The Rental Assistance Demonstration (RAD) is a preservation program focused on protecting and improving the nation’s at-risk public housing stock.
PHAs Can Now Apply for a Waiver to Adjust Rents, Following CLPHA’s Advocacy
HUD has published RAD Supplemental Notice 4C, which contains several major revisions. Most notably, properties that converted under RAD that have insufficiently low rents are now able to apply for a waiver of rent adjustments by OCAF; CLPHA advocated for this relief through its RAD Rents Working Group. The changes in the Notice are effective immediately and are subject to a 30-day comment period. Other major changes in the Notice include:
- Implementing the extended application date to September 30, 2029, including for both stand-alone applications and applications for Portfolio Awards;
- Changing to RAD-Section 18 Blends allowing for tenant protection voucher (TPV) assistance to convert to a RAD HAP Contract under either PBRA or PBV when a Section 18 event occurs at a property that is partially converting;
- Allowing PHAs to continue Jobs Plus, ROSS, and FSS programs at properties that undergo RAD conversion;
- Strengthening requirements for owners to submit annual financial statements;
- Extending the notification requirement to 30 days prior to termination for nonpayment of rent;
- Clarifying that each HAP Contract must be renewed/extended after its initial term of 15 or 20 years;
- Providing guidance on security deposits, pet occupancy, and the use of plain language in resident leases;
- Making clarifying changes to resident notification requirements for Restore-Rebuild developments (formerly called Faircloth-to-RAD) where the proposed project is occupied;
- Strengthens the Financing Plan Requirements and Feasibility Benchmarks for public housing properties undergoing a RAD conversion;
- Making changes to conform RAD to the HOTMA PBV rule.
RAD-Section 18 Blends:
The Notice implements statutory changes around RAD and Section 18 Blends that allow HUD to convert tenant protection voucher (TPV) assistance to a RAD HAP Contract, under either PBRA or PBV, when partially converting a Section 9 property under RAD and an event under Section 18 occurs that results in eligibility for TPVs. Public housing properties that have been developed pursuant to the mixed-finance development method are eligible for RAD/Section 18 Blends.
Owners of properties that previously entered into a RAD PBRA HAP Contract that also includes units assisted by a PBV HAP contract can now request to terminate the PBV HAP Contract and enter into one single RAD PBRA HAP Contract for all assisted units with a term at least as long as the remaining term of the original RAD PBRA HAP Contract. Any residents of PBV units will not be rescreened and will retain all choice-mobility rights.
MTW agencies can use their MTW funds to set the initial contract rents higher than the normally applicable contract rent cap. However, the initial contract rent set by the PHA is still subject to all other applicable program caps. The agency must use existing MTW funds to supplement the initial contract rent, and any use of MTW funds in setting higher initial contract rents is still subject to subsidy layering review and MTW continued service requirements, as calculated using the MTW Baseline Methodology (described in Notice PIH 2013-02).
HUD will produce a single, blended rent schedule for all units resulting from a RAD/Section 18 Blend. The rent schedule will be calculated as the unit-weighted average contract rent by bedroom of the Converting Public Housing Assistance using the RAD rents based on their “RAD rent base year” (described in Attachment 1C of the Notice), and the Converting TPV Assistance using the lower of 110% of the applicable FMR (or approved exception payment standard) minus any Utility Allowance or the Reasonable Rent.
Requesting Waivers of Rental Adjustments by OCAF
A project owner may request a waiver of the rental adjustment by OCAF and receive a rental adjustment by an alternative operating cost factor. To request a waiver of the rental adjustment by OCAF, project owners must submit a request along with documentation demonstrating the need for an alternative operating cost factor rental adjustment in order to preserve the project. The submission to the Office of Recapitalization must be consistent with instructions published on www.hud.gov/rad. If the Office of Recapitalization grants the waiver, they will determine the appropriate alternative operating cost factor and resulting rents. For PBV, the Contract Administrator must consent to the request and their consent must be evidenced in the Project Owner’s documentation.
Financing Plan Requirements and Feasibility Benchmarks
The Notice makes changes to financing plan requirements and feasibility benchmarks for any transaction that has not submitted a complete Financing Plan on or before April 16, 2025 (the 90th day after the Effective Date of this Notice). All other transactions will be subject to the previous provisions of the RAD Notice, Rev-4.
Under 24 CFR § 58.11(c), all conversions will be subject to an environmental review under Part 50. Environmental documents are required to be submitted no later than the applicant’s Financing Plan. Once an awardee has submitted an application for a specific project, they may not make any choice limiting actions before the completion of the environmental review. The Notice contains details about the environmental documents that must be submitted, the entity that performs the review for each transaction type, and more.
HOTMA conforming changes
The Notice makes technical changes to the RAD Notice to update regulatory references and language and certain non-technical changes to resolve conflicts between the RAD Notice and the HOTMA Voucher Final Rule. These include several modified definitions; the maximum number of PBV units (percentage limitation); the cap on the number of PBV Units in each project (Income-Mixing requirement); proposal and project selection procedures; applicability of PBV housing types, execution of RAD PBV HAP Contract, and RAD rehab assistance payments; and changes to the execution of RAD PBV HAP Contract and rehabilitation.
Any questions should be emailed to RAD@hud.gov. Additionally, HUD will develop informational materials to address various program elements that HUD will post on the RAD website.
PHAs Can Now Apply for a Waiver to Adjust Rents, Following CLPHA’s Advocacy
HUD has published RAD Supplemental Notice 4C, which contains several major revisions. Most notably, properties that converted under RAD that have insufficiently low rents are now able to apply for a waiver of rent adjustments by OCAF; CLPHA advocated for this relief through its RAD Rents Working Group. The changes in the Notice are effective immediately and are subject to a 30-day comment period. Other major changes in the Notice include:
- Implementing the extended application date to September 30, 2029, including for both stand-alone applications and applications for Portfolio Awards;
- Changing to RAD-Section 18 Blends allowing for tenant protection voucher (TPV) assistance to convert to a RAD HAP Contract under either PBRA or PBV when a Section 18 event occurs at a property that is partially converting;
- Allowing PHAs to continue Jobs Plus, ROSS, and FSS programs at properties that undergo RAD conversion;
- Strengthening requirements for owners to submit annual financial statements;
- Extending the notification requirement to 30 days prior to termination for nonpayment of rent;
- Clarifying that each HAP Contract must be renewed/extended after its initial term of 15 or 20 years;
- Providing guidance on security deposits, pet occupancy, and the use of plain language in resident leases;
- Making clarifying changes to resident notification requirements for Restore-Rebuild developments (formerly called Faircloth-to-RAD) where the proposed project is occupied;
- Strengthens the Financing Plan Requirements and Feasibility Benchmarks for public housing properties undergoing a RAD conversion;
- Making changes to conform RAD to the HOTMA PBV rule.
RAD-Section 18 Blends:
The Notice implements statutory changes around RAD and Section 18 Blends that allow HUD to convert tenant protection voucher (TPV) assistance to a RAD HAP Contract, under either PBRA or PBV, when partially converting a Section 9 property under RAD and an event under Section 18 occurs that results in eligibility for TPVs. Public housing properties that have been developed pursuant to the mixed-finance development method are eligible for RAD/Section 18 Blends.
Owners of properties that previously entered into a RAD PBRA HAP Contract that also includes units assisted by a PBV HAP contract can now request to terminate the PBV HAP Contract and enter into one single RAD PBRA HAP Contract for all assisted units with a term at least as long as the remaining term of the original RAD PBRA HAP Contract. Any residents of PBV units will not be rescreened and will retain all choice-mobility rights.
MTW agencies can use their MTW funds to set the initial contract rents higher than the normally applicable contract rent cap. However, the initial contract rent set by the PHA is still subject to all other applicable program caps. The agency must use existing MTW funds to supplement the initial contract rent, and any use of MTW funds in setting higher initial contract rents is still subject to subsidy layering review and MTW continued service requirements, as calculated using the MTW Baseline Methodology (described in Notice PIH 2013-02).
HUD will produce a single, blended rent schedule for all units resulting from a RAD/Section 18 Blend. The rent schedule will be calculated as the unit-weighted average contract rent by bedroom of the Converting Public Housing Assistance using the RAD rents based on their “RAD rent base year” (described in Attachment 1C of the Notice), and the Converting TPV Assistance using the lower of 110% of the applicable FMR (or approved exception payment standard) minus any Utility Allowance or the Reasonable Rent.
Requesting Waivers of Rental Adjustments by OCAF
A project owner may request a waiver of the rental adjustment by OCAF and receive a rental adjustment by an alternative operating cost factor. To request a waiver of the rental adjustment by OCAF, project owners must submit a request along with documentation demonstrating the need for an alternative operating cost factor rental adjustment in order to preserve the project. The submission to the Office of Recapitalization must be consistent with instructions published on www.hud.gov/rad. If the Office of Recapitalization grants the waiver, they will determine the appropriate alternative operating cost factor and resulting rents. For PBV, the Contract Administrator must consent to the request and their consent must be evidenced in the Project Owner’s documentation.
Financing Plan Requirements and Feasibility Benchmarks
The Notice makes changes to financing plan requirements and feasibility benchmarks for any transaction that has not submitted a complete Financing Plan on or before April 16, 2025 (the 90th day after the Effective Date of this Notice). All other transactions will be subject to the previous provisions of the RAD Notice, Rev-4.
Under 24 CFR § 58.11(c), all conversions will be subject to an environmental review under Part 50. Environmental documents are required to be submitted no later than the applicant’s Financing Plan. Once an awardee has submitted an application for a specific project, they may not make any choice limiting actions before the completion of the environmental review. The Notice contains details about the environmental documents that must be submitted, the entity that performs the review for each transaction type, and more.
HOTMA conforming changes
The Notice makes technical changes to the RAD Notice to update regulatory references and language and certain non-technical changes to resolve conflicts between the RAD Notice and the HOTMA Voucher Final Rule. These include several modified definitions; the maximum number of PBV units (percentage limitation); the cap on the number of PBV Units in each project (Income-Mixing requirement); proposal and project selection procedures; applicability of PBV housing types, execution of RAD PBV HAP Contract, and RAD rehab assistance payments; and changes to the execution of RAD PBV HAP Contract and rehabilitation.
Any questions should be emailed to RAD@hud.gov. Additionally, HUD will develop informational materials to address various program elements that HUD will post on the RAD website.
From the Fairfax County Redevelopment and Housing Authority's press release:
Today, the Fairfax County Redevelopment and Housing Authority (FCRHA), together with SCG Development Partners and various elected officials, marked the grand opening of One University, 240 affordable homes for families and older adults adjacent to George Mason University.
“I am extremely proud to see that Fairfax County has successfully implemented HUD’s Rental Assistance Demonstration (RAD) authority with One University,” said HUD Mid-Atlantic Regional Administrator Matt Heckles. “As the first RAD property in the nation to obtain U.S. Department of Housing and Urban Development (HUD) approval for demolition and redevelopment, One University was the beginning of a national phenomenon. HUD has converted through RAD more than 170,000 units and generated over $17.7 billion for rehabilitation or reconstruction of these deeply rent-assisted homes, most of which housing extremely low-income families, seniors, and persons with disabilities.”
“One University is a shining example of what is possible when we inject affordable housing solutions with creativity, innovation, and partnership,” said Lenore Stanton, Chair, FCRHA. “This development marks our first time partnering with a major university to deliver a solution that benefits the entire community across generations.”
“The One University development typifies the power of public-private partnerships. The grand opening of this multi-generational affordable housing development, which also includes student housing to serve George Mason University, is a meaningful step toward fostering stronger, more inclusive communities. By bringing together families, seniors, and students into one vibrant community, we're creating opportunities for connection, support, and shared growth. It's a model for affordable housing that works for everyone, no matter their age or stage in life."
“George Mason University is key to Fairfax County’s greater economic development strategy, both as a major employer, and in its cultivation of tomorrow’s leaders. The partnership to create One University delivers a multifaceted affordable housing solution across generations, and provides much-needed student housing for the university,” said Jeff McKay, Chairman, Fairfax County Board of Supervisors.
“The FCRHA’s partnership with HUD, along with its Moving to Work designation, provided the flexibility to design affordable housing customized to Fairfax County’s unique needs and opportunities. This ongoing partnership with our federal government will be critical as we continue to work toward our goal of 10,000 net new affordable homes by 2034,” said James Walkinshaw, Braddock District Supervisor, Fairfax County Board of Supervisors.
The U.S. Department of Housing and Urban Development's Rental Assistance Demonstration (RAD) is marking a major milestone: $20 billion in total construction investment. CLPHA members are proud to be among the 500 PHAs across the country that have utilized RAD to preserve, modernize, or replace over 212,000 homes originally built as public housing -- homes providing stability, security, and opportunity to an estimated 577,000 low-income individuals, many of whom are elderly and/or disabled.
Hear more from residents whose lives have been positively impacted by the RAD program in HUD's video:
From the District of Columbia Housing Authority's press release:
Today, Mayor Muriel Bowser and the Office of the Deputy Mayor for Planning and Economic Development (DMPED), alongside the District of Columbia Housing Authority (DCHA) and nonprofit developer Preservation of Affordable Housing (POAH), celebrated a historic milestone for the Barry Farm-Hillsdale community with the grand opening of The Asberry, a 108-unit mixed-use building and the first on-site building delivered under the New Communities Initiative (NCI) at Barry Farm. Officials and community members also broke ground on The Edmonson, a 139-unit affordable mixed-use property and the second new construction building on site.
“As a city, we made Barry Farm residents a promise under our New Communities Initiative – that we would welcome residents back into fantastic, safe, and affordable housing that honors and preserves the rich legacy of the community,” said Mayor Bowser. “Today, we take another step forward in delivering on our promise in a way that respects and celebrates the history – and future – of Barry Farm-Hillsdale.”
Located at 1200 Sumner Road SE, adjacent to the Barry Farm Recreation Center, The Asberry is the first building completed as part of the redevelopment of the historically significant Barry Farm-Hillsdale community. Established in 1867, Barry Farm was created to provide formerly enslaved African Americans with the opportunity to own land and build a self-sustaining community after the Civil War.
DCHA and POAH serve as co-developers for the site. Once completed, the Barry Farm redevelopment will feature a vibrant mixed-income community with at least 900 new affordable rental and for-sale housing units, including 380 public housing replacement units. The Barry Farm redevelopment project has so far created a total of 351 construction jobs for DC residents, with the highest percentage going to residents living in Ward 7 (68) and Ward 8 (92).
“This is a watershed moment for our DCHA families who had made Barry Farm Dwellings such a special place to live,” said Keith Pettigrew, DCHA Executive Director. “The opening of The Asberry gives our returning residents an opportunity to live in new, modern homes and creates a foundation for reestablishing the vibrant, spirited Barry Farm community for generations to come. Thank you to our partners in this project for bringing quality affordable housing options to Anacostia while honoring the Barry Farm-Hillsdale legacy.”
The Asberry, which has 77 replacement units for former Barry Farm residents, is a 100% affordable, 55+ senior preference residential property with 33 units at 30% of Median Family Income (MFI), 44 units at 50% MFI, 21 units at 60% MFI, and 10 units at 80% MFI. It also includes 5,096 square feet of commercial space and amenities include a sundeck, courtyard, fitness center, recreation room, and wellness room. Construction was completed in October 2024. The Edmonson will be the second newly constructed building in the redevelopment project, which is being led by co-developers DCHA and POAH. It will include 139 affordable units, including 52 two-bedroom units. The Edmonson will also have 50 replacement units for former Barry Farm Dwellings residents, 20,000 square feet of ground-floor retail space, shared community spaces, and outdoor amenities.
“We are excited to celebrate the progress of the Barry Farm Redevelopment Project with the grand opening of The Asberry and the groundbreaking of the forthcoming Edmonson,” said Maia Shanklin-Roberts, Vice President of Real Estate Development, POAH. “These milestones represent not just buildings, but a vibrant future for this community—one rooted in opportunity, equity, and connection. It’s an honor to be part of a development that prioritizes quality, affordability, and the preservation of the rich history of Barry Farm, while paving the way for generations to thrive.”
DMPED invested approximately $43 million in Phase 1 of the redevelopment, including roughly $14.5 million towards construction of The Asberry. The five-story building also was funded by $33.7 million in tax-exempt bonds issued by the DC Housing Finance Agency (DCHFA).
“Mayor Bowser is delivering on the promises the District made as a city to the Barry Farm–Hillsdale community,” said Deputy Mayor for Planning and Economic Development Nina Albert. “DMPED is proud to be a part of this incredible partnership that is fostering inclusive growth and delivering the type of housing, amenities, and opportunities that residents want and deserve. And we’re just getting started.”
For The Edmonson, DCHFA issued $61.1 million in tax-exempt bonds and underwrote $52 million in federal Low Income Housing Tax Credit (LIHTC) equity. DMPED also provided a $21 million NCI loan. A $2.5 million grant from the Public Service Commission of the District of Columbia and $3 million in financing from DC Green Bank is supporting a community geothermal system, which provides energy efficiencies, cost savings, and sustainability.
“The Barry Farm community is a site full of history and culture. The Asberry is the next chapter and a resurrection of that culture. Seniors, our long-term residents can now return to wonderful homes that are beautiful, healthy, and affordable,” said Christopher E. Donald, Executive Director/CEO, DC Housing Finance Agency (DCHFA). “DCHFA is proud to continue investing in the redevelopment of Barry Farm. The Edmonson is the Agency’s second investment. We eagerly anticipate what is to come and look forward to much more in subsequent phases of redevelopment of Barry Farm.”
By using an innovative Faircloth-to-RAD conversion approach, the Barry Farm redevelopment will increase the number of affordable housing units available at the site. Once complete, the project will create at least 900 residential units across several buildings – including at least 380 affordable replacement units onsite for former Barry Farm residents, an additional 320 other affordable units and 100 homeownership units; community-serving retail spaces; and a large central park with community facilities for on-site services and programs.
Run through a partnership with DMPED and DCHA, NCI is a District government program that was created to redevelop distressed public housing communities into vibrant mixed-income neighborhoods. Barry Farm is one of four NCI projects, along with Northwest One which officially opened in Ward 6 in late 2022; Lincoln Heights – Richardson Dwellings in Ward 7, where hundreds of replacement units have been delivered; and Park Morton in Ward 1, where construction is underway.
CLPHA, with the support of HAI Group, Reno & Cavanaugh, CF Housing Group, and the National Equity Fund formed the RAD Collaborative in 2015. The Collaborative facilitates information sharing and productive relationships among housing authorities, their residents and development and financing partners, advisors and transactional service providers, local government, policy makers and other stakeholders working to implement RAD across the country. To learn more about the RAD Collaborative, please visit radcollaborative.org.