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June 20, 2023 Kathi Markan

June HUD REAC/NSPIRE Newsletter: HUD Publishes NSPIRE Final Rule – Inspection Standards

ANNOUNCEMENTS

Last chance to register for:

‘NSPIRE: What We Know So Far!’ – 2.5-hour live webinar training.

Wednesday, June 21st

10 am – 12 pm PST (1 pm – 3 pm EST)

Register here: NSPIRE Training – hosted by C4N6

In this June (Part 1) 2023 issue of our HUD-REAC/UPCS/NSPIRE Monthly Newsletter, I am happy to tell you that HUD finally posted the first of the 3 last Final Rules we have been waiting on – Version 3.0 Inspection Standards.  I expect the Final Rule – Administrative Notice and Final Rule – Scoring Notice to be published before July 1st.

NSPIRE Final Rule – Inspection Standards (35 pages): NSPIRE Final Rule – Standards

NSPIRE Final Rule – Version 3.0 Inspection Standards (295 pages): NSPIRE – 3.0 Standards

As this published document is considered “Final,” it is not open to public comment/feedback.

Full Analysis of the Changes between v2.2 and v3.0 of the Standards:
HUD now has 63 Standards.  This does not mean they just added 1 (Version 2.2 had 62 Standards).  Within each Standard are numerous deficiencies. MANY things were changed:

  • Adding new deficiencies
  • Removing, relocating or consolidating deficiencies
  • Adding, removing or renaming many Standards

To make things easier on you, I have already conducted a full analysis of the changes in both the Standards and every deficiency within them between Versions 2.2 and 3.0!  I divided them into separate charts based on the 3 Inspection Locations:

  1. Unit
  2. Inside
  3. Outside

I also included the Health and Safety determinations for EVERY deficiency within each Standard:

  1. LT – Life-Threatening (24-hour repair requirement)
  2. Severe – Non-Life-Threatening (24-hour repair requirement)
  3. Moderate (30-day repair requirement)
  4. Low – formerly known as “Advisory” (60-day repair requirement)

You can find the 3 PDFs on our Resource page here: C4N6 – HUD Resources

Key Takeaways from the Final Rule Notice (35-page document)

  1. HUD has decided to include the HOTMA (Housing Opportunity Through Modernization Act) LT (Life-Threatening) List in the NSPIRE Standards and not in the CFR.
    1. The HOTMA LT List applies for ALL PHAs in the HCV and PBV programs – not only those choosing to implement the Non-Life-Threatening provision offered under HOTMA and PIH Notice 2017-20
    2. You can find the updated HOTMA LT List here: C4N6 – HUD Resources
  1. Smoke Alarms (link to HUD Standard) will be required to be located:
    1. Inside the bedroom
    2. Outside the bedroom
    3. On each living level
  1. On December 29, 2024, HUD will require the Smoke Alarms (link is to C4N6 Newsletter) to be 10-year, sealed, and tamperproof.
  2. Classrooms (HUD previously considered them Community Rooms) will NOT be required to have Carbon Monoxide Alarms (see link for the Standard, Deficiency #1, Criteria #4 if you have fuel-burning appliances in the building but NOT in the Units).
  3.  Infestation is a complete disaster
    1. The definition states “The presence of animals with potential impacts on resident health and safety” – What about insects? Reptiles?
    2. They added 3 new deficiencies – Extensive Bedbug, Extensive Mouse, and Extensive Rat infestations
    3. The Unit deficiency criteria is grossly inaccurate where it appears that ALL THE UNITS will be penalized for infestation if you have 2 or more Units with an infestation!  Here is the verbiage under “Unit – Extensive Cockroach Infestation:”
      • Sighting of at least one live cockroach in two or more Units during a daytime surface visual assessment
        OR
      • Sighting of at least one cockroach in two or more rooms in a Unit during a daytime surface visual assessment
    1. The first page states there should be an Outside deficiency for “Evidence of mice,” but there isn’t one listed nor is it remarked upon in the Final Rule.
    2. (The only good news) Although all the “Extensive” infestations are listed as a 24-hour Severe H&S, HUD clarifies on page 15 in the NSPIRE Final Rule – Standards:
      • “Within the correction timeframe, documentation must be provided for the pest management plan, and this documentation must include: start date of the plan; servicing schedule, methods of pest monitoring, managing and treatment; and other factors as determined by HUD, the PHA and/or other relevant authority.”
      • Integrated Pest Management (IPM) is strongly encouraged
  1. On page 33 of the NSPIRE Final Rule – Standards, it states: “The Infestation, Mold-Like Substance, and Potential Lead Based Paint Hazards will include Deficiencies that are SCORED at the Life-Threatening (LT) level point deduction DESPITE being defined in the Severe H&S category.”!!!
  2. The severity level for only the deficiencies: Unit Entry and Fire-Labeled Door Missing both changed from a Severe to LT Health & Safety classification…but the Door-Entry Standard is incorrect on HUD’s NSPIRE Standard page.  You can see the change here: NSPIRE – 3.0 Standards
  3. Many positive changes were made to the Egress Standard
    1. “Resident-owned property should NOT be evaluated as an obstruction to the rescue opening or to the fire escape access.”
    2. “Permanently installed” window-mounted air conditioners are still listed as an obstruction – will get clarification from HUD if they are exempt when the A/C units are resident-owned
    3. Clarified that ONLY bedroom windows are considered Rescue Openings – NOT living room windows (unless there is a fire escape)
  1. Tenant-owned Fire Extinguishers and extinguishers that are not in service (i.e. in storage or awaiting service) will NOT be inspected under NSPIRE
  2. A missing lightbulb from a fixture will NOT be recorded as an exposed Electrical Conductor, as specified in the NSPIRE Final Rule – Standards, but the following will still be recorded:
    1. Hardwired smoke alarm with an exposed conductor (white terminal connector missing)
    2. Lighting fixtures (I am assuming this is an error because the Final Rule clearly states otherwise)
    3. Wiring that is insulated but not protected by sheathing or conduit
    4. Visible wire nuts on electrical conductors
    5. Wall-mounted light fixture with a damaged or missing cover
    6. Device cover plates missing/damaged
  1. All Outside electrical outlets must be GFCI-protected – Deficiency 3: Electrical – GFCI or AFCI – Outet or Breaker Standard
  2.  Under the new deficiency #5 Electrical – Conductor, Outlet and Switch: “Water is currently in contact with an electrical conductor,” HUD clarified:
    1. ONLY active leaks are to be cited
    2. Leaks near a component confirmed to be waterproof would NOT be cited
  1. Under the Sprinkler Assembly Standard:
    1. Paint or foreign material (like dust) must cover 75% or more of the sprinkler assembly OR 75% or more of the glass bulb.
    2. Corrosion was added as a new deficiency
  1. Fire doors themselves will not be required as a new affirmative requirement, however if they are present – there should be no deficiencies to the entire assembly.
  2. The Graffiti Standard has been REMOVED!
  3. Guardrails have been made a new Affirmative Habitability Requirement if the vertical distance measures more than 30 inches above the “floor or grade below.”
    1. Under More Information it states, “This deficiency should only be evaluated in areas that are accessible to the resident.”
    2. This could potentially be a costly impact on many properties without guardrails on their retaining walls, for example.
    3. I am hoping for further clarification on this – but HUD is adamant this be a deficiency
    4. Local code exceptions could also possibly be honored.
  1. Handrails has a new deficiency #4 “No handrail is present and there is no evidence of previous installation.”
    1. Although listed as N/A under Unit, and the Final Rule states “This deficiency will not be scored and there is no requirement for a correction,” it IS listed as a “Low” H&S for Inside and Outside areas…thus will be scored (unless HUD manually turns off the scoring on their end somehow).
  1. Window screens have been specifically called out under Deficiency #4 of the Window Standard to be a Moderate H&S if they are damaged or missing (if there is evidence they were previously installed).
  2. Under Mold-Like Substance Standard, the “Presence of mold-like substances at very low levels” has been removed.
  3. HUD states on page 20 of the NSPIRE Final Rule – Standards that “NSPIRE Inspectors will not be making structural stability assessments….” However inspectors absolutely WILL be doing just that because they kept the Structural System Standard deficiency, “Structural system exhibits signs of serious failure.”
  4. Although not listed as an Affirmative Standard, HUD states that, “adequate signage is critical to the NSPIRE inspection process.”  Fortunately, there is no direction yet to REQUIRE signage under the Address and Signage Standard – it just cannot be broken, illegible, or not visible (i.e. there is no mention of “missing” in the deficiency).
  5. NIS (Not Industry Standard) will definitely NOT be included in NSPIRE. Although HUD added a few deficiencies indicating that “unsuitable material” will be recorded in places like Clothes Dryer Exhaust Ventilation and  Water Heater Standard
  6. HUD will require permanent heating sources in all locales except for Hawaii, Puerto Rico, Guam, US Virgin Islands, American Samoa, and the Commonwealth of Norther Mariana Islands.
  7.  Unbelievably, HUD will require that “permanent heating sources” be tested no matter what time of year under HVAC Standard.  Additionally, the deficiencies got a bit crazy, for instance, “The inspection date is on or between October 1 and March 31 and the permanently installed heating source is not working or the permanently installed heating source is working and the interior temperature is below 64 degrees Fahrenheit.” This will be clarified in the Administrative Notice.

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