SECTION 202 AND SECTION 811- DEVELOPMENT TEAM REFERENCE GUIDE
For Project Development and Preservation
Richard Silverblatt Associates, Inc.
Preparing for a REAC Inspection
The project owner is required by HUD to sign a number of documents, such as the Regulatory
Agreement and, as appropriate, the Project Rental Assistance Contract (PRAC) or Housing Assistance
Payment Contrract (HAP), which states that the project will be maintained in good and tenantable
HUD's Real Estate Assessment Center, REAC, has established a process for its review of the physical
condition of its projects. The inspection involves an onsite review by HUD personnel of the entire
property, both outside the structure as well as inside the project building. If REAC inspects and notes
elements within the project that can impact on the health and safety of the residents, the property
owner has a short time period to address the items listed and appeal the REAC findings if warranted.
The Guide recommends that all property Owners and staff and the management agent involved with
ongoing maintenance of the HUD project, review the HUD requirements and be prepared for an
on-site inspection. A project owner with a REAC score below 60 that does not address listed
deficiencies timley, can result in a number of actions by HUD, to include, attaching a flag in HUD's
Active Partners Performance System (APPS) which may affect the ability of the Owner to participate
in HUD programs; seeking other remedies, such as abating, suspending or terminating the PRAC ot
REAC will issue a Physical Inspection Summary Report following its visit to the property. Numerical
scores will be given as a value from zero to 100 and specifically for inspectable items in the five
following areas: the site, building exterior, building systems, common areas and units.
Be mindful of the following further notations to a REAC numerical score which indicate what REAC
calls the "serious nature" of health and safety deficiencies: To each numerical score, REAC will also
include an asterisk if there were deficiencies related to smoke detectors. A letter "a" is added if there
are no health and safety deficiencies other than for smoke detectors. A letter "b" is added if there are
one or more non-life threatening health and safety deficiencies, but no issues related to fire safety
other than for smoke detectors. A letter "c" is added if one or more exigent/fire safety deficiencies
are found which require an immediate remedy and attention.
Being prepared for a REAC inspection can involve the establishment of a comprehensive ongoing
review of your property and building systems which can also be a part of your project preventive
The following are recommended for review:
HUD guidance on its website: "Preparing for REAC Inspections":
HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs
HUD Handbook 4381.5, Management Agent's Handbook.
Review the list on this webpage for examples of staff training for REAC inspections. Note the link to
the top 25 most cited deficiences for multifamily housing.
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