HUD Handbook 4000.1 Appendix 7.0: Property Preservation Allowances and Schedules (Applies to Servicing Only)

Document
HUD Handbook 4000.1, FHA Single Family Housing Policy Handbook
Section date
Version in Zeitro Strata
Where
pages 1800–1805 of 1872

Page 1800

APPENDIX 7.0 – PROPERTY PRESERVATION ALLOWANCES AND SCHEDULES (APPLIES TO SERVICING ONLY) (11/14/2023)

A. MAXIMUM PROPERTY PRESERVATION ALLOWANCES

CLAIM SUBMISSION AND DOCUMENTATION COSTS Maximum Property Preservation Allowance $5,0001 Photographs Maximum $30 per property Local Requirements (Vacant Property Registration (VPR))

Actual cost to register and comply with all VPR ordinance requirements (provide supporting documentation) INSPECTIONS Initial Occupancy Inspection $30/$20 per each additional unit Occupancy Follow-Up Inspections $30/$20 per each additional unit Vacant Inspections (Ongoing)

$45/$30 per each additional unit $45/$30 per each additional unit

• First-Time Vacant Property Inspection (One time) • Follow-Up Vacant Property Inspections

SECURING THE PROPERTY Emergency Contact Information Posting Emergency Contact Posting including Address Posting

$10 one time reimbursement

Lockbox, including duplicate HUD coded keys

$40 one time reimbursement

Locksets Lockset replacement – Front or Main Entranceway

$60 per door/door set

Lockset replacement – other than above $20 each Rekeying $10 per keyhole Padlock/Hasp Installation $40 each Doors Replace Exterior Door – Prehung Steel $800 each Replace Overhead Door $800 single bay door $1,000 double bay door Repair Overhead Door $100 maximum per property Glazing/Windows Reglazing $1.50 per United Inch (U.I.) (Length (in.) of one side + Width (in.) of one side = Total U.I.) Window Lock Replacement $5 each; maximum $50 per property Door slider lock, anti-lift blocks, security bars $25 each

1 The $5,000 maximum cost limit does not include the cost of the following expenses: debris removal, grass cutting, boarding, inspections, securing of swimming pools, sump pumps, demolition, vacant property registration fees, and utilities. These expenses do not require an over-allowable request when the cost is equal to or less than Appendix 7.0 – Property Preservation Allowances and Schedules.

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Appendix 7.0 – Property Preservation Allowances and Schedules (Applies to Servicing Only) (11/14/2023)

Boarding/Securing of doors and windows Boarding/Securing Materials $.90 per U.I. Swimming Pools, Spas, and Hot Tubs Swimming Pool Securing – In-ground Maximum $1,250 for all work, including cover installation Swimming Pool Securing – Above ground Maximum $500 for all work, including cover installation Spa and Hot Tub Securing Maximum $50 for all work, including cover installation Swimming Pool Draining Maximum $300 per property Above Ground Swimming Pool Removal Maximum $500 per property Swimming Pool Maintenance Maximum $100 monthly Winterization Dry Winterization Maximum $100 each unit Wet/Steam Winterization Maximum $150 Wet/Steam Winterization – additional unit Maximum $90 Radiant Winterization Maximum $250 Radiant Winterization – additional unit Maximum $125 Reduced Pressure Zone (RPZ) Valves Maximum $150, where required by state or local law Swimming Pools and Spas Maximum $200 per property per 12-month period Re-winterization $50 each occurrence Utilities, Power Supply, Water Supply, Gas Supply Electricity, Gas, Oil, Propane, Water and Sewer

Actual cost – one time shut off/transfer fee as assessed by local utility entities Water well closing and disconnection $80 for all work required – one time shut-off per property Initial water line pressure testing $20 Wire Capping $1 each; maximum $25 per property Water, Sewer, or Gas Capping $15 each; maximum $90 per property Smoke Detectors – when required by AHJ $15 each CO2 Monitor – when required by AHJ $25 each Roof Assembly Repair Temporary Roof Repair/Tarping Maximum $600 per property Permanent Roof Repair/Patching Maximum $1,000 per property Chimney Capping Maximum $100 each Foundation Drainage Systems and Basements Basement Water Pumping Maximum $500 per property Gutter Cleaning and Repair $1 per linear foot (LF); Maximum $100 per property Gutter Replacement (missing sections only) $4.70 per LF; Maximum $400 per property Molds, Fungus, Discoloration and Related Moisture Damage and Organic Growth Dehumidifier Purchase and Installation Maximum $250 each Absorbent Moisture Desiccants $20 each; maximum $100 per 12 month period Mold Treatment including Medium Removal, mold inhibitor chemicals, mold inhibiting paints

$300 Maximum per property

Sump Pumps Sump Pump Replacement/Installation Maximum $300 per property Sump Pump Repair Maximum $50

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Appendix 7.0 – Property Preservation Allowances and Schedules (Applies to Servicing Only) (11/14/2023)

Debris Removal, Cleaning, and Minor Repair Debris Removal, Interior and Exterior Maximum $1,250 Debris Removal, Interior and Exterior – additional waste

$50 per cubic yard (CY)

Broom Swept Cleaning $50 Refrigerator and Freezer Cleaning $50 Toilet Cleaning $50 Clothes Dryer Vent Cover Installation $ 20 each Pest Extermination (professional services with documented need)

Maximum $300 (provide payment evidence)

Pest Extermination (Over-the-counter products)

$30 each; maximum $90 per 12 month period

Dead Animal Removal $50 per occurrence Vehicle/Boat Removal Maximum $210 per vehicle Fencing Repair $300 for all work required Handrails $10 per linear foot (LF) Maximum $200 per property Carpet Removal including removal of tack strips

$.20 per square foot (SF) Maximum $400 per property Demolition of Dilapidated/Unsafe Outbuildings and Sheds

$1 per square foot; Maximum $400 per property

Professional reports (Hazardous material identification and testing) - Reimbursement for positive results only

Maximum $1,100 per property

Police and Fire Reports $20 each Personal Property Storage Storage and disposition Maximum $300 per property MAINTENANCE Yard Maintenance Initial Desert Landscaping Maintenance Maximum $300 Recut Desert Landscaping Maintenance Maximum $200 per 12 month period Grass Cuts Refer Attachment B Tree Trimming Maximum $250 per 12 month period Shrub Trimming Maximum $200 per 12 month period Snow Removal Snow/Ice Removal Maximum $75 per occurrence Utilities Utility Costs Actual costs as invoiced by power and utility entities

B. WINTERIZATION SCHEDULE

Required Winterization Period State or Territory

All Year Alaska September 1 through April 30 Colorado; Connecticut; Idaho; Illinois; Indiana Iowa; Maine; Massachusetts; Michigan; Minnesota; Montana; Nebraska; New Hampshire; New Jersey; New York; North Dakota; Ohio; Oregon; Pennsylvania; Rhode Island; South Dakota; Vermont; Washington; Wisconsin; Wyoming

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Appendix 7.0 – Property Preservation Allowances and Schedules (Applies to Servicing Only) (11/14/2023)

Required Winterization Period State or Territory

October 1 through March 31 Alabama; Arizona; Arkansas; California; Delaware; Florida; Georgia; Kansas; Kentucky; Louisiana; Maryland; Mississippi; Missouri; Nevada; New Mexico; North Carolina; Oklahoma; South Carolina; Tennessee; Texas; Utah; Virginia; West Virginia; Washington, DC Winterization not required Hawaii; Guam; Northern Mariana Islands; American Samoa; Puerto Rico; U.S. Virgin Islands

C. GRASS CUT SCHEDULE

Initial Cut (10,001 sf -

Recuts (10,001 sf -

State or Territory Initial Cut (1 - 10,000 sf)

Recuts (1 - 10,000 sf)

20,000 sf) NOTE: Add $25 for each additional 10,000 sf for properties greater than 20,000 sf ALL YEAR: ONCE PER MONTH Arizona $75 $95 $70 $90 Nevada $90 $110 $85 $105 New Mexico $85 $105 $80 $100 ALL YEAR: TWICE PER MONTH California $100 $120 $95 $115 Florida $85 $105 $80 $100 Hawaii $110 $130 $105 $125 Guam, MP, AS $110 $130 $105 $125 Puerto Rico $110 $130 $105 $125 U.S. Virgin Islands $85 $105 $80 $100 APRIL 1 TO OCTOBER 31: ONCE PER MONTH Colorado $85 $105 $80 $100 Utah $85 $105 $80 $100 Wyoming $85 $105 $80 $100 APRIL 1 TO OCTOBER 31: TWICE PER MONTH Arkansas $70 $90 $65 $85 Connecticut $100 $120 $95 $115 Delaware $95 $125 $90 $120 Idaho $100 $120 $95 $115 Illinois $85 $105 $80 $100 Indiana $85 $105 $80 $100 Iowa $85 $105 $80 $100 Kansas $85 $105 $80 $100 Kentucky $85 $105 $80 $100 Maine $100 $120 $95 $115 Maryland $100 $120 $95 $115 Massachusetts $100 $120 $95 $115 Michigan $85 $105 $80 $100 Minnesota $85 $105 $80 $100 Missouri $85 $105 $80 $100 Montana $85 $105 $80 $100

20,000 sf)

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Appendix 7.0 – Property Preservation Allowances and Schedules (Applies to Servicing Only) (11/14/2023)

Initial Cut (10,001 sf -

Recuts (10,001 sf -

State or Territory Initial Cut (1 - 10,000 sf)

Recuts (1 - 10,000 sf)

20,000 sf) Nebraska $85 $105 $80 $100 New Hampshire $100 $120 $95 $115 New Jersey $100 $120 $95 $115 New York $100 $120 $95 $115 North Carolina $85 $105 $80 $100 North Dakota $85 $105 $80 $100 Ohio $85 $105 $80 $100 Oklahoma $85 $105 $80 $100 Oregon $100 $120 $95 $115 Pennsylvania $95 $115 $90 $110 Rhode Island $100 $120 $95 $115 South Dakota $85 $105 $80 $100 Tennessee $85 $105 $80 $100 Vermont $100 $120 $95 $115 Virginia $95 $115 $90 $110 Washington $100 $120 $95 $115 West Virginia $95 $115 $90 $110 Wisconsin $85 $105 $80 $100 Washington DC $95 $115 $90 $110 MARCH 1 TO NOVEMBER 30: TWICE PER MONTH Alabama $70 $90 $65 $85 Georgia $85 $105 $80 $100 Louisiana $85 $105 $80 $100 Mississippi $85 $105 $80 $100 South Carolina $85 $105 $80 $100 Texas $85 $105 $80 $100 JUNE 1 TO SEPTEMBER 30: TWICE PER MONTH Alaska $100 $120 $95 $115

20,000 sf)

Page 1805

Appendix 8.0 – FHA Defect Taxonomy (11/10/2026)

Guideline text quoted as published by the agency. The latest published version governs. This is not an underwriting decision.