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HOUSING AUTHORITY AGENDA REPORT
City of Anaheim
HOUSING & COMMUNITY DEVELOPMENT
DEPARTMENT
DATE: SEPTEMBER 9, 2025
FROM: HOUSING & COMMUNITY DEVELOPMENT DEPARTMENT
SUBJECT: APPROVAL OF THE FIRST AMENDMENT TO THE FY 2025- 2026 ADMINISTRATIVE PLAN TO INCORPORATE THE HUD
NATIONAL STANDARDS FOR THE PHYSICAL INSPECTION
OF REAL ESTATE (NSPIRE) STANDARDS
ATTACHMENT (Y/N): YES ITEM # 01
GOVERNMENT CODE § 84308 APPLIES: NO
RECOMMENDATION:
That the Governing Board of the Anaheim Housing Authority, by Motion, approve the first amendment to the Anaheim Housing Authority’s FY 2025-2026 Administrative Plan, in substantial form, to (i) rename the existing Chapter 8 as Chapter 8.A and (ii) adopt a new Chapter 8.B to incorporate and implement the U.S. Department of Housing and Urban Development (HUD) National Standards for the Physical Inspection of Real Estate (NSPIRE) standards; and authorize the Executive Director, or her designee, to make changes as necessary that do not substantially alter the proposed chapters.
DISCUSSION:
The Anaheim Housing Authority (Authority) is a Public Housing Agency that administers the Housing Choice Voucher (HCV) program on behalf of the U.S.
Department of Housing and Urban Development (HUD) for the City of Anaheim. The HCV program, formerly known as Section 8, is a federally funded rental assistance program for qualifying low, very low, and extremely low-income households. The Authority currently administers approximately 6,500 rental assistance vouchers.
Public Housing Agencies that administer the HCV program, such as the Authority, are required to maintain an Administrative Plan (Plan) that outlines the federal regulations and, where permitted, establishes local policies for program administration. The Authority’s Governing Board approved the FY 2025-2026 Plan on April 8, 2025.
Among the components outlined in the Plan are the protocols and standards for inspections. Compliance with inspection standards is required under the HCV program to ensure that units receiving federal rental assistance are decent, safe, and sanitary, thereby protecting the health and security of program participants. These inspections must be conducted at least once every two years in accordance with HCV regulations.
First Amendment to the FY 2025-2026 Anaheim Housing Authority’s Agency and Administrative Plans September 9, 2025
Currently, the Authority follows the Housing Quality Standards (HQS), which were established by HUD to provide a uniform inspection framework for ensuring that assisted housing meets the decent, safe, and sanitary requirements. HQS standards have long served as the foundation for inspection protocols used by Public Housing Agencies nationwide. However, HUD is replacing HQS with the National Standards for the Physical Inspection of Real Estate (NSPIRE) standards, a more standardized approach that all Public Housing Agencies must adopt by October 1, 2025. As a result, the current version of the Authority’s FY 2025-2026 Plan needs to be updated to implement the NSPIRE inspection standards.
NSPIRE
On May 11, 2023, HUD published the “Economic Growth Regulatory Relief and Consumer Protection Act: Implementation of National Standards for the Physical Inspection of Real Estate (NSPIRE)” Final Rule in the Federal Register. NSPIRE is intended to strengthen HUD’s physical condition standards and improve HUD oversight by consolidating the inspection regulations used to evaluate HUD-assisted housing as defined in 24 CFR 5.701(c), across multiple programs. On August 9, 2024, HUD issued Notice PIH 2024-26, REV-1, which extended the NSPIRE compliance deadline for the HCV and Project-Based Voucher programs to October 1, 2025.
Chapter 8 of the Authority’s Plan currently contains HQS standards, focusing on the health and safety integrity of the units receiving rental assistance. To comply with HUD’s NSPIRE implementation, staff proposes amending Chapter 8 to rename the existing content as Chapter 8.A (Attachment 1) and add a new Chapter 8.B (Attachment 2) incorporating NSPIRE inspection standards. Chapter 8.A will retain HQS standards as a reference for the remainder of the current fiscal year, since portions of the year were administered under those standards, but will be removed from the Plan next fiscal year.
The addition of Chapter 8.B reflects the Authority’s adoption of NSPIRE requirements, which introduce several significant changes from HQS, as outlined below.
Key changes under NSPIRE compared to HQS include:
Health and Safety Emphasis – Increased focus on deficiencies that directly impact resident health, safety, and functionality, rather than issues related solely to cosmetic condition or appearance. NSPIRE provides clear definitions for life- threatening conditions.
Three-Category Rating System with Defined Correction Timelines – Deficiencies are rated as “Life-Threatening” (24 hours), “Severe” (24 hours or 30 days), or “Moderate” (30 days), replacing the previous pass/fail approach and standardizing correction requirements.
Defined Inspection Area – NSPIRE defines inspectable areas as the unit, outside, and inside (common areas).
Smoke and Carbon Monoxide Detection Requirements—Smoke alarms and carbon monoxide detectors must be installed and operated properly in accordance with federal, state, and local codes3
Full NSPIRE inspection requirements are detailed in Chapter 8.B of the Administrative Plan, provided as Attachment 2.
First Amendment to the FY 2025-2026 Anaheim Housing Authority’s Agency and Administrative Plans September 9, 2025
Authority Preparation Efforts
The Authority is preparing to fully adopt NSPIRE by October 1, 2025, in accordance with HUD’s expected implementation schedule. A comprehensive implementation plan is underway, including:
Updating Chapter 8 of the Administrative Plan to replace HQS references with NSPIRE standards (Attachment 1 and Attachment 2).
Scheduling NSPIRE training and certification for its inspectors. Updating communication materials for property owners and tenants to explain the new standards and correction timelines.
Coordinating with the Authority’s software vendor to integrate NSPIRE inspection forms and scoring into the Authority’s software system for streamlined reporting to HUD.
If approved and adopted, the new Chapters 8.A and 8.B will take effect on October 1, 2025, unless HUD formally extends the implementation date. If HUD formally extends the implementation date, the Authority will implement the chapters in accordance with the revised effective date to remain compliant with HUD regulations. The remaining chapters of the Administrative Plan, which the Governing Board approved on April 8, 2025, will remain in effect. This amendment does not constitute a significant amendment as defined by the Authority in its FY 2025-2029 Five-Year Plan, which states:
A significant amendment or modification to the PHA Plan is defined as a change in program policy, including changes to rent, admissions policies, and organization of the waiting list or terminations. Exceptions to this definition will be made for changes that are adopted to reflect changes in HUD regulatory requirements or if such changes are adopted in response to a significant reduction in funding.
In closing, staff respectfully requests that the Authority’s Governing Board approve the recommendation to amend the FY 2025-2026 Administrative Plan to rename Chapter 8 as Chapter 8.A and adopt a new Chapter 8.B to implement the HUD NSPIRE standards.
IMPACT ON BUDGET:
There is no budgetary impact on the Housing & Community Development Department’s budget. The Housing Choice Voucher (HCV) program is entirely funded by federal funds provided by HUD. Preparation and implementation efforts related to the implementation of NSPIRE standards will be supported through the program’s administrative fees from HUD.
Respectfully submitted,
Grace Ruiz-Stepter
Executive Director of
Anaheim Housing Authority
First Amendment to the FY 2025-2026 Anaheim Housing Authority’s Agency and Administrative Plans September 9, 2025
Attachments:
1. Proposed Chapter 8.A
2. Proposed Chapter 8.B