AAHRA/HUD 2007 Spring Workshop (Preparing for a REAC Physical Inspection) May 8 - 9, 2007

1. AAHRA/HUD 2007 Spring Workshop (Preparing for a REAC Physical Inspection) May 8 - 9, 2007

2. Training Agenda TUESDAY, MAY 8TH: 9:00 am – Welcome / Go over this thing 9:05 am – How to prepare for the inevitable 10:15 am – BREAK (10 Minutes) 10:25 am – “Inspection Day” Video 10:55 am – How to prepare … (Continued) 11:30 am – Lunch on your own (1-1/2 Hours)

3. Training Agenda TUESDAY, MAY 8TH: 1:00 pm – Welcome / Go over this thing 1:05 pm – How to prepare for the inevitable 2:30 pm – BREAK (30 Minutes) 3:00 pm – “Inspection Day” Video 3:30 pm – How to prepare … (Continued) 4:30 pm – Adjourn

4. Training Agenda WEDNESDAY, MAY 9TH: 8:30 am – Welcome / Go over this thing 8:35 am – How to prepare for the inevitable 9:45 am – BREAK (15 Minutes) 10:00 am – “Inspection Day” Video 10:30 am – How to prepare … (Continued) 11:30 am – Adjourn

5. Ground Rules RULE NUMBER 1: “Don’t shoot the messenger!” (Me.) RULE NUMBER 2: Ask questions! Remember, there are no dumb questions, just dumb answers. (Which I’ll try my best not to give.) RULE NUMBER 3: When in doubt, refer to RULE NUMBER 1 above.

6. Reminder! =

7. Questions to be Answered - How do I properly prepare for a REAC inspection? - Where should I focus my resources? - What is my role during the inspection?

8. Questions to be Answered (Continued) - How will certain things, like smoke detectors, be checked? (Will the inspector use canned smoke or just push the button?) - What kind of questions should I ask the inspector before he leaves my site so that I can better understand what went wrong?

9. Questions to be Answered (Continued) - How do I appeal a finding, and what kinds of documentation do I need to back up my appeal? - How do I educate my residents during their annual inspections in order to prevent findings during the REAC inspection? - Is there a checklist of standards I can use before the inspection to help me make sure everything is up to par?

10. HQS VS. UPCS, SCORING, APPEALS, ETC.

11. Housing Agency Inspects to Standard Field Office Quality Assurance Field Office HUD Headquarters Housing Agency Inspects to Standard PIH-REAC Quality Assurance The Process Regulatory requirement that housing providers must inspect their units/properties to a HUD defined standard. OLD: (HQS) • Paper based • Pass/Fail • Subjective • Inconsistent NEW: (UPCS) • Electronic • Point Deductions • Objective • More Consistent

12. 44 Elements 41 Elements The Standard “Decent, safe, sanitary and in good repair.” MEASUREMENT 1978 - 1998 Housing Quality Standards (HQS) 1998 - Future Uniform Physical Condition Standards (UPCS)

13. Insulation Curtains and Shades Water Saver Devices HQS vs. UPCS

14. Dwelling Units Building LEVEL 3 Dwelling Units Living Room Ceiling Holes/Missing Tiles/Panels

18. Item: Ceiling Condition HQS: • Uses “subjective” measurements such as “serious”, “large”, “significant” and “severe” without specifying a quantifiable amount. (Makes consistent ratings more difficult to obtain amongst different inspectors.) • If just one item is marked “Fail”, then the entire unit fails the inspection. UPCS: • Uses “objective” measurements such as “larger than 8-1/2 x 11” or “more than 3 tiles”. (Makes consistent ratings more obtainable amongst different inspectors.) • If an item receives a “Level 3” rating, then the score for that unit will be reduced from its potential maximum points.

19. Item: Ceiling Condition HQS Guidance (paper) UPCS Guidance (electronic) *Covered under either: “Bulging/Buckling”, “Peeling/Needs Paint” or “Water Stains/Water Damage/Mold/Mildew”.

20. Building Systems Building LEVEL 3 Building Systems Domestic Water Misaligned Chimney/Ventilation System

21. Item: Hot Water Heater HQS: • If just one item is marked “Fail”, then the entire unit fails the inspection. UPCS: • If an item receives a “Level 3” rating, then the score for that building will be reduced from its potential maximum points.

22. Item: Hot Water Heater HQS Guidance (paper) UPCS Guidance (electronic) *Covered under: “Missing Pressure Relief Valve”.

23. Dwelling Units Building LEVEL 3 Dwelling Units Smoke Detector Missing/Inoperable

24. Item: Smoke Detectors HQS: • If this item is marked “Fail”, then the entire unit fails the inspection. UPCS: • If this item receives a “Level 3” rating, an “Exigent Health & Safety” notation is made but no points are deducted from the overall score.

25. Item: Smoke Detectors HQS Guidance (paper) UPCS Guidance (electronic)

26. DCD 2.3 INSPECTABLE DEFECTS

27. Top 20 Deficiencies 1. HVAC – the water heater Pressure Relief Valve discharge tube extends to within 18 inches of the floor; 2. Misaligned Chimney– the vent stack on gas operated water heaters or furnaces are properly aligned; 3. Missing HVAC Covers – there are covers on all baseboard heaters; 4. Access to the Electrical Panel – access to electrical panels is not blocked by furniture or other items; 5. Missing Covers – electrical panels have interior covers (aside from the panel lid box itself) to prevent exposure from the wire connections; 6. Open Breaker Ports – Open breaker ports are covered; 7. Doors Damaged Seals – the factory-installed seals on Exterior Doors, such as building or unit doors, are in place and undamaged; 8. Doors Damaged Hardware – Exterior door hardware locks or latches properly and Fire Doors function as designed; 9. Security Doors – security doors do not have dual-side key locks; 10. Kitchen – Damaged Stoves/Ovens – stove burners are working;

28. Top 20 Deficiencies (Continued) 11. Plumbing– pipes and faucets are not leaking, and areas around any leaks are cleaned up and repaired; 12. Damaged Sinks/Showers– any hardware problems are repaired, diverters are working, drains have stoppers, Hot or Cold water handles are in place and working; 13. Clothes Dryers- are properly vented to the outside from units or laundry rooms; 14. Storm Water Sewers- are not clogged with trash or leaves; 15. Sanitary Sewer Damaged Covers–caps located in the grass on the exterior of the building that have been damaged by a lawn mower are cleaned out. Replace and mark the areas to prevent further damage; 16. Trash Chutes– hardware is in place and the chute door closes properly; 17. Trash Receptacles- are not overflowing and are adequate in size for the property; 18. Auxiliary Lighting– the back up lighting works even when the test light does not work; 19. Leaking Domestic Water– there are no leaks in the domestic water supply, including the hose bibs located on the exterior of the building; 20. Switchplate Covers– are not cracked or broken.

29. Questions to be Answered - How do I properly prepare for a REAC inspection? A: Pray. - Where should I focus my resources? A: You have resources?!? - What is my role during the inspection? A: Refer to the first question above.

30. The Goal Assign a score to the overall property condition based on the datacollected by the inspector • Measure physical condition • Objective & consistent • Accommodates all property types & configurations

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

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

33. Scoring Protocol The weights were assigned as part of a consensus process: - Industry stakeholder input • Public Housing Authorities • Multifamily Housing (Owners / Agents) • Trade groups • PHA industry groups - HUD information - Trade professionals’ experience

34. Building Systems Building Exterior Site 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 15% 20% 15% 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 Areas&Items 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 35% 15%

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

36. Wgt 15% 15% 20% 35% 15% 100% Property Physical Condition Inspection Areas Health & Safety Deductions Site Building Whole Point Deductions From Final Score Common Areas Building Exterior Dwelling Units Building Systems Wgt 15% 15% 20% 35% 15% 100% Wgt 18% 18% 23% 41% 0% 100% No Two PropertiesAre Alike (For example, if there are no Common Areas on a property, the other inspection areas become more important)

37. Scoring Methodology Scores calculated based on: Area Pointsx Item Weight xCriticalityx Severity Ranges are: Area Points Site = 15 Bldg Systems = 20 Dwelling Units = 35 Bldg Ext = 15 Common Areas = 15 Item Weight(Examples) Smoke Detector = 0 Missing Toilet = 10 Damaged Ceiling = 4.5 Misalinged 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

38. Scoring Methodology (Continued)

39. Scoring Methodology (Continued)

40. (Area Points x Item Weight x Criticality x Severity / # Units) 35 x 0.045x 3.0 x 1.0 = 4.725 / 24 = 0.20 (Item Weight x Criticality x Severity) 4.5x 3.0 x 1.0 = 13.5% Point Deduction Scoring Dwelling Unit: Living Room, Ceiling - Holes/Missing . . . - Level 3 *Assuming 250 Units (24 Sample Units)

41. (Item Weight x Criticality x Severity) 15.5x 5.0 x 1.0 = 77.5% (Area Points Item Weight x Criticality x Severity / # Buildings) 20 x 0.155x 5.0 x 1.0 = 15.5 / 5 = 3.10 Point Deduction Scoring Building Systems: Domestic Water, Misaligned Ventilation System - Level 3 * EH&S TICKET ITEM! * *Assuming 5 Buildings

42. Scoring Dwelling Units: Smoke Detector, Missing/Inoperable - Level 3 * EH&S TICKET ITEM! * (Item Weight x Criticality x Severity) 0x 5.0 x 1.0 = 0 no point deduction *Assuming 15 Units (10 Sample Units) (Area Points x Item Weight x Criticality x Severity / # Units) 35 x 0 x 5.0 x 1.0 = 0 / 10 =no point deduction

43. Questions to be Answered - How will certain things, like smoke detectors, be checked? (Will the inspector use canned smoke or just push the button?) A: Push the button. (No cigarettes please.) - What kind of questions should I ask the inspector before he leaves my site so that I can better understand what went wrong? A: Don’t let them leave! (Lock them up.)

44. Technical Reviews You can appeal a physical score if you believe the inspection was not conducted in accordance with the Public and Indian Housing Real Estate Assessment Center (PIH-REAC) Uniform Physical Condition Standards (UPCS) inspection protocol or feel that certain inspection data may have been recorded in error that, if corrected, will result in an improvement in the property's overall score What qualifies for a Technical Review? - Building Data Errors - Unit Count Errors - Non-Existent Deficiency Errors What does NOT qualify for a Technical Review? - Disagreements over the severity of a defect - Deficiencies that were repaired or corrected

45. Technical Reviews (Continued) Timeline for submittal: - Public Housing = 15 days - Multifamily Housing = 30 days What to include: - All property identification information - All deficiency location information * OBJECTIVELY VERIFIABLE! * How to document: - Written Material - Photographs - Video

46. Technical Reviews (Continued) Where to send your request: Attn: PASS Technical Reviews HUD/PIH/REAC 550 12th Street SW, Suite 100 Washington, DC 20410 What can happen: - Request Denied - New Inspection Scheduled - Correct the Inspection Report (Adjust score)

47. Database Adjustments You can appeal a physical score if you believe the inspection was not conducted in accordance with … blah … blah … blah … (Same as the previous one.) What qualifies for a Database Adjustment? - Local conditions and exceptions - Ownership issues - Adverse conditions beyond the owner’s control - Modernization work in progress What does NOT qualify for a Database Adjustment? - Deficiencies that were repaired or corrected - Deficiencies caused by residents - Items covered by the Technical Review process

48. Database Adjustments (Continued) Timeline for submittal: - Public Housing = 15 days - Multifamily Housing = 45 days What to include: - All property identification information - All deficiency location information * OBJECTIVELY VERIFIABLE! * How to document: - Written Material - Photographs - Video

49. Database Adjustments (Continued) Where to send your request: Attn: PASS Database Adjustments HUD/PIH/REAC 550 12th Street SW, Suite 100 Washington, DC 20410 What can happen: - Request Denied - New Inspection Scheduled - Correct the Inspection Report (Adjust score)

50. Questions to be Answered (Continued) - How do I appeal a finding, and what kinds of documentation do I need to back up my appeal? A: Ha, ha ha. That’s a good one! (Ever hear of “War and Peace”?) - How do I educate my residents during their annual inspections in order to prevent findings during the REAC inspection? A: It’s easier to just have them move out. - Is there a checklist of standards I can use before the inspection to help me make sure everything is up to par? A: The “Top 20” list is a good place to start.