February 14, 2023

Key Update: HUD Clarifies NSPIRE Inspections

In conversations with LeadingAge on February 13, the Department of Housing and Urban Development’s (HUD) Office of Multifamily Housing Programs clarified that the agency will not conduct housing inspections of record under the National Standards for the Physical Inspection of Real Estate (NSPIRE) demonstration program until the NSPIRE materials are finalized and published, which could be as late as May or June. HUD had recently stated its intention to switch from advisory inspections to scored housing inspections for demonstration participants starting April 1, despite the fact that REAC’s new NSPIRE physical inspection protocol, including a final rule, official housing safety standards, new scoring methodology, and updated administrative procedures are not expected to be published by HUD until later this spring.

The commitment from HUD to delay official inspections for demonstration participants allows housing providers to remain in the demonstration without risking an inspection under rules and scoring that are unknown to them. Once the NSPIRE protocol becomes final, those in the demonstration could receive “inspections of record” after a 28-day notice of inspection. Owners can also choose to opt out of the demonstration program and to receive a standard UPCS inspection instead, but each property must notify HUD of the opt-out by March 1st. More information about the demonstration program rule change is available here, and LeadingAge is working with HUD to issue clarifying FAQs.