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HUD News: Updated RAD Contract Rents Now Available

HUD has just posted the 2022 RAD Contract Rents, which are used to determine the initial contract rents in the Section 8 Housing Assistance Payment (HAP) contract for public housing properties converting under RAD. HUD will utilize these amounts for any new Commitments to enter into HAP (CHAPs) or Portfolio awards starting January 1, 2023. In addition, current awardees that have not yet closed may request to update rents in their existing CHAPs or Portfolio Award by notifying their assigned Transaction Manager or Closing Coordinator and submitting a CHAP amendment request via: www.radresource.net. When requesting updated rents, if the PHA had previously utilized any of the flexibilities to modify the RAD rents in their existing CHAP, the PHA should include that information in their request. Note that the RAD rent caps remain in effect and will be evaluated as part of HUD’s review.

As background, RAD Rents are re-established every two years based on Congressional appropriations to the public housing accounts. These rents, which are based on the Operating and Capital Fund levels provided in FY 22, are at the highest level in program history: on average, nationally, these new RAD rents are 7 percent higher ($60 per unit per month) than the RAD rents previously in use. We strongly recommend that PHAs review these 2022 RAD rents to evaluate whether these new levels support PHAs’ efforts to position public housing properties for long-term preservation.

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