How are health and safety concerns addressed if discovered during the rehab period on a 203(k)?

The mortgagee must ensure that all health and safety items not in the original Work Write-Up or work plan that are discovered during the rehabilitation period are addressed by completion of a change order.  The mortgagee must obtain form HUD-92577, Request for Acceptance of Changes in Approved Drawings and Specifications, from the Consultant or inspector if there are any deviations from the Work Write-Up. The mortgagee must approve the change order before any work can be done. 

For additional information see Handbook 4000.1 II.A.8.a.xviii.(B) at https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh

All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.


Topic Number: KA-04811