<?xml version='1.0' encoding='utf-8'?>
<regulation prefix="Regulation" num=".08" citation="COMAR 05.03.01.08" title_num="05" subtitle_num="03" chapter_num="01" heading="Rehabilitation Procedures—Standards and Inspections.">
  <paragraph num="A.">
    <text>Standards for Rehabilitation Work. The rehabilitated property shall satisfy:</text>
    <paragraph num="(1)">
      <text>State and local planning, zoning, and building codes and other applicable laws; and</text>
    </paragraph>
    <paragraph num="(2)">
      <text>Standards established by the Program.</text>
    </paragraph>
  </paragraph>
  <paragraph num="B.">
    <text>Rehabilitation Work Write-Up.</text>
    <paragraph num="(1)">
      <text>The work write-up describing the rehabilitation work to be done shall:</text>
      <paragraph num="(a)">
        <text>Be prepared by the Department or an entity, such as a government agency, a nonprofit or for-profit corporation, or a licensed contractor, acceptable to the Program;</text>
      </paragraph>
      <paragraph num="(b)">
        <text>Be approved by the Program; and</text>
      </paragraph>
      <paragraph num="(c)">
        <text>Include only eligible rehabilitation costs as described in Regulation .06B or .07B of this chapter, as applicable.</text>
      </paragraph>
    </paragraph>
    <paragraph num="(2)">
      <text>All rehabilitation work shall be performed by State-licensed contractors in accordance with the work write-up.</text>
    </paragraph>
    <paragraph num="(3)">
      <text>The contractor or contractors performing the work shall submit to the Program both a draw schedule and a plan for implementing the work write-up.</text>
    </paragraph>
    <paragraph num="(4)">
      <text>The Program, in its discretion, may revise the draw schedule in §B(3), above.</text>
    </paragraph>
  </paragraph>
  <paragraph num="C.">
    <text>Monitoring Generally. In monitoring loans and disbursements, the Program, in its sole discretion, shall determine the frequency and level of oversight by the Program during rehabilitation, taking into consideration:</text>
    <paragraph num="(1)">
      <text>The capability of the borrower or the developer under Regulation .07 of this chapter;</text>
    </paragraph>
    <paragraph num="(2)">
      <text>The demonstrated experience and reliability of the contractor;</text>
    </paragraph>
    <paragraph num="(3)">
      <text>The amount of the loan;</text>
    </paragraph>
    <paragraph num="(4)">
      <text>The availability of local technical assistance; and</text>
    </paragraph>
    <paragraph num="(5)">
      <text>Other factors considered relevant.</text>
    </paragraph>
  </paragraph>
  <paragraph num="D.">
    <text>Inspections of Rehabilitation Work.</text>
    <paragraph num="(1)">
      <text>For rehabilitation work under Regulation .05 of this chapter:</text>
      <paragraph num="(a)">
        <text>The Program staff or those persons or entities, which may include the borrower, authorized by the Program, shall conduct inspections to:</text>
        <paragraph num="(i)">
          <text>Determine the necessary scope of work, when required; and</text>
        </paragraph>
        <paragraph num="(ii)">
          <text>Verify whether the contractor performing the work is entitled to a draw payment.</text>
        </paragraph>
      </paragraph>
      <paragraph num="(b)">
        <text>Inspection reports shall be made on a standard form prescribed by the Program.</text>
      </paragraph>
      <paragraph num="(c)">
        <text>The Department may charge borrowers a fee for inspections of the rehabilitation work.</text>
      </paragraph>
    </paragraph>
    <paragraph num="(2)">
      <text>For rehabilitation work under Regulation .07 of this chapter:</text>
      <paragraph num="(a)">
        <text>The Program may require that periodic inspections or a final home inspection be conducted to:</text>
        <paragraph num="(i)">
          <text>Determine the necessary scope of work, if required; and</text>
        </paragraph>
        <paragraph num="(ii)">
          <text>Verify whether the contractor performing the work is entitled to a draw payment or that all work has been completed;</text>
        </paragraph>
      </paragraph>
      <paragraph num="(b)">
        <text>Inspection reports shall be made on a standard form prescribed by the Program;</text>
      </paragraph>
      <paragraph num="(c)">
        <text>Inspections shall meet standards set by the Program and be conducted by the Program or an inspector acceptable to the Program; and</text>
      </paragraph>
      <paragraph num="(d)">
        <text>The Department may charge borrowers a fee for inspections of the rehabilitation work.</text>
      </paragraph>
    </paragraph>
  </paragraph>
</regulation>