On May 12, 2026, HUD sent a memo to all public housing authorities effectively shutting down the Restore-Rebuild Initiative (formerly known as Faircloth-to-RAD).

  • For PHAs that have not requested a Notice of Anticipated RAD Rents (NARRs) as of May 12, no new NARR requests will be accepted.
  • For PHAs that have requested NARRs, HUD will continue processing requests for NARRs that have been received as of May 12, but that have not yet been issued.
  • For PHAs that have received or will receive a NARR, the NARR will be void 90 days after the date of this memorandum unless the PHA has either:
    • Received HUD approval for mixed-finance development or public housing acquisition under applicable regulations;
    • Submitted a substantially complete mixed-finance development proposal or public housing acquisition proposal to HUD for the proposed project; or
    • Demonstrated through documentation from a state allocating agency that an application for Low-Income Housing Tax Credits for the proposed project has been submitted and is under review or has been approved.
  • HUD will not issue a RAD Conversion Conditional Approval (RCCA) for a proposed project that does not demonstrate that it has met one of these criteria.

Go Deeper:

  • See Klein Hornig’s write-up on the memo ending the Restore-Rebuild Initiative.
  • See Nixon Peabody’s write-up on the President’s FY27 budget request that proposes to permanently reset each PHA’s “Faircloth” cap to the number of public housing units it has as of October 1, 2027
  • The limits were orignially established as an amendment to the US Housing Act of 1937 by Sen. Duncan McLauchlin “Lauch” Faircloth (R-NC), which states that HUD cannot fund the construction or operation of new public housing units with Capital or Operating Funds if the construction of those units would result in a net increase in the number of units the PHA owned, assisted or operated as of October 1, 1999.
  • The current Faircloth limits can be found here.