[Federal Register Volume 89, Number 129 (Friday, July 5, 2024)]
[Notices]
[Pages 55645-55647]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-14718]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-6086-N-09]
RIN 2577-AD05


Economic Growth Regulatory Relief and Consumer Protection Act: 
Implementation of National Standards for the Physical Inspection of 
Real Estate (NSPIRE); Extension of NSPIRE Compliance Date for HCV, PBV 
and Section 8 Moderate Rehab and CPD Programs

AGENCY: Office of the Assistant Secretary for Public and Indian

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Housing, U.S. Department of Housing and Urban Development (HUD); Office 
of the Assistant Secretary for Community Planning and Development, U.S. 
Department of Housing and Urban Development (HUD).

ACTION: Notice.

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SUMMARY: This notice further extends the compliance date for HUD's 
National Standards for the Physical Inspection of Real Estate (NSPIRE) 
final rule for the Housing Choice Voucher (HCV), Project Based Voucher 
(PBV) and Section 8 Moderate Rehabilitation programs, and for the HOME 
Investment Partnerships Program (HOME) and Housing Trust Fund (HTF), 
Housing Opportunities for Persons With AIDS (HOPWA), Emergency Solution 
Grants (ESG) and Continuum of Care (COC) programs (``CPD programs''), 
until October 1, 2025. HUD is taking this action to allow Public 
Housing Authorities (PHAs), jurisdictions, participants, recipients, 
and grantees additional time to implement HUD's NSPIRE standards. This 
is the second extension of this compliance date.

DATES: 
    Compliance Date: Jurisdictions, participants, and grantees subject 
to 24 CFR parts 92, 93, 574, 576, 578, 882, 982, and 983 are not 
required to comply with the changes to these parts in the NSPIRE final 
rule until October 1, 2025.

FOR FURTHER INFORMATION CONTACT: 
    Regarding the HCV and PBV programs: Dana M. Kitchen, Real Estate 
Assessment Center, Office of Public and Indian Housing, Department of 
Housing and Urban Development, 550 12th Street SW, Suite 100, 
Washington, DC 20410-4000; telephone 202-708-1112 (this is not a toll-
free number), [email protected].
    Regarding CPD programs: Caitlin Renner, Supervisory Affordable 
Housing Specialist, Room 7160, Department of Housing and Urban 
Development, 451 Seventh Street SW, Washington, DC 20410-7000; 
telephone (202) 708-2684. (This is not a toll-free number).
    HUD welcomes and is prepared to receive calls from individuals who 
are deaf or hard of hearing, as well as individuals with speech or 
communication disabilities. To learn more about how to make an 
accessible telephone call, please visit: https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs.

SUPPLEMENTARY INFORMATION: 

I. Background

    PHAs administering the HCV and PBV programs currently use the 
Housing Quality Standards (HQS) for inspections, which are defined at 
24 CFR 982.401. The Economic Growth Regulatory Relief and Consumer 
Protection Act: Implementation of National Standards for Physical 
Inspection of Real Estate (NSPIRE) final rule (``NSPIRE final rule'') 
was published on May 11, 2023 (88 FR 30442). The NSPIRE final rule 
included amendments to 24 CFR parts 982 and 983 effective October 1, 
2023. For CPD programs, the NSPIRE final rule included amendments to 24 
CFR parts 92, 93, 570, 574, 576, and 578 to conform their various 
inspection requirements to NSPIRE and established an effective date for 
these amendments of October 1, 2023. In September 2023, HUD delayed the 
compliance date for CPD programs (88 FR 63971) and for the HCV and PBV 
programs (88 FR 66882) until October 1, 2024, to allow PHAs, 
jurisdictions, participants, recipients, and HUD grantees additional 
time for implementation.

II. Basis for Delay of Compliance Date

    Through this notice, HUD further delays the compliance date for CPD 
programs and for the HCV and PBV programs until October 1, 2025. HUD 
encourages any PHA, participating jurisdiction, or grantee that is 
ready to implement NSPIRE to do so at their earliest convenience. 
However, HUD has determined that additional time is necessary for some 
PHAs to implement NSPIRE for the HCV, PBV, and Moderate Rehabilitation 
(Mod Rehab) programs. This will provide PHAs with additional time to 
train staff and communicate with landlords and give HUD more time to 
provide additional technical resources needed for PHAs to transition to 
the NSPIRE standards. PHAs have reported to HUD that they are still 
recovering from the effects of the COVID-19 pandemic on their 
operations and are struggling to recruit and retain private landlords 
to participate in the HCV program. PHAs have also reported that staff 
time is being dedicated to administrative changes relating to the 
Housing Opportunity through Modernization Act (HOTMA), Public Law 114-
201, 130 Stat. 782, which has impacted their ability to implement a new 
inspection protocol. Additionally, private software vendors have not 
finished their inspection products for PHAs, and HUD has not released 
its updated inspection software for HCV inspections.
    HUD is also delaying the compliance date for CPD programs to allow 
jurisdictions, participants, recipients, and grantees that also 
administer housing or rental assistance, and that may rely on 
inspections performed under the HCV or PBV programs, to align their 
implementation timelines. As stated in the last compliance date 
extension for CPD programs, HUD intends to publish standards specific 
to each of the several CPD programs before the compliance date. These 
notices have not yet been published, and it will be a challenge for 
participating jurisdictions, recipients and grantees to revise their 
inspection procedures in time.

III. Instructions for PHAs Under the HCV, PBV and Section 8 Mod Rehab 
Programs

    Only PHAs who will implement NSPIRE prior to the new compliance 
date of October 1, 2025, must notify HUD of the date on which they plan 
to transition to NSPIRE. This notification must be sent via email to 
[email protected] with a courtesy copy to their Field 
Office representative. The email's subject line must read 
``Notification of Extension of HQS, [PHA code]'' and the body of the 
email should include the PHA name, PHA code, and what date the PHA 
tentatively plans to implement NSPIRE (which may be no later than 
October 1, 2025).
    PHAs are reminded that the NSPIRE Standards \1\ for installing 
carbon monoxide devices and smoke alarms will still apply, as they 
implement statutory mandates under the Consolidated Appropriations Act, 
2021 \2\ and 2023,\3\ respectively. The NSPIRE Standard for smoke 
alarms will be updated for the new smoke alarm requirements before the 
statutory compliance date of December 29, 2024.
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    \1\ REAC NSPIRE Standards are posted at https://www.hud.gov/program_offices/public_indian_housing/reac/nspire/standards.
    \2\ Section 101, ``Carbon Monoxide Alarms or Detectors in 
Federally Insured Housing'' of Title I of Division Q, Financial 
Services Provisions and Intellectual Property, of the Consolidated 
Appropriations Act, 2021, Public Law 116-260, 134 (2020).
    \3\ Section 601, ``Smoke Alarms in Federally Assisted Housing'' 
of Title VI of Division AA, Financial Services Matters, of the 
Consolidated Appropriations, 2023, Public Law No 117-328 (2022).
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IV. Instructions for HOME Participating Jurisdictions and HTF Grantees

    As stated in the previous compliance date extension for CPD, HOME 
participating jurisdictions and HTF grantees should prepare for the 
compliance date by updating property standard regulatory citations and 
requirements in written agreement templates with State recipients, 
subrecipients, and project owners, as

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required by 24 CFR 92.504(c) and 24 CFR 93.404(c).
    In addition, participating jurisdictions and HTF grantees that 
intend to comply with the changes in the NSPIRE final rule as of the 
effective date should review the deficiencies established in the NSPIRE 
Standards notice at 88 FR 40832 and compare these requirements to their 
existing rehabilitation and property standards and their inspection 
procedures and checklists. While HUD intends to publish a subset of the 
deficiencies in the NSPIRE Standards that are applicable to HOME and 
HTF projects, participating jurisdictions and HTF grantees that 
implement the changes in the NSPIRE final rule before publication of 
the subset of deficiencies for HOME and HTF must implement the full set 
of deficiencies in the NSPIRE Standards in their rehabilitation and 
ongoing property standards and policies and procedures. Further, 
participating jurisdictions and HTF grantees may not implement the 
changes in the NSPIRE final rule until such rehabilitation and ongoing 
property standards and policies and procedures are updated consistent 
with NSPIRE.

V. Instructions for CoC, ESG, and HOPWA Programs

    CoC and ESG program recipients and HOPWA grantees may apply the 
NSPIRE standards at 88 FR 40832 before October 1, 2025, provided that 
their program documents reflect the standards they are using and the 
date of transition to those standards. Otherwise, CoC and ESG 
recipients and HOPWA grantees that are not ready to make the transition 
to the new standards will be expected to adhere to the former program 
requirements until the new compliance date. However, when HUD issues 
the standards specific to the HOPWA, ESG and CoC programs, all grantees 
and recipients will be encouraged to prepare for the compliance date by 
updating their policies and procedures to reflect the program-specific 
standards.
    HOPWA grantees are reminded of the requirements for installing 
carbon monoxide devices and smoke alarms as required by the 
Consolidated Appropriations Act, 2021 and 2023, respectively. HUD will 
update the NSPIRE Standard for the new smoke alarm requirements before 
the statutory compliance date of December 23, 2024.

VI. Conclusion

    Accordingly, HUD revises the October 1, 2024, compliance date for 
the changes made to 24 CFR parts 92, 93, 574, 576, 578, 882, 982, and 
983 to October 1, 2025, at which time PHAs, jurisdictions, grantees, 
recipients, and participants subject to these parts must comply with 
the NSPIRE final rule. Until October 1, 2025, PHAs, jurisdictions, 
grantees, recipients and participants subject to these parts may 
instead choose to comply with the provisions of these parts that were 
amended by the NSPIRE final rule as they existed prior to October 1, 
2023.

Maria Claudette Fernandez,
General Deputy Assistant Secretary for Community Planning and 
Development.
Dominique Blom,
General Deputy Assistant Secretary for Public and Indian Housing.
[FR Doc. 2024-14718 Filed 7-3-24; 8:45 am]
BILLING CODE 4210-67-P