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

Section I: Public Housing ProjectsF. Exemptions from the Choice-Mobility Component in the CompetitionAll applicants will be required to meet the Choice-Mobility, except that HUD will grant goodcauseexemptions for eligible PBRA projects (see Section 1.7(C)(5) of this Notice) up to 10percent of awards under the Demonstration. Applicants must indicate in the RAD Applicationwhether they are applying for the good-cause exemption. HUD will issue these exemptions to thehighest ranked applications in the following order of priorities: 1) small public housing-onlyPHAs; 2) all other public housing-only PHAs; and 3) combined agencies that currently havemore than one-third of their vouchers set aside for veterans and/or homeless. The number ofgood-cause exemptions awarded in each region will be based on the proportion of units in eachregion owned by PHAs without a voucher program. For a project that is selected for a goodcauseexemption, all of the assisted units will count against these allowances.If after the Initial Application Period all of the good-cause exemptions have not been allotted upto the 10 percent limit, HUD may allow good-cause exemptions during the Ongoing ApplicationPeriod on a first-come, first-serve basis.A PHA that meets all requirements of the Notice and requests a good-cause exemption, but is notselected during the Initial Application Period, will be placed on the waiting list and consideredfor selection only in the Ongoing Application Period. While a PHA’s rank on the waiting list willbe determined by the ranking factors, a PHA will be passed over if all of the good-causeexemptions as indicated above have been exhausted. A PHA may be selected if a CHAP isterminated for a project that originally received a good-cause exemption. At any point during theOngoing Application Period, a PHA may revise its application only to certify that it will meet theChoice-Mobility component. If an application is modified in this way, it would retain its place onthe waiting list.1.12 CHAP MilestonesAll PHAs will be notified of selection via issuance of an award letter, signed by HUD. Attachedto the award letter will be a CHAP, or Commitment to Enter into a Housing Assistance Payment,which shall indicate the HUD-approved terms and conditions for conversion of assistance. TheCHAP will not be subject to negotiation by the PHA or any third party. If selected for an award,the PHA will comply with all provisions of the CHAP, or will indicate to HUD within 15 daysthat it is refusing the terms of the CHAP and withdrawing from RAD participation.HUD’s provision of a CHAP includes contractual terms on which HUD will later issue the HAP.For this reason, the CHAP should be useful in the PHA’s discussions with lenders, investors andother providers of financing.The CHAP will include provisions that it may be revoked: (1) upon HUD’s determination offinancial infeasibility; (2) for PHA failure to meet required deadlines; (3) for PHA non-PIH-2012-32 (HA) Rental Assistance Demonstration – Final Implementation 58