Tomorrow, August 23, HUD will release a Federal Register notice that increases the unit cap for the Rental Assistance Demonstration (RAD) and sets rents for units accepted under the increase. The Fiscal Year (FY) 2017 enacted budget expanded the 185,000 unit cap on Public Housing conversions to 225,000 units and changed the September 30, 2018 deadline for submission of RAD applications under the first component to September 30, 2020.

PHAs that have already submitted Letters of Interest (LOI) to reserve their position on the RAD waiting list are eligible for award under this expansion if the PHA submits a complete RAD Application, Portfolio Award, or Multi-phase Award for the number of units identified in their LOI within 60 days of publication of this Notice. Through e-mail, HUD will identify and notify each PHA that may submit an application or request for an award as a result of the expansion. Eligible PHAs that do not submit a complete application within 60 days will forfeit their position on the waiting list.

For Commitments to Enter into a Housing Assistance Payments Contract (CHAPs) issued beyond the 185,000-unit cap and for any replacement awards made as a result of revocations or withdraws that occurred after May 5, 2017, HUD will use rent levels based on the FY 2016 RAD rent base year. However, HUD will use rent levels based on the FY 2014 RAD rent base year for replacement awards made under the 185,000-unit cap as a result of revocations or withdraws that occurred prior to May 5, 2017.

PHAs that are issued Multi-phase Awards after May 5, 2017 will have until September 30, 2020 to submit an application for the final phase of the project. HUD may approve extensions up to September 30, 2020 for Multi-phase Awards made prior to May 5, 2017 on a case-by-case basis.

This notice does not change existing RAD eligibility or selection criteria. These criteria can be found in the Rental Assistance Demonstration – Final Implementation Notice, Revision 3.

  • The notice can be found here.
  • The RAD Final Implementation Notice, Revision 3, can be found here.

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