Inspiring a Compliance Culture: Read the Compliance Department’s Fall 2023 Newsletter
NSPIRE: A New Approach to PHAS Inspections
Introduction
On July 1, 2023, the U.S. Department of Housing and Urban Development (HUD) announced that it has replaced the Uniform Physical Condition Standards (UPCS) and Housing Quality Standards (HQS) inspection protocols with a completely new set of standards known as the National Standards for the Physical Inspection of Real Estate (NSPIRE). Notably, this marks the first significant overhaul of inspection standards by HUD in more than two decades.
Compliance’s Tools to Get Prepared
The Compliance Department is working hard to prepare NYCHA for the NSPIRE standards with several projects:
- Training: Compliance and the Learning & Development Department worked with training professionals to create new materials for two training sessions:
- NSPIRE Readiness: A two-day classroom course. Go to the Learning Management System to sign up. If no slots are available, don’t worry! More classes are being rolled out over the next few months.
- NSPIRE Readiness – Site Inspection: A half-day training at a NYCHA property where staff are taken through a REAC inspection using the new standards. This training will be available in the Learning Management System in November – available only to staff who have completed the NSPIRE Readiness training first.
- Compliance Advisory Alerts*: A series of Compliance Advisory Alerts (CAA) have been issued to help ensure NYCHA is ready for the new requirements, and more are on the way. Alerts so far include:
- CAA 47 “Annual Apartment Inspections and Minor Repairs”: The most important way to ensure properties pass using the new rules is to make sure units are free of severe and life-threatening deficiencies. This CAA details how this work is performed during annual inspections, which are now required in every NYCHA unit in 2024. This Alert details the mandatory repairs and safety checks that must take place during an inspection, and the data tools available to supervisors to ensure their staff are doing the required work.
- CAA 48 “Introduction to NSPIRE”: Lists the key takeaways about the NSPIRE standards. This Alert includes details on the new standards, the inspection areas, how deficiencies will be categorized, and other important information to help prepare.
- CAA 49 “Deficiency Categories”: Provides additional details about the deficiency categories, which is the most important concept to learn in preparing your property for a REAC inspection. Deficiencies are placed into four categories – life-threatening, severe, moderate, and low – and into three inspectable areas – units, inside, and outside – to determine which deficiencies will lose more points.
- CAA 50 “Scoring”: Explains how REAC inspection scoring works. This includes how HUD will treat situations where there are multiple deficiencies in a single unit, how the values are divided among the unit sample, and other important scoring concepts.
*CAAs are archived in the Compliance Department’s section of Connect
In the coming weeks, look for more information about NSPIRE, including alerts about:
- Inspectable areas (detailing how units are selected and where you can expect the focus of REAC inspectors to be).
- Inspection administration (detailing how NYCHA is notified by HUD of an inspection, appeals, and other administrative items).
- Standards (covering the physical standards themselves).
If you have any questions about NSPIRE or want to invite Compliance to a meeting with your staff about NSPIRE, please email compliance.matters@nycha.nyc.gov.
Health and Safety Focus: To emphasize health and safety and help with the inspection and scoring process, NSPIRE classifies the severity of deficiencies into four levels. The below chart lists the four levels, examples for each level, and how points are applied for each category:
|
Deficiency Category |
Life-Threatening: |
Severe: |
Moderate: |
Low: |
|
Definitions |
Deficiencies that, if evident in the home or on the property, present a high risk of death or severe illness or injury to the resident. |
Deficiencies that, if evident in the home or on the property, present a high risk of: permanent disability, serious injury, or illness to a resident; or would seriously compromise the physical security or safety of a resident or their property. |
Deficiencies that, if evident in the home or on the property, present a moderate risk of: an adverse medical event requiring a healthcare visit; cause temporary harm; or if left untreated, cause or worsen a chronic condition that may have long-lasting adverse health effects; or could compromise the physical security or safety of a resident or their property. |
Deficiencies critical to habitability but not presenting a substantive health or safety risk to residents. |
|
Examples |
· Electrical outlet or switch damaged · Smoke alarm is not installed · Missing knockouts, missing breaker or fuse |
· Bathtub/ shower inoperable · Entry door cannot be secured · Extensive cockroach infestation |
· Ceiling has a hole · Burner does not produce heat but at least one other burner does produce heat · Toilet not secured to base |
· Closet door has damaged component · Sink component damaged but sink functional · Bathtub component missing but does not impact functionality. |
|
Repair Time |
24 hours |
24 hours or 30 days |
30 days |
60 days |
|
Point Deduction Values (Range) |
49.6 – 60.0 |
12.2 – 14.8 |
4.5 – 5.5 |
2.0 – 2.4 |
Fast Facts About NSPIRE
- Unit Selection: REAC gives 28 days’ notice of an actual inspection; NYCHA will then need to give all residents at least seven days’ notice of a possible inspection. When the inspector arrives at the development, units will have already been chosen randomly for inspection using HUD’s new software. The maximum sample size is 32 apartments for properties with 921 or more apartments. Resident associations can request up to five more units to be inspected, but the results from these units will not count towards a property’s score.
- Inspection Timeframes: Frequency of inspections remains unchanged and is determined by the date of the prior inspection and score received. Properties scoring 90 points or more are inspected every three years, those scoring over 80 (but less than 90) are inspected every two years, and properties that receive less than 80 are inspected every year.
- Three Inspectable Areas: Before NSPIRE, there were five inspectable areas: dwelling, building systems, common areas, building exterior, and site. NSPIRE reduces this to three areas to better enable inspectors to cite deficiencies and eliminate potential subjectivity or confusion about a deficiency’s location. The inspectable areas under NSPIRE are:
- Unit – Where the resident lives; the interior of an individual dwelling (areas exclusive to the resident).
- Inside – The common areas of a building; laundry facilities, stairwells, elevators, and building systems.
- Outside – The exterior of the building, such as the façade, playgrounds, parking, sidewalks, etc.
The final NSPIRE standards can be viewed here:
NSPIRE Standards | HUD.gov / U.S. Department of Housing and Urban Development (HUD)
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 can also be reported to any other federal, state, or local government agency. Remember, the Compliance Department is here to help.
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