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New Notice About REAC Inspections

HUD recently released Notice H2015-02 Required Actions for Multifamily Housing Projects Receiving Failing Scores from HUD's Real Estate Assessment Center (REAC)

This Notice discusses new rules and procedures for properties that receive a score of less than 60 on a REAC inspection. The Notice is very extensive and details the rules, procedures, and steps for what should and should not occur if a property scores below 60, or if there are consecutive scores less than 60. The major points of the Notice cover the following subjects:

  1. Second Consecutive Failed REAC Inspections
  2. REAC Appeals - Withholding Enforcement Pending Decision
  3. HUD's Initial Response to Owner
  4. Requirements of the Owner when project scores less than 60
  5. Non-Compliance Notice Provided to Tenants
  6. REAC Re-Inspection Requests
  7. Scores of 30 or lower & Referrals to Departmental Enforcement Center