A notice Docket No. FR-6086-N-07 in the Federal Register announced the extension of the date for Community Planning and Development (CPD) programs to comply with NSPIRE.
HOME, HTF, HOPWA, ESG, and CoC programs have until October 1, 2024, to comply with the new inspection standards. The previous deadline was October 1, 2023.
HUD says it is taking this action “to allow jurisdictions, participants, and grantees additional time to incorporate HUD’s NSPIRE standards specific to their own programs and the flexibility to transition to NSPIRE under their own timelines.”
Some background and details on NSPIRE for HUD CPD Programs
The NSPIRE final rule included amendments to 24 CFR parts 92, 93, 574, 576, and 578 for CPDs to conform their various inspection requirements to NSPIRE.
To fully comply with NSPIRE, HOME-participating jurisdictions and HTF grantees must develop rehabilitation and ongoing property standards policies and procedures to address specific deficiencies that will be listed in a forthcoming Federal Register publication. These deficiencies must be corrected before HOME or HTF project completion or during the period of affordability for occupied units.
Does this include Homeownership Programs?
The amendments for HOME and HTF require participating jurisdictions to develop property standards that apply the requirements in 24 CFR 5.703 to rental or homeownership projects involving rehabilitation, ongoing inspections of HOME- and HTF-assisted rental housing during the period of affordability, and acquisition of standard housing for homeownership. Participating Jurisdictions will have to use the next year to determine how NSPIRE will fit into their existing standards, which will mean updating forms, and procedures and training administrative staff on the new standards.
Additional Deficiencies for HOME and HTF
This notice also indicates that HUD will soon release an additional subset of NSPIRE standards for HOME and HTF programs, meaning that these programs will also need to meet additional standards. HUD REAC promises to release this new subset of standards in the coming months.
Advice from HUD on Implementing NSPIRE for CPD Programs
HUD points out that while the NSPIRE final rule applies to HOME of HTF funds committed on or after October 1, 2023, participating jurisdictions and grantees are not required to fully implement changes in the NSPIRE rule until October 1, 2024.
This time should be used by participating jurisdictions and grantees to update property standard regulatory citations and requirements in written agreement templates with State recipients, sub-recipients, and project owners.
HTF grantees are advised to review the deficiencies established by NSPIRE and compare them to their existing rehabilitation and property standards, inspection procedures, and checklists.
HUD also reminds CoC, ESG, and HOPWA recipients who administer housing choice vouchers or project-based vouchers that they are permitted to adopt NSPIRE standards beginning October 1, 2023.
NSPIRE is genuinely designed for the inspection of multifamily assets and other rental units. Converting the standards for use on single-family homes and other structures may prove to be cumbersome. US Housing Consultants is well-prepared to help HOME and HTF programs update their policies and procedures to include NSPIRE standards during the year-long delay in full implementation. We are also preparing to offer specific HOME/HTF training once the new subset of NSPIRE standards is published in the Federal Register.