On February 5, 2016, a notice was issued that created new business rules for active REAC Inspectors. This new set of REAC Inspector business rules is an update to the existing inspector business rules dated January 20, 2006. This memorandum sets forth basic rules of behavior, a Code of Conduct, and instructions to REAC inspectors on how to handle situations that may arise.
In this article, we are going to discuss the parts of the notice that affect Owners/Managers of HUD-insured/assisted housing. If you are interested in reviewing the sections regarding administrative actions on REAC Inspectors, you can review a copy of the HUD REAC Physical Inspection/Inspector Administration Business Rules - Inspector Performance Monitoring.
The major changes to the REAC Inspector Business Rules that will affect owners/managers relate to updates to the Code of Conduct. Here is the section of the notice that relates to what REAC Inspectors can and cannot do:
Inspectors must not:
There are a few items in the above that are notably new, namely that REAC inspectors cannot accompany other REAC Inspectors on inspections as representatives of management or as consultants. There are a number of REAC Consulting Firms who utilize active REAC Inspectors to conduct REAC Inspection Shadow Inspections to assist owners and managers on the day of the inspection, and this practice will no longer be permitted. If the consultants are not currently REAC licensed inspectors, then this rule shall not apply; for example, all of the inspectors on staff with US Housing Consultants are internally trained, so this rule does not apply to our inspectors.
If you should have any questions about this new notice or any of its contents, please do not hesitate to contact us at any time.
Determining when an Interim Recertification (IR) is warranted and what effective date to utilize is often challenging. This portion of our three-part series will provide guidance on reporting requirements and optional changes, processing IRs, refusing IRs and the all-important question of what effective date to utilize.
This information applies to HUD Project-Based Section 8 properties only, as IR never apply to the LIHTC program
What are tenants required to report?
All tenants must notify the owner when:
What are optional reporting requirements?
Tenants may request an IR due to any changes occurring since the last recertification that may affect the total tenant payment or tenant rent and assistance payment for the tenant. Changes a tenant may report include the following:
Tenants are not required to report when a family member turns 18 years of age between annual recertifications. However, tenants must follow the requirements in their lease for reporting changes in the household income. However, if a tenant turns 18 and has not signed the form HUD-9887, the owner must not use the EIV income reports until the form is signed. Owners must address in their policies and procedures notification requirements and timeframes for tenants who turn 18 between annual recertifications to sign the consent forms HUD-9887 and HUD-9887-A and/or lease. If the tenant fails to sign the consent form(s) the household is in non-compliance with their lease and assistance to, and the tenancy of, the household may be terminated.
Look for part two of the Interim Recertification series in the May issue of The Score.