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Preparing for a REAC Inspection

How can you prevent a low REAC score? The answer is simple – be prepared. The difficulty, of course, lies in implementing that solution. HUD’s guide governing REAC Inspections is lengthy. The scoring system is complex. Inspectors are not always consistent. Owners and Managers often suffer the consequences.

HUD understands and HUD wants to help. On January 1, 2008, HUD released a revised REAC Compilation Bulletin. This 31 page document incorporates all previous guidance from HUD regarding physical inspections, provides answers to the most commonly asked questions from inspectors in the field and clarifies certain areas of inspection protocol. HUD’s goal – to further insure physical inspections are objective and conducted in accordance with protocol.

HUD’s improvements are only one side of the coin. Owners and Managers must take matters into their own hands. Conducting an aggressive 100% pre-inspection of units, common areas, site, building exterior and mechanical systems is the only acceptable option if prevention of a low score is your goal. Conduct mock inspections using the new Uniform Physical Condition Standard (UPCS). Be sure to use a detailed Physical Inspection Checklist to assist you with this process. Document your findings and make repairs before your scheduled inspection.

While HUD has supplied REAC Inspectors with additional training and reinforced protocol in an effort to increase uniformity of inspections and inspectors, do not rely solely on the knowledge of the inspector to see you to success. Did you know inspections can only be conducted on a mutually agreeable date and time? Agree to an inspection date that allows ample advance notice, not only to conduct a 100% pre-inspection but to repair problem areas discovered. Did you know you can replace a non-working light bulb in the midst of an inspection, to prove a fixture is operable, and avoid loss of points? Know your rights and be prepared.

Re-inspections occur less frequently the higher you score. Scores of 60 and below are referred to the Departmental Enforcement Center and can constitute a Violation and/or Default under the Regulatory Agreement, HAP Contract and/or Use Agreement. Receiving a repeat score of Under 60 can result in a declaration of Default under the Mortgage, Termination of the HAP Contract, and/or other serious actions. The potential consequences are severe.

Murphy Consulting has identified the most valuable HUD resources available to support owners and managers in mitigating REAC inspection problems. For your convenience, we have compiled these resources onto a CD-ROM, a must have for all owners, managers, and PHA’s.

Education, vigilance and well-conducted 100% pre-inspections, can aide owners and managers in realizing improved REAC scores. Take advantage of all available resources and be prepared for your next REAC inspection.

This editorial is for informational purposes only and is not designed for, nor should be relied upon, as a source of legal guidance or as a final authority with respect to any particular circumstance.

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