1. 1 2015 HFA Institute REAC Uniform Physical Condition Standards January 12, 2015

2. 2 The Uniform Physical Condition Standards (UPCS) are the foundation of HUD/PIH-REAC’s Physical Inspection Program. –Creates the structure of the physical inspection. (Identifies five inspectable areas and health and safety hazards.) –Establishes standardized definitions for inspectable items, the basis for electronic inspections via UPCS software. (Inspection data is validated, producing a score which indicates the physical condition of a property.) –Provides a uniform, objective protocol for training inspectors performing inspections of all property types. UPCS

3. Structured (Training, protocol, systems.) Automated (Scheduling, processing, reporting.) Efficient (Software based.) Standardized (Industry adoption.) Comprehensive (Includes Quality Assurance, appeals, corrections.) BENEFITS OF ADOPTING HUD-REAC UPCS STANDARD

4. Unify physical inspections at the federal level where programs overlap. (HUD/IRS/USDA) Provide the capability to gather, process and provide unified inspection data. Eliminate duplicative efforts by multiple agencies and reduce frequency. CHALLENGE

5. 5 Inspection Day Inspection Day Receive inspection assignment Receive inspection assignment 1 Download property profile Download property profile 2 Confirm inspection Confirm inspection 3 Update inspection schedule Update inspection schedule 4 Travel to property Travel to property 5 Meet with property representative Meet with property representative 6 7 Verify/update property profile info. a. property, b. participant, c. certificate, d. area measures 7 Verify/update property profile info. a. property, b. participant, c. certificate, d. area measures 8 Visually verify/update building information 8 Visually verify/update building information Generate sample Generate sample 9 a. Identify sample buildings b. Enter generated sample units a. Identify sample buildings b. Enter generated sample units 10 Inspect a. site, b.-d. building(s), and e. units Inspect a. site, b.-d. building(s), and e. units 11 Confirm/verify inspection data Confirm/verify inspection data 12 Complete Notification of Exigent and Fire Safety Hazards Observed form (if needed) and provide a copy to property representative Complete Notification of Exigent and Fire Safety Hazards Observed form (if needed) and provide a copy to property representative 13 Upload completed inspection Upload completed inspection 14 PHYSICAL INSPECTION PROTOCOL

6. 6 Before: Preparation - Conduct a complete (100%) inspection of the property. - Include all five inspectable areas:  Entire Site  All Building Exteriors  All Building Systems  All Common Areas  All Units * * All non-residential units are considered Common Areas and must be accessible. - Use software, paper or consultants. (Follow UPCS protocol.) - If an item exists, it must function as designed. - Test operation/function of all inspectable items.

7. 7 Before: Preparation (Continued) - Pay attention to Health and Safety items:  Gas leaks,  Exposed wires,  Blocked egress,  Expired fire extinguishers,  Missing/inoperable smoke detectors, etc. - Electrical:  All boxes subject to inspection regardless of location  All panels/fuse boxes must be made accessible  All other boxes will not be opened if secured - Blocked Access:  All individual living areas/rooms must have two means of egress - Inspection date should be mutually agreed upon

8. 8 During - Have the following items available:  Certificates (Boilers, Fire Alarm, LBP, etc.)  Area measures (Parking lots, driveways, roads, etc.)  Rent roll (Current and including all units)  Site map (If available) - Try not to schedule maintenance/service for the day of inspection - Carry a notepad and digital camera to document deficiencies - You are allowed to do the following:  Install a light bulb  Light a pilot light  Plug in a bathroom fan

9. 9 SCORING

10. 10 The Goal Assign a score to the overall property condition based on the data collected by the inspector – Measure physical condition – Objective & consistent – Accommodates all property types & configurations

11. 11 The inspector records the existence and the severity of deficiencies according to preset criteria Scoring is Based on Objective Data

12. 12 Relative importance (“weights”) were assigned to each physical area, item, and deficiency in the inspection protocol HUD applies the weights to the inspection data to compute the score The score is based on a 100 point scale The Scoring Approach

13. Site Building Exterior Common Areas Dwelling Units Fencing and Retaining Walls Grounds Lighting Mailboxes/Project Signs Market Appeal Parking Lots/Driveways/Roads Play Areas and Equipment Refuse Disposal Storm Drainage Walkways/Steps Doors Fire Escapes Foundations Lighting Roofs Walls Windows Domestic Water Electrical System Elevators Emergency Power Exhaust System Fire Protection HVAC Sanitary System Basement/Garage/Carport Office Closet/Utility/Mechanical Other Community Spaces Community Room Patio/Porch/Balcony Day Care Pools and Related Structures Halls/Corridors/Stairs Restrooms/Pool Structures Kitchen Storage Laundry Room Trash Collection Areas Lobby Bathroom Call-for-Aid Ceiling Doors Electrical System Floors Hot Water Heater HVAC System Kitchen Lighting Outlets/Switches Patio/Porch/Balcony Smoke Detector Stairs Walls Windows Building Systems Areas & Items 15% 20% 35%15%

14. 14 Wgt15% 20%35%15%100% Property Physical Condition Inspection Areas Site Health & Safety Deductions Whole Point Deductions From Final Score Building Exterior Building Systems Dwelling Units Common Areas Building Scoring Dynamics

15. 15 Wgt15% 20%35%15%100% Property Physical Condition Inspection Areas Site Health & Safety Deductions Whole Point Deductions From Final Score Building Exterior Building Systems Dwelling Units Common Areas Building Wgt15% 20%35%15%100% Wgt18% 23%41% 0%100% (For example, if there are no Common Areas on a property, the other inspection areas become more important) No Two Properties Are Alike

16. 16 Scores calculated based on: Area Points x Item Weight x Criticality x Severity Ranges are: Area Points Site = 15Bldg Systems = 20Dwelling Units = 35 Bldg Ext = 15Common Areas = 15 Item Weight (Examples) Smoke Detector = 0Missing Toilet = 10 Damaged Ceiling = 4.5Misalinged Chimney = 15.5 Criticality (5) Critical = 5.0 (2) Contributes = 1.25 (4) Very Important = 3.0 (1) Slight Contribution = 0.5 (3) Important = 2.25 Severity (3) Most Severe = 1.0 (2) Severe = 0.50 (1) Least Severe = 0.25 Scoring Methodology

17. 17 www.hud.gov/reac 1-888-245-4860 reac@hud.gov For More Information

18. 18 Any Questions? Email: james.arcara@hud.gov Phone: (202) 475-8567