On September 28, HUD announced the continuation of the demonstration to assess HUD’s National Standard’s for the Physical Inspection of Real Estate (NSPIRE) through April 30, 2023. The demonstration began in August, 2019; once the demonstration period ends, HUD’s NSPIRE effort will replace the agency’s current approach to physical inspections in HUD-assisted properties. 

The extension comes after LeadingAge requested that HUD adjust its original implementation timeline of 2021 due to the pandemic. LeadingAge argued that an extension would allow for HUD to make up lost time “in the field” testing its new standards and scoring, and would also allow properties time to adjust to a new physical inspection protocol after more than a year navigating a public health emergency.

In March 2021 comments to the agency, LeadingAge stated: “COVID-19 has changed the landscape of health and housing in every aspect of life. In the physical inspection overhaul, we urge the agency to build in lessons learned where appropriate…We also urge the agency to push back the timeline for full NSPIRE implementation; due to COVID-19, HUD has not been able to conduct critical fieldwork to test the NSPIRE scoring. While HUD has made many efforts to conduct remote listening sessions to gather stakeholder input (and should continue to do so), these remote efforts cannot replace the fieldwork needed to test the proposed changes. Therefore, HUD should delay implementation until the NSPIRE demonstration is fully complete and HUD has collected the data it needs to implement its comprehensive inspection overhaul.”

According to the Federal Register notice, “The continuation provides the authority to further evaluate and refine the future state of HUD’s physical inspection model.”

LeadingAge has encouraged our affordable senior housing provider members to take advantage of the demonstration program, which allows owners and operators to help shape the new landscape of physical inspections and spares properties regular UPCS inspections through REAC throughout the duration of the demonstration program. LeadingAge has invited HUD REAC staff to join a call with housing members to provide updates on the current status of NSPIRE and what housing communities can expect in the coming months and years.

LeadingAge’s workgroup previously submitted robust public comments to the agency on the implementation of NSPIRE. More information about HUD’s planned REAC overhaul is available here. Contact Juliana (jbilowich@leadingage.org) for more information or to join LeadingAge’s HUD Oversight Workgroup, which meets monthly to discuss MORs, physical inspections, and other HUD portfolio oversight mechanisms.