In late March, HUD’s Office of Recapitalization hosted a listening session to receive feedback on how they can facilitate more efficient closings of RAD transactions. The session that has resulted in two changes outlined below:
HAP Effective Date
Project owners are now able, during the closing process, to select the effective date of the HAP contract as the first day of either of the two months following a completed closing. For example, if the project closes on October 20, 2017, the HAP contract can be effective on either November 1, 2017 or December 1, 2017. The hope is that PHAs and project owners are able to better prepare for funding in the initial year and have more time to complete administrative tasks.
Initial Year Funding Instructions and Tool
To address confusion regarding funding during the initial year (HAP contract effective date to the remainder of the calendar year), HUD has released two items: Initial Year Funding Instructions as well as a revised Initial Year Funding Tool. The tool is an Excel worksheet that will help project owners determine revenue availability in the first year. (Note: as of 7/12/16, this updated tool does not yet appear to be posted).
Webinar on 7/13
HUD will host a Live Q&A to walk through the revise tool and respond to questions on July 13th from 3-4 PM (EST). REGISTER HERE
