Form Hud 52531a - Pbv Agreement To Enter Into Housing Assistance Payments Contract - New Construction Or Rehabilitation Page 6

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1.9
Inspection and Acceptance by the PHA of Completed
Contract Units
A.
Completion of Contract Units: Upon receipt of owner notice of completion of
contract units, the PHA shall take the following steps:
1. Review all evidence of completion submitted by owner.
2. Inspect the units to determine if the housing has been completed in
accordance with this Agreement, including compliance with the HQS and
any additional requirements imposed by the PHA under this Agreement.
B.
Non-Acceptance: If the PHA determines the work has not been completed in
accordance with this Agreement, including non-compliance with the HQS, the
PHA shall promptly notify the owner of this decision and the reasons for the non-
acceptance. The parties must not enter into the HAP contract at this point.
However, work deficiencies may be corrected in accordance with Section 1.10 of
this Agreement.
C.
Acceptance: If the PHA determines that the work has been completed in
accordance with this Agreement, and that the owner has submitted all required
evidence of completion, the PHA must submit the HAP contract for execution by
the owner and must then execute the HAP contract.
1.10 Acceptance Where Work Deficiencies Exist
A.
If the PHA determines that work deficiencies exist, the PHA shall determine
whether and to what extent the deficiencies are correctable, whether the units will
be accepted after correction of the deficiencies, and the requirements and
procedures (consistent with HUD requirements) for such correction and
acceptance of contract units. The PHA shall notify the owner of the PHA’s
decision.
B.
Completion in Stages: When the units will be completed in stages, the procedures
of this section shall apply to each stage.
1.11 Execution of HAP Contract
A.
Time and Execution: Upon acceptance of the units by the PHA, the owner and the
PHA execute the HAP contract.
Page 6 of 17
HUD 52531A
Agreement, Part 1 of 2
Previous Editions are obsolete
Project-based Voucher Program

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