HUD Extends NSPIRE Physical Inspection Pilot to 2023

On Sept. 28, HUD published a Federal Register notice announcing the extension of the National Standards for the Physical Inspection of Real Estate and Associated Protocols (NSPIRE) to April 30, 2023. The NSPIRE demonstration is a part of HUD's efforts to test the overhaul of 20-year-old inspection protocols. The program tests new approaches for making certain thousands of public housing authorities and private owners provide housing that’s safe and livable. Owners who aren’t in the NSPIRE demonstration program should continue to follow the existing protocols of UPCS and HUD REAC inspection policies and procedures.

In 2019, HUD sought volunteer PHAs and owners of private HUD-assisted multifamily properties to participate over the course of two years. At the time, HUD planned to inspect 4,500 properties willing to adopt the NSPIRE model voluntarily. The NSPIRE demonstration assesses all aspects of REAC’s physical inspection process, including the evaluation of physical inspection data and a new scoring model. The goal is to design a new simplified inspection system that more accurately reflects the physical conditions within housing units and to place a greater emphasis on issues like lead-based paint hazards and mold.

Wait list open. According to HUD, though HUD has achieved its goal of 4,500 volunteer properties for the demonstration, it has opened a wait list in the event additional spots become available. This latest extension comes as HUD, PHAs, and owners restart inspections and resume operations that had been halted during the COVID pandemic. The extension will allow time for HUD to test the standards in the field, refine inspection protocols, and establish business processes and supporting technology.

The latest announcement also clarifies that additional extensions and changes may be added between now and April 30, 2023. And it reiterates that program-specific and participant requirements outlined in the 2019 notice continue to apply. This includes a general waiver from undergoing a UPCS inspection during the duration of the demonstration for participating properties.