9209.1 Before issuance of a Final Certificate of Assistance, the Applicant Family shall schedule two kinds of physical inspections required in the HCV/HOAP.

1. (a) A Housing Quality Standard (HQS) inspection conducted by the HCV/HOAP.
2. (1) The HQS inspection does not include an assessment of the adequacy and life span of the major building components, building systems, appliances or other structural components.
3. (2) However, the HQS inspection shall indicate the current physical condition of the home and any repairs necessary to ensure that the home is safe and otherwise habitable.
4. (b) An independent professional home inspection by an inspector who is certified, licensed, and bonded and is neither an employee, nor a contractor of DCHA.
5. (1) The inspection shall be a comprehensive evaluation of the major building components and systems of the home, determining the existing condition and the need, if any, for repairs.
6. (2) At least the following shall be examined for deficiencies:
   1. (i) the structure;
   2. (ii) basement/crawl space(s);
   3. (iii) electrical and heating/cooling systems;
   4. (iv) energy/insulation;
   5. (v) ventilation;
   6. (vi) kitchen appliances;
   7. (vii) plumbing;
   8. (viii) walls/ceiling;
   9. (ix) floors;
   10. (x) roof/attic;
   11. (xi) exterior finish;
   12. (xii) fireplace/chimney;
   13. (xiii) windows/doors; and
   14. (xiv) gutters/drainage.

9209.2 Request and payment for professional home inspection.

(a) The independent professional home inspection shall be requested and paid for by the

household.

(b) A copy of the inspection report shall be provided to HCV/HOAP within five (5) working days of receipt of the report.

(c) The source(s) of funds for payment of the professional home inspection may be a source other than household personal income.

9209.3 HCV/HOAP Review of Inspection Reports.

(a) The HCV/HOAP shall review the professional inspection report and the HQS report to determine whether repairs are necessary prior to purchase and to generally assess whether the purchase transaction makes sense in light of the overall condition of the home and the likely cost of repairs.

(b) Notice of Inspection Approval.

(1) No deficiencies. If the HQS inspection report and the professional inspection report reveal that the home meets satisfactory standards and there are no deficiencies, the program shall provide a notice of inspection approval.

(2) Contingent Approval for Minor Repairs. If the inspection reports indicate the need for repairs that can be corrected in a time period that compliments the purchaser's time table, the program shall provide the household with a notice of inspection approval, subject to the completion of repairs at the seller's expense, and a satisfactory follow up inspection by HQS or the professional inspector.

(c) Options if Major Repairs Required. If the HQS inspection report and/or the report from the professional inspector reveals major defects in and/or repairs to the home, the HCV/HOAP shall either issue a Contingent Disapproval or a Notice of Disapproval.

(d) Contingent Disapproval.

(1) If HCV/HOAP considers the major repairs to be feasible, the HCV/HOAP shall outline those defects/repairs noted in the inspection report that shall be corrected by the Seller, at Seller's expense, prior to purchase and stipulate the specific time frame by which they shall be corrected.

(2) Re-inspection shall be required upon completion of the repairs. The HCV/HOAP shall complete a follow-up HQS inspection. The Applicant Family shall be required to obtain a follow up inspection from the professional inspector to review the corrections, with any additional fee to be paid by the Family.

(3) HCV/HOAP shall receive a copy of the follow-up home inspection report from the professional inspector.

(4) The home inspection report shall be acceptable to HCV/HOAP before approval to continue shall be granted.

(e) Notice of Disapproval.

(1) If HCV/HOAP determines that the home is not suitable for HOAP Subsidy because of the major physical problems and/or the cost of the subsequent repairs HCV/HOAP shall issue a written Notice of Disapproval. The notice shall state the reason(s) for the disapproval.

(2) The notice shall direct the Seller to return all earnest money and inform the household that they shall withdraw their offer and search for another home to purchase.

(3) The time period between the inspections and the disapproval shall not be counted against the 180 days allowed for the search and closure process under Subsection 9205.8, above.

SOURCE: Notice of Final Rulemaking published at 49 DCR 5767 (June 21, 2002); as amended by Final Rulemaking published at 52 DCR 6180 (July 1, 2005).