; and (B) conduct a physical inspection of a standard 1 performing property once every 3 years. (2) Standard 2 performing property The Secretary shall— (A) designate a covered property that receives a score of not less than 80 points and less than 90 points on its physical condition inspection as a standard 2 performing property; and (B) conduct a physical inspection of a standard 2 performing property once every 2 years. (3) Standard 3 performing property The Secretary shall— (A) designate a covered property that receives a score of less than 80 points on its physical condition inspection as a standard 3 performing property; and (B) conduct a physical inspection of a standard 3 performing property every year. (e) Special requirements If a covered property receives a score in the range of a standard 1 performing property or standard 2 performing property on its physical condition inspection and has been cited by the Secretary as having an exigent health and safety deficiency, the property— (1) shall only shall be designated as a standard 1 performing property or standard 2 performing property, respectively, if the owner resolves the deficiency; and (2) shall be designated as a standard 3 performing property if the owner does not resolve the deficiency. (f) Authority To delay inspections (1) In general Notwithstanding subsection (d), the Secretary may delay the physical inspection of a covered property that is undergoing a substantial rehabilitation. (2) Definition For purposes of this subsection, the term substantial rehabilitation , with respect to a covered property, means a physical rehabilitation for the long-term sustainability of the property where the costs of the rehabilitation exceed 25 percent of the property's replacement cost (calculated based on fair market value) after completion of all required repairs, replacements, and improvements.