Can anyone say "kickback" ? 

Nelson
I can’t for the life of me understand this cost unless they are going to re-inspect all 1662 within a 12 month period. What are these people charging per house for these inspections? Small houses take about 30 minutes to inspect unless they are really bad. Apartment houses take about an hour. If a part time guy could take care of this job for CONSOC what has changed to drive up this cost? As you and I both know the worst thing about this HUD job is the paperwork. I would love to see the company inspection form that they are using it must be the standard HUD form.  

Here is the web link showing the basis Section 8 13 point inspection

Recent response from a local, respected real estate professional:

 I read the web link you sent me from Scranton, PA about the process they took in hiring a company to do their HQS inspections.

 Is the Section 8 program part of the Home program or are these two different programs? Are they run the same if they are different?  HUD Section 8 and HOME Programs are separate.  However, HQS requirements are the same for both.

Also, If I remember correctly, the HQS inspection is the same for Home program and if it applies, to the Section 8 program.  Correct.

Also, if they are the run the same, how many inspections have to be performed in Middletown under the Section 8 program? How many units are rented each year – turnover – and thus an inspection of the property is needed. I am assuming that Middletown only intends to inspect houses or properties that are vacated then rented again. I do not see where they are going to inspect every home or property – roughly 1600 units every year – that’s about 31 units each week.  It takes about 30 minutes to conduct each HQS property survey.  That means 50 to 60 inspections could be performed each week.

Now, if that is the plan, to inspect every unit each year, then $140,000 divided by 1600 units is $87.50 a unit to inspect – that is a pretty good price. But if Section 8 has only say 200 units a year turnover and they are only going to inspect those 200 units, then $140,000 divided by 200 units is $700.00 per unit inspection – WOW !!!!  In the real estate world a whole home inspection done by a certified inspector takes about 3-4 hours to complete and usually costs about $300.00. Those inspections are about 30-40 pages long and cover about everything in a home.

Anyway, just some fuel for thought. I would like to know how many inspections are going to be done each year for $140,000. If my guess is even remotely close at 200 units a year, then the City of Middletown has been taken badly. Our federal dollars are totally being wasted by a very poor inspection program.  C.O.N.S.O.C. has charged the City of Middletown (per their request) only for a part-time Housing Inspector over the past 20 years.  That expense is a fraction of $140,000.

I hope I have all my figures correct, If not I’m sorry.

3. Fee Structure:

TIG shall submit monthly billing statements. Terms shall be 30 days net.

Fees are:

Annuals $ 48.00 each

Re-inspections $ 38.00 each

No Shows $ 35.00 each

Initial/Complaint Inspections $ 58.00 each

Emergency Re-inspections $ 48.00 each

Included in the Inspection Fees above are all reports and notifications required under this contract. Specifically, the inspection fees above include a $4.00 charge per inspection for simultaneous reporting to both the Agency and the Administrator and an additional $9.00 per inspection for printing and mailing of all notifications to the Agency, Consoc, the Owner, the Tenant and TIG’s record keeping requirements.

(The above is shown right in the 10/20/2009 Workbook (page 49 of 76 in the PDF format), page 6 of Exhibit A of Ordinance No. O2009-88, for all of you who always distrust me and have to see it for yourselves!)

 

Anyway, regardless of whom I like the most, Nelson, I must be fair.  You should back off on this one, in my opinion these rates are reasonable.

 

PS to Doug Atkins:

See, Sir, I really DO try to get at the truth, regardless of who it helps!!!  

Folks may not like my style, but my research is usually first rate.

 

November 3, 2009 • Approved a contract with The Inspection Group of Westerville to provide housing quality inspections for the city’s Section 8 subsidized housing program. The contract has a provision not to exceed $140,000 a year.

I’m willing to bet on this $140,000 for 3.000 inspections as NOT being the total cost of these Section 8 inspections in 2010. The math even seemed a little fuzzy to council members with a final decision of “we can always fire them”.

Thanks Pacman
I just noticed that you posted the link to the Section 8 inspection form.
Yep, that is the standard form that they have been using for years.

Having this form on a laptop would cut down on paperwork time and mailing expense however you still need to inspect the property and it takes about 30 minutes to do it properly. Then you have travel time between units.

  I thought I would use this old subject thread to ask all you bloggers how you liked the introduction to your new inspection company at last night’s council meeting?
  This was painful to watch, he couldn’t even answer the questions about his own company and how the inspections are conduccted?
  I still believe these inspections will cost more than $140,000 within the next year.