Rental Assistance Demonstration (RAD): Component 2
The RAD 2nd Component allows Rent Supplement (Rent Supp), Rental Assistance Payment (RAP), and Mod Rehab (MR) properties to convert tenant-based vouchers, issued upon either contract expiration or termination, to project-based vouchers. These subsidies enable properties to refinance in order to address needed repairs.
RAD for PRAC
On September 5, 2019, HUD published Rental Assistance Demonstration- Final Implementation, Revision 4. This most recent version of the RAD Notice includes a newly added Section IV under the Notice’s Second Component. Section IV provides instructions to owners of Section 202 PRAC properties seeking to convert their Project Rental Assistance Contracts (PRACs) to either Section 8 Project Based Rental Assistance (PBRA) or Project Based Vouchers (PBVs), enabling owners to access private financing to preserve their properties.
HUD Notice 2019-02: Funding Availability for Set-Aside Tenant-Protection Vouchers (including Project Based Vouchers (PBVs))
Since 2014, HUD has issued an annual Notice announcing the availability of funds for Tenant Protection Vouchers (TPVs), including Project Based Vouchers (PBVs) for eligible units at properties located in low- vacancy areas that have experienced maturity of a HUD insured or HUD held loan or affordability restriction.
HUD Notice 2018-02: Refinancing of Pre-1974 Section 202 Direct Loans and Subsequent Issuance of Tenant Protection Vouchers (TPVs) or Senior Preservation Rental Assistance Contracts (SPRACs).
The SPRAC program awards rental assistance to Section 202 Direct Loan projects financed prior to 1974.
Low Income Housing Tax Credit (LIHTC)
The LIHTC program enables developers to access capital from investors in exchange for delivery of tax credits.
SECTION 202 SUPPORTIVE HOUSING FOR THE ELDERLY PROGRAM
On April 4, 2019, HUD published the FY 2018 Notice of Fund Availability (NOFA) for the Section 202: Supportive Housing for the Elderly Program. This is the first time the program has been funded since the 2010/2011 round. There have been a number of notable changes since the last round of funding.