- HUD has terminated its full team of internal inspectors, who helped oversee the safety of more than 5M federally subsidized housing units.
- The move follows furloughs tied to the government shutdown and worsens an existing inspection backlog dating back to the pandemic.
- Though private contractors perform most physical inspections, the fired staff managed scheduling, oversight, and compliance—critical for meeting federal housing laws.
- The decision raises serious concerns about unaddressed issues like lead exposure, mold, and habitability standards in public and voucher-supported housing.
A Sudden Cut That Leaves A Gap
In a sweeping staff reduction, the US Department of Housing and Urban Development (HUD) eliminated its entire internal inspections team, reports TheRealDeal. More than 90 employees from HUD’s Real Estate Assessment Center (REAC) were let go during the layoffs. The move effectively ends HUD’s in-house capacity to coordinate, schedule, or manage compliance checks for federally assisted housing.
The layoffs come shortly after the team received furlough notices amid the recent government shutdown.
Millions Of Units, No One At The Wheel
HUD’s internal inspectors oversaw safety evaluations across public housing, subsidized multifamily buildings, and voucher-assisted private rental properties. Third-party firms perform most on-site inspections, but HUD staff scheduled reviews, verified results, and handled follow-ups. Without that team, the agency now faces major uncertainty in enforcing basic housing standards and health-related compliance. That includes issues like missing smoke detectors, broken locks, mold, or lead-based paint—problems that require regular federal oversight.
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Backlog Gets Worse
Even before these cuts, the inspection system was under stress. The COVID-19 pandemic created a significant backlog, with many properties going years past their mandated review date. Federal law requires subsidized housing to be inspected at least once every three years.
Compounding the issue, HUD recently removed public access to inspection scores and training materials due to a website overhaul, further muddying transparency and accountability.
Warnings From The Field
Housing advocates and public housing authorities are sounding the alarm. Without trained staff to review or enforce inspection results, problems like mold, pests, and lead paint exposure may go unchecked.
“There’s concern that HUD may not have the capacity to ensure that they’re following their statutory requirements,” said Crystal Wojciechowski of the Public Housing Authorities Directors Association.
What Comes Next
HUD has not clarified how it will maintain inspection schedules moving forward. A short 28-day window remains for pre-scheduled contractor inspections, but it’s unclear how those will be managed without agency oversight.
With no internal team in place and mounting safety concerns, HUD may face growing pressure to explain how it plans to uphold the health and safety standards required by law.
