HUD Inspection Operations Update and Protocol Guide

Real Estate Assessment Center A Brief to the The National Affordable Housing Management Association October 21, 2021 1

H Agenda Agenda Return to Operations CDC Centric Protocol Technical Assistance Center (TAC) tie in Habitability Reviews (non-demo NSPIRE) Big Inspection Plan (BIP) NSPIRE Demonstration Upcoming NSPIRE Activities Lessons Learned 2

H Return To Operations 2.0 Return To Operations 2.0 Inspection operations commenced on June 1, 2021. As operations advance in addressing the high priority inspection targets, HUD has set out to complete inspections across the larger MF and PH portfolio over the next 18 months HUD substantially increased HUD s core housing inspections on June 1, 2021 Inspection operations are now well underway for the initial high priority Public Housing (PH) and Multifamily (MF) targets; for the first four months close to 5,000 UPCS inspections scheduled and close to 3,500 completed as of September 24, 2021 Stage is now set to expand inspection operations further across the HUD portfolio: - Phase 1 focuses on the CY21 high priority properties - Phase 2 will launch in FY22 and continue into FY23 to complete initial inspections across the remainder of the PH and MF portfolios by 12/31/2022 REAC, in consultation with its Program Partners, has developed the BIP Big Inspection Plan - to drive the needed inspections across the portfolios and has defined the necessary people, process, and technology needed to complete the programmatic objectives BIP s core mission objective is to ensure that decent, safe, and sanitary housing is available to HUD s assisted residents, supporting the Secretary s priority to strengthen and broaden the Federal housing safety net for people in need. 3

H COVID Inspection Protocol COVID Inspection Protocol Working with CDC, REAC developed a detailed inspection protocol guide for both Federal and contract inspectors The protocol detail instructions for inspectors to follow in the conduct of an inspection when inspections resume Protocol cover the following activities/requirements: o Pre-, Day of, and Post-Inspection Protocols o Travel/Logistics o Personal Protective Equipment (PPE) Developing Remote Visual Inspection (RVI) capability for UPCS-R inspections. Looking for volunteer properties to work with as we advance the capability further INSPECTOR NOTICE 2021-01 4

H Protocol Protocol - - Other Safety & Logistics Risks Other Safety & Logistics Risks Availability of PPE Comply with Temperature Checks/Validation Requests On-site Notification Processes for Health-Related Issues Impacting the Inspection Travel Considerations COVID-19 Flare Ups Managing Social Distance in Occupied Units Pre-/Post-Inspection COVID-19 Testing for Inspectors INSPECTOR NOTICE 2021-01 5

H COVID COVID- -19 Sample Special Protocols 19 Sample Special Protocols HUD will require contractors to wear face masks and gloves and use hand sanitizer, at a minimum, when conducting inspections. POAs are responsible for communicating local restrictions relating to COVID-19 to the contractor/inspector at the time the inspection is scheduled. HUD will continue to determine if an inspection should be cancelled due to local restrictions or an increase in reported COVID-19 cases at the property with guidance from the local Field Office. 28-, 14-, and 2-day notice and coordination INSPECTOR NOTICE 2021-01 6

H Technical Assistance Center (TAC) Technical Assistance Center (TAC) TAC is key front line contact center for Inspections Operations; more important today during COVID TAC Customer Service Satisfaction Ratings consistently > 93% for last 5 years. TAC Supports 65,000 internal and external customers. TAC Processes and resolves over 150,000 Service Requests per year. TAC Supports and Interacts with over 35 groups within PIH & MF Business Partners and other offices across HUD. Knowledge Base Management: Current Articles and FAQs are about 1,200. (TAC) (888) 245-4860 7

H TAC In Operation During COVID TAC In Operation During COVID Since June number of calls into the TAC have increased from 32 to 524 as of 21 Sep 21 Cancellations: Jun-0; July-2; and Aug-4 Sep -8 Biggest impact more inspections more calls PASS COVID-19 CASES JUNE 1 - SEPTEMBER 21, 2021 232 250 200 150 100 65 Total June July Aug Sep Total 29 19 2210 1422 191019 1723 2115 12 15 50 0 1-Sep2-Sep3-Sep7-Sep8-Sep9-Sep 10- 13- Sep 14- Sep 15- Sep 16- Sep 17- Sep 20- Sep 21- Sep Sep Calls 32 66 272 238 564 Jun Jul Aug Sep Cancel 0 2 4 8 14 Review Daily COVID Status 8

H Habitability Reviews/Non Habitability Reviews/Non- -Demo Health and Safety Health and Safety Demo - - Habitability Reviews Conducted Property Health and Safety Closeout received 76 (last week 75) plus 1 56 (last week 55) plus 1 Lesson Learned: Updated Field Office contact list to avoid miscommunication Inspectors using an updated script to instruct properties to email Field Office Director with HS spreadsheet PASS will begin to email Field Office Director when inspection is scheduled PASS will include Field Office Director email in assignment to QA to ensure the property representative has the correct FO POC Exploring automation opportunities to eliminate steps and manual efforts Need to provide guidance to inspectors on properties on NSPIRE related defects not yet regulatory 9

REAC Inspection Options REAC Inspection Options Inspection methods available : UPCS and NSPIRE based options across the phased approach PH Formal Inspection Requests and MF non-demo Inspections PH AND MF NSPIRE Demonstration Properties (late October2021) High Priority Properties (NSPIRE Exam IV Non-Demo) Full NSPIRE Inspections (available late in BIP Phase 2) Background Deliver UPCS inspections for MF non-demo and PH High Priority properties that have requested inspections Deliver NSPIRE MF and PH demonstration inspections for properties in the demo program Deliver NSPIRE centric, health and safety inspections to high-priority properties via Exam IV Deliver full NSPIRE inspections across the PH portfolio Approach/ Technology UPCS NSPIRE demo technology NSPIRE Exam IV NSPIRE Outputs Inspection report/score of record Health & safety and livability report. Advisory score in the future. Health & safety and livability report. NSPIRE report/score of record Value Score available. Enforcement tie in as report and score aligned with regulations. Inspected via new NSPIRE standards. Eventually will have an advisory score Inspected via new NSPIRE standards. No score. Full NSPIRE Inspections Field Effort Contract Inspectors Outsourced to Contractor PASS QA. May expand to contract inspectors Contract and QA Inspectors Back Office Systems Support Lead Team PASS NSPIRE Demo NSPIRE/NSPIRE-V NSPIRE 10 10

H Handling Inspections During COVID: Handling Inspections During COVID: Lessons Learned Lessons Learned Initial Return to Operations on October 5, 2020. Small number of inspections completed before COVID stopped inspections again. Return to Operations 2.0 began on June 1, 2021 Providing initial 28-day notice; follow-up 14 and 2 days prior. COVID is still an issue; but having minimal impact on cancellations. COVID is an issue with access to some units, but sampling adjustments can accommodate. Use of PPE by all parties alleviating most concerns. 11

Big Inspection Plan (BIP) Big Inspection Plan (BIP) Inspect each property by early CY 2023 High Priority inspections first out of the gate. Ramp up starting in early Jan 22 Bulk of inspections completed in FY/CY22. Pipeline Production (FY21-FY23) 40,000 35,000 30,000 25,000 20,000 15,000 10,000 Pipeline Production (FY21-FY23) 5,000 - 3,500 Jul-21 Jul-22 Jun-21 Jun-22 Dec-21 Apr-22 May-22 Dec-22 Aug-21 Nov-21 Aug-22 Nov-22 Jan-22 Mar-22 Jan-23 Mar-23 Sep-21 Feb-22 Sep-22 Feb-23 Oct-21 Oct-22 3,000 2,500 MF PH DEMO TOTALS ACTUALS 2,000 PH focus is on 3/31 and Troubled properties. Reviewing quality assurance inspection plan. Emphasis to add more inspectors via contracting or via internal training program. 1,500 1,000 500 - Jul-21 Jul-22 Jun-21 Jun-22 Nov-21 Apr-22 May-22 Nov-22 Sep-21 Dec-21 Jan-22 Feb-22 Mar-22 Sep-22 Dec-22 Jan-23 Feb-23 Mar-23 Aug-21 Aug-22 Oct-21 Oct-22 MF PH DEMO ACTUALS 12

H NSPIRE Demonstration NSPIRE Demonstration Goals: Through NSPIRE, HUD seeks to: Ensure families are living in decent and safe housing Enhance accuracy of REAC inspections through: Better identification of substandard properties Increased objectivity and defensibility of inspections Streamlined inspection processes Details: Inspections for up to 4,500 properties; Goal achieved but still wait listing registrants Designed to test, and refine as necessary, processes comprised of the standards, a new scoring model, regulations, business processes, risk models, IT systems, and support services Iterative approach to the development and delivery of NSPIRE capabilities Offers opportunities for collaboration with, and training for, Demonstration participants 13

H NSPIRE Demonstration NSPIRE Demonstration Accomplishments to Date: Published the NSPIRE Demonstration Notice on August 21, 2019 Initiated with registration of first properties in October 2019 Conducted field activities using initial NSPIRE standards at 81 sites over 59 properties until COVID-19 Starting first inspection on October 20, 2021 Projected Accomplishments: Continue with effort to inspect all 4,500 demonstration properties through CY2022 and into early CY2023 Use information to inform standards, populate proposed scoring model, and refine business processes and information technology Intent is to extend the NSPIRE Demonstration until April 2023 to continue to refine the elements of NSPIRE (standards, self-inspection processes, resident engagement) Develop and refine processes for self-inspections and resident engagement (e.g., surveys) 14

Upcoming NSPIRE Activities Upcoming NSPIRE Activities NSPIRE Demo Inspections This Week Following agency COVID inspection guidance Using NSPIRE Standards 2.1 initially NSPIRE Standards Federal Register Notice Early Calendar Year 2022 Will provide the first opportunity for formal comments on the NSPIRE Standards NSPIRE Scoring Federal Register Notice Will provide the first opportunity for formal comments on the NSPIRE Scoring Model NSPIRE Final Rule Working internally to respond to public comments received and make needed regulatory changes 15

H Q & A Q & A 16