HUD published a Notice of Emergency Approval of an Information Collection: National Standards for the Physical Inspection of Real Estate (NSPIRE) Demonstration. The document outlines a few important details for the new 2-year Real Estate Assessment Center (REAC) demonstration which HUD hopes will identify potential adjustments to standards, protocols, and processes.

HUD will require NSPIRE demonstration participants to submit the following information: an annual self-inspection report or work order receipts, a property profile, copies of building system certificates, local code violations over the rolling calendar year, and participation in feedback sessions.

The multi-stage demonstration will be limited to approximately 4,500 properties and HUD estimates that it will take properties 2.7 hours per property to complete the information collection. Comments are due June 6 and should address:

  1. Whether the proposed collection of information is necessary for the proper performance of the functions of the agency, including whether the information will have practical utility;
  2. The accuracy of the agency’s estimate of the burden of the proposed collection of information;
  3. Ways to enhance the quality, utility, and clarity of the information to be collected; and
  4. Ways to minimize the burden of the collection of information on those who are to respond; including the use of appropriate automated collection techniques or other forms of information technology (e.g., permitting electronic submission of responses).

NH&RA encourages all eligible PHAs, owners and agents to participate in the NSPIRE demonstration. Properties will be given an advisory NSPIRE score and the most recent UPCS score will remain on the books. NSPIRE demonstration participants will have the opportunity to shape the new REAC inspection protocol and to prepare in advance of the mandatory changes. While the official NSPIRE Demonstration Notice has yet to be published, interested parties can learn more here and at NH&RA’s upcoming Asset Management Conference  June 3 & $4 in Minneapolis, MN. Deputy Assistant Secretary for REAC Donald LaVoy will outline the coming changes during the Managing Your Management Company: Supervising the Internal and Third Party Inspections panel.