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Federal Register / Vol. 86, No. 8 / Wednesday, January 13, 2021 / Proposed Rules
5 Significant improvement.
Significant improvement in the projects overall score refers to an increase in a score for the owner or PHA such that the new score crosses an administratively significant threshold.
6 Reinspection. If HUD determines that a reinspection is appropriate, it will arrange for a complete reinspection of the projects in question, not just the deficiencies previously identified. The reinspection will constitute the final inspection for the project, and HUD will issue a new inspection report the final inspection report.
7 Deficiencies. If any of the previously identified SHS deficiencies that the owner certified were corrected, remedied, or acted upon to abate are found during the reinspection not to have been corrected, remedied, or acted upon to abate, the score in the final inspection report will reflect a point deduction of triple the value of the original deduction, up to the maximum possible points for the unit or area, and the owner must reimburse HUD for the cost of the reinspection.
e Independent HUD review. Under certain circumstances, HUD may find it appropriate absent a PHA request for technical review to review the results of an inspection which are anomalous or have an incorrect result due to facts and circumstances affecting the inspected property which are not reflected in the inspection or reflected inappropriately in the inspection. These circumstances include, but are not necessarily limited to, inconsistencies between local code requirements and the inspection standards in paragraph a; conditions which are permitted by variance or license or which are preexisting physical features non-conformities and are inconsistent with the inspection standards in paragraph a; or cases where the owner has been scored for elements e.g., roads, sidewalks, mail boxes, resident owned appliances, etc.
that it does not own and is not responsible for maintaining.
f Responsibility for the cost of a new inspection. If a new inspection is undertaken by the inspecting party and the new inspection score results in a significant improvement in the propertys overall score, then the entity responsible for the inspection shall bear the expense of the new inspection. If no significant improvement occurs, then the owner or PHA responsible for the property must bear the expense of the new inspection. The inspection cost of a new inspection, if paid by the owner, is not a valid project operating expense.
The new inspection score will be considered the final score.

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g Issuance of final score and publication of score. 1 The score of the property is the final score if the owner or PHA files no request for technical review, as provided in paragraph d of this section, or for other adjustment of the physical condition score, as provided in paragraph c of this section. If the owner or PHA files a request for technical review or score adjustments in accordance with paragraphs c and d of this section, the final inspection score is the score issued by HUD after any adjustments are determined necessary and made by HUD at the conclusion of these processes.
2 HUD will make public the final scores of the owners through posting on HUDs internet site, or other appropriate means.
h Responsibility to notify residents of inspection; and availability of documents to residents1 Notification to residents. An owner must notify its residents of any planned inspections of their units or the housing development generally.
2 Availability of documents for review. i Once a final score has been issued the owner must make the physical inspection report and all related documents available to residents during regular business hours upon reasonable request for review and copying. Related documents include the owners survey plan, plan of correction, certification, and related correspondence.
ii Once the owners final inspection score is issued and published, the owner must make any additional information, such as the results of any reinspection, appeal requests, available for review and copying by its residents upon reasonable request during regular business hours.
iii The owner must maintain the documents related to the inspection of the property, as described paragraphs i and ii above, for review by residents for a period of 60 days from the date of submission to the owner of the inspection score for the property in which the residents reside.
3 The owner must post a notice to the residents in the owners management office and on any bulletin boards in all common areas that advises residents of the availability of the materials described in this section. The notice should include, where applicable, the name, address, and telephone number of the HUD Project Manager.
4 Residents are encouraged to comment on this information provided by the owner and submit any comments directly to the applicable HUD Field
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Office or responsible entity. Should residents discover the owner provided HUD with a false certification during the review they are encouraged to notify the applicable HUD Field Office where appropriate inquiry and action will be taken.
i Administrative review of properties. The file of a property that receives a score of 30 points or less on its inspection will be referred to HUDs Departmental Enforcement Center DEC
for evaluation.
1 Notification to owner of submission of property file to the DEC.
The Department will provide for notification to the owner that the file on the owners property is being submitted to the DEC for evaluation. The notification will be provided at the time the REAC issues the inspection report to the owner or at such other time as a referral occurs.
2 Evaluation of the property. During the evaluation period, the DEC will perform an analysis of the property, which may include input from tenants, HUD officials, elected officials, and others as may be appropriate. Although program offices will assist with the evaluation, the DEC will have primary responsibility for the conclusion of the evaluation of the property after taking into consideration the input of interested parties as described in this paragraph h2. The DECs evaluation may include a site visit to the owners property.
3 Continuing responsibilities of Housing Program Offices and Mortgagee. During the period of DEC
evaluation, HUDs Housing offices continue to be responsible for routine asset management tasks on properties and all servicing actions e.g., rent increase decisions, releases from reserve account approvals. In addition, during this period of evaluation, the mortgagee shall continue to carry out its duties and responsibilities with respect to the mortgage.
4 Enforcement action. Except as otherwise provided by statute, if, based on the DECs evaluation and in consultation with Housing, the DEC
determines that enforcement actions are appropriate, it may take those actions for which the DEC has delegated authority and/or make recommendations to Housing with respect to resolving identified physical deficiencies and owner noncompliance.
j No limitation on existing enforcement authority. The administrative process provided in this section does not prohibit HUD, to take whatever action may be necessary when necessary notwithstanding the commencement of this process, as
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