This projection of costs is how HUD justifies loaning you more money upfront to implement the improvements. All construction must conform to local codes and HUD minimum property standards for rehabilitation of an existing structure. The following is a synopsis of improvement options available to borrowers.

Energy conservation improvements:

Program funds may be used on new double pane windows, insulation, and solar domestic hot water systems.

To improve the thermal efficiency of the dwelling, the following steps are required:

Weather-strip all doors and windows to reduce infiltration air when existing weather-stripping is inadequate or nonexistent. Caulk or seal all openings, cracks or joints in the building envelope to reduce air infiltration. Insulate all openings in exterior walls where the cavity has been exposed as a result of the rehabilitation. Insulate ceiling areas where necessary. Adequately ventilate attic and crawl space areas.

Replacement Systems:

Heating, ventilating and air-conditioning system supply and return pipes and ducts must be insulated whenever they run through unconditioned spaces. Heating systems, burners and air-conditioning systems must be carefully sized to be no greater than 15% oversized, except to satisfy the manufacturers’ next closest nominal size.

Smoke detector:

Each sleeping area must be provided with a minimum of one approved, listed and labeled smoke detector installed adjacent to the sleeping area. The detector must sense visible or invisible particles of combustion.

Structural alterations and reconstruction:

Funds may be used for additions to the structure, finished attics, repair of termite damage and the treatment against termite infestation, etc. Funds may be used for changes to improve functions and modernization of remodeled kitchens and bathrooms.

Elimination of health and safety hazards:

Improvements may include the resolution of defective paint surfaces and/or lead-based paint problems on homes built prior to 1978.

Changes for aesthetic appeal and elimination of obsolescence allow for reconditioning or replacement of:

Plumbing including connecting to public water and/or sewer system. Heating, air conditioning and electrical systems. Roofing, gutters and downspouts. Flooring, tiling and carpeting. New exterior siding

Major landscape work, site improvement, patios and terraces that improve the value of the property equal to the dollar amount spent on the improvements or required to preserve the property from erosion

Improvements for accessibility to the handicapped

Reference

(2010) The U.S Department Of Housing and Urban Development