12-1. PHYSICAL CONDITION

The physical condition of a project and the history of a project’s physical condition are important components in making the decision to renew a Section 8 contract.

The Real Estate Assessment Center (REAC) or the mortgagee performs an inspection using the REAC physical inspection protocol to determine the physical condition of a project every one to three years depending on the project’s last physical inspection score.

Depending on the physical condition of a project, the contract may be renewed, abated, terminated or allowed to expire. The course of action that the AE takes when deciding whether to renew the contract, if requested by the owner, will depend on the score the project receives on a physical inspection report(s), and whether the owner corrects and certifies that all of the deficiencies noted in the report and identified in the owner’s survey of the project have been corrected in an acceptable and timely manner.