Tools & Info Archive

Davis-Bacon No Longer Required for RAD2 PBRA Conversions

HUD announced on December 11, 2018 that it has eliminated the requirement to use Davis-Bacon wages in transactions involving project-based rental assistance (PBRA) in RAD 2nd component transactions (Rent Supp/RAP and Mod Rehab conversions only). See the brief notice here HUD Notice H-2018-11/PIH 2018-22 .

Previously, HUD required both PBV and PBRA RAD2 transactions to adhere to the March 9, 2015 Federal Register Notice requiring Davis-Bacon wages for all projects that constitute “development” within 18 months, prior or after, HAP contract execution.  That  notice defined “development” as “work that…alters the nature or type of housing units in a PBV project, reconstruction, or a substantial improvement in the quality or kind of original equipment and materials,” but not “replacement of equipment and materials rendered unsatisfactory because of normal wear and tear by items of substantially the same kind.” 

2019 OCAF Increases Published

On 11/23/18 HUD published the 2019 OCAF increases by state for eligible Section 8 Multifamily developments including RAD conversions to both PBRA and PBV platforms in 2018 and prior years. Find your state’s 2019 OCAF increase here.

Final "Duty to Serve" Rule Released. The Federal Housing Finance Agency (FHFA), which oversees Fannie Ma.e and Freddie Mac, released its final rule that implements Fannie Mae's and Freddie Mac's duty to serve three specific under-served markets: manufactured housing, rule housing, and preservation of affordable housing. Under the rule, the GSE's are awarded points in a system to encourage them to undertake activities in these markets. The duty to serve the preservation of affordable housing markets specifically cites RAD as an eligible activity - as urged by the Collaborative - which may encourage Fannie and Freddie to devise financing products tailored to RAD. (Prior to publication of the rule, Freddie Mac provided financing in large RAD transactions in El Paso and San Francisco). The RAD Collaborative will continue to engage with FHFA as the new rule is rolled out. The entirety of the rule can be found here

Notice on Disposition of Non-Dwelling Public Housing Real Property. HUD issued on November 29, 2016, Notice PIH 2016-20 (HA), which details how a PHA seeking to retain certain public housing real property - including non-housing buildings and excess land - that was not or is no longer used for public housing dwelling purposes can do so - either by paying fair market value to HUD for the property or seeking and allowed exception to this requirements. The Notice, which is effective upon publication, is particularly applicable to RAD conversations wherein non-dwelling real property not deemed essential to the conversion of the housing units must be separately disposed of outside of the RAD conversion process in order to the PHA to use it for non-public housing purposes. The Collaborative will monitory implementation of the Notice and share practice implications as needed.

HUD Publishes Fair Housing, Civil Rights, and Relocation Notice. The long anticipated Notice was published on November 10, which outlines site and neighborhood standards, civil rights, and relocation requirements for public housing conversions under RAD. The Notice H 2016-17/PIH-2016-17 can be found here. HUD is developing a new, consolidated draft checklist that streamlines both the content and timeless of submission and their review and approval process. The checklist will be made available for public comment shortly. See the RAD Collaborative, CLPHA, and Reno & Cavanaugh's final comments on the published notice here.  

RAD Surpasses $4 Billion in Construction! HUD's Recap Office recently released an impressive summary of RAD-related benefits now that it's initial 60,000 units of authority has been closed, including capital that has been generated, leverage ratio,  types and geography of projects underway, jobs created and more.  Access the handy RAD $4B flyer here. 

RAD Cap Increased in FY 2017! With a sustained push by the RAD Collaborative and critical advocacy of colleagues in the FY 2017 appropriations deliberations, the RAD cap for public housing was increased from 185,000 units to 225,000 units and the sunset date moved back to 2020 in the final budget bill expected to be signed shortly by President Trump. Other important features for RAD and public housing include:

  • Public Housing Operating Funds: $4.4 billion (-$100 million in FY 2016)

  • Public Housing Capital Funds: $1.492 billion (+$42 million in FY 2016)

  • Tenant Protection Vouchers: $110 million (-$20 million in FY 2016)

  • Choice Neighborhoods Initiative: $137.5 million, with $50 million earmarked for PHAs (+ $12.5 million in FY 2016)

For a more detailed analysis of the bill's implications for public housing please see the CLPHA Update-May 1 .

Recap Office Updates. On March 15, 2017, the Recap Office provided additional information on submitting the new Letter of Interest to join the RAD waiting list, as well as helpful information about CHAP amendments, rent flexibilities, and Schedule Requirements for Closing RAD Transactions in 2017. Click here for highlights. More details can be found on the RAD Resource Desk

RAD Ownership & Control Guidance. In February, HUD issued this helpful guidance on meeting the (slightly) revised ownership and control requirements for RAD public housing conversions of assistance.  The new guidance can be found here.

HUD Releases RAD Revisions. HUD issued on January 12 a 3rd revision to the RAD Notice (PIH 2012-32 / H 2017-03 Rev 3—or RAD Rev3) to simplify certain 1st Component program requirements, create new flexibilities to make more conversions feasible, and strengthen tenant rights. Under the 2nd Component, the revisions improve the rent-setting options available to owners. A summary of key changes can be found by clicking here. 

HUD has published both a blackline version showing the changes made in Revision 3 as compared to Revision 2 along with a clean Revision 3 of the RAD NoticeThe Notice went into effect upon its publication in the Federal Register on 1.19.17.  Changes related to selection and eligibility criteria will be subject to public comment and will be effective 30 days after publication in the Federal Register unless modified by HUD as a result of public comment. To see the Collaborative's submitted comments and recommendations on RAD Revision 3, RC Comments on RAD Rev3.

VISTAs Begin at PBRA Sites. In the March 7, 2017 "RADBlast," HUD described the roles of the new VISTA members working on tenant engagement activities under the RAD Community Economic Development Project (aka RAD Community Engagement Initiative) at selected RAD sites undergoing PBRA conversions. Click here for more information.

RAD Data Now Available to the Public on the RAD Resource Desk. HUD has recently created an open portal on the RAD Resource Desk for the public to access live information on public housing conversions. Users can access basic information by PHA or by transaction status (e.g., applications submitted, under CHAP, Financing Plan submitted, Closed. etc.) Users can customize their own reports that will export into an Excel file. To access this data, visit radresourcedesk.net and click on "Data and Resources". 

HUD Releases New RAD Evaluation Interim Report. As  recently reported by the Wall Street Journal and Affordable Housing Finance on September 21, 2016, HUD has released a new interim research report underscoring RAD's continued "proof of concept." Conducted by Econometrica, Inc., the report examines how RAD performed through October 2015 and provides evidence that the program is on track to accomplish its primary goals of attracting substantial new capital to stabilize the physical and financial conditions of public housing properties, significantly improving housing conditions for low-income residents. Updated RAD activities by state and PHA and recent case studies were also released and are available here. While confirming previously released HUD data, RAD has continued to show an equally impressive trajectory of results since the October 2015 end-point of interim evaluation as indicated in the recent articles and reports below.