Although the RAD Revision 4 Notice is not expected until February 2019, as promised earlier this year, yesterday HUD published the new RAD Rents going forward. Based on determination of final FY 2018 public housing funding levels—which are a combination of operating, capital and tenant rent contribution formulas—the new RAD rents are available for any new awards starting January 1, 2019, as well as for already-issued CHAPs if PHAs opt for the updated rent levels and seek a simple amendment to their CHAPs.
The new RAD rent levels along with a companion FAQ for additional information on how to seek the new rents for existing CHAPs can be found here (scroll down to “News & Helpful Info”).
All PHAs with existing CHAPs and those considering RAD ahead should carefully assess the new rent levels. An initial review suggests that on an across-the-board average nationally the new RAD rents are approximately $50/month/per unit higher (ie, this does not assure this bump for all developments) than the currently-available Modified FY 2016 rents. The extent of this increase will make many prospective projects previously thought infeasible now suddenly doable!
Both of these measures now make RAD for public housing more accessible and easier to apply for than previously. Although HUD currently has a fair amount of room under the 455,000 public housing cap to make awards, most PHAs considering RAD have been waiting to see the new rent levels. It’s very likely the remaining RAD cap authority will now go fast in 2019.
Thanks again to all who labored to raise the RAD cap, secure more reasonable Operating and Capital Fund levels and extend its authority to RAD for PRACs in the FY 2018 Omnibus Appropriations bill. That effort will now afford better housing for close to 2 million low-income people!