Rent Supp, RAP & Mod Rehab Conversion Basics - RAD's 2nd Component (RAD2)
RAD2 has proven a successful resource in preserving and recapitalizing certain Multifamily legacy programs, including Rent Supplement, Rental Assistance Payment (RAP), Section 8 Moderate Rehabilitation, and Moderate Rehab Single Room Occupancy (SRO) funded by McKinney-Vento. Important provisions to keep in mind about RAD2-eligible properties
- They can convert to either a 15-year PBV HAP contract administered by local PHAs or a 20-year PBRA contract administered by HUD’s Office of Housing.
- A 5-year “retroactive” option is available for converting properties that may have been forced to issue Tenant Protection Vouchers (TPVs) to residents of properties with earlier contract terminations to a 15-year PBV HAP with an eligible PHA.
- Plus, McKinney SRO Mod Rehab properties are now eligible for conversion with certain flexibilities for upgrading properties to market standards.
Detailed instructions on converting RAD2 properties can be found in the most recent Revised RAD Notice section for 2nd component conversions. For a range of useful materials and resources for converting RAD2 properties--including a list of closed RAD2 transactions, Mod Rehab fact sheets, a PBV v. PBRA comparison chart and more--go here.
Also, review a HUD-conducted webinar on converting Mod Rehab properties with a with detailed Mod Rehab-specific materials.
Consult the charts below to find Mod Rehab and Rent Supp-RAP properties