03/09/2016

Housing Quality Standards (HQS) Inspections to be Replaced

On February 11, 2016, HUD sent out an email to industry professionals with an update on the process to replace the HQS (Housing Quality Standards) inspection code with a new inspection code called UPCS-V (Uniform Physical Condition Standards-Voucher).

HUD released a proposed table (click here to view) showing the deficiencies and the so-called “decision tree” that is part of the new inspection code. HUD refers to a decision tree as a way of describing the process of determining the nature and severity of an issue.

HUD is attempting to utilize the general format of the UPCS Inspection Code, which is used by REAC, USDA/RD, and Low-Income Housing Tax Credit (LIHTC) properties, and modify the UPCS inspection code to work on a Pass/Fail by Unit format, which had been traditionally used in HQS inspections.

HUD is seeking comments on the proposed table of deficiencies, which is very similar to the UPCS code currently in use, but with a few notable additions. These additions include some basic building code items such as “missing sink traps” and other design issues that are not included in UPCS/REAC Inspections.

The new UPCS-V is planned for release and implementation this year. There is still a lot of changes to come to the design of this inspection code, so the table included above will not necessarily be the final design. Expected changes include creating severity levels, determining what will and what won’t cause a unit to fail, and how to generate a numeric score based on the findings.

One of the most interesting elements of this new UPCS-V is that software vendors who provide inspection applications will be provided with the ability to create an export file that can be uploaded to HUD.