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KNOCKING OUTREAC Presented by: Greg Nolan & Mark Pelton

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RECORDS OF FIGHTERS

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28 years in COOP property management Over 300 REAC inspections performed Regional Maintenance Supervisor REAC Inspector training Over 70 inspections in the 90’s Registered Cooperative Manager

IN THIS CORNER….

GREG ‘THE HAMMER’ NOLAN

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60 REAC inspections performed 8 years as a Regional Property Manager MAHC Trainer for 8 years Regional Property Manager Certified Apartment Property Supervisor (CAPS) 6 years as a Registered Cooperative Manager

MARK “JAW BREAKER” PELTON

AND IN THIS CORNER….

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How to schedule, prepare & conduct

Scoring

Deficiency Items

The report

How to appeal-instructions

What you will learn in this class?

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ROUND 1WHAT IS REAC?

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Acronym for

Real

Estate

Assessment

Center

ROUND 1: WHAT IS REAC? *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.

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Reverse auction-Mortgage Inspection Agreed upon day of inspection-who can

schedule-one person in the company

Period of Performance

Rescheduling Inspection/Delaying

Inspection

1. Site is undergoing Rehab-any type

2. Natural Disaster-Tornado/flood/fire

ROUND 1: HOW TO SCHEDULE?

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ROUND 2PREPARING FOR REAC

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

ROUND 2:PREPARING FOR REAC

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Documents Needed

Property Map & Rent Roll Measurement of walkway by

square feet, parking lots & roadways by sq ft.

Notice of Inspection

Show Lead Based Paint Inspection Report & 5

member files showing LBP Disclosure form

Occupancy Rate 85% and above

ROUND 2: PREPARING FOR REAC

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Occupation Calculation

ROUND 2: PREPARING FOR REAC

# of Units: 87 # of Vacants: 13

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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%

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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?

ROUND 2: PREPARING FOR REAC

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ROUND 3REAC SCORES

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100-90 3 years89-80 2 years79-60 1 year59-31 Failing, not necessarily

referred to enforcement center30 & below Complete failure-automatically referred to enforcement

ROUND 3WHAT DOES THE SCORE MEAN?

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Why is enforcement action taken?When owners of HUD-assisted properties do not live

up to their responsibility to provide clean, safe and sanitary housing, the DEC steps in and takes action. Enforcement action may be taken against owners with physically substandard properties, those with financial audit findings, and those owners who fail to submit annual financial statements. The DEC may pursue civil money penalties or double damages where program violations have occurred.

ROUND 3ENFORCEMENT CENTER

* In more serious cases involving multifamily housing, the Department can abate owners’ federal subsidy payments and foreclose on properties.

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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

ROUND 3 DEFIECIENCY LEVELS

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ROUND 4CONDUCTING THE

INSPECTION

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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

ROUND 4 CONDUCTING THE INSPECTION

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Maintenance package◦ 1. Light bulb◦ 2. 9V batteries◦ 3. Screwdriver and pliers◦ 4. Switchplates and outlet covers◦ 5. breaker blanks◦ 6. paperclip

ROUND 4CONDUCTING THE INSPECTION

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ROUND 5SITE HITS

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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

ROUND 5SITE HITS: LARGEST POINT VALUE

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Grounds◦ Overgrown/penetrating vegetation◦ Erosion/Rutting◦ Ponding Site Drainage

Parking lots◦ Cracks◦ Ponding◦ Potholes/loose material◦ Settlement heaving

ROUND 5SITE HITS: LARGEST POINT VALUE

245/17/2011

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

ROUND 5: SITE HIT

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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

ROUND 5 SITE HITS: MARKET APPEAL

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ROUND 6EXTERIOR

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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

ROUND 6: EXTERIOR

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Roofs ◦ Shingles ◦ Vents◦ gutters ◦ soffitts

Walls◦ cracks/holes ◦ peeling paint◦ Caulking ◦ chimney

ROUND 6: EXTERIOR Windows

◦ Broken ◦ Sills◦ Bars◦ Paint & Screens

Doors◦ Hardware & frame◦ Surface & screen◦ Caulk

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ROUND 7SYSTEM HITS

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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

ROUND 7: SYSTEM HITS

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Sanitary System◦ Broken pipes◦ Clean out covers

Elevators◦ Not operable

ROUND 7: SYSTEM HITS

Emergency power◦ Lights don’t work

Electrical system◦ Missing breakers ◦ Blocked◦ Frayed Wiring ◦ Cover missing

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ROUND 8UNITS

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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

ROUND 8: UNITS

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Windows◦ Hardware & Sill◦ Seal, lockability, broken glass

Stairs◦ Treads & Railing

Patio/porch/balcony Laundry area

◦ Dryer vent ◦ Washer pipes and drain

ROUND 8: UNITS

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ROUND 8: UNITS Lighting

◦ Must work – carry bulb Electrical

◦ Outlets◦ Covers◦ Switches

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ROUND 9Exigent Health &

Safety

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Electrical Hazards Emergency/Fire Exits Air Quality Flammable Materials-Gas

lines, propane, charcoal fluid Garbage Debris

ROUND 9: Exigent Health & Safety

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Hazards-Tripping, Sharp Edges Infestation Misaligned Flu in hot water heater or

furnace Will not enter a unit present with bed

bugs

ROUND 9: Exigent Health & Safety

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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.

ROUND 9: Exigent Health & Safety

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Cable trip hazards are non scoreable.

ROUND 9: Exigent Health & Safety

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ROUND 10COMMON AREAS

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Maintenance Garage Office Clubhouse or Community Room Exercise Room Pool & Playground

If an area has utilities it is inspectable

ROUND 10: Common Areas

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ROUND 11APPEALING A SCORE

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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

ROUND 11: How to appeal a score

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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

ROUND 11: Database Adjustment

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ROUND 12REAC REFERENCES

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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

ROUND 12REAC References

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This presentation will be available on our website at:

www.ekirkpatrick.com