Presentation on theme: "Presented by Larry D. Davis Terrence J. Kelley Michelle DeVastey"— Presentation transcript:
1 Presented by Larry D. Davis Terrence J. Kelley Michelle DeVastey Passing REACPresented byLarry D. DavisTerrence J. KelleyMichelle DeVastey
2 What is REAC? Real Estate Assessment Center (REAC) REAC’s mission is to provide and promote the effective use of accurate, timely and reliable information, assessing the condition of HUD’s portfolio; to provide information to help ensure safe, decent and affordable housing; and to restore the public trust by identifying fraud, abuse and waste of HUD resources.
3 What Happens Depends on your Score? Next REAC Inspection90 – 1003 Years80 – 892 Years60 – 791 Year59 or BelowFailProperties scoring 59 or below are automatically referred to HUD’s Departmental Enforcement Center (DEC) for corrective enforcement and re-inspection. For properties which receive physical re-inspection scores below 60, the possible courses of action to be taken include the following:1. Foreclosure2. Prepayment3. Abatement/termination of the Section 8 HAP Contract4. Mortgage sale of the Note5. Restructuring by OMHAR (Office of Multi Housing AssistanceRestructuring)6. Transfer of Physical Assets (TPA)
5 Preparing for REAC All Year Walk you property thoroughlyIdentify problems in the early stagesPlan and budget for repairs and seasonal work with RPM and/or Owner approval
6 REAC NotificationREAC Inspection can take place 90 days before or after the anniversary date of the previous REACREAC Inspection for new properties can be any time after development closesNotification can be 30 days to as little as 2 weeks prior to inspection
7 REAC Resources Your Regional Property Manager Your Senior Vice PresidentEMC SpecialistsFrank Martin, Jamal Abdul-Wali, Frank Winston, Boo Nickel and TeamProperty OwnerProperties under the same ownership in near proximity to your property
8 What do you do when you get the call from HUD or assigned inspection company informing you of the REAC?Do not panicDo not agree to date without clearing with your RPM or Senior VPOnce date is agreed upon with management team, call HUD or inspection company and confirm dateNow you need to step up your plan and completion date
9 How to Achieve the Best Possible REAC Score, it is not just about $$$
10 How to Achieve the Best REAC Score Focus on big point items and health and safety (H&S) deficienciesHealth and safety deficiencies can reduce the overall property score by a substantial amount due to their great importance to the well being of residentsThe presence of H&S deficiencies is highlighted in the score by the addition of a letter to the numeric score (“a” for no H&S, “b” for non-life threatening H&S or “c” for exigent, calling for immediate attention or remedy, or fire safety H&S; for example, 75c)Health and safety includes a blocked egress (including windows), blocked fire exits, improperly stored flammable materials, pest controlManagement is responsible to address all exigent health and safety deficiencies within 72 hours of the inspection
11 Project Owners Certification Upon completion of exigent Health and Safety deficiencies a Project Owner’s Certification That All Exigent Health and Safety items have been corrected.The form on the next slide needs to be filled out by the Regional Property Manager and then forwarded to the Owner for signature. The only time this form may be executed by the agent, on behalf of the Owner is if the Owner cannot execute the form in a timely manner.Upon completion of the forma and signature by Owner, Certification must be sent to the local HUD office or the performance based contractor.DO NOT SEND THIS FORM TO REAC.
16 How to Achieve the Best REAC Score Manager, Maintenance Supervisor and RPM need to walk ALL common areasCommon areas include grounds, building exteriors, roofs, storage areas, sheds, maintenance/electrical rooms, office, community centers, pool area, elevator rooms, basements, etc.If it is on your property… INSPECT IT
18 Sidewalk w/ Crack/Rise GroundsDamaged or missing signsSidewalks with over ¼” crack or riseExterior lightingTrees touching buildingErosion including holesIssues with Globes or Exposed WiresCurb StopsHand rails and handicapped ramps-FHEOBroken or damaged fencesBroken glass on groundsDamaged or missing asphalt or concrete including curbs and brick paversDamaged dumpster enclosures, lids and trashcansLow tree limbsDead plant materialSidewalk w/ Crack/Rise
19 Playgrounds Benches with missing slats Handicap accessibility Erosion GraffitiDamaged equipment / loose bolts or screws, sharp edges, etc.
20 Building Exterior Broken/fogged window glass Exposed wiring (including cable and telephone)GFI’s with Cover (test)Photocells and building lightsDamaged balcony/patio railingsPeeling or flaking paintGraffitiDamaged or missing brick/sidingExterior disconnect box secured shut (bolted, screwed, locked or zip tied)Mailbox damage (missing door)Missing or Damaged screensClogged, damaged or missing gutters/downspoutsDamaged or missing roof shinglesMissing or damaged shuttersExpansion jointsDamaged HVAC grill coversMissing doors or door hardwareFlat roof damage including standing/ponding water, vent motors not running, missing china caps/vent covers, drain covers, connected lightening rods, loose or missing coping or flashing
21 Fire Extinguisher w/ Tag HallwaysFire extinguishers charged (not overcharged) and date tag not over one year oldSprinkler heads completely free of paintBroken electrical outletsSmoke detectorsCracked/peeling paintNo tripping hazards – Carpet, Stair treads, etc….Broken /fogged glassWindow balances must hold window in open positionMissing vent coversMissing knobs for fan unitsEmergency lighting – check to make sure working (push the test button)Exits lightsAll doors are clearly markedDamaged drywallAll door hardware working – Doors must latch under their own powerCheck light globes and or diffusersMailboxes must have properly working doors and locksFire Extinguisher w/ TagEmergency Exit Sign
22 Maintenance and Storage Rooms and Sheds Peeling / cracked paintNo hazardous materials, i.e gasEmpty all gas from gas powered equipment stored insideFlammable items in fire cabinetDoor hardwareCove base – no missing piecesDamaged drywallWater damage spotsAll GFI’s tested and working properlyNo empty or untagged fire extinguishersFire Safety Cabinet
23 Pool House No leaking pumps No tripping hazards No standing water Light fixtures workingOutlets and covers in placeAll GFI’s tested and working properlyCheck all electrical connections to pumps, etc....
24 Electrical and Mechanical Rooms Cracked peeling paintNo hazardous materialsWorking door hardware/Door must latch under its own powerSmoke detectorsNo empty breaker slots in panelBreaker panel doors operationalNo exposed wiringDisconnect boxes securedNo trip hazardsBreaker Box/PanelDisconnect Box
25 Laundry Room Dryer vents secured and have no lint Exhaust fan operationalIf gas equipped – carbon monoxide detectorIf electric – smoke detectors220v outlets secured with coversNo leaking pipesNo visible signs of water damageNo trash or debris behind washers/ dryersFire extinguisher – current inspections – not undercharged or overchargedOperational door hardwareHot water heater drip legs (6” or less to floor) check local codesDryer VentsDrip Leg
26 Office and Community Service Space All electrical outlets and switches workingFire extinguisher – current inspections – not undercharged or overchargedPeeling / cracked paintNo broken / fogged glass in windowsSmoke detectorsTripping hazardsExit signsEmergency Lights - test