HUD’s recently released RAD Supplemental Notice 4C (H–2025–01/PIH–2025–03 (HA)) introduces critical updates to the Rental Assistance Demonstration (RAD) program. This notice strengthens tenant protections, expands public housing authority options, and clarifies rules following legislative and regulatory changes.
Key Updates to RAD Program Rules
RAD Application Extended to 2029
Thanks to the Consolidated Appropriations Act of 2024, PHAs now have until September 30, 2029, to apply for RAD conversions. This is significant for agencies pursuing Portfolio Awards or planning multi-phase redevelopment efforts. This extension provides long-term planning flexibility for agencies committed to preserving affordable housing stock.
➡️ Learn more about HUD’s RAD basics
RAD and Section 18 Blends Now Permitted
HUD now allows PHAs to blend RAD conversions with Section 18 demolitions or dispositions. If a property partially converts through RAD and qualifies for Tenant Protection Vouchers (TPVs) under Section 18, the TPVs may now convert to long-term RAD assistance (PBV or PBRA). This policy streamlines financing and development coordination for public housing agencies.
Stronger Resident Protections
30-Day Notice for Nonpayment of Rent
In a major win for residents, the notice increases the minimum notice period for nonpayment of rent from 14 to 30 days. This aligns RAD with HUD’s broader efforts to reduce evictions and promote housing stability, especially post-COVID.
Continued Access to Support Services
Residents in converted properties will now maintain access to:
- ROSS-SC grants, even after RAD conversion
- Jobs Plus programs, including rent incentives and employment services
- FSS (Family Self-Sufficiency) programs without waivers
- Congregate Housing Services Program for elderly and disabled households
These services support financial independence and holistic resident success.
Clarity for Property Owners and Developers
Revised Lease Guidance
The notice updates lease guidance for RAD-converted units, including:
- Clear rules on security deposits
- Allowances for pet ownership
- Requirements for plain language leases
These changes standardize resident experiences while improving transparency.
Annual Financial Reporting
Project owners must now submit annual financial statements directly to HUD or their Contract Administrator. This strengthens accountability and ensures RAD properties remain financially sound.
➡️ Explore HUD’s guide to RAD financing
Technical Changes That Matter
Financing Plan & Feasibility Benchmarks
The updated guidance sharpens the criteria for converting public housing. New financing benchmarks aim to ensure long-term sustainability, especially for larger or more complex redevelopments.
HOTMA Conforming Changes
The Housing Opportunity Through Modernization Act (HOTMA) PBV rule triggered updates in how RAD defines project types. RAD will now:
- Use alternative definitions for “existing,” “rehabilitated,” and “newly constructed” housing to better fit RAD’s structure.
- Allow rehabilitation work to occur after HAP execution without violating PBV timelines.
These waivers provide flexibility without sacrificing compliance or quality.
Waivers and Alternative Requirements
HUD used this notice to waive previously restrictive rules:
- ROSS–SC and Jobs Plus grants can now serve residents after RAD conversion.
- Alternative housing definitions apply to converted properties, easing administrative hurdles.
➡️ Visit HUD’s RAD resource page
Why This Matters for Affordable Housing Leaders
This RAD update is more than a technical adjustment. It’s a clear signal that HUD is listening to feedback from PHAs, developers, and resident advocates. By extending deadlines, aligning lease practices with resident rights, and preserving access to supportive services, the RAD program continues evolving into a stronger tool for affordable housing transformation.
For those focused on community development, tenant engagement, and sustainable financing, RAD Supplemental Notice 4C provides clarity and new pathways for progress.
Have questions or want to see how these updates might impact your agency’s RAD pipeline? Email HUD directly at rad@hud.gov.
