reac inspections

Understanding HUD REAC Inspections

Property inspections may feel daunting but our group of consultants offers strategies to help clients get the highest possible score on REAC inspections. As REAC consultants, we offer a variety of services, but most of all we work to save clients time and money on unnecessary changes while focusing on the real inspection details. While the protocols and standards are set to change in 2023 with the roll-out of HUD’s new NSPIRE program, we still want you to learn more about REAC inspections and how to best prepare for a passing inspection.

What Does REAC Inspection Stand For?

HUD (US Dept. of Housing and Urban Development) inspects properties on site based on a set of standards to ensure the safety of buildings for residents. REAC stands for Real Estate Assessment Center. Their mission and goal is to provide customers with assessments that increase safety and prioritize health and sanitation at their properties across the United States. The ultimate goal of REAC is to improve affordable housing with standards laid out by this protocol.

What is a HUD REAC Inspection?

A HUD REAC inspection sets standards for safe and sanitary public housing by which managers of buildings under HUD must follow. REAC includes the following:

  • Physical inspections of HUD housing
  • Review of public and multifamily assisted housing financial statements
  • Review customer surveys to determine levels of satisfaction with housing
  • Assessing current management certifications and operations paperwork
  • Scoring of affordable housing clients to determine whether or not they pass and how to make appropriate changes

Our customers seek consultation and assistance with the HUD REAC process. We come alongside to develop a plan from pre-REAC inspections to after they are finished so that our clients feel confident in passing REAC inspections or getting assessment on the back end.

What is a Passing REAC Score?

Scores for REAC are based on an overall score from zero to 100. Inspections focus on everything from community rooms to building exterior, units and more. Subtractions to the score are made when any deficiencies are found during inspection. Presently, anything over 60 is considered passing. Some things to keep in mind with scoring:

  • Any score over 90 will warrant next inspection in three years
  • Any score from 80 to 89 will receive inspections every other year
  • Scores below 80 will be inspected every year unless there are inadequacies that need to be fixed before then

Outside of these numerical scores, REAC scores using letters much like school grades. A means no health or safety violations were seen; B means one or more non-critical issues were present and C means there are one or more issues to resolve immediately due to hazards or serious life-threatening issues.

What Happens If You Fail a REAC Inspection?

The goal of our consultants is to help customers avoid failing the inspection. However, we have consultants who fail their REAC inspection and are looking to appeal. The appeals system is one way our consultants support clients. Properties may feel a sense of defeat following a failed REAC inspection. Here are some suggestions on how to handle a failed REAC inspection appropriately:

  • Be prepared to move forward. Rather than get stuck trying to resolve the issues, develop a plan and start thinking about next steps
  • Seek a REAC appeal. A REAC appeal can increase the score and help build a plan to be more compliant and focused on achieving more positive results in the future. Our consultants are available to support clients every step of the way on this journey
  • Design a response with a survey of the property. A survey by an independent company or consultant can help set another pair of eyes on the property to review every inch of space to support an appeal
  • Resolve and repair as the final step to make sure the work is done properly. Property owners need a great consulting company who specializes in this work to help them navigate what to change and where to make adjustments

The truth is, inspections are stressful for everyone. Don’t let inspection challenges feel so daunting without seeking guidance and support from experts. A great consultant will help demystify the process, support an appeal, and be there every step of the way to help clients see success is possible.

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