HUD Releases RAD Notice Revision 4, Implementing RAD for PRAC

HUD released Rental Assistance Demonstration (RAD) Notice (H 2019-09/ PIH 2019-23), which clarifies certain requirements of First Component RAD projects and makes some important changes with respect to resident notice requirements, streamlining RAD conversions for small PHAs, rent setting in certain PBRA projects and expands certain RAD rights to non-RAD Project-Based Vouchers (PBV) tenants in the same project.

For the Second Component, HUD implements a number of global revisions, including Davis Bacon applicability, updates a number of Mod Rehab requirements and sets September 30, 2019 as the deadline for owners of Rent Supp and RAP projects to apply for RAD conversion, with a final conversion deadline of November 30, 2019.

Under the Second Component, HUD also implements its new RAD for Project Rental Assistance Contracts (PRAC) program, which will allow Section 202 PRAC properties to convert to long-term Project Based Rental Assistance (PBRA) or PBV contracts. Under the RAD for PRAC program, an Elderly Housing Use Agreement will replace the Capital Advance and related PRAC documents, and a number of programmatic changes will occur, including distribution limitations, use of sales proceeds, reserve requirements and supportive services for the elderly. HUD released a blackline comparing the new RAD Notice to the prior RAD Notice.

HUD has scheduled a number of upcoming webinars on Revision 4:

The Notice is effective immediately, except for changes in the project eligibility and project selection criteria, which are subject to a 30-day comment period. Any new waivers or alternative requirements will take effect ten days after publication in the Federal Register.