Passing REAC Presented by Larry D. Davis Terrence J. Kelley Michelle DeVastey.

Passing REACPassing REACPresented by Presented by Larry D. DavisLarry D. Davis

Terrence J. KelleyTerrence J. KelleyMichelle DeVasteyMichelle DeVastey

What is REAC?What is REAC?

Real Estate Assessment Center (REAC)Real Estate Assessment Center (REAC)

REAC’s mission is to provide and promote the REAC’s mission is to provide and promote the effective use of accurate, timely and reliable effective use of accurate, timely and reliable information, assessing the condition of HUD’s information, assessing the condition of HUD’s portfolio; to provide information to help ensure portfolio; to provide information to help ensure safe, decent and affordable housing; and to safe, decent and affordable housing; and to restore the public trust by identifying fraud, restore the public trust by identifying fraud, abuse and waste of HUD resources. abuse and waste of HUD resources.

What Happens Depends on your What Happens Depends on your Score?Score?

ScoreScore Next REAC InspectionNext REAC Inspection

90 – 10090 – 100 3 Years3 Years

80 – 8980 – 89 2 Years2 Years

60 – 79 60 – 79 1 Year1 Year

59 or Below59 or Below FailFail

Properties scoring 59 or below are automatically referred to HUD’s Properties scoring 59 or below are automatically referred to HUD’s Departmental Enforcement Center (DEC) for corrective enforcement and re-Departmental Enforcement Center (DEC) for corrective enforcement and re-inspection. For properties which receive physical re-inspection scores inspection. For properties which receive physical re-inspection scores below 60, the possible courses of action to be taken include the following:below 60, the possible courses of action to be taken include the following:

1. Foreclosure1. Foreclosure2. Prepayment2. Prepayment3. Abatement/termination of the Section 8 HAP Contract3. Abatement/termination of the Section 8 HAP Contract4. Mortgage sale of the Note4. Mortgage sale of the Note5. Restructuring by OMHAR (Office of Multi Housing Assistance 5. Restructuring by OMHAR (Office of Multi Housing Assistance

Restructuring)Restructuring)6. Transfer of Physical Assets (TPA)6. Transfer of Physical Assets (TPA)

Now do you think REAC Now do you think REAC is Important?is Important?

Preparing for REAC All YearPreparing for REAC All Year

Walk you property thoroughlyWalk you property thoroughly

Identify problems in the early stagesIdentify problems in the early stages

Plan and budget for repairs and seasonal Plan and budget for repairs and seasonal work with RPM and/or Owner approvalwork with RPM and/or Owner approval

REAC NotificationREAC Notification

REAC Inspection can take place 90 days REAC Inspection can take place 90 days before or after the anniversary date of the before or after the anniversary date of the previous REACprevious REAC

REAC Inspection for new properties can REAC Inspection for new properties can be any time after development closesbe any time after development closes

Notification can be 30 days to as little as 2 Notification can be 30 days to as little as 2 weeks prior to inspectionweeks prior to inspection

REAC ResourcesREAC Resources

Your Regional Property ManagerYour Regional Property Manager

Your Senior Vice PresidentYour Senior Vice President

EMC SpecialistsEMC Specialists Frank Martin, Jamal Abdul-Wali, Frank Frank Martin, Jamal Abdul-Wali, Frank

Winston, Boo Nickel and TeamWinston, Boo Nickel and Team

Property OwnerProperty Owner

Properties under the same ownership in Properties under the same ownership in near proximity to your propertynear proximity to your property

What do you do when you get the call from What do you do when you get the call from HUD or assigned inspection company HUD or assigned inspection company

informing you of the REAC?informing you of the REAC?

Do not panicDo not panicDo not agree to date without clearing with Do not agree to date without clearing with your RPM or Senior VPyour RPM or Senior VPOnce date is agreed upon with Once date is agreed upon with management team, call HUD or inspection management team, call HUD or inspection company and confirm datecompany and confirm dateNow you need to step up your plan and Now you need to step up your plan and completion datecompletion date

How to Achieve the Best How to Achieve the Best Possible REAC Score, it is Possible REAC Score, it is

not just about $$$not just about $$$

How to Achieve the Best REAC ScoreHow to Achieve the Best REAC Score

Focus on big point items and health and safety Focus on big point items and health and safety (H&S) deficiencies(H&S) deficiencies Health and safety deficiencies can reduce the overall Health and safety deficiencies can reduce the overall

property score by a substantial amount due to their property score by a substantial amount due to their great importance to the well being of residentsgreat importance to the well being of residents

The presence of H&S deficiencies is highlighted in the score The presence of H&S deficiencies is highlighted in the score by the addition of a letter to the numeric score (“a” for no 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, H&S, “b” for non-life threatening H&S or “c” for exigent, calling for immediate attention or remedy, or fire safety H&S; calling for immediate attention or remedy, or fire safety H&S; for example, 75c)for example, 75c)Health and safety includes a blocked egress (including Health and safety includes a blocked egress (including windows), blocked fire exits, improperly stored flammable windows), blocked fire exits, improperly stored flammable materials, pest controlmaterials, pest controlManagement is responsible to address all exigent health and Management is responsible to address all exigent health and safety deficiencies within 72 hours of the inspectionsafety deficiencies within 72 hours of the inspection

Project Owners Certification Project Owners Certification

Upon completion of exigent Health and Safety deficiencies a Upon completion of exigent Health and Safety deficiencies a Project Owner’s Certification That All Exigent Health and Project Owner’s Certification That All Exigent Health and Safety items have been corrected. Safety items have been corrected.

The form on the next slide needs to be filled out by the The form on the next slide needs to be filled out by the Regional Property Manager and then forwarded to the Owner Regional Property Manager and then forwarded to the Owner for signature. The only time this form may be executed by the for signature. The only time this form may be executed by the agent, on behalf of the Owner is if the Owner cannot execute agent, on behalf of the Owner is if the Owner cannot execute the form in a timely manner. the form in a timely manner.

Upon completion of the forma and signature by Owner, Upon completion of the forma and signature by Owner, Certification must be sent to the local HUD office or the Certification must be sent to the local HUD office or the performance based contractor.performance based contractor.

DO NOT SEND THIS FORM TO REAC.DO NOT SEND THIS FORM TO REAC.

How to Achieve the Best REAC ScoreHow to Achieve the Best REAC Score

Most points are lost in common areasMost points are lost in common areas

Total REAC Score breakdown:Total REAC Score breakdown: 15% Site15% Site 15% Building Exterior15% Building Exterior 20% Building Systems20% Building Systems 15% Common Areas15% Common Areas 35% Dwelling Units35% Dwelling Units

Common Area DeductionsCommon Area Deductions

Missing Knob on Heater

Broken Thermopane Seal on Window

How to Achieve the Best REAC ScoreHow to Achieve the Best REAC Score

Manager, Maintenance Supervisor and Manager, Maintenance Supervisor and RPM need to walk RPM need to walk ALLALL common areas common areas

Common areas include grounds, building Common areas include grounds, building exteriors, roofs, storage areas, sheds, exteriors, roofs, storage areas, sheds, maintenance/electrical rooms, office, maintenance/electrical rooms, office, community centers, pool area, elevator community centers, pool area, elevator rooms, basements, etc.rooms, basements, etc.

If it is on your property… If it is on your property… INSPECT IT INSPECT IT

What are you looking for What are you looking for on this group walk?on this group walk?

GroundsGrounds

Damaged or missing signsDamaged or missing signsSidewalks with over ¼” crack or riseSidewalks with over ¼” crack or riseExterior lightingExterior lightingTrees touching buildingTrees touching buildingErosion including holesErosion including holesIssues with Globes or Exposed WiresIssues with Globes or Exposed WiresCurb StopsCurb StopsHand rails and handicapped ramps-FHEOHand rails and handicapped ramps-FHEOBroken or damaged fencesBroken or damaged fencesBroken glass on groundsBroken glass on groundsDamaged or missing asphalt or concrete including curbs and brick Damaged or missing asphalt or concrete including curbs and brick paverspaversDamaged dumpster enclosures, lids and trashcansDamaged dumpster enclosures, lids and trashcansLow tree limbsLow tree limbsDead plant materialDead plant material

Sidewalk w/ Crack/Rise

PlaygroundsPlaygrounds

Benches with missing slatsBenches with missing slats

Handicap accessibilityHandicap accessibility

ErosionErosion

Graffiti Graffiti

Damaged equipment / loose bolts or Damaged equipment / loose bolts or screws, sharp edges, etc.screws, sharp edges, etc.

Building ExteriorBuilding ExteriorBroken/fogged window glassBroken/fogged window glassExposed wiring (including cable and telephone)Exposed wiring (including cable and telephone)GFI’s with Cover (test)GFI’s with Cover (test)Photocells and building lightsPhotocells and building lightsDamaged balcony/patio railingsDamaged balcony/patio railingsPeeling or flaking paintPeeling or flaking paintGraffitiGraffitiDamaged or missing brick/sidingDamaged or missing brick/sidingExterior disconnect box secured shut (bolted, screwed, locked or zip tied)Exterior disconnect box secured shut (bolted, screwed, locked or zip tied)Mailbox damage (missing door)Mailbox damage (missing door)Missing or Damaged screensMissing or Damaged screensClogged, damaged or missing gutters/downspoutsClogged, damaged or missing gutters/downspoutsDamaged or missing roof shinglesDamaged or missing roof shinglesMissing or damaged shuttersMissing or damaged shuttersExpansion jointsExpansion jointsDamaged HVAC grill coversDamaged HVAC grill coversMissing doors or door hardwareMissing doors or door hardwareFlat roof damage including standing/ponding water, vent motors not running, missing Flat roof damage including standing/ponding water, vent motors not running, missing china caps/vent covers, drain covers, connected lightening rods, loose or missing coping china caps/vent covers, drain covers, connected lightening rods, loose or missing coping or flashingor flashing

HallwaysHallwaysFire extinguishers charged (not overcharged) and date tag not Fire extinguishers charged (not overcharged) and date tag not over one year oldover one year oldSprinkler heads completely free of paintSprinkler heads completely free of paintBroken electrical outletsBroken electrical outletsSmoke detectorsSmoke detectorsCracked/peeling paintCracked/peeling paintNo tripping hazards – Carpet, Stair treads, etc….No tripping hazards – Carpet, Stair treads, etc….Broken /fogged glassBroken /fogged glassWindow balances must hold window in open positionWindow balances must hold window in open positionMissing vent coversMissing vent coversMissing knobs for fan unitsMissing knobs for fan unitsEmergency lighting – check to make sure working (push the Emergency lighting – check to make sure working (push the test button)test button)Exits lightsExits lightsAll doors are clearly markedAll doors are clearly markedDamaged drywallDamaged drywallAll door hardware working – Doors must latch under their own All door hardware working – Doors must latch under their own powerpowerCheck light globes and or diffusersCheck light globes and or diffusersMailboxes must have properly working doors and locksMailboxes must have properly working doors and locks

Emergency Exit Sign

Fire Extinguisher w/ Tag

Maintenance and Storage Rooms Maintenance and Storage Rooms and Shedsand Sheds

Peeling / cracked paintPeeling / cracked paintNo hazardous materials, i.e gasNo hazardous materials, i.e gas

Empty all gas from gas powered Empty all gas from gas powered equipment stored insideequipment stored inside

Flammable items in fire cabinetFlammable items in fire cabinet

Door hardwareDoor hardwareCove base – no missing pieces Cove base – no missing pieces Damaged drywallDamaged drywallWater damage spotsWater damage spotsAll GFI’s tested and working properlyAll GFI’s tested and working properlyNo empty or untagged fire No empty or untagged fire extinguishersextinguishers

Fire Safety Cabinet

Pool HousePool House

No leaking pumps No leaking pumps No tripping hazardsNo tripping hazardsNo standing waterNo standing waterLight fixtures workingLight fixtures workingOutlets and covers in placeOutlets and covers in placeAll GFI’s tested and working properlyAll GFI’s tested and working properlyCheck all electrical connections to pumps, Check all electrical connections to pumps, etc....etc....

Electrical and Mechanical RoomsElectrical and Mechanical Rooms

Cracked peeling paintCracked peeling paintNo hazardous materialsNo hazardous materialsWorking door hardware/Door must Working door hardware/Door must latch under its own powerlatch under its own powerSmoke detectorsSmoke detectorsNo empty breaker slots in panelNo empty breaker slots in panelBreaker panel doors operationalBreaker panel doors operationalNo exposed wiringNo exposed wiringDisconnect boxes securedDisconnect boxes securedNo trip hazards No trip hazards Disconnect

Box

Breaker Box/Panel

Laundry RoomLaundry Room Dryer vents secured and have no lintDryer vents secured and have no lintExhaust fan operationalExhaust fan operationalIf gas equipped – carbon monoxide If gas equipped – carbon monoxide detectordetectorIf electric – smoke detectorsIf electric – smoke detectors220v outlets secured with covers220v outlets secured with coversNo leaking pipesNo leaking pipesNo visible signs of water damageNo visible signs of water damageNo trash or debris behind washers/ dryersNo trash or debris behind washers/ dryersFire extinguisher – current inspections – Fire extinguisher – current inspections – not undercharged or overchargednot undercharged or overchargedOperational door hardwareOperational door hardwareHot water heater drip legs (6” or less to Hot water heater drip legs (6” or less to floor) check local codesfloor) check local codes

Dryer Vents

Drip Leg

Office and Community Service SpaceOffice and Community Service Space

All electrical outlets and switches working All electrical outlets and switches working

Fire extinguisher – current inspections – not Fire extinguisher – current inspections – not undercharged or overchargedundercharged or overcharged

Peeling / cracked paintPeeling / cracked paint

No broken / fogged glass in windowsNo broken / fogged glass in windows

Smoke detectorsSmoke detectors

Tripping hazardsTripping hazards

Exit signsExit signs

Emergency Lights - testEmergency Lights - test

HIGH RISE REAC PUNCH OUT Per UNIT Apartment __________________ Work Checked By: __________________________________ Date: ______________ Work Completed By: _______________________________ Date: ________________ Work Requested Okay/Repairs Done 1. Electrical Panel Spacers ____ _____________ 2. Windows Sliding/Stationary ____ _____________ 3. Faucets, Toilet, Leaking Pipes (Kitchen & Bathroom) ____ _____________ 4. Smoke Detectors ____ _____________ 5. Water Stains/Peeling Paint (Mold/Mildew Stains) ____ _____________ 6. GFI’s (ALL must manually test) ____ _____________ 7. Missing Wall Plates ____ _____________ 8. Garbage Disposals ____ _____________ 9. Doors Must Latch/Screws(all interior and entry) ____ _____________ 10. Range Hood Exhaust Fans ____ _____________ 11. Vacuum All Mouse Droppings ____ _____________ 12. Water Leaks (Kilz) ____ _____________

13. Missing Knobs ____ _____________ 14. Screens Repaired ____ ____________ 15. Missing Screens ____ _____________ 16. Bifold Doors operational including pins ____ _____________ 17. Apartment Doors Swing Shut on their own ____ _____________ 18. Patio Rails ____ _____________ 19. Spinkler Heads ____ _____________ 20. Vertical Blinds Operable (if applicable) ____ _____________ 21. Bathroom Heater ____ _____________ 22. HVAC Units ____ _____________ 23. Outlet Cover Plates ____ _____________ 24. Refrigerator Gasket ____ _____________ 25. Check each stove burner ____ _____________ 26. Stove Gasket ____ _____________ 27. Pull cord for emergency not wrapped on towel bar ____ _____________ 28. Tub stoppers and sink stoppers ____ _____________ 29. Tub diverters must be checked for proper operation ____ _____________

PENTHOUSE REAC PUNCH OUT

Work Checked By: _______________________________ Date: ________________ Work Completed By: ______________________________ Date: _________________ Work Requested Okay/Repairs Done 1. Electrical Panel Spacers ____ _____________ 2. Fan Covers, no area for hand to touch blades ____ _____________ (Mesh covers or chicken wire) 3. Check Door Frame and latches ____ _____________ 4. Remove all Debris (Trash) ____ _____________ 5. Install insulation around air conditioner or other openings ____ _____________ 6. All electrical covers secured no visible wires or wire nuts ____ _____________

GARDEN APT. REAC PUNCH OUT Apartment __________________ Work Checked By: __________________________________ Date: ______________ Work Completed By: _______________________________ Date: ________________ Work Requested Okay/Repairs Done 1. Electrical Panel Spacers ____ _____________ 2. Windows Sliding/Stationary ____ _____________ 3. Faucets, Toilet, Leaking Pipes (Kitchen & Bathroom) ____ _____________ 4. Smoke Detectors ____ _____________ 5. Water Stains/Peeling Paint (Mold/Mildew Stains) ____ _____________ 6. GFI’s (ALL) ____ _____________ 7. Missing Wall Plates ____ _____________ 8. Garbage Disposals ____ _____________ 9. Doors Must Latch/Screws ____ _____________ 10. Range Hood Exhaust Fans ____ _____________

11. Vacuum All Mouse Dropping ____ _____________ 12. Water Leaks ____ _____________ 13. Missing Knobs ____ _____________ 14. Tears in Screens ____ ____________ 15. Missing Screens ____ _____________ 16. Bifold Doors including pins ____ _____________ 17. Apartment Doors Swing Shut properly ____ _____________ 18. Patio Rails ____ _____________ 19. Spinkler Heads no paint ____ _____________ 20. Vertical Blinds Operable (if applicable) ____ _____________ 21. Bathroom Heater ____ _____________ 22. HVAC Units ____ _____________ 23. Outlet Cover Plates ____ _____________ 24. Refrigerator Gasket ____ _____________ 25. Stove Gasket ____ _____________

HALLWAYS REAC PUNCH OUT

Hallways __________________________ Work Checked By: ____________________________________ Date: _____________ Work Completed By: ___________________________________ Date: _____________ Work Requested Okay/Repairs Done 1. Electrical Panel Spacers ____ _____________ 2. Exit Lights ____ _____________ 3. Stairway Doors Swing Shut Properly ____ _____________ 4. Trash Chutes ____ _____________ (Door close on its own) 5. Fire Extinguishers ____ _____________ (Mounted & Date Inspected) 6. Fire Pull Stations ____ _____________ 7. Fire Alarms Flashers (Secure to wall & all screws in place) ____ _____________ 8. Windows ____ _____________ (Make sure they are not fogged up) 9. Glass on stairway doors ____ _____________ (Make sure they are not cracked) 10. Hallway Rails Secured ____ _____________ 11. Check Outlets ____ _____________ 12. Ceiling Tiles ____ _____________ (No Stains & Not Damaged) 13. Hallway Light Fixture _____ ____________ (Secure & Damage Free)

Final REAC ChecklistFinal REAC ChecklistRemember this is due to Jamal no less than 3 days prior to inspectionRemember this is due to Jamal no less than 3 days prior to inspection

REAC Requirements and Standards are REAC Requirements and Standards are subject to change subject to change

Web Links for Additional ResourcesWeb Links for Additional Resources

Real Estate Assessment Center (REAC)Real Estate Assessment Center (REAC)

www.fhasecure.gov/offices/reac/  

HUD Physical Assessment Subsystem (PASS)HUD Physical Assessment Subsystem (PASS) www.hud.gov/offices/reac/faqs/pass_faqs.cfm 

Edgewood Management Corporation IntranetEdgewood Management Corporation Intranet

www.emcnet.biz 

Thank you for joining us Thank you for joining us during the presentation of during the presentation of

Passing REACPassing REAC

This presentation was provided as an This presentation was provided as an assistance tool and does not list all assistance tool and does not list all

items pertinent to a REAC Inspectionitems pertinent to a REAC Inspection