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)

In this August edition of our HUD-REAC newsletter, I’d like to discuss breaker panels!

• • A breaker shuts off a component (like a kitchen stove or outlets) – whereas a disconnect will shut off an area or system (like a service disconnect at the meter that shuts off the entire unit or an HVAC disconnect).
  • If the breaker panel is secured (locked, screwed shut) at the time of inspection – you MUST make the panel accessible to the inspector.
    1. The fact it’s secured is NOT a defect!
    2. If you refuse to open the panel, it can be recorded as Level 3 – Blocked Access
    3. Foreign materials (caulk, foam, screws) in the panel are a defect. The only acceptable materials allowed are UL rated such as blanks for breaker ports.

• • There are many defects that inspectors look for inside the breaker panels:
    1. Burnt Breakers
    2. Evidence of Leaks/Corrosion (Rust)
    3. Missing Breakers/Fuses
       • Use a blank to fill the gap or
       • A dummy breaker (not connected to anything)
    4. Missing Covers (internal cover….not the external cover) – wires have to be exposed as a result of the missing cover!
    5. Openings over ¼ inch (includes missing knockouts under or on the side of the panel)
       • ¼ inch is larger than you may think – stack 4 pennies and that is exactly ¼ inch.
       • Do NOT put the pennies in an electric panel!
  • If your breaker panel is abandoned, all capped wires (abandoned or otherwise), bare wires, un-insulated connectors, or open terminal connections visible in an open junction box/pass-through MUST be properly enclosed in a SECURED junction box

In this June edition of our HUD-REAC newsletter, I’d like to discuss NIS (Not Industry Standard) defects.

• In 2016, HUD enacted the NIS rule: “All repairs made to address UPCS deficiencies in preparation for a REAC inspection shall be made in a good and workmanlike manner with materials that are suitable for the purpose and free from defects.”

  “Good and workmanlike manner” is defined by HUD as:

  1. Ensuring that the component, as repaired, performs its intended function/purpose
  2. Finishing the repair in a manner reasonably compatible with design and quality of the original and adjoining decorative materials.
  3. Ensure proper maintenance of each inspectable item based on industry standards

  Put succinctly, fix deficiencies the right way and don’t hide them.

• This rule effectively wiped out all objectivity in the inspection process. HUD has, for the last 3 years, held sessions with inspectors attempting to clearly define what they perceive a NIS defect is but there is still mass confusion.
• Because of the continued confusion amongst inspectors, on May 28, 2019, HUD delivered to inspectors the first “NIS Final Decision” PowerPoint where a Quality Assurance committee reviewed many reported NIS findings and made a ‘final decision’ of whether it truly is a NIS defect.
• Unfortunately, there is much in this PowerPoint which contradicts the NIS definition listed above but it does provide some ammunition in appealing NIS findings and perhaps some clarity to your maintenance staff on what is considered an Industry Standard repair or not.

Comments/explanations are added to each slide of the powerpoint to help with understanding. NIS Final Decision May 2019