RAD PIH Notice 2012-32 (.pdf, 1 MB) - National Low Income ...

Section III: Rent Supplement and Rental Assistance Payment ProjectsProspective conversions include projects where the contract expiration or terminationwill occur during FY12 or FY13 (between publication of this Notice and September 30,2013). To be eligible for a prospective conversion, the contract termination must occur nosooner than 60 days following the date of publication of this Notice. To be considered aprospective conversion, the expiration/termination date of the contract must also be atleast 60 days after the owner’s RAD request. In a prospective conversion, the project willreceive PBV assistance in lieu of the TPV assistance that would have been otherwiseprovided to project residents. Because the provision of TPVs is subject to the availabilityof appropriations, prospective conversions may be suspended in a particular fiscal yearif HUD does not have sufficient appropriations for the TPV assistance that wouldotherwise be issued.If the contract termination will occur within 60 days of the owner's request, or within 60days of publication of this Notice, the owner may either: 1) request a one-year extensionof the Rent Supp or RAP contract, to provide time to complete a prospective RADconversion request prior to contract termination; or 2) allow the contract to expire andTPVs to be issued to eligible project residents, at which time the owner may pursue aretroactive conversion, as discussed below.Retroactive conversions are conversions of TPVs that have already been issued toproject residents as a result of a Rent Supp or RAP contract expiration or the terminationof a Rent Supp or RAP contract due to prepayment of a mortgage. The contractexpiration or termination and issuance of TPVs must have occurred on or after October 1,2006. Only the units occupied by eligible low-income residents that received TPVassistance and consent to the conversion may be assisted under the PBV HAP contract.As described above, HUD will not process prospective conversions in projects where thecontract termination will occur in fewer than 60 days following the submission of theowner's conversion request. If the contract termination will be fewer than 60 days fromthe owner’s RAD submission, or if TPV funding has been requested by the Office ofPublic and Indian Housing on behalf of eligible project residents and processed, TPVswill be issued to the eligible residents, and the conversion request will be processed as aretroactive conversion to PBVs.Further, as required under the RAD statute (Public Law 112-55), the PHA currentlyadministering the TPVs must approve a request for a retroactive conversion as it is theagency charged with the active administration of the TPVs with tenants of record—incontrast to a prospective conversion of assistance where it is not yet charged with theactive administration of TPVs.The table below summarizes key characteristics of prospective and retroactiveconversions.PIH-2012-32 (HA) Rental Assistance Demonstration – Final Implementation 121