HUD revises guidance for converting public housing to Section 8
Published Date: 6/16/2025
Notice
Summary
The Rental Assistance Demonstration (RAD) program is updating its rules to help public housing and HUD-assisted properties switch to long-term Section 8 rental assistance. These changes, effective June 16 and June 26, 2025, include new waivers and requirements to speed up the process and improve housing options. Property owners and housing agencies should get ready to follow the new guidelines and deadlines to keep things moving smoothly.
Analyzed Economic Effects
10 provisions identified: 9 benefits, 1 costs, 0 mixed.
Tenant Protection Vouchers Can Convert to RAD
When a property partially converts under RAD and an event under Section 18 triggers tenant protection vouchers, HUD may convert that tenant protection voucher assistance to a RAD HAP Contract under either Project-Based Rental Assistance (PBRA) or Project-Based Voucher (PBV).
ROSS-SC Grants Can Continue After Conversion
HUD waives limits so Resident Opportunity and Self-Sufficiency Service Coordinator (ROSS-SC) grants can serve units or residents beyond only public housing after a RAD conversion. PHAs or new project owners may apply to renew their ROSS-SC grant subject to the ROSS-SC Notice of Funding Opportunity requirements.
Jobs Plus Enrollment Allowed After Conversion
HUD waived limits that had restricted Jobs Plus grants to only public housing residents and now permits Jobs Plus programs at target projects to enroll residents in Jobs Plus services and the Jobs Plus financial/rent incentive after RAD conversion.
More Time Before Termination for Nonpayment
HUD extends the termination notification timeline for tenant nonpayment of rent from 14 days to 30 days, adding 16 more days before termination proceedings begin.
HAP Contracts Must Be Renewed After Initial Term
Each Housing Assistance Payment (HAP) Contract entered under RAD must be renewed or extended after its initial term, which is either 15 years or 20 years depending on the contract.
Waiver Lets Rehab Happen While Subsidy Flows
HUD waives PBV regulatory housing-type definitions so HUD-required rehabilitation work that occurs after the HAP Contract is executed can proceed under the RAD Notice rules instead of PBV housing-type classifications for converted public housing units where rehab work is performed.
Mod Rehab Conversions Treated as Existing Housing
For Mod Rehab projects converting to PBV through RAD, HUD waives certain rules and will treat those projects as 'existing housing' under 24 CFR part 983 so long as they meet paragraph (i) of the existing-housing definition; other substantial improvement rules in 24 CFR 983.212 still apply unless waived.
More Time to Apply for RAD Conversions
Public Housing Agencies (PHAs) may apply to convert public housing under RAD through September 30, 2029. This extension applies to stand-alone applications and Portfolio Awards that reserve conversion authority and lock in contract rent in the year of application.
Owners Must Submit Stronger Annual Financials
Project owners (owners of converted properties) will face strengthened program requirements to submit annual financial statements to HUD or the Contract Administrator as part of RAD program rules.
Lease Rules: Deposits, Pets, Plain Language
The Notice provides guidance on security deposits, pet occupancy, and requires the use of plain language in tenant leases for new residents and residents in-place at conversion.
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