Rehabilitation Costs Clause Samples

Rehabilitation Costs. DEVELOPER PARTNER shall be responsible for providing funding to cover all costs related to rehabilitation of the property. The maximum amount that will be allowed in all change orders will be a combined/cumulative amount of 10% of the original agreed upon cost of rehabilitation (excluding approved extraordinary change orders). Risks associated with under estimating the final cost of rehabilitating a property are the responsibility of DEVELOPER PARTNER. Any change order must have prior written approval by the Director of CDH in order to have priority over CDH’s loan. Only the agreed upon cost of rehabilitation shall have priority at time of sale over the CDH loan. Approved extraordinary change orders will not have priority over CDH’s loan. Approved change order amounts shall be added to the rehabilitation cost for purposes of determining total listing price. Any costs incurred by DEVELOPER PARTNER above and beyond the amount approved by CDH shall be the sole responsibility of DEVELOPER PARTNER. Any finance costs associated with the cost of rehabilitation whether the cost is approved or not approved by CDH shall be the sole responsibility of DEVELOPER PARTNER.