Form HUD-92556 Contruction Complaint for New Contructed Property

Construction Complaint
for New Constructed Property

U.S. Department of Housing
and Urban Development
Office of Housing
Federal Housing Commisioner

OMB No. 2502-0047 (exp. xx/xx/xxxx)

All submissions must be signed.
See page 2 for information on the Section 518(a)
Public reporting burden for this collection of information is estimated to average 30 minutes per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. This
information is required to obtain benefits. HUD may not collect this information, and you are not required to complete this form, unless it displays a
currently valid OMB control number.
Section 2(a) of the National Housing Act authorizes the Secretary of the Department of Housing and Urban Development to insure qualified financial
institutions against losses involved in mortgage insurance. Regulations at Basic Laws on Housing and Community Development, Section 801(a) detail
the requirements for eligibility of the property and Section 518(a) detail requirements to request financial assistance if the property is considered
unsafe. This information collection is used to provide orderly processing of homeowner complaints by listing complaint items that the builder is
responsible to correct as provided for in a warranty of completion and conformance. While the information is considered confidential, HUD does not
pledge assurances of confidentiality to respondents. HUD generally discloses this data only in response to a Freedom of Information request.
Privacy Act Statement: The information provided will be used to determine whether you are eligible for assistance in correcting your construction
complaint. The information may be disclosed to the person or firm about which you are complaining to try to resolve the complaint. It may also be
disclosed to the organizations listed in the HUD’s Automated Systems of Records, Dept. No. 10, Construction Complaints Files published yearly in the
Federal Register for purposes of investigating or placing restrictions on builders. You are not required by law to provide this information, however, failure
to provide the information will result in a delay of any action HUD may take to provide assistance or in denial of assistance. HUD is requesting this
information under the authority provided by Sections 518 and 801 of the National Housing Act (P.L. 479, 48 Stat. 12, 12 USC 1701, et seq.).

1. Property Address:

2. FHA Case No: (if unknown, contact lender)

3. Mortgagor’s (HomeOwner/Borrower) Name(s):

4. Date Property was Purchased:

3a. Mortgagor’s Address (if different from the property address above):

3b. Mortgagor’s Phone No:
Home:
Work:
5a. Builder’s Phone No:

5. Builder’s Name & Address:

6. Mortgagee’s (Lender) Name & Address:

7. Is the Title to the property
in Your Name?

Yes

No

8. Are You an Occupant
of the Property?

Yes

9. You Brought the Property as:

a New
House

No

an Existing
House

10. List, in detail, the construction defects in the property. Include any documentation supporting the claim.
Please list seperately any items that you consider a structural defect: (Attach a seperate sheet of paper if you need more space.)

If you have a 10-year warranty, enter the:
11a. Enrollment No:

11b. Name of the Plan:

12. If you bought this house as a new house, describe efforts you have made to obtain
correction of the defects by the builder and/or the 10-year warranty company:

Signature of Mortgagor:

Signature of Mortgagor:

X

X

Replaces forms HUD-92556-SFA and all
previous version of HUD-92556

13. Date the Builder/Warranty Co. was
First Notified in Writing of this Complaint

Date:

form HUD-92556 (10/2002)
ref. Handbook 4070.1

An existing home that was previously lived in is not eligible for HUD
assistance if a complaint occurs about the condition of the home.
HUD requires an appraisal only to determine the acceptability of the
property as security for an insured mortgage and to arrive at an estimate
of value for mortgage insurance purposes. As a result, HUD does not
guarantee or certify that a structure is free of defects. Prior to buying the
home, the buyer was responsible to inspect the property carefully or
obtain the services of a private inspection service to determine the
condition of the property. If there are problems with your existing home
and you believe that the seller or the realty agent has acted contrary to
your understanding of the sales agreement, HUD can only suggest that
you contact an attorney familiar with real estate transactions to discuss
your possible remedies.
If you bought a new home and HUD accepted the plans and specifications before construction began, or if you have a 10-year warranty on
your home, the builder is required to give you a warranty (See forms
HUD-92544 and -92544– A that you received when you closed your loan
with your mortgage lender.) The warranty covers defects in labor and
materials on your property and is for one year following the date on which
title is transferred to the original buyer or the date on which the house
was first lived in, whichever happens first. If, during the warranty period,
you notice defects for which you believe the builder is responsible, ask
the builder in writing to fix them. If the builder does not fix the defect (s),
and you have a 10-year warranty, use their complaint form and send it to
them. If you do not have a 10-year warranty or the10-year plan will not
assist you, send this form to your mortgage lender. If your lender cannot
help you they will forward it to the local HUD Field Office for their help in
obtaining correction of the defect (s). If inspection shows the builder to
be at fault, the Direct Endorsement Lender or HUD will try to persuade
the builder to fix the defect (s). If the builder does not, you may be able to
obtain legal relief under the builder’s warranty by contacting an attorney
familiar with real estate transactions. You cannot expect the builder to fix
damages caused by ordinary wear and tear or by poor maintenance.
Keeping the house in good condition is your responsibility.
Where a structural defect (s) is involved, HUD may provide financial
assistance to make the corrections under certain conditions. The
homeowner and the property must meet all of the following statutory
requirements in order to qualify; if the request is received even one day
late, the law will not permit HUD to provide assistance.
1. The dwelling must be a one-to-four family structure covered by an
individual FHA insured mortgage.
2. The dwelling must have been approved for mortgage insurance or
Veterans Administration loan guaranty prior to the beginning of construction and acceptably completed under HUD or VA inspection.
Note to VA buyers: A VA Guaranteed property is not Eligible
for Section 518 (a) assistance even though inspection during construction
was made by HUD. Similar legislation for VA loan guaranty is provided in
Section 1827 of Title 38 of U.S. Code.
3. The request for assistance (form HUD – 92556, or other documented
notification of he structural defect) must be filed with the HUD Field Office

Request for
Financial
Assistance
(Applicable for Section
518 (a) Program Only.
See below for
clarification)

Amount Paid for Property:

not later than four years after the date of the first Mortgage Insurance
Certification (form HUD–59100) issued in connection with the property. If
HUD erroneously closed a complaint file without notification to the
homeowner of a perceived potential structural defect, or failed to perceive
a potential structural defect during its processing of a written homeowner
complaint, notification requirements will be considered to have been met
by the homeowner provided it is reasonable to conclude that the claimed
structural defect assuredly developed within the four-year statutory
notification period.
A mortgagor that assumes the HUD mortgage, or puts a new HUD
mortgage on the property, is entitled to file provided it is filed within the
same four-year period following the date of the first Mortgage Insurance
Certificate and provided there is no break in mortgage insurance coverage
and the property was originally endorsed for mortgage insurance as
proposed construction.
4. The contract of mortgage insurance must be in force as of he date the
homeowner’s request is received, although mortgage payments may be in
default.
5. The homeowner must have made reasonable efforts to obtain corrections of the structural defect by the builder, the 10-year warranty company,
or other responsible person.
Definition of Structural Defect. For the purpose of implementing
Section 518 (a), a structural defect is something that threatens the
structural components of the dwelling. The defect may be due to
construction, material, workmanship, or latent unpredictable phenomena.
1. The team structural defect includes, but is not limited to:
a. Actual structural failures directly affecting the basic integrity of the
dwelling and seriously affecting its livability, such as substantial defects in
the foundation, footings, slabs, floors, framing or roof.
b. Major defects, substantial faults, failures, omissions or critical unpredictable deficiencies relating to the structural components of the property, i.e.
dangerous wiring, basement flooding, or failure of individual sewage
disposal or water supply systems.
2. Defects in manufactured basic home equipment (furnace, air
conditioner, water heater) are covered by the manufacturer warranty and
normally are not eligible for financial assistance. The homeowner may
obtain relief from the manufacturer for defects in these items. If a defect
develops in any of these basic pieces of equipment that is clearly not due
to manufacture, or the manufacturer refuses to make correction, financial
assistance may be offered.
3. Defects in appliances that are easily removed, such as clothes
washers, dryers, kitchen ranges and refrigerators are not eligible
for financial assistance.
4. Defects in finishing materials, such as paint, stain, or decorative
nonstructural exterior surface coatings, are not eligible for financial
assistance unless the problem is the direct result of a structural defect.
5. Assistance is not available when the structural defects are caused
by fire, earthquakes, flood and tornado, or other natural peril usually
covered by property casualty insurance, or by failure of her homeowner to
properly maintain the property.

Amount of Down Payment:
(Explain any down payment other than cash)

How many Mortgage
Payments have been Missed?

We, the undersigned, certify that we are the sole lawful owners of this property and we understand that only the lawful
owners of a property are entitled to apply for special relief under the We agree that if HUD provides us with assistance to
correct structural defects in the property, the Secretary of HUD is given all rights, equities and remedies that we may have
against the builder, seller or other persons, arising out of the defects so corrected and the Secretary is authorized to sue,
compromise or settle in our name for this purpose. We understand that this agreement means that HUD will be entitled to
all money damages and other relief to which we would have been entitled.

Signature of Mortgagor:

X
Replaces forms HUD-92556-SFA and all
previous version of HUD-92556

Signature of Mortgagor:

Date:

X
form HUD-92556 (10/2002)
ref. Handbook 4070.1