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Notice Listings on The PBV Program
Notice Section 1.2 General Program Description Notice Section 1.6 Special Provisions Affecting Conversions to PBVs Notice Section 1.6.A PBV Project Selection Notice Section 1.6.B.1 Length of Contract Notice Section 1.6.B.2 Mandatory Contract Renewal Notice Section 1.6.B.3 Ownership or Control Notice Section 1.6.B.4 RAD Use Agreement Notice Section 1.6.B.5 Initial Contract Rent Setting Notice Section 1.6.B.6 Method of Adjusting Contract Rents Notice Section 1.6.B.7 Transfer of Assistance Notice Section 1.6.B.8 Agreement waiver and RAD Rehab Assistance Payemnts Notice Section 1.6.B.9 HQS Inspections Notice Section 1.6.B.10 Floating Units
Questions on The PBV Program

Combining Scattered Sites into a Single CHAP & HAP Contract

My current public housing project consists of scattered sites on multiple parcels and I am considering a conversion to PBV under RAD. Under what conditions will I be allowed to combine these units under one CHAP (and one HAP)?

In the PBV program, multiple single-family buildings may be on the same HAP Contract (i.e. scattered-site single family buildings). However, if the scattered sites are not single-family buildings, each project must have its own HAP contract. A project can be defined as a single building, multiple contiguous buildings, or multiple buildings on contiguous parcels of land. HUD interprets project to apply to all these structures (i.e., single building, multiple contiguous buildings, etc.), and a PHA must consider the entire definition and apply this definition to proposed PBV units. For purposes of RAD application, the PHA will need to submit an application for each AMP (or each portion of an AMP). If the scattered-sites are eligible to be under one HAP, as described above, and are already under one AMP, one CHAP will be issued. If the scattered-sites are eligible to be under one HAP as described above, but are not currently under one AMP, separate applications should still be submitted using the “Many-to-One” application instructions found here: http://portal.hud.gov/huddoc/manyto1_appinstr.docx.

Identifying PBV Units in the HAP Contract

Are PBV units separately identified under the HAP Contract (e.g., unit 101 and 102) and, if so, can they be changed?

Yes, all PBV units are separately identified in the HAP Contract. After the signing of the HAP, the PHA may substitute units, but only in accordance with 24 CFR §983.206.

Post-Conversion 50058 Submission for PBV

We are preparing to occupy our RAD site, however we do not know the process for 50058 submission. Is there a RAD program code for the 50058? Further should we submit a code "10" when the voucher is issued and a code "1" 50058 when the resident moves in? Also, will be 50058 be submitted as a public housing or housing choice voucher, both have different and distinct reporting information? Without a RAD program code HUD will not be able to actively track the success of the RAD program through the 50058 submission process.

The 50058 should be filled out as it normally is for the Project-Based Voucher program, including completing Section 11 of the Form. In addition, the PHA should enter in line 2N “RADPH.” Action Code 10, Issuance of a Voucher, does not apply under the PBV program

Transferring of Site-Based PBV Waitlist Following Conversion

When a site-based waiting list is transferred following conversion, am I required to serve all of the existing applicants on the waiting list in their current order before serving any new applicants and without respect to adopted preferences?

No. Once the waiting list is transferred, applications and preferences continue to operate in accordance with applicable regulations and locally adopted policies. As a result, new applicants following conversion may get housed ahead of applicants who were on the public housing site based waiting list at the time of conversion if they qualify for a higher preference even though they are entering the waiting list at a later date. There is no requirement to house all of the people who were on the PH site-based waiting list at the time of conversion before housing anyone else.

Ability to Switch from a 3 year to 5 year Phase In (PBV)

Once in RAD PBV and a three year phase in was chosen for our policy, are we able to add to our policy the option to use a five year phase in, due to larger rent increases, to benefit tenants that transitioned into RAD PBV?

You are permitted to establish a 3 year, 5 year, or combination of the two as your phase in policy. However, the policy must be in place at conversion and cannot be modified after conversion. Please see Section 3.10.2 of the RAD PBV Quick Reference Guide.

Does a PHA receive the admin fee for choosing PBV as part of a RAD conversion?

Does a PHA receive the admin fee for administering PBV as part of a RAD conversion? In other words, the money paid to PBRA is limited to RAD contract rents. Is the money paid to a PHA for PBV include the RAD Contract rents PLUS an admin fee?

Yes, the PHA that administers the PBV contract will receive monthly administrative fees under the Voucher program, beginning in the first full calendar year following conversion. This amount is not funded through the RAD contract rents but is funded from the larger Tenant Based Rental Assistance (TBRA) account.

Utilizing Op and Cap Funds to Pay for PBV Admin Fee in First Year of Conversion

This is for a public housing conversion to PBVs. During the conversion year under PBV, the voucher-administering agency earns no admin fee (Notice, REV-2, page 60). However, can the converting agency choose to reimburse the voucher-administering agency for its admin costs?

Yes, the PHA may do so long as (1) the amount paid is not more than the allowable HUD schedule of admin fees and (2) the PHA identifies these amounts in the Development Budget (Sources and Uses). This action is allowable even if the converting agency is also the voucher-administering agency.

Designating Elderly Units in RAD PBV Conversion

In a RAD conversion to PBVs, can a PHA “designate” a building as elderly

No. Prior to the enactment of HOTMA, the PBV program had an income mixing component, wherein not more than 25% of the units in the project could be assisted, with exceptions for units made available for certain types of households, including elderly households. Under those requirements, a PHA could designate specific units for elderly occupancy. Since HOTMA has eliminated this income-mixing requirement, PHAs can no longer designate units in such a manner. A PHA may, however, adopt a project-specific waiting list and an admission preference for elderly households.

Treatment of Over-income Tenants Following RAD PBV Conversion

How are over-income tenants treated following conversion to a RAD PBV HAP contract?

Any existing tenants at the time of RAD conversion may remain in the project, and the unit may remain under HAP, even if the tenant's Total Tenant Payment (TTP) exceeds the RAD Gross Rent. In these instances, the tenant will pay the TTP amount and the unit will become a "zero HAP" unit. Until the tenant's TTP falls below the gross rent, the rent to the owner for the unit will equal the lesser of (a) the family's TTP, less the utility allowances, or (b) any applicable maximum rent under LIHTC regulations. For the RAD PBV units, this protection applies only to tenants living at the Converting Project prior to conversion. New admissions with zero-HAP are not permitted. New admissions are subject to the regular PBV program rules (per 983.211), meaning the unit must be removed from the HAP contract when no HAP assistance has been paid for 180 days.

Date of Last HQS Inspection on Form 50058 when there are Initial Repairs

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?

In such cases, the PHA should carry over the date that the unit was last inspected as a public housing unit.

PBV HAP Contract Administration

How can a PHA own a property covered under a PBV contract that it will administer?

Under the PBV program, the Contract Administrator and the Owner listed on the contract cannot be the same legal entity (i.e., the PHA cannot execute a contract with itself). To avoid this situation, the PHA may either: 1) Transfer the ownership of the project to a non-profit affiliate or instrumentality of the PHA (including to a “single-purpose entity” that owns nothing other than the property, which will typically be a requirement of a lender or investor) or 2) The PHA can form a related entity that is responsible for management and leasing and can serve as the owner for purposes of the Section 8 HAP contract; in this scenario, the HAP is then executed between the PHA (as the Contract Administrator) and the PHA’s related entity (as the Owner for HAP contract purposes). Note that in the second scenario, both the PHA and the entity serving as the Owner for HAP contract purposes will be required to sign the RAD Use Agreement. Additionally, where the PHA owns a property covered under the PBV contract, the PHA must utilize an independent entity, approved by HUD, to perform the HQS inspections and rent reasonableness (24 CFR 983.59). The independent entity that performs these tasks can be the unit of general local government for the PHA jurisdiction (unless the PHA it itself the unit of general local government or an agency of such government), or any other HUD-approved public or private independent entity.

Processing of Recertifications by Management Company Following PBV Conversion

We are a Property Management company that was previously processing the annual recertifications for the Public Housing units. The units have now converted to PBV under RAD. Do we continue to do the annual/interim recertifications until Jan. 1 of the following year, and do we issue the utility reimbursement checks? Or, does the Housing Authority take over the recertifications/interims and issue the utility reimbursement checks as the of RAD closing date?

It is up to the PHA how they wish to handle processing of recertifications and utility allowances for its voucher program. HUD does not prevent PHAs from contracting with a management company to perform these tasks.

PBV Rent Phase in When Tenant Moves to Different Unit

If a tenant is in the RAD PBV phase-in period and transfers to a different size unit in the same PBV project, does the phase-in still apply or will rent be based on TTP at that point?

If the rent increase is occurring because of new income, the rent phase-in does not apply. If the tenant's monthly rent increases because the tenant moved to a new unit as a result of the RAD conversion, then the phase-in does apply.