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REAC Announces Outline for Participation in NSPIRE Demonstration Program

Details about the NSPIRE demonstration programs were announced by HUD. A notice was published in the Federal Register on May 23, 2019, entitled “Notice of Emergency Approval of Information Collection for Physical Inspection of Real Estate (NSPIRE).” This notice includes information about developing a new standardized electronic software system to collect information about property maintenance and inspections. HUD will distribute this software to properties who participate in the two-year pilot program.

NSPIRE Demonstration Program

This notice outlines a process for the NSPIRE demonstration program, where participants in the pilot program would submit copies of documentation and participate in feedback. Firstly, owners/agents will be provided with inspection software that will enable them to easily document and submit deficiencies that are present within dwelling units or electronically submit work order receipts. Secondly, the properties would participate in non-scoring inspection using a new protocol. Lastly, owners/agents will have to provide copies of property information, building systems certificates, fire alarm systems, and local code violations. In the end, the goal is to ensure that owners/agents do regular inspections and that these inspections drive change.

The Goals of NSPIRE Demonstration Program

According to HUD’s website, the goals of NSPIRE are to:

  • Prioritizes health, safety, and functional defects over those about appearance.
  • Focus on the areas that impact residents. This model includes more objective standards, value-added inspection protocols, and scoring elements that are more defensible and less complex.
  • Inspectors will spend more time in units and the overall results will better identify substandard properties.

At this time, all of the details regarding NSPIRE are part of a larger proposal. Numerous changes in concept and direction are inevitable, and there are many challenges ahead. First is the development of new software. Secondly, there will be new rules for what makes something a deficiency. It is unclear how much will change from the current rules but based upon the initial notes, there will be a goal of simplification and unification of the rules. Above all, complexity in rules leads to confusion, so the best possible approach is transparent and clear.

Industry Feedback Regarding NSPIRE:

Industry Stakeholders can provide feedback on NSPIRE and the NSPIRE Demonstration – email comments to [email protected]

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