Current Issues With REAC Online Systems, ID Problems, and Single Audit Threshold

⭐March 26th Update⭐ – CURRENT ISSUES WITH REAC ONLINE SECURE SYSTEMS

Updated information includes:

  • HUD’s Official REAC-TAC System Issue Update (with additional info from AHACPA)
  • HUD’s Official OMB Single Audit Threshold Workaround
  • AHACPA will post additional updates here as they become available

REAC-TAC System Issue Update

Today (March 26, 2026) HUD Multifamily Asset Management sent an email to individuals subscribed to email updates. A web version of the email is available here along with the ability to subscribe to future notifications.

HUD Multifamily recognizes that the Real Estate Assessment Center Technical Assistance Center (REAC-TAC) has experienced limited accessibility in recent weeks. To support owners and auditors working to reset passwords and file Annual Financial Statements due March 31 through HUD’s Financial Assessment Sub System (FASS), the following information is provided.

All previously inactive accounts have reactivated and passwords reset. Owners and auditors should now be able to follow the standard process to reset passwords themselves and access the FASS system. Users who reset their passwords recently may need to complete the process again [emphasis added]. Password reset instructions are available at www.hud.gov/reac or click here to go directly to the password reset screen in Secure Systems. To reset your password, you will need the User ID, Last 4 of SSN, mother’s maiden name, and the user’s first and last name.

We understand that the REAC-TAC system issues may affect some users’ ability to file Annual Financials before the March 31 deadline. Please make every reasonable effort to file accurate financials when they are due. If that is not possible, you may request an extension by contacting your assigned Account Executive after March 31 [emphasis & link to AE added].

HUD’s reactivation of FASS System IDs should resolve most outstanding REAC-TAC cases.

    • Inactive IDs: We have found some IDs remain inactive.
    • Password Reset Problems:
      • The password reset link will not work if the ID is inactive.
      • The reset password form is case-sensitive. The user’s first and last name must usually be entered in all caps. The mother’s maiden name may be all caps or not, you might have to experiment.

Did you know?

► Every time you email [email protected] it creates a support ticket. Every time you leave a voicemail message for REAC-TAC it creates a support ticket. Repeated emails and phone calls for the same issue will cause a delay in response.
► Not every issue requires the help of, or can be fixed by REAC Tech Support. Some issue require the account
executive. See 📗REAC Tech Support – DIY Edition.pdf
► You can track the status of your REAC-TAC support tickets online at the REAC TAC Customer Community Portal.

Official Workaround For Non-Profit Owner Certified Submissions

REAC posted the following guidance for those that have Federal expenditures ≥ $750,000 but < $1,000,000. This notice is found on the Legal Warning screen after logging into REAC, and again on the FASSUB Announcements screen.

Effective immediately, until FASSUB Secure Systems has been updated to accommodate the OMB Single Audit Threshold increase of $1 million in federal expenditures, Non-Profit owners who hold a mortgage plus subsidy greater than $750,000 but less than $1 million in federal expenditures, are encouraged to submit an Owner Certified Financial Statement greater than $750,000 (OC > $750K) to avoid being flagged as a non-filer. Once the OC>$750K is submitted, owners should submit a waiver to defer the Audit Requirement through the Administrative Request feature in Secure Systems. This will prevent the 9-month audit requirement. Detailed instructions for submitting a Waiver can be found at:  https://www.hud.gov/sites/dfiles/PIH/documents/Ch09_Admin_Requests-Final.pdf

CURRENT ISSUES WITH REAC ONLINE SECURE SYSTEMS: The following information was posted March 13, 2026

ID Maintenance

With the REAC financial statement submission deadline quickly approaching, we are receiving an unusual amount of calls and emails regarding issues accessing REAC’s online Secure System. The majority of these issues are due to inactive or forgotten REAC User IDs. For most CPAs, the REAC system is used for only about one month a year. HUD’s system automatically deactivates IDs with no activity for 90 days. This is not a new problem.

This year it is much more difficult to receive assistance from the REAC Technical Assistance Center (TAC). Many have made multiple phone calls and/or emails without response. It appears that staffing cuts are having a significant impact on REAC’s ability to respond.

However, most CPAs can get their IDs reactivated simply by contacting their respective clients, who can reactivate the IDs without REAC help. The client ID must be a coordinator!

To assist in this process, Kathy has written a step-by-step guide explaining how an individual with an active coordinator ID can reactivate CPA access and reassign IDs to the appropriate projects. Most inactive ID issues can be resolved using this guide without waiting for assistance from TAC.

📗REAC Tech Support – DIY Edition.pdf
📚 Collection of Multifamily Submission Tips & Tricks
ℹ️ REAC Technical Assistance Center

Increased Uniform Guidance Audit Threshold

Many of you have noticed that the REAC system has not been updated for the new Single Audit threshold of $1 million. The system continues to show $750,000 as the threshold. This issue pertains to both Multifamily and Public Housing. The following items should help with future submissions.

Public Housing

FASS-PH has issued a Word document that outlines their preferred approach to this issue. It can be found here.

Multifamily

If you exceed the new $1 million threshold, simply select “Greater than or equal to $750K annually” for the submission.

If you are below both the $1 million threshold and $750,000, select “Less than $750K annually.“

Problem: If you are less than the $1 million threshold but above $750,000 you cannot select “Less than $750K annually” otherwise the system will give you a validation error that states “Warning – you are attempting to submit an owner-certified submission with federal awards less than $750,000. Information within this submission indicates total federal awards exceed $750,000. This assessment is based on values submitted in accounts 2170, 2175, 2320, 5121, and 5193. To correct this inconsistency, you must go back to the main menu and “create” the submission again specifying that federal awards are greater than $750,000.“

Solution – Step 1: Select “Greater than or equal to $750K annually”, on the next screen select owner-certified. Previously entered data in the submission template will not be overwritten by this process.

Solution – Step 2: After the submission has been completed, go to FASSUB main menu and request a waiver of the audit requirement. Be sure to explain that the submission is over $750,000 but below $1,000,000 and therefore not subject to audit.

Hopefully, REAC will accept this process. As far as we can determine, it is the only workable option available at the moment.

In Summary: Because HUD has not yet updated the FASS dropdown language to reflect the new $1 million threshold, the selections below align the existing options with current federal guidance.

What should you select in FASS? (Quick Guide)

• Federal expenditures ≥ $1,000,000
Select “Greater than or equal to $750K annually”

• Federal expenditures ≥ $750,000 but < $1,000,000
Select “Greater than or equal to $750K annually” – owner certified
After completing the submission, request a waiver of the audit requirement.

• Federal expenditures < $750,000
Select “Less than $750K annually”

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