At the 2026 National Council of State Housing Authority’s HFA Institute, housing agencies and practitioners examined NSPIRE implementation and its implications for HOME and Housing Trust Fund programs. While HOME has a future compliance deadline, NSPIRE is already in effect across much of the affordable housing landscape, and agencies should be planning accordingly.
NSPIRE, the National Standards for the Physical Inspection of Real Estate, became effective October 1, 2023 and replaced UPCS and remaining Housing Quality Standards across HUD programs. HUD designed NSPIRE to create a more consistent inspection framework focused on habitability, life safety, and building systems. For HOME and HTF, only the NSPIRE standards at 24 CFR 5.703 apply. HUD inspection scoring and weighting do not. This reinforces that the responsibility for defining property standards, inspection procedures, and training remains with participating jurisdictions and grantees.
The 2025 HOME Final Rule further refines this framework. Effective April 20, 2025, with a compliance date of April 20, 2026, the rule updates smoke detection requirements and establishes a placeholder for future carbon monoxide standards. It also allows HOME programs, in limited circumstances, to accept NSPIRE inspections conducted under other funding sources. Full alignment with NSPIRE standards is required beginning October 1, 2026, with implementation guidance available through HUD Exchange.
It is also important to be clear about LIHTC. NSPIRE is already required for LIHTC properties when HUD oversight applies, including developments with layered HUD funding or HUD assisted components. Many LIHTC properties have been operating under NSPIRE inspections since 2023. For agencies administering both LIHTC and HOME, the transition is less about adopting a new standard and more about extending an existing one.
How Development Costs Fit into the NSPIRE Transition
NCSHA highlighted that historically high construction and soft costs are reducing production and creating program vulnerabilities. In response, states are being urged to take additional steps to contain costs and improve consistency across programs. NCSHA’s updated Recommended Practices in Housing Credit Administration encourage agencies to refine development cost limits and reassess developer and professional fees. They also recommend revisiting QAP design and construction standards to reflect current market conditions. The presentation featured state examples such as cost dashboards, predictive cost models, third-party construction cost reviews, and streamlined application and underwriting processes. Industry coverage has noted that these efforts are increasingly critical to sustaining affordable housing production.
NSPIRE has direct implications for development costs. Clear inspection and property standards reduce uncertainty, limit rework during construction and operations, and support efficient long-term oversight. Agencies can often reduce costs by reassessing design and environmental requirements while still meeting NSPIRE and local code expectations.
Implications for Agency Operations
NSPIRE readiness and development cost oversight are closely linked. Aligning inspection standards, underwriting assumptions, and design requirements helps agencies manage risk and control costs across programs.
ProLink Solutions supports housing agencies implementing NSPIRE and applying consistent standards across LIHTC and HOME. Our platforms are designed to support NSPIRE based inspections and program specific workflows without adding complexity. For agencies already using NSPIRE in LIHTC, extending those processes to HOME is typically an incremental change.
NSPIRE is already in effect, HOME refinements began in 2025, and full HOME compliance is required by October 1, 2026. Reach out to ProLink Solutions today to learn how our tools can help your agency prepare for NSPIRE, streamline compliance, and support effective cost oversight across programs.
