Since its release, the Rev-4 of the RAD Notice (now renumbered as Notice H-2019-09/PIH-2019-23 (HA)) has been a hot topic. The additional repositioning tools it provides housing authorities (HA) were heavily discussed at the recent RAD Collaborative Convening in Greensboro, NC and at other housing conferences I’ve been attending across the country. Here are some highlights from the revised notice with I find interesting:
- It allows HA’s to partner up, share resources, and do a bit of “horse trading” to benefit their portfolio repositioning. They can now contribute public housing funds to each other’s projects, rent bundle across each other’s portfolio, transfer land or make other arrangements to facilitate RAD conversions amongst their portfolios.
- HA’s can now apply for portfolio awards by entering 25% of units in RAD allowing them to lock in 2018 RAD rents as a future floor.
- Capital Needs Assessment requirements have been streamlined! This includes the elimination of all utility consumption baselines, and energy audits in some scenarios.
- A rent increase of $100 per unit is now possible if a RAD PBRA project involves new construction or substantial renovation in an Opportunity Zone (OZ).
- Environmental clarifications include, broadening the use of tiered environmental reviews, required use of the new online HEROS platform, and increasing hazardous material requirements.
- Final guidance is provided on RAD for PRAC, allowing the conversion of Section 202 PRAC projects through RAD to long-term Section 8 contracts. (D3G can help whether you have a single PRAC or a complex portfolio. Read more here.)
D3G’s Housing Preservation Team brings superior knowledge and expertise to the complexity of RAD projects. We have 25 years of experience with HUD, FHA, RAD, Section 8 PBRA/PBVA, LIHTC and mixed income real estate repositioning services. Our experienced team can provide early planning and transactional guidance bringing projects from concept to reality. Read more about our RAD services here.