HUD REAC Inspection Guide for Multifamily Properties

REAC inspections evaluate five inspectable areas: Site, Building Exterior, Building Systems, Common Areas, and Units. Each area is scored independently, and deficiencies are weighted by severity (Level 1 = minor, Level 2 = moderate, Level 3 = severe/life-threatening). A score of 90+ is excellent, 80-89 satisfactory, 60-79 triggers a management review, and below 60 triggers enforcement action. The scoring algorithm penalizes Level 3 deficiencies heavily — a single inoperable smoke detector can drop your score by 8-12 points.

The top REAC fail items are consistent across the country: missing or inoperable smoke detectors (Level 3), GFCI outlets missing in kitchens and bathrooms (Level 3), blocked egress paths (Level 3), trip hazards on walkways (Level 2), damaged or missing caulking around tubs (Level 2), peeling paint in pre-1978 buildings (Level 3 due to lead risk), and inoperable exterior lighting (Level 2). Most of these are under $100 per unit to fix.

Prioritize Level 3 (life-threatening) items first — they carry the heaviest scoring penalties. Walk every unit and check: smoke detectors (test and replace batteries), GFCI outlets (press test/reset), carbon monoxide detectors (if gas appliances), window and door locks, hot water temperature (120F max), and egress clearance. Then address Level 2 items: caulking, paint touch-up, hardware, weatherstripping. Budget $150-$400 per unit for pre-inspection remediation on a typical 20-year-old property.

Start preparation 90 days before your expected inspection window. Weeks 1-4: full property walk-through and deficiency list. Weeks 5-10: systematic repairs unit by unit. Weeks 11-12: final walk-through and punch list. On inspection day, ensure all units are accessible (48-hour tenant notice required), common areas are clean and clear, mechanical rooms are unlocked, and your maintenance team is on-site to address any questions from the inspector.

Tell Projects offers a comprehensive REAC preparation package: independent pre-inspection scoring by trained assessors, deficiency remediation across all five inspectable areas, and post-repair verification. Our teams have prepared 2,000+ units for REAC inspections across the Houston metro, with an average score improvement of 15-25 points. We work on compressed timelines when inspection notices arrive with short windows.