HUD Proposes Rule to Overhaul Physical Inspections

Regulation | January 21, 2021 | by Juliana Bilowich

NSPIRE proposed rule adjusts physical inspection standards, protocol; comments due to HUD by mid-March

On January 19, HUD announced the publication of the proposed rule for the National Standards for the Physical Inspection of Real Estate (NSPIRE). The NSPIRE program was initially launched in 2018 as a two-year demonstration program to comprehensively overhaul HUD’s current physical inspection approach, which utilizes the Uniform Physical Condition Standards (UPCS) for inspections.

On a LeadingAge call in mid-2020, leadership from HUD’s Real Estate Assessment Center confirmed that despite COVID-19, HUD was sticking to its planned timeline of rolling out the new physical inspection standards and protocol for HUD’s broad rental housing portfolio more broadly by the end of 2021.

The proposed rule implements feedback provided to the agency from LeadingAge members and other housing providers throughout the demonstration period; the publication established the regulatory framework necessary for the implementation of the program when final.

LeadingAge has compiled draft comments on the proposed rule to submit to HUD by the March 15th deadline. Please send any comments or feedback on the proposed standards or protocol to jbilowich@leadingage.org. More information about NSPIRE is available here, and more information about the proposed rule is available here.