HUD Notice Expands Options to Blend RAD, Section 18

Friday, February 5, 2021 - 11:00am

The U.S. Department of Housing and Urban Development (HUD) issued a notice expanding the ways public housing authorities (PHAs) can use the Rental Assistance Demonstration (RAD) and Section 18 disposition authority together. PIH 2021-07 establishes two blends for RAD and Section 18. The construction blend establishes a sliding scale to approve a greater proportion of units for conversion under Section 18 when more construction or rehabilitation is being done at the property, replacing the former 75%-25% blend. The small PHA blend provides an option for PHAs with 250 or fewer public housing units to preserve those homes through a mix of RAD and Section 18 regardless of the level of work needed.

For a full understanding of the RAD program, see the 2021 Novogradac Rental Assistance Demonstration Handbook, which provides guidance from consideration through post-development compliance under RAD.