HUD’s Office of Recapitalization recently released a memo to all CHAP awardees setting forth closing deadlines for CY 2017 RAD transactions. Awardees should be especially mindful of these intermediate deadlines to ensure that their RAD projects can be promptly processed.
|Deadline to close by June 30, 2017||Deadline to close by Nov. 30, 2017||Deadline to close by Dec. 31, 2017|
|Upload all required Financing Plan documents||Completed||June 15||July 15|
|Receive a RAD Conversion Commitment (RCC)||Completed||August 15||September 15|
|Submit complete closing package||April 15||September 1||October 1|
|All RAD documents approved and ready for HUD signatures||June 22||November 16||December 14|
Other key takeaways from the memo include the following:
- Projects that wish to have RAD rents funded with Section 8 subsidy beginning in January 1, 2018 must close by November 30, 2017.
- In addition to the priority categories listed in Section 1.11 of the RAD Notice, HUD will prioritize projects adhering to the deadlines and those with demonstrable critical deadlines beyond the control of the housing authority and its development team.
- HUD may require an update to the Financing Plan and re-issuance of the RAD Conversion Commitment (RCC) if the RCC has aged over 6 months.