[Federal Register Volume 87, Number 117 (Friday, June 17, 2022)]
[Proposed Rules]
[Pages 36426-36430]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-13251]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Parts 5, 92, 93, 200, 574, 576, 578, 880, 882, 884, 886, 
888, 902, 982, 983 and 985

[Docket Nos. 6086-N-02]
RIN 2577-AD05 and 2577-AD06


Request for Comments: National Standards for the Physical 
Inspection of Real Estate and Associated Protocols

AGENCY: Office of the Assistant Secretary for Housing--Federal Housing 
Commissioner, Office of the Assistant Secretary for Community Planning 
and Development, Office of the Assistant Secretary for Public and 
Indian Housing, HUD.

ACTION: Request for public comment.

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SUMMARY: This Request for public comment serves as a complementary 
document to the Economic Growth Regulatory Relief and Consumer 
Protection Act: Implementation of National Standards for the Physical 
Inspection of Real Estate (NSPIRE) proposed rule. The proposed rule 
provided that HUD would publish in the Federal Register a set of NSPIRE 
inspection standards to consolidate and align housing quality 
requirements and associated inspection standards across programs. After 
developing and testing draft standards, HUD now seeks public review and 
comment on the proposed NSPIRE physical inspection standards which 
would accompany HUD's final rule. Additionally, HUD is proposing 
changes to the list of life-threatening conditions and incorporating 
them into the NSPIRE inspection standards in place of codifying the 
list which HUD proposed in the ``Housing Opportunity Through 
Modernization Act (HOTMA) of 2016--Housing Choice Voucher (HCV) and 
Project Based Voucher Implementation: Additional Streamlining Changes'' 
proposed rule. HUD will consider comments received in response to this 
request before publishing a final notice of standards in the Federal 
Register.

DATES: Comment Due Date: August 1, 2022.

ADDRESSES: HUD invites interested persons to submit comments to the 
Office of the General Counsel, Regulations Division, Department of 
Housing and Urban Development, 451 7th Street SW, Room 10276, 
Washington, DC 20410-0500. Communications should refer to the above 
docket number and title. There are two methods for submitting public 
comments.
    1. Electronic Submission of Comments. Comments may be submitted 
electronically through the Federal eRulemaking Portal at https://www.regulations.gov/. HUD strongly encourages commenters to submit 
comments electronically. Electronic submission of comments allows the 
commenter maximum time to prepare and submit a comment, ensures timely 
receipt by HUD, and enables HUD to make comments immediately available 
to the public. Comments submitted electronically through the website 
can be viewed by other commenters and interested members of the public.

[[Page 36427]]

Commenters should follow instructions provided on that site to submit 
comments electronically.
    2. Submission of Comments by Mail. Comments may also be submitted 
by mail to the Regulations Division, Office of General Counsel, 
Department of Housing and Urban Development, 451 7th Street SW, Room 
10276, Washington, DC 20410-0500. Due to security measures at all 
Federal agencies, however, submission of comments by mail often results 
in delayed delivery. To ensure timely receipt, HUD recommends that 
comments be mailed at least 2 weeks in advance of the public comment 
deadline.

    Note: To receive consideration as public comments, comments must 
be submitted using one of the two methods specified above.

    No Facsimile Comments. Facsimile (fax) comments are not acceptable.
    Public Inspection of Comments. All comments and communications 
submitted to HUD will be available for public inspection and copying 
between 8 a.m. and 5 p.m., weekdays, at the above address. Due to 
security measures at HUD Headquarters, an advance appointment to review 
the public comments must be scheduled by calling the Regulations 
Division at 202-708-3055. This is not a toll-free number. Copies of all 
comments submitted are available for inspection and downloading at 
https://www.regulations.gov/.

FOR FURTHER INFORMATION CONTACT: Marcel M. Jemio, Real Estate 
Assessment Center, Office of Public and Indian Housing, Department of 
Housing and Urban Development, 550 12th Street SW, Suite 100, 
Washington, DC 20410-4000, telephone number 202-708-1112 (this is not a 
toll-free number). Persons with hearing or speech impairments may 
contact the numbers above via TTY by calling the Federal Relay Service 
at 800-877-8339 (this is a toll-free number).

SUPPLEMENTARY INFORMATION:

I. Current Standards and Programs

    There are currently two inspection models used across the majority 
of HUD housing programs: Housing Quality Standards (HQS), developed in 
the 1970s and applicable to housing assisted under the Housing Choice 
Voucher and Project Based Voucher program, which are currently found at 
24 CFR 982.401, and the Uniform Physical Condition Standards (UPCS) 
developed in the 1990s and applicable to the programs listed at 24 CFR 
5.701, which are currently found at 24 CFR 5.703 with the dictionary of 
individual UPCS deficiencies contained in a Federal Register notice.\1\ 
The unified NSPIRE standards would be used to evaluate compliance with 
HUD's expectations of housing quality across the distinct programs 
governed by the regulatory alignment offered in the proposed rule.
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    \1\ Available at: https://www.federalregister.gov/documents/2012/08/09/2012-19335/public-housing-assessment-system-phas-physical-condition-scoring-notice-and-revised-dictionary-of.
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II. NSPIRE Proposed Rule

    On January 13, 2021, HUD published a proposed rule ``Economic 
Growth Regulatory Relief and Consumer Protection Act: Implementation of 
National Standards for the Physical Inspection of Real Estate'' (86 FR 
2582) to implement one of NSPIRE's core objectives--the formal 
alignment of expectations of housing quality and consolidation of 
inspection standards across HUD programs.
    As outlined within the proposed rule, HUD intends to publish 
updates to these standards through future Federal Register notices at 
least once every three years with an opportunity for public comment. 
This would provide further opportunity for the public to examine 
proposed changes, provide pertinent comments, and suggest the inclusion 
of industry best practices. The three-year standards development cycle 
aligns with the cycle used by standards development organizations in 
the model building codes and life safety industries. A three-year 
review cycle would also allow HUD to be more responsive to the ever-
changing public and assisted housing portfolio and evolving needs in 
the field.

III. NSPIRE Standard Development and Background

    Throughout the development of NSPIRE, HUD has provided multiple 
avenues for industry and public input on the standards. In September 
2019, HUD began publishing draft NSPIRE standards on HUD's website. The 
original and subsequent versions of the standards represent input from 
industry stakeholders and the public via workshops, webinars, and 
feedback received through HUD's NSPIRE website.
    HUD's approach to standards development follows a defined set of 
core principles: people-centered design, a focus on efficiency, 
science-based rationales, continuous collaborative improvement, and 
streamlined operations. HUD's principles of standards development are 
designed to ensure that standards:
    <bullet> Are developed according to an evidence-based methodology 
that ensures reliability and defensibility;
    <bullet> Prioritize resident health, safety, and functionality of 
property features, ensuring that residents are living in habitable 
homes;
    <bullet> Promote iterative collaboration and feedback; and
    <bullet> Focus on streamlining inspections processes, ensuring that 
standards can be executed consistently across programs.
    For each inspection standard, the definition, location, deficiency, 
deficiency criteria, health and safety determination, and correction 
timeframe have been listed. Further, HUD believes that housing 
standards must focus on habitability and the health and safety of 
residents. Each proposed standard contains ``rationales,'' or the 
reason the requirement is necessary. Rationales describe the potential 
harm that may result from a given deficiency if left uncorrected. 
Generally, rationales include the health, safety, and/or major 
functional or habitability issue, and illustrate why detection and 
remediation of the deficiency is critical to housing quality.
    HUD will review the comments received on this request for comments, 
ongoing feedback received through the NSPIRE demonstration, and ongoing 
input from HUD partners, industry stakeholders, and the public for 
current and future development of the NSPIRE standards. HUD anticipates 
that future revisions to the standards may include such changes as:
    <bullet> Revisions to deficiency health and safety determinations 
or the associated time of repair;
    <bullet> Updated health and safety determinations, including pass/
fail determinations for the Housing Choice and Project-based Voucher 
programs; or
    <bullet> Removal or addition of deficiencies based on public input.

IV. HOTMA Voucher Proposed Rule

    Under the Housing Opportunity Through Modernization Act of 2016 
(HOTMA), as described in the preamble of the NSPIRE proposed rule, 
life-threatening deficiencies must be addressed within 24 hours and all 
other deficiencies within 30 days.\2\ Under HOTMA, Public Housing 
Authorities (PHAs) can allow families participating in the HCV and PBV 
programs to move into their unit prior to the unit passing the HQS, but 
only if there are no life-threatening conditions identified in the 
initial inspection.
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    \2\ Public Law 114-201, enacted July 29, 2016.

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[[Page 36428]]

    Consistent with HOTMA, HUD published through Federal Register 
Notice ``Housing Opportunity Through Modernization Act of 2016: 
Implementation of Various Section 8 Voucher Provisions'' (82 FR 5458) a 
list of life-threatening conditions (``HOTMA LT List'').
    In the proposed rule ``Housing Opportunity Through Modernization 
Act of 2016-Housing Choice Voucher (HCV) and Project-Based Voucher 
Implementation; Additional Streamlining Changes'' (85 FR 63664), HUD 
proposed to incorporate this list into 24 CFR 982.401. HUD received 
comments on this proposal and is reviewing and considering these 
comments.

V. Incorporation of HOTMA Life Threatening List (``HOTMA LT List'')

    In this request for comments, HUD proposes incorporating the HOTMA 
LT List into the NSPIRE standards and not in regulation and provides 
this list as Table 63 of the standards. HUD believes that this 
consolidation would be consistent with HUD's goal of consolidating 
standards. All other NSPIRE standards, once final, would apply for the 
HCV program, except where HCV and PBV Variant inspection standards 
apply.\3\ All comments on this request for comments, the HOTMA proposed 
rule, and the NSPIRE proposed rule will be considered before the HOTMA 
LT List is finalized either in regulation or in the NSPIRE standards. 
In these proposed standards, standards which are considered life-
threatening for purposes of the HCV and PBV programs are noted with a 
24-hour HCV Correction Timeframe. The HOTMA LT list will apply for all 
PHAs, and not just those choosing to implement the Non-Life-Threatening 
provision offered under HOTMA and PIH Notice 2017-20.
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    \3\ See the exceptions which HUD proposed at Sec.  
5.705(a)(3)(ii) of the NSPIRE proposed rule.
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VI. Major Changes From UPCS and HQS

    HUD welcomes and appreciates all comments on the standards detailed 
in this request for comments. HUD also seeks specific input on the 
following items that HUD considers to be material enhancements related 
to health and safety from UPCS and HQS to the NSPIRE standards.

Smoke Alarms

    Consistent with HUD's proposed rule, this proposed standard would 
incorporate prescriptive locations for the installation of smoke alarms 
to conform with National Fire Protection Association (NFPA) Standard 
72--National Fire Alarm and Signaling Code. Adoption of NFPA 72 would 
introduce new requirements for smoke alarms by requiring installation 
on each level and inside each sleeping area.

Carbon Monoxide Alarms

    This draft standard would incorporate statutory requirements 
enacted by Congress \4\ to conform with the 2018 International Fire 
Code (IFC) published by the International Code Council. The draft 
standard would establish deficiency criteria for installation of carbon 
monoxide alarms.
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    \4\ See Section 101, ``Carbon Monoxide Alarms or Detectors in 
Federally Insured Housing'' of Title I of Division Q, Financial 
Services Provisions and Intellectual Property, of the Consolidated 
Appropriations Act, 2021, Public Law 116-260, 134 Stat. 2162 (2020).
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Fire Labeled Doors

    This proposed standard would include deficiency criteria specific 
to these types of doors where present. The deficiencies would include 
function and operability criteria critical to these fire safety 
components where present in buildings.

Guardrails

    This proposed standard would include prescriptive deficiency 
criteria for guardrails where missing above elevated surfaces to 
protect from fall hazards along balconies, stairs, ramps, decks, 
rooftops, hallways, retaining walls, and other walking surfaces.

Handrails

    This proposed standard would include a deficiency with prescriptive 
dimensional criteria for handrails that are not functionally adequate 
and cannot reasonably be grasped by hand to provide stability or 
support when ascending or descending stairways.

Mold-Like Substance

    This proposed standard would include deficiencies based on discrete 
levels of observed conditions and a ventilation or dehumidification 
requirement for bathrooms to reduce conditions conducive to mold 
growth.

Potential Lead-Based Paint Hazards

    This proposed standard would include a deficiency that incorporates 
the HQS requirements for an enhanced visual assessment for deteriorated 
paint where there is a child under 6 years of age residing in the unit.

Structural System

    This proposed standard would include a deficiency that captures 
signs of serious structural collapse and may threaten the resident's 
safety.

HOTMA LT List

    As discussed above, these proposed standards would replace the 
HOTMA LT List and make changes to the List to align with NSPIRE. One 
condition in the HOTMA LT List not included in NSPIRE is ``any 
condition that poses a serious risk of electrocution or fire and poses 
an immediate life-threatening condition.'' Under NSPIRE, HUD has 
multiple electrical standards with deficiencies that comprehensively 
address fire and shock risks. Therefore, HUD believes that this general 
deficiency is not necessary where HUD provides more specific 
deficiencies which would encompass it.
    HUD is requesting comments on several proposed deficiencies not 
currently in the NSPIRE Standards that are currently included in the 
HOTMA LT List including space heaters and water leaking onto electrical 
devices.

VII. Request for Comment on Questions Related to Specific Deficiencies

    HUD seeks comment on all standards proposed in this document. 
Additionally, HUD seeks responses to the specific questions below 
regarding additional changes which HUD is considering but has not 
proposed in draft form in the standards associated with this request 
for comments.
    Question for Comment #1: HUD is considering amending the proposed 
``Mold-Like Substance Standard'' to include a Deficiency or Deficiency 
Criteria related to mold risk. This amended Deficiency would help 
identify sources of moisture conducive to potential mold or mold-like 
substances. The amended Deficiency would outline the required use of 
moisture meters and moisture levels and establish the threshold for 
such a Deficiency. The amended Deficiency would also recommend, but not 
require, the use of infrared cameras to detect moisture intrusion. HUD 
seeks input on this proposed requirement, the use of appropriate 
equipment, and what would be an appropriate correction timeframe.
    Question for Comment #2: As discussed in the NSPIRE proposed rule, 
HUD is considering adding the term ``safe'' to the regulations at 24 
CFR 5.703(d) addressing drinking water. This addition would cover 
situations where the public water supply system has identified drinking 
water contamination and notified customers of the hazard. This change 
would not require a new standard. The NSPIRE inspector would collect 
information from the property manager or owner on the following: (1)

[[Page 36429]]

any current local water alerts for the jurisdiction where the housing 
is located; and (2) the name of the public water supply system that 
serves the property. For the building information collection, the 
property manager or owner would advise if the property is known to be 
serviced by a lead service line. If this information is not known for 
the portion of the pipe on the property, the owner or manager would be 
asked to identify the water service point of entry into the building 
and the inspector would conduct a visual evaluation. Details on the 
process would be published in a subsequent notice. HUD seeks comment on 
the advisability of adding new requirements for the PHA submission of 
information performed in advance or as part of the physical inspection.
    Question for Comment #3: HUD previously requested public comment in 
the NSPIRE proposed rule regarding a new deficiency under the heating 
ventilation and air conditioning (HVAC) standard for the requirement of 
permanently installed heating sources. HUD recognizes there may be 
properties across HUD assisted housing located in perennially warm 
climates where a permanent heating source may not be necessary or 
required by local codes. HUD seeks input on these unique climates to 
better understand where these conditions may exist in HUD assisted 
properties.
    Question for Comment #4: HUD is considering amending the deficiency 
titled ``A permanently installed heating source is damaged, inoperable, 
missing, or not installed and the outside temperature is below 68 
degrees Fahrenheit'' to have two distinct severity levels. The proposed 
deficiency would be amended to require properties to be maintained at a 
minimum unit temperature of 64 degrees Fahrenheit. A new severe non-
life-threatening deficiency would be added for properties with observed 
unit temperatures between 64- and 67.9-degrees Fahrenheit. HUD seeks 
input on the advisability of creating two levels of severity for the 
minimum temperature deficiency.
    Question for Comment #5: HUD is considering amending the deficiency 
titled ``A permanently installed heating source is damaged, inoperable, 
missing, or not installed and the outside temperature is below 68 
degrees Fahrenheit'' in the HVAC standard to limit the application of 
this standard and deficiency to specific months of the year and 
specific climate zones. HUD recognizes the current deficiency may not 
capture unique climate differences across HUD assisted properties. HUD 
seeks input on the use of specific months or climate zones for the 
application of the minimum temperature deficiency.
    Question for Comment #6: HUD is considering amending the deficiency 
``A permanently installed heating source is damaged, inoperable, 
missing, or not installed and the outside temperature is below 68 
degrees Fahrenheit'' in the HVAC standard to include measurement by an 
ambient temperature thermometer provided by the inspector to determine 
whether the heating source is properly functioning. The amended 
deficiency would also outline inspection protocols required for using 
the thermometer. HUD seeks input on this proposed equipment requirement 
for the minimum temperature deficiency in the HVAC standard.
    Question for Comment #7: HUD previously requested public comments 
in the NSPIRE proposed rule regarding a new deficiency under the HVAC 
standard for the requirement of permanently installed heating sources. 
After reviewing public comments, HUD recognizes the need to define 
``permanently installed heating sources.'' HUD seeks specific input on 
defining this term.
    Question for Comment #8: HUD previously requested public comments 
in the NSPIRE proposed rule regarding a new deficiency under the HVAC 
standard for the requirement of permanently installed heating sources. 
HUD recognizes there may be extreme cold weather conditions when 
supplemental heating units may be needed to maintain a safe level of 
heat. HUD is considering amending the HVAC standard to create a new 
deficiency for the presence of unvented, fuel-burning space heaters due 
to the associated fire and carbon monoxide risk. HUD seeks input on 
this proposed deficiency for unvented, fuel-burning space heaters.
    Question for Comment #9: HUD is considering amending the 
``unprotected outlet is present within six feet of a water source'' 
proposed deficiency within the Electrical--Outlet and Switch Standard 
to explicitly allow using a receptable tester with a ground fault 
circuit interrupter (GFCI) test button or using the integral device 
tester during the inspection process. This amended Deficiency would 
specify the acceptable types of receptacle testers and could include 
acceptable industry standards for a receptable tester with a GFCI test 
button. An example of an acceptable industry tool standard would be 
Underwriters Lab Standard 1436-for Outlet Circuit Testers and Similar 
Indicating Devices. The amended deficiency would also add protocol 
details to the inspection process for the deficiency. HUD seeks input 
on this proposed tool specification requirement.
    Question for Comment #10: HUD is considering amending the 
Electrical--Conductor standard to include a new deficiency to address 
leaks onto or near electrical components in the built environment. HUD 
seeks input on deficiency criteria for this proposed deficiency.
    Question for Comment #11: HUD is considering amending the 
correction timeframes for standards and deficiencies categorized as 
``Severe Non-Life Threatening'' where a corrective action may not be 
technically feasible within 24 hours. The statutory repair timeframes 
required under HOTMA prevent changes to correction timeframes to 
properties in the HCV or PBV programs. The amendment HUD is considering 
would continue to require that the Health or Safety risk to the 
resident be removed within 24 hours, but the correction timeframe would 
be extended. HUD recognizes that not all severe conditions can be 
repaired within 24 hours as they may require building permits or 
engaging the services of an appropriate contractor. HUD seeks specific 
input on whether this proposed change in correction timeframes should 
be addressed within the standards or through an administrative process 
where HUD makes an adjustment within its database to reflect an 
extended timeframe of repair. HUD also seeks specific input on which 
standards and deficiencies would benefit from this proposed approach to 
corrections.
    Question for Comment #12: HUD is considering amending the 
Infestation Standard to create new deficiencies for extensive 
infestations for the pest deficiencies, which currently lack an 
extensive deficiency. The current deficiency criteria for extensive 
cockroach infestation have a specific threshold for the visual 
observation. The amended standard would include specific criteria with 
thresholds comparable to the existing extensive cockroach infestation 
deficiency. HUD seeks input on this proposed deficiency, appropriate 
deficiency criteria and which pests, if others, should also be covered 
under the Infestation Standard and elevated to ``extensive.''
    Question for Comment #13: HUD is considering amending the 
Infestation Standard to create a longer timeframe of repair for severe 
infestation deficiencies. The amended deficiency would allow longer 
correction timeframes when properties utilize industry best practices 
for mitigating infestations and assessing

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infestation risks. The amended correction timeframes that HUD is 
considering would apply only to Public Housing and Multifamily 
properties due to the statutory constraints on the HCV and PBV 
programs. An example of industry best practices would be utilizing 
integrated pest management as a form of proactive pest control. HUD 
seeks input on an appropriate correction timeframe and use of industry 
best practices to address infestations in HUD-assisted properties.
    For all the above changes, HUD also seeks comments on whether these 
proposed requirements, as applied to all covered housing, would 
substantially narrow the pool of available rental housing for families 
participating in HUD's programs. HUD also notes that HUD is continuing 
to review the comments received through the Federal Register on the 
NSPIRE proposed rule in the development of the attached standards. All 
standards-related comments from the NSPIRE proposed rule and comments 
received in response to this request for comments will be considered 
prior to the final standards notice.

VIII. The NSPIRE Standards

    As explained in the background section, previous versions of the 
NSPIRE standards have been published to the HUD website. Previous 
versions have been archived. HUD seeks comment on the current version, 
2.2, which is available for review at https://www.hud.gov/sites/dfiles/PIH/documents/6092-N-02nspire_propose_standards.pdf. HUD asks that all 
comments to version 2.2 be made through the Federal Register.

Adrianne Todman,
Deputy Secretary.
[FR Doc. 2022-13251 Filed 6-16-22; 8:45 am]
BILLING CODE 4210-67-P