I WANT TO BE A GENERAL CONTRACTOR ON A HUD DEAL YES!...OF COURSE! I WANT TO BE A GENERAL CONTRACTOR ON A HUD DEAL

Qualify to be the GC Licensed GC: no HUD experience OK Previous Participation: Form 2530 Supplement to Application: Form 2013S 5% Working Capital 100%-105% P&P Bond; Cash or LOC of 15% for 1-4 stories; 25% for 5+ stories

Cost the Job Form 2328 and 2328 LI Davis-Bacon Wages: residential, building, heavy, highway at https://www.wdol.gov/ BSPRA or SPRA Demolition and Off-Site Costs not mortgagable, in land value

AGM Review by JPS Review for Costs with independent cost analysis: approved within 5% of GC estimate of costs Review for ADA and Fair Housing

Sign the Contract at IE Contract: Form 2442M General Conditions: Form AIA201-2017 Supplementary Conditions: Form 2554M HUD Special Conditions from Firm Plans Specifications

Sign the Contract at IE Costs: Form 2328 and 2328LI Incentive Pay’t: Form 2443 soft costs Prevailing Wages (DB wages) Identities of Interest Changes Orders already approved Retainage Reduction Rider

In Your Office Pre-Construction Meeting w/ Leetex Form 2448 for the Draw; AGM pays within 5 BD of Form 2403 10% Retainage; 5% at 50% complete; 2.5% at 75%; 0% at Next to Final Draw or Final Endorsement GC wants retainage; Borrower wants to avoid extension fees at FE

On the Job Site Start within 10 days of Closing: no early start 2 Monthly Draws/ Inspections: Leetex: end of month signs the draw Post DB Wages outside the Trailer Keep Plans and Specs in Trailer Trip Report: Form 95379 prepared by HUD Inspector

On the Job Site Post Construction Sign Subcontractor Employees interviewed by the HUD Inspector about DB Wages Off-site Stored Material OK Permission to Occupy: Form 2485 9 and 12-month inspections for defects

See…AGM KNOWS CONSTRUCTION!

Other Things to Know Liquidated Damages if complete late = 0.01 / 1,000 x Int. Rate x 100 x 4 x Mortgage Amount. .01/1000 x .05 x 100 x 4 x $10,000,000 = $2,000 daily Liquidated damages (LD) are the lower of actual damages or the amount calculated above.

Other Things to Know Prepare Change Orders Form 92437: Positive, Deduct, Equivalent, Time Time extension = 65% of gen’l reqs per month; 7-day minimum Betterments for mortgage increase, Necessities for cost cert, mort incr NC has 4% Cash or LOC with half for contingency; SR has 10%-15% in mortgagable costs

Other Things to Know Fair Housing: when 39” is not 40” Report DB wages: Elationsys.com Anticipated Draws: Form 5372 Section 3 best efforts/ federal $ Cost Cert: Form 2330 except LIHTCs when mortgage is <80% of costs. Supplemental Services Fee and Supplemental Incentive Fee

Questions / Comments Margaret Allen mallen@agmfinancial.com 443-573-2045 If you liked this, we offer Chapter 12 of the MAP Guide!