REAC: Housing Safety Inspections to Continue Despite Contract Changes; Senators Question DOGE Work and Planned Staffing Cuts at HUD
(Feb. 25, 2025) Following confusion among affordable housing providers receiving cancellation notices for upcoming housing safety inspections, LeadingAge has learned that inspections will continue or be rescheduled.
The housing inspections, which ensure safe living conditions throughout the U.S. Department of Housing and Urban Development’s (HUD) affordable housing stock, are coordinated by the agency’s Real Estate Assessment Center (REAC). REAC reportedly cancelled the agency’s primary contract for safety inspections during a Department of Government Efficiency (DOGE)-led initiative to review and cancel federal contracts in an effort to save money and align federal spending with presidential priorities.
LeadingAge is advising members who have received inspection cancellation notices to look out for communication about rescheduling inspections, but it is unclear on what timeline. In the meantime, if a scheduled inspection has not been cancelled, housing providers should assume it will move forward or should reach out to the inspector to confirm it is moving forward.
Recently, two key HUD staff in leadership positions at REAC resigned. The status of the contract used to develop and maintain REAC’s inspection software system is currently unclear.
U.S. senators, including Senate Minority Leader Chuck Schumer (D-NY), responded to the reported plan to cut HUD staffing by 50 percent and to DOGE’s work at the agency in two letters submitted to the Secretary and to HUD on Feb. 16th and Feb. 20th.
“Initial reports suggest no program office would be spared, with staffing cuts ranging from 10 percent to 84 percent. Some of the most drastic reductions impact areas that support highly vulnerable people, including seniors, homeless veterans and families, and people with disabilities, and provide billions of dollars to cities and counties across the country. Without sufficient staff to run these programs, community and economic development projects, disaster recovery efforts, and housing development across the country will be delayed and could come to a grinding halt,” the Feb. 16th letter says. According to the letter, the plan to cut half of HUD’s workforce is in addition to the 13 percent reduction in HUD staff that has already taken place during the new administration because of terminations of probationary staff and the deferred resignation program taken by other staff.
The Feb. 20th letter expresses concerns about closed field offices and historic staff reductions, as well as the future of HUD’s Green and Resilient Retrofit Program (GRRP) for multifamily housing, taking issue with HUD’s efforts to recall GRRP funds. “Without these funds or continued trust in HUD as a reliable partner, some properties in dire need of rehabilitation may opt out of the program and be permanently lost from our country’s already limited stock of affordable housing, in red and blue states alike,” that letter says.
LeadingAge is extremely concerned about such a dramatic reduction in HUD staff, the extent of which makes it impossible to effectively administer HUD’s programs in ways Congress intended. LeadingAge also believes that the swiftness of the planned staff reductions, reportedly to be completed by April 1st, is also an indication that programmatic needs and functions will not be adequately considered.
LeadingAge has expressed concerns to congressional offices that in addition to the GRRP funds, the latest Section 202 Supportive Housing for the Elderly awards and new Service Coordinator grants, announced by HUD on Jan. 15th, as well as Service Coordinator grant extensions due Jan. 1st, continue to be paused. As LeadingAge meets with Senate and House offices to educate them about the impact of the Section 202 and Service Coordinator funding pause and the loss of GRRP funds and half of HUD’s staff, it also urges providers to reach out to congressional offices directly as well.
Keep up with news from LeadingAge on executive orders, funding freezes, and DOGE activity here.
Contact: Annalyse Komoroske Denio, akomoroskedenio@leadingageny.org, 518-867-8866