The Real Estate Assessment Center (REAC) was introduced by the U.S. Department of Housing and Urban Development (HUD) in 1998 and covers all Section 8 housing, public housing, HUD-insured multifamily housing and other HUD assisted housing properties. REAC includes a physical inspection using a defined uniform physical condition standard to ensure that the housing is decent, safe, sanitary and in good repair.

Inspections occur annually unless the most recent score was 80 (out of 100) or better. Properties receiving scores of 80 – 90 are inspected every two years while properties receiving a score of 90 or more are inspected every three years.

However, skilled nursing facilities (SNFs) are currently not subject to routine REAC inspections. The reason for exempting SNFs from REAC inspections is that they are already subject to approximately annual Centers for Medicare & Medicaid Services (CMS) inspections.  Any licensed facility that is not being surveyed by CMS or designee would be subject to REAC inspections.

Inspection Checklist

• The REAC Dictionary of Deficiency Definitions (PASS) includes a full list of items to be inspected during a REAC inspection: https://www.hud.gov/sites/documents/DOC_26281.PDF
• A REAC inspection checklist can be found in the following link: https://www.hud.gov/sites/dfiles/PIH/documents/inspectionchlistupdate.pdf

Links to Top REAC Deficiencies

• Top 25 Deficiencies with #s 
• Top 20 Deficiencies           
  

​ Residential care facility owners (borrowers) must submit quarterly and year-to-date financial statements to lender within 60 calendar days of the date of the end of each fiscal quarter.  In addition, annual financial statements are required to be filed with lender and HUD within 90 days of the fiscal year close in accordance with 24 CFR 5.801 and 24 CFR 200.36.