HUD Posts Closing Timeline for Preservation Transactions

The Department of Housing and Urban Development (HUD) Office of Recapitalization released the timelines for year-end closing of transactions through the Rental Assistance Demonstration (RAD). RAD is a preservation tool that allows HUD-assisted properties to convert to a different form of HUD subsidy in order to attract more private capital and rehabilitate the property.

While initially designed for Public Housing, eligibility for RAD was extended in 2018 following LeadingAge advocacy to include Section 202 PRAC properties serving older adults with low incomes.

If closing by a specific date is critical to a RAD transaction, for example because of deadlines related to other funding sources, HUD recommends that housing providers plan according to the dates presented in the table below.

Housing providers should contact their Closing Coordinator or Transaction Manager with questions.