By Kathi Markan / September 15, 2019

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...

Read More
By Kathi Markan / August 15, 2019

Missing Doors

In this July edition of our HUD-REAC newsletter, I’d like to discuss the “missing door” deficiency that applies to both Common Areas and Units.  Many inspectors cite this defect in error so make sure you read through to the end! The following Unit and Common Area doors that are missing will always be recorded as a Level 3: Entry Fire Bathroom Any other type of door not listed above will...

Read More
By Kathi Markan / July 15, 2019

Breaker Panels

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...

Read More
By Kathi Markan / June 15, 2019

NIS Defects

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: Ensuring that the...

Read More
By Kathi Markan / May 15, 2019

What You Need to Know About Garbage Disposals During a HUD REAC Inspection

In this May edition of our HUD-REAC newsletter, I’d like to discuss HUD-REAC facts that you may be unaware of regarding garbage disposals. The inspector must allow your personnel to press the reset button If the garbage disposal is tripped. If the property personnel use any tools to make repairs on the disposal, the Level 2 defect will be recorded. An Exigent Health & Safety Electrical Hazard will be recorded...

Read More
By Kathi Markan / April 15, 2019

14 Day and Carbon Monoxide Notices

HUD has been under increasing pressure from negative news publications, OIG (Office of Inspector General), and Congress to make serious changes to their protocol. Although there appears to be much more to come, here are their most recent published changes: 14-Day Notification of the REAC Inspection – Applicable to ALL properties that are NOT a HUD loan (so far) Officially went into effect Monday, March 25, 2019 and will be...

Read More