Policy Housing Rehabilitation Program - NC Housing Finance Agency

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15. Progress Payments: The contractor is entitled to request a maximum of one partial payment during construction per $8,000 of contracted amount. When a payment is requested, the Rehabilitation Specialist will inspect the work within three days, list all items deemed 100% complete, and calculate a payment based on 85% of the total contracted amount of those completed items. Payments will be made within four business days of the inspection. 16. Closeout: When the contractor declares the work complete, program staff will thoroughly inspect work. If deficiencies are observed, the contractor will be required to correct them. When the Rehabilitation Specialist and the homeowner are satisfied that the contract has been fulfilled, each will sign off and, after receipt of the contractor's final invoice and lien releases, the final payment will be ordered. All material and workmanship will be guaranteed by the contractor for a period of one-year from the date of completion of the work. 17. Post-Construction Conference: Following construction the contractor and the Rehabilitation Specialist. will sit down with the homeowner one last time. At this conference the contractor will hand over all owner's manuals and warranties on equipment. The contractor and Rehabilitation Specialist will go over operating and maintenance requirements for the new equipment and appliances and discuss general maintenance of the home with the homeowner. The homeowner will have the opportunity to ask any final questions about work. 18. Recordation and Assignment: As soon as possible after the contractor has been selected, and prior to beginning work, Orange County staff and the homeowner will execute the required promissory note deed of trust. These documents are then recorded by the Orange County staff. If, upon completion of all rehabilitation work, the contract price has changed due to the effect of change orders, Orange County staff will execute and record a loan modification agreement reflecting the resulting increase in the original loan amount. If the amount of the loan is decreased due to a change order, then an Estoppel Agreement is executed by NCHFA, reducing the amount of the lien. 19. The Warranty Period: It is extremely important that any problems with the work that was performed be reported by the homeowner, to the Rehabilitation Specialist, as soon as possible. All bona fide defects in materials and workmanship reported within one year of completion of construction will be corrected free of charge. What are the key dates? If after reading this document, you feel that you qualify for this program and wish to apply, please keep the following dates in mind: • Applications available to the public starting September 1, 2011. • Applications must be turned in to Orange County by 5:00 PM on November 1, 2011. • Selection of units will be made monthly on September 30, October 31, and November 30, 2011. • All rehabilitation work must be under construction by December 31, 2012. • All rehabilitation work must be completed by June 30, 2014. 8