REAC. Few things send a shiver down a HUD property manager's spine like that little acronym.
REAC - Real Estate Assessment Center. Or, as I like to think of it:
RUN, EMAIL AND CRY
RUN: Send notices, convince your tenants to untie emergency cords, get supplies for needed touch-ups, etc.
EMAIL: your Regional Manager, with a CC: to Tammy, Deb, Pam, and Ernie (ealbert@ehmchm.org) so that we can help you prepare and schedule your pre-REAC inspection.
AND CRY: In fairness, not a necessary part of the preparation process, but REAC does cause more than its fair share of anxiety.
The sad thing is that while regulatory inspections are pretty much always going to be stressful, the REAC inspection doesn't need to be - and shouldn't be - such an out-and-out panic. REAC should be on your mind every day: Every service call, every contractor visit, every apartment inspection and every unit prep should include some level of REAC work.
When repairs are made, "good enough" should be "good enough for REAC." Remember, HUD can stop by at any time and ask to tour your site. While not everyone has the eyes of a REAC inspector, you should always maintain your site to a level where you'd be comfortable with a HUD inspection that day.
Those of us in the Administrative role tend to think of REAC as largely a maintenance issue - myself included. In truth, though, the Administrators and Regional Managers, as well as other administrative staff, have a significant role to play in ensuring that the REAC inspection goes smoothly.
Wednesday, May 22, 2013
Ch-Ch-Ch-Changes
OK, so now I feel fairly old, since many of you probably aren't old enough to know the David Bowie song referenced in the title of this post...
But I digress.
HUD has recently announced a significant development - they're changing the way they do business in a way that will greatly impact us. In short, they are dramatically reducing the number of offices they have:
So why the change? Well, as HUD detailed in its 4/24/2013 media release:
Some of the things that you can do to prepare are:
Plan for Success:
When you prepare anything to be submitted to HUD, remember that the person reviewing it may not be familiar with your site. Try and include information that may head off questions, but don't include so much that the reviewer needs to sort through it all to get to what's needed.
Make your submissions easy to review. Submit organized packets, with tabbed dividers, a table of contents, cover letter, etc., as appropriate. Include any relevant invoices, documentation, etc. Avoid subjective comments, and make sure your justifications are simple and clear.
In short, provide just enough to fully cover what's needed, and make sure your submission is easy to navigate.
Read relevant instructions and guidebooks to ensure you are on target, and make sure to check HUDClips to ensure you are using the most recent forms. Be sure to contact your Regional Manager and/or other relevant staff for assistance where needed.
Submit items EARLY.
Make sure that budgets, Reserve Requests, Contract Renewals, etc. are done in plenty of time for internal review and submission to JeffCo / HUD.
Know what's coming.
Read the notices and stay up-to-date on coming changes. Sign up for the HUDBlast (Ross Business Development) and the HUD RHIIP Listserv mailing lists. And check this blog; we'll post developments as we become aware of them.
Keep Breathing.
Air goes in, air goes out. All is well. Yes, this is a significant change, and any change is stressful. This is uncharted territory, and there will be bumps in the road, no doubt. But it isn't the end of the world, and worrying about it isn't going to stop if from happening. If we keep informed, and do what we can to prepare for the change, we stand the best chance of weathering it with the least amount of stress.
But I digress.
HUD has recently announced a significant development - they're changing the way they do business in a way that will greatly impact us. In short, they are dramatically reducing the number of offices they have:
Specifically, the Office of Multifamily Housing will streamline its organizational structure by consolidating 6 Headquarters business offices into 4 offices and consolidating its field structure of 17 Hubs to 5 Hub offices and 5 satellite offices reporting to the Hubs. The other 7 Hubs and 34 program centers will be consolidated into the remaining 10 offices (5 Hubs and 5 satellite offices). The 2 existing property disposition centers will be consolidated into one. Affected offices that will be consolidated include:
Hartford CT, Manchester NH, Providence RI, Newark NJ, Buffalo NY, Philadelphia PA, Washington DC (field office only), Baltimore MD, Pittsburgh PA, Richmond VA, Charleston WV, Birmingham AL, Miami FL, Louisville KY, Jackson MS, Greensboro NC, San Juan PR, Columbia SC, Knoxville TN, Nashville TN, Indianapolis IN, Minneapolis MN, Cleveland OH, Milwaukee WI, Little Rock AK, New Orleans LA, Albuquerque NM, Oklahoma City OK, Houston TX, San Antonio TX, Des Moines IA, St. Louis MO, Omaha NE, Phoenix AZ, Los Angeles CA, Honolulu HI, Las Vegas NV, Anchorage AK, and Portland OR.The big impact, for us, is the scaledown of HUD's 50 Multifamily offices to a total of only 10 nationwide. HUD cites the need to update an outdated field structure, streamline operations, and eliminate unneeded and underused positions. While HUD will be maintaining at least one office per state, it does not appear as though Multifamily offices will remain in each state. The process is slated to begin this fall, and be completed by the end of FY 2016.
So why the change? Well, as HUD detailed in its 4/24/2013 media release:
“The current organizational model for HUD is not sustainable from a financial and a service delivery point of view,” said Maurice Jones, HUD’s Deputy Secretary. “We are reviewing every aspect of our operation to determine if we have the right people in the right places and we're determining where we can be even more efficient, to get the most value out of our limited resources. We’re in a different budget environment and we’re at a point where we must make some extremely tough choices. That being said, we certainly understand that this type of change can be challenging for the agency’s employees and we are committed to moving forward on the plan in a way that is sensitive to the needs and concerns of HUD’s staff."Reducing the cost of operations and the associated burden on the taxpayer is something that I think we can all agree is desirable. However, for those of us working in the field, the idea of losing our local offices, who know our properties and the people who manage them, is less so. There is no doubt that things will change significantly from what we are used to. Whether that change is for the better remains to be seen.
Some of the things that you can do to prepare are:
Plan for Success:
When you prepare anything to be submitted to HUD, remember that the person reviewing it may not be familiar with your site. Try and include information that may head off questions, but don't include so much that the reviewer needs to sort through it all to get to what's needed.
Make your submissions easy to review. Submit organized packets, with tabbed dividers, a table of contents, cover letter, etc., as appropriate. Include any relevant invoices, documentation, etc. Avoid subjective comments, and make sure your justifications are simple and clear.
In short, provide just enough to fully cover what's needed, and make sure your submission is easy to navigate.
Read relevant instructions and guidebooks to ensure you are on target, and make sure to check HUDClips to ensure you are using the most recent forms. Be sure to contact your Regional Manager and/or other relevant staff for assistance where needed.
Submit items EARLY.
Make sure that budgets, Reserve Requests, Contract Renewals, etc. are done in plenty of time for internal review and submission to JeffCo / HUD.
Know what's coming.
Read the notices and stay up-to-date on coming changes. Sign up for the HUDBlast (Ross Business Development) and the HUD RHIIP Listserv mailing lists. And check this blog; we'll post developments as we become aware of them.
Keep Breathing.
Air goes in, air goes out. All is well. Yes, this is a significant change, and any change is stressful. This is uncharted territory, and there will be bumps in the road, no doubt. But it isn't the end of the world, and worrying about it isn't going to stop if from happening. If we keep informed, and do what we can to prepare for the change, we stand the best chance of weathering it with the least amount of stress.
Relevant HUD Notices:
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