The Inspection Group offers consulting and support services to help clients with building inspections, along with providing key information and understanding about changes to how inspections work. In 2023 the REAC inspection protocols are being replaced by NSPIRE (National Standards for the Physical Inspection of Real Estate), which features new standards, protocols, and procedures for assessing conditions. These standards include properties run by HUD, like public housing, FHA-insured building and HUD-assisted multifamily properties. Our goal is to bring our experience and observations to the process to help guide you through the process as changes occur.
What is the New NSPIRE Model?
The NSPIRE model of real estate inspections is a new protocol designed to streamline the process and create better standards for safety. A physical inspection helps monitor a property’s progress and assure a safe living environment. NSPIRE records onsite conditions during the inspection and keeps property owners accountable for conditions found onsite. The policy also outlines how to train inspectors to assist property owners with checking on their buildings, documenting, and sharing this information with HUD.
Inspections will be conducted using the new NSPIRE protocol, including evaluation of the site, building system, building exterior, common areas, and the unit. Each area will have observable items to note and whether they meet the standards or are deficient and need fixing.
What is Changing with NSPIRE?
With the creation of NSPIRE, which overtakes REAC’s older protocols, we want property owners to understand the changes. One of the big shifts is the need to accept a 14-day notice from inspectors. Final changes to be incorporated will include:
- Requirement that all site owners and managing agents perform annual self-inspections of their units
- Focus on health and safety issues more than how the place looks or functions
- Common areas will get less emphasis with more focus on inside of units where residents spend the most time
- New procedures including testing for up to five units in the inspection group
- Resident surveys that may be included
- Previously inspection notifications were given up to 120 days prior but new requirements focus on 14 days and less flexibility in rescheduling to encourage more upkeep and maintenance work to be done by clients rather than working to catch up ‘last minute’ just to pass inspections
Our hope is to support clients in understanding the new goals of NSPIRE and support them to make the inspection process more streamlined. We will help clients look at areas that directly affect residents the most. By looking inside units, the building itself, and the site, a weight will be given as a score based on sections of the inspection. For instance, the importance given to dwelling units is increased from 35% to 50%, or half, of the score. The property will not pass inspection if the dwelling unit section fails. This will incorporate new living standards for residents to ensure excellent safety and enhanced living conditions. We are here to help answer any questions that come up during the process.
When Does NSPIRE Take Effect?
According to HUD, NSPIRE was given a pilot demonstration of properties through 2020 and beyond. Within that time frame, the goal was to re-examine REAC inspection systems and seek to upgrade its processes to enhance the quality of life and safety for residents in HUD properties. NSPIRE, as a result, is tentatively scheduled to take effect on October 1, 2023, to replace UPCS used by REAC inspectors. An update to inspection protocols will also be done. Once the change occurs, management owners and agents must adhere to the guidelines for physical properties. We are here to support and engage with clients as they navigate through these changes and any updates as things move forward.
Preparing for NSPIRE
Physical inspections play a vital role in assessing the safety and durability of a property for its residents. To this end, HUD employs the Real Estate Assessment Center (REAC) inspections through the NSPIRE program to identify deficiencies and prioritize improvements. Consistency, objectivity, and accuracy are paramount in ensuring that inspections are effective. The NSPIRE pilot program aims to standardize inspections across the board, improving the experience for everyone involved, particularly residents of the evaluated properties. With the implementation of NSPIRE, we will work with clients to establish and nurture relationships with HUD-approved sites, creating safe living spaces while providing clear guidelines for upkeep and maintenance.
Questions about NSPIRE?
Speak with a consultant at The Inspection Group for more information.
