[Federal Register Volume 77, Number 189 (Friday, September 28, 2012)]
[Notices]
[Pages 59628-59629]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-23910]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5630-N-04]


Rental Assistance Demonstration: Processing of Conversion 
Requests Submitted Under the Partial Rental Assistance Demonstration 
Notice

AGENCY: Office of the Assistant Secretary for Public and Indian Housing 
and Office of the Assistant Secretary for Housing-Federal Housing 
Commissioner, HUD.

ACTION: Notice.

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SUMMARY: On March 8, 2012, at 77 FR 14029, HUD published in the Federal 
Register a notice announcing HUD's Rental Assistance Demonstration 
(RAD) program and the publication of PIH Notice 2012-18 on the RAD Web 
site, www.hud.gov/rad. RAD provides the opportunity to test the 
conversion of public housing and other HUD-assisted properties to long-
term, project-based Section 8 rental assistance to achieve certain 
goals, including the preservation and improvement of these properties 
through access by public housing agencies (PHAs) and owners to private 
debt and equity to address immediate and long-term capital needs; the 
extent to which residents have increased housing choices after the 
conversion; and the overall impact of conversion on the subject 
properties. The March 8, 2012 PIH Notice 2012-18 announced partial 
implementation of the demonstration under the second component of RAD 
for properties assisted through the Rent Supplement (Rent Supp) and 
Rental Assistance Payment (RAP) Programs. This Federal Register notice 
published today provides additional instruction for RAD program 
participants that submitted conversion requests under the Partial 
Implementation Notice (PIH Notice 2012-18).

DATES: Effective Dates: This notice is effective September 28, 2012. 
The Rental Assistance Demonstration, Partial Implementation and Request 
for Comments notice, PIH-2012-18, was effective March 8, 2012. The 
conversion of Rent Supp and RAP assistance under Section III of the 
Partial Implementation Notice (PIH Notice 2012-18) was effective on 
March 8, 2012. HUD subsequently issued the Final Notice (PIH Notice 
2012-32) on July 26, 2012, which offered revised instructions for 
conversion of Rent Supp and RAP assistance. Owners eligible to continue 
the application process under Section III of PIH Notice 2012-18 
pursuant to this notice must meet all submission requirements of PIH 
Notice 2012-18 on or before November 13, 2012 to be eligible for 
conversion of Rent Supp and RAP assistance under PIH Notice 2012-18.

FOR FURTHER INFORMATION CONTACT: To assure a timely response, please 
email direct requests for further information to: rad@hud.gov. Written 
requests may also be directed to the following address: Office of 
Public and Indian Housing-RAD Program, Department of

[[Page 59629]]

Housing and Urban Development, 451 7th Street SW., Room 2000; 
Washington, DC 20410.

SUPPLEMENTARY INFORMATION:

I. Background

    RAD, authorized by the Consolidated and Further Continuing 
Appropriations Act, 2012, (Pub. L. 112-55, signed November 18, 2011) 
(2012 Appropriations Act) allows for the conversion of assistance under 
the public housing, Rent Supp, RAP, and Moderate Rehabilitation (Mod 
Rehab) programs (collectively, ``covered programs'') to long-term, 
renewable assistance under Section 8 of the United States Housing Act 
of 1937. As provided in the Federal Register notice that HUD published 
on March 8, 2012, at 77 FR 14029, RAD has two separate components. This 
Federal Register notice applies only to the second component of RAD.
    The second component of RAD, which is covered under Sections II and 
III of the Partial Implementation Notice (PIH Notice 2012-18), allows 
owners of projects funded under the Rent Supp, RAP and Mod Rehab 
programs with a contract expiration or termination occurring after 
October 1, 2006, and no later than September 30, 2013, to convert 
tenant protection vouchers (TPVs) to project-based vouchers (PBVs). 
There is no cap on the number of units that may be converted under this 
component of RAD and no requirement for competitive selection. While 
these conversions are not necessarily subject to current funding levels 
for each project or a unit cap similar to public housing conversions, 
the rents will be subject to rent reasonableness under the PBV program 
and are subject to the availability of overall appropriated amounts for 
TPVs.

II. Instructions for Processing of RAD Conversion Requests Submitted 
Under PIH Notice 2012-18, Rental Assistance Demonstration: Partial 
Implementation and Request for Comments

    PIH Notice 2012-18 authorized owners of Rent Supp and RAP 
properties to submit requests for conversion of assistance under the 
terms and conditions enumerated in that Notice. The Partial 
Implementation Notice (PIH Notice 21012-18) stated that ``any Rent Supp 
or RAP projects that convert their assistance prior to the issuance of 
the Final Notice will be governed by the terms of this interim 
authority. Any subsequent conversions will be subject to any future 
instructions issued by HUD in the Final Notice.''
    HUD received several written requests under the Partial 
Implementation Notice (PIH Notice 2012-18) to convert Rent Supp and RAP 
assistance under RAD prior to publication of the Final Notice (PIH 
Notice 2012-32) on July 26, 2012. These requests involved prospective 
conversions--requests to convert assistance in anticipation of a 
triggering event (a contract expiration or mortgage prepayment). 
Several conversions were still in progress at the time of publication 
of the Final Notice on July 26, 2012. Those owners that submitted 
requests to HUD Multifamily field offices to convert assistance, and 
for which conversion processing was underway following publication of 
the Partial Implementation Notice (PIH Notice 2012-18), may proceed to 
complete RAD conversions under the terms and requirements of the 
Partial Implementation Notice (PIH Notice 2012-18), provided that the 
Multifamily field office received a written request and/or supplemental 
materials from the owner or owner's representative to convert Rent Supp 
or RAP assistance to PBV assistance during the time period from March 
8, 2012 (the date of publication of the Partial Implementation Notice 
(PIH Notice 2012-18)) through July 26, 2012 (the date of publication of 
the Final Notice (PIH Notice 2012-32)). The written request and/or 
supplemental materials submitted to the Multifamily field office during 
this time period must have included the following:
    1. Information on the number of units proposed for the conversion 
and information on the triggering event (Rent Supp or RAP contract 
expiration or mortgage prepayment) anticipated prior to September 30, 
2013; and
    2. Evidence of owner actions completed, or in progress, to meet 
tenant notification and tenant comment requirements. Acceptable 
evidence includes one or more of the following: a draft tenant 
notification letter; written request to the Multifamily field office 
staff to schedule the required resident briefing; a copy of a dated 
tenant notification letter posted at the property, with a date during 
the period from March 8, 2012 through July 26, 2012; written 
confirmation that a resident briefing had been held during the period 
from March 8, 2012 through July 26, 2012; a copy of a resident sign-in 
sheet from the required RAD tenant briefing; a listing of tenant 
comments received during the RAD resident comment period; and/or a 
written description of how the owner or owner's representative 
responded to these comments; and
    3. Information on the owner or property's compliance with business 
practices, including at least one of the following: REAC score; 
Management and Occupancy Review rating; and/or information on proposed 
management agent or proposed purchaser.
    If the above conditions are met, the Department will continue to 
work with the owner to process the conversion request under the terms 
and conditions of the Partial Implementation Notice (PIH Notice 2012-
18). Such requests will be subject to a 45-day grace period. Owners 
must meet all submission requirements of PIH Notice 2012-18 within 45 
calendar days following publication of this Federal Register notice, 
which is the date provided for this purpose under the DATES heading at 
the beginning of this notice.
    Any RAD request that does not meet all submission requirements 
detailed in PIH Notice 2012-18 within this 45-day period will be 
rejected in writing. The owner shall have the option to submit a new 
RAD conversion request under the terms and requirements of the Final 
Notice, PIH Notice 2012-32.
    To the extent that any submission requirements or deadlines in PIH 
Notice 2012-18 or PIH Notice 2012-32 are not consistent with this 
notice, this notice governs.

    Dated: September 24, 2012.
Sandra B. Henriquez,
Assistant Secretary for Public and Indian Housing.
Carol J. Galante,
Acting Assistant Secretary for Housing-Federal Housing Commissioner.
[FR Doc. 2012-23910 Filed 9-27-12; 8:45 am]
BILLING CODE 4210-67-P