The RAD for PRAC program will allow Section 202 sponsors with Project Rental Assistance Contracts (PRACs) to convert their PRACs to either Section 8 Project Based Rental Assistance (PBRA) or Project Based Vouchers (PBVs). This will give Section 202/PRAC sponsors access to private financing to preserve communities for years to come.

The House and Senate are currently considering a bill that would expand HUD’s Rental Assistance Demonstration (RAD) program to include projects with Section 202 PRACs.

RAD for PRAC authority would allow Section 202 sponsors who have PRACs as their underlying rental subsidy to convert their PRACs to a Section 8 subsidy stream platform (either Section 8 Project-Based Rental Assistance or project-based vouchers).

Of the nation’s nearly 400,000 Section 202 homes, about 120,000 of them receive their rental subsidy from PRACs. Currently, PRACs are prohibited from taking on debt while many face significant capital repair needs. Conversion to the Section 8 platform, made possible under the RAD program, would give these Section 202 communities access to private financing to preserve communities for years to come.

Hampden Park Capital & Consulting has been working as a part of Leading Age’s task force to help make RAD for PRAC a priority.

Visit Leading Age’s Save HUD 202 campaign website for additional information about Leading Age’s efforts to preserve and expand affordable housing for very low income older adults.