HUD’s Office of Recapitalization recently released a memo regarding new guidelines for closing transactions after the issuance of a RAD Conversion Commitment (RCC).
When teams fail to submit a draft closing package in a timely manner after the RCC, it diverts HUD staff away from other transactions which are ready to close. Now, if a closing package is not received within two months of the date of HUD executing the RCC, the transaction will be placed in “Delayed Submission” status.
The transaction will be removed from the Closing Coordinator’s and Counsel’s workload so that HUD staff can concentrate on active RCCs. During the period when an RCC is in Delayed Submission status, the outside parties must direct questions by email to [email protected]. This email address should also be used to notify HUD when a draft package is ready to be submitted.
After a transaction has been placed in “Delayed Submission” status, requests for extension of the RCC closing deadline will be reviewed more critically and, in the absence of evidence that the PHA is making progress towards closing the transaction, the RCC may be permitted to expire.
