HUD Announces Changes to RAD Implementation

HUD has published two notices in the Federal Register implementing several modifications to the Rental Assistance Demonstration (RAD), including changes that were enacted in the Consolidated Appropriations Act of 2018. The RAD program, enacted in 2012, converts public housing properties to project-based Section 8 housing by leveraging private capital and financing, largely through the Low-Income Housing Tax Credit (Housing Credit). The first notice officially increases the number of public housing units that may be awarded competitively from 225,000 units to 455,000 units (as authorized in the March omnibus), extends the deadline for application submissions, outlines the process for implementing the unit increases, and implements provisions relating to initial rent setting for conversions and the prohibition against rescreening residents. The second notice expands the ability of public housing authorities (PHAs) to rent bundle project-based voucher contracts, permits PHAs to establish project-specific utility allowances for covered projects, provides alternative developer fee limits when a PHA has a waiting list preference for families exiting homelessness and creates a streamlined conversion option for PHAs with a housing portfolio of 50 or fewer units.

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