Rental Assistance Demonstration Resource Desk Frequently ...

1 Rental Assistance Demonstration Resource desk Frequently Asked Questions Category: Application Posted: 04/28/2017. Question: Currently, only Section 202 properties with a Rent Supplement contract (which are rare) can convert under RAD's Second Component provided all of the eligibility requirements have been met. Answer: The Administration's FY 2017 proposal includes Section 202/PRAC properties under the RAD Second Component however, legislation providing this authority has not been enacted. Category: Capital Needs Assessment Posted: 04/28/2017. Question: We are pursuing a RAD conversion under the second component. Our current Section 8 SRO Mod Rehab contract covers only a portion of the housing units in our building. Do we need to complete a PCA for the entire building, or just for the units included in our contract?

2 Answer: The requirement for the assessment of the physical condition of the property proposed for RAD conversion is contacted in Notice, PIH-2012-32 (HA), REV-2, Section , on page 136. The RAD conversion is intended to place the SRO units on a sound financial, physical, and managerial footing for the long-term HAP contract that will replace the Mod Rehab contract. If the ownership of the SRO units also owns the remaining units in the building, then the CNA (HUD's name for the PCA) must cover the entire building. If the ownership of the SRO units is different than the entity owning the remaining units in the building, then the CNA must only cover the SRO. units. Category: CHAPs Posted: 04/28/2017. Question: For a RAD PBV Transaction that has had a CHAP and RCC issued and is in the Closing process, what are the steps to request a utility allowance change?

3 Answer: The utility allowances shown in the RAD CHAP award reflect the utility allowances input by the PHA at the time of the original RAD application submission. The RAD. conversion must close with the Public Housing utility allowances currently in place at the site. The existing utility allowances should be reviewed and confirmed at the Financing Plan stage. If there is a change to the utility allowances since the original CHAP was issued, the Executive Director of the PHA must submit a signed certification to their Transaction Manager stating the requested utility allowances per bedroom type and certifying that those are the utility allowances currently in effect at the site. The Transaction Manager will then request an amended RAD CHAP Exhibit A which will reflect the updated utility allowances. If an RCC has already been issued, the RCC will also need to be amended to reflect the revision.

4 Please see the RAD CHAP Amendment Overview available in the RAD Resource desk Document Library for additional information on utility allowances. Posted: 03/16/2016. Page 1 of 25. Question: Prior to closing, how are my CHAP rents increased by OCAF? Answer: HUD will increase the RAD contract rents included in the CHAP each year by the published OCAF. For properties awarded under the original 60,000 unit cap with initial contract rents based on FY 2012 funding levels ( FY 12 RAD rent base year ), the first OCAF adjustment occurred in 2014 and will occur each year thereafter until closing. Thus, for a project in this category that closes with a HAP effective date of January 1, 2017, the initial contract rents are based on 2012 funding, increased by the 2014, 2015, 2016, and 2017 OCAFs. For properties awarded above HUD's original 60,000 unit cap but subject to the increased 185,000 cap with initial contract rents based on FY 2014.

5 Funding levels ( FY 14 RAD rent base year ), the first OCAF adjustment occurred in 2015 and will occur each year thereafter until closing. Thus, for a project in this category that closes with a HAP effective date of January 1, 2017, the initial contract rents will be based on 2014 funding, increased by the 2015, 2016, and 2017 OCAF. Note: Because the OCAF adjustments are generally published in October for the following calendar year, beginning in CY 2017 HUD plans to update all CHAP rents by the applicable OCAF adjustments before the start of the calendar year. Category: Choice Mobility Posted: 01/15/2016. Question: Is choice mobility only available to residents who were in place at conversion, or can new residents eventually qualify for it too? Answer: For covered projects, the Choice-Mobility option is available to all existing and future residents.

6 Note, however, that there may be limits on the number of residents in a covered project who might receive a Choice-Mobility option in any given year. See Notice PIH-2032 REV-2 for additional information on the Choice-Mobility requirement (see in particular section for PBV conversions and section for PBRA conversions). Some RAD PBRA conversions received an exemption from the Choice-Mobility requirement at the time of the initial RAD application and approval, as discussed on Section of the Notice. Category: Closing Posted: 02/17/2017. Question: If a conversion occurs early in the calendar year before HUD has made its Capital Fund grants, how can a PHA that is converting its last public housing project make sure to apply the entire Capital Fund grant to the converting project? Answer: Capital Funds are used for funding HAP payments in the initial year of closing and can also be used for development costs (in the Sources & Uses).

7 First, the PHA will want to ensure that enough of the Capital Fund grant is set aside for HAP payments. In such a case, a portion, based on the number of months remaining in the calendar year of the PHA's Capital Fund grant, can be used for Rental Assistance to support the Covered Project for the remainder of the calendar year of the conversion. Within 2 weeks of the Capital Fund grant award, the PHA should complete the updated Initial Year Funding Tool to calculate the amount of Capital Funds needed and then complete HUD form with that amount shown in BLI 1503. The executed and the Initial Year Funding Tool should be emailed to with a copy to Ivan Pour. Upon receipt, HUD will review and move the funds to BLI 1503 in LOCCS. The remaining balance of the Capital Fund grant can be contributed to the Covered Project as part of the development budget if in the Financing Plan and memorialized in the RCC.

8 Page 2 of 25. (Sources & Uses Exhibit), the PHA identifies that this source will come into the project after conversion by, for example, including in the Sources TBD- 2017 Capital Fund balance. This would authorize the use of those funds for the Covered Project when the funds become available, even though that would occur after conversion. Given that the precise amount that will be available will be unknown at the time of Financing Plan submission and at closing, in its review of the Financing Plan, HUD will make sure that the transaction does not rely on those funds in order to meet RAD's minimum underwriting standards. In other words, the transaction must be able to stand on its own without the funds. The funds could then be used to enhance replacement reserves or operating reserves. Within 2 weeks of the Capital Fund grant award, the PHA should complete the with BLI 1504 populated with the corresponding Capital Fund amount and then email the to with a copy to Ivan Pour.

9 Upon receipt, HUD will review and move the funds to BLI 1504 in LOCCS. Posted: 06/09/2016. Question: For a PBV conversion, where the property is undergoing initial repairs, the RAD Notice requires that all units meet HQS no later than the date of completion of initial repairs as indicated in the RAD Conversion Commitment, rather than prior to entering into the HAP contract. If an HQS inspection does not occur until the initial repairs are completed, what dates should be entered into the Form-50058 for the date of last inspection for residents that are residing in the units while the repairs occur? Answer: In such cases, the PHA should carry over the date that the unit was last inspected as a public housing unit. Category: Demoliton/Disposition Posted: 07/30/2018. Question: If I am using both the de minimus reduction and the 75%/25% RAD/Section 18.

10 Blend provisions on a RAD transaction, do I need to submit the FHEO Change in Unit Configuration review? All reduced units will be replaced by other PBV units and Tenant Protection Vouchers (TPV), so the number of low-income dwelling units is the same. Answer: If all of the reduced units are being replaced with project-based Assistance , an FHEO. Change in Unit Configuration review is not needed. Category: Determining Rents Posted: 05/10/2016. Question: My agency is scheduled to receive Replacement Housing Factor (RHF) or Demolition/Disposition Transition Funds (DDTF) as a result of other public housing properties that were removed from our inventory through demolition or disposition. We would like to augment our RAD contract rent instead. How do we request the rent increase and how do we determine the amount that the RAD rents can be increased?