Following a sixty day comment period back in May (in which NH&RA’s RAD Group submitted comments), HUD has now opened the thirty day comment period to consider changes made since then. The following is a summary of some of the topics discussed in the Federal Register Notice:

  • Editable Documents: NH&RA’s letter suggested that closing documents be available in Word format to be easily edited. HUD mentions this comment and states that it will “consider publishing the final versions of these documents in blank and edible [sic] pdf and Word formats to simplify HUD’s review with redlines based on comparisons.”
  • Recording: NH&RA recommended that HUD permit developers to self-certify that documents have been submitted for recording or waive the requirement entirely. HUD responded that the RAD Use Agreement and Releases of Declaration of Trust and Declarations of Restrictive Covenants be recorded – recording order will be specified in closing instructions.
  • Use Agreement and Transfer of Assistance: For transfers of assistance under a new construction agreement, NH&RA asked that HUD issue a rider committing HUD to release the User Agreement if no HAP is ultimately signed. HUD decided to deal with the issue in this Notice rather than issue a rider, and has stated that HUD will authorize release of the Use Agreement if no HAP Contract is signed for these situations.
  • RAD Conversion Commitment Process Improvements: NH&RA recommended that HUD issue a draft RCC first to allow the PHA and its developer time to flag errors and make updates to expedite closing. HUD noted this comment in the Notice without a direct response as to whether the recommendation will be adopted.
  • 10(d) Certification: NH&RA made several language change suggestions, making the point that the section should be updated to provide an explicit list of open covered events or actions warranting HUD’s ongoing concern and reporting and recommended eliminating section D entirely. HUD states it has incorporated many of these proposed changes. Furthermore, HUD removed the sentence in the RCC regarding voiding the RCC for economic, feasibility, or other reasons.