The U.S. Department of Housing and Urban Development (HUD) has issued an essential update to the Rental Assistance Demonstration (RAD) program through Notice H 2025-01/PIH 2025-03 (HA). This Supplemental Notice introduces significant changes to improve RAD’s implementation and ensure greater benefits for public housing agencies (PHAs), project owners, and residents. These updates include revised deadlines, program expansions, and enhanced resident protections.

What Is the RAD Program?

The RAD program was designed to address the capital repair needs of public housing by enabling PHAs to convert units to long-term, project-based Section 8 contracts. This approach facilitates private investment while preserving affordable housing stock and maintaining residents’ rights. Over the years, RAD has evolved through multiple legislative amendments and notices to address emerging needs in housing.

Key Revisions in the 2025 Supplemental Notice

1. Extended Application Deadlines

HUD has extended the deadline for PHAs to submit RAD conversion applications to September 30, 2029. This extension allows agencies more time to plan and implement RAD conversions while securing the program’s benefits.

2. Blended RAD and Section 18 Conversions

The new guidance streamlines processes for projects using a combination of RAD and Section 18 activities, referred to as RAD/Section 18 Blends. These conversions allow flexibility in preserving public housing by combining RAD assistance with tenant protection voucher (TPV) assistance.

3. Resident Protections and Services

Residents now benefit from strengthened protections, including:

• Extended Non-Payment Notices: The notice period for eviction due to non-payment has increased from 14 to 30 days.
• Support Services Continuity: After RAD conversions, programs such as Jobs Plus, ROSS, and Family Self-Sufficiency (FSS) will remain available to residents.

4. Lease Adjustments

Guidance on leases includes:

• Mandating plain language in leases.
• Prohibiting new security deposits for existing tenants.
• Encouraging policies for pet-friendly housing while accommodating service animals.

5. Financial Oversight Enhancements

Project owners will need to submit annual financial statements to HUD or Contract Administrators. This ensures greater transparency and long-term financial viability of converted properties.

6. Renewal of HAP Contracts

HAP contracts will now require renewal after their initial 15- or 20-year term, ensuring continued affordability for properties under RAD.

7. Environmental Reviews and Feasibility

All RAD projects must comply with stringent environmental review standards under 24 CFR Part 50 to meet sustainability and safety benchmarks.

Effective Date and Comment Period

The changes outlined in the 2025 RAD updates are effective immediately, unless otherwise noted. HUD has initiated a 30-day public comment period, during which stakeholders may submit feedback on the provisions. If comments result in reconsidering any updates, HUD will issue a revised notice upon the conclusion of the comment period.

Comments can be submitted to RAD@hud.gov.

Additionally, any waivers or alternative requirements to statutory provisions will take effect 10 days after their publication in the Federal Register, ensuring timely implementation of necessary adjustments.