March 18, 2022

HUD On Track to Implement NSPIRE Demonstration

BY Juliana Bilowich

HUD’s NSPIRE Demonstration program, which will replace REAC’s current physical inspection standards and protocol under the Uniform Physical Condition Standards (UPCS) for the HUD-assisted housing portfolio, is on track to complete over 900 advisory inspections by the end of May 2022. HUD inspectors will continue to work with approximately 4,500 volunteer properties to identify potential adjustments to NSPIRE standards, protocols, and processes, which will then be rolled out to the broader portfolio.

According to an agency update, HUD has made significant progress toward completing 900 NSPIRE demonstration inspections by May 2022. Many LeadingAge members participating in the demonstration program have reported being scheduled for their NSPIRE inspection after two years since enrolling in the pilot program.

During these test inspections, inspectors are focusing on health and safety conditions that are Critical to Quality, or CTQ, with emphasis on the condition of dwelling units and common areas used by residents. Properties volunteering to participate in the Demonstration will receive at least one inspection using the new NSPIRE standards and protocols. These NSPIRE inspections are advisory only.

HUD began the NSPIRE Demonstration on August 21, 2019, to test and refine NSPIRE as it is being developed. Due in large part to pandemic delays, the NSPIRE demonstration program was previously extended until April 2023 to give HUD and housing providers more time to implement the coming changes.

Following the test inspections this Spring, HUD will finalize updates to the new physical inspection standards and protocol. LeadingAge has weighed in regularly with HUD on the process for rolling out the changes, as well as on the proposed protocol and standards.

To join LeadingAge in this effort, or to join our monthly working group on HUD oversight mechanisms, reach out to Juliana (jbilowich@leadingage.org). To learn more about HUD’s NSPIRE efforts, click here.

What To Expect During an NSPIRE Demonstration Inspection

As NSPIRE demonstration inspections ramp up for participating properties, many LeadingAge members have NSPIRE inspections scheduled for the Spring of 2022. A recent HUD email communication explained what properties can expect during an NSPIRE inspection as part of the demonstration.

If a property is participating in the demonstration, a HUD REAC inspector will follow a similar protocol as the Uniform Physical Condition Standards (UPCS). For example, NSPIRE inspections are still required to follow HUD’s COVID-19 guidance issued April 2021, including related to wearing PPE, travel protocols, and social distancing; NSPIRE inspections also benefit from the temporarily extended 28-day notice. 

As with regular REAC UPCS inspections, properties should report any known COVID-19 cases on site to the inspector. This will not likely result in a cancellation or delay of the inspection, but an inspection will choose a different unit sampling based on the COVID-19 disclosure.

For NSPIRE demonstration participating properties, on the day of the inspection, the inspector will use the NSPIRE standards to perform a CTQ inspection while following COVID-19 protocols. After the inspection, or at the end of each day of a multi-day inspection, the inspector will provide the property a list of Health & Safety deficiencies. This list will be accessible in the NSPIRE Demonstration Case Management System, to which REAC has provided volunteer properties access. The property must address the deficiencies cited and submit evidence of mitigation in the Case Management System using the timeframes prescribed under NSPIRE. Although Demonstration scores are only advisory for refining NSPIRE standards and protocols, any conditions that an inspector deems to be a failure to provide acceptable basic housing could subject a property to a UPCS inspection.

Currently, the NSPIRE Demonstration is in phase two of two. In this phase, inspectors are visiting participating properties at least once to conduct CTQ inspections. These inspections help HUD ensure the consistency, accuracy, and objectivity of the new NSPIRE CTQ standards. A list of the CTQ standards and deficiencies are available on the NSPIRE website for stakeholder feedback. Additionally, REAC will provide POAs with an opportunity to participate in focus groups to provide feedback on NSPIRE.