OHFA vs. REAC
Introduction
The Uniform Physical Condition Standards (UPCS)
are the foundation of HUD/PIH-REAC’s Physical
Inspection Program.
 Creates the structure of the physical
inspection.
 Establishes standardized definitions for
inspectable items, the basis for electronic
inspections via UPCS software.
 Provides a uniform, objective protocol for
training inspectors performing inspections of
all property types.
PHYSICAL INSPECTION PROTOCOL
1
2
3
4
Receive
inspection
assignment
Download
property
profile
Confirm
inspection
Update
inspection
schedule
6
Meet with property
representative
10
a. Identify sample buildings
b. Enter generated
sample units
Verify/update property profile info.
a. property, b. participant,
c. certificate, d. area measures
Inspect
a. site,
b.-d. building(s),
and e. units
Inspection
Inspection
Day
Day
8
7
11
5
12
Confirm/verify
inspection
data
Visually verify/update
building
information
13
Complete
Notification
of Exigent and Fire
Safety Hazards
Observed form
(if needed)
and
provide a copy
to property
representative
Travel to
property
9
Generate
sample
14
Upload
completed
inspection
FREQUENCY of INSPECTIONS
Per Part VII 24 CFR Parts 5 and 200
Uniform Physical Condition Standards
and Physical Inspection Requirements for
Certain HUD Housing; Administrative
Process for Assessment of Insured and
Assisted Properties; Final Rule
http://portal.hud.gov/hudportal/HUD?src=/program_o
ffices/public_indian_housing/reac/products/pass/pas
s_fedreg
FREQUENCY of INSPECTIONS
FED: a newly endorsed multifamily property will receive its first physical inspection no
earlier than 21 months but not later than 27 months from the date of final
endorsement (FED – Final Endorsement Date).
__________________________________________________________________________________________________________________
3-2-1 Rule: Periodicity of inspections are either 3 years, 2 years or 1 year based on the
designation a property receives as either standard 1, standard 2, or standard 3, on the basis
of points on a 100 scale.
•
•
•
Properties receiving scores of 90 points or higher on a physical inspection will be
designated as standard 1 and the next inspection will be based on an Ideal Future Date
(IFD) 3 years from the date of the current inspection.
Properties receiving scores of 80 points or higher but less than 90 will be designated as
standard 2, and their next inspection will be based on an IFD 2 years from the date of
the current inspection.
Properties receiving scores of less than 80 will be designated as standard 3 and the next
inspection will be based on an Ideal Future Date (IFD) 1 year from the date of the
current inspection.
Preparing for REAC
• On Line Property Training
• http://portal.hud.gov/hudportal/HUD?
src=/program_offices/public_indian_h
ousing/reac/products/pass/pass_trng/
onlinetrainingmf
Preparation Recommendations
• Review REAC Compilation Bulletin
(http://portal.hud.gov/hudportal/documents/huddoc?id=Co
mpBulletin4-0Ver31515.pdf
• 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.
Preparation Recommendations (Cont)
• Use software (Public Version DCD 4.0:
http://portal.hud.gov/hudportal/HUD?src=/pr
ogram_offices/public_indian_housing/reac/pr
oducts/prodpass/dcd4.0) , paper or
consultants. (Follow UPCS protocol.)
• If an item exists, it must function as designed.
• Test operation/function of all inspectable
items.
Preparation Recommendations (Cont)
• Pay attention to Health and Safety items:
•
•
•
•
•
•
Gas leaks,
Exposed wires,
Blocked egress,
Expired fire extinguishers,
Missing / damaged sprinklers – paint on sprinkler or missing escutcheon
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
SCORING
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
Scoring is Based on
Objective Data
The REAC Data Collection Device (DCD) software
enhances objectivity via its use of a ‘‘decision
tree’’ model. Based on answers to questions, the
software guides the inspector in recording the
observed deficiency and based on the answers
the software determines the severity level of the
deficiency
No Two Properties
Are Alike
(For example, if there are no Common Areas on a property,
the other inspection areas become more important)
Property
Physical
Condition
Inspection Areas
Site
Health &
Safety
Deductions
Building
Building
Exterior
Wgt
15%
15%
Wgt
18%
18%
Building
Systems
Dwelling
Units
Common
Areas
20%
35%
15%
23%
41%
0%
Whole Point
Deductions
From Final
Score
100%
100%
Note:
Building/Unit
Counts
Site
CA
Note:
Different Possible Points
Scoring Methodology
Scores calculated based on:
Area Points & Item Weight & Criticality & Severity
Ranges are:
Area Points
Site
= 15
Bldg Ext = 15
Item Weight
Bldg Systems = 20
Dwelling Units = 35
Common Areas = 15
(Examples)
Smoke Detector = 0
Damaged Ceiling = 4
Criticality
Missing Toilet
= 10
Misaligned Chimney = 15.5
(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
HEALTH and SAFTEY
Health and Safety (H&S) items are found throughout the
inspection definitions. There are three basic categories of
H&S,
(a) NLT – Non Life Threatening
(b) LT – Life Threatening (aka EHS)
(c) Smoke Detectors which are included in the EHS Report
but there are no points associated with Smoke Detectors.
EHS Form for hard copy:
http://portal.hud.gov/hudportal/documents/huddoc?id=D
OC_26407.pdf
CORRECTIVE ACTIONS
• The Program Offices, Public Housing, Multifamily Housing and
Office of Healthcare Programs are responsible for property
corrective actions, including EHS items, following a physical
inspection.
• REAC Quality Assurance (QA) inspectors do complete reinspections for Multifamily (MF) properties with either scores <
30 which fall under the MF Departmental Enforcement Center
(DEC) or scores < 60 where the property doesn’t get approval
from MF concerning corrective actions.
• REAC QA inspectors also complete inspections based on
requests from the Program Offices for various reasons, normally
related to risk.
REPORTS
REAC Physical Inspection
Summary Report
https://www.youtube.com/watch?v=zOIrUtP9554&feature=youtu.be
http://portal.hud.gov/hudportal/HUD?src=/program_offices/public_indian_housing/reac/products/prodpass/dcd4.0
 New easy to read and understand format
 More detailed and descriptive information
 New ‘decision column’ detailing how the
inspector arrived at the deficiency
 Deficiency details section includes all multiple
recorded deficiencies for a designated sub-area
DCD 4.0 Software Report Enhancements
DCD 4.0 Sample Inspection Report
Inspection
Snapshot
# 500001
#500001
DCD 4.0 Sample Inspection Report
Property Profile
Includes property, building & unit details;
Occupancy information
and Bed Bug reports
# 500001
DCD 4.0 Sample Inspection Report
Participant information including
presence indicator
# 500001
DCD 4.0 Sample Inspection Report
Score Summary
High level
# 500001
DCD 4.0 Sample Inspection Report
Summary of Health &
Safety deficiencies
DCD 4.0 Sample Inspection Report
Systemic Deficiencies
# 500001
DCD 4.0 Sample Inspection Report
# 500001
Building/Unit Summary
DCD 4.0 Sample Inspection Report
# 500001
Certificates
DCD 4.0 Sample Inspection Report
Score Details
Explanation of
score for property
including source
of points
deducted
# 500001
0.79
Note
3 deficiencies
indicated for
Walls with score
deduction for 1
deficiency
DCD 4.0 Sample Inspection Report
# 500001
Decisions
Column
Lists the details
on
how the
inspector
identified the
deficiency
Note
Deficiency
Details
Will include all
multiple
recorded
deficiencies for
an inspectable
area
/ Under AC unit
/ Hallway
3 deficiencies
recorded for
Walls
UD R
e\
1| An Overview of the REAC Physical Inspection Scoring Process
REAC created this guide to present general information about HUD’s process for issuing scores for
REAC’s assessments of the physical condition of HUD—assisted properties.
Assessing the Physical Condition of HUD – assisted Properties
One of REAC’s most important functions is to ensure that public housing properties and HUD—assisted
multifamily properties are decent, safe, sanitary, and in good repair. Assessing the physical condition of
HUD—assisted properties begins with the REAC Physical Inspection. Applying HUD’s uniform, consistent
standards, known as the Uniform Physical Condition Standards (UPCS), REAC inspects a property and
uses the results to develop a score for the property’s physical condition. The process works for all types
and configurations of property.
The REAC physical inspection emphasizes health and safety (H & S) deficiencies because H & S
deficiencies are crucial to the well-being of residents.
The Results of the Inspection
The REAC physical inspection report generates this information:
-
scores for each of the five REAC physical inspection areas:
site
building exterior
building systems
common areas (if present)
units
an overall score for the property (a weighted average of the area scores minus deductions for H
& S deficiencies)
all of the deficiencies recorded by the inspector, their severity level, and the points deducted for
each deficiency
the estimated number of H & S deficiencies that would have been found if all buildings and units
had been inspected
The inspection report clearly shows the property owner:
2| An Overview of the REAC Physical Inspection Scoring Process
the magnitude of the points lost by inspectable area
the impact of H & S deficiencies on the score
During a physical inspection, the inspector carries out these important functions:
identifies deficiencies based on UPCS protocol
Data Collection Device (DCD) version 4.0 software (aka RAPID) enhances objectivity because it
uses a ‘‘decision tree’’ model. Based on answers to questions, the software guides the inspector
in recording the observed deficiency and based on the answers the software determines the
severity level of the deficiency.
Photographs for deficiencies are taken and become part of the inspection (currently only
photographs for level 3 deficiencies are taken)
completes inspection electronically while on site
provides property with a hard copy of all Exigent Health and Safety deficiencies identified during
the inspection
Deficiencies are the specific problems that the inspector observes / identifies for inspectable items — a
hole in a wall, a damaged refrigerator, etc., for example—
3| An Overview of the REAC Physical Inspection Scoring Process
REAC gives inspectors clear and objective observed deficiency (OD) decisions via the DCD software
based on deficiency definitions which are consistent for every physical inspection. On site, inspectors
use a hand-held computer to record identified deficiencies.
How Critical is the Deficiency?
A term used in the development of a physical inspection score is Criticality, which means one of five
levels that reflect the relative importance of the deficiencies for an inspectable item. Appendix 1 in the
HUD Physical Condition Scoring Notice and Revised Dictionary of Deficiency Definitions;
http://portal.hud.gov/hudportal/documents/huddoc?id=pass4.0scoringnoticefr.PDF
lists all deficiencies with their designated criticality levels, which vary from 1 to 5, with 5 being the most
critical. Based on the criticality level, each deficiency has an assigned value that is used in scoring. Those
values are as follows:
4| An Overview of the REAC Physical Inspection Scoring Process
Among deficiencies for a given item, the more critical the deficiency, the more impact it has on the
score. For example, if the severity level is the same, a clogged drain in the kitchen is more critical than a
missing or damaged cabinet. In this example, the drain reduces the score more than the cabinet.
The full impact of the criticality level on the score depends on the severity level and the item weight.
How Severe is the Deficiency?
The DCD software determines the severity of the deficiency — the extent of damage involved.
The DCD determines the relative severity levels of each deficiency based on how the inspector answers
questions concerning the defect in the Decision Tree for the specific deficiency. Using the answer to the
questions, the DCD software assigns one of three severity levels for the specific potential observed
deficiency (OD):
For a given deficiency, Level 3 severity has more impact on the score than Level 1. The full impact of a
severity level depends on the item weight and criticality level for a given deficiency. (Level 3 deficiencies
deduct twice as much as Level 2 deficiencies and four times as much as Level 1 deficiencies.)
5| An Overview of the REAC Physical Inspection Scoring Process
REAC – Physical Assessment Sub-System (PASS) Secure System takes the information from the uploaded
inspection and applies a specially designed scoring system to assess the physical condition of the
property. No scoring is done on the DCD, all scoring is completed behind the firewall at REAC.
Property scores come from area points; the numbers of possible points in the five areas add up to 100.
In the example, all inspectable items are present on the site and in each inspected building and dwelling
unit:
Each area contributes to the property score based on what is there to inspect. If, for example, there are
no common areas, the points would be reallocated to add up to 100 in the following way:
The chart below shows the reallocated property score.
6| An Overview of the REAC Physical Inspection Scoring Process
The “Weights”
To generate accurate scores, it is crucial to determine the relative importance of the various
components of the inspection—which components are the most important, the next most important,
and so on. The scoring system reflects the appropriate relative importance — the “weights”— of each
area, item, and deficiency.
HUD developed the weights based on the valuable advice and comments from a wide spectrum of
knowledgeable people, including:
professionals who have experience assessing the physical condition of properties
representatives from the housing and public housing industries
HUD professionals
REAC combines the weights and inspection data to compute the score on a 100–point scale. Scoring a
property’s physical condition depends on:
the weights for inspectable areas (5 areas)
the weights for inspectable items (8-17 per area)
the criticality levels of the deficiencies
the severity levels of the deficiencies
These are the steps in the process REAC uses to come up with the overall property score:
1. Determine how many points are possible for each area to be inspected.
2. For each area, deduct points for the observed deficiencies.
3. Add up the area scores.
7| An Overview of the REAC Physical Inspection Scoring Process
4. Deduct points for H & S deficiencies.
5. For H & S deficiencies, add either a, b, or c to the score:



If there are no H & S deficiencies, add a.
If there are H & S deficiencies but none are life–threatening (NLT), add b.
#
If there is a life-threatening (LT) H & S deficiency, add c.
#
Note: These are also known as “Exigent Health and Safety” or “EHS” deficiencies and require
immediate attention and correction.
6. If there is a smoke detector deficiency, the system adds an asterisk * to the score.
Please see Example 3 on page 11
Here are some examples of scores and what they mean:
Property Scores Defined
Scores
What they mean
95c
-
at least one LT / EHS defect
otherwise excellent condition
55b*
-
an H & S deficiency that is not life-threatening
a smoke detector deficiency
poor condition
90a*
-
no H & S deficiency
generally excellent condition
a smoke detector deficiency
If all the items are there to be inspected and all inspected buildings have the same number of units, we
follow these steps:
1. Multiply the area points, item weight, criticality, and severity.
2. For a building deficiency, divide by the total number of buildings inspected. For a dwelling unit
deficiency, divide by the number of units inspected.
The result is the deduction for that deficiency. You also need to account for the items that were there to
be inspected. For more on this, see A Technical Look at the Scoring Process starting on page 12.
8| An Overview of the REAC Physical Inspection Scoring Process
Here are three examples where all items are there to be inspected:
EXAMPLE 1
In this example, a deficiency in a ceiling will have a different impact on the score based on
the number of inspected units.
AREA: Dwelling Unit
ITEM: Ceiling
DEFICIENCY: Holes/Missing Tiles/Panels/Cracks
Criticality Level 4, Severity Level 3
250 units (24 inspected units)
First, multiply: 35 x 0.04 x 3.0 x 1.0 = 4.2
Then divide: 4.2/24 = 0.175 point deduction
15 units (10 inspected units)
First, multiply: 35 x 0.04 x 3.0 x 1.0 = 4.2
Then divide: 4.2/10 = 0.42 point deduction
9| An Overview of the REAC Physical Inspection Scoring Process
Example 2
In this example, the impact of a misaligned ventilation system varies based on the number of
buildings.
AREA: Building System
ITEM: Domestic Water
DEFICIENCY: Misaligned Chimney/Ventilation System
Criticality Level 5, Severity Level 3
10 buildings
First, multiply: 20 x 0.155 x 5.0 x 1.0 = 15.5
Then divide: 15.5/10 = 1.55 point deduction
5 buildings
First, multiply: 20 x 0.155 x 5.0 x 1.0 = 15.5
Then divide: 15.5/5 = 3.10 point deduction
10 | A n O v e r v i e w o f t h e R E A C P h y s i c a l I n s p e c t i o n S c o r i n g
Process
Example 3
In this example, a smoke detector deficiency has no impact on the score no matter how many
units are in the property, because the item weight is zero.
AREA: Dwelling Units
ITEM: Smoke Detector
DEFICIENCY: Missing/Inoperative
Criticality Level 5, Severity Level 3
250 units (24 inspected units)
First, multiply: 35 x 0 x 5.0 x 1.0 = 0*
Then divide: 0/24 = no point deduction
15 units (10 inspected units)
First, multiply: 35 x 0 x 5.0 x 1.0 = 0*
Then divide: 0/10 = no point deduction
11 | A n O v e r v i e w o f t h e R E A C P h y s i c a l I n s p e c t i o n S c o r i n g
Process
The physical condition scoring process is based on three elements:
inspectable area
inspectable items
observed deficiencies
The score for a property is the weighted average of area scores, with the area weights adjusted to take
into account how many of an area’s inspectable items are actually present to be inspected.
The area scores are calculated by deriving weighted averages of sub-area scores over buildings
or dwelling units as appropriate.
The sub-area scores are calculated by deducting points for deficiencies, based on criticality and
severity levels. (Points also deducted for H & S deficiencies in the same manner.)
Normalized Area Weights
A property’s overall physical condition score is a weighted average of area scores. These are the
approximate relative weights:
These weights are assigned if all inspectable items are present for the site, each inspected building, and
each inspected unit. When items are missing, the area weights are modified to reflect the missing
items. If all of the inspectable items are missing—in a common area, for example—the weight of the
common area is 0.
12 | A n O v e r v i e w o f t h e R E A C P h y s i c a l I n s p e c t i o n S c o r i n g
Process
For example, if half of the common area items are there to inspect, 7.5 points must be reallocated to the
areas— including the common areas. The relative weights are reallocated or modified in the following
way.
The chart below shows the modified relative weights.
Special Considerations
The scoring methodology takes a number of issues into consideration:
The scoring does not allow the site score or any sub-area scores for individual buildings or units
to be negative. If they would have been negative, they are set to zero. This ensures that no
single building or dwelling unit can affect the overall score more than its proportionate share of
the whole.
13 | A n O v e r v i e w o f t h e R E A C P h y s i c a l I n s p e c t i o n S c o r i n g
Process
Buildings have different numbers of dwelling units. Buildings with more units have more impact
on an area score than smaller buildings.
Buildings and dwelling units have different features and amenities. The area scores and the
overall score reflect only items that are present to be inspected. (The weights to calculate area
and property scores are adjusted based on what is there to be inspected.) Buildings or units with
more items present contribute more to area points.
For example, two buildings have the same number of units. The building systems in one include an
exhaust system with an item weight of 15.5; the other building does not have an exhaust system.
Consequently, the building without an exhaust system contributes 15.5 fewer points to the overall
building systems area score.
14 | A n O v e r v i e w o f t h e R E A C P h y s i c a l I n s p e c t i o n S c o r i n g
Process
Useful Websites for Reference
http://www.hud.gov/offices/reac/products/pass/pass_fedreg.cfm - Fed Reqs
http://www.hud.gov/offices/reac/products/prodpass.cfm - Physical Inspections
http://portal.hud.gov/hudportal/HUD?src=/program_offices/public_indian_housing/reac/products/
prodpass/dcd4.0 - DCD 4.0 Website
http://portal.hud.gov/hudportal/HUD?src=/program_offices/public_indian_housing/reac/products/
pass/pass_trng - Online Training
https://www.federalregister.gov/articles/2012/08/09/2012-19335/public-housing-assessmentsystem-phas-physical-condition-scoring-notice-and-revised-dictionary-of - Fed Register Scoring
Notice
http://hud.gov/offices/reac/products/pass/PDFs/rapid4.0userguide.pdf
- DCD 4.0 / RAPID (Record And Process Inspection Data) user Guide