HUD Housing Notice § 2019-04

                                 U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
                                               WASHINGTON, DC 20410-5000




OFFICE OF PUBLIC AND INDIAN HOUSING
OFFICE OF HOUSING




SPECIAL ATTENTION OF:                                            NOTICE PIH-2019-02 (HA)
Public Housing Agencies (PHAs)                                   H-2019-04
Public Housing Hub Office Directors;
Public Housing Program Center Directors;
Regional and Field Office Directors;                             Issued: February 22, 2019
Moving to Work Agencies
Multifamily Owners, Regional Centers                             Expires: This notice remains in
                                                                 effect until amended, superseded or
                                                                 rescinded
                                                                 _______________________________
                                                                 Cross References:


Subject: Standardization of REAC Inspection Notification Timelines

1. Purpose: To announce a standardized notification period for HUD-assisted properties subject
to Real Estate Assessment Center (REAC) Uniform Physical Condition Standards (UPCS)
inspections.

2. Applicability: This notice applies to inspections performed by government personnel or
contractors on behalf of HUD and under REAC management. This notice applies to properties
subject to REAC UPCS inspections in the following programs: Public Housing; Office of
Housing programs covered under 24 CFR §200.853(a); non-insured properties under Section 236
of the National Housing Act with an active Housing Assistance Payment, Rental Assistance
Payment, Rent Supplement Program or Interest Reduction Payment contract; and properties
under §542(b) of the Housing and Community Development Act of 1992, as amended, with a
Section 8 contract; as well as HUD-held projects.

3. Authority: 42 U.S.C. §3535(r); 24 CFR part 200, subpart P; 24 CFR part 5, subpart G; 24
CFR part 902.

4. Background: The Secretary encourages Property Owners and Agents (POA) to adopt year-
round maintenance practices instead of undertaking extraordinary “just in time” repairs to meet
minimal compliance thresholds at the time of inspection. Just in time repairs compromise the
health and safety of residents. This practice also detracts from the good work done by many of
HUD’s public and private sector participants to improve housing conditions for millions of
families. A key element in effectively undertaking year-round maintenance practices is a REAC
inspection that is completed with minimal lead time from notification to execution. It is
preferable for there to be only a brief interval between the inspection notice and the actual
inspection. A brief time window is likely to result in an inspection that more accurately reflects
the housing conditions and operations the POA maintains year-round.

5. Effective Date: This notice will be effective 30 days after publication except in instances
where inspections were previously procured under a Period of Performance (PoP) that extends
beyond the effective date of this policy. In those cases, inspection notifications will be issued in
accordance with previous guidance and those established PoPs.

6. Policy: Beginning 30 days after publication of this notice, HUD employees and contract
inspectors acting on behalf of HUD shall provide to POAs 14 calendar days of notification prior
to a REAC inspection. Any inspections that would fall on a federal holiday will be scheduled for
the next business day. To reduce any opportunity for the disclosure of inspection schedules,
government personnel, contractors, independent inspectors, and anyone else who may have
access to schedules and other information1 will not prematurely release that information to
POAs.
The following provisions will apply to any POA subject to this notice who refuses to undergo an
inspection:
    •   If a POA declines to accept an inspection at the time of initial notification, a presumptive
        score of “0” (zero) will be recorded but held in abeyance pending the outcome of a
        second attempt to schedule the inspection.
    •   If a POA cancels or refuses entry for an inspection scheduled during the initial
        notification, a presumptive score of “0” (zero) will be recorded but held in abeyance
        pending the outcome of a second attempt to schedule the inspection.
    •   If the second attempt results in a successfully completed inspection within seven calendar
        days of the initial scheduled date, the resulting inspection score shall be recorded.
    •   If the second attempt does not result in a successfully completed inspection within seven
        calendar days of the initial scheduled date due to the fault of the POA, the resulting score
        shall be recorded as “0” (zero) and the POA may be subject to any and all penalties and
        remedies established through statute, regulation, sub-regulatory policy, grant agreement,
        or contract.

The following clarifications and limitations apply:
    •   This policy does not cancel or supersede guidance for inspections procured prior to the
        effective date of this notice. In these cases, inspectors will follow previous guidance and
        PoPs issued at the time of procurement.


1
 This includes information (e.g., travel itineraries provided to POAs; inadvertent references to
schedules in email or phone calls) that alone or when combined can reveal inspection schedules.
   •   This policy does not cancel or supersede any guidance related to inspections required as
       part of an existing Compliance, Disposition, and Enforcement or Corrective Action Plan.
   •   Inspection notification timelines must adhere to all state and local laws regarding resident
       notification, including where such laws mandate a greater than 14 calendar day
       timeframe.
   •   HUD reserves the right to conduct inspections with no or limited notice to safeguard
       resident health and safety and HUD’s interests in a property.
   •   Requests to extend or reschedule an inspection outside of the notification window, such
       as for any circumstances which may significantly impact the execution of an inspection
       or inspection results (e.g., major renovations, significant rehabilitation, fire, etc.), must be
       submitted by the POA and approved by HUD prior to the proposed date of inspection.
   •   HUD further reserves the right to modify the inspection notification process at any time
       in accordance with any statutory, regulatory, or contractual limitations.

7. Comments or Questions: Comments or questions about this notification should be directed
to UPCSInfo@hud.gov.



____________/s/___________________                     ____________/s/_________________
Dominique Blom                                          Brian D. Montgomery
General Deputy Assistant Secretary                     Assistant Secretary for Housing -
 Public and Indian Housing                              Federal Housing Commissioner