The Housing Problem

Abstract
This white paper introduces Inspective®, an artificial intelligence (AI) powered platform for streamlining
housing quality inspections. As demands for affordable housing rise amid socioeconomic pressures,
optimizing oversight procedures is critical. Inspective® enables remote, mobile-based inspections by
leveraging computer vision and machine learning for automated analysis. Core functionalities span
mobile image capture, AI defect classification, report generation, and cloud deployment. Testing
indicates 80-85% AI accuracy in assessing key areas like windows, floors, walls. The Inspective® hybrid
model outperforms leading models on domain-specific inspection data while still keeping a humancentric
approach. Remote coordination via Inspective® reduces inspection costs by an estimated 33%
while improving convenience and oversight. By modernizing outdated manual workflows, Inspective®
brings housing regulation into the digital age - supporting compliance, sustainability, and resident
experience. As housing regulations expand, innovative tools like Inspective® will become essential to
harness AI's potential for social good.

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1 The Growing Demand for Public Housing Among Diverse Populations
As our society continues evolving, ensuring access to suitable, affordable housing grows increasingly
crucial. Rising costs of living now prevent many low-income families, seniors, and young professionals
from securing aligning housing options. The COVID-19 pandemic further underscored housing
availability challenges through job loss and income decline. Safe, stable housing plays a vital role in
empowering diverse, inclusive communities.

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1.1 Population Aging Increases Need and Dependence on Subsidized Housing Assistance
Over 16% of the population is currently over 65, rising to 21% by 2030 as baby boomers age (Planning
for the Housing Needs of an Aging Population, 2021). Insufficient retirement savings and fixed social
security incomes leave many seniors financially vulnerable. From 2011-2020, the number of extremely
low-income senior households eligible for rental assistance rose by 1.3 million. Estimates indicate
another 1.3 million more will qualify from 2020-2030 (housingfinance.com). Absent major increases in
housing aid, more than 4 million very low-income seniors could struggle to find affordable housing by
2030, heightening reliance on subsidies.

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1.2 Younger Generations Face Difficulty Affording Homeownership
Alongside seniors, younger demographics grapple with housing affordability. High inflation and property
prices prevent many young Americans from purchasing homes. For context, 10.9 million of 43.7 million
renters classify as extremely low-income. Just 7.3 million rental units align with those income
constraints (nlihc.org). Homeownership often represents financial stability and independence, but
inflated housing costs block younger generations from establishing secure foundations. Rampant
inflation also erodes consumer purchasing power further.

With both older and younger demographics squeezed by the housing crisis, public assistance programs
face unprecedented demands. Updated oversight methods like Inspective® can help modulate the strain
through efficient coordination. As housing needs escalate across ages and incomes, optimizing
assistance access becomes crucial.

To put things into perspective, over 10.9 million of the nation's 43.7 million renter households have
extremely low incomes. Only 7.3 million rental homes are affordable to extremely low-income
renters, assuming households should spend no more than 30% of their incomes on housing. (nlihc.org)

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2 The Importance of Housing Quality Standards (HQS) for Low-Income Housing
Housing Quality Standards (HQS), developed by the US Department of Housing & Urban Development
and adopted by communities and agencies across the country, provide widely accepted minimum
quality benchmarks needed to ensure safe, sanitary housing conditions and help maintain existing safe
and affordable housing stock. Clear HQS standards make it easier to hold property owners accountable
for meeting baseline housing conditions.

 

• Safe and Sanitary Conditions: HQS ensures that rental units meet basic health and safety standards. This includes requirements for plumbing, heating, electrical systems, structural integrity, and more. The goal is to provide safe and habitable housing within communities and ensure that low-income individuals and families have access to safe places to live and thrive.

 

• Maintenance of Affordable Housing: By enforcing HQS, housing agencies and municipalities aim to maintain the quality and affordability of housing stock available to their community and ensure that low-income individuals and families have equal opportunities. This also helps prevent substandard housing from being subsidized through federal programs.

• Accountability: HQS provides a clear set of standards that property owners must adhere to. And standards for them to meet if they want to participate in housing assistance programs. This accountability helps ensure that community efforts and taxpayers' dollars are being used to support decent and safe housing.

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As our society continues evolving, ensuring access to suitable, affordable housing grows increasingly crucial. Rising costs of living now prevent many low-income families, seniors, and young professionals from securing aligning housing options. The COVID-19 pandemic further underscored housing availability challenges through job loss and income decline. Safe, stable housing plays a vital role in empowering diverse, inclusive communities.

 

• Eligibility Determination: To receive federal housing assistance, a rental unit must pass an HQS 
  inspection. Housing agencies require these inspections to be conducted to verify that the 
  property meets the required standards. If a property fails an inspection, the owner must make 
  the necessary repairs to bring it up to HQS before tenants can use housing vouchers or 
  subsidies.

• Compliance Framework: HQS provides a standardized framework for assessing housing 
  conditions, making it easier for housing agencies and municipalities to apply consistent criteria 
  when determining safety and provides benchmarks for eligibility within assistance programs.

• Continued Reliance: As long as federal housing assistance programs exist, HQS will remain an 
  essential tool for ensuring that housing units meet basic quality standards. It helps protect the rights and well-being of low-income individuals and families.

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2.1 COVID-19 Impact on Mandated HQS Inspections
In 2020, due to the global COVID-19 pandemic, the entire world came to a standstill as this unforeseen
event caused great uncertainty and disruption in various industries, including the inspection industry.
COVID caused massive disruption to public housing authorities' ability to conduct standard in-person
inspections throughout 2020 and beyond. This disruption created backlogs and compliance issues. As a
result of these delays, potentially unsafe conditions were left undetected in units and stalled housing
placements for families in need.

Amid these unprecedented circumstances, with residents' health as a top priority we found ourselves
navigating through uncharted waters alongside over 3,300 Public Housing Authorities (PHAs) in the USA,
serving approximately 1.2 million households. It quickly became evident that sustaining inspection
operations would be an uphill battle. Initially, HUD, PHAs, and contractors adopted a wait-it-out
approach.

In November 2020, HUD recognized the urgency of the situation and adopted acceptable procedures for
conducting necessary inspections. In their notice (HUD PIH Notice 2020-31), they provided guidance to
PHA on using Remote Video Inspections (RVIs).

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2.2 Reliance on Manual In-Person HQS Inspections Alone Leaves the Entire housing Quality
System at Risk
Dependence on antiquated manual process leaves municipalities, PHAs, HUD, and the people who rely
on the funding from their programs without adequate oversight when major events such as pandemics
occur. Outdated manual inspection processed will further be a deterrent to efforts to quickly deploy
necessary funding as the demand for subsidized housing increases. Five key risks governmental housing
bodies face conducting manual, antiquated inspections include:

 

1. Health and Safety Hazards: Failure to regularly inspect properties could allow dangerous conditions like gas leaks, mold growth, or structural issues to persist undetected, putting residents at risk.

2. Legal and Compliance Failures: Without proper oversight documentation from consistent inspections, PHAs are open to potential litigation or federal audits for noncompliance.

3. Reputation Damage: Outdated procedures that handicap responsive enforcement could erode 
   public trust in governmental effectiveness as a housing provider and regulator.

4. Wasted Resources: Inefficient manual reporting and tracking processes drain inspector time and 
   staff budgets that could otherwise focus on upgrades to enrich housing.

5. Strategic Unpreparedness: Relying rigidly on manual methods exacerbates vulnerabilities to 
   external disruptions like pandemics, disasters, or technological shifts which could suddenly constrain in-person inspection capabilities.

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Rather than simply sitting back and waiting for risk to become reality, we firmly believed it was essential
for us to adapt and find innovative ways to navigate through these challenging times. While the
pandemic undoubtedly presented us with numerous obstacles, it also opened new opportunities for us
to explore. With a deep understanding and shared commitment to ensuring safe and healthy living
environments for low-income families, we recognized the risks these families faced if necessary
inspections were not completed in a timely manner.

The pandemic has challenged us personally and professionally, witnessing firsthand its immense impact
on businesses, economies, and societies worldwide. Our ability to swiftly respond and adapt to
unexpected circumstances has become paramount. In light of this, it is essential that we seize this
opportunity to reevaluate the manual inspection process. The pandemic has shown us that relying solely
on traditional methods will leave us vulnerable to future disruptions. By proactively embracing
transformation, we can equip the industry with the agility and resilience necessary to navigate the
increased demand and market uncertainty.

HQS standards and inspections will remain a cornerstone of ensuring home livability even as innovations
help streamline processes. A balanced approach leveraging technology while preserving human insight
can enhance housing quality and accessibility for all.

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For more inspection about Inspective AI application please contact us at info@inspective.io

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