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Memo 1100 Resecuring Within the Maximum Allowable Securing Fee 12/29/04
To: All SPI Contractors
From: Robert Klein
Memo 1100 Resecuring Within the Maximum Allowable Securing Fee
The question of whether resecuring requires pre-approval if it can completed within the Maximum Allowable Securing Fee has been debated since the Maximum A llowable Securing Fee was established. HUD recently provided clarification regarding their policy on this issue (see National Property Preservation Conference 2004 HUD Sessions Summary , bookmark number 7) .
HUD has affirmed that, if the cost of the initial secure does not consume the entire Maximum Allowable Securing Fee, additional expenditures to resecure the property may be made without pre-approval by HUD. Any resecuring costs that would exceed the Maximum Allowable Securing Fee, however, must be submitted to HUD for approval.
In response to this clarification, Safeguard has begun to list the cost s incurred to - date for securing on your work orders for FHA properties. If resecuring become s necessary and can be performed with out exceeding the Maximum Allowable Securing Fee, you should proceed to resecure the property. Complete photo documentation of any required resecuring must be submitted when you report the work done .
If you have any questions regarding this policy, please contact your regional coordinator. Thank you.
Kathy Cogan
Research & Development Manager
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