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HUD Releases Two RAD Notices

On July 3rd, the U.S. Department of Housing and Urban Development (HUD) issued two RAD Notices. The first Notice, FR-6105-N-01, implements provisions from the FY 2018 Appropriations Act, and the second Notice, FR-6106-N-01, announces changes to the RAD program that are further detailed in Notice PIH-2018-11, H-2018-05.

Notice FR-6105-N-01: Implementation of FY 2018 Appropriations Act Provisions

Notice FR-6105-N-01 outlines several changes to First Component, or public housing authority, RAD conversions (RAD 1). These changes include an increase to the cap on public housing units that may be converted under RAD 1 to 455,000 units and an extension of the application deadline for public housing authorities to Sept. 30, 2024. It also outlines the rent setting process for RAD 1 projects. For Second Component RAD conversions (RAD 2) this notice prohibits re-screening of tenants in RAD 2 transactions and the eviction of households that are over-income at the time of conversion.

Notices FR-6101-N-01 and PIH-2018-11, H-2018-05

The second Notice released by HUD outlines five changes to RAD 1 projects. Specifically, the following changes are made:

  1. Expands the authority of public housing authorities to bundle rents;
  2. Allows for the increase of the RAD contract rent paid to the owner if the RAD conversion results in the reduction of utility costs;
  3. Allows for a 25 percent increase in the allowable development fee for projects that establish a waitlist preference applicable to 25 percent of the property’s units for homeless applicants referred by a local Continuum of Care or households that are exiting permanent supportive housing;
  4. Establishes that HUD will disapprove a proposed conversion if a public housing authority intends to use Section 18 regulations to dispose units at a proposed project and HUD determines that the public housing authority’s use of both RAD and Section 18 undermines RAD’s one-for-one unit replacement policy; and
  5. Streamlines the RAD conversion process for public housing authorities with less than 50 units if certain conditions are met.

Questions or comments may be submitted electronically to rad@hud.gov. You may also contact William A. Lavy, Director of the Program Administration Division in the Office of Recapitalization within the HUD Office of Multifamily Programs at 202-708-0614.

Contact: Sara Neitzel, sneitzel@leadingageny.org, 518-867-8835