For both PBV and PBRA conversions:

• Initial Submission & Tenant Notification: An owner must make an initial submission to HUD indicating the owner’s interest in conversion. HUD has developed a sample Excel template owners can use to make this initial submission that must be submitted electronically to rad2@hud.gov including both an Excel and signed PDF copy. The owner must notify all tenant household and legitimate tenant organizations per the guidance in PIH Notice 12-32 REV-2. Sample tenant notification letters can be found on this website under reference guide and other resources.

• Financing Plan: The Owner must submit to HUD through the RAD Resource Desk a complete Financing Plan that satisfies all HUD underwriting standards and program requirements. HUD will have 60 calendar days from the date of submission of the Financing Plan to approve or reject the plan, or request additional information. The owner must submit a copy of all comments received with their Financing Plan, along with a description of how the residents’ comments will be addressed in the conversion.

• RAD Approval: An owner will be notified of HUD’s acceptance of the Financing Plan via issuance of an approval letter, conditioned upon a firm commitment of financing from the lender on substantially the same terms as those presented with the Financing Plan. The approval letter will allow 90 calendar days (from the date the approval letter is issued to the owner) in which to close the RAD conversion transaction.

• Closing: Conversion does not occur until the financing is closed.

For PBV Conversions:

• PHA Selection: HUD will identify a PHA able and willing to administer the PBV contract, and the PHA will need to accept the responsibility. HUD will generally select the PHA that currently administers the Mod Rehab contract.

• Funding Request & Annual Contributions Contract (ACC) Amendment: Following resident consultation and submission and approval of a Financing Plan, at the Closing of the conversion of assistance, the Mod Rehab contract will be terminated. The PHA that has agreed to administer the PBV HAP contract will have the vouchers added to its ACC.

• PBV HAP & Rider Execution: Prior to the execution of the HAP contract, the units proposed for conversion must meet Housing Quality Standards (HQS) and all income certifications must have been made. After these reviews, the PHA and owner will enter into a PBV HAP contract for projects that qualify as existing housing under the PBV program.

For PBRA Conversions:

• Funding Request: After approval of the RAD conversion is issued the TM will request funding for the units being converted to the PBRA contract. The current funding for the Mod Rehab contract is converted to PBRA funding.
• PBRA HAP and Rider Execution: HUD and owner will enter into a PBRA HAP contract for projects that qualify as existing housing under the PBV program.

Both the Rent Supp and RAP legacy programs have been completed under RAD 2nd Component. For more information on these programs visit our RAD for Mod Rehab, Rent Supp and RAP web page.