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AYBR Program Administration

Lesson 8: Inspection and the work write-up

Module 4, The project · 14 practice questions

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Reading

Once the Department approves your reservation setup and issues the Household Assistance Contract, the project moves to Stage 2, the Work Write-Up and Cost Estimate. Everything that follows, from bids to the final inspection, depends on what you write here. The write-up decides what the grant buys, and a good one protects the household, the contractor and GCHS alike.

Who may inspect

The Program Manual (May 2025), pages 19 and 20, says the Administrator must certify that the inspector has sufficient professional certifications, relevant education or experience in a field directly related to home inspection. The inspector may be Administrator staff or a contracted third party, and must know the codes, product safety notices, building systems and local rehabilitation costs. The RSP application asks for completed Qualified Inspector Certification forms. Keep those forms current in the Program File.

GCHS procedure. GCHS provides inspections, estimating and construction management, not hands-on repair labor. GCHS staff who inspect or estimate a job never bid on it. That separation lets GCHS give an honest scope.

What the initial inspection must do

10 TAC 26.27(a)(1) says the initial inspection must identify the accessibility modifications the person with a disability needs, document the condition of the property, and identify all deficiencies that are life-threatening hazards or unsafe conditions. The household's needs come first. Talk to the person with the disability about what they cannot do at home today, and watch them move through the house. A ramp that matches a drawing but does not fit how the person actually moves is a poor result, however well it is built.

The manual (page 20) calls for photographs of all four sides of the exterior and of every room inside, labeled "Before." On the exterior, look at the roof, doors and windows, porches and steps, gutters, foundation, drainage, the path of travel, the electrical service entry and the HVAC equipment. Inside, check outlets and the bedroom egress windows. The head of household signs the initial inspection (manual, page 10). Deficiencies that are neither accessibility needs nor hazards may not be eligible for the scope (manual, page 19), so keep the scope on what the grant is for.

10 TAC 20.9, the inspection section of Chapter 20, does not apply to AYBR. It says so in 20.9(a), and the manual (pages 22 and 23) agrees. AYBR inspection rules are in 26.27(a) and the manual. The manual does repeat some Chapter 20 wording as AYBR procedure, so follow the manual, but remember its source. Interim inspections are optional (manual, page 25), although the Department may make periodic construction site visits.

Accessibility standards

10 TAC 26.27(c)(2) says modifications are made with consideration to the 2010 ADA Standards and may vary from those standards to meet specific accessibility needs, as agreed with the household. The manual (page 22) refers to the 2010 ADA Accessibility Standards and Texas Government Code 2306.514. The rule governs, and its word is consideration. The ADA Standards are a guide you can adjust to the person, not a strict checklist, so record in the file why you adjusted a dimension or feature.

The hazard list

10 TAC 26.27(d)(2) lists the deficiencies that count as life-threatening hazards and unsafe conditions. They include, but are not limited to: electrical, gas-fueled, heating and cooling, plumbing and sewer systems; smoke, fire and carbon monoxide alarms; structures near collapse; mold, lead-based paint, asbestos or radon; serious pest infestation; missing emergency escape openings and fire egress; and missing GFCI and AFCI protection. The manual gives a similar but slightly different list. The rule governs.

The 25 percent and 40 percent caps

Hazard repairs are limited. 10 TAC 26.27(d)(1) says no more than 25 percent of the Project Hard Costs budget may go to hazards, unless the Department approves a different ratio. Under 26.27(d)(3), a few items may exceed 25 percent by the amount of that line item's cost: escape and rescue openings, fire egress, GFCI, AFCI, and smoke, fire and carbon monoxide alarms. Even so, the combined total of all hazard and unsafe-condition repairs cannot exceed 40 percent of the Project Hard Costs budget.

What base do you use? The manual's wording on page 21 refers to "Program funds," but its sentence opens with "In a Household's construction contract," and page 22 repeats the 40 percent cap on the Project Hard Costs budget. Teach the rule's base: the Project Hard Costs budget. It is also the stricter base, because Hard Costs are about 91 percent of project funds. One point is open: when the final contract comes in below the reserved Hard Costs, the sources do not say which figure the caps use. Until the Department answers, size the caps on the lower figure.

Hard Costs budget25 percent (ordinary hazards)40 percent (combined ceiling)
$20,455 (default at $22,500)$5,113.75$8,182
$18,000$4,500$7,200
$15,000$3,750$6,000

Why this matters

Hazard repairs are real needs, but the grant exists for accessibility. The caps keep the money pointed at the household's disability while still forcing you to make the home safe. A write-up that spends too much on hazards without Department approval is exactly the kind of problem a monitor can flag.

A worked example

The Okafor household, a made-up family, receives a reservation at the maximum, so the Hard Costs budget is $20,455. The initial inspection finds an electrical panel that needs repair ($3,100) and a leaking drain line ($1,400). Together these ordinary hazards cost $4,500, under the $5,113.75 line. The inspector also finds a bedroom with no egress window ($1,900), outlets in the bathroom that lack GFCI protection ($300), and missing smoke and carbon monoxide alarms ($200). Those three items cost $2,400 and are the kind the rule lets go past 25 percent.

Total hazard spending is $4,500 plus $2,400, or $6,900. That is above the 25 percent line but below the $8,182 ceiling, so the scope fits. The rest, $20,455 minus $6,900, leaves $13,555 for the roll-in shower, grab bars and ramp the household needs. Now change one fact. Suppose the ordinary hazards had come to $6,000 instead. That is over $5,113.75, and the exceptions do not cover plumbing and electrical repairs. The options are to ask the Department to approve a different ratio under 26.27(d)(1), to add leveraged funds (manual, page 16), or to walk away.

Hazard caps on the Hard Costs budget A bar representing a Hard Costs budget of $20,455, which is the default at the $22,500 maximum. The first 25 percent, $5,113.75, is the limit for ordinary hazard repairs. Escape openings, fire egress, GFCI, AFCI and smoke, fire and carbon monoxide alarms may go past 25 percent, but combined hazard spending can never go past 40 percent, $8,182. The remaining 60 percent or more is accessibility modifications. Project Hard Costs budget at the $22,500 maximum: $20,455Up to 25%$5,113.75To 40%$8,182 totalAccessibility modificationsThe remaining 60% or more25% line: ordinary hazards40% line: combined ceilingThe first slice covers ordinary hazard repairs. Alarms, GFCI, AFCI and escape or fire egressopenings may go past 25% by their own cost, but never past 40% in total (10 TAC 26.27(d)).
Hazard repairs are capped at 25 percent of the Hard Costs budget, with a few life-safety items allowed to push the total as high as 40 percent.

Hazard work cannot be dropped to save money

The manual (page 23) says hazard work may not be deleted from the scope because of budget limitations or because the applicant does not consent. That may force a walk-away. If the estimate exceeds the budget, the Administrator must commit supplemental funding or risk cancellation. The rule sets the standard at the end: the home must be free of life-threatening hazards and unsafe conditions at project completion (10 TAC 26.27(d)(4)). A home you cannot make safe is a home you should not start.

Rentals have an added rule. When the initial inspection finds substandard and unsafe conditions in a rental, the owner must correct them at the owner's own expense first, and the inspector must re-inspect and update the form before accessibility work proceeds (10 TAC 26.26(c)(3); manual, page 21).

Codes and energy rules

10 TAC 26.27(c)(1) requires you to follow local codes, as Local Government Code 214.212 provides. Where local codes do not exist, the 2015 International Residential Code, including Appendix J, is the code. Administrators must also follow Chapter 21 of the Department's rules (26.27(c)(3)). The manual (page 22) names Rule 21.6 for housing rehabilitation. The draw needs an Administrator Certification of Energy Efficiency Rule Compliance (manual, page 27), so plan for it at the write-up stage. The text of Rule 21.6 was not reviewed for this course, so read it before you rely on a specific energy requirement.

Lead, septic and the unknowns

Lead-based paint is on the rule's hazard list. In a pre-1978 home, the manual (page 23) says only an EPA-certified firm may rehabilitate, renovate or demolish, and only an EPA-certified Lead Renovator may oversee the work. Lead testing can be charged as a Soft Cost (manual, page 9). The sources reviewed do not state federal thresholds, so ask when a question comes up.

Septic systems have their own step. The manual (page 20) says all on-site sewage facilities must be inspected by an authorized agent of the Texas Commission on Environmental Quality before the write-up, unless the Department waives this case by case. The report is uploaded at Stage 2 (manual, page 10). The sources reviewed say nothing about NEPA or historic review, so do not tell a household that any such review is or is not needed.

Writing the work write-up

The manual (page 23) says each specification in the write-up must state the materials, performance standards, quantity, method of installation, location and special conditions, along with a description of the accessibility modification. Vague items such as "repair bathroom" invite change orders later, and bidders cannot price them. Name the door width, the hinge type, the trim and the paint instead, using whatever your inspector has measured and verified.

The household, and the owner and tenant for a rental, must acknowledge agreement with the final Department-approved work write-up by signing and dating it (manual, page 23). The inspector and the Administrator sign the write-up and cost estimate for the Stage 2 submission.

The key sequence is this. Under 10 TAC 26.27(e), the Department reviews the work write-up and cost estimate before the Administrator solicits bids. The Department's target is 14 calendar days for Stage 2 (manual, page 19), and the 14-day cure period applies if the submission is incomplete. Do not send out requests for bids, or discuss prices with a contractor in a way that implies a decision, until the approval comes back. If the approval is late, check the Reservation System status, and do not guess.

What to remember

  • The initial inspection documents accessibility needs, property condition and every life-threatening hazard, with "Before" photos.
  • Ordinary hazard repairs are capped at 25 percent of the Hard Costs budget. Alarms, GFCI, AFCI and egress items may pass 25 percent but the total never passes 40 percent.
  • Hazard work cannot be cut to save money. If the home cannot be made safe within budget and leveraged funds, walk away.
  • Use local code, or the 2015 IRC with Appendix J where none exists. The ADA Standards are a guide.
  • Pre-1978 homes need EPA-certified lead work. Septic is inspected first unless waived.
  • The Department approves the write-up and estimate before you solicit bids.

Practice questions

1. Which of these must the initial inspection under 10 TAC 26.27(a)(1) do?

  1. Estimate the final contractor price and set the bid amount, so that bidding opens with a number every bidder must meet.
  2. Confirm that the household's income is under the limit, because the inspector is the last check on eligibility papers.
  3. Certify that every bidding contractor carries insurance, so the construction contract can be signed immediately.
  4. Identify needed accessibility modifications, document property condition, and identify all life-threatening hazards.

2. Who may serve as an AYBR inspector under the manual?

  1. Only a person with a state engineering license, who must be on the Administrator's payroll for the whole program term.
  2. A person the Administrator certifies as having enough certifications, education or experience in a field directly related to home inspection.
  3. Any contractor who bids on the job, since contractors know best which repairs the home needs and what they cost.
  4. Only a Department employee, because Administrators are not allowed to inspect their own projects under the rule.

3. A household's Hard Costs budget is $18,000. What is the 25 percent limit on ordinary hazard repairs?

  1. $4,500, or 25 percent of the Hard Costs budget.
  2. $5,625, or 25 percent of the $22,500 grant.
  3. $7,200, or 40 percent of the Hard Costs budget.
  4. $2,250, or 10 percent of the Hard Costs budget.

4. Which hazard item may go past the 25 percent line, up to the 40 percent combined ceiling?

  1. Repairing a damaged electrical panel in the home.
  2. Rebuilding a plumbing drain line under the bath.
  3. Adding a missing bedroom escape window.
  4. Repairing a failing heating system in the home.

5. A household's Hard Costs budget is $20,000. Ordinary hazard repairs are $4,000 and the exempt items (egress, GFCI and alarms) are $5,000. May the scope stand as written?

  1. Yes, because the ordinary hazards are under 25 percent and the exempt items are not counted.
  2. No, because the $9,000 total is above the $8,000 ceiling, which is 40 percent of $20,000.
  3. Yes, because the 40 percent cap applies only to ordinary hazards.
  4. No, because the 25 percent cap applies to the combined total, which is $5,000.

6. For the caps, what is the base?

  1. The $22,500 maximum grant, including Soft Costs and the administrative fee.
  2. The total of all bids received for the job.
  3. The household's annual income.
  4. The Project Hard Costs budget, meaning the construction costs.

7. The estimate for a home exceeds the available budget, and the largest item is a hazard repair. What does the manual say?

  1. Hazard work may not be deleted because of budget limits, so GCHS must commit supplemental funding or may have to walk away.
  2. Delete the hazard item, because accessibility work always takes priority over safety work in the grant.
  3. Delete the hazard item if the household agrees in writing that it does not want the repair made.
  4. Ask the contractor to do the hazard work separately and off the books so the budget is unaffected.

8. A county has no adopted local building codes. Which code applies to AYBR work?

  1. The 2021 International Building Code, which covers all residential work in the state.
  2. No code applies at all without a local adoption, so the contractor sets the standard.
  3. The 2015 International Residential Code, including Appendix J, as the code where none exists locally.
  4. Whichever code the contractor prefers, as long as it is written into the construction contract for the home.

9. How should the 2010 ADA Standards be used in an AYBR write-up?

  1. As a strict checklist that no feature of the work may depart from under any circumstances at all.
  2. As irrelevant to housing work, because the Standards apply only to commercial buildings and to public places and facilities.
  3. As an optional document to be consulted only if the Department asks for it during a monitoring review.
  4. As a guide that is considered and varied to meet a household's specific needs, as agreed with the household.

10. A home was built in 1962 and has peeling paint. Which statement is correct?

  1. Any contractor may do the work if the household signs a waiver acknowledging the lead paint risk.
  2. Only an EPA-certified firm may renovate it, and only an EPA-certified Lead Renovator may oversee the work.
  3. The Department performs all lead work itself, so GCHS only schedules the visit with the household and contractor.
  4. Lead rules apply only to rentals, so an owner-occupied home may be treated like any newer house.

11. A home has a septic system. What must happen before the work write-up?

  1. An authorized TCEQ agent inspects it, unless the Department waives this case by case, and the report is uploaded at Stage 2.
  2. The contractor inspects it after bids are received, and the report is filed with the final draw package.
  3. Nothing is required, because septic systems are never part of an AYBR project or its write-up.
  4. The household inspects it and signs a statement that the system works, which is uploaded at Stage 2.

12. When may GCHS ask contractors to bid on a job?

  1. As soon as the initial inspection is complete, to save time and keep the household from waiting.
  2. After the household and contractor have already agreed on a price between themselves for the job.
  3. After the Department has reviewed and approved the work write-up and cost estimate.
  4. Only after the final inspection, when the finished work can be compared with a contractor's price.

13. A rental unit has unsafe wiring found at the initial inspection. What comes first?

  1. AYBR pays for the wiring from the accessibility budget first, and then builds the ramp and the other work afterward.
  2. The owner corrects it at the owner's own expense, the inspector re-inspects, then accessibility work proceeds.
  3. The tenant pays for the wiring out of pocket, and then AYBR builds the ramp once it is done.
  4. The unit is accepted as it is, because rentals are exempt from the hazard rules in the rule.

14. The AYBR draw needs which energy-related document, according to the manual?

  1. A utility bill from the household showing the monthly energy cost before and after the work was done.
  2. A building permit signed by the household and returned to the contractor before the work began.
  3. A letter from the product manufacturer stating that each installed item meets the energy standard.
  4. An Administrator Certification of Energy Efficiency Rule Compliance, tied to Chapter 21 of the rules.

Glossary

Initial inspection
The first inspection at Stage 2, documenting accessibility needs, property condition and hazards, with "Before" photos.
Work Write-Up
The scope of work, specifying materials, standards, quantity, method, location and special conditions.
Cost Estimate
The Administrator's estimate of the work, reviewed by the Department with the write-up before bids are solicited.
Life-threatening hazard
A deficiency on the rule's hazard list, such as bad wiring, a failing structure, mold or missing egress (10 TAC 26.27(d)(2)).
GFCI and AFCI
Electrical protection devices named in the rule; missing protection is a listed hazard, and these items may go past the 25 percent line.
Project Hard Costs budget
The Hard Costs budget for the activity, which is the base for the 25 percent and 40 percent caps.
Walk-away
The Administrator's decision not to proceed on a home, for example when it cannot be made safe within budget.
Appendix J
The part of the 2015 International Residential Code that the rule includes as the code where no local code exists.
Lead Renovator
An EPA-certified person who must oversee work on pre-1978 homes.