1. (a) The inspection requirements in this section are applicable to all construction activities, except for the Amy Young Barrier Removal Program, to the extent funded with SHTF.

   1. (1) Interim inspections of construction progress are required for a Draw request.

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

      1. (A) A copy of the final inspection report must be provided to the Department and to the Household.
      2. (B) Administrator, or third party code or Qualified Inspector certification of compliance with the Minimum Energy Efficiency Requirements for Single Family Construction Activities under 10 TAC Chapter 21 is required, as applicable.

2. (b) 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 in accordance to subsection (a)(2) of this section.
   2. (2) Applicant must demonstrate compliance with Tex. Gov't Code §2306.514, "Construction Requirements for Single Family Affordable Housing," and applicable Program Rules.

3. (c) Reconstruction requirements.

   1. (1) The initial inspection must identify all substandard conditions listed in TMCS along with any other health or safety concerns, unless the unit has been condemned or in the case of a HOME Activity, the unit to be reconstructed is an MHU.

      1. (A) A copy of the initial inspection report must be provided to the Department and to the Household as applicable. 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) All substandard conditions identified in the initial inspection report shall be addressed in the work write-up and cost-estimate in adequate detail to document the need for reconstruction.
   2. (2) 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 in accordance with subsection (a)(2) of this section.
   3. (3) Applicant must demonstrate compliance with Tex. Gov't Code §2306.514, "Construction Requirements for Single Family Affordable Housing," and applicable Program Rules.

4. (d) 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 and cost-estimate 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. Also, all deficient items noted on the final inspection report must be corrected prior to the final draw of funds.
   3. (3) Administrator shall meet the applicable requirements of the TMCS. TMCS requirements may be waived only through the process provided in §20.16 of this chapter (relating to Appeals).
   4. (4) Correction of cosmetic issues, such as paint, wall texture, etc., will not be required if acceptable to the Program as outlined in the Program Rule, 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, 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) For areas not within a city or an extraterritorial jurisdiction, all Qualified Inspectors shall conduct inspections using applicable construction standards prescribed by the Department, and Department-approved inspection forms and checklists as applicable.
6. (f) The Department reserves the right to reject any inspection report if, in its sole and reasonable 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) A Single Family Housing Unit condemned by a unit of government will not be rehabilitated.

Source Note:The provisions of this §20.10 adopted to be effective October 31, 2019, 44 TexReg 6337.