The specific performance of residential construction inspections will reflect the type of development being financed: infrastructure/site utility loans; building construction; and combination loans. For purposes of describing the scopes of service, these Residential Inspections are categorized as Tract Development and Staged Payout House Construction.

General Information

The following information should be included in each report.

• Owner/Borrower Name
• Project name and location
• Description of the project
• General Contractor's Name, Contract Sum and Type of Contract, as applicable
• Construction Schedule
• Date of Inspection
• Total number of lots in project
• Number of lots improved
• Number of lots under development
• Number of lots unimproved
• Number of lots sold, if applicable

Preliminary/Front End Residential Review

For Tract Development loans, the Consultant will review and evaluate the proposed plans and specifications for the site work and vertical "sticks and bricks" construction. The scope of the preliminary review should address the following matters as they pertain to the specific project.

• Review of documents identified in the Document Review List
• Subdivision status
• Commentary on ADA compliance; such as, accessibility to sales office, parking, etc
• Code compliance, variances, restrictive covenants, and related matters affecting the proposed construction.
• Availability of utilities, including discussion of limitations or separate, private utility agreements.
• Description of local building inspection processes
• Discussion of municipal development agreements

Periodic Reviews

The progress reviews will address completion of infrastructure work, as well as the vertical building construction, which may be requested on a percentage of completion or staged payout basis. In addition, the Consultant will monitor restrictions of development; such as, maximum number of units that can be under construction at any one time and limitations on the number of model or speculative units.

Infrastructure/Site Utility

The consultant should inspect and comment on the development work included in the financing or required for satisfactory access to and usage of the project site. This may include, but is not limited to site grading, location of utilities, curbs and sidewalks, street paving, traffic signalization, etc. Although placement of underground utility lines and sewage systems is not readily observable in an interim inspection visit, the consultant should review documentation and verify municipal acceptance of the work reflected in the contractors' applications for payments. The consultant also should confirm the Borrower's actual cost of work completed and verify municipal acceptance of the work, if applicable, as part of the periodic review and recommendation process.

Houses/Buildings

The consultant shall evaluate the adequacy of funds and completeness of plans and specifications following the reporting criteria in the Preliminary Report and Progress Report scopes of service outlines. In addition to tracking the construction progress of individual units, the review should identify which units are occupied.

The consultant shall confirm progress of construction (stage or line item percentage), quality of workmanship and materials, and provide assurance that, upon completion, the building will meet all requirements for issuance of the Certificate of Occupancy. A walk-through of each unit should be conducted at regular intervals, generally not less than monthly, unless otherwise stated in the Request for Bid Details.

Report