HUD PIH Notice § 2011-29

        [pic]                                U.S. Department of Housing and
Urban Development
                                             Public and Indian Housing
_________________________________________________________________________
Special Attention of:                                    Notice PIH 2011-29
(HA)
Office Directors of Public Housing;
Regional Directors; Public Housing                       Issued:
                                  June 3, 2011
Agencies.
                                             Expires: Effective until
                                  amended, superseded, or rescinded


                                             Cross References: PIH-2010-010
_________________________________________________________________________
SUBJECT:     HQS Inspections for the Housing Choice Voucher Program and
           Guidance Related to Electrical Outlets

1. Purpose:


   This Notice reviews the existing Housing Quality Standards (HQS)
   requirements and clarifies the existing guidance that Public Housing
   Agencies (PHAs) may rely upon when conducting inspections.  It also
   offers additional guidance on what types of three-prong electrical
   outlets an inspector should consider acceptable under HQS.


2. Applicability:


   This Notice applies to HUD programs that use the HQS requirements,
   including the following HUD-PIH rental assistance programs:  Project-
   Based Voucher, Project-Based Certificate, and Housing Choice Voucher
   (HCV) Programs.

3. Introduction:


   The goal of HUD’s Section 8 Housing Choice Voucher (HCV) Program is to
   provide “decent, safe, and sanitary” housing at an affordable cost to low-
   income families.  To accomplish this, HCV program regulations at 24 CFR
   982.401 set forth basic housing quality standards (HQS).  All units must
   meet HQS both before a PHA can approve a tenancy, and throughout the term
   of the lease.  PHAs must inspect each assisted unit at least annually to
   ensure the unit meets HQS.  HQS define “standard housing” and establish
   the minimum criteria for the health and safety of program participants.


   Current HQS regulations consist of 13 key aspects of housing quality, and
   acceptability criteria to meet each performance requirement.  HQS
   includes requirements for all housing types, including single and multi-
   family dwelling units, as well as specific requirements for special
   housing types such as manufactured homes, congregate housing, single room
   occupancy, shared housing, and group residences.


4. Background:

   A May 2008, HUD Office of Inspector General (OIG) report concluded that
   HUD did not have adequate controls to ensure that HCV program housing was
   in material compliance with HUD’s HQS.  This Notice reviews the existing
   HQS requirements and identifies the guidance that PHAs may rely upon when
   conducting inspections until the Department issues updated guidance on
   HQS.

   The Notice is divided into two sections.  The first section lists the HUD
   program requirements that apply to HQS and supplementary guidance that
   PHAs and inspectors may rely upon when conducting inspections.  The
   second section deals with the issue of electrical receptacles, which is
   an area of concern for many inspectors conducting HQS inspections.



5. Housing Quality Standards:




 A.   General


  The HCV program is designed to cover a diverse housing stock of different
  ages, structure types, geographic location and climate.  In light of this
  approach, HUD issued guidance that PHAs can rely upon for the
  interpretation of HQS.  It is important to note that, based upon the
  diversity of the housing stock nationwide, many of the criteria rely upon
  the expertise and knowledge of a PHA’s housing inspectors to determine
  whether a unit meets HQS.  This Notice identifies program requirements
  related to HQS inspections as well as reference materials that HUD has
  issued to supplement the regulatory requirements.


   B. Program Requirements


   HUD’s current HQS regulations for the HCV program are found at 24 CFR
   982.401, and consist of the 13 key aspects of housing quality and the
   accompanying Performance Requirements and Acceptability Criteria.  The
   PHA must comply with the regulations, which are always the controlling
   requirement if there is a conflict between them and any other guidance.


   The Department also issued the following two inspection forms.  PHAs must
   comply with one of these forms when conducting HQS inspections.


     1) Inspection Form HUD-52580; or


      (2) Inspection Checklist, Form HUD-52580A










   C. Supplemental Materials


   The Department issued supplemental materials, which set out daily
   operating procedures in more detail than is included in the regulations.
   While the supplemental materials do not have the force of regulation,
   PHAs may rely on the materials as reflective of HUD’s interpretation of
   its regulations.  The Department issued the following supplemental
   materials to assist PHA inspectors in determining if a unit will pass the
   HQS inspection:


      (1) Chapter 10 of the Housing Choice Voucher Program Guidebook,
7420.10G, and


      (2) Housing Inspection Manual.

   Although the Department designed these materials to minimize the amount
   of ambiguity and subjectivity in the application of the requirements,
   there will be situations where the professional judgment of the inspector
   will be necessary to differentiate between a pass or fail condition.


   D.  Verification of HQS Deficiency Correction


      This section provides clarification regarding the need to conduct a
   follow-up inspection for tenant based voucher units after a failed annual
   or interim inspection.


      If the PHA determined from the inspection that the unit did not meet
   the HQS requirements, the PHA may allow the unit to pass upon
   verification that the HQS deficiency has been corrected.  The regulation
   at 982.404(a)(3) states that the PHA "verifies" HQS repairs.  The PHA may
   elect to do a reinspection to comply with 982.404(a)(3) to verify that
   all HQS deficiencies have been corrected.  However, a reinspection is not
   necessary if the PHA can obtain verification through other means.  For
   example, a PHA might accept an owner's certification that required
   repairs were completed and then verify that action at the next on-site
   inspection.  Further, a PHA might tie the verification process to the
   severity of corrections needed and/or its experience with the owner and
   property.  PHAs should include in the PHA’s Administrative Plan how the
   PHA will verify the correction of HQS deficiencies.


      In the case of initial inspections, the PHA is required to conduct a
   follow-up inspection if the unit does not pass HQS pursuant to the
   initial inspection.  Additionally, in the case of project based vouchers,
   the PHA is required to conduct follow-up inspections to determine if the
   HQS deficiency is corrected pursuant to 24 CFR 983.103(e)(2).
















 6. Electrical Receptacles:

   A. Background


   The HCV program regulations at 24 CFR 982.401(f) set forth the HQS
   requirements and acceptability criteria with respect to illumination and
   electricity for the housing unit.  The regulations state that a unit must
   include the following acceptability criteria for electricity.


      • the kitchen and bathroom must have one permanent ceiling or wall
        light fixture in proper operating condition;
      •  the kitchen must have at least one electrical outlet in proper
        operating condition; and
      • the living room and each bedroom must have at least two electrical
        outlets in proper operating condition (permanent overhead or wall-
        mounted light fixtures may count as one of the required electrical
        outlets).

   The inspector is responsible for determining whether the outlets are in
   “proper operating condition.”  While the regulation does not define what
   the Department considers “proper operating condition,” HUD-Form 52580A
   cites examples of electrical hazards including:


      • broken wiring;
      • non-insulated wiring;
      • frayed wiring;
      • improper types of wiring, connections or insulation;
      • wires lying in or located near standing water or other unsafe
        places;
      • light fixture hanging from electric wiring without other firm
        support or fixture;
      • missing cover plates on switches or outlets;
      • badly cracked outlets;
      • exposed fuse box connections; and
      • overloaded circuits evidenced by frequently ‘’blown’’ fuses (which
        the inspector determines by asking the tenant).

    B. Types of Outlets and Their Proper Operating Condition

   In response to an OIG audit, HUD is issuing this Notice to clarify the
   proper operating condition of electrical outlets (110V/120V).  There are
   two basic types of outlets: two-pronged (also called “two-slotted”) and
   three-pronged outlets.  Three-pronged outlets have an additional hole for
   a ground wire, and are “grounded outlets.”  Two-pronged outlets are
   “ungrounded.”


   Generally, original two-pronged, ungrounded outlets and original three-
   pronged, grounded outlets are acceptable under the HQS.  ”Upgraded”
   outlets, which have been changed from two-pronged to three-pronged, are
   the major area of concern in this Notice.


 [pic]


      Ungrounded Outlets


   Older construction (pre-1975) housing will usually have ungrounded two-
   pronged outlets, which is an acceptable type of outlet under the HQS.
   (Figure 1)  Homes constructed with a two-wire electrical system include
   only a hot and neutral wire.  Two-pronged ungrounded systems and outlets
   are acceptable under HQS as long as the outlet is in proper operating
   condition.  An owner does not need to upgrade the electrical system of
   the unit (replace two-pronged outlets to three-pronged) in order for the
   unit to pass an HQS inspection.


      Grounded Outlets


   Newer construction housing will usually have three-pronged outlets, which
   are acceptable under HQS if the outlets are grounded.  (Figure 2)  Newer
   units constructed with a three-wire electrical system include a hot,
   neutral, and ground wire.  This Notice outlines traditional methods of
   testing grounded outlets for proper operating condition below.


      “Upgraded” Outlets


   Many of the cords for today’s appliances contain three-pronged plugs,
   which can cause problems when an older home does not have three-pronged
   outlets for these grounded plugs.  In the case of older homes, owners
   often replace two-pronged, ungrounded outlets with three-pronged,
   grounded type outlets in order to establish appropriate outlets for
   appliances that have cords with three-pronged plugs.  However, in some
   cases, owners may replace two-pronged, ungrounded outlets with the three-
   pronged, grounded type outlets without the necessary rewiring that adds a
   ground wire to the newly installed, grounded type outlet.

   Three-pronged, grounded type outlets should not be substituted for
   ungrounded outlets unless (1) a ground is connected to the outlet, or (2)
   a Ground Fault Circuit Interrupter (GFCI) protects the outlet. (Figure 3)
    Installing a new ground wire may require a licensed electrician to
   install a new wire to the circuit breaker box and may be prohibitively
   expensive.  A more cost-effective method is to protect the outlet with a
   GFCI, which provides protection to the outlet.  If the GFCI senses a
   difference in current flow between the hot and the neutral terminals, it
   shuts off the flow of current to the outlet.


   An older construction house with a grounded outlet (Figure 2) would be an
   indication that the unit may have undergone some upgrading.  In such
   cases, the Department recommends testing a sample of outlets in the unit
   to determine if three-pronged outlets are in proper operating condition,
   in addition to verifying the proper operating condition of the required
   number of outlets per room.


   Testing of Outlets to Determine Proper Operating Condition


      Two-pronged, Ungrounded Outlets


   The traditional method of testing a two-pronged, ungrounded outlet is to
   plug an appliance into the outlet and verify that the appliance turns on.
    This simple method is acceptable for determining that the ungrounded
   outlet is in proper operating condition and meets HQS.


      Three-pronged Outlets


   A three-pronged outlet must meet one of the following three standards for
   the inspector to consider the outlet in “proper operating condition” as
   required by HQS:


           1. The outlet is properly grounded.


           2. A GFCI protects the three-pronged, ungrounded outlet.


           3. The outlet complies with the applicable state or local
              building or inspection code.

   The inspector needs to use an outlet tester to determine whether the
   outlet is properly grounded.  There are two types of outlet testers that
   an inspector can use to determine a properly grounded outlet: a two-wire
   tester or a three-pronged tester.







           Two Wire Tester                   Three Prong Tester


           [pic]            [pic]




   To test an outlet with a two-wire tester, an inspector inserts one probe
   into the hot slot (usually, the smaller slot) of the outlet and one probe
   into the ground hole (bottom hole).  If the outlet is properly grounded,
   the indicator light should light brightly in the same manner that the
   light shines when the inspector inserts the probes of the tester into the
   hot and neutral (right and left) slots.


   To test an outlet with a three-pronged tester, the inspector should plug
   the device in and note the pattern of the lights.  Usually there will be
   a legend printed on the device describing what the lights indicate.   The
   instructions provided by the manufacturer of the tester should be
   followed.


   If the inspector determines that the outlet is not properly grounded
   based on the results of the outlet tester, he/she may need to conduct
   some additional investigation to determine if a GFCI protects the outlet.
    A GFCI can be located at the outlet that is being tested or upstream on
   the circuit of the outlet.  If the GFCI is at an outlet, it will look
   similar to Figure 3 above, and the inspector should accept the outlet as
   GFCI-protected after testing the functionality of the GFCI as indicated
   below.

   As stated above, an ungrounded outlet may be protected by a GFCI at
   another outlet that is upstream from the ungrounded outlet.  If the
   inspector suspects that this may be the case, there is an easy way to
   determine if the GFCI protects an outlet.  The inspector should “trip”
   all of the GFCIs in the unit; both at the outlet and in the circuit
   breaker box and determine if there is power to the ungrounded outlet.  If
   the power to the outlet is off, then one of the GFCIs protects the
   outlet.


   Occasionally, a GFCI may be located on the circuit breaker at the load
   center (circuit breaker box).  The following image depicts a GFCI
   breaker:  the distinctive indicator is the “Test” button mounted on the
   breaker.  An inspector may want to “trip” the GFCI in order to identify
   that the power shuts off to any ungrounded outlet that is protected by
   the breaker.  To “trip” the GFCI, the inspector would press the test
   button (A) and the switch (B) will move and shut off power to the
   circuit.  This allows the inspector to verify that the outlet is GFCI-
   protected.


                                    [pic]

                            GFCI Breaker





   C. Testing of Ground Fault Circuit Interrupters (GFCIs) To Determine
      Proper
         Operating Condition


   If an outlet contains a GFCI, the GFCI must work as designed in order for
   the inspector to consider the GFCI in proper operating condition.
   However, a GFCI can be in proper operating condition even if it is not
   grounded.  A GFCI is in proper operating condition if pressing the “TEST”
   button on the GFCI trips the circuit and shuts off power through the
   receptacle.  It is important to note that some three-prong testers have a
   GFCI test button function built into the tester.  The test button on a
   three-prong tester only works to trip a grounded GFCI.  Therefore, if the
   GFCI is not grounded, the circuit tester will erroneously indicate that
   the GFCI is malfunctioning.  As a result, inspectors cannot depend solely
   on-three prong testers to determine if a GFCI is in proper operating
   condition.  Instead, the inspector should press the “TEST” button, and if
   the button trips the circuit and shuts off the power through the
   receptacle, the GFCI is in proper operating condition.

 7. For Further Information:  Contact Brian Gage, Office of Housing Voucher
    Management, Room 4210, Department of Housing and Urban Development, 451
    7th Street, SW, Washington, DC 20410, at (202) 402-4254.



                                                        /s/

                                        Sandra B. Henriquez, Assistant
Secretary                                            for Public and Indian
Housing