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HUD Offers Multifamily NSPIRE Demonstration Participants an Opt-Out Option for 2023

On January 25, HUD Published a Notice in the Federal Register regarding the NSPIRE Demonstration. 

The notice informs HUD Multifamily properties (PBRA) that are participating in the NSPIRE Demonstration that they do not have a recent formal “inspection of record” in HUD’s Integrated Real Estate Management System (iREMS), and HUD plans to complete and enter an inspection of record for each property by the end of this fiscal year (September 30, 2023). 

HUD plans to complete an official inspection and scoring under NSPIRE for such properties between April 1 and September 30, 2023. HUD is providing an option to owners of those properties to have the inspections of record conducted using UPCS standards. HUD’s mechanism is for owners to opt out of the NSPIRE Demonstration and revert back to UPCS for this overdue inspection of record.  Subsequent inspections, after October 1, 2023, will be conducted using NSPIRE.

HUD plans to complete an official inspection and scoring under NSPIRE for such properties (HUD Multifamily properties (PBRA) that are participating in the NSPIRE Demonstration) between April 1 and September 30, 2023. HUD is providing an option to owners of those properties to have the inspections of record conducted using UPCS standards.

The demonstration opt-out option is not available for public housing because HUD plans to fully transition public housing to NSPIRE as of April 1. Regarding that issue, PHADA has repeatedly asked HUD to defer the rule because it is apparent HUD is not ready to fully implement the rule. See PHADA President David Northern’s December 31, 2022, column on this topic.

The notice also makes a technical change extending the demo until the NSPIRE rule is final. PHADA will continue to urge delay in the full implementation of NSPIRE and for initial scores under NSPIRE to be advisory or provisional only. PHADA will also inform members and provide detailed comments on the NSPIRE scoring notice and administrative notice once HUD has published these documents. 

HUD’s NSPIRE Get Ready Series has two remaining sessions, including one on February 28 in San Antonio, TX. Virtual Get Ready Sessions have also been promised but have not yet been scheduled. You can register for the NSPIRE Get Ready Series here.

 

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