1. 1 Greg Nolan Mark Pelton Mike Bannister Presented By

2.  29 years in Co-op property management  Over 300 REAC inspections performed  Regional Maintenance Supervisor  REAC Inspector training  Over 75 inspections in the 90’s  Registered Cooperative Manager  MAHC trainer for 10 years 2

3.  60 REAC inspections Performed  9 years as a Regional Property Manager  MAHC trainer for 9 years  Certified Apartment Property Supervisor  Registered Cooperative Manager 3

4.  12 years as a Property Maintenance Supervisor  Assisted in over 12 REAC inspection  Improved REAC scores from 60’s to 90’s  Awarded Maintenance Supervisor of the Year by Kirkpatrick Management Co.  Turned property around from non performing to performing and cash flowing 4

5.  How to schedule, prepare & conduct  Scoring  Deficiency Items  The report  How to appeal-instructions 5

6. 6 WHAT IS REAC?

7.  Acronym for  R eal  E state  A ssessment  C enter 7 *HUD’s way of assessing Safe, Decent & affordable housing What is the purpose of a REAC? To give oversight on the physical condition of subsidized properties.

8.  Reverse auction-Mortgage Inspection  Agreed upon day of inspection-who can schedule-one person in the company  Period of Performance  Rescheduling Inspection/Delaying Inspection  Site is undergoing Rehab-any type  Natural Disaster-Tornado/flood/fire 8

9. 9 PREPARING FOR REAC

10. When to Start  After last REAC  3 months before scheduled or  anticipated REAC date. 10

11.  Documents Needed  Measurement of walkway by square feet, parking lots & roadways by sq ft.  Property Map & Rent Roll  Notice of Inspection  Show Lead Based Paint Inspection Report & 5 member files showing LBP Disclosure form  Occupancy Rate 85% and above 11

12. 12 # of Units: 87 # of Vacants: 13 74 Step 1: Subtract Number of Vacants from the number of units. *74 is total number of OCCUPIED UNITS Step 2: Divide # Occupied units by Total # of Units 74 ÷ 87 = 85.057471% - Occupation Calculation

13.  Know your property  Schedule unit inspections  Inspect, Repair, Highlight  Schedule exterior inspections  Assess scope of work  How many work orders  What work will be done by staff, contractors, or members.  Cost of performing work: (concrete patching, drywall repairs)  What was your last score?  Have you completed unit inspections since the last REAC inspection  Did you fix items noted in last REAC inspection report? 13

14. 14 REAC SCORES

15.  100-903 years  89-802 years  79-601 year  59-31Failing, not necessarily referred to enforcement center  30 & belowComplete failure-automatically referred to enforcement 15

16. The DEC take action against owners that do not live up their responsibility of providing safe, clean and sanitary housing DEC Actions Include  Abatement of federal subsidies  Civil money penalties  Foreclosure on properties  Referral to U.S. Attorney’s Office 16

17.  Level 1 Deficiency – Lowest amount of points  Level 2 Deficiency – Higher amount of points  Level 3 Deficiency – Even higher amount  Exigent Health and Safety Deficiency - Highest 17

18. 18 CONDUCTING THE INSPECTION

19.  Relationship with inspector  2 people to perform inspection with inspector  Understand REAC Protocol  Maintain good relationship with inspector  Talk about common interest  Diversion Tactics  Have a copy of the compilation bulletin with you  Ask inspector to show you the definition of the deficiency  Carry a maintenance package with you 19

20.  Maintenance package  Light bulb  9V batteries  Screwdriver and pliers  Switch plates and outlet covers  Breaker blanks  Paperclip 20

21. 21 SITE DEFICIENCIES

22.  If it’s there, it must function as it is designed to function.  Fencing – Perimeter and building 3 to 4 Deficiencies  Retaining walls Damaged or leaning 22

23.  Grounds ◦ Overgrown/penetrating vegetation ◦ Erosion/Rutting ◦ Ponding Site Drainage  Parking lots ◦ Cracks ◦ Ponding ◦ Potholes/loose material ◦ Settlement heaving 23

24. 5/17/2011  Play Areas  Damaged play area  Broken Equipment/Benches  Walkways /steps  Cracks/settlement/ heaving  Spalling  Broken or missing handrail  4 or more steps  Refuse disposal  Damaged enclosure  Inadequate storage 24

25.  Graffitti  Level 1 – 1 place  Level 2 – 2 to 5 places  Level 3 – 6 or more  Litter – Excess  Have a groundsman picking up trash always in sight of the insp.  Mailboxes/Project Signs.  Sign damaged and cannot be read  Mailbox damaged or cannot lock 25

26. 26 EXTERIOR

27.  If it’s there, it must function as it is designed to function.  Fire Escapes – Missing components or blocked  Foundation  Cracks/gaps  Spalling/exposed rebar  Lighting  Bulb or fixture broken/missing 27

28.  Roofs  Shingles  Vents  gutters  soffitts  Walls  cracks/holes  peeling paint  Caulking  chimney 28  Windows ◦ Broken ◦ Sills ◦ Bars ◦ Paint & Screens  Doors ◦ Hardware & frame ◦ Surface & screen ◦ Caulk

29. 29 SYSTEM HITS

30. If it’s there, it must function as it is designed to function  Water  Leaking spigots  Misaligned flu  Missing T&P valves  Fire Protection  Sprinkler head  Fire extinguisher  Disposable  Rechargeable  Pull stations  HVAC System  Fuel leaks  Misaligned flu 30

31.  Sanitary System  Broken pipes  Clean out covers  Elevators  Not operable 31  Emergency power ◦ Lights don’t work  Electrical system ◦ Missing breakers ◦ Blocked ◦ Frayed Wiring ◦ Cover missing

32. 32 UNITS

33. If it’s there, it must function as it is designed to function.  Blocked Egress -doors & windows-Biggest Inside Hit  Bathroom- faucets, tubs, drains, exhaust fans, toilets  Doors  Surface & Frame  Hardware  Floors  Carpet or tile  % is bad  Kitchen  Plumbing & Cabinets  Refrig. & Exhaust fan 33

34.  Windows  Hardware & Sill  Seal, lockability, broken glass  Stairs  Treads & Railing  Patio/porch/balcony  Laundry area  Dryer vent  Washer pipes and drain 34

35. 35  Lighting ◦ Must work – carry bulb  Electrical ◦ Outlets ◦ Covers ◦ Switches

36. 36 COMMON AREAS

37.  Maintenance Garage  Office  Clubhouse or Community Room  Exercise Room  Pool & Playground  If an area has utilities it is inspectable 37

38. 38 Exigent Health & Safety

39.  Electrical Hazards  Emergency/Fire Exits  Air Quality  Flammable Materials- Gas lines, propane, charcoal fluid  Garbage Debris 39

40.  Hazards-Tripping, Sharp Edges  Infestation  Misaligned Flu in hot water heater or furnace  Will not enter a unit present with bed bugs 40

41. Smoke detectors that are inoperable or missing will be noted on the REAC report as a EH&S violation that has to be mitigated within 24 hours of inspection, but, it is NOT a scoreable item. 41

42.  Cable trip hazards are non scoreable. 42

43. 43 APPEALING A SCORE

44. Technical Review- A technical review may be requested if during the inspection an objectively material error occurred that if corrected would result in an improvement of the properties overall score.  Building data errors  Unit count errors  Non existent deficiency errors  Received within 30 days 44

45. Database Adjustment  A request for database adjustment initiates a review of the results of a physical inspection. A database adjustment may be requested for circumstances affecting the inspected property that are out of the ordinary, reflect an inconsistency with ownership or are allowed by city state code. Received with 45 days 45

46. 46 REAC REFERENCES

47.  www.hud.gov/offices/reac www.hud.gov/offices/reac  Technical Assistance Center-1800-245-4860  DCD 2.3a Public Version User Guide  Compilation Bulletin  REAC Class in Washington, DC  Questions/Comments 47

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50. What Category does a leaking water spigot fall into? a. Unit b. Site c. Systems d. Exterior 50

51. Screens are one of the major things to fix before a REAC inspection.  True  False 51

52. Broken glass found on the property is an exterior Deficiency  True  False 52

53. Foundation cracks are a relatively small hit on an inspection  True  False 53

54. A Blocked egress is the largest hit you can take inside of a unit  True  False 54

55. You have 48 hours to fix all Exigent Health and safety violations  True  False 55

56. A broken splash block falls into what category a. Unit b. Exterior c. Systems d. Site 56

57. Which of these is not an exigent health and safety violation a. Open breaker port b. Misaligned Water heater flu c. Missing outlet cover d. Massive hole in Bedroom wall 57

58. The deficiency “erosion” is only found by large rutting areas or large areas of soil being washed away?  True  False 58

59. There are 3 areas you can be cited for a deficiency on a Unit window  True  False 59

60. Playground benches are not inspectable.  True  False 60

61. Playground mulch or associated material is not inspectable.  True  False 61

62. All Breaker boxes must have doors  True  False 62

63. What is the occupancy % value that HUD is looking for to keep from inspecting vacant units? a. 84% b. 92% c. 77% d. 85% 63

64. Project signage must be readable from at least 20 ft away or it is deficient  True  False 64

65. Graffiti, Level 3 must have at least 4 areas of occurrence.  True  False 65

66. If you remove a broken swing from the playground area, then you cannot be cited for it  True  False 66

67. All fire extinguisher must be tagged by a certified fire protection company  True  False 67

68. If a retaining wall is damaged but is not a safety risk then there is no deficiency  True  False 68

69. Trip Hazards only applies to concrete sidewalks  True  False 69

70. An exterior GFI is a large electrical deficiency  True  False 70

71. If a bed is blocking 1 of two windows in a bedroom, it is still a blocked egress  True  False 71

72. If you remove an A/C from a window and the window will not stay open by itself, it is considered a blocked egress.  True  False 72

73. It is not possible to receive a deficiency in a breaker box where all of the breakers and/or blanks are present  True  False 73

74. What is the distance according to HUD that a discharge tube on a water heater can be from the floor. a. 12 inches b. 24 inches c. 20 inches d. 18 inches 74

75. Fire pull stations can be inspected by the property  True  False 75

76. On an exterior wall, a crack or gap that is more than 3/8 inches wide, 1/8 inch deep or 6 inches long is still a relatively small hit in terms of points.  True  False 76

77. Garbage inside of a unit is not a deficiency  True  False 77

78. A lamp in front of a bedroom window constitutes a blocked egress  True  False 78

79. GFI’s that deliver voltage but do not test are still considered a deficiency  True  False 79