On August 21, 2023, HUD’s Office of Multifamily Housing Programs sent out the following information:

Today, HUD published a Notice in the Federal Register effectuating the changes in the RAD Supplemental Notice (H-2023-08/PIH-2023-19). As a reminder, certain sections of the Notice are effective immediately while others have a grace period. Please see the summary below:

Supplemental Notice Section Effective Date
RAD for PRAC Rent Setting Immediately – 08/21/2023
Faircloth-To-RAD Immediately – 08/21/2023
RAD/Section 18 Blends Immediately – 08/21/2023
Housing Quality Standards 10 days after Federal Register Publication – 08/31/2023
Zero-HAP Residents 10 days after Federal Register Publication – 08/31/2023 See 90-day implementation requirement for families paying above Zero-HAP Rent Cap
Radon Policies Applies to Financing Plans or Conversion Plans submitted 14 days after Federal Register Publication – 09/04/2023
Energy Efficiency and Climate Resiliency Applies to Financing Plans submitted 30 days following Federal Register Publication – 09/20/2023
Resident Engagement 30 days following Federal Register Publication – 09/20/2023. If a transaction has progressed beyond the point that changes apply, transaction will be held to the previous provisions of the RAD Notice.


RAD Supplemental Notice Webinar – Recording Posted

A recording of the live webinar “Overview RAD Supplemental Notice” held on August 9, 2023 and accompanying slides and webinar Q&A have been posted on www.hud.gov/rad and www.radresource.net.

Spotlight on 202 PRAC Preservation Rent Increase

Depending on the level of rehab or construction, and whether the work performed as part of the RAD Conversion Plan will enhance climate resilience, energy and water efficiency, or appropriate design for elderly residents to age-in-place, owners of converting 202 PRACs may be eligible for up to either $250 per unit per month or $100 per unit per month, to be effective upon conversion.


Beginning tomorrow, converting 202 PRAC project owners can formally submit a request an increase to contract rents by completing the Preservation Rent Increase request in the project conversion application on the RAD Resource Desk.

For PRAC owners who are contemplating a RAD conversion, HUD has created a “RAD for PRAC: Preservation Rent Increase Eligibility Tool” to determine whether the project will meet the 60% or 30% of Housing Construction Cost (HCC) threshold based on anticipated rehab or construction costs. In addition, “RAD for PRAC: Preservation Rent Increase FAQs” have also been posted. To access these tools, navigate to the RAD Multifamily Document Library on the RAD Resource Desk at the following URL. The documents can be found under the heading Determining Rents. https://www.radresource.net/mf_library.cfm

Owners interested in receiving a rent increase comfort letter from HUD can make an initial request for the rent increase up to six months prior to submission of the full Conversion Plan. HUD will make a preliminary eligibility determination and provide the per unit rent increase amount for which the Owner will make the final request when the complete Conversion Plan is submitted. Owners can make the initial request by completing the “Preservation Rent Increase” section of the conversion application on the RAD Resource Desk.