RD Instruction 1924-A
(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.
(c) Scheduling of development work.
(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.
(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:
(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.
(C) Include all referenced codes and standards.
(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.
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