- A contractor and any potential contractors must not be on the U.S. Department of Housing and Urban Development (HUD) or MSHDA lists of contractors debarred or not approvable for prior noncompliance with HUD or MSHDA requirements.
- A contractor must hold a current Michigan residential builder's license or show evidence of ability to obtain a license within six months.
- A contractor must demonstrate a history of having performed work of the scope and type required for the development.
- A contractor must file a financial statement, prepared by an independent certified public accountant, for its most recent fiscal year, or for the first nine months of the most recent fiscal year if the most recent fiscal year ended less than ninety days prior to the date of the submission of the bid. The financial statement must show the contractor has net liquid assets equal to 3% of the total bid amount and a net worth or stockholders' equity equal to 3% of the total bid amount.
Prior to Mortgage Loan Commitment:
- A contractor must be capable of obtaining payment and performance bonds each in the amount of 100% of the total bid or enter into a Completion Assurance Agreement to be accompanied by an irrevocable letter of credit issued by a commercial bank acceptable to MSHDA in the amount of 25% of the total bid.
- The contractor must submit a complete AIA A305 Contractor Qualification statement.
- A contractor must demonstrate an acceptable Equal Employment Opportunity history and have submitted an acceptable Equal Employment Opportunity Plan.
- A contractor must provide evidence that it carries Comprehensive General Liability, Worker's Compensation and Employer's Liability insurance in the amounts specified in the Construction Contract.
- Contractors doing business with MSHDA for the first time will have all contract payments handled through a title company to assure compliance with MSHDA's disbursement procedures and Michigan's construction lien law, unless the builder has previously successfully completed a 48 unit or larger rental development in Michigan evidencing satisfactory performance in the payment of subcontractors.
If you have questions or comments regarding these standards, please email our Chief Architect. at VukonichM@michigan.gov.
If you have questions or comments regarding these standards, please email our Construction Manager firstname.lastname@example.org.