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RAD for Mod Rehab, Rent Supp and RAP

What is RAD 2nd Component?

The Rental Assistance Demonstration (RAD) allows proven financing tools to be applied to at-risk public and assisted housing and has two components.  RAD 2nd Component was created in order to give owners of HUD’s legacy programs: Rent Supplement, Rental Assistance Payment (RAP), Section 8 Moderate Rehabilitation, and Moderate Rehab Single Room Occupancy (SRO) funded by McKinney-Vento, the opportunity to enter into long-term contracts that facilitate the financing of improvements. 

Owners may choose between two forms of long-term Section 8 Housing Assistance Payment (HAP) contracts: project-based vouchers (PBVs) or project-based rental assistance (PBRA). 

For owners where contract expiration or termination has not yet occurred, an owner may enter into a 15-year PBV HAP with an eligible Public Housing Authority (PHA) or a 20-year PBRA HAP that will be administered by HUD’s Office of Housing.

For owners with contracts that have already expired or have been terminated and the issuance of Tenant Protection Vouchers (TPVs) has occurred on or after October 1, 2006, an owner may only enter into a 15-year PBV HAP with an eligible Public Housing Authority (PHA).

RAD's original authorizing statute established December 31, 2014 as the expiration date for HUD's RAD 2ndComponent conversion authority. The FY15 appropriations actenacted by Congress on December 11, 2014, made important improvements to the Rental Assistance Demonstration, including:

  • Eliminated the sunset date for Rent Supplement, Rental Assistance Payment and Mod Rehab conversions under RAD 2.  
  • Authorized HUD to develop a PBRA conversion option for RAD 2nd Component properties.
  • Extended  RAD 2nd Component conversion eligibility to Section 8 Mod Rehab Single Room Occupancy (SRO) properties, making them eligible for RAD.