Notice2025-11004
Rental Assistance Demonstration: Supplemental Guidance on Revised RAD Notice
Primary source
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Published
June 16, 2025
Effective
June 16, 2025
Issuing agencies
Housing and Urban Development Department
Abstract
The Rental Assistance Demonstration (RAD) provides the opportunity to test the conversion of assistance of public housing properties and other HUD-assisted properties to long-term, project- based Section 8 rental assistance. This Federal Register notice announces the posting of a supplement to the most current notice (Revised RAD Notice Revision 4, H-2019-09/PIH-2019-23 (HA)). As provided by the RAD Statute, this notice addresses the requirement that RAD may proceed after publication of notice of its terms in the Federal Register. This notice summarizes the key changes made to H-2019-09/PIH- 2019-23 (HA) through the RAD Supplemental Notice 4C, H-2025-01/PIH- 2025-03 (HA). This notice also meets the RAD statutory requirement to publish waivers and alternative requirements at least 10 days before effective, while this does not prevent the demonstration, as modified, from proceeding immediately.
Full Text
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<title>Federal Register, Volume 90 Issue 114 (Monday, June 16, 2025)</title>
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[Federal Register Volume 90, Number 114 (Monday, June 16, 2025)]
[Notices]
[Pages 25356-25358]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-11004]
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-6503-N-01]
Rental Assistance Demonstration: Supplemental Guidance on Revised
RAD Notice
AGENCY: Office of the Assistant Secretary for Housing-Federal Housing
Commissioner and Office of the Assistant Secretary for Public and
Indian Housing, HUD.
ACTION: Notice.
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SUMMARY: The Rental Assistance Demonstration (RAD) provides the
opportunity to test the conversion of assistance of public housing
properties and other HUD-assisted properties to long-term, project-
based Section 8 rental assistance. This Federal Register notice
announces the posting of a supplement to the most current notice
(Revised RAD Notice Revision 4, H-2019-09/PIH-2019-23 (HA)). As
provided by the RAD Statute, this notice addresses the requirement that
RAD may proceed after publication of notice of its terms in the Federal
Register. This notice summarizes the key changes made to H-2019-09/PIH-
2019-23 (HA) through the RAD Supplemental Notice 4C, H-2025-01/PIH-
2025-03 (HA). This notice also meets the RAD statutory requirement to
publish waivers and alternative requirements at least 10 days before
effective, while this does not prevent the demonstration, as modified,
from proceeding immediately.
DATES: The RAD Supplemental Notice 4C, H-2025-01/PIH-2025-03 (HA),
other than those items listed as new statutory or regulatory waivers or
alternative requirements specified in this notice, is effective June
16, 2025.
The new statutory and regulatory waivers and alternative
requirements are effective June 26, 2025.
ADDRESSES: Interested persons are invited to submit questions or
comments electronically to <a href="/cdn-cgi/l/email-protection#0e7c6f6a4e667b6a20696178"><span class="__cf_email__" data-cfemail="e7958683a78f9283c9808891">[email protected]</span></a>.
FOR FURTHER INFORMATION CONTACT: William A. Lavy, Director of Program
Administration, Office of Recapitalization, Office of Multifamily
[[Page 25357]]
Programs, Department of Housing and Urban Development, 451 Seventh
Street SW, Room 6230, Washington, DC 20410; telephone (202) 402-2465
(this is not a toll-free number). HUD welcomes and is prepared to
receive calls from individuals who are deaf or hard of hearing, as well
as individuals with speech and communication disabilities. To learn
more about how to make an accessible telephone call, please visit
<a href="https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs">https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs</a>. To assure a timely response, please direct written requests for
further information electronically to the email address <a href="/cdn-cgi/l/email-protection#63110207230b16074d040c15"><span class="__cf_email__" data-cfemail="196b787d59716c7d377e766f">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION:
I. Background
Originally authorized by the Consolidated and Further Continuing
Appropriations Act, 2012 (Pub. L. 112-55, approved November 18, 2011)
(2012 Appropriations Act) and later amended, RAD allows for the
conversion of assistance of public housing properties, Rent Supplement
(Rent Supp), Rental Assistance (RAP), Moderate Rehabilitation (Mod
Rehab), Mod Rehab Single Room Occupancy (SRO), Section 202 Project
Rental Assistance Contract (202 PRAC), and Section 811 Project Rental
Assistance Contract (811 PRAC) programs (collectively, ``covered
programs'') to long-term, renewable project-based rental assistance
under Section 8 of the United States Housing Act of 1937 (the Act).\1\
The most recent version of the RAD notice is H-2019-09/PIH-2019-23
(HA), located at <a href="https://www.hud.gov/sites/dfiles/OCHCO/documents/2019-09hsgn.pdf">https://www.hud.gov/sites/dfiles/OCHCO/documents/2019-09hsgn.pdf</a>.
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\1\ The RAD statutory requirements were amended by the
Consolidated Appropriations Act, 2014 (Pub. L. 113-76, approved
January 17, 2014), the Consolidated and Further Continuing
Appropriations Act, 2015 (Pub. L. 113-235, approved December 16,
2014), the Consolidated Appropriations Act, 2016 (Pub. L. 114-113,
approved December 18, 2015), the Consolidated Appropriations Act,
2017 (Pub. L. 115-31, approved May 5, 2017), the Consolidated
Appropriations Act, 2018 (Pub. L. 115-141, approved March 23, 2018),
the Consolidated Appropriations Act, 2022 (Pub. L. 117-103, approved
March 15, 2022), and the Consolidated Appropriations Act, 2024 (Pub.
L. 118-42, approved March 9, 2024). The statutory provisions of the
2012 Appropriations Act pertaining to RAD, as amended, are referred
to collectively as the ``RAD Statute'' in this notice.
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II. Key Changes Made to RAD
The following highlights key changes to RAD that are included in
the RAD Supplemental Notice 4C (the Notice):
1. Extension of Application Date. The Consolidated Appropriations
Act, 2024 extended the date by which a Public Housing Agency (PHA) may
apply to convert public housing under RAD to September 30, 2029.
Section I of the Notice implements this statutory change, which impacts
both stand-alone applications and applications for Portfolio Awards
which allow a PHA to reserve RAD conversion authority for a set of
projects (including for multiple phases of a large-scale redevelopment
effort and for planned projects) and which lock in the applicable
contract rent in the year of the application.
2. RAD and Section 18 Blends. The RAD statute as amended by the
Consolidated Appropriations Act, 2024 allows HUD to convert tenant
protection voucher assistance to a RAD HAP Contract under either
Project-Based Rental Assistance (PBRA) or Project Based Voucher (PBV)
assistance when a Converting Property partially converts Section 9
assistance under RAD and an event under Section 18 of the Act occurs
that results in eligibility for tenant protection vouchers under
Section 8(o) of the Act. Section II of the Notice implements this
statutory change.
3. Resident Services. The RAD statute as amended by the
Consolidated Appropriations Act, 2024 provides waiver authority to
facilitate the ongoing availability of services to enrolled residents
for Jobs Plus, Resident Opportunity and Self-Sufficiency Service
Coordinators (ROSS-SC), and Family Self Sufficiency (FSS) programs.
Section III of the Notice clarifies the eligibility and availability of
these programs at Covered Projects; removes waivers with respect to the
FSS program that are no longer needed due to the implementation of 24
CFR part 984; and clarifies the continuing availability of grant
assistance through the Congregate Housing Services Program.
4. Waivers of Rental Adjustments by OCAF. Section IV describes the
process by which Covered Projects may apply for a waiver to receive an
exception to the requirement in RAD Notice, Rev-4 for annual
adjustments to contract rents during the initial contract term while
limited to the Operating Cost Adjustment Factor (OCAF).
5. Annual Financial Statements. Section V of the Notice strengthens
program requirements for Project Owners to submit annual financial
statements to HUD or the Contract Administrator.
6. Extension from 14 to 30-Day Notice for Non-Payment of Rent.
Section VI of the Notice strengthens RAD resident protections by
extending termination notification timelines by adding 16 more days in
the case of tenant nonpayment of rent.
7. Renewal After Initial Term. Section VII of the Notice clarifies
that each HAP Contract must be renewed/extended after its initial term
of 15 or 20 years.
8. Leases. Section VIII of the Notice provides guidance on security
deposits, pet occupancy, and the use of plain language in tenant leases
for new residents and for residents in-place at the time of conversion.
9. Restore-Rebuild (formerly Faircloth-to-RAD). Section IX of the
Notice makes clarifying changes to resident notification requirements
for Restore-Rebuild developments where the proposed project is
occupied.
10. Financing Plan Requirements and Feasibility Benchmarks for
Public Housing Conversions. Section X of the Notice strengthens the
Financing Plan Requirements and Feasibility Benchmarks for public
housing properties undergoing a RAD conversion to ensure properties are
sustainable and financially stable for the long term.
11. HOTMA PBV Rule Conforming Changes. Section XI of the Notice
modifies the RAD Notice, Rev-4 in response to the Housing Opportunity
Through Modernization Act of 2016--Housing Choice Voucher and Project
Based Voucher Implementation; Additional Streamlining Changes (HOTMA
Voucher Final Rule), published in the Federal Register May 7, 2024, at
89 FR 38304, as corrected in a publication in the Federal Register on
May 28, 2024, at 89 FR 46020, and effective as of June 6, 2024.
III. New Waivers and Alternative Requirements
The RAD Statute provides that waivers and alternative requirements
authorized under the First Component must be published by notice in the
Federal Register no later than 10 days before the effective date of
such notice. Under the Second Component of RAD, HUD is authorized to
waive or alter the provisions of subparagraphs (C) and (D) of Section
8(o)(13) of the United States Housing Act of 1937 (42 U.S.C. 1437f)
(the 1937 Act).
HUD has previously published its waivers and alternative
requirements for RAD on July 26, 2012 (77 FR 43850), July 2, 2013 (78
FR 39759), June 26, 2015 (80 FR 36830), January 19, 2017 (82 FR 6615),
July 3, 2018 (83 FR 31169), October 10, 2019 (84 FR 54630), and August
21, 2023 (88 FR 56764). This notice only includes waivers and
alternative requirements not previously published. This notice does not
include waivers of regulations that were previously published or where
regulatory references in the RAD Notice
[[Page 25358]]
have been updated to conform to regulatory changes implemented via the
HOTMA Voucher Final Rule. Lastly, although waivers and alternative
requirements authorized under the Second Component are not subject to a
Federal Register publication requirement, new Second Component waivers
and alternative requirements are included in this notice as a matter of
convenience.
The new waivers and alternative requirements are:
1. Resident Services.
a. Resident Opportunity and Self-Sufficiency Service Coordinators
(ROSS-SC). Provision affected: In accordance with the current RAD
Notice provisions, ROSS-SC grantees are able to finish out their
current ROSS-SC grants once their projects are converted under RAD.
Waiver: HUD is waiving the limitation under Section 34 of the 1937 Act
and in the Self Sufficiency Programs account in the Consolidated
Appropriations Act, 2024 (and subsequent Appropriations Acts, as
applicable) that permits ROSS-SC to serve only public housing units or
residents. Alternative requirement: HUD is implementing an alternative
requirement permitting the PHA or the new project owner to apply for
their ROSS-SC grant to be renewed, subject to the requirements of the
ROSS-SC NOFO.
b. Jobs Plus. Provision affected: Jobs Plus grantees are able to
finish out their current Jobs Plus period of performance if enrolled
prior to conversion, unless a modification is approved. Waiver: HUD is
waiving the limitation in the Self Sufficiency Programs account in the
Consolidated Appropriations Act, 2024 (and subsequent Appropriations
Acts, as applicable) that restricts Jobs Plus grants to serving only
public housing residents. Alternative requirement: HUD is implementing
an alternative requirement permitting any Jobs Plus program at a target
project(s) to enroll residents in Jobs Plus services and in the Jobs
Plus financial/rent incentive after conversion.
2. HOTMA PBV Rule conforming changes.
a. Converted public housing units under HAP contract where
rehabilitation work is performed. Provisions affected: The HUD required
scope of work in most RAD transactions occurs after the HAP Contract is
executed and while subsidy is flowing but does not fit with the newly
revised housing types for PBVs. Waiver: The definitions of ``existing
housing,'' ``rehabilitated housing,'' and ``newly constructed housing''
at 24 CFR 983.3(b), the definitions of ``development activity'' and
``substantial improvement'' at 24 CFR 983.3(b) with respect to the
scope of work completed under the RCC, and at 42 U.S.C. 1437f(o)(13)(A)
and 24 CFR 983.5(a)(2) describing the housing types for which a PHA
enters into a HAP Contract in the PBV program, are waived. Alternative
requirements: The requirements of the RAD Notice Revision 4, H-2019-09/
H-2019-23, as amended by the Notice shall apply with regard to the HUD
required work completed under the RAD Conversion Commitment in place of
the PBV requirements stemming from the housing type classifications.
b. Converted moderate rehab units under HAP contract where
rehabilitation work is performed after the HAP Contract is executed.
Provisions affected: The HUD required scope of work in most RAD
transactions includes work that falls under the PBV regulatory
definition of substantial improvement at 24 CFR 983.212. Waiver:
Paragraph (ii) of the definition of ``existing housing'' at 24 CFR
983.3(b), which requires a PHA determination and owner certification
regarding substantial improvement in order for a project to qualify as
existing housing, the provision of 24 CFR 983.212(a) prohibiting the
owner from requesting PHA approval before the effective date of the HAP
contract, and 24 CFR 983.212(a)(1)(ii), which requires that PHAs do not
approve substantial improvement to commence until after the first two
years of the effective date of the HAP Contract, are waived.
Alternative requirements: Mod Rehab projects converting to PBV through
RAD shall be considered existing housing under 24 CFR part 983 so long
as they meet the criteria of paragraph (i) of the definition of
``existing housing'' at 24 CFR part 983.3. Such projects shall follow
all other requirements governing substantial improvements under 24 CFR
part 983.212 that are not waived herein.
IV. Program Notice Availability
The RAD Supplemental Notice 4C (H-2025-01/PIH-2025-03 (HA)) can be
found on RAD's website, <a href="http://www.hud.gov/rad">www.hud.gov/rad</a>.
V. Finding of No Significant Impact
A Finding of No Significant Impact (FONSI) with respect to the
environment has been completed in accordance with HUD regulations in 24
CFR part 50 that implement section 102(2)(C) of the National
Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)). The FONSI is
available for public inspection during regular business hours in the
Regulations Division, Office of General Counsel; Department of Housing
and Urban Development; 451 7th Street SW, Room 10276, Washington, DC
20410-0500. Due to security measures at the HUD Headquarters building,
please schedule an appointment to review the FONSI by calling the
Regulations Division at (202) 402-3055 (this is not a toll-free
number). HUD welcomes and is prepared to receive calls from individuals
who are deaf or hard of hearing, as well as individuals with speech and
communication disabilities. To learn more about how to make an
accessible telephone call, please visit <a href="https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs">https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs</a>.
Frank Cassidy,
Principal Deputy Assistant Secretary for Housing.
Benjamin Hobbs,
Principal Deputy Assistant Secretary for Public and Indian Housing.
[FR Doc. 2025-11004 Filed 6-13-25; 8:45 am]
BILLING CODE 4210-67-P
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