National Standards for the Physical Inspection of Real Estate: Inspection Standards, 40832-40841 [2023-13293]

Agencies

• DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Federal Register Volume 88, Number 119 (Thursday, June 22, 2023)]
[Notices]
[Pages 40832-40841]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-13293]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-6086-N-05]


National Standards for the Physical Inspection of Real Estate: 
Inspection Standards

AGENCY: Office of the Assistant Secretary for Housing--Federal Housing 
Commissioner, Office of the Assistant Secretary for Community Planning 
and Development, Office of the Assistant Secretary for Public and 
Indian Housing, HUD.

ACTION: Notice.

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SUMMARY: This notice of NSPIRE Inspection Standards serves as a 
complementary document to the Economic Growth Regulatory Relief and 
Consumer Protection Act: Implementation of National Standards for the 
Physical Inspection of Real Estate (NSPIRE) rule. The rule provides 
that HUD publish in the Federal Register a set of NSPIRE inspection 
Standards to consolidate and align housing quality requirements and 
associated inspection Standards across programs. After developing and 
testing draft Standards and receiving public comment on prior versions 
of the Standards, HUD is providing the final NSPIRE physical inspection 
Standards to accompany HUD's final rule. Additionally, HUD is providing 
a list of life-threatening conditions and incorporating them into the 
NSPIRE inspection Standards in place of codifying the list, which HUD 
proposed in the ``Housing Opportunity Through Modernization Act (HOTMA) 
of 2016--Housing Choice Voucher (HCV) and Project Based Voucher 
Implementation: Additional Streamlining Changes'' proposed rule. These 
final Standards adopt the proposed Standards with changes identified in 
this notice.

DATES: July 1, 2023.

FOR FURTHER INFORMATION CONTACT: Marcel M. Jemio, Real Estate 
Assessment Center, Office of Public and Indian Housing, Department of 
Housing and Urban Development, 550 12th

[[Page 40833]]

Street SW, Suite 100, Washington, DC 20410-4000, telephone number 202-
708-1112 (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. Previous Standards and Programs

    Prior to implementation of the NSPIRE rule, there were two 
inspection models used across the majority of HUD housing programs: 
Housing Quality Standards (HQS), developed in the 1970s and applicable 
to housing assisted under the Housing Choice Voucher and Project Based 
Voucher program, which were found at 24 CFR 982.401; and the Uniform 
Physical Condition Standards (UPCS) developed in the 1990s and 
applicable to the programs listed at 24 CFR 5.701, which were found at 
24 CFR 5.703 with the dictionary of individual UPCS deficiencies 
contained in a Federal Register notice.\1\
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    \1\ 77 FR 47707 (Aug. 9, 2012), https://www.federalregister.gov/documents/2012/08/09/2012-19335/public-housing-assessment-system-phas-physical-condition-scoring-notice-and-revised-dictionary-of.
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II. NSPIRE Rule

    On May 11, 2023, HUD published the final rule ``Economic Growth 
Regulatory Relief and Consumer Protection Act: Implementation of 
National Standards for the Physical Inspection of Real Estate'' (88 FR 
30442) to align expectations of housing quality and consolidate 
inspection standards across HUD programs.
    The rule at 24 CFR 5.709 explains that HUD will publish a notice 
establishing the NSPIRE Standards and will subsequently update these 
Standards through future Federal Register notices at least once every 
three years with an opportunity for public comment. This will provide 
further opportunity for the public to examine proposed changes, provide 
pertinent comments, and suggest the inclusion of industry best 
practices. This three-year Standards development cycle aligns with 
cycles used by standards development organizations (SDOs) in the model 
building codes and life safety industries. A three-year review cycle 
will also allow HUD to be more responsive to the ever-changing public 
and assisted housing portfolio and evolving needs and research findings 
in the field.

III. NSPIRE Standard Development and Background

    The unified NSPIRE Standards will be used to evaluate compliance 
with HUD's expectations of housing quality across the distinct programs 
governed by the regulatory alignment offered in the NSPIRE rule. 
Consistent with the NSPIRE rule, the unified NSPIRE standards 
contribute to a unified inspection protocol for three different 
overarching programs: programs for housing assisted under the U.S. 
Housing Act of 1937 other than section 8 of the Act (``Public 
Housing''), programs previously under the Housing Quality Standards 
regulations at 24 CFR 982.401 (HQS regulations), and programs already 
covered under 24 CFR part 5, subpart G (``Multifamily housing'').
    With one exception, CPD programs are not subject to the 
requirements or standards issued through this notice. CPD programs used 
standards that are replaced by NSPIRE and, consistent with the preamble 
to the final rule, HUD will be issuing program-specific notices to 
address implementation of NSPIRE Standards for CPD programs. The one 
exception involves the Housing Opportunities for Persons with AIDS 
(HOPWA) program, which is the only CPD program covered by the statutory 
requirement on installation of carbon monoxide detection devices. With 
respect to that carbon monoxide detection requirement, the standards 
HUD is establishing for units and inside area under this notice also 
apply for purposes of the HOPWA program. In all other respects, this 
notice and these standards do not apply for purposes of the HOPWA 
program.
    Throughout the development of NSPIRE, HUD has provided multiple 
avenues for industry and public input on the Standards. In September 
2019, HUD began publishing draft NSPIRE Standards on HUD's website. The 
original and subsequent versions of the Standards represent input from 
industry stakeholders and the public via workshops, webinars, and 
feedback received through HUD's NSPIRE website.
    HUD's approach to Standards development follows a defined set of 
core principles: people-centered design, a focus on efficiency, 
science-based rationales, continuous collaborative improvement, and 
streamlined operations. HUD's principles of standards development are 
designed to ensure that standards:
     Are developed according to an evidence-based methodology 
that ensures reliability and defensibility;
     Prioritize resident health, safety, and functionality of 
property features, ensuring that residents are living in habitable 
homes;
     Promote iterative collaboration and feedback; and
     Focus on streamlining inspections processes, ensuring that 
standards can be executed consistently across programs.
    On June 17, 2022, HUD published a request for comments on a draft 
set of NSPIRE Standards, ``Request for Comments: National Standards for 
the Physical Inspection of Real Estate and Associated Protocols'' (87 
FR 36426) (``proposed NSPIRE Standards notice''); HUD received 80 
comments in response to that request for comments. HUD is now 
finalizing these Standards with changes based on the feedback HUD has 
received. HUD identifies the major changes and particularly pertinent 
comments below.

IV. HOTMA Life Threatening List

    Under the Housing Opportunity Through Modernization Act of 2016 
(HOTMA), as described in the preamble of the NSPIRE proposed rule and 
NSPIRE final rule, under the HCV and Project Based Voucher (PBV) 
programs, life-threatening deficiencies must be addressed within 24 
hours, and all other deficiencies within 30 days or a reasonable longer 
period as established by the Public Housing Agency (PHA).\2\ Under 
HOTMA, PHAs can allow families participating in the HCV and PBV 
programs to move into their unit prior to the unit passing the HQS, but 
only if there are no life-threatening conditions identified in the 
initial inspection.
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    \2\ Public Law 114-201, enacted July 29, 2016.
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    Consistent with HOTMA, HUD published a list of life-threatening 
conditions (``HOTMA LT List'') through Federal Register notice 
``Housing Opportunity Through Modernization Act of 2016: Implementation 
of Various Section 8 Voucher Provisions'' (82 FR 5458).
    In the proposed rule ``Housing Opportunity Through Modernization 
Act of 2016--Housing Choice Voucher (HCV) and Project-Based Voucher 
Implementation; Additional Streamlining Changes'' (85 FR 63664) 
(``HOTMA Proposed Rule''), HUD proposed to incorporate this list into 
24 CFR 982.401. In the proposed NSPIRE Standards notice, HUD proposed 
to instead include the HOTMA LT List in the NSPIRE Standards. HUD 
received comments on the HOTMA LT List in both the HOTMA Proposed Rule 
and the Proposed NSPIRE Standards notice.

[[Page 40834]]

HUD has chosen to go forward with the proposal in the NSPIRE proposed 
Standards notice and includes the HOTMA LT list in these final NSPIRE 
Standards.
    HUD has included the HOTMA LT List in the NSPIRE Standards and not 
in regulation and provides this list as Table 65 of the Standards. HUD 
believes that this consolidation is consistent with HUD's goal of 
consolidating standards. All NSPIRE Standards apply for the HCV and PBV 
programs, except where variant inspection standards apply.\3\ In the 
NSPIRE Standards, Deficiencies which are considered life-threatening 
for purposes of the HCV and PBV programs are noted with a 24-hour HCV 
Correction Timeframe. The HOTMA LT list applies for all PHAs in the HCV 
and PBV programs, and not only those choosing to implement the Non-
Life-Threatening provision offered under HOTMA and PIH Notice 2017-20.
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    \3\ The rules and procedures for variant standards and alternate 
exceptions for the HCV and PBV programs are not changing under 
NSPIRE and are recognized at Sec. Sec.  5.705(a)(3) and 5.703(g) of 
the NSPIRE final rule.
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    HUD received several comments on the HOTMA LT list. HUD carefully 
considered each of these comments and specifically discusses two 
overarching issues identified by commenters below.
    First, commenters recommended local discretion in designating LT 
conditions. For example, commenters noted that PHAs in areas with warm 
climates may wish to require air conditioners. Commenters also 
suggested that PHAs may wish to provide increased specificity for 
certain technical aspects of some deficiencies. HUD notes that 
additional LT conditions may be added locally by the PHA. This must be 
done with HUD approval. HUD further clarifies that while local addition 
of LT conditions is allowed, LT conditions established by HUD cannot be 
removed at the local level.
    Second, commenters stated that the HOTMA LT list should be codified 
in the CFR, which would require HUD to use notice and comment 
rulemaking to revise the LT list. Commenters stated this would provide 
decision-making transparency and opportunity for public input.
    The HOTMA LT list will not be codified in the CFR. This approach is 
consistent with the prior rule, which allowed for setting standards 
through notice. HUD will provide decision-making transparency and 
opportunity for public input by developing updates to the Standards 
through Federal Register notices with the prior opportunity for 
comment. As outlined in 24 CFR 5.709, HUD will publish updates to these 
Standards through future Federal Register notices at least once every 
three years with an opportunity for public comment. This will allow the 
public to examine proposed changes, provide comments, and suggest 
changes. This will also allow HUD to more frequently revise the 
Standards than rulemaking would allow, thereby allowing for increased 
sensitivity to changing technologies and advancing scientific 
understanding of building science and public health and safety.

V. Changes and Clarifications to the NSPIRE Standards

    After considering comments received on the proposed NSPIRE 
Standards notice, feedback received through the NSPIRE demonstration, 
and feedback received through input from HUD partners, industry 
stakeholders, and the public for development of these final NSPIRE 
Standards, HUD is now publishing this Final Standards Notice.
    HUD received comments on numerous Standards and deficiencies in 
response to the NSPIRE proposed Standards notice. Below, HUD discusses 
major changes made from the NSPIRE proposed Standards notice and 
discusses some of the comments HUD received. In addition to the broader 
comments addressed below, numerous additional technical comments were 
received, and those technical comments were integrated into the 
revision leading to the final version of the NSPIRE Standards.

Smoke Alarms

    Consistent with the NSPIRE Final Rule, the Smoke Alarm Standard 
incorporates prescriptive locations for the installation of smoke 
alarms. These Standards are consistent with National Fire Protection 
Association (NFPA) Standard 72--National Fire Alarm and Signaling Code. 
This will introduce new requirements for smoke alarms by requiring 
installation on each level and inside each sleeping area. This is 
aligned with the incorporation by reference of National Fire Protection 
Association Standard 74 or any successor standard thereto (this 
successor standard is currently NFPA 72) in the National Fire 
Protection Act of 1992 (Pub. L. 102-522; 15 U.S.C. 15557) and of NFPA 
72 and successor standards in the Public and Federally Assisted Housing 
Fire Safety Act of 2022,\4\ which was enacted after the publication of 
the proposed NSPIRE Standards notice. The NSPIRE Smoke Alarm Standard 
does not require that the smoke alarm have a sealed battery; however, 
upon the effective date of the Public and Federally Assisted Housing 
Fire Safety Act of 2022 on December 29, 2024, which is two years after 
the date of enactment, sealed batteries will be required.
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    \4\ See section 601, ``Public and Federally Assisted Housing 
Fire Safety Act of 2022'' of Title VI of Division AA, Financial 
Services Matters, Public Law 117-328, 136 Stat. 4459 (2022).
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    Commenters raised concern about the cost of installation of smoke 
alarms in properties where smoke alarms are not currently installed.
    HUD believes that smoke alarms are essential to resident safety, to 
prevent death and injury, and therefore smoke alarms are critical to 
the NSPIRE inspection process. Additionally, smoke alarms are required 
by federal law (Public and Federally Assisted Housing Fire Safety Act 
of 2022). For further discussion on smoke alarms, please see additional 
comments and responses in the Final Rule and see the RIA for analysis 
of the benefits and costs of this change in smoke alarm inspections.

Carbon Monoxide Alarms

    The Final Carbon Monoxide Alarm Standard incorporates statutory 
requirements \5\ for HUD Housing to contain carbon monoxide detectors 
either in compliance with chapters 9 and 11 of the 2018 International 
Fire Code (IFC) published by the International Code Council, or to 
comply with the standards adopted by HUD through notice. As such, there 
was a significant change from the proposed Carbon Monoxide Alarm 
Standard in the Final Carbon Monoxide Alarm Standard regarding the 
``Inside Area'' \6\ location. Classrooms are no longer included in the 
Standard as an affirmative requirement for the installation of alarms 
because the statute limits the requirement to install carbon monoxide 
detectors to units, which HUD interprets to allow HUD to require carbon 
monoxide detectors in units or in Inside Areas where such installation 
protects the Unit from potential sources of carbon monoxide originating 
from outside the unit. This Standard is substantively consistent with 
chapters 9 and 11 of the 2018 IFC, and HUD is not adopting an alternate 
standard.
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    \5\ See 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 Stat. 2162 (2020).
    \6\ As discussed in other documents, ``Inside Area'', as well as 
``Units'' and ``Outside area'' are the three areas of inspection.
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    The Final NSPIRE Rule requires compliance with HUD carbon monoxide 
standards in both the Inside Area and

[[Page 40835]]

the Unit. Deficiency 1 addresses both the Inside Area and Unit 
requirement. Deficiency 1 is categorized as a ``Unit'' deficiency 
because deficiencies will be counted per affected unit.
    A commenter suggested that the CO requirement and related 
inspection Standard go out as a separate rulemaking.
    As discussed further in the NSPIRE Final Rule, because these 
conforming rule changes merely codify a new statutory requirement, HUD 
has determined that additional notice and public comment is 
unnecessary.
    A commenter inquired if carbon monoxide detectors would be required 
if there were a fuel-burning appliance or fuel-burning fireplace 
outside, in areas not connected to the unit.
    In limited circumstances, if there are communicated openings to the 
unit, a fuel-burning appliance or fireplace outside the unit may 
trigger the CO detector requirement. However, in most circumstances, CO 
detectors will only be required if the fuel burning appliance or 
fireplace is directly attached to or within the unit or if an 
unventilated garage is attached to the unit. HUD emphasizes that if 
there is an attached, unventilated garage, CO detectors are required, 
even if there is not a fuel-burning appliance or fuel-burning fireplace 
in the unit or building.

Door--Entry

    The severity level for unit entry door has been elevated to Life-
Threatening. Although a unit entry door may not be a fire labeled door, 
it may still offer some level of protection from fire and smoke during 
the outbreak of a fire. The presence of a non-fire-labeled unit entry 
door provides residents with an opportunity to shelter in place while a 
fire is extinguished or be rescued by emergency personnel. The health 
and safety risk to a resident occupying a unit missing an entry door 
during a fire could rise to the level of Life-Threatening. 
Additionally, a missing unit entry door may negatively affect the 
physical safety and security of resident.

Egress

    Deficiency criteria for this Standard have been changed to assure 
alignment with state and local code requirements for egress. The 
Standard now aligns with those requirements by requiring bedroom window 
egress only for units in the building's 3rd level and below, and living 
room windows are not considered egress for the purposes of this 
Standard, unless there is a fire escape present.

Electrical--Conductor

    Commenters suggested that a missing lightbulb should not be 
considered a Life-Threatening condition, noting that this is a commonly 
encountered condition that is readily remedied (for example, by placing 
a new lightbulb in the socket).
    Given that a missing lightbulb has not been identified as a 
systemic safety concern in the most recent research in residential 
electrical safety, a missing light bulb will not be cited as an exposed 
conductor. However, a missing light bulb may be cited under the 
Lighting--Interior Standard as an inoperable fixture if a light bulb is 
not installed during the inspection to demonstrate the fixture is in 
proper working condition.
    The unprotected outlet Deficiency (``An unprotected outlet is 
present within six feet of a water source'') was moved from the 
Electrical--Outlet and Switch Standard to the Electrical--Ground-Fault 
Circuit Interrupter (GFCI) or Arc-Fault Circuit Interrupter (AFCI)--
Outlet or Breaker, and GFCI is now specified as a requirement, 
following the Final NSPIRE Rule. This was for clarity of presentation 
of the Deficiencies and to assure compliance with the Final NSPIRE 
Rule.
    The Electrical--Outlet and Switch Standard and the Electrical--
Conductor Standard, which were separate in the proposed Standards, have 
been combined into a single Standard for the Final Standards Notice: 
Electrical--Conductor, Outlet, and Switch. This was for clarity of 
presentation of the Deficiencies. A Deficiency has been added to that 
final Standard, ``Water is currently in contact with an electrical 
conductor'' due to the shock and fire risks associated with this 
condition.
    A commenter expressed concern that, with a ``Leak'' deficiency in 
the ``Electrical--Conductor'' Standard, remnant water stains (and not 
active leaks) may be cited as a deficiency, and suggested that only 
currently active water stains should be cited. The commenter also noted 
that certain electronic components are designed to be used in wet 
locations. Furthermore, the commenter stated that there is already a 
Leak Standard, that is not specific to leaks near electrical 
components.
    HUD agrees with these comments and has clarified the definitions to 
state that only active leaks are to be cited, and that leaks near a 
component confirmed to be waterproof would not be cited. HUD clarifies 
that a leak cited under this deficiency will not also be cited under 
the ``Leak'' deficiency.
    A commenter noted that there are existing local or state 
jurisdictions that already have requirements for electrical safety.
    HUD emphasizes that local code requirements must be met for all 
HUD-assisted housing. Please see HUD's discussion below, under ` 
``Safe'' Drinking Water,' on superseding local code.

Fire Labeled Doors

    The Fire Labeled Door Standard includes deficiency criteria 
specific to these types of doors where present. The deficiencies 
include function and operability criteria critical to the function of 
these fire safety components where present in buildings.
    A commenter suggested that the Fire Door Standard should only apply 
if there is already an existing fire door (or doors), and that there 
should not be an affirmative requirement for Fire Doors in HUD assisted 
housing.
    HUD agrees that the Fire Door Standard should only apply for Fire 
Doors that are already present and is taking this opportunity to 
emphasize that under NSPIRE Fire Doors will not be a new affirmative 
requirement. HUD believes that Fire Doors are essential to resident 
safety, to prevent death and injury, and therefore Fire Doors that are 
present will be inspected under NSPIRE and where present must operate 
effectively to reduce risk of death or injury due to fire and related 
hazards.
    A commenter stated that the Fire Door inspection may require 
additional technical training for inspectors and inquired about 
technical requirements for inspectors to inspect fire doors.
    HUD acknowledges the technical training and educational 
requirements necessary to assess Fire Doors. Training required for this 
inspection will be provided. NSPIRE Inspectors would not be performing 
a technically exhaustive Fire Door inspection themselves and would 
receive training as to when to refer potential issues to an 
appropriate, technically trained and proficient individual.

Graffiti

    The Graffiti Standard has been removed. In the proposed NSPIRE 
Standards, HUD had carried Graffiti through from prior versions of HUD 
inspection Standards. A commenter on the proposed Standards pointed out 
that Graffiti does not have a clear health and safety risk. HUD has 
reviewed this Standard and believes that it is unnecessary and 
therefore is removing it from the NSPIRE Standards.

[[Page 40836]]

Guardrails

    The Guardrail Standard includes prescriptive deficiency criteria 
for guardrails where missing above elevated surfaces to protect from 
fall hazards along balconies, stairs, ramps, decks, rooftops, hallways, 
retaining walls, and other walking surfaces.
    A commenter raised concern about the cost of installation of 
guardrails in properties where guardrails are not currently installed.
    HUD believes that guardrails are essential to resident safety, to 
prevent death or injury from falls, and therefore guardrails are 
critical to the NSPIRE inspection process. Guardrails are commonly 
required in local codes and therefore are an existing requirement under 
those local codes. Therefore, for many localities, this will not be a 
new requirement, and therefore this is not expected to have a material 
cost, under the NSPIRE rule. Please see the Final Rule's RIA for 
further explanation and analysis.

Handrails

    The Handrail Standard includes a deficiency for handrails that are 
not functionally adequate and cannot reasonably be grasped by hand to 
provide stability or support when ascending or descending stairways.
    The Handrail Standard also includes a new deficiency for stairs 
where no handrail is present and there is no evidence of previous 
installation. This deficiency is different from the deficiency for a 
missing handrail where there is evidence of previous installation. This 
deficiency will not be scored and there is no requirement for a 
correction. Given the significant health impacts resulting from trip 
and fall injuries, it would still benefit properties to address these 
risks expeditously. The data from this deficiency will be monitored and 
an affirmative requirement for handrails will be considered for the 
standards in future rule making.

Infestation

    The Infestation Standard includes deficiencies based on discrete 
levels of observed conditions, and refinement of the associated Health 
and Safety categorizations.
    Commenters discussed adverse health outcomes attributable to 
infestation in the home and asserted that there are conditions in the 
home related to infestation that should be categorized as Life-
Threatening. While some infestation deficiencies would be expected to 
have severe impacts on health and safety of the resident--for example, 
the documented effect of cockroaches on asthma--pest infestations are 
not documented to be life-threatening per the NSPIRE definition (i.e., 
presenting ``a high risk of death to the resident'').
    Commenters suggested that the Correction Timeframe should not be 
based on eradication of the pests, but should be based on initiation of 
an appropriate pest management plan. That is, all pests would not need 
to be eradicated within the Correction Timeframe, but the POA should 
have an appropriate pest management plan implemented within the 
correction timeframe.
    HUD confirms that initiation of an appropriate pest management plan 
meets the requirement for correction, with the understanding that, 
while pests may still be present at the start of the pest management 
plan, they will be managed through the pest management plan. On-going 
implementation of an appropriate pest management plan (i.e., a pest 
management plan documented and initiated prior to the inspection) will 
also satisfy this condition. Within the correction timeframe, 
documentation must be provided for the pest management plan, and this 
documentation must include: start date of the plan; servicing schedule; 
methods of pest monitoring, managing and treatment; and other factors 
as determined by HUD, the PHA, and/or other relevant authority. 
Integrated Pest Management (IPM) is strongly encouraged; IPM, broadly 
stated, uses prevention-based pest management methods, with a focus on:
     Identifying and correcting building conditions that 
contribute to infestation;
     Reducing use of pesticides (especially routine or 
untargeted pesticide application);
     Modification of hygiene and sanitation practices in and on 
the property; and
     Assessment and on-going monitoring to assure appropriate 
interventions as needed.
    A commenter suggested that additional pest species should be 
included in the Infestation Standard including ants, spiders, fleas, 
raccoons, squirrels, and snakes.
    The presence of any pest (i.e., an animal or animals with potential 
impacts on resident health and safety) would constitute evidence of an 
infestation and therefore be counted as a deficiency. The presence of 
rats, mice, cockroaches, and bed bugs specifically are each identified 
as separate deficiencies because they are common forms of infestation 
that present certain health risks and challenges that HUD wishes to 
identify specifically. This is not intended to be a complete list of 
pests, and additional pests are noted in the ``other pests'' Deficiency 
of the Infestation Standard. Therefore, those pests identified by the 
commenter are covered under the Infestation Standard and would 
constitute a deficiency if present.

Mold-Like Substance

    The Mold-Like Substance Standard includes deficiencies based on 
discrete levels of observed conditions and a ventilation or 
dehumidification requirement for bathrooms to reduce conditions 
conducive to mold growth. The Deficiency ``Presence of mold-like at 
very low levels is observed visually'' has been removed, as concerns 
were raised with regards to move-in for HCV programs (presence of LT 
conditions prevents move-in for HCV residents).
    Commenters discussed adverse health outcomes attributable to mold 
in the home and asserted that there are conditions in the home related 
to mold that should be categorized as Life-Threatening.
    HUD agrees that certain Mold-Like Substance conditions should be 
considered Life-Threatening. Presence of Mold-like Substance at 
extremely high levels in the Unit is considered a Life-Threatening 
Deficiency.
    A commenter asked whether the ventilation Deficiency in the Mold-
Like Substance Standard includes an affirmative requirement for 
mechanical ventilation, a window (in the bathroom), or a dehumidifier.
    For this Standard and Deficiency, HUD is not being prescriptive as 
to the means of reducing humidity in a bathroom. This requirement may 
be met by one or more of the methods noted by the commenter (mechanical 
ventilation, an openable window, a dehumidifier); however, other means 
may also be employed to reduce the humidity below levels conducive to 
mold growth.
    A commenter suggested that using instrumentation such as moisture 
meters and infrared cameras would add to the time it would take to 
perform the inspection, and that use of the equipment would require 
technical training.
    HUD believes that any increased inspection time would be warranted 
by the increased attention to critical health and safety hazards 
related moisture and the subsequent benefits due to the identification 
and correction of those hazards. Please see the RIA for further 
analysis.
    HUD clarifies that these instruments (moisture meters, IR cameras) 
are for use

[[Page 40837]]

by inspectors with specific training in use of those devices.
    A commenter asked if HUD would provide training for mold-related 
inspection devices. HUD will not provide training for moisture meters 
or IR cameras, but training is available from other sources.
    A commenter stated that moisture may be due to resident activities 
(e.g., varying use of vents, fans, or air conditioners to reduce 
moisture and humidity) and that moisture and humidity vary across 
climate zones, and that this variability would raise concerns about 
general applicability of a moisture-related Standard.
    Tenant activities will be covered in the administrative notice. 
Also, ambient/air moisture (i.e., humidity) would not be covered under 
a moisture deficiency; the moisture deficiency is solely limited to 
building components.
    A commenter expressed concern that use of instruments that would be 
predictive of mold risk may lead to an increase in the number of cited 
deficiencies that are not directly health and safety concerns, and that 
this may discourage landlord participation in HUD programs and 
subsequently decrease housing availability. A commenter also suggested 
that, due to the predictive nature of the deficiency (that is, the 
deficiency does not appear to cite a health or safety deficiency, but 
the potential for such a future deficiency) and associated uncertainty 
(including due to technical ability of the instrument user), this 
assessment might not provide a clear health benefit to the resident, 
while decreasing landlord participation and associated housing 
availability.
    The moisture meter will be used to record values for moist surfaces 
that have already been visually identified as apparently moist by 
visual assessment. Increased interior building moisture is a condition 
conducive to fungal growth, with associated respiratory health 
outcomes. This usage will also provide data for further assessment of 
use of moisture meters in NSPIRE inspections.
    A commenter expressed concern that recommending (and not requiring) 
a tool would introduce increased variability of inspection outcomes, as 
some inspectors may carry that particular piece of equipment (IR 
Camera, in this case), whereas other inspectors may not.
    IR Cameras are optional and will not be used on their own to cite a 
deficiency. If a thermal anomaly is observed using an IR camera, the 
moisture meter must be used to confirm whether there is elevated 
moisture present. IR camera cannot be used by itself.
    A commenter stated that use of moisture meters and IR cameras could 
be an effective proactive assessment of potential health hazards.
    HUD agrees that use of moisture meters and IR cameras would, with 
proper implementation, be expected to increase the health and safety 
related conditions of housing by adding to the available information 
related to conditions that are conducive to mold growth.

Potential Lead-Based Paint Hazards Visual Assessment

    The Potential Lead-based Paint Hazards Standard includes a 
deficiency that incorporates the HQS requirements for an enhanced 
visual assessment for deteriorated paint where there is a child under 6 
years of age residing in the unit. The Final Standard is unchanged from 
the proposed Standard; however, the administrative notice will include 
updated inspection processes for this Standard.

Sprinkler Assembly

    The Sprinkler Assembly Standard includes deficiencies based on 
discrete levels of observed conditions, and refinement of the 
associated Health and Safety categorizations. Small flecks of paint 
will not be cited as a Deficiency in the Final NSPIRE Sprinkler 
Assembly Standard. Corrosion has been added as a separate Deficiency in 
the Final Standard. These changes were based on assessments of the 
respective safety risks of these conditions.

Structural System

    The Structural System Standard includes a deficiency that captures 
signs of serious structural collapse and may threaten resident safety. 
This is different from UPCS, as serious structural deficiencies in UPCS 
were spread across the various building components (e.g., Foundations, 
Storm Drainage, Walls), whereas NSPIRE combines them into a single 
Standard. Structural deficiencies were also included in HQS, and as 
with UPCS were included as deficiencies specific to various building 
components, for interior conditions (ceiling, wall, or floor) and the 
building exterior (stairs, rails, porches, roof and gutters).\7\
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    \7\ HUD Form 52580A, https://www.hud.gov/sites/dfiles/OCHCO/documents/52580A.PDF.
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    A commenter asked about the technical qualifications required to 
assess structural systems.
    HUD acknowledges the technical training and educational 
requirements to assess structural systems. Training required for this 
inspection will be provided. NSPIRE Inspectors will not be making 
structural stability assessments and would receive training as to when 
to refer potential structural systems issues to an appropriate, 
technically trained and proficient individual.

Address and Signage

    HUD received a comment raising concern about potential cost of 
installation of address and signage (``address signage'') on buildings 
where address signage is not currently installed.
    HUD believes that adequate address signage is essential to resident 
safety, to assure that emergency services can quickly and efficiently 
find sites within a property, and therefore adequate signage is 
critical to the NSPIRE inspection process. HUD notes that Project Signs 
were required to be legible under the previous UPCS Standards.\8\ 
Please see the Final Rule's RIA for further analysis.
---------------------------------------------------------------------------

    \8\ UPCS included the following deficiency: ``Deficiency: The 
project sign is not legible or readable because of deterioration or 
damage. Level of Deficiency: Level 1: The sign is damaged, 
vandalized, or deteriorated, and cannot be read from a reasonable 
distance (for example, 20 feet).'' 77 FR 47707, 47739.
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Electrical--GFCI or AFCI--Outlet or Breaker

    Commenters raised concern about the cost of installation of GFCIs 
in properties where GFCIs are not currently installed.
    HUD believes that GFCIs are essential to resident safety, to 
prevent death and injury, and therefore GFCIs are critical to the 
NSPIRE inspection process. GFCIs are commonly required in local codes 
and therefore are an existing requirement under those local codes. 
Therefore, for many localities, this will not be a new requirement. 
Please see the Final Rule's RIA for additional explanation and analysis 
of the benefits and costs associated with this Deficiency.
    A commenter stated that using instrumentation would add time to the 
inspection, and also add the additional cost of that instrumentation.
    HUD believes that any increased inspection time would be warranted 
by the increased attention to critical health and safety hazards in the 
inspection and the subsequent benefits due to the identification and 
correction of those hazards. HUD believes that any increased inspection 
burden due to increased instrumentation requirements would be minimal 
and would be warranted by the increased attention to electrical hazards 
due to unprotected outlets, which is a critical safety

[[Page 40838]]

condition of the home, and the subsequent benefits due to the 
identification and correction of such hazards in the residence.
    A commenter suggested the word ``unprotected'' be clarified. HUD 
has clarified that ``Unprotected'' in the GFCI Standard refers to an 
outlet that is not GFCI protected.
    A commenter noted that there are local or state jurisdictions that 
already have requirements for electrical systems, including for GFCI.
    HUD notes that this would similarly be the case for nearly all 
NSPIRE Standards, as there are analogous state or local code 
requirements to the NSPIRE Standards. Please see the discussion below, 
under ` ``Safe'' Drinking Water', regarding superseding local code.
    A commenter suggested that HUD should explicitly state that 
inspectors are allowed to use either a receptacle tester with a GFCI 
test button or the integral device tester during the inspection 
process, and that HUD should not prescribe a specific tool that 
inspectors must use, but rather include a list of tools that meet 
industry standards.
    HUD will allow use of either a receptacle tester with a GFCI test 
button or the integral device tester during the inspection process. HUD 
does not plan to prescribe a specific tool that inspectors must use but 
will include a list of tools that meet industry standards.

Fire Extinguisher

    A commenter asked if tenant-owned Fire Extinguishers would be 
inspected. Tenant-owned fire extinguishers will not be inspected under 
NSPIRE.

Window

    A commenter stated that it was not clear if window screens that are 
missing or damaged would be a deficiency.
    If window screens are present and are damaged, this is an NSPIRE 
Deficiency. Window screens are not a new affirmative requirement. 
However, if window screens are present, they must be functional, and if 
there is evidence that window screens were previously installed in a 
location, the window screen must be present.

Playgrounds

    A commenter asked why there are not Standards for playgrounds in 
NSPIRE. Though not specifically limited to playgrounds, there are 
current NSPIRE Standards which would apply to playgrounds. For example, 
Trip Hazard and Sharp Edges, would apply to playgrounds.

Overgrown Vegetation

    A commenter asked if overgrown vegetation would be inspected for. 
There is not an overgrown vegetation deficiency or Standard per se in 
NSPIRE; however, if the overgrown vegetation is causing an NSPIRE 
Deficiency, for example by damaging roofing or siding materials, it 
must be addressed. Also, vegetation management may be a component of an 
IPM plan. NSPIRE's focus is on hazards in the unit. An IPM plan, 
triggered by a pest deficiency, can include modifications to the site. 
PHAs and Owners should work with an IPM consultant to tailor the IPM 
inspection and control plan to the property. Additionally, property 
owners must follow all local requirements, including those for 
vegetation management, such as for nuisance or overgrown vegetation.

General Comments

    HUD also received comments on general topics including increased 
on-site inspection time due to the new Standards, tenant-caused damage 
(including resident housekeeping), tenant-owned property, and the 
status of ``non-industry standard'' (NIS) repairs.
    HUD believes that any increased inspection time would be warranted 
by the increased attention to critical health and safety hazards in the 
inspection and the subsequent benefits due to the identification and 
correction of those hazards. Please see the Final Rule's RIA for 
further explanation and analysis. Tenant-caused damage and tenant owned 
property will be discussed in the administrative notice.
    A ``non-industry standard'' (NIS) designation is not included in 
NSPIRE. NSPIRE allows that there may be interim repairs that remove a 
health and safety hazard even though those repairs are not permanent; 
for example, a missing GFCI can have an interim repair such as blank 
cover plates. Such interim repairs must be fully repaired within a 
reasonable timeframe approved by HUD or a designee (such as a PHA). 
Interim repairs are not required to be aesthetically pleasing or 
conforming to other aspects of the building and HUD acknowledges that 
such repairs may have salient qualities \9\ that disproportionately 
attract attention, but if the interim repair effectively removes the 
health and safety hazard until full repair is performed and if full 
repair is completed within the required timeframe, then the interim 
repair is acceptable under NSPIRE. If the interim repair is implemented 
prior to the inspection, the timeline for full repair begins at the 
time of inspection, without regard to the time of the initial, pre-
inspection implementation of the interim repair.
---------------------------------------------------------------------------

    \9\ See Bordalo P, Gennaioli N, Shleifer A. 2021. Salience. 
Annual Review of Economics 14, PDF available at: https://scholar.harvard.edu/files/shleifer/files/salience.12.12.2021.pdf.
---------------------------------------------------------------------------

``Safe'' Drinking Water

    Commenters raised concern that including drinking water in the 
NSPIRE inspection would add to the inspection process (and time 
required for the inspection) and that another federal agency (EPA) and 
state and local entities already perform oversight of drinking water, 
and that a separate entity from the POA or PHA supplies the water and 
maintains the pipes, and that the technical and administrative burdens 
may be too much and that this inspection process may not be technically 
feasible given the training that may be required for water testing or 
evaluation of water quality documentation, and also that private well 
water is not currently regulated and it is unclear how private well 
water would be affected by this regulatory change.
    HUD will not inspect for water quality per se. The NSPIRE safe 
drinking water component will only entail (1) visual inspection for 
lead service lines and (2) assessment (via an information request, not 
physical inspection) if there has been a water outage or water alert 
and the response, if an outage or alert has occurred. This is solely 
for the purpose of data collection and will not be scored. This will be 
covered in more detail in the administrative notice.
    Several commenters noted that there are local and state codes and 
requirements for drinking water, and that HUD should not supersede 
those codes.
    HUD confirms that HUD inspection Standards do not supersede local 
or state code, law, or regulation. The property must meet all 
applicable property condition standards under Federal, state, and local 
law. Conforming to HUD inspection Standards does not put the property 
at risk of violating local or state code, law, or regulation. HUD 
Standards may exceed local or state requirements, but they do not 
contradict those local or state requirements. Where local or state 
codes, laws, or regulations exceed HUD Standards, the property must 
comply with the most stringent applicable standards.
    A commenter raised the concern that property owners may not be 
knowledgeable with regards to current local water alerts or the public 
water

[[Page 40839]]

system serves their property, and that this may delay the lease-up 
process.
    HUD believes that adequate levels of technical proficiency can be 
achieved with appropriate training. HUD believes, given that property 
owners manage their water bills, that they are aware of the identity of 
their local water provider.

Heating Ventilation and Air Conditioning (HVAC)

    Commenters recommended that HUD use the International Energy 
Conservation Code (IECC) and the American Society of Heating, 
Refrigerating and Air-Conditioning Engineers (ASHRAE)'s Climate 
Classification for Building Energy Codes and Standards.\10\ This 
climate map is also used by Energy Star (US EPA) and includes eight 
climate map designations based on temperature and precipitation.
---------------------------------------------------------------------------

    \10\ Briggs RS, ZT Taylor, and RG Lucas. 2003. ``Climate 
Classification for Building Energy Codes and Standards.'' PNNL-SA-
37941, prepared by Pacific Northwest National Laboratory (PNNL). A 
version of this map may be found in Antonopoulos, C., T. Gilbride, 
E. Margiotta, and C. Kaltreider. Guide to Determining Climate Zone 
by County: IECC and Building America 2021 Updates. Richland WA: 
Pacific Northwest National Laboratory. PNNL-33270. U.S. Department 
of Energy.
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    HUD appreciates the technical quality of the suggested document; 
however, it does not include all jurisdictions covered by NSPIRE (it 
only includes U.S. States, and therefore Puerto Rico, Guam, U.S. Virgin 
Islands, American Samoa, and the Commonwealth of Northern Mariana 
Islands are not covered by it). HUD will require permanent heating 
sources in all locales except for Hawaii, Puerto Rico, Guam, U.S. 
Virgin Islands, American Samoa, and the Commonwealth of Northern 
Mariana Islands; this follows the International Energy Conservation 
Code (IECC). Those localities where permanent heating sources will not 
be required are Tropical (per IECA designation).
    A comment provided that there are local or state jurisdictions that 
already have requirements for heating and cooling and recommended 
deference to local code.
    HUD notes that this would similarly be the case for nearly all 
NSPIRE Standards, as there are analogous state or local code 
requirements to the NSPIRE Standards. Please see HUD's discussion 
above, under ` ``Safe'' Drinking Water', on superseding local code.

Permanently Installed Heating Source

    A commenter suggested that minimum temperature requirements should 
only apply in ``heating months of the year,'' depending on location in 
the US, and suggested that HUD use the International Energy 
Conservation Code (IECC) and the American Society of Heating, 
Refrigerating and Air-Conditioning Engineers (ASHRAE)'s ``Climate 
Classification for Building Energy Codes and Standards.''
    HUD notes that while the NSPIRE inspection might not be performed 
at a time of the year when the resident would require heating, adequate 
heat in the dwelling must be available when required, and the NSPIRE 
inspection must be performed when scheduled, even if that inspection is 
not performed when, for example, heat would be required in the 
dwelling. Therefore, the inspection requirements must be applicable at 
the time of inspection.
    A commenter raised concern about the additional time (relative to a 
UPCS inspection) this might require.
    HUD believes that any increased inspection time would be warranted 
by the increased attention to housing temperature, which is a critical 
health condition of the home, and the subsequent benefits due to the 
identification and correction of temperature related hazards.
    A commenter noted that people with disabilities may have heating or 
cooling requirements that are above and below those of many other 
housing residents.
    HUD acknowledges that some residents may have temperature needs 
that are above or below those that are established in NSPIRE and that 
housing providers must provide for these temperature needs for tenants 
with disabilities as a reasonable accommodation. This may be dealt with 
administratively, for example by a Database Adjustment.
    A commenter stated that there are local or state jurisdictions that 
already have requirements for heating and cooling.
    HUD emphasizes that local code requirements must be met for all 
HUD-assisted housing. Please see HUD's discussion above, under ` 
``Safe'' Drinking Water', on superseding local code.
    A commenter noted that maintaining appropriate temperatures is a 
fire safety issue, in addition to a direct health risk and a direct 
influence on quality of life. For example, when a unit is not able to 
be adequately heated to safe and comfortable levels, tenants will 
necessarily utilize other, often more dangerous means to heat their 
homes.
    HUD agrees that heating requirements address fire safety concerns 
as well as health concerns.
    Commenters noted that tenant choice may affect the point-in-time 
temperature measurement in a Unit (i.e., the tenant may choose to have 
the Unit be colder or warmer than a given requirement), and therefore 
testing operability (and not indoor air temperature) of the HVAC 
equipment would be the better inspection methodology.
    This will be covered in the administrative notice. Temperature 
measurement processes and protocols will be based on IPMC 602 Heating 
Facilities (2021) \11\ and PIH Notice 2018-19.\12\
---------------------------------------------------------------------------

    \11\ Chapter 6 Mechanical And Electrical Requirements, 2021 
International Property Maintenance Code (IPMC) [verbar] ICC Digital 
Codes (iccsafe.org), https://codes.iccsafe.org/content/IPMC2021P1/chapter-6-mechanical-and-electrical-requirements#IPMC2021P1_Ch06_Sec602.1.
    \12\ Available at: https://www.hud.gov/sites/dfiles/PIH/documents/PIH-2018-19HOTMA_HeatingStandardsNoticeFinal_rev.pdf.
---------------------------------------------------------------------------

    A commenter asked about technical instrumentation, including the 
need for calibration of thermometers, and effects of location where the 
temperature is determined (e.g., different locations in a building or 
unit will have different temperatures).
    Proper training, including for calibration and for determining 
location of temperature measurements, will be available for inspectors.
    A commenter stated that there would be additional burden on the 
inspector to carry additional equipment (i.e., a thermometer).
    HUD believes that any increased inspection burden due to increased 
instrumentation requirements will be minimal and will be warranted by 
the increased attention to housing temperature, which is a critical 
health condition of the home, and the subsequent benefits to the 
resident due to the identification and correction of temperature 
related hazards in the residence.

Definition of Permanently Installed Heating Source

    Commenters suggested that ``permanent'' be contrasted with 
``temporary'' or ``portable'', and that ``permanent'' would have a 
``hard'' mounting and would be directly wired to a power source or on a 
dedicated breaker. A commenter suggested that HUD should define 
``permanently installed heating sources'' as heating sources that are 
attached to the building (i.e., secured and not portable). A commenter 
suggested that the definition should include central systems, baseboard 
heating, and permanently affixed in-wall units. A commenter noted that 
the International Property Maintenance Code (IPMC) does not define 
``permanently installed heating

[[Page 40840]]

facilities,'' but does list items that may not be considered compliant 
with the heating facility requirement; excluded items are ``cooking 
appliances,'' ``portable unvented fuel-burning space heaters,'' and 
``one or more portable space heaters.'' A commenter stated that 
``permanently installed heating sources'' could be defined as having a 
``hard'' mounting or attached to a building and one that is directly 
wired to a power source on a dedicated breaker, which would allow for a 
different definition between permanent and temporary.
    HUD agrees with the comments that a permanent heating source should 
be neither temporary nor portable and should be directly wired to the 
building's power source. HUD agrees that Permanent Heating Sources 
should include central systems, baseboard heating, and permanently 
affixed in-wall units. HUD agrees that Permanent Heating Systems should 
not include cooking appliances or portable heaters. HUD agrees that 
power source on a dedicated breaker is a part of the definition and 
though that specific wording is not specifically designated, ``safely 
connected to the unit or building electrical system'' is specified and 
HUD believes that this is inclusive of the suggested language.
    Additionally, HUD states in the comment responses in the final 
NSPIRE rule that a fireplace would not be considered a permanent 
heating source, and that permanent heating sources are: typically 
specified as being self-fueled; permanently affixed within the unit or 
building; safely connected to the unit or building electrical system; 
thermostatically controlled by the unit or building; and appropriate 
for the size of the unit.
    These comments have been incorporated into the definition of 
``Permanent Heating Source'' that is provided in the NSPIRE Heating, 
Ventilation, and Air Conditioning (HVAC) Standard.

Unvented, Fuel-Burning Space Heaters

    Multiple commenters reiterated the critical health risks of 
unvented space heaters. A commenter stated that space heaters may 
impact the internal thermometers of a building and thereby cause some 
areas to be underheated or some areas to be overheated; this will cause 
the inefficient heating of a building and will cause energy to be 
wasted, thereby impairing the energy efficiency of buildings.
    A commenter stated that space heaters per se are permitted in some 
jurisdictions and recommended that HUD should take that into 
consideration in order to avoid adversely affecting the HCV program in 
some localities.
    HUD acknowledges that tenants may be using their own space heaters. 
HUD reiterates the critical health and safety risk of unvented fuel-
burning space heaters and emphasizes the prohibition of unvented space 
heaters.

Correction Timeframes for Severe (Non-Life Threatening) Deficiencies

    Commenters recommended that, ideally, correction timeframes would 
be addressed directly in the Standards, but also acknowledged that this 
may not always be possible and that, while administrative processes may 
not be the most efficient way to adjust correction times, it is 
sometimes the only option. Commenters suggested that HUD define an 
administrative process wherein an owner may request additional time to 
make repairs for good cause, with defined criteria for what constitutes 
good cause. A commenter stated that, for numerous reasons (e.g., supply 
chain disruption, labor availability, season/outdoor weather) repairs 
may not be possible within the required timeframes.
    HUD agrees that, where possible, correction timeframes should be 
addressed in the Standards notice, but also agrees that an 
administrative process for determining a correction timeframe is 
necessary under certain circumstances. Therefore, HUD will include 
correction timeframes for each deficiency in the Standards, but will 
also provide the opportunity to adjust those timeframes when necessary 
via administrative procedure. This will be discussed in the 
Administrative Notice.
    HUD also notes that temporary relocation of residents is also an 
option if appropriate repairs cannot be performed in the required 
timeframe. Additionally, as discussed above, appropriate interim repair 
may be allowable, if the safety and health hazard is sufficiently 
corrected such that they no longer pose a severe health or safety risk 
to residents of the property, or that the hazard is blocked until 
permanent repairs can be completed. Interim repair does not remove the 
requirement for timely and full repair of the Deficiency.

The Effect of the NSPIRE Standards on Participation in HUD's Programs

    For all the above changes, HUD also sought comments on whether 
those proposed requirements, as applied to all covered housing, would 
substantially narrow the pool of available rental housing for families 
participating in HUD's programs.
    A commenter asserted that the changes may limit housing 
availability if they exceed local requirements. Commenters also noted 
that regulatory requirements, including inspection Standards, may 
discourage landlords from participating in voucher programs. Commenters 
stated that the correction timeframes may discourage landlord 
participation, and that exemptions or different time frames for natural 
disasters, tenant/resident caused damage, season (e.g., for painting 
outside), and labor or material constraints (including supply chain 
disruption) could mitigate this potential discouragement.
    Commenters stated that housing conditions should be the same with 
regards to health and safety conditions for all housing, and that 
conditions such as mold and pest infestations, among other conditions, 
would not be tolerated in people's homes and that the safety, well-
being and dignity of all must be maintained.
    A commenter expressed concern that HUD appears to be loosening 
standards for landlords through extending response timeframes. A 
commenter noted that property owners receive funds to provide decent, 
safe and healthy housing, and they can obtain additional funds to 
remedy substandard conditions, and therefore that the new NSPIRE 
Standards should be achievable.
    HUD appreciates and acknowledges the concerns and comments that 
were provided and believes that the focus on health and safety will 
benefit residents and property owners. Additionally, inspections may 
provide property owners and agents with a critical opportunity they 
might not otherwise receive to examine the conditions of their units 
and provide assurance that health and safety standards are being 
met.\13\ HUD has included consideration of potential constraints on 
housing availability when developing the NSPIRE Standards and believes 
that the NSPIRE Standards are achievable. The RIA for the final rule 
includes analysis of the costs and benefits associated with the NSPIRE 
rule.
---------------------------------------------------------------------------

    \13\ Nisar et al, 2018. Landlord Participation Study; HUD/PD&R, 
available at: https://www.huduser.gov/portal/sites/default/files/pdf/Landlord-Participation-Study-Final-Report.pdf.
---------------------------------------------------------------------------

VI. The NSPIRE Standards

    As explained in the background section of this notice, previous 
versions of the NSPIRE Standards have been published to and are 
archived on the HUD website. For the proposed NSPIRE Standards notice, 
HUD sought comment on Version 2.2 of the NSPIRE Standards and made them 
available for review via

[[Page 40841]]

the NSPIRE web page on the HUD website.
    The final NSPIRE Standards are available at: https://www.hud.gov/sites/dfiles/PIH/documents/6092-N-05nspire_final_standards.pdf.
    In addition to the NSPIRE Standards themselves, there have also 
been revisions to the Health and Safety category titles and those 
revisions are as follows:
    1. The ``Severe Non-Life-Threatening'' category is now titled 
``Severe'';
    2. The ``Standard'' category is now titled ``Moderate''; and
    3. The ``N/A'' or ``Advisory'' category is now titled ``Low''.
    Originally, HUD intended Advisory deficiencies to act as warnings 
to the property of issues which may rise to the level of a Moderate 
deficiency if unaddressed. Therefore, in the proposed Standards, 
Advisory deficiencies did not have a correction timeframe. Upon further 
consideration, however, HUD determined that these deficiencies still 
represent conditions that should be repaired, and therefore renamed 
``Advisory'' to ``Low'' and, in ``Request for Comments: National 
Standards for the Physical Inspection of Real Estate and Associated 
Protocols, Proposed Scoring Notice'' \14\ (``the proposed Scoring 
notice''), HUD proposed a relatively small point deduction for Low 
deficiencies. In these final Standards, HUD is also adding a 60-day 
correction timeframe to these deficiencies.
---------------------------------------------------------------------------

    \14\ 88 FR 18268 (April 27, 2023).
---------------------------------------------------------------------------

    Additionally, the Infestation, Mold-Like Substance, and Potential 
Lead-Based Paint Hazards--Visual Assessment Standards will include 
Deficiencies that are scored at the Life-Threatening level point 
deduction,\15\ despite being defined in the Severe H&S category. These 
Severe Health and Safety Deficiencies do not present risks consistent 
with the Life-Threatening definition, but they do present chronic 
health risks that are distinct from the other Severe Health and Safety 
Deficiencies. This chronic health risk category includes deficiencies 
that, if evident in the home or on the property, present a high risk of 
causing or exacerbating a chronic and severe health condition; severe 
health conditions include permanent disability or serious illness. This 
includes cases in which the harm has a likelihood of accruing 
irrevocably in under 24 hours and may also include risks due to longer 
term exposure. This category does not define an additional risk ranking 
or correction timeframe; it is a sub-category to be used for scoring.
---------------------------------------------------------------------------

    \15\ See the proposed Scoring notice for more information.
---------------------------------------------------------------------------

    There have also been changes in the presentation of information 
with the Standards. For each inspection Standard, the definition, 
location, deficiency, deficiency criteria, health and safety 
determination, and correction timeframe have been listed. Further, HUD 
believes that housing standards must focus on habitability and the 
health and safety of residents. Each NSPIRE Standard contains 
``rationales,'' or the reason the requirement is necessary. Rationales 
describe the potential harm that may result from a given deficiency if 
left uncorrected. Generally, rationales include the health, safety, 
and/or major functional or habitability issue, and illustrate why 
detection and remediation of the deficiency is critical to housing 
quality. Commenters noted that rationales were not provided in the 
version of the Standards provided with this notice. The rationales for 
the Standards and associated deficiencies will be available on HUD's 
Client Information Policy Systems (HUDCLIPS): https://www.hud.gov/guidance.

VII. Environmental Review

    A Finding of No Significant Impact (FONSI) with respect to the 
environment has been made in accordance with HUD regulations at 24 CFR 
part 50 which implement section 102(2)(C) of the National Environmental 
Policy Act of 1969 (42 U.S.C. 4332(2)(C)). The FONSI is available 
through the Federal eRulemaking Portal at https://www.regulations.gov.

Adrianne Todman,
Deputy Secretary.
[FR Doc. 2023-13293 Filed 6-21-23; 8:45 am]
BILLING CODE 4210-67-P