1. (a) New construction requirements.

   1. (1) A Certificate of Occupancy shall be issued prior to final payment for construction, as applicable. In instances where the local jurisdiction does not issue a Certificate of Occupancy for the Activity undertaken, the Administrator must provide to the Department documentation evidencing that the Single Family Housing Unit has passed all required building codes.
   2. (2) Applicant must demonstrate compliance with Texas Government Code §2306.514, "Construction Requirements for Single Family Affordable Housing," and other Program Rules.

2. (b) Reconstruction requirements.

   1. (1) The initial inspection must identify all substandard conditions listed in TMCS along with any other health or safety concerns.

      1. (A) The initial inspection may be waived if the local building official certifies that the extent of the subject property's substandard conditions is beyond repair, or the property has been condemned.
      2. (B) A copy of the initial inspection report must be provided to the Department and to the Household.
      3. (C) All substandard conditions identified in the initial inspection report shall be addressed in the work write-up in adequate detail to document the need for Reconstruction.
   2. (2) A Certificate of Occupancy shall be issued prior to final payment for Reconstruction, as applicable. In instances where the local jurisdiction does not issue a Certificate of Occupancy for the Activity undertaken, the Administrator must obtain and provide to the Department documentation evidencing that the Single Family Housing Unit has passed all required building codes.
   3. (3) Applicant must demonstrate compliance with Texas Government Code §2306.514, "Construction Requirements for Single Family Affordable Housing," and other Program Rules.

3. (c) Rehabilitation requirements.

   1. (1) The initial inspection must identify all substandard conditions listed in TMCS along with any other health and safety concerns.

      1. (A) A copy of the initial inspection report must be provided to the Department and to the Household.
      2. (B) All substandard conditions identified in the initial inspection report shall be addressed in the work write-up, scope of work or specifications in adequate detail to ensure that all substandard conditions are properly corrected.
   2. (2) Final inspections must document that all substandard and health and safety issues identified in the initial inspection have been corrected.
   3. (3) Administrators shall meet the applicable requirements of the TMCS. TMCS requirements may be waived only through the process provided in §20.16 of this Chapter.

4. (d) Requirements for all construction activities.

   1. (1) Interim inspections of construction progress may be required to document a draw request, in the Program Rule, Program Manual, or NOFA.

   2. (2) Final inspections are required for all single family new construction, Reconstruction and Rehabilitation Activities. The inspection must document that Activity is complete; meets all applicable codes, requirements, zoning ordinances; and has no observed deficiencies related to health and safety standards.

      1. (A) Third party certification of compliance with Chapter 21, Minimum Energy Efficiency Requirements for Single Family Construction Activities, of this Title is required as applicable.
      2. (B) A copy of the final inspection report must be provided to the Department and to the Household.
      3. (C) The Certificate of Occupancy may serve as the final inspection if available and acceptable in the Program Rule, Program Manual, or NOFA.
      4. (D) All deficiencies noted on the inspector's report must be corrected prior to the final draw.
   3. (3) Correction of cosmetic issues, such as paint, wall texture, etc., will not be required to be corrected if acceptable to the Program as outlined in the Program Rule, Program Manual, or NOFA; or if utilizing a Self-Help construction Program.

5. (e) Inspector Requirements.

   1. (1) Inspectors hired to verify compliance with this Chapter must meet Program requirements as outlined in the Program Rule, Program Manual, or NOFA, as applicable.
   2. (2) Within city limits and extraterritorial jurisdictions, municipal code inspectors shall conduct all inspections for local code requirements as applicable.
   3. (3) All non-municipal code inspectors shall conduct inspections using applicable construction standards prescribed by the Department.
   4. (4) All non-municipal code inspectors shall conduct inspections using approved and prescribed inspections forms and checklists, as applicable.
6. (f) The Department reserves the right to reject any inspection report if, in its sole determination, the report does not accurately represent the property conditions or if the inspector does not meet Program requirements. All related construction costs in a rejected inspection report may be disallowed until the deficiencies are adequately cured.
7. (g) Single Family Housing Units participating in the Colonia Self-Help Center Program and receiving utility connections only are exempt from compliance with this Chapter.

Source Note:The provisions of this §20.10 adopted to be effective December 6, 2015, 40 TexReg 8639.