This section provides instruction for maintenance of utilities and winterization of properties to protect against freeze damage. It also addresses maintenance of wells and properties with sump pumps.
Unless identified in the variations section of this attachment, utilities are to be turned off. In states where heat is to remain on, the temperature should be maintained at 55 degrees Fahrenheit unless otherwise noted in the local variations.
A. Condominiums and Attached Dwellings
At condominiums and attached dwellings in Planned Unit Developments (PUDs), water services and utilities should remain on if the systems are shared with other units. M&M Contractors should be contacted for directions on maintaining water services at properties where a community water service is involved and for electrical services at condominiums or townhouses, duplexes, attached dwellings in PUDs, where such services should be left on due to homeowners’ association or party wall requirements.
B. Equipment Damage
If a major repair or replacement is needed to make the heating system operational, the Mortgagee should contact the M&M Contractor for instructions. The Mortgagee is responsible for damages to plumbing and heating systems caused by untimely and/or improper maintenance.
C. Sump Pumps
Where there is an existing sump pump used to keep basements or crawl space dry, the Mortgagee should leave the electricity on to assure the property is undamaged by flooding, regardless of whether the property is located in a state where utilities are required to be off. The Mortgagee should check to make sure the sump pump is operating. Mortgagees should request prior written approval from the M&M contractor if the cost of installing a sump pump exceeds $250.
D. Utility
Accounts
Utility
accounts including electricity, gas, home heating oil and water, should be in
the Mortgagee's name until conveyance of the property to HUD. The Mortgagee should pay the bill and may
claim reimbursement for utility costs covering the period from the date of
vacancy until the end of the billing cycle that includes the date of
conveyance. Payment of a utility bill
that includes charges for a portion of a billing cycle that is post conveyance, is the exception to HUD’s policy on
non-reimbursement of expenses after the conveyance date. It is the Mortgagee's responsibility to
notify the utility company that ownership of the security property has been
transferred to HUD (to the attention of the M&M contractor), upon
conveyance. A copy of the notice should
be maintained in the claim review file.
In states where utilities should remain on, if there is any reason to believe that a Mortgagor may abandon a property, the Mortgagee should contact the utility company to request that the Mortgagee be notified of non-payment of utilities so that utilities can be transferred to the Mortgagee’s name and the heat remain on if the Mortgagor vacates.
E. Propane and
Oil Systems
If the property has a propane or oil heating system, put on "KEEP FULL" contract with a local supplier; in those jurisdictions where the heat should remain “ON”.
II. Water
A. Domestic Water
If the water supply source is a public system, the utility should be contacted to turn off the water supply at the curb, unless otherwise indicated in the local variations. The Mortgagee should not cut water lines or remove water meters. (A non‑reimbursable charge may be imposed by the water utility for unauthorized water meter removal). The water department or provider should be notified when water is turned off so that a final meter reading can be done. The Mortgagee should ensure that this is completed. Where a water heater has to be installed, the Department will reimburse up to $350 for an electric water heater or up to $420 for a gas water heater, which includes the cost of installation.
B. Wells
If the water supply is a private well, the Mortgagee should turn off the well at the breaker panel and tape off the breaker, disconnect the water supply line between the property and pressure tank and install a hose bib on the pressure tank side of the breaker. The hose bib should then be tagged “For Water Testing". All pressure tanks should be drained. If pump is surface mounted, drain pump housing, ‑ if submersible, then disconnect the check valve and drain all pump, suction, and discharge pipes. All fixtures should be winterized.
C. Reduced
Pressure Zone Device (RPZ or RPZD)
A reduced pressure zone device (RPZ) is a type of backflow
prevention device used to protect domestic water supplies from
contamination. Mortgagees should contact
the local health departments and/or state and local agencies with regard to any
jurisdictional requirements for the installation and/or use of the RPZ device
on all wet heat systems. Mortgagees
should obtain two independent competitive bids and request
prior written approval from the M&M contractor if the cost of installation
of an RPZ valve exceeds $70.
III. Winterization
In
jurisdictions where winterization is required, properties are to be winterized
between October 1st and March 31st. For
exceptions to these winterization time periods, see the Local Variation from General Requirements
section on page 43. Properties should only be winterized
once. However, a property should be
re-winterized if the initial winterization is violated (no longer effective)
and the Mortgagee obtains prior approval from the M&M Contractor.
The
winterization process is to include cleaning toilets and a thorough and
complete draining of all plumbing and heating systems unless otherwise
specified by any local variation. Use of air pressure to clear the system or, in some cases, adding
antifreeze to the systems are both acceptable provided that the effect
prevents freeze-ups. All winterization
should be performed in accordance with state and local codes, ordinances and
regulations. Before and after
photographs are required along with any other supporting documentation to
support a claim for re-imbursement.
A. Dry Heat
Systems
The hot water heater and all domestic water supply and distribution piping should be thoroughly drained. All faucets and valves should REMAIN OPEN during the process, and then closed after draining is completed. Adequate amounts of antifreeze are to be placed in all fixture traps, including toilet tanks and bowls.
B. Wet Heat, Radiant, Hydronic or Hot Water Baseboard Systems
The winterization requirements outlined above apply. In addition, the house boiler system should be thoroughly drained. All radiator vents are to be opened in the process. Bleeder pins should not be removed from the radiators. Any radiant heat piping should be drained and blown dry with the use of an air compressor and an adequate amount of antifreeze is to be put in the radiant piping.
C. Steam Heat Systems
The winterization requirements outlined above for Dry Heat Systems apply. Note: A steam heat system will have radiators with valves at the bottom of the radiator; a careful determination as to whether the system is hot water or steam is important to ensure proper action is taken. The Mortgagee should determine if the system is operable and if there are any leaks. If any problems with the steam heat system exist, this information should be reported to the M&M Contractor. Additionally, the Mortgagee should thoroughly drain the property’s boiler system. All radiator vents are to be opened in the process and bleeder pins should not be removed from the radiators, before shutting down the heating system. Pressurize the system with an air compressor to 35 pounds and inspect for leakage. The expectation for a properly prepared system is that it will hold air pressure with no leakage for a minimum of one‑half hour.
IV. Repair
Bids
|
State |
Dry Heat
1 Unit |
Dry Heat
Additional Units |
Steam
Heat 1 Unit |
Steam
Heat Additional Units |
Wet/Radiant
Heat 1 Unit |
Wet/Radiant
Heat Additional Units |
|
|
$90 |
$50 |
$140 |
$90 |
$460 |
$230 |
|
|
$130 |
$50 |
$190 |
$90 |
$475 |
$465 |
|
|
$80 |
$50 |
$120 |
$90 |
$460 |
$230 |
|
|
$75 |
$50 |
$130 |
$90 |
$460 |
$230 |
|
|
$75 |
$50 |
$130 |
$90 |
$460 |
$230 |
|
|
$120 |
$50 |
$160 |
$90 |
$460 |
$230 |
|
|
$130 |
$50 |
$190 |
$90 |
$460 |
$230 |
|
|
$90 |
$50 |
$145 |
$90 |
$460 |
$230 |
|
|
$90 |
$50 |
$145 |
$90 |
$460 |
$230 |
|
|
$100 |
$50 |
$155 |
$90 |
$460 |
$230 |
|
|
$100 |
$50 |
$150 |
$90 |
$460 |
$230 |
|
|
N/A |
N/A |
N/A |
N/A |
N/A |
N/A |
|
|
$105 |
$50 |
$220 |
$90 |
$460 |
$230 |
|
|
$75 |
$50 |
$145 |
$90 |
$460 |
$230 |
|
|
$75 |
$50 |
$130 |
$90 |
$460 |
$230 |
|
|
$75 |
$50 |
$370 |
$90 |
$460 |
$230 |
|
|
$75 |
$50 |
$145 |
$90 |
$460 |
$230 |
|
|
$85 |
$50 |
$155 |
$90 |
$460 |
$230 |
|
|
$75 |
$50 |
$130 |
$90 |
$460 |
$230 |
|
|
$130 |
$50 |
$190 |
$90 |
$460 |
$230 |
|
|
$90 |
$50 |
$145 |
$90 |
$460 |
$230 |
|
|
$130 |
$50 |
$190 |
$90 |
$460 |
$230 |
|
|
$75 |
$50 |
$155 |
$90 |
$460 |
$230 |
|
|
$120 |
$50 |
$245 |
$90 |
$460 |
$230 |
|
|
$75 |
$50 |
$130 |
$90 |
$460 |
$230 |
|
|
$75 |
$50 |
$145 |
$90 |
$460 |
$230 |
|
|
$90 |
$50 |
$230 |
$90 |
$460 |
$230 |
|
|
$75 |
$50 |
$130 |
$90 |
$460 |
$230 |
|
|
$105 |
$50 |
$145 |
$90 |
$460 |
$230 |
|
|
$130 |
$50 |
$190 |
$90 |
$460 |
$230 |
|
|
$100 |
$50 |
$155 |
$90 |
$460 |
$230 |
|
|
$120 |
$50 |
$160 |
$90 |
$460 |
$230 |
|
|
$100 |
$50 |
$130 |
$90 |
$460 |
$230 |
|
|
$75 |
$50 |
$155 |
$90 |
$460 |
$230 |
|
|
$120 |
$50 |
$245 |
$90 |
$460 |
$230 |
|
|
$75 |
$50 |
$115 |
$90 |
$460 |
$230 |
|
|
$75 |
$50 |
$130 |
$90 |
$460 |
$230 |
|
|
$75 |
$50 |
$130 |
$90 |
$460 |
$230 |
|
|
$75 |
$50 |
$155 |
$90 |
$460 |
$230 |
|
|
$130 |
$50 |
$190 |
$90 |
$460 |
$230 |
|
|
$75 |
$50 |
$155 |
$90 |
$460 |
$230 |
|
|
$130 |
$50 |
$190 |
$90 |
$460 |
$230 |
|
|
$90 |
$50 |
$150 |
$90 |
$460 |
$230 |
|
|
$130 |
$50 |
$130 |
$90 |
$460 |
$230 |
|
|
$135 |
$50 |
$140 |
$90 |
$460 |
$230 |
|
|
$135 |
$50 |
$130 |
$90 |
$460 |
$230 |
|
|
$75 |
$50 |
$145 |
$90 |
$460 |
$230 |
|
|
$75 |
$50 |
$130 |
$90 |
$460 |
$230 |
|
|
$75 |
$50 |
$130 |
$90 |
$460 |
$230 |
|
|
$75 |
$50 |
$130 |
$90 |
$460 |
$230 |
|
|
$130 |
$50 |
$190 |
$90 |
$460 |
$230 |
Local Variations from General Requirements
Winterize year round, regardless of the month the property is secured. However, heat will remain in shut down mode. Utilities are to remain off unless required to operate a sump pump.
Do not winterize.
The water supply should be shut off at the curb. Notify utility companies to cancel all services. Do not drain the water heater or water lines. Do not winterize.
Winterize from September 1 through April 30
from
Winterization is required from September 1 through April 30. However, heat system will remain in shut down mode. Utilities are to remain off unless required to operate a sump pump.
Winterization
is required from September 1 through April 30. Utilities and heat are to remain
on.
Winterization is required from September 1 through April 30. Turn water off at meter in house ONLY. Heating system will remain in shut down mode. Utilities are to remain off unless required to operate a sump pump.
Turn water off at the
street after winterization in all
All properties should be winterized year round. Heat should be left on with the thermostat set at 55 degrees Fahrenheit. Properties should be conveyed with water, gas, and utilities ON. Propane and fuel oil delivery services should remain on automatic fill. Utilities should remain in the servicing Mortgagee's name until conveyance. The servicing Mortgagee is instructed and authorized to switch utilities into HUD's name effective on the date of conveyance.
Water service may be turned off at the street (key box) only if the property has a forced air or electric heating system and the domestic water system has been properly winterized.
Winterize properties above 2,000 feet only. However, heat system will remain in shut down mode. Utilities are to remain off unless required to operate a sump pump.
Hawaii/Pacific
Do not winterize.
No winterization except for
Pahrump zip code 89041 and
Winterize from September 15 through April 15. However, heat system will remain in shut down mode. Utilities are to remain off unless required to operate a sump pump.
Winterize from November 1 through March 31 only. However, heat system will remain in shut down mode. Utilities are to remain off unless required to operate a sump pump.
Winterize from September 15 through April 15. However, heat system will remain in shut down mode. Utilities are to remain off unless required to operate a sump pump.ATTACHMENT 8 Request to Exceed Cost Limits for Preservation and Protection
If the cost to perform required preservation and protection exceeds any individual cost limits or the overall cap shown in this Mortgagee Letter, the Mortgagee should request permission to exceed the maximum allowable expenses in writing using, Form HUD-50002, Requests to Exceed Cost Limit For Preservation and Protection. The Mortgagee should include documentation to substantiate the over-allowable expense with the request, including a line item bid for the individual work items to be performed.
Mortgagees may mail or fax their requests to the M&M Contractor’s office and by pre-arrangement with the M&M, may submit the requests electronically. Receipt of faxed requests should be confirmed by telephone.
The M&M Contractor will review and approve or disapprove over-allowable requests from Mortgagees within five business days of receipt. The M&M Contractor will evaluate all requests to increase line items on a case-by-case basis. With the exception of requests involving debris removal and repairs necessary for winterizations where two independent bids are mandatory, there is no requirement for the Mortgagee to submit multiple bids for other expense types.