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RAD for Mod Rehab, Rent Supp and RAP


What is RAD 2nd Component?

Legacy Programs Successful
through RAD

RAD completed the Rent Supp and RAP Legacy programs, preserving a combined total of more than 27,000 affordable homes saving residents from displacement. Read more about the programs here: Rent Supp and RAP.

 President Lyndon Johnson signing legislation that created the Rent Supp program in 1965

Picture: President Lyndon Johnson signing legislation that created the Rent Supp program in 1965

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). RAD's original authorizing statute established December 31, 2014 as the expiration date for HUD's RAD 2ndComponent conversion authority. However, the FY15 appropriations act enacted 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.

Today, the Second Component further allows owners of projects funded pursuant to Project Rental Assistance Contracts under the Section 202 Supportive Housing for the Elderly program (202 PRAC) to convert to PBV or PBRA contracts. For more information on RAD statutes and the current Notice revision, visit RAD's Statutes, Notices, Regulations & Tools. Contact us at RAD2@hud.gov if you have additional questions.