HUD Extends NSPIRE Compliance Date for HCV and PBV Programs

But any PHA that’s ready to implement NSPIRE should do so at its earliest convenience.

On Sept. 27, HUD released a notice under public inspection that extends the compliance period under the National Standards for the Physical Inspection of Real Estate (NSPIRE) final rule for the Housing Choice Voucher (HCV), Project Based Voucher (PBV), and Moderate Rehabilitation programs until Oct. 1, 2024.

HUD says it’s taking this action to allow PHAs additional time to implement HUD’s NSPIRE standards for HCV, PBV, and Moderate Rehab programs. With an additional year, PHAs are encouraged to train staff and communicate with owners. HUD says it will use the delay to provide additional technical resources to help with the transition to NSPIRE standards. However, HUD encourages any PHA that’s ready to implement NSPIRE to do so at its earliest convenience.

Applicable Programs

The included programs under HCVs are emergency housing vouchers; family unification program; foster youth to independence initiative; mainstream vouchers; non-elderly disabled; stability voucher program; tenant protection vouchers; Veterans Affairs Supportive Housing vouchers; and the witness relocation program.

While most HCVs are “tenant-based,” meaning people can use them to rent any private apartment that meets program guidelines, project-based vouchers, on the other hand, are attached to a specific unit whose owner contracts with the state or local PHA to rent the unit to families and individuals with low incomes. These units are included in this HUD NSPIRE notice.

The Moderate Rehabilitation program provides project-based rental assistance for low-income families. Assistance is limited to properties previously rehabilitated pursuant to a housing assistance payments (HAP) contract between an owner and a PHA. The program was repealed in 1991, and no new projects are authorized for development. But active programs are covered by this HUD NSPIRE notice.

HUD’s notice doesn’t have any impact on Project Based Rental Assistance contracts, Public Housing, or PRAC contract properties. And any site inspected by the Real Estate Assessment Center (REAC) is not impacted by this notice.

Requesting Extension for PHAs

PHAs must notify HUD of their decision on whether they’ll continue using Housing Quality Standards (HQS) for inspections or transition to NSPIRE before the October 2023 deadline. If a PHA wishes to continue using HQS on or after Oct. 1, 2023, it must notify HUD of its intent to continue using HQS and the date on which it plans to transition to NSPIRE. This date may be no later than Oct. 1, 2024. This notification must be sent via email to NSPIREV_AlternateInspection@hud.gov with a courtesy copy to the PHA’s Field Office representative. The email’s subject line must read “Notification of Extension of HQS, [PHA code]” and the body of the email should include the PHA name, PHA code, a statement that HQS will continue to be used, and what date the PHA tentatively plans to implement NSPIRE (no later than Oct. 1, 2024).

Affirmative Requirements Under Final NSPIRE Provisions

HUD’s new housing inspection approach offers a single inspection standard for all units under the Public Housing, HCV, Multifamily, and Community Planning and Development (CPD) programs. It replaces Housing Quality Standards (HQS) that were developed in the 1970s and that Uniform Physical Condition Standards (UPCS) that were developed in the 1990s.

In recent years, HUD found that the previous inspection models sometimes provide inaccurate and inconsistent results. According to HUD, the previous standards placed a disproportionate emphasis on physical inspections around the appearance of items that were otherwise safe and functional, while inadequate attention was paid to the health and safety conditions. As a result, the new housing standards emphasize habitability and the residential use of structures, and most importantly, the health and safety of residents.

Under the new approach, the inspectable areas for NSPIRE physical inspections are the housing units where HUD-assisted residents live, the elements of their building’s non-residential interiors, and the outside of buildings. The inspections’ goal is to ensure that components of these three areas are “functionally adequate, operable, and free of health and safety hazards” [24 CFR §5.703(a)].

HUD developed new “affirmative requirements” for all units that participate in HUD’s rental assistance programs. These include basic requirements for habitability such as kitchens and flushable toilets but also important safety concerns like Ground Fault Circuit Interrupter (GFCI) outlets, a permanent heating source, and safe drinking water. Here are the affirmative requirements for each inspectable area.

Inside areas. These areas refer to the common areas and building systems generally found within a residential building’s interior that are not inside a unit. The inside area must meet six affirmative requirements:

• There must be at least one battery-operated or hard-wired smoke detector, in proper working condition, on each level of a property.
• The inside area of a building must meet or exceed the carbon monoxide detection standards set by HUD through a Federal Register notice. This does not apply to housing with a mortgage insured or held by HUD, or Section 202 direct loan housing.
• Any outlet installed within six feet of a water source must be “ground-fault circuit interrupter” (GFCI) protected.
• Must have a guardrail when there is an elevated walking surface with a drop off of 30 inches or more.
• Must have permanently mounted light fixtures in any kitchen and in each bathroom.
• May not have unvented space heaters that burn gas, oil, or kerosene [24 CFR §5.703(b)].

Outside areas. Outside areas refer to a building site, building exterior components, and any building systems located outside of a building or a unit. These include items and places such as mailboxes, walkways, lighting, roads, parking lots, play areas and equipment, and non-dwelling buildings. Components on the exterior of a building are also considered outside areas; some examples in the final rule include, doors, fire escapes, lighting, roofs, walls, windows, foundations, and attached porches. A site must meet two affirmative requirements for outside areas:

• Outlets installed within six feet of a water source must be “ground-fault circuit interrupter” (GFCI) protected.
• Must have a guardrail when there is an elevated walking surface with a drop off of 30 inches or more [24 CFR §5.703(c)].

Dwelling units. A dwelling unit refers to the interior components of a household’s home. Here are the 11 affirmative requirements for a unit:

• Must have hot and cold running water in bathrooms and in the kitchen, including an adequate source of safe drinking water in bathrooms and the kitchen.
• Must have its own bathroom that’s in proper working condition and usable in privacy. A bathroom must have a sink, a bathtub or shower, and an interior, flushable toilet.
• Must have at least one battery-operated or hard-wired smoke detector in proper working condition in the following locations: on each level of a unit; inside each bedroom; within 21 feet of any door to a bedroom; and on the living area side of a door that separates the living area from a smoke detector outside of a bedroom.
• Must have a living room. It must also have a kitchen area that has a sink, cooking appliance, refrigerator, food preparation area, and food storage area.
• For HCV or PBV units, there must be at least one bedroom or “living/sleeping room” for each two people.
• Must meet or exceed the carbon monoxide detection standards set by HUD through a Federal Register notice. This does not apply to housing with a mortgage insured or held by HUD, or Section 202 direct loan housing.
• Must have two working outlets or one working outlet and a permanent light in all habitable rooms.
• Outlets installed within six feet of a water source must be “ground-fault circuit interrupter” (GFCI) protected.
• In HUD-designated geographies, must have a permanently installed heating source, and no units may have unvented space heaters that burn gas, oil, or kerosene.
• Must have a guardrail when there is an elevated walking surface with a drop off of 30 inches or more.
• Must have a permanently mounted light fixture in the kitchen and each bathroom [24 CFR §5.703(d)].