HUD Announces Effective Date of New 14 Day Notice for REAC Inspections

HUD Released a notice today
confirming to limit the notice time for REAC Inspections to not more than 14 days. The following communication was released today, which indicates this change will go into effect 30-days from the date of the notice for all future inspections (not including inspections currently scheduled or included in a previous auction).

Currently, HUD's Real Estate Assessment Center (REAC) provides advance notice before a scheduled inspection which frequently extends up to 120 days. This amount of lead time allows certain public housing authorities and property owners to undertake cosmetic, 'just-in-time' repairs to their properties rather than adopting year-round maintenance practices.
Today's notice is part of a wholesale reexamination of REAC's inspection process that Secretary Carson launched shortly after taking office. HUD will be consulting with PHAs and property owners over the next several months to discuss other improvements to REAC's process.
Beginning 30 days after publication of this notice, HUD employees and contract inspectors acting on behalf of HUD shall provide property owners and their agents 14 calendar days of notice prior to their inspection. If an owner/agent declines, cancels or refuses entry for an inspection, a presumptive score of "0" (zero) will be recorded. If the second attempt results in a successful inspection within seven calendar days, the resulting score will be recorded.
Additional points included in the notice include:
This policy does not cancel or supersede any guidance related to inspections required as part of an existing Compliance, Disposition, and Enforcement or Corrective Action Plan.
Inspection notification timelines must adhere to all state and local laws regarding resident notification, including where such laws mandate a greater than 14 calendar day time frame.
HUD reserves the right to conduct inspections with no or limited notice to safeguard resident health and safety and HUD's interests in a property.
Requests to extend or reschedule an inspection outside of the notification window, such as for any circumstances which may significantly impact the execution of an inspection inspection results (e.g., major renovations, significant rehabilitation, fire, etc.), must be submitted by the POA and approved by HUD prior to the proposed date of inspection.
HUD further reserves the right to modify the inspection notification process at any time in accordance with any statutory, regulatory, or contractual limitations.

Please let us know if you should have any questions about this change and how it will affect your company. We will be scheduling a brief webinar series that will discuss this change and effective ways to strategize proper compliance with these new requirements. We expect the have dates and times scheduled shortly

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