Extension of RAD Application Date:  Public Housing Agencies (PHAs) may apply to convert public housing assistance under RAD through September 30, 2029. This impacts both stand-alone applications and applications for Portfolio Awards
 

Contract Rents Adjustments: The Notice establishes a waiver process for requesting a rental adjustment by methods other than the OCAF. This waiver process is available for post-conversion properties experiencing extraordinary circumstances where the OCAF is not fully capturing operating cost increases. Further, the Supplemental Notice clarifies that after 20 years, RAD Project-Based Rental Assistance (PBRA) contracts will renew at standard Section 8 rent levels in accordance with the Multifamily Assisted Housing Reform and Affordability Act (MAHRAA) renewal options and Project-Based Voucher (PBV) contract rents will revert to the rent adjustment rules in PBV regulations.
 

Simplifying RAD and Section 18 Blends: HUD is now able to convert the tenant protection voucher (TPV) assistance generated from a RAD/Section 18 Blend. This means that: 

•    All units in a Blend follow the RAD Notice requirements to enter into a single RAD Housing Assistance Payment (HAP) Contract at closing and will be covered under uniform RAD terms and requirements (e.g. Rehab Assistance Payments).

•    A project can fully convert to a RAD HAP contract under either PBRA or PBV.

•    Prior RAD and Section 18 Blends that closed under a PBV HAP Contract and a RAD PBRA HAP contract have the ability to consolidate assistance onto a single RAD PBRA HAP contract.
 

Continuing the Availability of Services and Strengthening Resident Protections: The Supplemental Notice exercises new statutory discretion to ensure residents can continue to benefit from the ongoing availability of resident services programs, including Jobs Plus, Resident Opportunities and Self-Sufficiency (ROSS), and Family Self Sufficiency programs. Further, consistent with the recently published rule 30-Day Notification Requirement Prior to Termination of Lease for Nonpayment of Rent, the Supplemental Notice increases the advanced notice that a tenant in a RAD PBV or RAD PBRA property facing eviction for nonpayment of rent must receive from 14 days to 30 days. Finally, the Supplemental Notice provides additional guidance on security deposits, pet occupancy, and the use of plain language in resident leases.
 

Underwriting Standards and Financing Plan Requirements: To ensure that RAD properties are sustainable and financially stable for the long term, the Notice strengthens the Financing Plan requirements and feasibility benchmarks for public housing properties undergoing a RAD conversion.  Further, to ensure that conversions can occur on a predictable and timely basis, all public housing conversions will be subject to an Environmental Review under Part 50, performed by HUD.
 

Conforming Changes for the Housing Opportunity Through Modernization Act (HOTMA) PBV Rule: In order to ensure the continuity of RAD program requirements, this Supplement Notice makes technical changes to the RAD Notice to update regulatory references and language and certain non-technical changes to resolve conflicts between the RAD Notice and the HOTMA Voucher Final Rule (the Housing Opportunity Through Modernization Act of 2016 – Housing Choice Voucher and Project Based Voucher Implementation; Additional Streamlining Changes, published in the Federal Register on May 7, 2024 at 89 FR 38304, as corrected in a publication in the Federal Register on May 28, 2024 (89 FR 46020) and effective as of June 6, 2024.)