Agency Set to Test Overhaul of 20-Year-Old Inspection Protocols

With the release of the National Standards for the Physical Inspection of Real Estate (NSPIRE) Demonstration Notice (84 FR 43536) on August 14, 2019, HUD announced another step to overhaul the Department’s 20-year-old inspection process to ensure taxpayer-supported housing is safe and habitable for residents.

As part of a reexamination of the inspection protocol used by REAC, HUD has launched a new demonstration to test new approaches for making certain thousands of public housing authorities (PHAs) and private owners provide housing that is safe and livable.

During the NSPIRE Demonstration, HUD will inspect approximately 4,500 properties from a pool of nationwide volunteers who are willing to adopt the new physical inspection standards at their properties.

The NSPIRE Demonstration assesses all aspects of REAC’s physical inspection process, including the evaluation of physical inspection data and a new scoring model. The goal is to design a new simplified inspection system that more accurately reflects the physical conditions within housing units and to place a greater emphasis on issues like lead-based paint hazards and mold.

On September 28, 2021, the Department of Housing and Urban Development (HUD) published a Federal Register notice, Notice of Continuation of Demonstration To Assess the National Standards for the Physical Inspection of Real Estate and Associated Protocols (86 FR 53570), which extends the NSPIRE Demonstration (84 FR 43536) through April 30, 2023.

This extension came as HUD, PHAs, and POAs restarted inspections and resumed operations which had been halted during the COVID pandemic. The extension allowed further time for HUD to test the standards in the field, refine inspection protocols, and establish business processes and supporting technology.

On January 25, 2023, published a Federal Register rule (88 FR 4727), issuing the final extension of the NSPIRE Demonstration. Because the Demonstration has been running since 2019, Demonstration participants have not received an inspection of record for several years. HUD seeks to prioritize providing Demonstration participants an inspection of record. Through the most recent rule, HUD is informing Multifamily Housing program participants who are currently in this demonstration and have yet to receive an inspection of record since joining the demonstration that between April 1, 2023, and September 30, 2023, HUD intends to conduct an inspection using the NSPIRE standards and scoring and that this inspection will be considered an inspection of record.

Demonstration participants who do not wish to be subject to an NSPIRE inspection of record before October 1, 2023, may choose to opt out of the NSPIRE demonstration by submitting a request via email to NSPIRE-Demo-Opt-Out@hud.gov no later than March 1, 2023. Demonstration participants who opt out of the demonstration will be subject to a UPCS inspection of record.

Additionally, through this notification, HUD is revising the end of this demonstration to align with the NSPIRE final rule. The demonstration will end for Public Housing participants on June 30, 2023, the day before HUD intends to begin inspections under NSPIRE for Public Housing, and the demonstration will end for Multifamily Housing participants on September 30, 2023, one day before the day HUD intends the NSPIRE final rule to take effect for Multifamily Housing. HUD will provide additional notice through Federal Register notice should these dates change.

Related Links

• Benefits for volunteer properties participating in the NSPIRE Demonstration
• List of properties selected for participation in the NSPIRE Demonstration
• NSPIRE Demonstration Toolkit: Health & Safety Closeout Using Salesforce
• All NSPIRE official notices, rules, and proposed rules