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HUD Introduces New Guidelines for Closing RAD Transactions after RCC Made

Tuesday, May 1, 2018 - 11:30AM

The U.S. Department of Housing and Urban Development (HUD) issued a memo today announcing new guidelines for closing a Rental Assistance Demonstration (RAD) transaction after the RAD conversion commitment (RCC) is made. The memo, by HUD Office of Recapitalization Director Tom Davis, says agencies undergoing RAD conversions have 90 days to close their transactions after receiving the RCC unless granted an extension by HUD. HUD created a new “delayed submission status” for properties whose closing packages are not received by HUD two months after the RCC is issued. If there is no evidence the public housing agency is progressing to closing the transaction, the RCC may expire. The new “delayed submission status” began with RCCs issued today.

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