Advancing CHAPs to Financing Plans

Upon submission of a well-prepared Application(s) -


HUD will award an initial Commitment to Enter into a HAP contract or CHAP for each successfully submitted project or portfolio application. The CHAP is an initial award allowing a PHA and its partners to undertake the following actions over a subsequent 180-day period leading to review and approval of a Financing Plan.  HUD will also assign a Readiness Transaction Manager or RTM to help CHAP awardees understand and meet all the requirements of the Financing Plan, which is the next crucial step in the RAD approval process. Most of the guides and references indicated below can be found in HUD's RAD Library under RAD Tools.

  • Initial Steps
  • Threshold Issues: Threshold issues and actions will variously need to be addressed for progressing to final approval, which are described in considerable detail in the RAD Welcome Guide.
    • FHEO Site & Neighborhood Standards requirements and approvals for RAD new construction or transfer of assistance projects. Detailed guidance  on these requirements and standards was released at the end of 2016 and can be found here. 
    • Change in Unit Type
    • Transfer of Assistance
  • RAD Physical Conditions Assessment--now CNA E-Tool: Requires engaging a qualified third party to undertake the RAD physical conditions assessment, which has recently been revamped as HUD's Capital Needs Assessment or CNA e-tool. RAD Financing Plans submitted on/after February 1, 2018, must include the new CNA e-Tool. Click on HUD's  CNA e-tool information page for details on using and submitting the e-Tool, including training webinars and tutorials and Q&A. To start, reviewing  the recording of HUD's December 7, 2017 is highly recommended, and can be accessed here.
  • Additional Steps: While waiting for the CNA e-Tool assessment to be finalized (typically 4-6 weeks, including inspections and report), several additional application steps should be completed, working with the RTM and local Field Office as needed
  • Finalize & Upload Financing Plan: When the CNA e-Tool report is completed, finalize the major type of financing that will be used for each Project(s) or Portfolio by reviewing  any/all of the RAD Financing Guides, which include live links to needed worksheets and materials. Pay close attention to RAD underwriting principles
  • HUD-Approved FHA Lenders: If interested in FHA financing, here is the most recent list of HUD-Approved  MAP Lenders
  • Upload Financing Plan Documents: Instructions for completing and uploading the 22 documents that constitute the Financing Plan are available by clicking on the Financing Plan Guide at the top left of the page for the Financing Plan Milestone in the project section of the RAD Resource Desk
  • Financing Plan Review: Once uploaded and certified as submitted, a Financing Transaction Manager (FTM) will be assigned to review the submitted Financing Plan. The FTM, who may be the same as the RTM, will review the Financing Plan, clarify any issues and present the transaction to HUD's internal RAD Committee for underwriting approval.