The lender must inspect a Section 538 property annually and certify compliance with state and local codes

rd538.physical_inspection.lender_must_inspect_annually_against_state_and_local_codes · v1.0.0

The lender must ANNUALLY INSPECT a Section 538 property to ensure it is in compliance with state and local codes and programme requirements, and must certify to Rural Development that the property is in such compliance or report any non-compliance items together with proposed actions and a timetable for resolution. Failure to provide responsive corrective action can result in reduction or cancellation of the guarantee by the Agency. The property standard itself is the state or locality's site and neighbourhood requirements together with 7 CFR part 1924 subparts A and C - not UPCS, not NSPIRE, and not the itemised standards 7 CFR 3560.103 applies to the direct portfolio.

Confidence

high

Effective from

1998-07-22

Consequence model

contract remedy

Last reviewed

2026-08-30