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

Section I: Public Housing ProjectsUnits that qualify for the de minimis exemptions will not be eligible for tenant protectionvouchers (excepting those units already approved for demolition or disposition).C. Ineligibility for Asset Repositioning Fee (ARF) or Replacement Housing Factor (RHF)Fee. PHAs may not apply for ARF and will be ineligible to receive Capital Fund RHFgrants for converted units/projects as is otherwise described in 24 CFR § 990.190(h) and 24CFR § 905.10(i), respectively. RAD does not affect ARF or RHF fees for projects and PHAspreviously receiving those fees.D. Effect of Conversion on PHA’s Faircloth Limit. Section 9(g)(3) of the Act limits theconstruction of new public housing units, referred to as the ―Faircloth Limit.‖ Under theFaircloth Limit, a PHA may not use funds allocated under the Capital or Operating Funds forthe purpose of constructing any new public housing units if the construction of those unitswould result in a net increase in the number of units the PHA owned, assisted, or operated asof October 1, 1999.Conversions under the Demonstration will reduce a PHA’s Faircloth Limit. For example, aPHA with a pre-RAD Faircloth Limit of 1,000 public housing units would have its FairclothLimit reduced to 900 units if it converted a 100-unit project. (Units not converted under thede minimis provision would continue to count under the PHA’s Faircloth cap.)E. Conversion is a Significant Amendment to Annual/Five Year Plan. Conversion ofassistance under the Demonstration will be considered a significant amendment to the PHA’sFive-Year Plan for qualified and non-qualified PHAs, and the Annual Plan for non-qualifiedPHAs. As such, both qualified and non-qualified PHAs are subject to the Consolidated Planrequirements and the public notice and Resident Advisory Board consultation requirementsoutlined in 24 CFR Part 903. If the conversion will require changes to the PHA’s Admissionsand Continued Occupancy Policy (ACOP) and/or Section 8 Administrative Plan, thesechanges must also be submitted with the significant amendment. A PHA must submit thisamendment to HUD within 60 days following the delivery of the CHAP. In addition to theinformation already required by 24 CFR Part 903 for PHA Plan amendments, all PHAs mustinclude the following information in their significant amendment:1. A description of the units to be converted, including the number of units, the bedroomdistribution of units, and the type of units (e.g., family, elderly/disabled, or elderlyonly);2. Any change in the number of units that is proposed as part of the conversion,including de minimis unit reductions and unit reductions that are exempt from the deminimis cap;PIH-2012-32 (HA) Rental Assistance Demonstration – Final Implementation 25