HUD released an Update on the rules regarding notifying residents of HUD properties about REAC inspection results. On July 8, 2019, HUD’s Office of Multifamily Housing Asset Management and Oversight released a memorandum (HUD_Memo_07-8-2019-REAC_Notifications_and_House_Rules). This memo reiterated the rules surrounding notice before entering any resident’s unit. Additionally, there are new rules which require providing residents documents to review. This would include documents such as proof of repairs after failed inspections and copies of inspection reports. In closing, there was a clarification on handling resident complaints and an update to House Rules for assisted properties.
Owner’s Responsibility to Notify Residents of a Physical Inspection
The code of Federal Regulations at 24 CFR, part 200, subpart P, §200.857(g) states the following. “Owner(s) must notify its residents of any planned physical inspection of their units or the housing development generally.” Residents must be provided with at least 24 hours notice of a planned inspection unless state/local laws requires more notice time. HUD encourages owners to give as much advance notice as possible to residents.
Owner’s Responsibility to Make Inspection Documents Available to Residents
These documents include:
- Notice of Default or Notice of Violation
- Owner’s Certification of Non-Compliance and Copy of the 100% Survey. (Following a score under 60 or a Demand for Corrective Action)
- The owner must post a notice stating the availability of this documentation on a bulletin board (or equivalent) with contact information for the local HUD representative.
HUD is encouraging residents to notify the local HUD office if they feel that the owner has provided HUD with a false certification of repairs. Firstly, when an owner submits proof of repairs after a failed inspection, the owner will need to provide proof of repairs. Secondly, that documentation will need to be made available for the residents to review. Thirdly, owners are encouraged to seek resident comments when updating House Rules. Most importantly, the memo establishes a requirement to follow through after failed REAC Inspections and creates accountability when underperforming properties.
