HUD Delays Compliance Date for NSPIRE Protocols for Community Planning and Development Programs
The Department of Housing and Urban Development (HUD) has announced it is delaying until October 1, 2024, the compliance date for its National Standards for the Physical Inspection of Real Estate (NSPIRE) final rule as it applies to Community Planning and Development (CPD) programs. The NSPIRE final rule, published May 11, 2023, initially required compliance for CPD programs to begin October 1, 2023. Programs covered by the delay notice include the HOME Investment Partnerships (HOME), Housing Trust Fund (HTF), Housing Opportunities for Persons with AIDS (HOPWA), Emergency Solution Grants (ESG), and Continuum of Care (CoC) programs.
HUD published the full list of NSPIRE deficiencies on June 22, 2023; however, HOME and HTF projects will be subject only to a subset of these enumerated deficiencies. HUD has yet to issue guidance on which deficiencies will apply to HOME and HTF and will not do so until after October 1 of this year. Without this information, compliance with the NSPIRE protocols would be impossible for HOME participating jurisdictions (PJs) and HTF grantees, which must update their rehabilitation and ongoing property standards accordingly. Furthermore, HOME PJs and HTF grantees may need to update written agreements with owners consistent with the new standards necessitated by NSPIRE before they can comply with the NSPIRE rule.
Of note, the compliance date for other HUD programs, such as the Housing Choice and project-based voucher programs, has not changed, as the full list of deficiencies that apply to these programs under NSPIRE has already been published. Entities administering HOPWA, ESG, or CoC projects that accept these vouchers may elect to adopt the new NSPIRE protocols as of the original compliance date of October 1, 2023, but will not be required to do so until October 1, 2024. Further guidance specific to these programs is forthcoming from HUD.
NCSHA previously filed comment with HUD specifically asking for the compliance deadline for NSPIRE to be delayed in light of delays by HUD in publishing all required final guidance.
NCSHA also has pressed the Internal Revenue Service to publicly state whether it will adopt NSPIRE for purposes of the Housing Credit program, as HUD is replacing the Uniform Physical Condition Standards (UPCS) protocol with NSPIRE. IRS guidance currently references UPCS for Housing Credit compliance purposes. In general, a single standard is desirable to prevent multiple inspections, as many properties financed with Housing Credit equity also receive financing from CPD programs. NCSHA has urged IRS to provide adequate time for agencies to transition should it adopt NSPIRE.
