REAC Inspections

Murphy Consulting has partnered with a national insection firm to provide in-depth REAC training
to its management operations clients.

Any multifamily housing property with a HUD insured loan and/or subsidy is subject to periodic
REAC Inspections. HUD requires these physical inspections to ensure families have housing that
is decent, safe, sanitary and in good repair. The breadth of these inspections, the complexities of
the scoring criteria and some inconsistencies with inspectors can make it difficult for managers
and owners to stay in compliance.

Inspection Score reports can only be accessed in PASS on the HUD Secure System (also known
as WASS - Web Access Secure System). HUD monitors those scores for ongoing compliance
and asset management oversight.

REAC Scores are also reported when submitting for previous participation approval (via a
HUD 2530). A low REAC Inspection score can result in a Flag, which may prevent an owner
or management agent from being approved to participate in future HUD programs.

EIV System

The Enterprise Income Verification System (EIV) was put in place by HUD to reduce errors and
streamline income verification at affordable housing communities that have HUD subsidies and
HUD insured loans. Its use became mandatory in 2010. To insure security and maintain privacy,
access to the EIV System is subject to significant extensive security requirements for HUD
Secure System Users and Coordinators.

EIV obtains monthly Social Security (SS) and Supplemental Security Income (SSI) benefits data
from the Social Security Administration (SSA), and monthly employer new hires (W-4), quarterly
wage and quarterly unemployment data. This information is reviewed as part of the initial
tenant certification process, at annual re-certification and at other times as regulated by HUD

Murphy Consulting partners with US Housing Consultants to provide EIV services.


Murphy Consulting assists owners, management agents and auditors with HUD Secure System
access issues relating to financial reporting in FASSUB, including terminated ID's, Auditor
assignments, problems with incorrect Tax ID #'s, and properties not populating correctly in the
system. We can also submit your Stub Period Waiver request.

The Financial Assessment Sub-System (FASSUB) is required to be used by multifamily rental
properties and healthcare facilities with HUD insured loans. Whether your property qualifies to
submit Owner-certified financials or must submit Audited Financial Statements, gaining and
maintaining access year to year is critical to meeting your filing deadlines and avoiding HUD
Flags for non-compliance.

FASSUB is part the HUD Web Access Secure System (WASS), a secure single sign-on portal
that is also the gateway for APPS, EIV, PASS and more. Its use became mandatory in 2008 to
transmitannual financial statement data to HUD for assessing the ongoing financial condition of

Newly financed properties may qualify for a Stub Period Waiver in the first fiscal year, which
allows partial year reporting to be rolled into the first full fiscal year. Waiver requests (as well as
Extension Requests) must be submitted electronically thru FASSUB for approval.