NSPIRE Compliance Date for Voucher Programs Delayed Again

PHAs persuaded HUD to give them more time.

On July 5, HUD released a notice extending the compliance date for HUD’s National Standards for the Physical Inspection of Real Estate (NSPIRE) final rule for a number of HUD programs until Oct. 1, 2025. This notice is the second extension of this compliance date. The previous extension had been until Oct. 1, 2024.

Richard Monocchio, Principal Deputy Assistant Secretary for HUD’s Office of Public and Indian Housing, sent a letter to PHA executive directors explaining that the one-year compliance date extension came about because HUD has heard from many PHAs that implementing NSPIRE with so many other new HUD regulatory requirements has been challenging, and that they’re concerned they won’t be able to meet the October 2024 compliance deadline.

According to the notice, PHAs have reported to HUD that they’re still recovering from the effects of the COVID-19 pandemic on their operations and struggling to recruit and retain private landlords to participate in the Housing Choice Voucher (HCV) program.

In addition, PHAs have reported that staff time is being dedicated to administrative changes relating to the Housing Opportunity through Modernization Act (HOTMA), which has impacted their ability to implement a new inspection protocol.

And PHAs have pointed out that private software vendors haven’t finished their inspection products for PHAs, and HUD hasn’t released its updated inspection software for HCV inspections.

Applicable Programs

The notice extends the compliance date for NSPIRE for the following programs:

• HCV program;
• Project-Based Voucher program;
• Section 8 Moderate Rehabilitation program;
• HOME Investment Partnerships program;
• Housing Trust Fund;
• Housing Opportunities for Persons with AIDS program;
• Emergency Solutions Grants; and
• Continuum of Care programs.

Notification Requirement for Earlier Implementation

Although the new compliance deadline for these programs is Oct. 1, 2025, HUD is encouraging participating jurisdictions and grantees to implement the NSPIRE protocol at their earliest convenience. The prior extension required PHAs to notify HUD of their decision on whether they’ll continue using Housing Quality Standards (HQS) for inspections or transition to NSPIRE before the October 2024 deadline and the date the PHAs plan to transition to NSPIRE.

This time, however, HUD is asking only those agencies that implement NSPIRE prior to the new compliance date of Oct. 1, 2025, to notify HUD of the date on which they plan to transition to NSPIRE. This may be done by emailing NSPIREV_AlternateInspection@hud.gov and copying the agency’s local field office.

Carbon Monoxide, Smoke Alarm Considerations

Monocchio’s letter highlighted the fact that the NSPIRE standard for Carbon Monoxide Alarms still applies during this extension because it implements Congressional requirements already in effect. The letter and notice also stated that the standard for smoke alarms will be updated before the statutory compliance date of Dec. 29, 2024.

Under NSPIRE standards, missing, damaged, covered, or non-functioning alarms will be recorded as a life-threatening deficiency requiring repair within 24 hours.

Smoke alarms. A smoke alarm is required in each bedroom and sleeping area, in the immediate area outside of each bedroom, and one on each level of the residence (including a basement). A smoke alarm installed in the residential unit’s hallway, in the immediate area of the bedrooms, will satisfy the requirement for the smoke alarm on that level of the home and depending on the proximity of this alarm to the living room (classified as a sleeping area), could satisfy the requirement for a smoke alarm in this sleeping area as well. Residential buildings are required to have a smoke alarm on each level of the building. This is separate from the alarms installed inside of each residential unit of the building.

Effective December 2024 smoke alarms will be required to either be hard-wired or have a sealed 10-year battery. At that time, battery-operated alarms that are not the sealed 10-year battery type will be recorded as a life-threatening deficiency.

Carbon monoxide alarms. For those residential units with a fuel-burning appliance or fuel-burning fireplace, a carbon monoxide alarm is required in the residential unit within the immediate vicinity of each bedroom or within each bedroom. Should a bedroom, a bathroom attached to the bedroom, or an adjacent space to the bedroom have a fuel-burning appliance or fuel-burning fireplace, a carbon monoxide alarm is required within the bedroom.

If the residential unit is served by a forced-air furnace located elsewhere, a carbon monoxide alarm will be required either inside the bedroom, or within the immediate vicinity of each bedroom, or in the room with the first duct register. Residential units that are one story or less above or below an attached private garage are required to have a carbon monoxide alarm within the immediate vicinity of each bedroom or within each bedroom.

NSPIRE’s Approach

The transition to the new NSPIRE inspection protocol removes the emphasis on condition and appearance defects and inspectable areas outside residential units. Instead, it focuses on functional defects and areas that impact the health and safety of residents.

Inspectable areas. Inspectable areas will be defined as Unit (the area occupied by the resident), Inside (common-use areas within the apartment building), and Outside (areas outside the building). These are areas already subject to inspection under HQS, as recorded in sections such as “common halls and stairways” and “building exterior.” The site and neighborhood requirements, such as excessive noise, air pollution, etc., are no longer a requirement with NSPIRE and won’t be inspected.

Defect category ratings. HUD intends to score deficiencies based on two factors: the “severity” of a defect and the “location” of the defect, such as whether it’s inside a unit or inside a building. The prior UPCS protocol provided letter designations (a, b, c) to indicate the presence of exigent health and safety defects. NSPIRE replaces the letter designations with the following “Defect Severity Categories” and required response times:

• Life-Threatening (LT): There’s a high risk of death, severe illness, or injury to a resident. Response time of 24 hours.
• Severe:
  • There’s a high risk of permanent disability or serious injury or illness to a resident.
  • There are deficiencies that would seriously compromise the physical security or safety of a resident or their property.
  • Response time of 24 hours or 30 days.
• Moderate:
  • There’s a moderate risk of an adverse medical event requiring a healthcare visit, causing temporary harm, or, if left untreated, causing or worsening a chronic condition that may have long-lasting adverse health effects.
  • There are deficiencies that would compromise the physical security or safety of a resident or their property.
  • Response time of 30 days.
• Low: There are deficiencies critical to habitability but that don’t present a substantive health or safety risk. Response time of 60 days.

Passing scores. With the NSPIRE inspection, a score will be calculated based on the number of deficiencies in each of the four categories found in each of the three inspectable areas. The score will be on a scale of 0 to 100 and a “fail” will be a score of 59 or less, as it was with the previous REAC system. If a property loses more than 30 points in the units alone, it will be an automatic fail.