Under the First Component of RAD, PHAs may choose between two forms of Section 8 Housing Assistance Payment (HAP) Contracts: project-based vouchers (PBVs) or project-based rental assistance (PBRA). No incremental funds are authorized for this component. As such, initial contract rents are established based on public housing funding levels, and are subject to applicable program rent caps. Applications may be submitted for a specific project (using the RAD Application), a PHA-defined portfolio of projects, or a multi-phase project. If a PHA applies for either a portfolio or multi-phase award, HUD will reserve RAD conversion authority for the projects or phases covered by the award, and the PHA will be required to submit a RAD Application for each individual project or phase. Following review and selection of a RAD Application, HUD will provide the PHA with a Commitment to enter into a Housing Assistance Payment (CHAP), after which the PHA will have to present a Financing Plan for HUD to approve. After HUD approval of the Financing Plan and successful closing of the conversion, a project will receive a long-term Section 8 HAP Contract. Upon conversion, units whose assistance has been converted pursuant to RAD will be removed from the public housing program. Converting Projects will be released from the public housing Declaration of Trust (DOT) and the Declaration of Restrictive Covenants (DORCs), if applicable, and a RAD Use Agreement will be placed on the Covered Project.
Under the Demonstration, HUD has the authority to waive statutory and regulatory provisions governing the PBV program, or to establish alternative requirements for the effective conversion of assistance. Additionally, the RAD Statute imposes certain unique requirements and authorizes HUD to establish requirements for converted assistance under the Demonstration.
Listed below are the “special” requirements applicable to public housing projects converting assistance to long-term PBV assistance under the First Component of the Demonstration, with reference to the affected statute and/or regulation, where applicable. Special requirements are grouped into four categories: Project Selection, Contract Terms, Resident Rights and Participation, and Other Miscellaneous Provisions. All other regulatory and statutory requirements of the PBV program in 24 CFR part 983 and section 8(o)(13) of the Act apply, including environmental review, lead-based paint requirements, Davis-Bacon, and fair housing requirements.
MTW agencies will be able to apply activities impacting the PBV program that are approved in its MTW Plan to these properties as long as they do not conflict with RAD requirements. RAD requirements include RAD statutory requirements, provisions of the PBV program specifically addressed in this Notice (including provisions explicitly listed in Section 1.6 of this Notice as provisions of the PBV program that MTW agencies may not alter under RAD), other conditions and requirements of this Notice, or RAD contract forms or riders. With respect to any existing PBV regulations that are waived or modified in this Section 1.6 pursuant to RAD authority, except where explicitly noted below, MTW agencies may modify these or other requirements of the PBV program if the activity is approved in its MTW Plan. All other RAD Requirements listed below or elsewhere in this Notice shall apply to MTW agencies.
- PBV Project Selection.
- PBV Percentage Limitation. Covered Projects do not count against the percentage limitation applicable to the PBV program. To implement this provision, HUD is waiving section 8(o)(13)(B) of the Act as well as 24 CFR § 983.6 with respect to Covered Projects. As a result, a PHA that is administering RAD PBV assistance does not take the RAD PBV into consideration when calculating the percent limitation for any non-RAD PBV actions that are subject to the percent limitation. In other words, RAD PBV is excluded from both the numerator and the denominator when calculating the percent that may be project-based for non-RAD PBV.
- Cap on the Number of PBV Units in Each Project. There is no cap on the number of units that may receive PBV assistance in each project. To implement these provisions, HUD is waiving section 8(o)(13)(D) of the Act, as well as related provisions of 24 CFR §§ 983.56, 983.257(b), 983.262(a) and (d).
- Owner Proposal Selection Procedures. HUD is waiving 24 CFR § 983.51. With respect to site selection standards, HUD requires compliance with the site selection standards as set forth in this Notice.
- Site selection – Compliance with PBV Goals, section 8(o)(13)©(ii) of the Act and 24 CFR § 983.57(b)(1) and ©(2). HUD waives these provisions having to do with deconcentration of poverty and expanding housing and economic opportunity, for the existing site.
- Length of Contract. Covered Projects shall have an initial HAP Contract term of at least 15 years (up to 20 years upon request of the Project Owner and with approval by the administering Voucher Agency). To implement this provision, HUD is specifying alternative requirements for section 8(o)(13)(F) of the Act (which establishes a maximum term of 15 years) as well as 24 CFR § 983.205(a) (which governs contract term). Project Owners are required to make available for occupancy by eligible tenants the number of assisted units under the terms of the contract and may not reduce the number of assisted units without HUD approval. Any HUD approval of a PHA’s request post-conversion to reduce the number of assisted units under the contract is subject to conditions that HUD may impose and is reviewed by HUD in the regular course of administration of the PBV program. MTW agencies may not alter this requirement.
- Mandatory Contract Renewal. In accordance with the RAD Statute, upon expiration of the initial contract and each renewal contract, the administering Voucher Agency must offer, and the Project Owner must accept, renewal of the contract subject to the terms and conditions applicable at the time of renewal and the availability of appropriations each year for such renewal. Consequently, section 8(o)(13)(G) of the Act, as well as 24 CFR § 983.205(b), governing the PHA discretion to renew the contract, will not apply to the extent that these provisions make renewal or extension decisions purely discretionary. However, Contract Administrators and Project Owners may choose to extend the initial HAP Contract term consistent with these provisions. The ability to extend the HAP Contract term consistent with these provisions does not negate, in any way, the mandatory renewal provision detailed in the first sentence of this paragraph. MTW agencies may not alter this requirement.
- Ownership or Control. This section has been moved to Section 1.4.A.11
- RAD Use Agreement. Pursuant to the RAD Statute, a Covered Project shall have an initial RAD Use Agreement that will:
- Be recorded in a superior position to all liens on the property. The Use Agreement shall be recorded prior to the Security Instrument or any other mortgage or security instrument relating to an FHA-insured loan or a Risk- share loan;
- Run until the conclusion of the initial term of the HAP Contract, automatically renew upon extension or renewal of the HAP Contract for a term that coincides with the renewal term of the HAP Contract, and remain in effect even in the case of abatement or termination of the HAP Contract (for the term the HAP Contract would have run, absent the abatement or termination), unless the Secretary approves termination of the RAD Use Agreement in the case of a transfer of assistance;
- Provide that in the event that the HAP Contract is removed due to breach, non-compliance or insufficiency of Appropriations, for all units previously covered under the HAP Contract new tenants must have incomes at or below eighty percent (80%) of the area median income (AMI) at the time of admission and rents may not exceed thirty percent (30%) of eighty percent (80%) of AMI for an appropriate-size unit for the remainder of the term of the RAD Use Agreement; and
- Require compliance with all applicable fair housing and civil rights requirements, including the obligation to affirmatively further fair housing
- Initial Contract Rent Setting. HUD has calculated initial contract rents for every public housing project based on each project’s subsidy under the public housing program. (See Attachment 1C for a full description of the methodology.) All RAD applications, including applications for Portfolio or Multi-Phase awards, will have initial contract rents based on their “RAD rent base year:”
- All properties awarded under the original 60,000 unit cap have initial contract rents based on FY 2012 funding levels (“FY 12 RAD rent base year”). These rents will be adjusted each year by HUD’s published OCAF starting in CY 14 and established in the HAP Contracts at the time of conversion. Thus, for a project in this category that closes in 2015, the initial contract rents will be based on 2012 funding, with an OCAF adjustment for both 2014 and 2015.
- All properties awarded above HUD’s original 60,000 unit cap but subject to the increased 185,000 cap in effect as of the date of this Notice will have initial contract rents based on FY 2014 funding levels (“FY 14 RAD rent base year”). These rents will be adjusted each year by HUD’s published OCAF starting in CY 15 and established in the HAP Contracts at the time of conversion. Thus, for a project in this category that closes in 2015, the initial contract rents will be based on 2014 funding, with an OCAF adjustment for 2015.
- Subsequent to authority to convert additional units, properties will have initial contract rents based on a future RAD rent base year in HUD’s sole discretion.
PHAs have additional discretion in establishing initial contract rents using the following flexibilities:
- MTW Fungibility. MTW agencies may use their MTW block grant funds to set their initial contract rents, subject to applicable program caps. The agency must use existing voucher funding to supplement rents; no additional voucher funding will be provided. Any use of MTW block grant funds in setting initial contract rents shall be subject to subsidy layering review and MTW continued service requirements, as calculated using the MTW Baseline Methodology described in PIH Notice 2013-02, or successor notice.
- Rent Bundling. PHAs may adjust subsidy (and initial contract rents) across multiple projects as long as the PHA does not exceed the aggregate subsidy for all of the projects the PHA has submitted for conversion under RAD. This use, which HUD refers to as “bundled” rents, is permissible when a PHA submits applications for two or more projects. There is no limit to the number of projects that a PHA may bundle. The conversion of the donor property must close prior to or simultaneous with the conversion of the recipient property.
Further, PHAs are permitted to rent bundle from any non-RAD Project-Based Vouchers to the Project-Based Voucher assistance provided through RAD. The PHA must use its own voucher funding to supplement rents; no additional voucher funding will be provided through RAD. HUD will review the rents proposed for the non-RAD PBV contract to ensure that the PHA does not exceed the aggregate subsidy otherwise available for all of the rent-bundled projects. The execution of the HAP contract for the donor HAP contract must occur prior to or simultaneous with the conversion of the recipient HAP contract and the donor HAP contract must have a remaining contract term at least as long as the recipient HAP contract. The owner of the property with the non-RAD PBV contract must request an initial rent (or redetermined rent if the contract has already been executed) in accordance with 24 CFR §§ 983.301(b)(3) and 983.302 that reflects the amount approved by HUD. To ensure that aggregate HAP costs do not exceed the costs incurred absent this provision, the owner of the property with the non-RAD PBV contract must agree not to request, in accordance with 24 CFR § 983.301(b)(3), a redetermined rent that exceeds the OCAF-adjusted rent. This OCAF limitation is in addition to the existing PBV rent limitations in 24 CFR § 983.301(b) more generally.
Please note that per Section 1.13.B.5, regardless of the initial contract rents for the RAD HAP contract, including as modified by this provision, in the year of conversion the Covered Project will only be assisted by the Operating and Capital Funds obligated to the PHA for that project.
For example, assume that a PHA is considering bundling two identical projects, both consisting of 100 units. In Project A, the contract rent is $500; and in Project B, the contract rent is $600. The PHA could bundle the two projects such that the initial contract rents for both projects will be $550.
See Section 1.9 for instructions on submitting applications with bundled rents.
- Future Replacement Housing Factor (RHF) or Demolition Disposition Transition Funding (DDTF).28 PHAs that are scheduled to receive ongoing RHF or DDTF funding (funds that have not been awarded and, with HUD permission, funds that have been awarded but not yet disbursed) may choose to forgo any ongoing RHF or DDTF grants for the purpose of offsetting an increase to the RAD rent. See Attachment 1C for the calculation of how RHF or DDTF funding may offset increased RAD rent.
- PBV Site-Specific Utility Allowances. Except for Converting Projects that will include non-RAD PBV units, PHAs may elect to establish a site-specific Utility Allowance for any Covered Project. HUD is waiving 24 CFR 983.2©(6)(iii), which requires the PHA to apply the HCV Utility Allowance schedule for PBV properties, and HUD is establishing an alternative requirement. The Utility Allowance shall be calculated consistent with Housing Notice 2015-04 unless PIH promulgates guidance specific to the PBV program. The Project Owner may carry out all of the responsibilities associated with Housing Notice 2015-04, but the PHA must ensure that the Utility Allowance is calculated correctly.
For Converting Projects that include non-RAD PBV units, a PHA may request a waiver from HUD in order to establish a site-specific utility allowance schedule for both the RAD and non-RAD PBV units. To be approved, a PHA must demonstrate good cause that the utility allowance schedule used in its voucher program would either create an undue cost on families because the utility allowance provided under the voucher program is too low, or discourage conservation and efficient use of HAP funds because the utility allowance provided under the voucher program would be excessive if applied to the Covered Project. For HUD to consider such a waiver, the PHA must submit an analysis of utility rates for the community and consumption data of project residents in comparison to community consumption rates; and a proposed alternative methodology for calculating utility allowances on an ongoing basis.
- Tenant-Paid Utility Savings. When conversion will result in the reduction of one or more utility components (e.g., gas, water & sewer, electric) used to establish the Utility Allowance, HUD will permit the RAD contract rent to be increased by a portion of the utility savings. See Attachment 1C for additional detail.
Not withstanding HUD’s calculation or the above-mentioned flexibilities, initial PBV contract rents are subject to the statutory and regulatory PBV requirements governing contract rents (see 24 CFR § 983.301), (except where alternative rent caps have been approved in a MTW Plan). To this effect, initial contract rents cannot exceed the lower of: (a) the reasonable rent (as defined under 24 CFR § 983.303); (b) an amount determined by the PHA, not to exceed 110 percent of the applicable FMR (or applicable exception payment standard, or rent cap approved in an MTW Plan), minus any utility allowance; or © the rent requested by the owner.
- Method of Adjusting Contract Rents. Contract rents will be adjusted only by HUD’s OCAF at each anniversary of the HAP Contract, subject to the availability of appropriations for each year of the contract term.29 As such, section 8(o)(13)(I) of the Act and 24 CFR §§ 983.301 and 983.302, concerning rent determinations, shall not apply when adjusting rents. The rent to owner may at no time exceed the reasonable rent charged for comparable unassisted units in the private market, as determined by the Contract Administrator in accordance with 24 CFR § 983.303.30 However, the rent to owner shall not be reduced below the initial rent to owner for dwelling units under the initial HAP Contract.31 MTW agencies may not alter this requirement.
- Transfer of Assistance. This section has been moved to Section 1.4.A.12.
- Agreement Waiver and RAD Rehab Assistance Payments. For public housing conversions to PBV there will be no Agreement to Enter into a Housing Assistance Payments (AHAP) contract. Therefore, all regulatory references to the AHAP, including regulations under 24 CFR part 983 subpart D are waived. Instead, the PHA and Project Owner typically will enter into a HAP Contract before construction begins. Until the work is complete, standard HAP Contract funding procedures will be used for occupied units. Units that are not occupied at any point during the period of work identified in the approved Financing Plan and RAD Conversion Commitment may be eligible, subject to the conditions below, for Rehab Assistance Payments equal to the Public Housing Operating Fund and the Capital Fund amounts that formed the basis for the calculation of initial contract rents (see Attachment 1C). During the period of rehabilitation or construction as identified in the RCC and the HAP Contract, the maximum number of units for which a Project Owner can receive RAD Rehab Assistance Payments is limited to the number of units eligible for Operating Fund or Capital Fund subsidy prior to conversion. As a result, some units in the Covered Project may not be eligible for Rehab Assistance Payments.
Following the earlier of the end of the construction period identified in the HUD- approved Financing Plan or actual construction, the PHA will no longer be eligible to receive RAD Rehab Assistance Payments, and all units under contract will be eligible for payment only for occupied units or for vacancy payments, as applicable. MTW agencies may not alter this requirement.
- HQS Inspections. Under current regulations at 24 CFR § 983.103(b) a unit covered under a HAP Contract must be inspected and must meet HQS before assistance can be paid on behalf of a household. In addition, section 8(o)(8)(A) of the Act provides that HAP Contract units must be inspected to ensure compliance with HQS prior to payment of any assistance on behalf of a family. When Work is occuring under RAD, HUD requires that all units meet HQS no later than the date of completion of the Work as indicated in the RCC. Consequently, HUD is waiving and establishing an alternative requirement to 24 CFR § 983.103(b) and section 8(o)(8)(A) of the Act in such cases.
- Floating Units. For mixed-income Converting Projects where PHAs are currently exercising their discretion to allow subsidized units to float within a project redeveloped with funding under a Choice Neighborhoods Implementation or HOPE VI grant, or as part of a Mixed-Finance project, upon the request of the Voucher Agency that will administer the Covered Project, HUD will permit PBV assistance to float among units within the project having the same bedroom size. A unit to which assistance is floated must be comparable in condition to the unit it is replacing (i.e., the unit must be of the same quality and amenities as the unit it is replacing). Assistance may float from a Section 504 accessible unit only to another Section 504 accessible unit that has the same bedroom size and accessibility features. Units that float are not specifically designated under the HAP Contract. Therefore, the requirements in 24 CFR § 983.203© that the HAP Contract provide “the location of each contract unit” and “the area of each contract unit” are waived. Instead, the HAP Contract must specify the number and type of units in the property that are designated as RAD units, including any excepted units. From the time of the initial execution of the PBV RAD HAP Contract, the property must maintain the same number and type of RAD units, including the same number and type of Section 504 accessible units. Floating units are subject to all of the requirements in this Notice and the PBV regulations, including physical inspections, rent adjustments, and income-mixing requirements. The alternative requirements with respect to floating units do not apply to non-RAD PBV units.
Combining Scattered Sites into a Single CHAP & HAP ContractMy 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 ContractAre 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 PBVWe 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 ConversionWhen 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 ConversionThis 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 ConversionIn 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 ConversionHow 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 RepairsFor 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 AdministrationHow 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 ConversionWe 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 UnitIf 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.