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

Section III: Rent Supplement and Rental Assistance Payment Projects1. For prospective conversions, the most recent Real Estate Assessment Center(REAC) score at the property must be 60 or above. HUD may make exceptions, butonly if the owner demonstrates that there is a plan in place to obtain debt or equityfinancing that will address the physical needs of the project over the course of thePBV contract period.Please note: as required by statute, prior to entering into a PBV HAP Contract, thePHA will inspect the units proposed for conversion to ensure compliance withHousing Quality Standards (HQS). The HAP Contract will not be executed unlessand until the converting units meet HQS. This requirement stands even if HUD grantsan exception to the requirement that the REAC score be 60 or above. If the convertingunits do not qualify as existing housing, and therefore cannot be selected as suchunder the PBV program, the PHA and owner must enter into an Agreement to Enterinto a HAP (AHAP) and all rehabilitation must be performed pursuant to the terms ofthe AHAP, including relocation requirements. Upon completion of the rehabilitation,and when all other regulatory requirements are satisfied, the PHA and owner shallenter into the HAP contract for the eligible units.2. For retroactive conversions, units to be converted must meet HUD’s HQS asdetermined by the PHA. The PBV contract will not be executed unless and until theunits meet HQS. If rehabilitation is required to meet this standard, the PHA andowner shall execute an AHAP and all rehabilitation must be performed pursuant to itsterms.E. Fair Housing Compliance. An owner must be in compliance with all fair housing andcivil rights requirements at 24 CFR §5.105(a) and not, without resolving any of thefollowing to HUD’s satisfaction, have any of the charges, cause determinations, lawsuits,or letter of findings referenced below against a PHA, its proposed partners, subrecipients,contractors, or the prospective project owner:1. A charge from HUD concerning a systemic violation of the Fair Housing Act or acause determination from a substantially equivalent state or local fair housing agencyconcerning a systemic violation of a substantially equivalent state or local fairhousing law proscribing discrimination because of race, color, religion, sex, nationalorigin, disability or familial status;2. A Fair Housing Act lawsuit filed by the Department of Justice alleging a pattern orpractice of discrimination or denial of rights to a group of persons raising an issue ofgeneral public interest pursuant to 42 U.S.C. § 3614(a);3. A letter of findings identifying systemic noncompliance under Title VI of the CivilRights Act of 1964, section 504 of the Rehabilitation Act of 1973, or section 109 ofthe Housing and Community Development Act of 1974;PIH-2012-32 (HA) Rental Assistance Demonstration – Final Implementation 126