HUD Issues Revised Instructions for Rental Assistance Demonstration

by Ballard Spahr LLP

The U.S. Department of Housing and Urban Development (HUD) has released revised instructions for the Rental Assistance Demonstration (RAD) program. A copy of the Federal Register notice is available here, and a copy of the HUD PIH Notice is available at HUD’s RAD website.

Participation in the RAD program enables eligible public housing properties and other HUD-subsidized properties to convert voluntarily from their current subsidy to a long-term, project-based Section 8 contract. Property owners must apply to HUD for the authority to convert. HUD published a final notice implementing the program on July 26, 2012, and this revised notice changes some eligibility and selection criteria, among other revisions.

Major changes to the July 2012 Notice applicable to current RAD awardees and future applicants include the following:

  • Public housing projects and Section 8 Moderate Rehabilitation (Mod Rehab) projects may be eligible for RAD awards for multiphase projects.
  • Public housing projects and Mod Rehab projects may be eligible for an award of RAD conversion authority for a portfolio of properties. The application should include a list of all projects proposed to be included in the portfolio, and full applications for at least 50 percent of the portfolio projects.
  • Housing authorities with more than one RAD project may bundle the projects and adjust subsidy flow under the RAD authority among the bundled projects. The total funding that is used flexibly among the projects cannot exceed the aggregate amount of subsidy for the bundled projects.
  • Moving to Work (MTW) public housing agencies may use their MTW block grant flexibility to set and supplement initial contract rents under RAD, if the agency undertakes two or more RAD projects. This concept builds on the local blended subsidy programs on which Ballard Spahr has worked with a number of MTW agencies to develop. Use of MTW block grant funds to set initial contract rents will be subject to subsidy layering review and MTW continued service requirements, as calculated using the MTW baseline methodology described in PIH Notice 2013-02. Additionally, these projects may be included in the agency's MTW program.
  • Future Replacement Housing Factor (RHF) grant funds generated by other public housing units outside the RAD conversion may be repurposed to supplement RAD contract rents.
  • Initial contract rents for all applications received before December 31, 2013, including applications for portfolio or multiphase awards of RAD conversion authority to occur in 2014 or later, will be calculated based upon fiscal year 2012 funding as adjusted by the Operating Cost Adjustment Factor (OCAF). The RAD fiscal year 2012 funding calculation restores HUD offsets made to public housing agency reserves under HUD's "Operating Subsidy Allocation Adjustment."
  • The cap on available RAD conversion authority for mixed-finance units is eliminated.
  • The cap on available RAD conversion authority for Mod Rehab units is eliminated.
  • Projects selected for RAD are exempt from the Public Housing Assessment System (PHAS) upon issuance of a Commitment to enter into a Housing Assistance Payments Contract (CHAP).
  • A housing authority may include an application for RAD conversion authority in its application for Choice Neighborhoods Initiative funding.
  • Additional flexibility to use RAD for some HOPE VI or other mixed-finance properties is included in the notice.
  • Rents for public housing conversion units will not be reduced below the initial rent to owner for dwelling units under the initial Housing Assistance Payments (HAP) contract, subject to specific caveats described in the Notice.

HUD is seeking public comment on certain sections of the Notice. Comments are due by August 1, 2013, and may be submitted to HUD will issue an additional revision to the Notice if it decides to make changes based upon the comments, but is continuing to accept applications in the interim.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Ballard Spahr LLP | Attorney Advertising

Written by:

Ballard Spahr LLP

Ballard Spahr LLP on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
Sign up using*

Already signed up? Log in here

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
Privacy Policy (Updated: October 8, 2015):

JD Supra provides users with access to its legal industry publishing services (the "Service") through its website (the "Website") as well as through other sources. Our policies with regard to data collection and use of personal information of users of the Service, regardless of the manner in which users access the Service, and visitors to the Website are set forth in this statement ("Policy"). By using the Service, you signify your acceptance of this Policy.

Information Collection and Use by JD Supra

JD Supra collects users' names, companies, titles, e-mail address and industry. JD Supra also tracks the pages that users visit, logs IP addresses and aggregates non-personally identifiable user data and browser type. This data is gathered using cookies and other technologies.

The information and data collected is used to authenticate users and to send notifications relating to the Service, including email alerts to which users have subscribed; to manage the Service and Website, to improve the Service and to customize the user's experience. This information is also provided to the authors of the content to give them insight into their readership and help them to improve their content, so that it is most useful for our users.

JD Supra does not sell, rent or otherwise provide your details to third parties, other than to the authors of the content on JD Supra.

If you prefer not to enable cookies, you may change your browser settings to disable cookies; however, please note that rejecting cookies while visiting the Website may result in certain parts of the Website not operating correctly or as efficiently as if cookies were allowed.

Email Choice/Opt-out

Users who opt in to receive emails may choose to no longer receive e-mail updates and newsletters by selecting the "opt-out of future email" option in the email they receive from JD Supra or in their JD Supra account management screen.


JD Supra takes reasonable precautions to insure that user information is kept private. We restrict access to user information to those individuals who reasonably need access to perform their job functions, such as our third party email service, customer service personnel and technical staff. However, please note that no method of transmitting or storing data is completely secure and we cannot guarantee the security of user information. Unauthorized entry or use, hardware or software failure, and other factors may compromise the security of user information at any time.

If you have reason to believe that your interaction with us is no longer secure, you must immediately notify us of the problem by contacting us at In the unlikely event that we believe that the security of your user information in our possession or control may have been compromised, we may seek to notify you of that development and, if so, will endeavor to do so as promptly as practicable under the circumstances.

Sharing and Disclosure of Information JD Supra Collects

Except as otherwise described in this privacy statement, JD Supra will not disclose personal information to any third party unless we believe that disclosure is necessary to: (1) comply with applicable laws; (2) respond to governmental inquiries or requests; (3) comply with valid legal process; (4) protect the rights, privacy, safety or property of JD Supra, users of the Service, Website visitors or the public; (5) permit us to pursue available remedies or limit the damages that we may sustain; and (6) enforce our Terms & Conditions of Use.

In the event there is a change in the corporate structure of JD Supra such as, but not limited to, merger, consolidation, sale, liquidation or transfer of substantial assets, JD Supra may, in its sole discretion, transfer, sell or assign information collected on and through the Service to one or more affiliated or unaffiliated third parties.

Links to Other Websites

This Website and the Service may contain links to other websites. The operator of such other websites may collect information about you, including through cookies or other technologies. If you are using the Service through the Website and link to another site, you will leave the Website and this Policy will not apply to your use of and activity on those other sites. We encourage you to read the legal notices posted on those sites, including their privacy policies. We shall have no responsibility or liability for your visitation to, and the data collection and use practices of, such other sites. This Policy applies solely to the information collected in connection with your use of this Website and does not apply to any practices conducted offline or in connection with any other websites.

Changes in Our Privacy Policy

We reserve the right to change this Policy at any time. Please refer to the date at the top of this page to determine when this Policy was last revised. Any changes to our privacy policy will become effective upon posting of the revised policy on the Website. By continuing to use the Service or Website following such changes, you will be deemed to have agreed to such changes. If you do not agree with the terms of this Policy, as it may be amended from time to time, in whole or part, please do not continue using the Service or the Website.

Contacting JD Supra

If you have any questions about this privacy statement, the practices of this site, your dealings with this Web site, or if you would like to change any of the information you have provided to us, please contact us at:

- hide
*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.