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Guide for Completing Form 8823 - page 82 / 197





82 / 197

Date of Noncompliance

Notice to Owner

occupancy are out of compliance. The out of compliance date is determined for each unit based on the date that particular unit was vacated. *

The reportable “out of compliance” date is the date the property failed to meet the inspection standard, if known; otherwise, at the earliest documented date that the standard was not met.

*Example 1: Factual Determination

A frozen pipe burst and flooded two vacant units in a low-income building. The owner timely repaired the pipe but did not adequately clean the damaged floors, rugs and walls in the two affected units. Upon inspection, the state agency discovered mold damage resulting from the flooding in both units. The date of noncompliance is the date the frozen pipe burst.*

Example 2: Noncompliance Date Identified by Inspection

The state agency inspected the property site and determined that a dilapidated wooden fence on the exterior of the property represented a UPCS violation because it was about to fall down and nails were protruding out of the boards. The date of noncompliance is the date of the inspection.

Example 3: Noncompliance Date Identified by Documentation

HUD performed an inspection and determined that there were significant safety hazards on an LIHC property site. The owner was notified, but when HUD revisited the property six months later, the hazards had not been corrected. HUD provided the state agency with a copy of their report. The state agency conducted an inspection and confirmed HUD’s information. The date of noncompliance is the date of HUD’s initial inspection.

The state agency is required to provide prompt written notice to the owner of a low- income housing project if the state agency discovers that the project is not in compliance with the state agency’s inspection standard, or the annual certification is inaccurate. Notification letters establish and document the beginning of the correction period for any “out of compliance” issues. See Exhibit 6-3.

When state agencies determine that the violations involve life-threatening problems, a critical notification letter requiring immediate corrective action should be sent to the owner. To ensure prompt correction of exigent, life threatening health and safety deficiencies, the project representative should be provided a list of every observed life threatening violation and fire safety hazard that needs immediate attention or remedy, before the inspector leaves the project site. See Exhibit 6-4. To document receipt, the project representative should sign the state agency’s copy of the list of deficiencies.


Revised October 2009

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