HUD Notice 2018-08

Servicing of Projects That Do Not Meet HUD’s Physical Condition Standards and Inspection Requirements (PCS&IR) or Fail to Certify That Exigent Health and Safety (EH&S) Deficiencies Have Been Resolved as Required

October 29, 2018

This Notice provides guidance to properties where the REAC inspection resulted in a score below 60, and/or a project owner fails to respond/certify within 3 business days after an inspection identified EHS deficiencies.  The notice highlights corrective actions which may include a Notice of Default as well as the placement of flags in the Active Partners Performance System (APPS).  It further provides guidance for addressing projects with unsatisfactory physical conditions, as evidenced by repeated low REAC scores, significant tenant complaints, local code violations, staff site visits or other methods.  The notice is effective immediately and applies to projects whose physical inspection report was released by HUD on or after May 5, 2017. 

Click HERE to read the Notice in full.