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NYCHA Now
Compliance quarterly newsletter
Compliance January 2023 

Inspiring a Compliance Culture

Michael Corwin
Read the Compliance Department’s Quarterly Newsletter

Preparing for PHAS REAC Inspections

In 2022, the U.S. Department of Housing and Urban Development (HUD)  resumed Public Housing Assessment System (PHAS) Real Estate Assessment Center (REAC) inspections at NYCHA developments. This edition of the Compliance Newsletter follows up on the April Newsletter to remind staff of their responsibilities when preparing for PHAS REAC inspections, and addresses some of the common questions asked by Property Management staff.

 Do’s and Don’ts When Preparing for PHAS REAC Inspections

There are some steps that must be taken and a few things to avoid when Property Management staff prepare for PHAS REAC inspections. For full instructions on preparing for PHAS REAC inspections, please review Standard Procedure 040:18:1, Repair Standards & PHAS REAC Inspections.

DO:

  • At least 10 days before the scheduled inspection, the property manager and property maintenance supervisor perform a walk-through of the development to check the site, building exteriors, and common areas to identify any outstanding deficiencies and immediately correct any exigent health and safety (EHS) issues. An EHS issue is one that threatens the life, health, and/or safety of a resident and/or employee. Refer to NYCHA Form 065.015, PHAS PASS Inspection for a list of EHS deficiencies.
  • Develop a work plan to address any issues identified during the walk-through, correcting EHS issues first and prioritizing other work orders by the severity of the deficiency.
  • Ensure that all required documents are available in the development’s PHAS binder. See page 14 of Standard Procedure 040:18:1, Repair Standards & PHAS REAC Inspections.
  • At least 10 days before the scheduled inspection, notify all residents by placing NYCHA Form 065.013, Notice of HUD Apartment Inspections under the door of each apartment and by posting NYCHA Form 065.011, Notice of HUD Inspection Poster in the lobby of each building.
  • If HUD provides 24 hours’ notice regarding which units will be inspected, on day 1 of the inspection, staff call and deliver NYCHA Form 065.012, Very Important Notice of HUD Inspection of Your Apartment to residents whose apartments were selected for inspection.
    • Note: HUD is no longer required to provide 24 hours’ notice, so NYCHA staff may not have the opportunity to notify residents upon the selection of their apartment by an inspector. If a HUD inspector cannot access a selected unit, they proceed through a set of alternate units.
  • Post the Deceptive Practices Poster in employee common areas and skilled trades shops.
  • Meet with staff to remind them that deceptive practices are prohibited and that occurrences must be reported.
  • Ensure that the property manager, property maintenance supervisor, and a maintenance worker accompany the REAC inspector through the entire inspection. Maintenance workers can fix EHS deficiencies found during the inspection on-the-spot if they are able to access the unit, and ensure proper photographs and documentation are gathered.

DON’T:

  • Perform “just-in-time” repairs before a PHAS REAC inspection in place of year-round maintenance. Even though work can continue to take place before an inspection, it is important to remember that all work that takes place before an inspection must be industry-standard, permanent repairs.
  • Cover up or hide conditions that need repair, such as:
    • Concealing leaks by turning off the water,
    • Covering holes in walls with cardboard or wood, or
    • Directing staff to engage in such conduct.
  • Perform substandard repairs that do not meet industry standards.
  • Perform work in common areas after a PHAS REAC inspection begins, other than for emergency repairs (Maximo Priority 7, 8, or 9).
  • Perform work in units after they have been identified for inspection, other than for emergency repairs (Maximo Priority 7, 8, or 9).

Frequently Asked Questions

When HUD schedules a development for a PHAS REAC inspection, the Compliance Department holds meetings with Property Management staff to answer any questions on how to prepare for the inspection. Below are some of the most common questions asked by staff:

What repairs can be done leading up to the inspection?

  • NYCHA may perform any work to address any issues identified during the pre-PHAS walk-through up until the date the inspection starts. Staff must prioritize addressing EHS and other severe deficiencies such as exposed wires or missing emergency exit signs. Refer to NYCHA Form 065.015, PHAS PASS Inspection for a list of EHS deficiencies.

What repairs can be done during inspection?

  • NYCHA may NOT perform work in units identified for inspection or common areas after a PHAS REAC inspection begins, other than for emergency repairs (Maximo Priority 7, 8, or 9).
  • Construction required by an ongoing capital contract can continue during an inspection.
  • Repairs to EHS deficiencies identified by the inspector can occur during the inspection because they are considered emergency repairs.

Can a development be cited for deficiencies based on conditions caused by residents (for example, blocked egress in the apartment or trash on the roof of a building)?

  • Yes. NYCHA can be cited for issues such as blocked egress or litter, regardless of the cause.

What if a development is cited for deficiencies in locations that they are not responsible for (for example, a damaged sidewalk not on NYCHA property)?

  • During an inspection, staff may explain to the inspector where NYCHA property ends and public property begins. However, they may not prevent an inspector from issuing a citation.
  • NYCHA may appeal certain inspection results. Refer to Standard Procedure 040:18:1, Repair Standards & PHAS REAC Inspections for instructions on appealing PHAS results, and the PHAS Library on NYCHA Connect for examples of appeals packages.

Should the Lead-Based Paint binder be made available for inspection?

  • Yes. It is recommended that the binder is available in case the inspector has any specific questions (for example, determining if a common area being painted has tested positive for lead-based paint). 

What vendor work can continue during an inspection?

  • If a vendor is performing capital work at a development, work may continue during an inspection.
  • It is recommended that capital contracts showing the scope of work and the “Notice to Proceed” be made available in case the inspector has any specific questions about ongoing work. Inspectors should not enter construction areas for inspection, and the areas should be identified with clear signage.
  • Staff must ensure that vendors are not performing non-emergency work in units identified for inspection or in common areas after the PHAS REAC inspection begins.

Compliance Advisory Alerts

During the past quarter, the Compliance Department posted four Advisory Alerts to bring attention to important compliance issues. Please read the alerts in full; their key takeaways are below.

 Asbestos-Containing Material in Apartments

Compliance Advisory Alert #34 reminds staff that NYCHA must arrange for the testing of suspect asbestos-containing material before performing work in apartments. Common examples of suspect asbestos-containing material include vinyl asbestos floor tiles, pipe insulation, textured or popcorn ceiling, and window caulking. If any suspect asbestos-containing material is seen, staff MUST NOT disturb the area(s). Instead, Property Management staff must create a Maximo work order to arrange for an asbestos inspection. If the inspection determines that the material does contain asbestos, the material must be abated before any work can be performed.

Failure to follow the proper protocol for the assessment and removal of asbestos poses a health risk to NYCHA residents and staff. For full instructions on handling asbestos-containing material, read the advisory alert in full and refer to Standard Procedure 040:16:1, Vinyl Asbestos Tile (VAT) Assessment and Removal From Apartments.

Disposition of Authority Property

Compliance Advisory Alert #35 addresses a recent investigation by the New York City Department of Investigation, which raised concerns about NYCHA’s compliance with the processes for the disposition of NYCHA property. NYCHA employees must not allow unauthorized people or vendors to remove NYCHA equipment, furniture, materials, and supplies (including unusable appliances or scrap materials) from NYCHA developments or properties. For full instructions on the disposal, redistribution, or sale of surplus, obsolete, unusable, or worthless equipment, refer to Standard Procedure 001:48:1, Disposition of Authority Property.

 Permit-Required Confined Space Protocol

Compliance Advisory Alert #36 highlights recent inspections at developments by the Environmental Health & Safety (EH&S) Department. During these inspections, EH&S observed several violations of confined space safety protocol, including developments missing confined space folders, calibrated four-gas meters, and appropriate signage posted at confined space entry points. Failure to comply with confined space safety procedures is a serious health and safety risk for NYCHA employees.

Before entry into a permit-required confined space, Property Management staff must complete a set of tasks, including but not limited to:

  • Ensuring that only staff who have completed the Confined Space Awareness Training may enter permit-required confined spaces.
  • Ensuring that a four-gas monitor is calibrated and available for staff performing the entry.
  • Ensuring that all confined spaces have the appropriate signage posted at all confined space entrances.
  • Ensuring that the confined space folder is stored in the property maintenance supervisor’s office.
  • Calling the Fire Department of New York to notify them of the scheduled entry.

 For a full list of permit-required confined space entry requirements and responsibilities, refer to Standard Procedure 060:94:1, Confined Space Safety Procedure.

Micro Purchases (Under $10K) Protocol

Compliance Advisory Alert #37 addresses recent micro purchase investigations, which found deficiencies including:

  • Accepting/processing price quotes with non-itemized material and/or labor costs.
  • Accepting/processing price quotes with excessive overhead costs.
  • Accepting/processing price quotes with excessive profit margins.

NYCHA staff must not process invoices or proposals which are incomplete, not itemized, or with excessive prices. To ensure compliance with micro purchase guidelines, the Supply Management and Procurement Department updated NYCHA Form 131.156, Micro Purchase Order Request ($10K). The updated form requires that staff provide a detailed description of the work required and an itemized accouting of the material and labor costs. Beginning in 2023, staff submitting a micro purchase request in Oracle must use this updated form. For more information on the micro purchase process, refer to the Procurement Policy Manual or Standard Procedure 008:22:2, Competitive Procurement Methods.

Conclusion

The Compliance Department will continue working with our colleagues to ensure that NYCHA is a safe and healthy place for our residents, staff, and vendors. If you have any concerns or complaints, or if you see anyone engaging in a deceptive practice, you can make a confidential and anonymous report by calling the Customer Contact Center at (718) 707-7771 (select menu option 7) or by visiting the Compliance Department section of NYCHA’s website. Complaints also can be reported to any other federal, state, or local government agency. Remember, the Compliance Department is here to help.

90 Church Street, New York, NY 10007

https://on.nyc.gov/submit-concern