RAD for Section 202 Project Rental Assistance Contracts (PRACs)

 

HUD published a revision to the RAD Notice (H-2019-09/PIH 2019-23 HA) on September 5, 2019 that implements theenacted authority of the 2018 Consolidated Appropriations Act, which authorized the conversion of affordable housing for the elderly supported by eligible Section 202 Project Rental Assistance Contracts (PRACs) to Section 8 project-based rental assistance (PBRA) or project-based voucher (PBV) contracts under the Second Component of RAD to preserve housing that serves the nation’s most vulnerable elderly residents. The option to convert to long-term Section 8 assistance under RAD provides an opportunity for the aging stock of Section 202 PRAC properties to be recapitalized while protecting residents, maintaining non-profit control, and extending the period that the properties must remain affordable. Section IV of the RAD Notice provides program instructions and requirements for owners of Section 202 PRAC projects.

Highlights

How Owners May Apply

Non-profit owners may make an initial submission of interest to undertake a conversion through the RAD Resource Desk. HUD will use the initial submission of interest in order to assign a Transaction Manager, who will make contact to discuss the conversion process and the Project Owner’s goals for the Project.

 


PRACtical RAD Training Video Series

 

The PRACtical RAD series provides practical guidance to owners of Section 202 PRAC properties seeking to convert their rental assistance to the Section 8 platform through HUD’s Rental Assistance Demonstration program, known as RAD. Note: Viewers may find it helpful to watch these videos in the order in which they were published. 

PRACtical RAD Overview Picture

PRACtical RAD Overview
(12/2019 |YouTube Format)

 

PRACtical RAD Conversion Milestones Video Picture


Conversion Milestones
(July 2021 | YouTube Video)
Transcript

PRACtical RAD CNA Video


Capital Needs Assessment
(November 2021 | YouTube Video)
Transcript

PRACtical RAD Financial Strategies Video


Financial Strategies
(June 2022 | YouTube Video)
Transcript

PRACtical RAD Supportive Services Video


Supportive Services
(January 2023 | Mp4 Format)
Transcript

PRACtical RAD Supportive Services Video


Closing 101
(March 2024 | YouTube Video)
Transcript

Additional information, tools and guidance on RAD for 202 PRAC is available on the RAD Resource Desk

 

RAD for PRAC Forms

The list below is the Rental Assistance Demonstration (RAD) multifamily housing forms for the Paperwork Reduction Act (PRA) Collection 2502-0612. The forms are approved by the Office of Management and Budget (OMB) and expires on July 31, 2025.  

  • HUD 5894 - RAD Elderly Use Agreement (Updated 8/5/2022)
  • HUD 5895 - RAD Section 202 PRAC Conversion Agreement (Updated 8/5/2022)
  • HUD 5896 - Part I PBRA Housing Assistance Payments Contract (Updated 8/18/2023)
  • HUD 5897 - Part II PBRA Housing Assistance Payments Contract (Updated 8/18/2023)
  • HUD 5898 - Part I PBV Housing Assistance Payments Contract (Updated 8/5/2022)
  • HUD 5899 - Part II PBV Housing Assistance Payments Contract (Updated 8/5/2022)
  • HUD 5904 - RAD PRAC Counsel Opinion Template (Updated 8/5/2022)