Physical Inspection Alignment Initiative Update

The Physical Inspection Alignment Initiative has grown significantly since its inception in 2011, when we began with 6 state Housing Finance Agency (HFA) partners. By 2016, the Alignment Initiative had enlisted 32 state HFAs partners. What we’ve found thus far is that each duplicative inspection eliminated through the Alignment Initiative can save up to $2,000 per inspection. These savings are realized by reducing administrative costs and other financial burdens, with the added benefit to residents of not having to contend with multiple inspections in a single year.

Cost avoidance in CY15: $1.1 million
Projected cost avoidance in FY 16: $1.18 million
Projected cost avoidance in CY16: $1.07 million


HFA Partners that Certified for HOME Investment Partnership Program
8 states have certified that the REAC UPCS standards meet/exceed local code, allowing for inclusion of that states’ HOME properties in the Alignment Initiative.

Training HFA Inspectors for REAC Inspections
62 HFA inspectors have become REAC certified. This enables the HFA inspectors to perform inspections that can be accepted by HUD on HUD properties, saving Federal dollars.

Train the Trainer Program
HUD is beta testing with two HFAs that have REAC-certified inspectors to instruct future HFA inspectors in their respective regions to expand the number of possible HFA REAC-certified inspectors.

Automated Property Matching Across Federal and State Agencies
A preliminary, computer-based and algorithm-driven, data matching system (Physical Inspection Property List) was developed to more easily identify properties receiving funding from multiple sources (MF/FHA, HOME, LIHTC, USDA) and efficiently decrease duplicative inspections.

HUD Single Point- of- Entry Data Portal
The portal prototype was unveiled for HFAs to more easily identify aligned properties each year, access their inspection reports, and submit property data for matching purposes. It is anticipated that this portal could also be used for submissions of the LIHTC survey data, hence streamlining the number of different HUD portals that an HFA would send similar data to.

Non-HUD Inspections
Beginning in 2015, HFAs who have REAC-certified inspectors perform can begin to perform non-HUD inspections using REAC software. HFAs use the REAC inspection report to complete required physical inspection forms to certify LIHTC compliance. In CY16, 75 non-HUD inspections have been completed to date using UPCS software.

Map Image representing HFA Physical Inspection Alignment Initiative partners

States in green represent locations HFA Physical Inspection Alignment Initiative partners.


Total inspections completed in FY2015 and projected for completion in CY2015, by funding source.

Funding Stream FY16 Projection* CY16 Projection*
LIHTC 316 276
State HFA Programs 152 145
USDA 64 63
LIHTC and HOME 18 17
HOME 8 7
LIHTC and USDA 4 4
LIHTC, USDA and HOME 2 1
USDA and HOME 1 1
Total Completed Inspections 509 461
Total Duplicative Inspections Eliminated 592 538

* This projection assumes that no additional properties will drop from the Physical Inspection Alignment. All figures, estimates, and projections shown on this page are current as of September 2016.