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National Interagency Physical Inspection Alignment Program

Developing affordable rental housing increasingly relies upon multi-layered finance/support from multiple Federal and State agency sources to build, rehabilitate and operate the housing.  With this mixed program support comes differing and often redundant Federal and State statutory and regulatory requirements, especially regarding the physical inspection of a property.  The IRS, HUD and USDA, along with the State agencies all require a physical inspection of supported properties, occurring either annually or in cycles of up-to-five years.  The result is rental properties commonly having two, three or even five separate inspections per year. Each inspection reviews the same or similar housing standards and involves a sample of the residentsā€™ units. This redundant inspection process results in both significant time and monetary expenses for the agencies, owners and residents. 

The Interagency Alignment Program (AP) is a common-sense collaboration among the U.S. Departments of Housing and Urban Development (HUD), Treasury/Internal Revenue Service (IRS), Agriculture (USDA) and all State Housing Finance Agencies. Its purpose is to streamline regulations and business processes related to the physical inspections of affordable rental properties supported by these agencies.  It results in considerable cost avoidance and lessened burden on all involved ā€“Federal agencies, State agencies, owners, investors and property residents. 

The Real Estate Assessment Center (REAC) conceived an unparalleled affordable housing database and integrated it within a secure web-based platform. The Physical Inspection Alignment and LIHTC Portal contains all affordable housing properties and automatically identifies those with overlapping compliance requirements by matching properties across several programs: State LIHTC, HUD Multi-Family, FHA Insured542(c), Housing Trust Fund and USDA RD 515. 

Results in Significant Cost Avoidance 

The elimination of redundant physical inspections frees up resources for other more efficient uses. 

For more information or additional resources contact Dina.E.Elani@hud.gov



Email us: Dina.E.Elani@hud.gov