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The Consolidated Appropriations Act of 2016 directed HUD to implement a single inspection protocol for public housing and voucher units. In addition, Section 38(c) 1 of the Economic Growth Regulatory Relief and Consumer Protection Act requires that program inspections apply existing physical inspection standards for projects assisted under Section 8 of the 1937 Act to small and predominantly rural Public Housing Agencies. Accordingly, this proposed rule would revise HUD's physical inspection standards for assisted and insured housing programs. Under the proposed rule, a single inspection standard would be adopted in place of the current differing standards that exist across some programs. HUD believes the inspection standard alignment would improve HUD’s oversight while ensuring tenants live in decent, safe, and sanitary housing that is in good repair.

Statement of Need:

The Consolidated Appropriations Act of 2016 directed HUD to implement a single inspection protocol for public housing and voucher units. Section 38(c) 1 of the Economic Growth Regulatory Relief and Consumer Protection Act requires that program inspections apply existing physical inspection standards for projects assisted under Section 8 of the 1937 Act to small and predominantly rural Public Housing Agencies. HUD’s inspection model is outdated and could be improved to decrease costs while advancing HUDs’ mission of providing decent, safe, and sanitary housing.

Summary of the Legal Basis:

Through this rule, HUD would revise HUD’s physical inspection standards for assisted and insured housing programs and create a single inspection standard which would be adopted in place of the current differing standards that exist across some programs.

Alternatives:

None

Anticipated Costs and Benefits:

At this pre-rule stage, HUD expects that the neither the total economic costs nor the total efficiency gains will exceed $100 million.

Risks:

Transitioning inspection procedures to a new system may cause confusion and logistical difficulty during the adjustment period. Increasing inspection standards may discourage program participants or potential program participants from participating. Use of new technology may create transition costs as new software is developed and fine-tuned.