Congress Approves Improvements to HUD's Rental Assistance Demonstration

LeadingAge has reported that the recently passed Fiscal Year 2024 Appropriations Act for the U.S. Department of Housing and Urban Development (HUD) adopted improvements to the agency’s preservation program, the Rental Assistance Demonstration (RAD).

RAD allows HUD-subsidized properties, including HUD’s affordable senior housing properties, to convert between HUD subsidy platforms to better leverage financing opportunities and preserve housing affordability for the long term. In the Appropriations Act, Congress expanded RAD eligibility to include Senior Preservation Rental Assistance Contracts (SPRACs). This will permit SPRAC properties to fully operate under standard Section 8 requirements. Congress also extended the RAD sunset date to 2029 for certain types of affordable housing and allowed converting properties to retain resident services funding.

HUD will develop implementation guidance for each of these changes and anticipates publishing a Notice this year. The Office of Recapitalization, which runs RAD, has also posted a series of “Back-to-Basic” videos on managing HUD Multifamily properties for post-conversion communities.

Contact: Annalyse Komoroske Denio, akomoroskedenio@leadingageny.org, 518-867-8866