On June 30, HUD issued joint Notice PIH 2023-16/ H 2023-7. The Notice supplements the final NSPIRE standards notice, published June 22, 2023, in the Federal Register. Among other things, the Notice outlines inspectable areas, frequency of inspections, notice of inspections, verification of property data and contact info, how to address mold, lead-based paint, pest infestation, and handling life-threatening deficiencies.
Highlights from the NSPIRE Administrative Notice
References and Rescinded Notices
In 2024, HUD expects to issue a proposed rule addressing REAC’s Inspector Administration oversight of inspection activities. The proposed rule will include required education and experience qualifications, training and testing requirements, and inspector conduct requirements to become certified to perform NSPIRE inspections in HUD-assisted housing. In advance of a rule and to support inspections commencing in 2023 with the current UPCS-certified inspector workforce, HUD will issue a notice describing recommended inspector training, qualifications, and professional conduct requirements.
Changes to Inspectable Areas with NSPIRE
REAC inspectors will inspect areas and associated items or components listed in the regulations as affirmative requirements and those included within the NSPIRE Standards posted in the Federal Register. Inspectors should not cite tenant-owned items or articles that are not considered components of the unit or inside or outside of HUD housing. For example, a tenant-owned picture with broken glass would not be cited for sharp edges, as that is a resident’s personal property, not part of the unit or its components. However, REAC inspectors may make an exception and cite certain tenant-owned items in the following examples:
- Tenant-owned items that affect the performance of a fire safety system or otherwise put the building at risk;
- Tenant-owned appliances and associated electrical and venting components, where that appliance is considered the primary item to meet affirmative requirements, such as a tenant-owned refrigerator that is the primary device for safe food storage; and
- Tenant-owned items, like an unvented fuel-burning appliance, are in violation of the affirmative requirements.
Additionally, inspectors will not inspect areas of the property that are not considered housing or part of the housing project. For example, commercial or market-rate space used for non-residential purposes, and sidewalks, fencing, roads, and parking lots not owned or maintained by the property will not be inspected. Generally, NSPIRE inspections will focus on areas where residents live; areas residents can enter, and components or systems that could impact resident safety and health.
REAC NSPIRE Inspection Timeframes
Properties that score 90 points or higher will be inspected at least every three years. Properties that score over 80 (but less than 90) will be inspected every two years. Properties that receive less than 80 will be inspected annually. In the first year of NSPIRE final rule’s implementation, REAC inspections may occur six months before or after the anniversary date. After that, inspections will generally occur up to three months before or after the anniversary date.
HUD may approve requests by a POA or PHA for extensions of the inspection deadline for good cause as determined by HUD. HUD may also extend inspection deadlines without POA request, as deemed necessary by the Secretary. HUD reserves the right to inspect properties outside of the established inspection frequency, especially where there are concerns about persistent conditions that impact the health and safety of residents.
Routine Inspection Scheduling
Inspection scheduling under NSPIRE will remain largely unchanged. REAC will continue to provide a 28-day notice to owners and agents of the inspection date. However, new procedures are outlined for verifying information about the property before the inspection, which means that information such as rent rolls, market-rate units, and other building information can be reviewed and verified before the inspection date.
HUD also includes a new suggestion for a seven-day notice to residents for REAC Inspections using the NSPIRE standards.
What Happens During NSPIRE Inspections
The Notice provides new guidance for what property owners and agents should and should not do during REAC Inspections using the NSPIRE Standards. Representatives of a property should not attempt to interfere with the inspection, argue or dispute deficiencies, or seek advice or guidance from REAC Inspectors on how to make corrections, improve their scores, or improve their operations.
Submitting Evidence of Correction of Life-Threatening and Severe Conditions
What does “corrected” mean? This Notice provides some clarity on what HUD determines to be sufficiently corrected to remove the health and safety risk. There is some new guidance on “interim” repairs that remove or block the risk within the specified timeframe in the event that the “full” correction cannot be done in time.nnIf [a] permanent repair will take longer than the allowable time in the relevant standard for the deficiency, the owner or PHA must provide HUD a timeframe for completing permanent repairs for HUD approval. If the correction is a temporary correction to block the hazard, or if professional services or materials to complete the work were not available in 24 hours, the PHA or POA must provide a target date for when the permanent correction will be completed. HUD considers permanent repairs to be those that have an expected design life of at least 20 years, or those that meet the manufacturer’s recommendations for service life.
Potential Lead Paint Hazards
The requirements for this assessment apply only to “target housing,” which is any housing constructed prior to 1978, except housing for the elderly, persons with disabilities, or any zero-bedroom dwelling, unless a child of less than six years of age resides or is expected to reside in such housing. For properties receiving Project-based Assistance, in the absence of a lead-based paint inspection, risk assessment, or paint testing, the POA shall presume that all painted surfaces contain lead-based paint.nnIn the absence of a lead-based paint inspection, risk assessment, or paint testing, the POA shall presume that all painted surfaces contain lead-based paint. If the surface contains lead-based paint and there is a child under age 6 in residence, the POA must have a plan to complete lead hazard control as required.
Pest Infestations
Initiation of an appropriate pest management plan meets the requirement for correction, with the understanding that, while pests may still be present at the start of the pest management plan, they will be managed. Ongoing implementation of an appropriate pest management plan will also satisfy this condition. Within the correction timeframe, documentation must be provided for the pest management plan, and this documentation must include: the start date of the plan; servicing schedule; methods of pest monitoring, management, and treatment, and possibly other factors.
Mold and Moisture
Residents should be temporarily relocated until mold and moisture conditions are controlled. Mold evaluation should be visual and include the use of a moisture meter. Evaluation should focus on the source of moisture and the conditions that contributed to mold growth. The evaluator should also evaluate the extent of the mold growth and whether contaminated materials and building materials can be cleaned or must be removed.
Self-Inspection Requirements for Failed REAC Inspections
For properties that score below 60, the owner or agent must conduct a survey of the entire project, including all units, inside and outside, for any deficiency and must electronically submit a copy of the results of the survey to HUD. The survey reports shall be provided to NSPIRERegulations@hud.gov with a courtesy copy to the assigned field office representative until the NSPIRE system can receive the submission. HUD will announce when the NSPIRE system is fully operational to receive self-inspections. Survey results are typically due 60 days after the NSPIRE inspection is completed.
Failing REAC Inspection Scores under NSPIRE
Properties that score 30 or less under the NSPIRE Standards are subject to administrative review by HUD. Properties that score under 60 in two successive inspections may be subject to administrative review. For scores of 31- 59, PIH will retain some discretionary review of the PHA before or in place of a referral to the DEC.
Resident Feedback and Unit Recommendation Process
The prioritization of residents’ health and safety is paramount under the NSPIRE rule and Standards. In advance of the inspection, Residents’ Groups will identify the dwelling units they would like to add to the inspection process. HUD will provide an electronic mechanism for Residents’ Groups to submit these requests. HUD will inform residents when they can submit recommendations through the automated system, and residents may electronically submit unit recommendations through the automated system or email. All submissions must be made at least 30 days prior to the inspection. Once the information is received, the NSPIRE system will randomly select up to five recommended units to add to the scheduled NSPIRE inspection.
