HUD Inspection Reform and Capital Improvement Act of 2023

HUD Inspection Reform and Capital Improvement Act of 2023

This bill establishes authorities and requirements for the Department of Housing and Urban Development (HUD) regarding employee misconduct and performance, maintenance standards for properties, property inspections, and rent adjustments.

Specifically, the bill authorizes HUD to remove or reduce the pay of certain HUD employees for misconduct or performance.

The bill also requires an entity receiving housing assistance payments for a dwelling unit to ensure that the unit is maintained to safe and sanitary conditions. HUD is required to take enforcement actions for failure to meet certain maintenance standards. If the entity fails to fully correct all deficiencies, HUD may impose various penalties, including financial penalties, requiring the immediate replacement of the project management, the reduction of housing assistance payments, or the transfer of housing assistance payment contracts.

Additionally, the bill provides for rent adjustments for certain properties receiving Section 8 project-based rental assistance, including certain properties that underwent a mortgage restructuring and were transferred to a different owner for failing to meet physical condition standards.

The bill also sets forth scoring and inspection frequency guidelines for properties receiving project-based rental assistance.

Finally, HUD must publish an annual report on Real Estate Assessment Center (REAC) inspections of properties assisted or insured under a HUD program, and the Government Accountability Office must publish recommended reforms and improvements to REAC inspections.