A. Title II Insured Housing Programs Forward Mortgages 9. 203(k) Consultant Requirements Handbook 4000.1 528 Last Revised: 8/12/2026 Required Work Item: When feasible, connect to public sewer system where available. 28. Electrical. Describe electrical work to be performed, such as: install 100 amp service; replace frayed exterior wire from service to main and into exterior panel box; install new ceiling light wall switches; install new lighting fixtures at (____); install new exterior lighting; replace wall receptacles; install three-way switch; install smoke detectors; install exterior wall exhaust fan(s); etc. Most estimates must be based on per unit and lump sum projections. Required Work Items: The amp service must be upgraded to the greater of 100 amp or local code. Each sleeping area must be provided with a minimum of one approved, listed and labeled smoke detector installed adjacent to the sleeping area. Smoke detectors may be battery powered when installed in existing or rehabilitated Structures. However, where new construction is being added to an existing building, the smoke detector must receive its primary power from the building wiring, in conformance to local codes and ordinances. 29. Heating. Describe heating and air conditioning work to be performed, such as: install new forced warm air heater; install new hot water boiler; install automatic flow control valve; install temp control valve at boiler; install heat supply outlet in each room; install high performance items such as geothermal heating and cooling, wind energy systems or photovoltaic systems; etc. Most estimates must be based on per unit and lump sum projections. Required Work Items: If a new heating/cooling system is proposed, the Consultant must ensure that the contractor properly sizes the system. New heating systems, burners and air conditioning systems must be no greater than 15 percent oversized, except to satisfy the manufacturer’s next closest nominal size. 30. Insulation. Describe insulation work to be performed, such as: install insulation in crawl space, (R-_____); install insulation batts in attic, (R- _____); install insulation batts in exterior walls, (R-____); etc. Most estimates must be based on square footage projections. Required improvements: • Insulate all openings in exterior walls where the cavity has been exposed as a result of the rehabilitation. • Insulate ceiling areas where necessary. • Replacement heating, ventilating, and air conditioning systems supply and return pipes and ducts must be insulated whenever they run through unconditioned spaces. 31. Cabinetry. Describe cabinetry work to be performed, such

III. SERVICING AND LOSS MITIGATION A. Title II Insured Housing Programs Forward Mortgages 2. Default Servicing Handbook 4000.1 1315 Last Revised: 8/12/2026 applicable, include a copy of the state or local requirement for maintaining utility service. (ii) Sump Pumps The Mortgagee must ensure that all installed or required sump pumps are in place and operational at all times, where state or local law permits electricity to remain on. The Mortgagee must repair or replace any non- functioning or missing equipment. (iii)Utility Accounts The Mortgagee must retain all utility accounts in its name until conveyance of the Property to HUD. In states or jurisdictions where utilities should remain on, if there is any reason to believe that a Borrower may abandon a Property, the Mortgagee must contact the utility company to request notification of non-payment of utilities so that utilities can be transferred to the Mortgagee’s name if the Borrower vacates the Property. (iv) Propane and Oil Systems In jurisdictions requiring heat to remain on, the Mortgagee must put a “KEEP FULL” contract on with a local supplier when the Property has a propane or oil heating system. Otherwise, the Mortgagee must ensure that active piping is capped, valved, or otherwise terminated and all fuel tanks are emptied. (v) Domestic Water The Mortgagee must not cut water lines or remove water meters, unless required by the AHJ. (vi) Wells If the water supply is a private well, the Mortgagee must: • turn off the well at the breaker panel; • secure the breaker; • disconnect and cap, valve, or otherwise terminate the water supply line between the Property and pressure tank; • install a hose bib on the pressure tank side of the breaker, tagging the hose bib “For Water Testing;” • drain all pressure tanks; • drain pump housing if the pump is surface-mounted;