Presented by: Greg Nolan & Mark Pelton                                         1
2
   28 years in COOP property management   Over 300 REAC inspections performed   Regional Maintenance Supervisor   REAC...
   60 REAC inspections performed   8 years as a Regional Property Manager   MAHC Trainer for 8 years   Regional Proper...
   How to schedule, prepare & conduct   Scoring   Deficiency Items   The report   How to appeal-instructions         ...
WHAT IS REAC?                6
   Acronym for   *HUD’s way of assessing Safe,                  Decent & affordable housing Real            What is the ...
   Reverse auction-Mortgage Inspection   Agreed upon day of inspection-who can    schedule-one person in the company   ...
PREPARING FOR REAC                     9
   When to Start    ◦ After last REAC    ◦ 3 months before scheduled or      anticipated REAC date.                      ...
Documents Needed                              Property Map & Rent Roll                              Measurement of walkw...
Occupation CalculationStep 1: Subtract Number of Vacants   Step 2: Divide # Occupiedfrom the number of units.            u...
   Know your property   Schedule unit inspections   Inspect, Repair, Highlight   Schedule exterior inspections   Asse...
REAC SCORES              14
100-90       3 years89-80        2 years79-60        1 year59-31        Failing, not necessarily             referred to e...
Why is enforcement action taken?            When owners of HUD-assisted properties do not live up     to their responsibil...
   Level 1 Deficiency – Lowest amount of points   Level 2 Deficiency – Higher amount of points   Level 3 Deficiency – E...
CONDUCTING THE  INSPECTION                 18
   Relationship with inspector   2 people to perform inspection with inspector   Understand REAC Protocol   Maintain g...
   Maintenance package    ◦   1.   Light bulb    ◦   2.   9V batteries    ◦   3.   Screwdriver and pliers    ◦   4.   Swi...
SITE HITS            21
If it’s there, it must function as it is designed tofunction.   Fencing – Perimeter and building 3 to 4 Deficiencies   R...
   Grounds    ◦ Overgrown/penetrating vegetation    ◦ Erosion/Rutting    ◦ Ponding Site Drainage   Parking lots    ◦   C...
   Play Areas            ◦ Damaged play area            ◦ Broken Equipment/Benches        Walkways /steps            ◦ C...
   Graffitti    ◦ Level 1 – 1 place    ◦ Level 2 – 2 to 5 places    ◦ Level 3 – 6 or more   Litter – Excess   Have a gr...
EXTERIOR           26
If it’s there, it must function as it is designedto function. Fire Escapes – Missing components  or blocked Foundation  ...
   Roofs                  Windows    ◦   Shingles            ◦   Broken    ◦   Vents               ◦   Sills    ◦   gutt...
SYSTEM HITS              29
If it’s there, it must function as it is designed to function Water    ◦ Leaking spigots    ◦ Misaligned flu    ◦ Missing...
   Sanitary System         Emergency power    ◦ Broken pipes           ◦ Lights don’t work    ◦ Clean out covers      E...
UNITS        32
If it’s there, it must function as it is designed tofunction.   Blocked Egress-doors & windows-Biggest Inside Hit   Bath...
   Windows    ◦ Hardware & Sill    ◦ Seal, lockability, broken glass   Stairs    ◦ Treads & Railing   Patio/porch/balco...
   Lighting    ◦ Must work – carry bulb   Electrical    ◦ Outlets    ◦ Covers    ◦ Switches                             ...
Exigent Health &     Safety                   36
   Electrical Hazards   Emergency/Fire Exits   Air Quality   Flammable Materials-Gas    lines, propane, charcoal fluid...
   Hazards-Tripping, Sharp Edges   Infestation   Misaligned Flu in hot water heater or    furnace   Will not enter a u...
   Smoke detectors that are    inoperable or missing will    be noted on the REAC    report as a EH&S violation    that h...
   Cable trip hazards are non scoreable.                                            40
COMMON AREAS               41
   Maintenance Garage   Office   Clubhouse or Community Room   Exercise Room   Pool & Playground   If an area has ut...
APPEALING A SCORE                    43
Technical Review- A technical review may be requested if during the inspection an objectively material error occurred that...
   A request for database adjustment initiates    a review of the results of a physical    inspection. A database adjustm...
REAC REFERENCES                  46
   www.hud.gov/offices/reac   Technical Assistance Center-1800-245-4860   DCD 2.3a Public Version User Guide   Compila...
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Knocking Out Reac

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Reac inspections explained!

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  • 1 person rights down deficiencies, 1 person to gain entry, diversion tactics-as you are walking the exterior, talk about his/her interest
  • Knocking Out Reac

    1. 1. Presented by: Greg Nolan & Mark Pelton 1
    2. 2. 2
    3. 3.  28 years in COOP property management Over 300 REAC inspections performed Regional Maintenance Supervisor REAC Inspector training Over 70 inspections in the 90’s Registered Cooperative Manager 3
    4. 4.  60 REAC inspections performed 8 years as a Regional Property Manager MAHC Trainer for 8 years Regional Property Manager Certified Apartment Property Supervisor (CAPS) 6 years as a Registered Cooperative Manager 4
    5. 5.  How to schedule, prepare & conduct Scoring Deficiency Items The report How to appeal-instructions 5
    6. 6. WHAT IS REAC? 6
    7. 7.  Acronym for *HUD’s way of assessing Safe, Decent & affordable housing Real What is the purpose Estate of a REAC? To give oversight on the Assessment physical condition of subsidized properties. Center 7
    8. 8.  Reverse auction-Mortgage Inspection Agreed upon day of inspection-who can schedule-one person in the company Period of Performance Rescheduling Inspection/Delaying Inspection 1. Site is undergoing Rehab-any type 2. Natural Disaster-Tornado/flood/fire 8
    9. 9. PREPARING FOR REAC 9
    10. 10.  When to Start ◦ After last REAC ◦ 3 months before scheduled or anticipated REAC date. 10
    11. 11. Documents Needed  Property Map & Rent Roll  Measurement of walkway by square feet, parking lots & roadways by sq ft. Notice of Inspection Show Lead Based Paint Inspection Report & 5 member files showing LBP Disclosure form Occupancy Rate 85% and above 11
    12. 12. Occupation CalculationStep 1: Subtract Number of Vacants Step 2: Divide # Occupiedfrom the number of units. units by Total # of Units # of Units: 87 74 ÷ 87 = - # of Vacants: 13 85.057471% 74 *74 is total number of OCCUPIED UNITS 12
    13. 13.  Know your property Schedule unit inspections Inspect, Repair, Highlight Schedule exterior inspections Assess scope of work How many work orders  What work will be done by staff, contractors, or members.  Cost of performing work: (concrete patching, drywall repairs)  What was your last score?  Have you completed unit inspections since the last REAC inspection  Did you fix items noted in last REAC inspection report? 13
    14. 14. REAC SCORES 14
    15. 15. 100-90 3 years89-80 2 years79-60 1 year59-31 Failing, not necessarily referred to enforcement center30 & below Complete failure-automatically referred to enforcement 15
    16. 16. Why is enforcement action taken? When owners of HUD-assisted properties do not live up to their responsibility to provide clean, safe and sanitary housing, the DEC steps in and takes action. Enforcement action may be taken against owners with physically substandard properties, those with financial audit findings, and those owners who fail to submit annual financial statements. The DEC may pursue civil money penalties or double damages where program violations have occurred.* In more seriouscases involvingmultifamily housing,the Department canabate owners’ federalsubsidy paymentsand foreclose onproperties. 16
    17. 17.  Level 1 Deficiency – Lowest amount of points Level 2 Deficiency – Higher amount of points Level 3 Deficiency – Even higher amount Exigent Health and Safety Deficiency - Highest 17
    18. 18. CONDUCTING THE INSPECTION 18
    19. 19.  Relationship with inspector 2 people to perform inspection with inspector Understand REAC Protocol Maintain good relationship with inspector Talk about common interest Diversion Tactics Have a copy of the compilation bulletin with you Ask inspector to show you the definition of the deficiency Carry a maintenance package with you 19
    20. 20.  Maintenance package ◦ 1. Light bulb ◦ 2. 9V batteries ◦ 3. Screwdriver and pliers ◦ 4. Switchplates and outlet covers ◦ 5. breaker blanks ◦ 6. paperclip 20
    21. 21. SITE HITS 21
    22. 22. If it’s there, it must function as it is designed tofunction. Fencing – Perimeter and building 3 to 4 Deficiencies Retaining walls Damaged or leaning 22
    23. 23.  Grounds ◦ Overgrown/penetrating vegetation ◦ Erosion/Rutting ◦ Ponding Site Drainage Parking lots ◦ Cracks ◦ Ponding ◦ Potholes/loose material ◦ Settlement heaving 23
    24. 24.  Play Areas ◦ Damaged play area ◦ Broken Equipment/Benches  Walkways /steps ◦ Cracks/settlement/heaving ◦ Spalling ◦ Broken or missing handrail  4 or more steps  Refuse disposal ◦ Damaged enclosure ◦ Inadequate storage5/17/2011 24
    25. 25.  Graffitti ◦ Level 1 – 1 place ◦ Level 2 – 2 to 5 places ◦ Level 3 – 6 or more Litter – Excess Have a groundsman picking up trash always in sight of the insp. Mailboxes/project signs. ◦ Sign damaged and cannot be read ◦ Mailbox damaged or cannot Lock 25
    26. 26. EXTERIOR 26
    27. 27. If it’s there, it must function as it is designedto function. Fire Escapes – Missing components or blocked Foundation ◦ Cracks/gaps ◦ Spalling/exposed rebar Lighting ◦ Bulb or fixture broken/missing 27
    28. 28.  Roofs  Windows ◦ Shingles ◦ Broken ◦ Vents ◦ Sills ◦ gutters ◦ Bars ◦ soffitts ◦ Paint & Screens Walls  Doors ◦ cracks/holes ◦ Hardware & frame ◦ peeling paint ◦ Surface & screen ◦ Caulking ◦ Caulk ◦ chimney 28
    29. 29. SYSTEM HITS 29
    30. 30. If it’s there, it must function as it is designed to function Water ◦ Leaking spigots ◦ Misaligned flu ◦ Missing T&P valves Fire Protection ◦ Sprinkler head ◦ Fire extinguisher  Disposable  Rechargeable ◦ Pull stations HVAC System ◦ Fuel leaks ◦ Misaligned flu 30
    31. 31.  Sanitary System  Emergency power ◦ Broken pipes ◦ Lights don’t work ◦ Clean out covers  Electrical system Elevators ◦ Missing breakers ◦ Not operable ◦ Blocked ◦ Frayed Wiring ◦ Cover missing 31
    32. 32. UNITS 32
    33. 33. If it’s there, it must function as it is designed tofunction. Blocked Egress-doors & windows-Biggest Inside Hit Bathroom-faucets, tubs, drains, exhaust fans, toilets Doors ◦ Surface & Frame ◦ Hardware Floors ◦ Carpet or tile ◦ % is bad Kitchen ◦ Plumbing & Cabinets ◦ Refrig. & Exhaust fan 33
    34. 34.  Windows ◦ Hardware & Sill ◦ Seal, lockability, broken glass Stairs ◦ Treads & Railing Patio/porch/balcony Laundry area ◦ Dryer vent ◦ Washer pipes and drain 34
    35. 35.  Lighting ◦ Must work – carry bulb Electrical ◦ Outlets ◦ Covers ◦ Switches 35
    36. 36. Exigent Health & Safety 36
    37. 37.  Electrical Hazards Emergency/Fire Exits Air Quality Flammable Materials-Gas lines, propane, charcoal fluid Garbage Debris 37
    38. 38.  Hazards-Tripping, Sharp Edges Infestation Misaligned Flu in hot water heater or furnace Will not enter a unit present with bed bugs 38
    39. 39.  Smoke detectors that are inoperable or missing will be noted on the REAC report as a EH&S violation that has to be mitigated within 24 hours of inspection, but, it is NOT a scoreable item. 39
    40. 40.  Cable trip hazards are non scoreable. 40
    41. 41. COMMON AREAS 41
    42. 42.  Maintenance Garage Office Clubhouse or Community Room Exercise Room Pool & Playground If an area has utilities it is inspectable 42
    43. 43. APPEALING A SCORE 43
    44. 44. Technical Review- A technical review may be requested if during the inspection an objectively material error occurred that if corrected would result in an improvement of the properties overall score.  Building data errors  Unit count errors  Non existent deficiency errors  Received within 30 days 44
    45. 45.  A request for database adjustment initiates a review of the results of a physical inspection. A database adjustment may be requested for circumstances affecting the inspected property that are out of the ordinary, reflect an inconsistency with ownership or are allowed by city state code. Received with 45 days 45
    46. 46. REAC REFERENCES 46
    47. 47.  www.hud.gov/offices/reac Technical Assistance Center-1800-245-4860 DCD 2.3a Public Version User Guide Compilation Bulletin REAC Class in Washington, DC Questions/Comments 47
    48. 48. 48

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