HUD PIH Notice § 2023-19
Rental Assistance Demonstration - Supplemental Notice 4B (HUD PIH Notices)
HUD guidance — not codified law
In Force
Verified 10/14/2026 · Next check 10/21/2026
effective 10/6/2026FederalAffordable Housing ProgramsOperative Text
HUD PIH Notice § 2023-19
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Office of Housing
Office of Public and Indian Housing
Special Attention of: Notice H-2023-08
Public Housing Agencies PIH-2023-19 (HA)
Public Housing Hub Office Directors
Public Housing Program Center Directors Issued: July 27, 2023
Multifamily Regional Center Directors
Multifamily Regional Satellite Office Directors
Regional and Field Office Directors Expires: This Notice
Regional Administrators remains in effect until
Performance Based Contract Administrators amended, superseded, or
rescinded.
Amends: H-2019-
09/PIH-2019-23; and
PIH-2021-07
Rescinds: H-2020-
09/PIH-2020-26
SUBJECT: Rental Assistance Demonstration – Supplemental Notice 4B
Purpose
This Supplemental Notice amends Housing 2019-09/ PIH 2019-23 and PIH Notice 2021-07 and
rescinds Notice H-2020-09/Notice PIH-2020-26 in order to implement certain changes to the
Rental Assistance Demonstration (RAD) authorized under the FY 2022 Appropriations Act as
well as other changes.
Background
RAD is authorized by the Consolidated and Further Continuing Appropriations Act of 2012
(Pub. L. No. 112-55, approved November 18, 2011), as amended by the Consolidated
Appropriations Act, 2014 (Pub. L. No. 113-76, approved January 17, 2014), the Consolidated
and Further Continuing Appropriations Act, 2015 (Pub. L. No. 113-235, approved December 16,
2014), the Consolidated Appropriations Act, 2016 (Pub. L. No. 114-113, approved December 18,
2015), the Consolidated Appropriations Act, 2017 (Pub. L. No 115-31, approved May 5, 2017),
the Consolidated Appropriations Act, 2018 (Pub. L. 115-141, approved March 23, 2018) and the
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Consolidated Appropriations Act, 2022 (Pub. L. 117-103, approved March 15, 2022)
(collectively, the “RAD Statute.”).
MAJOR REVISIONS IN SUPPLEMENTAL NOTICE 4B
Implementation guidance for RAD is currently described in Housing 2019-09/ PIH 2019-23
“Rental Assistance Demonstration – Final Implementation, Revision 4.” (RAD Notice, Rev-4)
This Supplemental Notice supplements and amends RAD Notice, Rev-4 in the following
respects:
RAD for PRAC Initial Contract Rent Setting. The Consolidated Appropriations Act,
2022 and the Consolidated Appropriations Act, 2023, each provided up to $6 million (up
to $12 million total) to support preservation transactions of housing for the elderly
originally developed with a Section 202 Capital Advance and assisted with a Project
Rental Assistance Contract (PRAC). HUD is implementing these funding provisions in
this Supplemental Notice by allowing additional rent-setting flexibilities to promote and
incentivize projects where the conversion supports long-term preservation by enhancing
climate resilience, energy and water efficiency, and the design of housing appropriate for
the elderly to age-in-place. It further implements waiver authority provided in the
Consolidated Appropriations Act, 2022 to ensure the continuation of resident services
previously provided at Section 202 PRAC properties that are converting through RAD
and to avoid reductions in rental subsidy at such properties.
Resident Engagement. Section II of this Supplemental Notice amends the Resident
Engagement requirements for PHAs in order to ensure that the residents are better
informed and engaged in the RAD conversion process and that HUD can adequately
monitor resident engagement. This Supplemental Notice enhances the descriptions of
resident engagement that must be submitted with the RAD application and modifies the
resident meeting requirements to provide for more frequent and meaningful updates to
residents.
Energy Efficiency and Climate Resilience. Section III of this Supplemental Notice
amends the RAD Notice, Rev-4 to raise the minimum energy efficiency standards
applicable to new construction activities by reference to updated energy codes
incorporating higher, cost-effective standards and requires ownership teams to participate
in climate resilience planning.
Harmonizing Radon Policies in RAD Conversions. Section IV of this Supplemental
Notice amends the RAD Notice, Rev-4 to ensure that all projects converting assistance
under RAD are evaluated for radon. RAD Notice, Rev-4 introduced requirements for
radon testing for properties converting under RAD but exempted certain scenarios from
the requirement. It also inadvertently omitted Mod Rehab conversions from the
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requirement. HUD’s subsequent amendments to Chapter 9 of the MAP Guide further
narrowed the exempted scenarios. Through this Notice, HUD is eliminating the
remaining exemptions, subjecting all Converting Projects to radon testing requirements.
Treatment of Zero-HAP families. Section V of this Supplemental Notice amends the
treatment of families whose total tenant payment (TTP) exceeds the Gross Rent on the
RAD HAP Contract, including families present at the time of conversion and families
newly admitted to the property after conversion.
Faircloth-to-RAD Developments. Section VI and Section II of this Supplemental Notice
make changes to the RAD Notice, Rev-4 in order to support PHAs that are developing
public housing units to replace public housing units previously removed from the PHA’s
portfolio. PHAs can secure a conditional pre-completion approval to convert newly
developed public housing units to a long-term Section 8 contract through RAD following
completion of the public housing development process. The changes make it simpler for
PHAs to reserve RAD conversion authority, allow PHAs to utilize HAP reserves in order
to augment RAD rents for such units at conversion, and set forth alternative resident
notification procedures that a PHA may employ.
Housing Quality Standards. Section VII of this Supplemental Notice amends the RAD
Notice, Rev-4 to clarify applicability of HQS during the Work period for occupied units
and adds a certification requirement regarding the condition of the unit prior to placing
units and making payments under the HAP Contract.
RAD/Section 18 Blend Streamlining. Section VIII of this Supplemental Notice extends
additional waiversto non-RAD PBVs at the Converted Project in order to facilitate
uniform treatment of residents and units.
Effective Date
Except as noted herein, the changes in this Notice shall be effective immediately following
publication in the Federal Register (the “Effective Date”). Further, these provisions are subject
to a 30-day comment period. If HUD receives comment that would lead to the reconsideration
of any of the changes contained in this Supplemental Notice, HUD will notify the public in a
new revision upon expiration of the comment period. Please submit all comments to
RAD@hud.gov.
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SECTION I: RAD FOR PRAC INITIAL CONTRACT RENT SETTING.
1. The first paragraph in Section 4.6.D is amended to read as follows:
Initial Contract Rent Setting. The initial contract rents will be set at the approved
PRAC rents.192 Pursuant to authority provided in the RAD Statute, the limitation under
Section 8(c)(1)(A) of the Act on setting initial contract rents no higher than 120% of
FMR, less any utility allowances, shall not apply as necessary to ensure the ongoing
provision and coordination of services or to avoid a reduction in project subsidy. The
initial contract rents shall be capped at 120% of the applicable FMR, less any utility
allowance, consistent with the requirements of Section 8(c)(1) of the Act, only in the
event the Project Owner utilizes the authority in this Section to increase the initial
contract rents above the approved PRAC rents. Furthermore, HUD is implementing an
alternative requirement to 24 CFR §888.113(h) permitting the use of a Small Area FMR
as the “applicable FMR” upon request of the Project Owner.
2. New paragraphs are added to the end of Section 4.6.D. to read as follows:
In order to support preservation efforts that will enhance the resilience, energy and water
efficiency, and design of housing appropriate for the elderly to age-in-place, for any
transaction that is proposed in its Conversion Plan to undertake new construction or
rehabilitation with debt financing, and subject to demonstrated need, HUD may provide
an increase to the PRAC rent prior to conversion that will be incorporated in the initial
Section 8 contract rent. Subject to the availability of funds,4B-1 HUD may provide:
• An increase of up to $250 per unit per month (PUM) to the PRAC rent for any
transaction that will undertake new construction or substantial rehabilitation
(defined as hard construction costs, including general requirements, overhead and
192 PRAC rents are the “Operating Expense Amounts” listed in Part I of the PRAC, Exhibit 1, as adjusted
pursuant to rent “bundling” described in this subsection D. If PRAC rents have been adjusted by a special
temporary increase in accordance with an approved plan with the Multifamily Regional Center, such special
temporary rent increase will not be included in the PRAC rents used for the purposes of setting initial
contract rents at conversion..
4B-1 As of the date of publication, up to $12 million were made available for such increases in the Consolidated
Apprpriations Act, 2022 (Public Law 117-103, approved March 15, 2022) and the Consolidated
Appropriations Act, 2023 (Public Law 117-328, approved December 29, 2023).
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profit, and payment and performance bonds) in excess of 60% of the Housing
Construction Costs as published by HUD for a given market area.4B-2
• An increase of up to $100 PUM to the PRAC rent for any transaction that will
undertake rehabilitation (defined as hard construction costs, including general
requirements, overhead and profit, and payment and performance bonds) in
excess of 30% of the Housing Construction Costs as published by HUD for a
given market area.
To be eligible for such increase to the PRAC rent prior to conversion, the Project Owner
must demonstrate that the construction or substantial rehabilitation will enhance climate
resilience, energy and water efficiency, and/or appropriate design for the elderly residents
to age-in-place.4B-3 Funds for this purpose shall be reserved on a first-come, first served
basis based on the time of the request (communicated through the submission of a
complete and acceptable Conversion Plan), subject to the availability of funds, and
finalized when the Owner demonstrates the amount is necessary for the viability of the
transaction.
When conversion will result in the reduction of one or more utility components (e.g., gas,
water & sewer, electric) used to establish the Utility Allowance, HUD will permit the
RAD contract rent to be increased by a portion of the utility savings. Project Owners can
submit utility allowance projections performed by a third-party professional engineer,
based on the project’s plans and specifications that, at a minimum, take into account
specific factors including, but not limited to, unit size, building orientation, design and
materials, mechanical systems, appliances, and characteristics of the building location.
For utilities that will remain tenant-paid, HUD will increase the contract rents by 75% of
the approved reduction in Utility Allowance. The Utility Allowance shall be recalculated
based on actual consumption within a reasonable period following completion of the
work.
3. The second paragraph in Section 4.6.E is deleted in its entirety and the first paragraph is
amended to read as follows:
4B-2 Housing Construction Costs are published annually. For the most recently published Housing
Construction Costs as of the Notice publication date, please see
https://www.hud.gov/sites/dfiles/PIH/documents/TDCs_2022.pdf
4B-3 The ongoing goal for this housing stock is to provide affordable housing for elderly residents to live
independently and age in place, even as they may require a higher level of assistance with activities of daily
living over time. Such properties avoid the need for residents to move to assisted living facilities and nursing
homes by design that prevents falls, incorporates universal design and visitability principles, leverages
electronic communications, and promotes health and wellness.
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Method of Adjusting Contract Rents. Contract rents will be adjusted by an OCAF at
each anniversary of the HAP Contract, subject to the availability of appropriations for
each year of the initial term of the HAP Contract.194
SECTION II: RESIDENT ENGAGEMENT.
The provisions of this Section II are effective on the 30th day following the Effective Date.
However, if a transaction has progressed beyond the point that the changes below would apply,
the transaction will be held to the previous provisions of the RAD Notice, Rev-4 with respect to
obligations required to occur prior to the effective date of this Section. For example, if a RAD
conversion has an RCC on the date the provisions of this Supplemental Notice become effective,
that conversion will not be subject to the new requirements with respect to the RAD application
or other requirements that apply prior to receipt of the RCC, but would be subject to provisions
applicable after the RCC is issued.
1. Section 1.8 is deleted in its entirety and replaced with the following:
1.8 Resident Engagement
A. Before Application. Prior to submitting an application to participate in the
Demonstration, the PHA must:
1. Provide written notification of the PHA’s intent to pursue a conversion to duly
elected resident organizations (in accordance with 24 CFR Part 964)
representing the buildings or developments proposed for conversion.
Additionally, HUD encourages PHAs to partner with resident leaders to help
communicate information about the RAD conversion to the broader resident
population through peer-to-peer engagement;
2. Provide written notification in the form of a RAD Information Notice (RIN) to
residents of projects proposed for conversion to inform the residents of the
PHA’s intent to pursue a conversion, their rights in connection with a proposed
conversion (whether or not any relocation is anticipated), the nature of current
conversion plans, including at a minimum, a description of the plans that will be
discussed at the resident meetings, and a means for contacting HUD.4B-4 RINs
must be delivered directly to each unit or by U.S. mail to each head of
household at the Converting Project, must be posted in a conspicuous place
within the Converting Project, and must remain available at the management
194 OCAFs are calculated and published each year by HUD in the Federal Register and are applied to the portion of a
contract rent that is not committed to debt service in order to calculate the contract rent for the project in the
following fiscal year.
4B-4 See the RAD Fair Housing, Civil Rights, and Relocation Notice for the required full contents of the RIN.
Sample RIN provided at www.radresourcedesk.net
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office during normal business hours for inspection and copying by tenants and
by the public;
3. In certain instances, such as when the PHA knows that a project will involve
acquisition, rehabilitation or demolition, or if relocation is anticipated, another
notice known as a General Information Notice (GIN) may also need to be issued
simultaneously with the RIN. A GIN is a notice required by the Uniform
Relocation Assistance and Real Property Acquisition Policies Act of 1970, as
amended (URA) and its implementing regulations of 49 CFR part 24. The
timing, content and delivery methods for GINs remain unchanged by this
Notice. See the RAD Fair Housing, Civil Rights, and Relocation Notice for
additional information.
4. No less than one week following issuance of the RIN and within the six months
prior to submission of the application, conduct at least two meetings with
residents of projects proposed for conversion to discuss conversion plans and
provide opportunities for comment. Discussion at both meetings must include a
description of resident rights described in Attachment 1B.1 and a description of
the PHA’s preliminary intentions, to the extent formulated, with respect to: a)
whether the conversion will include a transfer of assistance and potential
locations to which the assistance would be transferred, b) plans to partner with
an entity other than an affiliate or instrumentality of the PHA if such partner
will have a general partner or managing member ownership interest in the
proposed Project Owner, c) change in the number or configuration of assisted
units or any other change that may impact a household’s ability to re-occupy the
property following repairs or construction, d) de minimis reduction of units
which will have been vacant for more than 24 months at the time of RAD
Application, e) the scope of work and potential relocation scenarios, f) an
overview and projected timeline of the the conversion process, and g) primary
differences for residents between public housing and the Section 8 platform
(PBV or PBRA) of the conversion;4B-5 and
5. Submit the following information with the RAD Application60:
a. Certification that the RIN and notice of the tenant meetings have been
provided to all residents in accordance with this Notice;
4B-5 Resident Education materials on a variety of topics, including the conversion process, the differences
between PBV and PBRA, relocation and other topics are available at
https://www.hud.gov/RAD/residents/PublicHousingResidents.
60 It is understood that at the application stage, this information is very preliminary and may be presented as
such. However, as noted below, additional meeting(s) with the residents should be held as this information is
developed.
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b. A summary of meeting attendees and participation by residents, PHA staff,
and other attendees, e.g. a sign-in sheet or list of registrants or participants
for calls or online meetings;
c. A description of the PHA’s efforts to promote tenant participation in
meetings, including the dates and times of meetings to accommodate a
variety of schedules, efforts to accommodate residents with disabilities or
Limited English Proficiency in accordance with subparagraph H below, the
format of meetings (in-person, electronic, or both), location of in-person
meetings, efforts to overcome technology barriers for virtual meetings, and
other relevant efforts as the PHA determines appropriate (e.g., offering
childcare or refreshments);
d. Meeting agenda(s) and copies of any handouts or presentation materials;
e. A summary of questions and comments asked in the meeting or submitted
by residents to the PHA and responses provided to the residents by the PHA
to those questions and comments;
f. Identification of how residents who were unable to attend meetings are able
to access materials or submit questions or comments;
g. Identification of materials that were shared with residents to communicate
resident protections, which can include but are not limited to the following
materials: HUD resident rights brochure; HUD resident fact sheets; HUD
RAD video; or other resident education materials created by HUD or the
PHA; and
h. Where there is a duly elected resident organization, contact information for
at least one elected leader of such organization.
B. Before Concept Call. After a PHA is selected to participate in RAD (i.e., after
receipt of the CHAP) but prior to requesting a Concept Call, the PHA must have
at least two additional meetings with residents to discuss updated conversion
plans covering, at a minimum, the topics listed above, and to clearly describe and
solicit feedback on proposed or needed property improvements, management
changes, services, or other items as appropriate. Meetings should be spaced to
provide meaningful updates to residents on the progress of the conversion, to
offer opportunities for residents to provide input, and to permit residents to raise
questions and concerns. PHAs are encouraged to meet with residents each
calendar quarter and to provide access to written materials describing the
conversion prior to each meeting. The PHA shall submit in the Financing Plan a
summary of questions and comments received in connection with the required
resident meetings and the responses provided to the residents by the PHA.
Additional resident meetings may be required by HUD after the Concept Call if
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HUD determines that they are needed, for example, to provide residents with up-
to-date information regarding the conversion.
C. Before Closing. After issuance of the RCC and prior to closing, the PHA must
notify residents in writing that conversion of the project has been approved and
hold an additional resident meeting following such notification.4B-6 In the
meeting and in the written notice, the PHA must address, as appropriate, the
anticipated timing of the conversion, the anticipated duration of the Work, the
revised terms of the lease and house rules, procedures for execution of the new
lease, any anticipated relocation, and opportunities and procedures for the
exercise of the choice-mobility option. PHAs must also provide access to or
copies of the new lease form and any applicable house rules. HUD will require
evidence of such notice and meeting(s) prior to closing.
Households in the affected project(s) who do not want to transition to the Section
8 program may be offered, if available, the opportunity to move to other public
housing owned by the PHA.
D. Additional RAD Meetings. The required meetings must discuss any substantial
change to the conversion plans relative to what was presented in the previous
resident meetings. Additional meetings with residents are required if one of the
required meetings does not occur within a reasonable time (approximately three
months) following a substantial change to the conversion plan. A substantial
change to the conversion plans includes, but is not limited to:
• Introduction or abandonment of a transfer of assistance or a
material change in the projected location to which the assistance
would be transferred;
• Plans to partner with an entity other than an affiliate or
instrumentality of the PHA if such partner will have a general
partner or managing member ownership interest in the proposed
Project Owner;
• Change in the number or configuration of assisted units or any other
change that may impact a household’s ability to re-occupy the
property following repairs or construction;
• De minimis reduction of units which had been vacant for more than
24 months at the time of RAD Application;
4B-6 In certain circumstances where the closing is anticipated to occur soon after the issuance of the RCC, the
Owner may request and HUD may approve the before-closing written notice and resident meeting to occur
prior to issuance of the RCC.
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• A substantial change in the proposed scope of the Work or
relocation plans;
• A material change in utility allowances; or
• Other scenarios which HUD may prescribe.
E. Significant Amendment Process. The requirements for resident notifications and
meetings for the RAD program are separate from, and complementary to, the
resident notification and consultation requirements under the significant
amendment process (24 CFR part 903).
F. Other Requirements. A PHA must comply with all applicable relocation
requirements (see Section 1.4.A.5) and all applicable resident consultation and
notification requirements. Refer to the RAD Fair Housing, Civil Rights, and
Relocation Notice for resident consultation requirements regarding relocation.
G. Meeting Participation. PHAs must provide adequate notice of meetings, should
consider practices to reduce barriers to resident participation in meetings, and
should conduct meetings in a place and time to foster participation. PHAs should
consider the timing of resident meetings (e.g., times of day, days of the week
including weekends) to encourage participation by residents with a variety of
preferences and schedules. PHAs must make meeting notifications and meeting
materials available in an accessible format (e.g., website, hard copies in the
management office). Resident meetings can be offered in various formats
including electronically (e.g., Zoom), in person, and/or in a hybrid meeting
format. If a resident meeting is offered virtually, PHAs should consider residents’
computer and internet access and undertake reasonable measures to address
technological barriers. Relevant parties from the PHA or the Project Owner
should be available to respond to questions or comments from residents.
Additionally, PHAs may not restrict attendance at the meetings unless necessary
for the effective conduct of the meeting, for example, restricting attendance to
accommodate size constraints of the venue of the meeting.
H. Accessibility Requirements. When providing resident notification and meetings,
a PHA must use effective communication for persons with hearing, visual, and
other communication-related disabilities consistent with Section 504 of the
Rehabilitation Act of 1973 and, as applicable, the Americans with Disabilities Act
of 1990. Effective communication may include, but is not limited to, providing
written materials in appropriate alternative formats (e.g., Braille, large type,
accessible email or websites), as needed, and providing sign language interpreters
and assistive listening devices at resident meetings, as needed (24 CFR § 8.6).
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Additionally, resident meetings must be held in facilities that are physically
accessible to persons with disabilities. Where physical accessibility is not
achievable, a PHA must use alternative methods to meet with qualified
individuals with disabilities, such as holding meetings at an alternate accessible
site or offering in-home meetings. Such meetings must be provided in the most
integrated setting appropriate to the needs of qualified individuals with
disabilities. The most integrated setting appropriate to the needs of qualified
individuals with disabilities is a setting that enables individuals with disabilities to
interact with nondisabled persons to the fullest extent possible (28 CFR part 35,
appendix B).
Additionally, a PHA must provide meaningful access to its programs and
activities for persons who have a limited ability to read, speak, or understand
English. For projects undergoing RAD conversion, a PHA must provide language
assistance to residents of the project who are Limited English Proficient (LEP) to
ensure that they have meaningful access to RAD resident notifications and
meetings. Such language assistance may include, but is not limited to, providing
written translation of notices regarding the plans for the project and relocation and
oral interpretation at resident meetings. For guidance on providing language
assistance to persons with LEP, please see Final Guidance to Federal Financial
Assistance Recipients Regarding Title VI Prohibition Against National Origin
Discrimination Affecting Limited English Proficient Persons (72 FR 2732).
I. Resident Engagement Requirements in a Faircloth-to-RAD conversion. In
addition to requirements for a PHA to include a Faircloth-to-RAD conversion in
its Five-Year Plan, Annual Plan, or MTW Plan, HUD is requiring the following
engagement with residents of an impacted property. When a PHA is developing
new public housing units under Faircloth-to-RAD, this Section 1.8.I shall apply in
lieu of Sections 1.8.A through 1.8.D.
1. If the property is occupied at the time the PHA requests a Notice of
Anticipated RAD Rents, Sections 1.8.A through 1.8.D shall apply with the
following modifications. The PHA must have complied with Section
1.8.A prior to submitting the request for a Notice of Anticipated RAD
Rents. References to the Concept Call in Section 1.8.B shall be deemed to
be references to the submission of the public housing acquisition, mixed
finance development, or other development proposal pursuant to the
applicable provisions of 24 CFR part 905. References to the RCC in
Section 1.8.C shall be deemed to be references to HUD approval of such
proposal and references to closing in Section 1.8.C shall be deemed to be
the completion of such approved acquisition or development.
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2. If tenants are admitted to the property in accordance with admissions
requirements after issuance of an RCC and prior to the Closing of the
RAD conversion, the PHA shall, prior to the execution of the lease:
i. Provide written notification in the form of a RAD Information
Notice (RIN) to residents of projects proposed for conversion to
inform the residents of the PHA’s intent to pursue a conversion
and of their rights in connection with a proposed conversion4B-7;
ii. Provide a written explanation of the leasing and occupancy
changes that will occur soon after move-in resulting from the RAD
conversion to Section 8; and
iii. Meet with each resident household to discuss the conversion,
explain the written materials referenced in subparagraph i and ii,
above, and provide the residents an opportunity to ask questions.
The resident meeting can be conducted on an individual household
basis.
J. HUD Participation. At HUD’s request, the PHA must provide an opportunity for
a representative from HUD to attend resident meetings either in-person or
virtually.
K. Contacting HUD. Should residents and/or their advocates have concerns, require
clarification on RAD program guidelines, including those focused on resident
engagement and protections, or need additional support which cannot be met by
the PHA, they may contact HUD at rad@hud.gov.
2. Attachment 1A, Paragraph R is revised as follows:
R. Resident Participation and Comments. Provide:
a. A summary of meeting attendees and participation by residents, PHA staff,
and other attendees;
b. A description of the PHA’s efforts to promote tenant participation in
meetings, including the dates and times of meetings to accommodate a variety
of schedules, efforts to accommodate residents with disabilities or Limited
English Proficiency in accordance with Section 1.8.H, the format of meetings
(in-person, electronic, or both), location of in-person meetings, efforts to
4B-7 In the rare event that relocation may be contemplated after issuance of the CHAP, the PHA must inform
any household admitted prior to the issuance of the CHAP that they may be eligible for applicable relocation
protections as described in the RAD Fair Housing, Civil Rights and Relocation Notice.
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overcome technology barriers for virtual meetings, and other relevant efforts
as the PHA determines appropriate (e.g., offering childcare, refreshments);
c. Meeting agenda(s) and copies of handouts or presentation materials;
d. A summary of questions and comments asked in the meeting or submitted by
residents to the PHA and responses provided by the PHA to those questions
and comments;
e. Identification of how residents who were unable to attend meetings are able to
access materials or submit questions or comments and receive responses;
f. Identification of materials that were shared with residents to communicate
resident protections, which can include but are not limited to the following
materials: HUD resident rights brochure; HUD resident fact sheets; HUD
RAD video; or other resident education materials created by HUD or the
PHA; and
g. Where there is a duly elected resident organization, contact information for at
least one elected leader of such organization.
SECTION III: ENERGY EFFICIENCY AND CLIMATE RESILIENCE.
The provisions of this Section III shall be effective for any transaction that has not submitted a
complete Financing Plan on or before the 30th day following the Effective Date. All other
transactions will be subject to the previous provisions of the RAD Notice, Rev-4.
1. The Section 1.4.A.2 is deleted in its entirety and replaced as follows:
2. Energy Efficiency and Climate Resilience. For all projects retrofitted under a RAD
conversion, if systems and appliances are being replaced as part of the Work identified in
the approved Financing Plan and RCC, PHAs shall utilize the most energy- and water-
efficient options that are financially feasible and that are found to be cost-effective by the
CNA described above. The CNA will provide detailed analyses of energy-saving
alternatives and other green building components, including payback and cost/saving
analyses. The use of Energy Star®, WaterSense® or Federal Energy Management
Program (FEMP)-designated products and appliances replacements, if any such
designation is available for the applicable system or appliance, is presumed to be the
minimum threshold for meeting such requirement.8 Where the CNA indicates a
component will improve indoor air quality and/or reduce overall environmental impact at
little or no cost premium, the PHA shall use such component consistent with the
principles and best practices of the green building industry.
8 For Energy Star®, see http://www.energystar.gov/. For WaterSense®, see http://www.epa.gov/watersense/. For
FEMP, see http://www1.eere.energy.gov/femp/.
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Where a PHA is planning to use a RAD conversion in conjunction with new construction,
projects shall at a minimum meet or exceed the 2021 International Energy Conservation
Code (IECC) for single family or low-rise multifamily properties (three stories or fewer)
or the ASHRAE 90.1-2019 standard for mid to high-rise multifamily projects, or any
successor codes that are adopted by HUD under the requirements of the Energy
Independence and Security Act of 2007. Additionally, all new construction projects are
encouraged to meet or exceed the requirements for Energy Star for New Homes or
Energy Star for Multifamily New Construction. Further, in new construction and
applicable retrofit projects, HUD strongly encourages the use of industry-recognized,
green building certifications that support net-zero and net-zero ready construction, such
as DOE Zero Energy Ready Homes - Multifamily, Enterprise Green Communities Plus,
Passive House Core or Zero, International Living Future Institute Core Green Building
Certification or Zero Energy and Zero Carbon, National Green Building Standard with
net zero energy badge, and LEED Zero Energy or Zero Carbon.
As noted in Section 1.4.B.6, numerous state and local governments offer other funding
programs which can be used as sources in financing plans, particularly if a scope of work
includes “green retrofitting” or weatherization components. In many localities, utility
companies and appliance manufacturers offer grants related to energy-saving retrofit
components. (http://www.dsireusa.org/ is one source of information on incentives and
policies state by state.)
Renewable Energy. PHAs are also strongly encouraged to assess the viability and
potential cost savings of renewable energy sources for the site and design roofs and other
systems accordingly. For example, PHAs can use the National Renewable Energy
Laboratory (NREL) REopt tool to evaluate the economic viability and cost savings of
multiple renewable energy options.
Climate Resilience. All PHAs must:
1. Analyze likely hazard risk by entering property addresses into FEMA's National Risk
Index (NRI) and identifying which hazards are "relatively high" or "very high" for
their census tract. If a census tract hazard does not apply to their specific site (e.g., a
site located on top of a hill may not face riverine flooding risk), the PHA should
explain the non-applicability of the NRI rating. Applicants may also consider hazards
identified in climate projection tools as applicable: Climate Explorer, Flood Factor,
NOAA Sea Level Rise Viewer, Climate Central Coastal Risk Screening Tool (by year
and/or water level), and Climate Mapping for Resilience and Adaptation (CMRA).
2. Provide a narrative description detailing how the scope of work addresses or mitigates
against the identified climate hazard risks. PHAs are strongly encouraged to consider
strategies to reduce the risk of resident injury and property damage when hazards
14
strike. Hazard-specific resilience strategies to consider include, but are not limited
to:
• Potable water storage (one gallon per person for five to seven days);
• Back-up power (generators or battery back-up for critical loads) to last five to
seven days;
• Indoor air quality: sensors and purifiers;
• Flood protection: flood vents, water-resistant materials, roof sealing/water
barrier, flood gates, flood doors, sandbags and other deployable barriers;
• Floodwater control: backwater valves, sump pumps, permeable pavement,
green roof, bioswales, dry wells;
• Heat control: multi-pane and/or low-e coated windows, window shading, cool
roofing products, enhanced roof and wall insulation;
• Fire protection: compliance with 2021 International Wildland-Urban Interface
Code, class A roof, noncombustible or fire-resistant materials, fine mesh vent
screens, enclosed decks and eaves, tempered glass for first-floor windows; and
• Winter and Rain Storm protection: impact-rated windows, FORTIFIED
Roof ™, buried utility lines.
3. Informed by the climate hazard risks, PHAs must also create a property-wide disaster
plan including an evacuation plan that describes safe egress route(s), plans for
evacuating residents with disabilities and special needs, and clear communication of
the evacuation plan and safety resources for residents. For residents with disabilities
and special needs, this must include a plan for emergency evacuation and relocation,
including discussion of facilities of like capacity that are equipped to provide critical
needs-related care and services at a level like the originating facility.
2. New sub paragraphs 7 and 8, are added to Attachment 1A, Paragraph C.
7. Identify which hazards are "relatively high" or "very high" for their county and census
tract according to FEMA's National Risk Index (NRI) and provide a narrative description
detailing how the scope of work addresses or mitigates against the climate hazard risks.
8. Until such time as regulations promulgated pursuant to Executive Order 13690 become
effective, for all buildings that will be newly constructed (including gut rehab, where
physically and financially feasible) and will be located in the FEMA 500-year floodplain
(or 100-year floodplain where FEMA has not mapped the 500-year floodplain), all
relevant building mechanicals (HVAC, cogeneration, hot water heating, and other
systems) and all residential units must be designed to be at a height no less than the
greater of the 500-year floodplain or two feet above the 100-year floodplain based on
FEMA Flood Insurance Rate Maps (FIRMs). Any interior non-residential spaces – such
15
as common areas, community centers, and lobbies – that are not elevated to this level,
must at a minimum be floodproofed to at least two feet above the 100-year floodplain.
For buildings outside of FEMA floodplains, PHAs are encouraged to consult other
sources (e.g., historical flooding of neighboring sites, NOAA Sea Level Rise Viewer,
Flood Factor) to consider future flood risk and design accordingly.
SECTION IV: HARMONIZING RADON POLICIES IN RAD CONVERSIONS.
The provisions in this Section IV shall be effective for any transaction that has not submitted a
Financing Plan or Conversion Plan on or before the 14th day following the Effective Date. All
other transactions will be subject to the previous provisions of the RAD Notice, Rev-4.
1. Attachment 1A, the last paragraph of Paragraph D is deleted in its entirety and replaced
with the following:
Additionally, the PHA must submit a Radon Report consistent with the requirements
of Section 9.6.3 of the MAP Guide (or successor provision) for HUD to review.
2. Attachment 2A:
1. Paragraph K.3 is deleted in its entirety.
2. The following language is added to the end of Paragraph K:
Additionally, the PHA must submit a Radon Report consistent with the requirements
of the Section 9.6.3 of the MAP Guide (or successor provision) for HUD to review.
3. Attachment 4A, the last paragraph of Paragraph I is deleted in its entirety and replaced with
the following:
Additionally, the PHA must submit a Radon Report consistent with the requirements
of the Section 9.6.3 of the MAP Guide (or successor provision) for HUD to review.
SECTION V: TREATMENT OF ZERO-HAP FAMILIES.
The provisions of this Section V are effective as of the Effective Date. With respect to families
that are currently paying more than the Zero-HAP Rent Cap (described below), the PHA must
inform the Project Owner and the family by notice of the amount of the new alternate rent to be
paid to the owner by the zero-HAP family and the date the change shall go into effect, which
must be no later than ninety (90) days after the issuance date of this notice.
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1. The Definitions section is amended to add a new definition:
Gross Rent. The Gross Rent shall equal the contract rent plus any utility
allowance for the unit.
2. Section 1.6.C.9 is deleted in its entirety and replaced with the following:
When Total Tenant Payment Exceeds Gross Rent. Under normal PBV rules, the PHA
may select an occupied unit to be included under the PBV HAP Contract only if the
unit’s occupants are eligible for housing assistance payments (24 CFR § 983.53(c)). Also,
a PHA must remove a unit from the HAP Contract when no assistance has been paid for
180 days because the family’s TTP has risen to a level that is equal to or greater than the
Gross Rent. (24 CFR § 983.258 and § 983.211).
Pre-Conversion Residents. Since the rent limitation under this Section of the Notice may
result in current residents having TTPs that exceed the Gross Rent, 24 CFR §983.53(c)
does not apply in order to provide RAD PBV assistance to residents who were living in
the Converting Project prior to conversion. As necessary to further implement the
alternative requirements described below, HUD is waiving 24 CFR §983.258 and
§983.211, as well as the provisions of Section 8(o)(13)(H) of the Act and the
implementing regulations at 24 CFR § 983.301 as modified by Section 1.6.B.5 of this
Notice.
HUD is establishing an alternative requirement that the unit for a family with a TTP that
equals or exceeds Gross Rent must be placed on the PBV HAP Contract and the family
shall be admitted to the PBV program. In such cases the resident is considered a
participant under the PBV program and all the family obligations and protections under
RAD and PBV apply to the resident.
During any period when the family’s TTP is equal to or above the Gross Rent, the zero-
HAP family will pay an alternate rent to owner that is the lower of:
a. the family’s TTP less the Utility Allowance, subject to any required phase-in
pursuant to Section 1.6.C.3 of this Notice; or
b. the Zero-HAP Rent Cap, which is the lower of either:
i. 110% of the applicable FMR less the Utility Allowance; or
ii. In the event the units are subject to more restrictive rent setting
requirements under the LIHTC or HOME programs, or other programs
approved by HUD on a project-specific basis, the rent to owner set to
comply with such requirements.
17
During any period that the family’s TTP falls below the Gross Rent, the normal PBV
requirements apply and the family would pay 30% of adjusted income, less utility
allowance.
After a family has paid the Zero-HAP Rent Cap as set by this Section for a period of 180
days, the PHA shall remove the unit from the HAP Contract and the family’s
participation in the PBV program ends.41 If the Covered Project is fully assisted and the
family subsequently leaves the property, the PHA must reinstate the unit back onto the
HAP Contract and admit an eligible family. If the Covered Project is partially assisted
and the family subsequently leaves the property, the unit must be reinstated back onto the
HAP Contract unless the PHA previously substituted a different unit on the HAP
Contract in accordance with 24 CFR § 983.207 or, where “floating units” have been
permitted, Section 1.6.B.10 of the Notice.
Additionally, if the family continues to reside in the project after the family’s unit was
removed from the HAP Contract, the family may request to return to the PBV program if
the family’s income subsequently decreases to the extent that the family’s TTP is less
than the Zero-HAP Rent Cap set by this section and the family is otherwise eligible for
PBV assistance. The PHA shall, at the earliest opportunity4B-8, reinstate the family’s unit
back onto the HAP Contract to provide rental assistance to the family. All PBV
requirements with respect to the unit, such as compliance with HQS, apply while the unit
is under the HAP Contract or added back to the HAP Contract.
41 For example, a public housing family residing in a property converting under RAD has a TTP of $600. The
property has an initial Contract Rent of $500, with a $50 Utility Allowance (Gross Rent = $550). The FMR for the
unit size in the area in which the project is located is $800. Following conversion, the family is responsible for
paying $550 in tenant rent. If the resident’s income rises or is subject to a rent increase phase-in and all other
conditions remain the same, the family would pay TTP until the tenant rent reached the Zero-HAP Rent Cap of $830
($880, which is 110% of the $800 FMR, minus the $50 utility allowance), at which point the family would continue
paying $830, and unless the family’s income and TTP subsequently decreases, the unit would be removed from the
contract after 180 days. Families paying less than TTP because of the phased in Tenant Rent Increase
alternative requirement are not paying the Zero-HAP Rent Cap and are not subject to this 180-day
requirement. However, if the family’s Calculated PBV TTP under section 1.6.C.3 is more than the Gross Rent,
the family is a zero-HAP family and the applicability of the phased in Tenant Rent increase would end when
the amount the family would pay under that alternative requirement meets or exceeds the Zero-HAP Rent
Cap. At that point in time the family would pay the Zero-HAP Rent Cap and would be subject to all zero-HAP
family requirements of this section, including the 180-day requirement.
4B-8 If the project was partially assisted and the PHA previously substituted a different unit on the HAP
Contract, the PHA shall substitute the family’s unit for a vacant unit on the HAP Contract if there is a vacant
unit at the time of the request, or by doing so as soon as a unit on the HAP Contract becomes vacant if there
are no vacant units on the HAP Contract at the time of the family request.
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New Admission Families. Unless a PHA requests and receives the waiver described
below, any new admission to the Covered Project must meet the eligibility requirements
at 24 CFR § 982.201 and require a subsidy payment at admission to the PBV program,
which means the family’s TTP may not equal or exceed the Gross Rent for the unit at that
time. Furthermore, a PHA must remove a new admission family’s unit from the PBV
HAP Contract when no assistance has been paid for 180 days because a new admission
family’s TTP subsequently increased to equal or exceed the Gross Rent. However, HUD
is imposing an alternative requirement in such cases. If the project is fully assisted and
the family subsequently leaves the property, the PHA must reinstate the unit on the HAP
Contract and admit an eligible family. If the project is partially assisted, the PHA may
substitute a different unit for the unit on the HAP Contract in accordance with 24 CFR
§ 983.207 or, where “floating units” have been permitted, Section 1.6.B.10 of the Notice.
In circumstances where low RAD PBV rents may prohibit a significant number of
otherwise eligible families on the waiting list from being admitted to the project because
they do not require subsidy, and which could consequently create an undue concentration
of poverty at the project compared to non-RAD PBV projects, a PHA may request a
waiver of 24 CFR §§983.53(c), 983.259, 983.211, and 983.301 from HUD for the
Covered Project. The waiver will apply the alternative requirements applicable to the
pre-conversion residents in this Section to new admission families.
The PHA may request the waiver during the RAD conversion process or may
subsequently request the waiver any time after the effective date of the HAP Contract. In
order for the waiver to be approved, the PHA must demonstrate that based on the RAD
rent calculated in accordance with Attachment 1C, the monthly two-bedroom RAD Gross
Rent is less than: 30% of the monthly income of a family of four at the midpoint between
the Very Low Income (VLI) HUD Income Limit and Extremely Low Income (ELI) HUD
Income Limit for the area in which the Covered Project is located.
For waivers submitted during the conversion process, the Office of Recapitalization may
grant the waiver after review of the Financing Plan and confirmation that the RAD rents
meet the waiver rent threshold described above.4B-9 The Office of Recapitalization shall
document the waiver by adding an additional provision to the RCC before closing. For
waivers submitted after the effective date of the HAP Contract, the waiver is submitted
through the normal waiver process outlined in Notice PIH 2018-16 (or any successor
4B-9 An example of the waiver rent threshold calculation is as follows. Assume the applicable VLI limit is
$46,850 and the ELI limit is $28,100. The midpoint income is $37,475 ($46,850 + $28,100 = $74,950;
$74,950/2 = $37,475). To calculate the affordable monthly rent, the midpoint income is divided by 12 and
multiplied by 0.30 ($37,475/12 = $3,123; $3,123*0.30 = $937). If the RAD Rent is less than $937, the Covered
Project is eligible for the waiver.
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notice). In both cases, the approved waiver will be for the initial term of the PBV HAP
Contract.
If the waiver is approved, the new admission families covered under the waiver are
participants under the PBV program, all the family obligations and protections under
RAD and PBV apply to the family, the RAD PBV families shall be subject to the same
alternative requirements applicable to the pre-conversion residents under this Section,
and the unit is subject to all PBV program requirements, as modified by this Notice.
Further, Covered Projects that receive the waiver shall be subject to an alternative income
targeting requirement that at least 75% of new admissions to the PBV units (both RAD
and non-RAD PBV units) in the Covered Project in any PHA fiscal year are ELI
families.4B-10 If there are less than four new admissions to the Covered Project in a PHA
fiscal year, the income targeting is determined by combining the new admissions for that
fiscal year with the new admissions for the subsequent fiscal year (or years) until the
combined total of new admissions equals or exceeds four for those consecutive fiscal
years. 4B-11
3. Section 1.7.B.9 is deleted in its entirety and replaced with the following:
When Total Tenant Payment Exceeds Gross Rent. Under normal PBRA rules, any
new admission to the PBRA program must require a subsidy payment at admission to the
program, which means their TTP may not equal or exceed the Gross Rent for the unit at
that time (Section 3-6 F.4 of HUD Handbook 4350.3, REV-1). Further, a resident’s
eligibility ends and a Project Owner must process a termination of assistance when the
family’s TTP has risen to a level that is equal to or greater than the Gross Rent and
increase the tenant rent to the contract rent (assuming that the tenant does not receive the
benefit of any other type of subsidy) (24 CFR 880.603(c)(3) and Section 8-5 C and 8-6
A.1 of HUD Handbook 4350.3, REV-1).
Since the rent limitation under this Section of the Notice may prevent the admission to a
RAD PBRA Unit of existing residents or new admissions otherwise eligible for PBRA
assistance, HUD is establishing an alternative requirement and requiring that families
4B-10 This alternative requirement for the Covered Project is in addition to the PHA’s HCV/PBV program
income targeting requirements at 24 CFR 982.201(b)(2). Admissions to the Covered Project continue to be
taken into account when determining income targeting in accordance with 24 CFR 982.201(b)(2).
4B-11 For example, assume in fiscal year in which the waiver was granted the Covered Project had one new
admission and in following fiscal year had three new admissions. Compliance with the Covered Project
income targeting requirement would be determined based on the combined total of the 4 new admissions
over the two fiscal years (3 of the 4 new admissions to PBV units the Covered Project must have been ELI
families).
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with a TTP that equals or exceeds Gross Rent who would otherwise qualify for assistance
in the unit, shall be admitted and allowed to occupy the unit. HUD is also requiring that
the units occupied by such families shall be placed on and/or remain under the HAP
Contract when TTP equals or exceeds the Gross Rent.
For residents living in the Converting Project prior to conversion and for all new
admissions to the Covered Project during the initial term of the contract, HUD is
establishing the alternative requirement that, during any period when the family’s TTP is
equal to or above the Gross Rent, the zero-HAP family will pay an alternate rent to owner
that is the lower of:
a. the family’s TTP less the Utility Allowance, subject to any required phase-in
pursuant to Section 1.6.C.3 of this Notice; or
b. the Zero-HAP Rent Cap, which is the lower of either:
i. The applicable FMR less the Utility Allowance; or
ii. In the event the units are subject to more restrictive rent setting
requirements under another federal, state, or local program (e.g.
LIHTC or HOME), the rent to owner set to comply with such
requirements.
As necessary to implement this alternative requirement, HUD is waiving 24 CFR
880.603(c)(3) and sections 3-6 F.4, 8-5 C., and 8-6 A.1. of HUD Handbook 4350.3,
REV-1. Tenants will retain all of the rights under the Model Lease, including the right to
occupy the unit, as well as those provided through this Notice. Additionally, tenants will
still be subject to the requirements for Section 8 tenants, including the requirements
concerning reexamination of family income and composition found in 24 CFR part 5 in
order to determine the Zero-HAP Rent Cap. When TTP equals or exceeds Gross Rent, the
Zero-HAP Rent Cap collected by the Project Owner is considered project funds and must
be used for project purposes. Subsidy may subsequently be reinstated if the tenant
becomes eligible for subsidy.
The Project Owner is not required to process these individuals through Multifamily
Housing’s Tenant Rental Assistance Certification System (TRACS) but may be required
to do so in the future when a future revision of the TRACS can accept such certifications.
All normal actions for the contract rent in TRACS shall continue for these units,
including application of the OCAF adjustment to the contract rent indicated in the HAP
Contract, since the OCAF adjusted rent will still be in effect whenever the unit is
occupied by a family eligible for rental subsidy.
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SECTION VI: FAIRCLOTH-TO-RAD DEVELOPMENTS
1. The Definitions section is amended to include the following definitions:
Faircloth-to-RAD. The process by which PHAs develop additional public
housing units pursuant to the Faircloth Limit using the public housing development
process at 24 CFR Part 905, Subpart F with conditional pre-completion approval to
convert these units to a long-term Section 8 contract through RAD following completion
of construction, rehabilitation, or acquisition under the public housing development
process.
Faircloth Limit. The limitation on the number of new public housing units a PHA
may develop as described in Section 9(g)(3) of the Act.
Notice of Anticipated RAD Rents (NARR). Conditional commitment provided to
the PHA for units the PHA proposes to develop under Faircloth-to-RAD that describes
the terms under which HUD will issue a CHAP to the PHA once the units are developed
and accepted into the public housing program.
2. Item 1 under Section 1.3 is deleted in its entirety and replaced with the following:
1. Have public housing units under an ACC or have available authority to develop units
pursuant to the Faircloth Limit;
3. Section 1.9, the first two paragraphs of A. are deleted in their entirety and replaced with the
following:
A. General Requirements. All applicants must complete the RAD Application, which
HUD will make available on the RAD website (www.hud.gov/rad), along with all
other required submittals. The RAD Application will include certain pre-populated
project data and will require the applicant to input summary information regarding the
PHA’s tentative plans.
PHAs apply by Project. A Project may consist of an entire Asset Management Project
(AMP), a part of an AMP, multiple AMPs, or a project proposed for public housing
development under 24 CFR Part 905. If a PHA desires to convert only a portion of a
public housing AMP (e.g., only the high-rise portion of a project that is currently
combined with scattered sites) and maintain the remaining portion as public housing,
the PHA should indicate as such in its application (i.e., the PHA will not need to
request a change in configuration for the project in order to submit the application).
Similarly, a PHA may indicate in its application if it is applying for multiple public
22
housing AMPs as a single Project. PHAs pursuing a Faircloth-to-RAD conversion
must request a Notice of Anticipated RAD Rents (NARR) in lieu of the RAD
Application.
4. A new Section 1.6.B.5.f is added prior to the final paragraph of Section 1.6.B.5
(commencing with the words “Notwithstanding HUD’s calculation of the initial contract
rent…”) and such final paragraph shall be designated as Section 1.6.B.5.g “Initial PBV Rent
Cap”:
f. Faircloth-to-RAD Initial Contract Rents. The initial contract rents for the
Faircloth-to-RAD units will be based on the project’s reasonably anticipated subsidy
under the public housing program in accordance with a “RAD rent base year”
described in Attachment 1C, as set forth in the NARR. In addition to applicable
flexibilities as set forth in this Section 1.6.B.5, non-MTW PHAs may use existing
HAP reserve funds to set the initial contract rents higher than the contract rent that is
set forth in the NARR if the project meets both of the following conditions:
i. The Faircloth-to-RAD units may not make up more than:
a) The greater of 25 units or 25% of the units in the project; or
b) The greater of 25 units or 40% of units in the project if it is in census tract
where the poverty rate is no greater than 20%.
c) The limitations in (a) and (b) above shall not apply to units that are made
exclusively available to people who are elderly, eligible for supportive
services, or youth receiving HCV Family Unification Program assistance.
ii. The Faircloth-to-RAD project is in one of the following locations:
a) A Metropolitan Statistical Area, Micropolitan Statistical Area, or ZIP code
where the rental vacancy rate is less than 4 percent; or
b) A ZIP code where 90 percent of the Small Area FMR is more than 110
percent of the metropolitan area FMR.
When a non-MTW PHA uses existing HAP reserves to supplement the initial contract
rents, HUD will only provide new incremental voucher funding for the first full
calendar year following conversion using per unit costs (PUCs) based on normally
applicable public housing subsidy levels. The initial contract rent is still subject to all
other applicable program caps, and any use of the flexibilities referenced above in
setting higher initial contract rents shall be subject to subsidy layering review.
5. A new Section 1.7.A.5.f is added:
f. Faircloth-to-RAD Initial Contract Rents. The initial contract rents for the
Faircloth-to-RAD units will be based on the project’s reasonably anticipated subsidy
under the public housing program in accordance with a “RAD rent base year”
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described in Attachment 1C, as set forth in the NARR. Additionally, PHAs may use
any other applicable flexibility as set forth in this Section 1.7.A.5 to set the initial
contract rents higher than the contract rent that is set forth in the NARR.
6. HUD will evaluate the impact of the rent setting authorities set forth in Section 1.6.B.5.f
based on data available as of September 30, 2024. HUD will not accept applications for NARRs
for additional units using the rent setting authorities set forth in Section 1.6.B.5.f from September
30, 2024, until the analysis is complete and HUD determines whether to resume accepting
applications for NARRs for additional units (communicated on www.hud.gov/rad) or whether to
issue revised policy guidance.
SECTION VII: HOUSING QUALITY STANDARDS.
This Section is effective immediately for any transaction that has not received an RCC as of the
Effective Date. All closed and other transactions that have received an RCC are subject to the
previous provisions of the RAD Notice, Rev-4.
1. Section 1.6.B.10 is deleted in its entirety and replaced as follows:
HQS Inspections. Under current regulations at 24 CFR 983.103(b) a unit covered
under a HAP Contract must be inspected for compliance with HQS before assistance
can be paid on behalf of a household, unless the PHA is using HOTMA non-life
threatening and alternative inspection provisions. In addition, section 8(o)(8)(A) of
the Act provides that HAP Contract units must be inspected to ensure compliance
with HQS prior to payment of any assistance on behalf of a family. When Work is
occurring under RAD, HUD requires that all units undergo inspection for HQS no
later than the date of completion of the Work as indicated in the RCC. To place the
unit under HAP contract and commence making payments, the PHA may rely on the
owner’s certification that the owner has no reasonable basis to have knowledge that
life-threatening conditions exist in the unit or units to be added to the HAP Contract
instead of conducting an initial inspection. During the period of the Work, HQS
requirements apply. The PHA must enforce the Project Owner’s obligations under
this paragraph and conduct inspections when needed, for example in response to
tenant complaints or other information coming to its attention, and the owner must
correct any deficiencies in accordance with HQS requirements (i.e. no more than 24
hours for a life-threatening deficiency, and within no more than 30 calendar days or
any PHA-approved extension for other defects, but no later than the date of the
completion of the Work as indicated in the RCC). To effectuate the revised initial
inspection requirement for RAD PBV units and non-RAD PBV units within a
Covered Project when such units are replacing public housing units at the time of
24
conversion, HUD is waiving and establishing an alternative requirement to 24 CFR
983.103(b) and section 8(o)(8)(A) of the Act.
SECTION VIII. STREAMLINING RAD/SECTION 18 BLENDS.
1. Section 1.5.B.2 is deleted in its entirety and replaced as follows:
2. Joint RAD and Section 18 applications. A PHA may be able to combine RAD and
Section 18 activities towards the preservation of a project. In certain circumstances as
determined by HUD (for additional details see PIH Notice 2021-07, or any successor
Notice), HUD will offer the PHA a streamlined process for securing HUD approval for
the units eligible for Section 18 applications.
a. If a PHA is combining the use of RAD and Section 18 activities at a
project, all RAD relocation requirements (such as the resident notice and
meeting requirements, the right to return and relocation assistance and
payments as described in the RAD Fair Housing, Civil Rights, and
Relocation Notice) shall apply to residents of the Section 18 units in lieu
of the relocation requirements under 24 CFR part 970.21. The PHA may
not provide different relocation rights and benefits to residents of the
project on the basis of whether they will reside in a RAD Section 8 PBV
or PBRA unit or a Section 18 unit to be assisted under Section 8 PBV.
b. If, at a converting project, a PHA is using 24 CFR 970.17(b) or 970.17(c)
to dispose of other units at the project justified on the grounds that
disposition allows more efficient or effective on-site or off-site
development (970.17(b)) or to dispose for reasons and goals of the PHA in
its PHA plan (970.17(c)) (see Notice PIH 2021-07, as may be amended or
succeeded, for more details), HUD may disapprove the conversion if HUD
determines that the PHA’s use of both RAD and disposition under sections
970.17(b) or 970.17(c) in a single project undermines the unit replacement
requirements of the RAD program.
c. Notice PIH 2021-07 provided that any PBV HAP contract created under a
RAD/Section 18 Small PHA Blend must be administered by an HCV
contract administrator with at least 250 HCV units under its HCV
Consolidated ACC prior to the creation of such PBV contract. This
Notice revises the 250-unit standard and instead provides that the
proposed HCV contract administrator must have at least 250 units under
its HCV Consolidated ACC prior to the creation of the PBV HAP contract
unless the field office determines that the proposed contract administrator
has sufficient capacity to administer the PBV contract. The field office
will consider factors such as the proposed contract administrator’s prior
25
SEMAP scores, recent HCV-related audit findings for the contract
administrator, whether the contract administrator has updated its Section 8
Administrative Plan to administer project-based vouchers, and whether the
proposed contract administrator will have sufficient voucher authority, (in
addition to any existing RAD or Non-RAD PBV HAP Contracts) to
adequately serve the tenant-based waiting list and provide mobility
options for the PBV residents.
d. This Notice revises Section 3(A)(2)(e)(1)(a) of Notice PIH 2021-07,
which defines high cost areas used for the purposes of defining the
percentage of units that may be disposed of through Section 18 pursuant to
a RAD/Section 18 Construction Blend, to state that if the hard
construction costs are equal to or exceeds ninety percent (90%) of the
Housing Construction Costs (HCC) as published by HUD for the given
market area, at the PHA’s discretion, up to sixty percent (60%) of the units
in the Converting Project may be disposed of under Section 18. For high-
cost areas, defined as those where HCC exceeds one hundred and twenty
percent (120%) of the national average HCC or where the amount of
construction necessary to convert the units from their current condition to
the condition proposed as a result of the Work would cost in excess of two
hundred percent (200%) of the national average HCC, at the PHA’s
discretion up to eighty percent (80%) of the units in the Converting Project
may be disposed of under Section 18.
2. Section 1.6.A.1 is deleted in its entirety and replaced as follows:
1. PBV Percentage Limitation. RAD PBV units in Covered Projects do not count
against the percentage limitation applicable to the PBV program. The HOTMA
Implementation Notice excludes PBV units at formerly federally assisted properties
from the percentage limitation, which means neither the RAD PBV units nor the non-
PBV RAD units count against the PBV program cap when the Covered Project is
located at the same site as the converting public housing project. Furthermore, HUD
is waiving section 8(o)(13)(B) of the Act as well as 24 CFR § 983.6 with respect to
RAD PBV units and non-RAD PBV units within a Covered Project when such units
are replacing public housing units at the time of the conversion at a new
location. However, in such a case any additional PBV units subsequently placed at
the former public housing site would not be exempt from the percentage limitation
applicable to the PBV program. In other words, the number of PBV units excluded
from the PHA’s PBV program cap cannot exceed the number of former public
housing units that those PBV units are replacing through the course of the RAD
conversion. All PBV units in a Covered Project that replace former public housing
units at the time of conversion are excluded from both the numerator and the
26
denominator when calculating the percent of vouchers that may be project-based by a
PHA.
3. Section 1.6.A.3 is deleted in its entirety and replaced as follows:
3. Owner Proposal Selection Procedures. In addition to situations already covered
under the HOTMA Implementation Notice (e.g., cases where a PHA may attach PBV
assistance to units in which the PHA has an ownership interest as part of an initiative
to improve, develop, or replace public housing), HUD is waiving 24 CFR § 983.51 so
that a RAD PBV HAP contract is never subject to competitive selection requirements.
With respect to site selection standards, HUD requires compliance with the site
selection standards as set forth in this Notice. To facilitate the uniform treatment of
residents and units at a Covered Project, any non-RAD PBV units in the same Covered
Project, shall be subject to the terms of this provision.
Further Information
Please check www.hud.gov/rad for the latest information on RAD or to join the RAD listserv.
Materials referenced in this Notice may be obtained from this RAD website. Email questions to
RAD@hud.gov. Additionally, HUD will develop informational materials to address various
program elements that HUD will post on the RAD website.
Paperwork Reduction Act
Approved
The information collection requirements contained in this document have been approved by the
Office of Management and Budget (OMB) under the Paperwork Reduction Act of 1995 (44
U.S.C. 3501-3520) and assigned OMB control number 2502-0612, 2529-0013, and 2506-0087.
In accordance with the Paperwork Reduction Act, HUD may not conduct or sponsor, and a
person is not required to respond to, a collection of information unless the collection displays a
currently valid OMB control number.
Richard J. Monocchio, Julia R. Gordon
Principal Deputy Assistant Secretary Assistant Secretary for Housing –
for Public and Indian Housing Federal Housing Commissioner
27
Source: Legislative text reproduced verbatim
Plain English
PIH Notice § 2023-19 (Supplemental Notice 4B) amends HUD's Rental Assistance Demonstration (RAD) program in several significant ways, updating rules that govern how public housing is converted to long-term Section 8 assistance. The notice revises requirements around resident engagement, energy efficiency and climate resilience standards, radon testing, the treatment of families whose tenant payment exceeds the gross rent, Faircloth-to-RAD developments, housing quality standards, and RAD/Section 18 blends. These changes reflect both new statutory authority from the FY 2022 Appropriations Act and HUD's ongoing effort to strengthen resident protections and preservation outcomes during RAD conversions.
Written by anthropic/claude-sonnet-4.6 · Reviewed on October 7, 2026
Plain English — not legal advice.
For Property Managers
Under PIH Notice § 2023-19, housing operators and Public Housing Agencies (PHAs) managing RAD conversions are generally expected to comply with enhanced resident engagement protocols—including multiple resident meetings at defined stages, accessible notice delivery, and documentation submitted with financing plans. Compliant operators also assess climate hazard risks using tools such as FEMA's National Risk Index, incorporate updated energy efficiency standards (such as the 2021 IECC or ASHRAE 90.1-2019 for new construction), and ensure all converting projects undergo radon testing consistent with MAP Guide Section 9.6.3. For properties with zero-HAP families, operators must apply the alternate rent structure established in this notice and track the 180-day threshold before removing units from the HAP Contract.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
For Tenants
PIH Notice § 2023-19 strengthens the rights of residents living in public housing projects undergoing RAD conversion, including the right to receive written notices (such as the RAD Information Notice), attend multiple resident meetings at key stages of the conversion process, and have those meetings conducted in accessible formats and languages. Residents whose total tenant payment exceeds the gross rent are protected by alternative requirements that keep their units on the HAP Contract and cap the rent they owe under a Zero-HAP Rent Cap formula. Residents with concerns about compliance with these protections may contact HUD directly at rad@hud.gov, as specified in Section 1.8.K of this notice, or reach out to a local tenant-rights organization for general guidance on available options.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated October 7, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
Effective Timeline
Current
Oct 6, 2026
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Related Rules
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§ 574.605 Applicability of uniform administrative requirements, cost principles, and audit requirements for Federal awards.
§ 574.625
§ 574.625 Conflict of interest.
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§ 574.645 Coastal barriers.