Property Preservation

To: All SPI P&P Contractors
From: Robert Klein
Memo 1108 P&P Grass Cut Season 2005

With warmer months and yard maintenance season quickly approaching, one of our primary objectives is to assure that we are efficiently servicing our clients� grass cut needs. We rely on your help to properly maintain properties on your grass cut list and ensure that they are appropriately protected to avoid violations and citations.

We want to take this opportunity to alert you to the procedures implemented to address common grass cut issues. Please note that the previously released �Frequently Asked Questions� memo is also available for your review on the contractor website (P&P FAQ). Reviewing this document and the points highlighted below will help you to remain in compliance with Safeguard�s procedures.

* Read your work order in its entirety as some clients may have special requests.

* Ensure that each property on your grass cut list is maintained at the frequency requested. Bids for overgrowth will not be accepted if grass cut was not attempted in a timely manner. It is also imperative that grass cuts be completed on time to eliminate the possibility of violations.

* Check grass cut due dates on our website. Grass cuts that are 10 days delinquent without any communication have the potential of being reassigned. The contractor that was responsible for the grass cut work order will be charged back a re-assign fee of $50 per grass cut plus the cost of the grass cut.

* Monitor the weather in your area. If you are in an area that is snow-covered during grass cut season, do not report to the property. Updates advising the yard is snow-covered are not accepted by our clients.

* Do not submit additional charges due to distant orders as these are not reimbursable by HUD. If you are completing a grass cut out of your area and there is a problem with distance, contact your regional coordinator prior to completing the work order.

* Submit photos that clearly document the quantity and location of exterior debris if you report that the grass cannot be cut due to the presence of exterior debris. Swing sets, barbecue grills, bird baths, picnic tables, sandboxes, patio furniture, lawn ornaments, flower pots, clothing lines, dog houses, and playhouses are not to be considered debris. Cut the grass around these items to the best of your ability. Pay close attention to those clients who request a bid to move debris to the side or outbuilding in addition to a bid to remove debris.

* Enter all post-sale FHA properties and advise if the property is in convey condition. The initial grass cut work order will indicate if the property is post-sale. If a property becomes post-sale while the property is on your grass cut list, an updated work order will be sent. Refer to Memo 1018 dated 10-30-02 and Memo 1024 dated 12-24-02 for convey condition requirements. Be sure to submit bids to put the property in convey condition if you report that a property is Not In Convey Condition.

* Follow the FHA guideline allowables for initial grass cuts and re-cuts in your state. Bids will not be accepted for recuts on lots less than 15,000 sq. ft. Bids will also not be accepted for initial cuts on lots less than 15,000 sq. ft. unless there is clear photo documentation showing grass and/or weeds over 1 foot tall or another justifying condition.

* Do not submit recut bids if the initial grass cut was performed for the allowable. These bids will not be accepted by our clients or HUD.

* Note the following guidelines when calculating bid amounts to be submitted. These are not pre-approval amounts, rather a means to identify appropriate bids.

For initial cuts on lots over 15,000 square feet, add an additional $20.00 per 5,000 square feet over the 15,000 square foot allowable. For example, the bid for an initial cut on a 25,000 sq. ft. lot in OH would be $125.00. This was calculated by $85.00 (15,000 sq. ft. allowable) + $40.00 (the additional 10,000 sq. ft.).

For recuts on lots over 15,000 square feet, add an additional $10.00 per 5,000 square feet over the 15,000 square foot allowable. Recuts would be calculated the same as above using the re-cut price for 15,000 sq. ft. + $20.00.

For lots over one acre (approximately 40,000 sq. ft.), submit initial and recut bids to perform a perimeter cut and to cut the entire lot.

Initial cut and recut bid amounts should not be equal to each other.

*****Please remember that all bids must be justified by the photos submitted*****

Thank you again for your continued cooperation. Only with your dedicated assistance are we able to provide our clients with the superior service and safeguard there interest.

If you have any questions regarding this memo, please contact your regional coordinator.