September 15, 2019 Kathi Markan

NSPIRE (National Standards for Physical Inspection of Real Estate)

In this September edition of our HUD-REAC newsletter, I’d like to discuss HUD’s NSPIRE Model Demonstration.

  • NSPIRE is expected to overhaul HUD’s 20-year-old inspection process!
    • Will allegedly be a 2-year Demonstration (most likely longer)
  • HUD will inspect approximately 4500 properties from a pool of nationwide volunteers who are willing to adopt the new physical inspection standards.
  • The GOAL is to design a new simplified inspection system that more accurately reflects the physical conditions within housing units and to place a greater emphasis on LBP (lead-based paint) hazards and mold.
    • Prioritizing health, safety and functional defects over those about appearance.
  • Proposed plan: Rule of 3’s:
    • 3 Types of Inspections
      1. Property Owner/Agent (POA Self Inspections
      2. REAC Contracted Inspections
      3. HUD QA (Quality Assurance) Inspections
    • 3 Categories of Deficiencies – Resident Focused
      1. Health & Safety
      2. Function & Operability
      3. Condition & Appearance
    • 3 Inspectable Areas – Complexity Reduced
      1. Unit (worth 50% of score)
      2. Inside (worth 25% of score)
      3. Outside (worth 25% of score)
  • Website where you can volunteer to participate in demonstration AND provide Feedback on the Standards they have currently released:
    • Linked here.
    • Benefits to participating:
      • Scores are advisory – only one inspection!
      • Can participate in focus groups, listening sessions, conference calls and training sessions on policies and procedures
      • Your feedback will help HUD shape this new inspection model – Direct line to HUD!
      • Taking advantage of free training opportunities including how to use the inspection software.
    • Eligibility Criteria
      • Willing to annually inspect 100% of your units and submit electronically to HUD – will NOT be scored!
      • Willing to schedule a mutually agreed inspection date with the HUD inspector (not subject to 2-week rule under this Demo)
      • Your feedback will help HUD shape this new inspection model – Direct line to HUD!
      • Know that a QA could possibly visit for a reinspection if conditions warrant
      • If your most recent REAC was scored between 60-70, your property will be considered on a “case by case” basis.
      • Agree to participate in focus groups, listening sessions, conference calls and training sessions
  • HUD has recently posted 65 new Standards and is requesting feedback from you!
    • Linked here.
    • Many of these items aren’t even currently inspected (like Grab Bars)