Yes, a borrower who is current on their mortgage payments may request an extension of time from the Mortgagee where construction is delayed for reasons outside of the borrower’s control, such as natural disasters or other contractor delays, which result in the work not being completed within the rehabilitation period specified in the Rehabilitation Loan Agreement. The Borrower must submit adequate documentation to justify the extension. The Mortgagee may grant an extension at its discretion.
For additional information see Handbook 4000.1:II.A.8.a.xvii.(B) at https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh