Earlier this week HUD issued the following memo, which sets deadlines for RAD closing in CY2016. For efficient closing of RAD transactions in November and December, public housing authorities and developers should remain mindful of these processing deadlines. Planning ahead and incorporating the following issuance dates into operating schedules will help ensure your projects advance in a timely manner:
TO: CHAP Awardees
FROM: Thomas R. Davis, Director, Office of Recapitalization
DATE: May 3, 2016
RE: Schedule Requirements for Closing RAD Transactions in 2016
Schedule Requirements for Closing RAD Transactions in 2016
This memo is to inform you of the Office of Recapitalization’s schedule for processing and closing RAD transactions before the end of the 2016 calendar year. If you intend to close your RAD transaction by November 30, 2016 (in order to have an effective HAP date of December 1, 2016) or by December 31, 2016, you must meet or beat the following schedule. We are providing advance notice of these dates to ensure that you plan accordingly to lead to a successful closing.
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To close by 11/30/16
Complete this step on or before
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To close by 12/31/16 Complete this step on or before |
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Upload all required Financing Plan documents* |
July 1 |
August 1 |
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Receive a RAD Conversion Commitment (RCC) |
September 1 |
October 1 |
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Submit complete closing package |
September 15 |
October 15 |
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All RAD documents approved and ready for HUD signatures |
November 18 |
December 16 |
*Note: For FHA-insured financing, the FHA application should also be submitted on or before the date associated with the Financing Plan submission. Make plans with your FHA lender to keep your financing on track.
Please note that adherence to these dates does not guarantee that HUD will be able to accommodate your November or December closing. We expect those months to be the program’s busiest-to-date. If transaction volume exceeds our processing capacity, as we expect it will, HUD may prioritize our processing of transaction documents based on several factors, including:
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The prioritization categories for CHAP processing listed in Section 1.11 of the RAD Notice.
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Critical deadlines beyond the control of the PHA and its development team. Note that HUD will require documentation of these deadlines when considering this factor.
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De-prioritization of transactions in which the PHA has needed an extension of the original RCC expiration date.
We strongly recommend working toward closings prior to October to reduce the risk of potential delay due to increased volume in the final months of the year.
