Ballard Spahr LLP: HUD Issues Instructions for Rental Assistance Demonstration

Ballard Spahr LLP: HUD Issues Instructions for Rental Assistance Demonstration

By Monique Y. DeLapenha, Amy M. McClain, and Mary Grace Folwell 

HUD has released a set of proposed program instructions-including eligibility and selection criteria-for the Rental Assistance Demonstration (RAD). Comments are due April 9, 2012. A copy of the Federal Register notice and the HUD PIH Notice are available at HUD's RAD website.

On March 14, Ballard Spahr hosted a webinar on RAD that, together with HUD's written responses to questions raised throughout the webinar, can be accessed on our website at Rolling Out RAD: Real Case Studies for Consideration. In addition, HUD has hosted four webinars to describe the RAD proposal. Links to the HUD webinars, or RADcasts, are available on HUD's RAD website.

HUD describes RAD as a demonstration program intended to test the conversion of public housing and other HUD-assisted housing to long-term, project-based Section 8 rental assistance. The program is intended to enable these properties to access debt and equity markets and to test how the properties are affected by increased housing choice for residents after the conversion.

Under the proposal, eligible properties will have the option to voluntarily convert from their current subsidy to a new type of long-term, project-based, Section 8 contract. Public housing properties or properties financed under the Moderate Rehabilitation program (Mod Rehab) could convert to either project-based Section 8 vouchers (PBV) or project-based rental assistance (PBRA) Section 8 housing assistance payment contracts. Under this component, up to 58,750 units are eligible to convert, and projects will be competitively selected by HUD, which intends to distribute awards of RAD conversion authority across geographic regions and housing authority size. Projects with higher rehabilitation needs will receive priority consideration.

An additional component of the RAD program would enable properties subsidized with Rental Supplement (Rent Supp), Rental Assistance Payment, or Mod Rehab to convert existing tenant protection vouchers to PBVs upon contract expiration or termination occurring after October 1, 2006, and no later than September 30, 2013. These conversions are not competitive, but are subject to the availability of tenant protection vouchers and are limited to no more than 1,250 units.

HUD continues to seek input on the proposed program instructions, and discussion about the application and viability of RAD among the public housing community remains active. Ballard Spahr will be submitting comments to the proposed rule and can be a resource to others considering submitting comments as well. Comments may be submitted at www.regulations.gov, using FR-5630-N-01 to find the correct page for the RAD notice in the Federal Register.

Ballard Spahr will continue to monitor and report on developments. If you wish to discuss the RAD proposal or have any questions, please contact Amy M. McClain at 410.528.5592 or mcclaina@ballardspahr.com, Monique Y. DeLapenha at 215.864.8855 or delapenham@ballardspahr.com, or Mary Grace Folwell at 202.661.7605 or folwellm@ballardspahr.com.


Copyright © 2012 by Ballard Spahr LLP.
www.ballardspahr.com
(No claim to original U.S. government material.)

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This alert is a periodic publication of Ballard Spahr LLP and is intended to notify recipients of new developments in the law. It should not be construed as legal advice or legal opinion on any specific facts or circumstances. The contents are intended for general informational purposes only, and you are urged to consult your own attorney concerning your situation and specific legal questions you have.

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