REAC Inspections

Any multifamily housing property with a HUD insured loan and/or subsidy is subject to periodic
REAC Inspections. HUD requires these physical inspections to ensure families have housing that
is decent, safe, sanitary and in good repair. The breadth of these inspections, the complexities of
the scoring criteria and some inconsistencies with inspectors can make it difficult for managers
and owners to stay in compliance.

Inspection Score reports can only be accessed in PASS on the HUD Secure System (also known
as WASS - Web Access Secure System). Many owners and managers become frustrated with
set-up and access to reports, as a multi-step Registration, ID, Password and activation key code
is required. Contact Murphy Consulting for help.

REAC Scores are reported when submitting for previous participation approval (via a
HUD 2530). A low REAC Inspection score can result in a Flag, which may
prevent an owner or management agent from being approved to participate in future HUD

For tips on REAC Inspections, Appeals and Flags, sign up for our free monthly e-newsletter:
APPS & REAC News and Notes

EIV System

The Enterprise Income Verification System (EIV) was put in place by HUD to reduce errors and
streamline income verification at affordable housing communities that have HUD subsidies and
HUD insured loans. Its use became mandatory in 2010.

EIV obtains monthly Social Security (SS) and Supplemental Security Income (SSI) benefits data
from the Social Security Administration (SSA), and monthly employer new hires (W-4), quarterly
wage and quarterly unemployment data. This information is reviewed as part of the initial
tenant certification process, at annual re-certification and at other times as regulated by HUD guidelines.

To insure security and maintain privacy, access to the EIV System is subject to significant
extensive security requirements for HUD Secure System Users and Coordinators. Murphy
Consulting helps both new and existing Owners and Management Agents to access and monitor
User activity in EIV, with particular focus on proper file documentation and security protocols.
Whether you have one staff member who needs access to one property or a change to your
corporate Compliance Director who oversees a portfolio of HUD properties, Murphy Consulting can
help. Contact us today!


The Financial Assessment Sub-System (known as FASS, FASSUB or FASS-MF) is required to be
used by multifamily rental properties and healthcare facilities with HUD insured loans. Whether
your property qualifies to submit Owner-certified financials or must submit Audited Financial
Statements, gaining and maintaining access year to year is critical to meeting your filing
deadlines and avoiding HUD Flags for non-compliance.

FASS is part the HUD Web Access Secure System (WASS), a secure single sign-on portal that is
also the gateway for APPS, EIV, PASS and more. Its use became mandatory in 2008 to transmit
annual financial statement data to HUD for assessing the ongoing financial condition of

Newly financed properties may qualify for a Stub Period Waiver in the first fiscal year, which
allows partial year reporting to be rolled into the first full fiscal year. Waiver requests (as well as
Extension Requests) must be submitted electronically thru FASS for approval.

Murphy Consulting assists owners, management agents and auditors with HUD Secure System
access issues relating to financial reporting in FASS, including terminated ID's, Auditor
assignments, problems with incorrect Tax ID #'s, and properties not populating correctly in the
system. We can also submit your Stub Period Waiver request. Call us today! (443) 352-3526