HUD’s Office of Multifamily Housing, Asset Management sent out the following information on January 26, 2023:

Dear Multifamily Stakeholders,

In August 2019 HUD began implementing the NSPIRE demonstration (demo) (84 FR 43536). Throughout the demo, HUD has been collecting, processing, and evaluating physical inspection data and information, and has used this to improve and refine the NSPIRE model. Thus far participants have not received an inspection of record, meaning the result of the inspection is provisional and does not result in a traditional score that is recorded in Multifamily Housing’s system of record, the Integrated Real Estate Management System (iREMS).

On January 25, 2023, HUD published a notice containing instructions for demo participants in the multifamily housing office programs that have not yet received a demo inspection. These properties will default to an NSPIRE inspection of record or can choose instead to opt-out of the demo and receive a Uniform Physical Condition Standards (UPCS) inspection of record. The second part of the notice states that HUD is revising the end date of the demonstration period to align with the implementation of the NSPIRE final rule for all properties.

Although the demonstration has been running since 2019, the Covid pandemic has caused delays. Therefore, HUD will prioritize inspections for remaining demonstration participants and intends to conduct these inspections between April 1, 2023, and September 30, 2023. HUD will conduct an inspection using the NSPIRE standards and scoring for those participants that elect to remain in the demonstration and this inspection will be considered an inspection of record. The alternative for these properties is to opt-out of the demo, which will result in the property receiving a UPCS inspection of record.

POAs that wish to opt out of the demo should submit their request via email to no later than March 1, 2023. This email should include the name and iREMS ID number of each property that the POA is requesting be removed from the demo. Please also reach out to via email if you have any questions regarding this notice.