The Trainer — January 2012
Ensuring Efficient REAC Inspections; Getting Reimbursed After Paying Resident’s Utility Bill
In this month’s feature, we discussed what you should know about how REAC inspectors conduct their inspections. If you know what’s required of you and your staff, as well as what the REAC inspector’s responsibilities are, your inspections are more likely to go smoothly.
In our article about residents who don’t pay their utility bills, we explained why you may want to pay a household’s utility bill and how you can reserve the right to get reimbursed whenever you do so.
TRAINER’S QUIZ
INSTRUCTIONS: Each of the questions below has only one correct answer. On a separate sheet of paper, write down the number of each question, followed by the answer you have chosen—for example, (1) b, (2) a, and so on. The correct answers (with explanations) follow the quiz. Good luck!
QUESTION #1
In addition to the REAC inspector, the site manager, maintenance supervisor, and another maintenance staff member should be present during the inspection. True or false?
a. True.
b. False.
QUESTION #2
HUD inspection protocol requires inspectors to call out deficiencies and the level of their severity during the inspection. True or false?
a. True.
b. False.
QUESTION #3
In which of the following circumstances may an inspector call the Technical Assistance Center (TAC)?
a. When the site manager is more than an hour late.
b. When the weather turns bad during the inspection.
c. When a unit or common area is being treated for bedbugs.
d. All of the above.
QUESTION #4
Owners don’t have the right call TAC during an inspection. True or false?
a. True.
b. False.
QUESTION #5
If a utility company shuts off service to even one resident’s unit, dangerous conditions could develop at your site.
a. True.
b. False.
QUESTION #6
You don’t need HUD’s approval to collect a utility payment you’ve made on a resident’s behalf. True or false?
a. True.
b. False.
QUESTION #7
If the resident doesn’t reimburse you after you’ve sent him notice, or if he fails to pay future utility bills, you should seek to evict him. True or false?
a. True.
b. False.
ANSWERS & EXPLANATIONS
QUESTION #1
Correct answer: a
True. Also, the regional manager, asset manager, or owner may also be available at the time of inspection. But if there are too many people in attendance, it may be difficult for the inspector to perform her job, so it’s recommended that no more than three people be inside a unit during inspection.
QUESTION #2
Correct answer: a
True. If the inspector doesn’t explain beforehand that she’ll do so, remind her to explain. That way, you and your staff can be prepared to make accurate notes of each deficiency in case you want to appeal any deficiencies later.
QUESTION #3
Correct answer: d
All of the above. An Inspector Notice issued in September 2010 instructed inspectors to report the presence of bedbugs to TAC, and wait for approval to proceed with the inspection. Our article lists many other circumstances in which inspectors may call TAC.
QUESTION #4
Correct answer: b
False. Owners and managers have the right to call TAC either during or after the inspection if certain circumstances occur, including: if the inspector is unprofessional, rude, or obnoxious; if the inspector is carrying a firearm; if the inspector uses any site office equipment, other than an electrical outlet; or if the inspector doesn’t inspect all buildings and units in the sample.
QUESTION #5
Correct answer: a
True. The resident may use candles or start potentially dangerous fires in order to generate light or heat, pipes could freeze and burst, and you could be stuck with expensive repair bills. That’s why it’s wise to pay the utility company on the resident’s behalf so service isn’t shut off.
QUESTION #6
Correct answer: b
False. Nothing in the HUD lease or Handbook allows you collect reimbursement for a utility bill you’ve paid on a resident’s behalf. But you can request approval to do so from your local HUD office. Make it clear that your reimbursement policy’s purpose is to protect residents and property at the site. Once you get approval, add the policy to your house rules.
QUESTION #7
Correct answer: a
True. By repeatedly failing to pay his utility bills, the resident is costing you money and administrative time. And for safety reasons, you can’t let a resident stay in a unit with no utility service.