7 CFR Appendix Exhibit K to Subpart A of Part 1924 - Exhibit K to Subpart A of Part 1924—Classifications for Multi-Family Residential Rehabilitation Work

I. General

This exhibit distinguishes between what the Agency considers maintenance and repair work, moderate rehabilitation and substantial rehabilitation. In all cases, the building or project to be rehabilitated shall be structurally sound. The applicant shall have a structural analysis of the existing building made to determine the adequacy of all structural systems for the proposed rehabilitation.

II. Definitions

Maintenance and Repair—Work involved in the selective replacement and general maintenance and repair of certain materials, appliances or components of an existing residential building.

Moderate Rehabilitation—All work directly involved in the rearrangement of interior space, the replacement of finish materials or components of the electrical, plumbing, heating or conveyance systems of an existing multi-family residential building. Work and improvements are considered to be more than routine maintenance and repair.

Substantial Rehabilitation—All work directly involved in the rearrangement of interior space that involves alteration of load bearing partitions and columns; the replacement of the electrical, plumbing, heating or conveyance systems; and the addition to and/or major conversion of existing multi-family residential buildings or other building structures.

Moderate rehabilitation and repair shall not be limited to building changes for cosmetic or convenience purposes. In all cases moderate rehabilitation shall involve a minimum of three (3) components of building rehabilitation listed as moderate. Unless combined with other improvements in a project that are considered to be moderate or substantial rehabilitation the items identified as maintenance and repair are considered to be cosmetic and convenience changes.

When a rehabilitation project consists of both moderate and substantial rehabilitation components, those substantial rehabilitation components shall be in accordance with the Agency's development standards and local codes and regulation requirements. Where the majority of project components of building rehabilitation are considered substantial the project shall be considered in the substantial rehabilitation category.

Those site components of rehabilitation such as landscaping, grading, drainage, fencing, parking areas, recreation areas, water and waste disposal systems, etc., whether considered either maintenance and repair, moderate rehabilitation or substantial rehabilitation shall be in accordance with the Agency's development standards for site development work; all local codes and regulation requirements; and sound engineering and architectural practices.

Any alteration of a structure listed or eligible for listing on the National Register of Historic Places may be considered either moderate or substantial rehabilitation; however, it shall conform first to the Secretary of the Interior's Standards for Rehabilitation and Guidelines for Rehabilitating Historic Buildings and then to the Agency's requirements. In cases where the Secretary of the Interior's standards cannot be met, rehabilitation will conform to the agreed upon approaches, treatments and techniques resulting from the consultation process between the Agency, the borrower, the State Historic Preservation Officer and the Advisory Council of Historic Preservation.

III. Components of Multi-Family Building Rehabilitation

The components of multi-family building rehabilitation necessary and generally considered by the Agency to be either maintenance and repair, moderate rehabilitation or substantial rehabilitation include but are not limited to those listed in the following chart.

Components of Multi-Family Building Rehabilitation

Components	Maintenance and repair	Moderate rehabilitation	Substantial rehabilitation
Air conditioning	o
Appliance replacement or repair	o
Cabinet replacement or repair	o
Carpeting	o
Caulking	o
Ceiling framing	o
Clothes closets or shelving improvements	o
Door repair	o
Drywall repair	o
Gutters and downspouts	o
Hardware replacement or repair	o
Kitchen cabinet improvement	o
Lighting fixture replacement or repair	o
Mail boxes	o
Painting	o
Paneling	o
Partition repair	o
Roof repair	o
Signage	o
Stair repair	o
Tile work	o
Wallpapering	o
Window shades and curtains	o
Door replacement		o
Drywall replacement		o
Elevator components replacement		o
Exterior entrance redesign, relocation		o
Finish flooring materials		o
Flashing		o
Furnace replacement		o
Gas pipes		o
Insulation		o
Lath and plaster replacement		o
New shingles or roof replacement		o
Partition (nonbearing) replacement, or relocation		o
Plumbing fixture replacement		o
Pointing		o
Porch and steps alterator or replacement		o
Stair replacement, or relocation		o
Storm windows and weatherstripping		o
Subfloor material replacement		o
Trim—exterior and interior		o
Window replacement		o
New or alteration to the:
Mechanical system			o
Soil pipes			o
Vent pipes			o
Waste pipes			o
Alteration or replacement of structural components:
Beams
Chimneys and vents			o
Columns and post			o
Electrical service—replacement or new			o
Elevator replacement			o
Exterior walls			o
Floor construction			o
Footing			o
Foundation wall			o
Foundation waterproofing			o
Interior walls			o

Moderate repair and rehabilitation shall not be limited to building changes for cosmetic purposes. In all cases moderate rehabilitation shall involve a minimum of three (3) components of building rehabilitation listed as moderate. Unless combined with other improvements in a project that are considered to be moderate or substantial rehabilitation the items identified as maintenance and repair are considered to be cosmetic and convenience changes.