SECTION 5. INSPECTION

STANDARD—USE OF THE REAC PROTOCOL

.01 The REAC protocol is among the inspection protocols that satisfy both § 1.42–5(d) and the physical inspection requirement of § 1.42–5T(c)(2)(ii) and (iii). This revenue procedure treats an inspection as being performed under the REAC protocol only if the inspection satisfies all of the following requirements:

(1) Both vacant and occupied low income units in a low-income housing project are included in the population of units from which units are selected for inspection. ¹

(2) The inspection complies with the

procedural and substantive requirements of the HUD Real Estate Assessment Center (REAC), including the requirement to use the most recent REAC Uniform Physical Condition Standards (UPCS) inspection software (or software that is accepted by HUD). ²

(3) The inspection is performed by

HUD REAC inspectors (or inspectors certified by HUD). (4) The inspection results are sent to

HUD, the results are reviewed and scored within HUD’s secure system without any involvement of the inspector who conducted the inspection, and HUD makes its inspection report available. .02 If, consistent with Section 5.01 of this revenue procedure, an Agency conducts on-site inspections under the REAC protocol—

(1) § 1.42–5T(c)(2)(iii)(A) is applied as

if it did not contain the word “all”; (2) The number of low-income units re quired to be inspected under the REAC protocol satisfies the requirements of § 1.42–5T(c)(2)(iii)(B) (concerning the number of lowincome units an Agency must inspect); and (3) The manner in which the low income units are selected for inspection under the REAC protocol

satisfies the requirements of § 1.42–5T(c)(2)(iii)(C). .03 Conducting on-site inspections under the REAC protocol does not excuse an Agency from reviewing low-income certifications in accordance with § 1.42– 5T(c)(ii) and (iii).