On Wednesday, July 6, 2016, NAHMA had forwarded a notice from Real Estate Assessment Center (REAC) 
containing specifics on updates for physical inspection protocols. This notice was released in a hurry by HUD, however NAHMA has also acquired the revised REAC notice. This updated notice outlines specific products and deficiencies that REAC inspectors will examine during every inspection, including background information for the updated physical inspection protocols. The new changes became effective on August 1, 2016.
Going by the new update, it becomes essential that all repair work which addresses UPCS deficiencies; while preparing for a REAC inspection must be executed carefully using appropriate materials that don’t have any defect. While doing so, it will be necessary to ensure that:
- Every component used performs its intended purpose
- Repair work is reasonably compatible with the quality and design of the original/adjoining materials
Every repair that is done must be done as per the industry standard defined for the item in question (including the material used, the texture and everything else). Any substandard repair that appears otherwise will be recorded as a deficiency. Some of the most common inspectable items that are often not repaired properly include:
- Door
- Brick wall
- Refrigerator Gasket
- Drywall
- Downspouts
- Electrical panels
- Erosion at multiple places
- Stick for holding a window up
REAC inspectors will need to promptly record any deficiency in the inspectable items that use sub-standard materials; with the aim to disguise a UPCS deficiency. Those who represent a property can use the procedure for Technical Review/Database Adjustment to appeal against the deficiencies that cite execution of sub-standard repair work, and that the deficiency must not have been recorded then and there. The process for making this appeal will be similar to any other similar appeal process, and will need the property representative to produce required documents supporting the case along with the ones that support repair work in accordance with the industry standards.
Such appeal document must cover the entire essential information, and must be attached along a justification from a third party expert on the matters pertaining to the type of deficiency in question. By executing this process, certain positive changes will be expected to come in effect, such as:
- Real estate players will be bound to use standardized materials for executing repair work
- REAC certification process will become a lot more challenging
- HUD resources may be saved from getting wasted by having illicit construction activities under check
- With technology in play, it will be easier to assess the quality of a property
- Housing quality will be kept at par with the industry standards
If you want to delve into more on REAC Inspections and New UPSC Inspection Standards, you can join expert speaker Hank Vanderbeek, MPA, CMI; in a live webinar, titled “Updates to REAC Inspection New Rules: Application and Interpretation”, on Thursday, April 6, 2017. By attending this event, you will get a greater understanding of the REAC inspection process and answer for all your questions related to UPCS inspections. Hank will also cover the mission and the goals of the agency charged with conducting the inspections to the pre-inspection inspector rules of conduct and protocols.
