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Multifamily Alert: New RAD PBRA notices

Posted by Reneé McTyeire on Aug 8, 2018 10:06:28 AM

Rental Assistance Demonstration: Implementation of Certain Fiscal Year (FY) 2018 Appropriations Act Provisions (FRN 6105-N-01)

This notice establishes rules for which FY rent levels are used as well as deadlines for submission of completed RAD applications. It notes that the RAD application has been significantly simplified, and highlights changes in multi-phase deadlines, the ability to withdraw and reapply for RAD to receive more current rent levels, and RAD second component changes.

Rental Assistance Demonstration (RAD) – Supplemental Guidance HUD Housing Notice (H 2018-05, PIH 2018-11)

This HUD notice revises certain portions of the RAD Implementation Notice H 2017-03 REV-3 / PIH 2012-32 REV-3.

  • Section I: Provides instructions to PHAs and their development partners, who can convert the assistance of public housing projects under the first component of the demonstration.
  • Section II: Provides instructions to owners of Mod Rehab projects, including SROs, who can convert the assistance of these projects under the second component of the demonstration.
  • Section III: Provides instructions to owners of Rent Supp and RAP projects, who can convert the assistance of these projects under the second component of the demonstration.

There is now a streamlined conversion option for small PHAs with public housing portfolio of 50 units or less, eliminating several lengthy requirements. The notice also implements a higher developer fee limit for owners with a homeless preference to incentivize more development of properties that serve or partially serve this population. Projects that have not yet closed may request HUD approval to convert under the terms of this revised notice.

RHIIP Listserv Posting #410

This notice provides guidance for owner-adopted preferences in RAD properties. Unlike in public housing, owners of RAD PBRA properties may not establish an elderly designation (i.e., a set-aside of units for the elderly). However, owners may adopt a preference for elderly individuals and/or elderly families, which permits those applicants to be selected from the waiting list and housed before other eligible families. Any preference adopted as part of the conversion that will alter the occupancy of the property is subject to an upfront civil rights review during the RAD conversion process.

Certain preferences also require approval from a HUD multifamily field office. For RAD properties, preferences that may be adopted without HUD approval include:

  • Single persons who are 62 or older over other single persons
  • Single persons who are displaced over other single persons
  • Single persons who are homeless over other single persons
  • Single persons with disabilities over other single persons

Preferences that require approval from a HUD field office include but are not limited to:

  • Elderly families
  • Near-elderly single persons
  • Near-elderly families

Learn more about multifamily program compliance

Topics: RAD, PBRA, seniors and elderly, Knowledge Base

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