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MEMO
#1016: Wet Winterizations - 10/24/02
As you
know, wet winterization requirements under HUD Mortgagee Letter
2002-10 have expanded considerably from those outlined in
ML 97-31. In addition to adding a number of steps that were
not previously required, HUD has significantly reduced the
allowable cost for completing a wet winterization in most
areas of the country.
It is
very important that you familiarize yourself with the new
guidelines and that you perform wet winterizations in compliance
with these new requirements. Please refer to SEPTEMBER
MEMO 1002 on our website for details regarding
the new winterization requirements.
Our research
indicates that the actual cost of completing wet winterizations
per ML 2002-10 guidelines will significantly exceed the allowable
cost. For this reason, when we receive an update indicating
that wet winterization has been completed for the allowable,
we are concerned that that the new FHA guidelines have not
been followed. We therefore ask that
you clearly state on the update and document with photographs
that the wet winterization was performed according to the
ML 2002-10 guidelines.
For all
wet winterizations that cannot be completed within
the allowable, you must submit a detailed bid to complete
the wet winterization. Your detailed bid must include the
following line items, in this order:
1. Labor
cost to drain and pressure test the system
2. Material cost to fill the heating system with non-toxic
anti-freeze, including the number of gallons required and
the unit price
3. Cost to install the RPZ valve
4. Cost to start the system (this may include trip charge
to meet the utility company, outstanding utility fees or charge
to fill a fuel oil system)
Winterizations
bids must reflect reasonable costs for work performed.
Should
you have any questions about bidding a wet winterization,
please contact your regional coordinator.
Winterization Website Scripting
The new
winterization website scripting program requires you to submit
the number of photos billed for at the same time that you
submit the update. This feature was added intentionally, to
facilitate simultaneous processing of the update and billing.
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