HUD’s Office of Multifamily Housing shared the following policy updates on Physical Conditions Standards and Inspection Requirements (H 2018-08), Wholesale REAC re-examination, and FHA Principal Risk Criteria Revision (H 2018-09). Please note that I have attached the REAC update and the physical inspection notice.
- Servicing of Projects That Do Not Meet HUD’s Physical Condition Standards and Inspection Requirements (PCS&IR) or Fail to Certify That Exigent Health and Safety (EH&S) Deficiencies Have Been Resolved as Required. This Notice provides guidance to Office of Multifamily Asset Management and Portfolio Oversight staff for implementing certain sections of the 2017 and 2018 Consolidated Appropriations Act that apply to projects subject to HUD’s Physical Conditions Standards and Inspection Requirements under two conditions related to physical inspections: the property scores below 60, or a project owner fails timely and proper certification in writing about Exigent Health and Safety deficiencies identified. Click here to read the Notice.
- REAC Reexamination – As part of HUD’s continuing effort to support “decent, safe and sanitary housing,” Secretary Carson is leading a wholesale re-examination of how the Department conducts inspections to ensure private owners are meeting this standard. Click here to read more.
- Revised Concentration of Principal Risk Criteria. This Notice updates past guidance related to identifying and mitigating risks posed to the FHA Insurance fund associated with increasing levels of insured loan balances of entities and their identified key principals that intend to submit applications for concentrated risk review. Click here to read the Notice.