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

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Section III: Rent Supplement and Rental Assistance Payment ProjectsFollowing HUD approval, the PHA and owner will enter into a PBV AHAP for units requiringrehabilitation in accordance with PBV program requirements or a PBV HAP contract if the unitsmeet the PBV regulatory requirements for existing housing. The contract will have a term of 15years. The owner is advised that the PBV HAP contract will only cover eligible units asdescribed in Section 3.4. If an AHAP is required, the HAP contract will only include those unitsthat are deemed suitable for occupancy upon rehabilitation under the AHAP and have notbecome vacant since the completed conversion request was submitted to HUD. If units havebecome vacant since the request was submitted, the PBV HAP contract may cover fewer units.3.8 Compliance with all Applicable Notices Regarding Contract Expiration orTerminationThe owner must adhere to all applicable Notice requirements, including, but not limited to, theNotification of Prepayment (where an FHA direct or insured loan prepayment is occurring). Aproject where contract termination is anticipated within 60 days of the date of issuance of thisNotice is ineligible for a prospective conversion of TPV assistance to PBV assistance. HUD andthe PHA must have sufficient time to assess the viability of the request, process funding, andenter into a PBV HAP or AHAP contract. For prospective conversions, if the contracttermination is anticipated within 60 days of the date of issuance of this Notice, the owner mustinstead follow the process for retroactive conversions described in this Notice, unless a shortterm extension of the Rent Supplement or RAP contract is provided.3.9 Funding AvailabilityFunding for TPVs is subject to the availability of appropriations on an annual basis. Therefore,conversions under Section 3 of this Notice may be suspended in a particular year if HUDdetermines there to be insufficient appropriations to satisfy requests under this Notice and toadequately fund other activities that require tenant protection funding (e.g., certain prepayments,opt outs, etc.) in that fiscal year.3.10 Additional InformationFor additional information on this Section of the Notice, please check www.hud.gov/rad or emailquestions to RAD@hud.gov.PIH-2012-32 (HA) Rental Assistance Demonstration – Final Implementation 142
Attachment 3A – Sample Notification Letter for Prospective ConversionAttachment 3A - Sample 30-Day Notification Letter to Residents forProspective Conversion of Rent Supplement (Rent Supp) and RentalAssistance Payment (RAP) assistance to Project Based VouchersDate ________________Dear Resident:I/We the Owner(s) of [Name of Project] are writing to inform you that the project-basedrental assistance contract in place at this property under the [Rent Supp or RAP program] isanticipated to [expire or terminate] on [date]. This [expiration or termination] may impactthe form of assistance you currently receive, as summarized below. Your comments on thesepotential changes will be welcomed and considered. Details on how to provide comments and toobtain additional information are provided at the end of this letter.Under the Department of Housing and Urban Development’s Rental AssistanceDemonstration, I/we, the owner(s) of the property, are requesting authority to enter into aProject-Based Voucher (PBV) contract at this property to provide rental assistance to all unitsoccupied by households that would otherwise receive Tenant Protection Vouchers (TPVs). ThePBV assistance would be administered through a contract between the owner and a PublicHousing Agency (PHA). The PBV contract would provide project-based assistance to theproperty. Households that choose to move one year or more after the PBV contract is put in placewould receive a Housing Choice Voucher, or other comparable tenant-based assistance, ifavailable, to use to seek housing elsewhere. Households will have the right to remain in theirunits whether or not the conversion to PBV occurs. No households will be displaced or made torelocate as part of the conversion, nor will they be subject to a rent increase as a result of theconversion.The PBV contract would provide assistance to this property for a 15-year period, withrenewal options. [Indicate if the Owner is planning to use the PBV contract to obtain financing tomake project repairs/upgrades, if residents are expected to be relocated and the expected lengthof the relocation, and specify that all relocation costs will be the responsibility of the owner.]The [expiration or termination] of the [Rent Supp or RAP] contract at this property,and our intent to provide Project-Based Voucher assistance rather than tenant-based assistance,may impact your household’s housing options. However, your household will not experience anincrease in rent due to the proposed conversion of assistance to PBV assistance, nor willresidents be displaced from the property.PIH-2012-32 (HA) Rental Assistance Demonstration – Final Implementation 143
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