HUD inspects its properties through the Real Estate Assessment Center (REAC), which is responsible for evaluating financial and physical condition of al HUD public and assisted developments. The inspections often include site, building exterior, building systems, dwelling units, common areas, health and safety concerns and compliance with state and local codes among other things.
Properties receive a score on a scale of 0-100:
Standard 1 (90 points or higher) performing properties are required to undergo physical inspection only once every 3 years
- HUD requires properties to address any deficiencies that are health and safety hazards immediately to maintain their favorable classification
Standard 2 (80-89 points) performing properties undergo inspection once every 2 years
- HUD require properties to address any deficiencies that are health and safety hazards immediately to maintain their favorable classification
Standard 3 (<80 points) performing properties are inspected every year
- < 30 points: referred to Departmental Enforcement Center for evaluation (creates Owner Compliance Plan)
Often, HUD tenants notice that their buildings will be in bad condition but still receive passing REAC scores. See NAHT’s Recommendations for HUD’s REAC Inspection Process for our recommendations on how to fix this and other issues with REAC.
NAHT Recommendations for HUD’s REAC Inspection Process
In January, 2016, NAHT’s REAC Task Force made up of Board Leaders, tenant organizers and HUD tenants presented NAHT's Recommendations for HUD's REAC Inspection Process to HUD. Our recommendations include improving tenant participation in the inspection process, adding more components to the inspection process such as City code inspections, revising the scoring system to include common deficiencies not currently included and strengthening HUD’s ability to enforce renovations and repairs when buildings fail inspection.
NAHT/NHLP Training Materials on REAC
NAHT and the National Housing Law Project have put together training materials on REAC used at the NAHT Conference and organizer trainings.
HUD Website on REAC
ProPublica: HUD Inspect
This database created by ProPublica journalists lists HUD properties and REAC scores.
National Housing Preservation Database
The National Housing Preservation Database is updated from HUD with the past and current REAC scores for all HUD assisted properties in the country. It also holds information about when Section 8 contracts or other subsidy contracts expire.