HUD Officially Expands RAD Ceiling; Implements other Changes

Monday, July 2, 2018 - 10:30am

The U.S. Department of Housing and Urban Development (HUD) will publish two notices in Tuesday’s Federal Register implementing several changes to the Rental Assistance Demonstration (RAD) program, including the official increase in the number of units eligible.

The first notice increases the number of units eligible to 455,000 as of Jan. 1, 2019, while it modifies the process under which HUD sets initial contract rents for awards after this expansion; simplifies the process to withdraw and replace existing awards for public housing agencies (PHAs); and indicates what steps PHAs must take to reserve their position on the RAD waiting list if they have already submitted letters of interest. The notice also implements provisions for the second component of RAD, concerning initial rent for conversion of rent supplement and rental assistance payment properties.

The second notice expands rent bundling to permit PHAs to rent bundle project-based voucher contracts that are both in and outside of the RAD program; 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; establishes that HUD won’t approve conversions under specific conditions; and creates a streamlined conversion option for PHAs with a housing portfolio of 50 or fewer units.