1. (a) Construction Inspections.

   1. (1) Initial Inspections.

      1. (A) An initial inspection identifying all substandard conditions listed in Texas Minimum Construction Standards along with any other health or safety concerns must be conducted for all rehabilitation or reconstruction projects.
      2. (B) The initial inspection report must be provided to both the Department and the homeowner.
      3. (C) All substandard conditions identified in the initial inspection report shall be addressed in the work write-up in adequate detail.
   2. (2) Interim Inspections of construction progress may be required to document construction Draw requests.

   3. (3) Final Inspections.

      1. (A) Final construction inspections are required for all new construction, reconstruction and rehabilitation Activities. The inspection must ensure that the construction of the Single Family Housing Unit is complete and meets all applicable codes and requirements including zoning ordinances as applicable, and have no observed deficiencies related to health and safety standards.
      2. (B) Final inspections must document that all substandard conditions identified in the initial inspection have been corrected, repaired or removed. A copy of the final inspection report must be provided to the Department and the Household.
      3. (C) Any deficiencies noted on the inspector's report must be corrected prior to the final Draw.
      4. (D) A Certificate of Occupancy shall be issued prior to final payment for construction, as applicable. If no Certificate of Occupancy is available from an incorporated area, a document from the local government entity showing that the Single Family Housing Unit has passed all required building codes must be obtained and provided to the Department.
      5. (E) The Certificate of Occupancy may substitute for a final construction inspection, if available and acceptable to the Program. If no Certificate of Occupancy is available, a final construction inspection must be conducted and the report provided to the Department and homeowner.
      6. (F) Cosmetic issues such as paint, wall texture, etc. identified in a final inspection will not be required to be corrected if utilizing a Self-Help construction Program, or if acceptable to the Program as outlined in Program Rule or NOFA.

2. (b) Other inspection requirements.

   1. (1) All inspectors shall inspect properties utilizing applicable construction standards prescribed by the Department.
   2. (2) All inspectors shall utilize Department approved and prescribed inspection forms/checklists for applicable inspections.
   3. (3) Single Family Housing Units receiving only utility connections under the Colonia Self Help Center Program are exempt from inspection requirements.
   4. (4) The Department reserves the right to reject any inspection report which in its sole determination does not accurately represent the property conditions or if the inspector does not meet Program requirements. If an inspection report is rejected, all related construction costs may be disallowed until appropriate corrections are made.

3. (c) Requirements for Use of professional inspectors or qualified inspection individuals.

   1. (1) Professional home inspectors or qualified inspection individuals shall conduct all initial and final inspections for New Construction, Reconstruction and Rehabilitation activities.
   2. (2) Municipal code officials, as applicable, shall conduct inspections inside of city limits and extraterritorial jurisdictions.
   3. (3) The active TREC licensed professional home inspector may be a staff member of the Administrator.
   4. (4) Inspectors used to verify compliance with this Chapter must meet Program requirements.

4. (d) Reconstruction and new construction Requirements. Compliance with Accessibility Requirements--Applicant must submit one of the documents described in paragraph (1) or (2) of this subsection to ensure that requirements of Texas Government Code, §2306.514 and other Program Rules are met:

   1. (1) Prior to commencement of construction, a copy of the proposed plans and specifications for reconstruction and new construction of Single Family Housing Units. All plans submitted must be prepared and executed by an architect licensed by the state of Texas;
   2. (2) A certification of compliance from a licensed architect.

5. (e) Rehabilitation Requirements.

   1. (1) Administrators shall meet the applicable requirements of the Texas Minimum Construction Standards (TMCS) for all Rehabilitation projects.
   2. (2) TMCS requirements may be waived only through the process provided in §20.16 of this Chapter.

Source Note:The provisions of this §20.10 adopted to be effective November 1, 2012, 37 TexReg 8470; amended to be effective November 9, 2014, 39 TexReg 8573.