Updated RAD Rents and RAD Application Deadline

By: Tushar Gurjal, Senior Policy Manager

On February 26, HUD sent an email with some important information regarding the Rental Assistance Demonstration (RAD) program.

First, PHAs may convert their public housing to section 8 units until the statutorily mandated deadline of September 30, 2024. Projects that have a RAD Commitment to Enter into a Housing Assistance Payments contract (CHAP), but have not closed would still remain eligible to convert after September 30, 2024. While it is possible that Congress may eliminate or extend this expiration of the RAD program, HUD recommends submitting an application to ” . . . reserve RAD conversion authority and lock in the ‘2022 RAD Rents . . . .'”

Second, HUD has updated the 2022 RAD rents with adjustments from the 2024 operating cost adjustment factors (OCAFs). The Department states that “PHAs that apply for RAD are currently able to use the RAD Contract Rents that are based on [levels] . . . which were historically high.” This updating of the RAD rents has resulted in a 5.4% increase in RAD rents across the public housing portfolio. Additionally, fair market rents (FMRs) have increased nationally by 12% for fiscal year (FY) 2024. As RAD conversions employing RAD blends use combinations of RAD-project-based vouchers (RAD-PBVs) and regular project-based vouchers, both the higher RAD rents and higher FMRs will allow for conversions to occur that might not have been possible in the past.