HUD Releases Faircloth-to-RAD Guidance; Could Lead to 220,000 Deeply Affordable Units

Thursday, April 15, 2021 - 10:45am

The U.S. Department of Housing and Urban Development (HUD) last week released guidance to public housing authorities (PHAs) and their partners concerning the new Faircloth-to-Rental Assistance Demonstration (RAD) process and how to make submissions to HUD. A factsheet released by HUD says the Faircloth-to-RAD pathway could result in 220,000 units of new deeply affordable housing units. The “Faircloth” limits are based on a cap in the number of public housing units the federal government will create. Many PHAs operate fewer deeply rental-assisted units than their limit. In a Faircloth-to-RAD transaction, PHAs can develop public housing units using HUD’s public housing mixed-finance program and convert the property to a long-term Section 8 contract after construction. HUD has streamlined and merged the mixed-finance development and RAD conversion process.

The Novogradac Rental Assistance Demonstration Handbook is a complete guide to HUD’s RAD program, from consideration through development and post-development compliance.