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HUD REAC Notice and Dictionary of Deficiencies Issued

HUD has issued a Final Notice Physical Condition Scoring notice and Revised Dictionary of
Deficiency Definitions for HUD Real Estate Assessment Center (REAC) inspections. The process
for issuing scores and the changes in this notice apply to the physical condition inspection
process for both multifamily and public housing properties.
This notice includes multifamily housing properties assisted with project-based Section 8,
Section 202, Section 811 and other properties, and is effective for all inspections conducted on
or after Jan. 1, 2013.

Two key changes were introduced in this notice:

1. The addition of a point loss cap, which limits the amount by which a single deficiency
could reduce the overall property score. This change was incorporated after HUD
reviewed complaints about situations where the reduction from a single deficiency was
so severe as to be unfair.

2. The Dictionary of Deficiencies was changed to introduce technical modifications and
clarifications to a number of deficiencies, including building exterior, building systems,
common areas, units, site and health and safety.

The latest notice can be found here , and the definitional changes can be found here.

(August 28, 2012)