HUD recently published two Rental Assistance Demonstration (RAD) federal notices that codify FY 2018 Appropriations Act provisions (including authority for a substantial increase of public housing units) as well as revised HUD policies encompassing five innovations to improve RAD.

  • Rental Assistance Demonstration: Implementation of Certain Fiscal Year (FY) 2018 Appropriations Act Provisions (FR-6105-N-01).

This notice codifies the unit cap increase for the First Component of RAD to 455,000 units and an ability to reset the rent base to more current levels: properties on the waiting list as well as those receiving an award by the end of calendar year 2018 will receive FY 16 public housing levels, but would replace the PHA’s FY 16 Capital Funds Formula Grant with FY 18 numbers; properties receiving awards after January 1, 2019 will receive rents based on a calculation of the FY 18 Operating Fund, Capital Fund, and Tenant Rent Levels. The modified FY 16 rents are available to view here.

This notice implements five policy changes by HUD for the RAD program:

  1. Rent Flexibilities – Expanded Rent-Bundling for Project-Based Vouchers
  2. PBV Tenant-Paid Utility Savings and Site-Specific Utility Allowances
  3. Use of Developer Fee to Incentivize Preferences for Households Exiting Homelessness or Permanent Supportive Housing.
  4. Section 18 Applications and RAD (protects unit replacement requirements and relocation protections when Sec. 18 (Demo Dispo) is combined with RAD
  5. Streamlined RAD Conversion for Small Public Housing Agencies