Important: Refinance your current loan to avoid a balloon payment prior to maturity date.  - Read more.

How to Prepare for a REAC Inspection of your HUD-Insured Multifamily Apartment Project


If you’ve been informed that a HUD REAC inspection will be completed on your multifamily apartment building, there are steps you can take to ensure a high score.


Focus on Health and Safety

Across all areas, management and ownership should focus on health and safety deficiencies first. Issues may include:

  • Blocked or unusable emergency or fire exits.
  • Water leaks on or near electrical equipment.
  • Exposed wires or open electrical panels.
  • Window security bars preventing exit.
  • Propane, methane, or natural gas leaks.
  • Expired fire distinguishers and inoperative or missing smoke detectors.

These will be some of the most important items considered during your HUD REAC inspection.


Five Key Areas to Review

As an owner or manager wondering how to prepare for a REAC inspection, there are five areas you should focus on. Review and make improvements to the following areas prior to inspection of the site:

  • The exterior of the building.
  • All common areas.
  • All units.
  • All building systems.
  • Access to all areas.

We provide issues to look out for in greater detail below to help you prepare for your REAC inspection.


The Exterior of the Building

When observing the exterior of the building, check for the following:

  • All doors should be caulked and sealed properly. 
  • All damaged frames, hardware, and locks need to be fixed and replaced.
  • When inspecting the roof, shingles that are missing or damaged should be replaced.
  • Replace any gutters and downspouts that are missing or damaged. 
  • The building walls should have all gaps or cracks repaired. 
  • Make sure all of the windows are caulked and sealed properly. 
  • All damaged or missing screens should be replaced.
  • There should not be any cracked or missing windowpanes.

Take some time to resolve any issues detailed above ahead of your HUD REAC inspection.


Common Areas

Inspect the bathrooms in the common areas to make sure there is no damage and the plumbing is working properly. The exhaust and ventilation systems need to be working smoothly. The ceilings should not have any cracks, water damage, or visible stains. All floors should be inspected for bulging, buckling, or deterioration of the subfloor. There should not be any mildew, mold, or water stains on the flooring.  



The kitchens in all units should be inspected to make sure that the cabinets and countertops are not damaged. The stoves and dishwashers should be operating properly. The refrigerators should be operable and efficient with no signs of damage. All outlets that have missing or broken cover plates should be replaced. All switches and outlets should be operating properly.


Building Systems

All building systems need to be checked before your REAC inspection; this includes the water supply, electrical system, elevators, emergency power, fire protection, HVAC, and sanitary systems.


The Property Site & Access

When inspecting the site ahead of the REAC inspection, management should check on the security and safety of fencing and gates. Observe if there is any ponding or erosion on the grounds. The parking lots should have all cracks or potholes repaired. The walkways should be safe, and any broken or missing handrails should be replaced.


Learn More About REAC Inspections and HUD Loans

You can find more tips on how to prepare for a REAC inspection with information from the HUD.

Learn more about HUD loans and other options to finance and improve your property by getting in touch with LSG Lending Advisors today.

newsletter signup