What is a HUD RAD conversion?

Authorized by Congress under the FY12 HUD appropriations act, the Rental Assistance Demonstration (RAD) allows public housing agencies (PHAs) and owners of other HUD-assisted properties to convert units from their original sources of HUD financing to project-based Section 8 contracts.

What is RAD conversion commitment?

RAD Conversion Commitment – Agreement between HUD and the PHA, following HUD approval of the financing plan, that describes the terms and conditions of the conversion. • RAD Use Agreement – Document requiring that the RAD property be used for affordable housing.

What is RAD for prac?

Informally called RAD for PRAC, the new HUD program could help owners of Section 202 properties convert existing PRAC contracts to properties subsidized with project-based vouchers (PBVs) or project-based rental assistance (PBRA). Current 202/PRAC properties number more than 125,000 across the U.S., according to HUD.

When does HUD issue a RAD conversion commitment?

After HUD reviews and approves the financing plan, it will issue a RAD Conversion Commitment (RCC) to your PHA. Receiving an RCC means that HUD has approved your PHA’s RAD plans and that the property is close to completing the conversion process. CLOSING After receiving an RCC, your property will move toward Closing. After closing, your property

What does HUD RAD do for public housing?

RAD seeks to preserve public housing by providing Public Housing Agencies (PHAs) with access to more stable funding to make needed improvements to properties. Public housing units across the country need more than $26 billion in repairs. HUD refers to these repair costs as capital needs.

Why was the Rental Assistance Demonstration ( RAD ) created?

Rental Assistance Demonstration (RAD) RAD was created in order to give public housing authorities (PHAs) a powerful tool to preserve and improve public housing properties and address the $26 billion dollar nationwide backlog of deferred maintenance.

What does the HUD Rental Assistance Demonstration Program do?

The Rental Assistance Demonstration (RAD) is a voluntary programof the Department of Housing and Urban Development (HUD). RAD seeks to preserve public housing by providing Public Housing Agencies (PHAs) with access to more stable funding to make needed improvements to properties.