New HUD Policy on REAC Inspections: 14 Days Notice

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From an alert sent out by the National Apartment Association:

I’m writing to make you aware of a recent policy change by the U.S. Department of Housing and Urban Development (HUD) that will drastically reduce the time frame required to provide notice of inspection to rental housing providers that operate HUD-assisted housing or subsidized property developments.

According to the new standard, HUD employees and contract inspectors will provide a notice to private property owners and operators who participate in HUD-assisted programs 14 calendar days prior to a property inspection through the Real Estate Assessment Center (REAC). If a property owner or operator refuses the REAC inspection, which is designed specifically for HUD-assisted housing or subsidized properties, a score of zero will be recorded. However, if the property is successfully inspected within 7 calendar days after the initial declined visit, the resulting score will be recorded.

While we understand owners and operators take great care to prepare for REAC inspections on an ongoing basis, HUD says this change will encourage program participants to maintain their properties year-round, instead of short-term fixes to pass a specific inspection. This new policy will take place 30 days after the posted notice.

In addition to the policy change, HUD will be hosting listening sessions across the United States to collect input from public and private HUD partners about a potential pilot program that will bring a new approach to inspections of HUD-assisted properties. NAA highly encourages owners and operators to participate in HUD’s listening sessions to ensure the industry’s voice is heard.

The first round of listening sessions is scheduled for the following locations:
  • Philadelphia
  • Fort Worth
  • Atlanta
  • Detroit
  • Seattle