CARH’S BROADCAST E-MAIL – Regulatory Update

October 24, 2023

Rural Development sent out the following information today:

The Multifamily Housing Division of USDA’s Rural Housing Service (RHS) is launching a new way of conducting the physical inspection segment of its Tri-Annual Supervisory Visit (SV); the most important tool for monitoring a borrower’s continued compliance with the management, financial, and occupancy requirements at a multifamily property. Physical inspections will still be conducted according to the inspection standard found at 7 CFR 3560.103. However, going forward, the majority of physical inspections will be conducted by professionally trained contract inspectors instead of RHS field staff. The new process will utilize the physical inspection report form developed by the Mortgage Bankers Association (MBA) that covers all elements of the USDA inspection standard.

The new inspection process was tested by RHS from October 2022 through August 2023 by conducting 1,075 inspections through the Multifamily Physical Inspection Pilot Program (MPIPP). The final evaluation of the pilot program verified that the new inspection protocol provides accurate and objective results using a method that adheres to the inspection standard. The other two segments of the Tri-Annual Supervisory Visit, the tenant file review and the compliance review, will continue to be conducted by Multifamily field staff either virtually, or in some cases in person.

In September 2023, RHS awarded a 4-year contract to Tribal 1 Technology, LLC and its subcontractor, Bisco, Inc. In Fiscal Year 2024, Tribal 1 and Bisco will conduct approximately 3,000 physical inspections on RHS’s behalf. If one or more of your properties will be inspected this year, you will be contacted by the Multifamily Serving Specialist assigned to your property within the next few weeks. Tribal1 will reach out to schedule inspections between November 2023 and September 2024. Inspections are scheduled 28-days in advance and Tribal1 will provide detailed instructions on what you need to do to prepare for and complete the inspection. If you have questions, please contact the Servicing Specialist who has oversight of your property.

For other news and information affecting the affordable rural housing industry, please visit the Newsroom on CARH’s website,