Reac inspections explained!

1. Presented by: Greg Nolan & Mark Pelton
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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
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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
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5.  How to schedule, prepare & conduct
 Scoring
 Deficiency Items
 The report
 How to appeal-instructions
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6. WHAT IS REAC?
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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
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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
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9. PREPARING FOR REAC
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10.  When to Start
◦ After last REAC
◦ 3 months before scheduled or
anticipated REAC date.
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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
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12. Occupation Calculation
Step 1: Subtract Number of Vacants Step 2: Divide # Occupied
from 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
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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?
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14. REAC SCORES
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15. 100-90 3 years
89-80 2 years
79-60 1 year
59-31 Failing, not necessarily
referred to enforcement center
30 & below Complete failure-automatically
referred to enforcement
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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 serious
cases involving
multifamily housing,
the Department can
abate owners’ federal
subsidy payments
and foreclose on
properties. 16

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
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18. CONDUCTING THE
INSPECTION
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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
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20.  Maintenance package
◦ 1. Light bulb
◦ 2. 9V batteries
◦ 3. Screwdriver and pliers
◦ 4. Switchplates and outlet covers
◦ 5. breaker blanks
◦ 6. paperclip
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21. SITE HITS
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22. If it’s there, it must function as it is designed to
function.
 Fencing – Perimeter and building 3 to 4 Deficiencies
 Retaining walls Damaged or leaning
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23.  Grounds
◦ Overgrown/penetrating vegetation
◦ Erosion/Rutting
◦ Ponding Site Drainage
 Parking lots
◦ Cracks
◦ Ponding
◦ Potholes/loose material
◦ Settlement heaving
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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 storage
5/17/2011 24

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
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26. EXTERIOR
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27. If it’s there, it must function as it is designed
to function.
 Fire Escapes – Missing components
or blocked
 Foundation
◦ Cracks/gaps
◦ Spalling/exposed rebar
 Lighting
◦ Bulb or fixture broken/missing
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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
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29. SYSTEM HITS
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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
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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
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32. UNITS
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33. If it’s there, it must function as it is designed to
function.
 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
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34.  Windows
◦ Hardware & Sill
◦ Seal, lockability, broken glass
 Stairs
◦ Treads & Railing
 Patio/porch/balcony
 Laundry area
◦ Dryer vent
◦ Washer pipes and drain
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35.  Lighting
◦ Must work – carry bulb
 Electrical
◦ Outlets
◦ Covers
◦ Switches
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36. Exigent Health &
Safety
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37.  Electrical Hazards
 Emergency/Fire Exits
 Air Quality
 Flammable Materials-Gas
lines, propane, charcoal fluid
 Garbage Debris
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38.  Hazards-Tripping, Sharp Edges
 Infestation
 Misaligned Flu in hot water heater or
furnace
 Will not enter a unit present with bed bugs
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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.
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40.  Cable trip hazards are non scoreable.
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41. COMMON AREAS
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42.  Maintenance Garage
 Office
 Clubhouse or Community Room
 Exercise Room
 Pool & Playground
 If an area has utilities it is inspectable
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43. APPEALING A SCORE
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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
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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
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46. REAC REFERENCES
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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
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