When a property fails a REAC Inspection , the property owners and managers often take it personally . It can feel like a gut punch , and often the initial response is defensive . A defensive response is entirely normal ; it ’ s even human . However , this response often gets property owners in trouble . So , the question is : what should you do when you receive a failing REAC score ?
From our experience , the following steps are the best steps to success :
1 . Accept the Findings 2 . Review Options for Appeal 3 . Plan a Survey and Response 4 . Perform Repairs / Prepare for Future
1 . Accept the REAC Findings
Even if you disagree with the REAC inspection results , the best thing to do is accept the findings and prepare to move forward . In many cases , property owners and managers can find themselves stuck in a mode where they want to resolve their differences with the inspection or the inspector .
The best first step is acknowledging the findings , letting any perceived unfairness go , and committing to taking a stance that you will make changes to prevent future issues . In more cases than we can count , grievances with the failing inspection created a veil of distortion , which prevented resolving the failed score effectively .
2 . Review Options for Appeal
Every inspection should be reviewed for an appeal , as there may be discrepancies with HUD ’ s rules and requirements , resulting in a score adjustment . However , remember a REAC appeal is not a vehicle to complain about the inspection itself or the inspector . It is simply a forum to point out discrepancies and provide independent verification to justify your request .
In many cases , a REAC appeal can increase the score above 60 , and resolve the notice of default . However , even if your appeal is successful , a low REAC score should become a moment of self-reflection , producing new procedures that better address everyday compliance .
3 . Plan a Survey and Response
Even if you are going to file an appeal , you should immediately start your full survey of the property , including all areas and units – not just the findings cited by the REAC Inspector . It is also best to use an independent team to conduct the survey , and if possible , someone with experience not just with REAC but with failed inspection resolution . Most importantly , the team that will be responsible for the repairs should not conduct the inspection .
The survey should not only include every part of the property – it should be an extremely critical look at every square inch of the property . At US Housing Consultants , we pride ourselves on never letting any deficiency go unobserved – under every rock , in every dark space , and normally unused space , we look for and find hitherto unknown problems .
This is your moment to get it right because if you don ’ t and future inspections result in failing scores , it becomes increasingly difficult for a managing agent or owner . As the owner had to sign a verification that the property no longer had any UPCS deficiencies , a failing score often results in an owner ’ s abilities or honesty being challenged .
If your property survey results in a list of deficiencies that cannot be fixed in the timeframe cited on the Notice of Default ( this is typically 60 days ), the best course of action is to request additional time and provide a comprehensive plan and timeline for your repairs . When the owner signs the “ Owner ’ s Certification of Completion of Repairs “, the owner should feel confident in saying that “ the project is in compliance with the physical condition standards of 24 C . F . R . § 5.703 ″.
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Four Steps to Success
Accept the Findings
Review Options for Appeal
Plan a Survey and Response
Perform Repairs / Prepare for Future
4 . Completing the Repairs , Resolving the Notice of Default
Of course , the last step is doing the work and ensuring that the work is completed professionally . This means use the right materials and do the work in a workmanlike manner . Property owners need to make sure there are no shortcuts or bandaids ; these practices don ’ t just not help – they make the situation worse .
Most importantly , as you go throughout this process , remember that you certainly are not alone . Every day we meet new clients who had previously unblemished records and find themselves responding to what was previously unthinkable . Everyone can fail , from the small property owners to national companies with large portfolios .
From what we ’ ve seen , one of the most important ingredients to success is a positive attitude . So , keep your head up , your mind focused , and you ’ ll get through it and hopefully find a brighter future on the other side .
Scott Precourt is the founding partner of US Housing Consultants and specializes in affordable housing .
www . aamdhq . org OCTOBER 2021 TRENDS | 25