walls should be dampproofed or water proofed as

appropriate.

601-3 PARTITIONS, COLUMNS AND POST

Partitions and other vertical supports which are to be continued in

use should be free of splits, excessive bean, buckling or other

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601-4 FLOOR CONSTRUCTION

All floor construction should provide safe and adequate support for

all existing or probable loads and should be reasonably free of

objectionable vibration. A suitable surface for finish flooring

should exist or be provided.

601-5 CHIMNEYS, AND VENTS

Chimneys and vents should be structurally safe, durable, smoketight

and capable of withstanding the action of flue gases. Factory-built

chimneys shall be labeled by Underwriters' Laboratories, Inc. and

installed in accordance with the listing.

601-6 PROTECTION FROM RODENTS, TERMITES OR OTHER INFESTATION

Each building and all exterior related facilities on the site should

be effectively protected against rodents, termites or other vermin

infestation.

601-6.1 Inspection and Correction

A careful inspection by qualified persons or licensed firm should be

made of each building and accessory structure on each site for

evidence of actual or potential infestation. Existing buildings

having defects shall be corrected by appropriate preventive measures

within the definition of moderate rehabilitation.

TABLE OF CONTENTS

Chapter 7 EXTERIOR AND INTERIOR FINISHES

700 PERFORMANCE REQUIREMENT

701 ACCEPTABILITY CRITERIA

701-1 EXTERIOR FINISHES

701-2 GUTTERS AND DOWNSPOUTS

701-3 FLASHING

701-4 WINDOWS, DOORS AND OTHER OPENINGS

701-5 INTERIOR WALL AND CEILING FINISHES

701-6 FINISH FLOORS

701-7 PAINTING AND DECORATION

701-8 LEAD-BASED PAINT

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Chapter 7 EXTERIOR AND INTERIOR FINISHES

700 PERFORMANCE REQUIREMENT

The buildings exterior are interior finishes should: A) prevent the

entrance or penetration of moisture, b) protect from damage by

decay, corrosion, insects and other destructive elements and c)

provide reasonable durability and economy of maintenance.

701 ACCEPTABILITY CRITERIA

701-1 EXTERIOR FINISHES

701-1.1 Wall Covering

Repairs or replacement should be made to defective exterior wall

finish materials. Exterior walls should be free of holes, cracks

and broken or rotted finish materials.

701-1.2 Roof Covering

All roofs should have a suitable, watertight and reasonably durable

covering free of curling, holes, cracks, excessively worn surfaces

or other defects.

701-2 GUTTERS AND DOWNSPOUTS

Each dwelling should have a controlled method of disposal of water

from roofs where necessary to divert water away from building and

entry, to prevent damage to the property, and to avoid causing

unsightly staining of walls and windows where adequate roof

overhangs are not provided.

701-3 FLASHING

To prevent the entrance of water, all critical joints in exterior

roof and wall construction which are exposed or partly exposed

should be protected by sheet metal or other suitable flashing

material.

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701-4 WINDOWS, DOORS AND OTHER OPENINGS

701-4.1 Existing windows and doors, including their hardware should

operate satisfactorily and give evidence of continuing acceptable

service. Defective glass or locking mechanisms should be replaced

or corrected.

701-4.2 Screens should be provided for all windows, doors and other

openings except in regions where their use is not customary or

needed.

701-5 INTERIOR WALL AND CEILING FINISHES

701-5.1 All interior walls and ceilings should provide (a) a finish

surface without noticeable irregularities or cracking, (b) a

waterproof and hard surface in spaces subject to moisture, (c) a

suitable base for painting or other decoration and (d) reasonable

durability and economy of maintenance.

701-5.2 In housing for elderly, abrasive wall finishes such as a sand

finish should not be used.

701-6 FINISH FLOORS

Floors should be appropriate to the use of the space, in good

condition, and should provide reasonable ease of maintenance.

701-7 PAINTING AND DECORATION

Protective and decorative finish coating or surfacing should provide

(a) adequate resistance to weathering, (b) protection of finish

surfaces from moisture or corrosion, (c) an attractive appearance,

and (d) reasonable durability.

701-8 LEAD-BASED PAINT

Comply with RD Instruction 1924-A, Exhibit H, "Prohibition of Lead-

Based Paints," for interior and exterior surfaces or existing

buildings.

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Page

Chapter 8 MECHANICAL EQUIPMENT 8-1

800 8-1PERFORMANCE REQUIREMENTS

801 ACCEPTABILITY CRITERIA 8-1

801-2 HEATING 8-1

801-3 PLUMBING 8-1

801-4 ELECTRICAL 8-2

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Chapter 8 MECHANICAL EQUIPMENT

800 PERFORMANCE REQUIREMENT

Provide mechanical equipment for the building are its living units

that should meet the needs of the intended occupants and be of a

quality and condition which will assure: (a) safety of operation,

(b) adequate capacity for its internal use, (c) protection from

moisture, corrosion or other destructive elements, (d) reasonable

quietness or operation, and (e) reasonable durability and economy of

maintenance.

801 ACCEPTABILITY CRITERIA

801-1 GENERAL

801-1.1 All mechanical equipment should be installed so that maintenance

and replacement can be performed without the removal of other

equipment.

801-1.2 Existing mechanical equipment and system should be inspected for

faulty operation, and potential fire or other hazards. Needed

replacement, or repair should conform to code requirements.

801-2 HEATING

Heating facilities should be provided for each living unit and other

spaces that will: (1) assure interior comfort, (2) be safe and

convenient to operate, (3) be economical in performance, and (4) be

quiet in operation and free from objectionable drafts.

801-3 PLUMBING

801-3.1 The plumbing system for each building should provide

satisfactory water supply, drainage, venting and operation of

fixtures.

801-3.2 Condition of existing plumbing systems including building sewers

should operate free of fouling and clogging, and not have cross

connections which permit contamination of water supply, back

siphonage between fixtures or air hammer.

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801-4 ELECTRICAL

801-4.1 All habitable rooms are other appropriate spaces requiring

electrical service should be provided with a system of wiring,

wiring devices and equipment to safely supply electrical energy for

power illumination, resident security, appliances, are other

electrical equipment.

801-4.2 Existing wiring and equipment should not be a potential source

for fire are electrical hazards as determined by the proper

authority. Existing facilities that are inadequate to meet

anticipated demands should be appropriately corrected.

801-4.3 The appropriate provisions of the local code or the National

Electrical Code should be used for design and layout of raw

electrical work. Completed work must be acceptable to local

authority.

RD Instruction 1924-A

Guide 3

Appendix A

Page A-1

APPENDIX A - DEFINITIONS

The definitions given in this section are included to provide a basis for

understanding the meaning of the terms and phrases used in this Guide. None

are intended to nullify the provisions of any local code but are furnished to

provide maximum understanding of these guidelines.

Addition: Any construction which increases the size of a building or adds to

the building.

Alteration: Construction which may change the floor plan, structural parts,

mechanical equipment or location of openings but which does not increase the

size of the building.

Attic: Accessible space between top of uppermost ceiling and underside of the

roof. Inaccessible spaces are considered structural cavities.

Dampproofing: A treatment of a surface or structure which retards the passage

of water.

Dwelling: A building designed or used as the living quarters for one or more

families.

Detached: A dwelling which is completely surrounded by permanent open

spaces.

Semi-detached: A dwelling, one side wall of which is a party or lot-

line wall.

Row: A dwelling, the walls on two sides of which are party or lot-line

walls.

Multi-family: A building containing three or more living units for

families living independently of each other.

Flashing: Sheet metal or other impervious materials used in roof and wall

construction to protect a building from the entry of water.

Foundation: Construction, below or partly below grade, which provides support

for exterior walls or other structural parts of the building.

Living Unit: A dwelling or portion thereof providing complete living

facilities for one family, including permanent provisions for living,

sleeping, eating, cooking and sanitation.

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Page A-2

New Construction: (a) Proposed construction or other new structures erected

on cleared or vacant land: or (b) New additions to an existing building which

enlarge the floor area or height of the building.

Rehabilitation: The restoration of one or more residential properties which

overcomes deterioration and obsolescences to provide structures or properties

suitable for continued residential use.

Rehabilitation Construction: Rehabilitation construction includes the

following categories:

a. The replacement of present elements of an existing building, such as

windows, stairs, walls, floors, foundation, roof, plumbing, wiring,

heating or other equipment.

b. Rearrangement of rooms by the relocation of partitions or by the

installation of new bathroom and kitchens.

c. The general replacement of the interior of a building. This

replacement may or may not include changes to structural elements such

as floor systems, columns or load bearing interior or exterior walls.

Repair: To restore to a sound and acceptable state of operation,

serviceability or appearance. Repairs shall be expected to last approximately

as long as would the replacement by new items.

Replace: To remove an existing item or portion of a system, and to construct

or install a new item of similar or improved quality as the existing item when

new. Replacement will ordinarily take place where the item is not repairable

or where repair would not be economically feasible.

Shall: Indicates a requirement.

Should: Indicates minimum good practice but is not mandatory.

Substandard Building: Any building or portion thereof in which there exist

conditions serious enough to endanger the life, limb, health, property, safety

or welfare of the occupants or of the public, and does not provide decent,

safe and sanitary living conditions.

RD Instruction 1924-A

Guide 4

(INSTRUCTION SHEET ONLY - NOT TO BE INCLUDED AS A PART OF THE AGREEMENT FOR

ARCHITECTURAL SERVICES)

This Guide is provided for USDA Rural Development field personnel use to

assist the applicant in modifying the American Institute of Architects (AIA)

Document B141, 1997 Edition, Standard Form of Agreement Between Owner and

Architect with Standard Form of Architect’s Services, to achieve compliance

with Rural Development and Rural Housing Service (RHS) regulations and policy.

The agreement as modified by this Guide has application for RHS financially

assisted housing projects such as those administered under this subpart.

Guide 4 is referenced in § 1924.13(a).

The AIA Document B141, 1997 Edition has two parts: the Standard Form of

Agreement Between Owner and Architect with Standard Form of Architect’s

Services: Design and Contract Administration. A contract for architectural

services is not complete unless both parts of AIA Document B141 are included.

Both portions of the document have signature areas that must be signed by the

parties involved.

The need to witness the agreement as indicated on page 8 will depend upon

State and local requirements for validation of the document. Where

appropriate, a copy of the resolution authorizing the individual to act on

behalf of the firm or entity should be attached to the agreement.

Attachment

o0o

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Guide 4

Attachment 1

Page 1

ATTACHMENT TO AIA DOCUMENT B141-1997, Standard Form of Agreement Between Owner

and Architect With Standard Form of Architect’s Services

The provisions of this Attachment shall delete, modify and supplement the

provisions contained in the "Standard Form of Agreement Between Owner and

Architect With Standard Form of Architect’s Services,” AIA Document B141-1997

Edition. The provisions contained in this Attachment will supersede any

conflicting provisions of the AIA Document. The term "Agency,” as used in

this Attachment, shall mean the United States of America, acting through the

United States Department of Agriculture.

ARTICLE 1.2, RESPONSIBILITIES OF THE PARTIES

Add the following subparagraph to Paragraph 1.2.2:

1.2.2.8 Owner shall provide Agency design and construction document

regulations and guides to the Architect, upon request. The Owner

shall provide information on requirements and procedures of the

Agency.

ARTICLE 1.3, TERMS AND CONDITIONS

Delete the words "unless the parties mutually agree otherwise" and

substitute the words "if the parties mutually agree" in the first

sentence of subparagraph 1.3.5.2.

Delete subparagraph 1.3.7.1 and substitute the following:

1.3.7.1 This Agreement shall be governed by the laws of the Project

location.

Delete subparagraph 1.3.7.4.

Add the following subparagraphs:

1.3.7.10: This Agreement and any amendments to this Agreement shall

not be in full force and effect until concurred with in writing by

the Agency State Director or the State Director's delegate. Such

concurrence shall be evidenced by the signature of such a

representative of the Agency in the space provided at the end of

this Agreement.

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Guide 4

Attachment 1

Page 2

1.3.7.11 If applicable, the Architect shall comply with section 319

of Public Law 101-121, as supplemented by the Department of

Agriculture regulations (7 C.F.R. part 3018). This statute pertains

to restrictions on lobbying and applies to the recipients of

contracts and subcontracts that exceed $100,000 at any tier under a

Federal loan that exceeds $150,000 or a Federal grant that exceeds

$100,000. If applicable, the Architect must complete a

certification form on lobbying activities related to a specific

Federal loan or grant that is a funding source for this Contract.

The certification and disclosure forms shall be provided by the

Owner.

1.3.7.12 The Architect agrees to abide by the requirements under

Executive Order 12549, which pertains to the debarment or suspension

of a person from participating in a Federal program or activity. If

the total compensation described in Article 1.5 exceeds $25,000, the

Architect shall complete the relevant certification form provided by

the Owner.

Delete the second sentence in subparagraph 1.3.8.2 and substitute the

following:

When the Project is resumed, the Architect's compensation may be

equitably adjusted, as mutually agreed, to provide for expenses

incurred in the interruption and resumption of the Architect's

services.

Insert the words "as mutually agreed" after "Termination Expenses" in

subparagraph 1.3.8.7.

Add the words "or representatives of the United States of America" after

the words "Owner's authorized representative" in subparagraph 1.3.9.3.

RD Instruction 1924-A

Guide 4

Attachment 1

Page 3

Add the following subparagraph to paragraph 1.3.9:

1.3.9.5 The Architect shall provide a detailed cost estimate for

Reimbursable Expenses as defined in subparagraph 1.3.9.2, which

shall be attached and made a part of this Agreement. The cost

estimate must be approved in writing by the Owner and shall be

concurred with in writing by the Agency before the services are

rendered. The billings for reimbursable services shall not exceed

the budgeted amount without prior approval of the Owner with the

concurrence of the Agency. The Agency may not concur in requests

for payments which exceed the budgeted amount unless it is

established that funds are available for such expenditures.

ARTICLE 1.4, SCOPE OF SERVICES AND OTHER SPECIAL TERMS AND CONDITIONS

Delete the word "both" from the end of the second sentence and conclude

the sentence with "Owner, Architect and Agency" in paragraph 1.4.1.

Add the following subparagraph to paragraph 1.4.2:

1.4.2.1 This Agreement is modified and supplemented by

RD Instruction 1924-A, Guide 4, Attachment 1.

ARTICLE 2.1, PROJECT ADMINISTRATION SERVICES

Add the words "and concurrence by the Agency" after for “approval by the

Owner" in Paragraph 2.1.5.

Add the following paragraph to Article 2.1:

2.1.8 The Architect shall consult with the Agency Architect or

Engineer about the Agency’s requirements and procedures.

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Guide 4

Attachment 1

Page 4

ARTICLE 2.4, DESIGN SERVICES

Add the following subparagraphs:

2.4.2.2 The Architect shall provide the Owner with the appropriate

documentation showing the Schematic Design and the estimated Project

cost to the Owner to seek the concurrence of the Agency. When the

Owner has accepted and the Agency has concurred on the Schematic

Design studies and estimated Project cost, the project Architect may

be authorized to proceed with the Design Development Documents.

2.4.4.3 The Architect shall attend conferences with the Owner,

representatives of the Agency and other interested parties as may be

reasonably necessary.

2.4.4.4 The Architect shall certify in writing, to the best of the

Architect's knowledge, information and belief, that the Drawings and

Specifications are in conformance with the applicable development

standard, as defined in Agency regulations furnished by the Owner

under subparagraph 1.2.2.8.

2.4.4.5 Prior to advertisement for bids, the Architect shall

provide_____sets of Construction Documents for use by the Owner, the

Agency and the appropriate Federal, State and local agencies from

whom approval of the Project must be obtained. The reproduction

cost of such Construction Documents shall be included in the

compensation paid to the Architect, not withstanding subparagraph

1.3.9.2. The Owner shall obtain Agency concurrence with the

Construction Documents, estimated Project costs, and authorization

to proceed in writing prior to advertisement for bids.

2.4.4.6 The Architect shall furnish additional copies of the

Construction Documents as requested by the prospective bidders, and

other interested parties, and may charge them a reasonable cost for

such copies.

2.4.4.7 Upon award of the construction contract, the Architect

shall furnish to the Owner _______ sets of Construction Contract

Documents for execution. The costs of these sets shall be included

in the compensation to the Architect notwithstanding subparagraph

1.3.9.2.

RD Instruction 1924-A

Guide 4

Attachment 1

Page 5

ARTICLE 2.6, CONTRACT ADMINISTRATION SERVICES

Add the following to subparagraph 2.6.1.1 after the words "of this

Agreement": "and the conditions of RD Instruction 1924-A, Guide 1,

Attachment 10,".

Delete the following words from subparagraph 2.6.1.2 after the word,

"terminates": "at the issuance to the Owner of the final Certificate

for Payment" and substitute the words "at the expiration of

the period of correction of the Work described in the Contract for

Construction." Also, delete the last sentence of subparagraph 2.6.1.2.

Delete the first sentence of subparagraph 2.6.1.3 and substitute the

following:

2.6.1.3 The Architect shall be a representative of and shall advise

and consult with the Owner during construction until final payment

to the Contractor is paid, and at the Owner's direction during the

period of correction of the Work described in the Contract for

Construction. The Architect shall furnish architectural services

and consultations necessary to correct minor construction defects

encountered during such correction period. The Architect shall

assist the Owner in performing a review of the Project during the

11th month after the date of substantial completion. Such services

shall be furnished without additional charge except for travel and

subsistence costs.

Add the following subparagraph to paragraph 2.6.1:

2.6.1.10 The Architect shall participate in the Preconstruction

Conference and shall advise and consult with the Owner and the

Agency.

Add the following sentences to the end of subparagraph 2.6.2.1: Such

visits to the site shall be documented in writing on inspection report

forms acceptable to the Owner and the Agency. Copies shall be furnished

to the Owner, Contractor and the Agency.

Add the following subparagraph to paragraph 2.6.2:

2.6.2.6 The Architect shall advise the Owner and the Agency of

required tests, inspections and test results; shall furnish

coordination of such tests and inspections; and shall advise the

Owner and the Agency of the results of same. Copies of tests

results shall be furnished upon request to the Owner, and the

Agency.

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Guide 4

Attachment 1

Page 6

Add the following subparagraph to paragraph 2.6.3:

2.6.3.4 The Architect shall obtain Agency concurrence on all

Certificates of Payment before payment is made.

Modify subparagraph 2.6.5.1 as follows: In the first sentence after

"Architect,” delete, "and Construction Change Directives,” and add the

following to the end of the subparagraph: Preparation of Change Orders

which do not substantially affect the Project shall be included in the

compensation computed in paragraph 1.5.1. The Owner, with the

assistance of the Architect, shall obtain Agency concurrence in writing

for all change orders prior to the performance of the Work.

Delete subparagraphs 2.6.6.1, 2.6.6.2, 2.6.6.3 and 2.6.6.4 and

substitute the following:

2.6.6.1 The Architect shall conduct an inspection prior to the

issuance of the Certificate of Substantial Completion and shall

submit a written report of work to be completed to the Owner, the

Agency and the Contractor prior to final acceptance. The Architect

shall notify the Agency about inspection allowing reasonable time

for the Agency's representative to attend. Such services shall be

coordinated with the Agency. Prior to submitting the final

Certificate for Payment, the Architect shall; 1) conduct an

inspection to determine compliance with the requirements of the

Contract Documents, and 2) receive and forward to the Owner, for the

Owner's review and records, written warranties and related documents

required by the Contract Documents and assembled by the Contractor.

RD Instruction 1924-A

Guide 4

Attachment 1

Page 7

ARTICLE 2.8, SCHEDULE OF SERVICES

Delete items .3 and .8 from paragraph 2.8.2.

Insert the word “Architect” under the heading “Responsibility” for line

items 2.8.3.16, 2.8.3.17, and 2.8.3.20 in the chart.

Add the following subparagraphs to paragraph 2.8.3 under the heading

“Description of Services.” below the chart:

2.8.3.a The Architect shall provide a detailed cost estimate based

on Construction Contract Documents. The estimate shall show a

breakdown of the project cost in accordance with Rural Development

requirements and procedures.

2.8.3.b The selection and compensation of the Project

Representative, if required, shall be concurred in by the Agency.

2.8.3.c _____ sets of Record Drawings shall be provided to the

Owner. The costs of these sets shall be included in the

compensation to the Architect not withstanding Subparagraph 1.3.9.2.

SIGNATURE BLOCK:

Delete the signature blocks on pages 1-12 and 2-12 of this Agreement and

substitute the block on the following page in both locations:

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RD Instruction 1924-A

Guide 4

Attachment 1

Page 8

IN WITNESS WHEREOF, the parties hereto have executed, or caused to be executed

by their duly authorized officials, this Agreement in duplicate on the

respective dates indicated below.

OWNER:

ATTEST: __________________________ By ________________________________

Type Name ________________________ Type Name _________________________

Title ____________________________ Title _____________________________

Date _____________________________ Date ______________________________

ARCHITECT:

ATTEST: __________________________ By ________________________________

Type Name ________________________ Type Name _________________________

Title ____________________________ Title _____________________________

Date _____________________________ Date ______________________________

The United States of America, as potential lender or insurer of funds to

defray the costs of this agreement and without liability for any payments

thereunder, hereby concurs in the form, content and the execution of this

agreement.

U.S. Department of Agriculture

Rural Development

Rural Housing Service

By ________________________________

Type Name _________________________

Title _____________________________

Date ______________________________

o0o