The commencement of the new 14-day notice REAC Inspection rule: Management companies and owners need to develop innovative metrics for physical compliance. Major portion are determined to wards new HUD initiative is to end what they refer to as “Just in Time” repairs and the practice of owners/agents simply operating their properties under the appearance of preparing for the exam, instead of looking at the quality of their communities.
While the assumption that the industry functioned their properties in this manner is deeply faulty, the awareness has resulted in a set of new challenges for the industry.

Currently, owner/agents need to develop a new set of operating standards to address REAC readiness on an everyday basis. Many in the industry have developed measures that rely on the last REAC score to determine if a property is ready or in need of additional attention. However, many REAC Inspections were deeply faulty due to poor quality and inconsistent results, making these inspections a poor standard for risk rating.
We, at Pioneer Educator, are working with a number subject matter expertise, who are now developing new maintenance operating procedures. These procedures are creating new standards and policies for physical compliance, creating:

  • Layers of internal inspections
  • Quality control procedures
  • REAC compliance training
  • Work order policies
  • Risk examination ratings to determine how regularly, and when, a property needs to be studied for its REAC readiness.

This policy and ones like it is a significant share of preparing for new, deeper analysis of physical compliance. Previous results, as hard-won as they may have been, were built on an older set of prospects and procedures, and continuing to use those approaches could expose owners/agents to non-compliance. With new levels of scrutiny on physical conditions of HUD and Tax Credit properties, owners/agents need to bring a new level of seriousness to maintenance.
In the coming years, we belief there are more reforms to REAC expected: owners/agents need to take this moment to take a careful look at their policies and procedures. Are the standards of owners/agents based upon past expectations, or what the upcomingcompliance holds? If owners/agents are preparing for the rules of the past, the future may contain high levels of risk and doubt.
If you should have any questions about what physical compliance policies would look like for your company, please join our subject matter expertise Hank Vanderbeek, MPA, CMI, for a webinar or please contact us at

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