Yesterday, HUD issued Notice H 2019-09, which replaces the prior HUD notice governing the Rental Assistance Demonstration (RAD) program (HUD Notice 2012-32, REV-3). This Notice will govern all pending RAD conversions under Component 1 (conversions of public housing units) and Component 2 (conversions of Mod Rehab, RAP, and Section 202 PRAC units). Except for several changes that require a 30-day comment period, the terms of this Notice are effective immediately and will govern all RAD conversions that have not yet closed. If requested by the applicant, HUD may apply provisions from prior versions of this Notice for projects that are anticipated to close soon.
Overall, the changes enacted by this Notice create new opportunities for PHA collaboration and rent bundling, provide additional guidance regarding transfers of assistance, expand resident rights, create a few additional steps in the RAD conversion process, and provide implementation guidance for RAD-for-PRAC conversions.
For a summary of key changes to RAD Component 1, please click here. For a summary of key changes to RAD Component 2, please click here.
