The proposed NSPIRE Scoring Model offers a simplified and improved approach to property inspection. HUD released this proposal on April 10, 2023.
The UPCS (Uniform Physical Condition Standards) scoring model has long been the backbone of property inspections, shaping the process with its intricate system of weightings, multipliers, and limits. But there has always been room for improvement. Today, we’ll discuss a working draft of a proposed new model called NSPIRE that aims to refine and simplify the process.
The UPCS Model: A Recap
The UPCS model uses a 100-point scale, with the best possible inspection score being 100. Deficiencies generally cause the inspection score to decrease by varying amounts based on factors such as the area, sub-area, and specific item affected, with each carrying different weights.
Further, each defect contains a predetermined severity and criticality level. These levels are multiplied by the item-based weight to calculate the deduction from the total score.
Proposed NSPIRE Scoring Model
The NSPIRE model simplifies the scoring system into four steps. It aims to prevent unsafe properties from receiving a passing score, unlike the UPCS model, which can allow such properties to pass due to mechanisms of “capped” item and area weights.
The NSPIRE scoring model also proposes a Defect Impact Weights table that prioritizes defects based on their impact on the inspection score. This replaces the complex weightings in UPCS, which can sometimes lead to less important defects disproportionately affecting the score.
Draft Scoring Process
This draft NSPIRE scoring model follows a 4-step process:
Count and categorize the scorable defects by severity and location, then multiply each by its corresponding value in the Defect Impact Weights table.
Size-adjust the total defect points.
Subtract size-adjusted defect points from 100 to calculate the score.
Repeat steps 1 and 2, but consider only defects located within units.
There’s also a proposed letter grade categorization, which ranges from Grade A (good condition, least concerning defects) to Grade F (failing condition, extremely high prevalence of concerning defects). The grade assigned influences the frequency of inspection, ranging from every three years for Grade A to the highest frequency for Grade F.
Exceptions and Defect Impact Weights
Under the draft NSPIRE model, certain defects, such as Smoke Alarm and Carbon Monoxide Alarm defects, won’t be scored, in line with REAC’s long-standing practice. Some new “Affirmative” defects also won’t be scored in the first 12 months of NSPIRE inspections.
Score Calculation: Example
An example demonstrates the application of the NSPIRE scoring model. A property with 20 units sampled, 53 defects found, and none falling into the exception categories would receive a Property Threshold of Performance score of 68 (a passing score) and a Unit Threshold of Performance of 18.9, also passing.
Draft NSPIRE Sampling Plan
The draft NSPIRE sampling plan aims to increase the number of units sampled during inspections, with buildings housing more units being more likely to be inspected. It is worth noting that this plan is still in progress and being calibrated.
The proposed NSPIRE model strives for a simplified and more transparent scoring system that better reflects the actual condition of properties. The focus on Health & Safety and Unit-based defects ensures that unsafe properties cannot easily pass the inspection. The model is still in the draft stage, but it represents a step towards a more reliable and efficient property inspection system.
The proposed NSPIRE Scoring Model offers a simplified and improved approach to property inspection. HUD released this proposal on April 10, 2023. The UPCS (Uniform Physical Condition Standards) scoring model has long been the backbone of property inspections, shaping the process with its intricate system of weightings, multipliers, and limits. But there has always been […]
Are you ready for NSPIRE? As we approach October, property owners and agents are buzzing with questions and concerns about transitioning to the new National Standards for the Physical Inspection of Real Estate (NSPIRE) model. The Department of Housing and Urban Development (HUD) developed NSPIRE to provide a more comprehensive and reliable assessment of housing […]
In this week’s #TuesdayTip, our series concludes with how you can calculate your own score before your next NSpire inspection. We encourage you to read through the NSPIRE Scoring protocol, and submit your comments by April 27, 2023. Also, you can get a refresher on how NSPIRE is going to change many aspects of property management in this […]
In this week’s #TuesdayTip, we dive into what you can expect with NSpire scoring, and how it differs from REAC inspections. We encourage you to read through the NSPIRE Scoring protocol, and submit your comments by April 27, 2023. Also, you can get a refresher on how NSPIRE is going to change many aspects of property management in […]