On June 4, 2026, HUD’s Office of Recapitalization sent out their RADBlast! Newsletter that included the following information relevant to CARH members:

Wind-Down of the Restore-Rebuild Initiative

The U.S. Department of Housing and Urban Development (HUD) has announced the wind-down of the Restore-Rebuild Initiative, as described in a memorandum issued on May 12, 2026. This change has been made to focus public housing efforts on repositioning existing units to the Section 8 platform, including through the Rental Assistance Demonstration (RAD), and to focus resources on the existing public housing portfolio. The memo outlines critical deadlines for projects that may be in the Restore-Rebuild pipeline. The wind-down of the Restore-Rebuild Initiative does not affect or reduce a Public Housing Authority’s (PHA) ability to convert existing public housing units through RAD.

Changes to Tenant Protection Voucher (TPV) Eligibility Impacting RAD/Section 18 Blend and Mod Rehab Conversions

Historically, HUD’s policy provided for replacement TPVs for vacant units that were occupied by an assisted family in the previous 24 months. As described in the May 6, 2026, PIH Notice 2026-12, to manage future costs and anticipated increases in TPV requests, for events triggering TPVs that occur after May 6, 2026, HUD has changed this window to cover units that were occupied by an assisted family in the previous 12 months. However, for RAD/Section 18 Blends and Mod Rehab conversions to Project Based Vouchers, any Financing Plan or Conversion Plan relying on the use of TPVs that was submitted prior to May 6, 2026, will be subject to the policy awarding TPVs for units occupied in the previous 24 months, even if the “triggering event” has not yet been reached. Any Financing Plan or Conversion Plan relying on the use of TPVs that is submitted on or after May 6 will be subject to the policy awarding TPVs for units occupied in the previous 12 months from the triggering event. Please consult with your assigned RAD transaction manager if you have questions regarding your submission.

Initial Year Funding Tool

HUD has updated the Initial Year Funding Tool on the RAD Resource Desk. PHAs and their partners with public housing conversions in 2026 can use this tool to calculate the amount of public housing subsidy that will be available to a Covered Project for rental assistance during the Year of Conversion. For RAD/Section 18 Blends, PHAs can use the tool to calculate the amount of Housing Assistance Payment (HAP) subsidy that will be available.

As described in the Funding Instructions for Public Housing Projects Converting Under RAD, in the year of conversion, the Covered Project will be funded in the following manner:

  • For conversions that are exclusively RAD (i.e., are not a RAD/Section 18 Blend), the initial funding for the RAD HAP contract is derived solely from the converting public housing assistance.
  • For RAD/Section 18 Blends, the funding will be a blend of the converting public housing assistance and converting TPV assistance.

RAD Resource Desk Multifactor Authentication Update

HUD will soon implement Multifactor Authentication (MFA) on the RAD Resource Desk to support increased security on the platform. Please be aware that users will be required to authenticate their accounts through e-mail or text after logging in. HUD anticipates a late June implementation of multifactor authentication. An email with additional information will be sent to all active RAD Resource Desk users in advance of the implementation.