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

Section I: Public Housing ProjectsHowever, the rent to owner shall not be reduced below the initial rent to owner fordwelling units under the initial HAP contract. 267. Transfer of Assistance. Pursuant to the RAD statute, in order to facilitate the financing,development, and preservation of decent, safe, and affordable housing, with HUD andlender and/or investor approval, after consultation with residents, and consistency withthe Consolidated Plan, a PHA (as owner) may transfer part or all of a rental assistancecontract and a RAD Use Agreement to unassisted units owned or controlled by a publicor non-profit entity. 27 HUD may only approve a transfer if the project is economicallynon-viable, physically obsolete, severely distressed, or uninhabitable due to unforeseencircumstances such as natural disasters, or the transfer is in the best interest of theproject’s residents. A PHA may only request a transfer of assistance at conversion orafter 10 years from the effective date of the initial contract (unless a transfer is neededsooner as a result of a natural disaster). A project to which assistance is transferred issubject to all of the contract terms as described in the HAP, RAD ConversionCommitment (RCC) (see section 1.12), and Use Agreement, as well as all applicable siteand neighborhood standards (including, but not limited to, site selection requirements ofthe Fair Housing Act and Title VI of the Civil Rights Act of 1964, includingimplementing regulations at 24 CFR §§ 1.4(b)(3) and 983.57). Any transfer of assistanceat the time of initial conversion must be included in the significant amendment to thePHA’s Annual Plan.8. RAD Rehab Assistance. To ensure that the amount of subsidy for the project is retainedat the pre-conversion level once the assistance is converted to the HAP contract, coveredprojects will be eligible for assistance equal to current funding, as defined in this notice,less adjusted formula income, for units that are not occupied and will be undergoingrehabilitation or construction as identified in the approved Financing Plan and RADConversion Commitment. As necessary to implement this provision, HUD may waive theapplicability of additional provisions in section 8 of the Act or 24 CFR Part 983, or may26 The rent to owner may fall below the initial contract rent: 1) to correct errors in calculations in accordance withHUD requirements; 2) if additional housing assistance has been combined with PBV assistance after the executionof the initial HAP contract and a rent decrease is required pursuant to § 983.55 (Prohibition of excess publicassistance); or 3) if a decrease in rent to owner is required based on changes in the allocation of responsibility forutilities between the owner and the tenant.27 HUD’s fair housing and civil rights review of each request to transfer assistance will include, but not be limitedto, a review of: the site and neighborhood of the property receiving assistance; any change in the number and/orbedroom distribution of assisted units; and any change in the policies that govern eligibility, admission, selection,and occupancy of assisted units after the transfer of assistance, including any waiting list preferences that will beadopted after the transfer of assistance. If only part of the assistance will be transferred, HUD will also review thePHA’s or owner’s plan for transferring the waiting list and selecting households that will be transferred to the newsite.PIH-2012-32 (HA) Rental Assistance Demonstration – Final Implementation 31