The Department of Housing and Urban Development released two new files to assist public housing authorities to calculate and access the public housing subsidy that will be available to properties converted under the Rental Assistance Demonstration (RAD) program. A project converted under RAD is funded through the public housing accounts at the level of public housing subsidy available to that project during the first calendar year in which the housing assistant payment (HAP) contract goes into effect.
Initial Year Funding – Processing Instructions explains how to calculate and access public housing funding, including submission requirements and HUD review. The document also offers guidance on accessing capital funds that will be part of the RAD transaction’s development budget.
Initial Year Funding Tool is an Excel workbook that PHAs can use to estimate the available funding. Submission of this workbook with the Financing Plan satisfies the Financing Plan requirement to provide an estimate of public housing funds available for HAP subsidy (See Attachment 1A.P of PIH Notice 2012-32 Rev 2). This tool will also be submitted in final form at closing.
HUD will host a webinar training on Friday, August 14 at 2:30pm EST.
